Document:

Document

Exhibit 10.1
EXECUTION VERSION 

AWARD NOTICE 
AND 
RESTRICTED STOCK UNIT AGREEMENT
(2021 Annual LTIP Award Agreement)

INVITATION HOMES INC.
2017 OMNIBUS INCENTIVE PLAN

The Participant has been granted Restricted Stock Units (“RSUs”) with the terms set forth in this Award Notice, and subject to the terms and conditions of the Plan and the Restricted Stock Unit Agreement entered into by and between the Participant and the Company to which this Award Notice is attached. Capitalized terms used and not defined in this Award Notice shall have the meanings set forth in the Restricted Stock Unit Agreement and the Plan, as applicable. 

Participant:                         [•]
Date of Grant:                        March 1, 2021
Vesting Start Date:                     March 1, 2021
Time Vesting RSUs Granted:                                     [•]
Performance Vesting (Target) RSUs Granted: [•]    , consisting of:

[•] Tranche I Performance Vesting (Target) RSUs 
[•] Tranche II Performance Vesting (Target) RSUs 

1.Time Vesting RSUs. The Time Vesting RSUs shall vest in equal installments on each of the first three anniversaries of the Vesting Start Date, subject to the Participant’s continued employment through the applicable vesting date; provided, that if the number of RSUs specified above is not evenly divisible by three, then no fractional units shall vest and the installments shall be as equal as possible with the smaller installments vesting first.

2.Performance Vesting RSUs. The Performance Vesting RSUs will become earned (“Earned RSUs”) based on the achievement of the Performance Conditions set forth below with respect to the Performance Period specified below.

(a)Performance Conditions. The number of Performance Vesting RSUs in each tranche that become Earned RSUs shall be based on the achievement of the Performance Conditions set forth below applicable to such tranche, with the number of Performance Vesting RSUs earned in respect of such tranche equal to (x) the target number of Performance Vesting RSUs in such tranche multiplied by (y) the applicable Percentage of Award Earned for such tranche (calculated in accordance with 2(b)), rounded down to the nearest whole share.  Notwithstanding the foregoing, if INVH TSR (i.e., total shareholder return) for the Performance Period is negative, the Tranche I Performance Vesting RSUs shall not vest at a level greater than target.  

2

																		
	Tranche	Performance Condition	Performance Period	Threshold Level of Achievement	Target Level of Achievement	Maximum Level of Achievement
	Tranche I	INVH TSR Relative to RMS Index CAGR	January 1, 2021 - December 31, 2023	[•]	[•]	[•]
	Tranche II	Same Store NOI Growth CAGR	January 1, 2021 - December 31, 2023	[•]	[•]	[•]

(b)Calculation of Number of Earned Units. Following the last day of the Performance Period, the Committee shall calculate the Percentage of Award Earned with respect to each tranche, based on the percentages specified below. If actual performance with respect to any tranche is between “Threshold” and the “Target” or the “Target” and “Maximum” levels of achievement, the Percentage of Award Earned shall be determined using linear interpolation (and rounded to the nearest whole percentage point) between such numbers. In the event that actual performance does not meet the Threshold Level of Achievement with respect to any tranche, the “Percentage of Award Earned” with respect to such tranche shall be zero.  All determinations with respect to whether and the extent to which a Performance Condition has been achieved shall be made by the Committee in its sole discretion and the applicable Performance Conditions shall not be achieved and the applicable Performance Vesting RSUs shall not become Earned RSUs until the Committee certifies in writing the extent to which such Performance Conditions have been met.
						
	Level of Achievement	Percentage of Award Earned
	Below Threshold	0%
	Threshold	50% 
	Target 	100% 
	Maximum 	200%
	Above Maximum	200%

(c)Unvested RSUs Forfeited. Any Performance Vesting RSUs which do not become Earned RSUs based on actual performance during the Performance Period shall be forfeited as of the last day of the Performance Period, except to the extent set forth in the Restricted Stock Unit Agreement. 

3.Vesting of Earned RSUs. 

(a)Any Performance Vesting RSUs that become Earned RSUs shall become vested on the Determination Date for the Performance Period.

(b)Vested RSUs shall be settled in accordance with the terms of the Restricted Stock Unit Agreement. 

4.Definitions. For the purposes of this Award Notice: 

(a)“Beginning Share Price” with respect to the Performance Period shall mean the 20 day trailing average closing stock price as of (but excluding) the first day of the Performance Period (subject to adjustment in accordance with Section 14 of the Plan). 

3

(b)“CAGR” shall mean compounded annual growth rate, and shall be expressed as a percentage (rounded to the nearest tenth of a percent 0.1%) and shall be calculated for a performance period using the following formula:  

(c)“Determination Date” shall mean, with respect to the Performance Period, the date the Performance Conditions for such Performance Period are certified by the Committee in writing.

(d)“Ending Share Price” with respect to the Performance Period shall mean the 20 day trailing average closing stock price through (and including) the last trading day of a Performance Period.

(e)“INVH TSR” shall be calculated as the CAGR, expressed as a percentage (rounded to the nearest tenth of a percent (0.1%)), in the value per Share during the Performance Period due to the appreciation or depreciation in the price per Share and dividends paid during the Performance Period, assuming dividends are reinvested on their respective ex-dividend dates, and calculated using the Beginning Share Price and the Ending Share Price.

(f)“INVH TSR Relative to RMS Index CAGR” in respect of the Performance Period shall mean the INVH TSR for the Performance Period, less the RMS Index CAGR for the Performance Period. For the avoidance of doubt, the intent of the Committee is that RMS Index CAGR over the Performance Period be calculated in a manner designed to produce a fair comparison between the INVH TSR percentage and the RMS Index CAGR for the purpose of determining INVH TSR Relative to RMS Index CAGR.

(g) “RMS Index CAGR” shall be calculated as the CAGR, expressed as a percentage (rounded to the nearest tenth of a percent (0.1%)), in the value of the MSCI US REIT Index during the Performance Period due to the appreciation or depreciation in the index during the Performance Period, but using (x) the 20 day trailing average closing price of the index as of (but excluding) the first day of the Performance Period and (y) the 20 day trailing average closing price of the index through (and including) the last trading day of a Performance Period. 

(h)“Same Store NOI Growth” means net operating income for an identified population of homes as set forth in the Company’s annual and quarterly reports filed with the SEC in respect of the actual Performance Period. 

RESTRICTED STOCK UNIT AGREEMENT
(2021 GRANT)

INVITATION HOMES INC.
2017 OMNIBUS INCENTIVE PLAN

        This Restricted Stock Unit Agreement, effective as of the Date of Grant (as defined below), is between Invitation Homes Inc., a Maryland corporation (the “Company”), and the Participant (as defined below).

WHEREAS, the Company has adopted the Invitation Homes Inc. 2017 Omnibus Incentive Plan (as it may be amended, the “Plan”) in order to provide additional incentives to selected officers, employees, consultants and advisors of the Company Group; and

WHEREAS, the Committee (as defined in the Plan) responsible for administration of the Plan has determined to grant RSUs to the Participant as provided herein and the Company and the Participant hereby wish to memorialize the terms and conditions applicable to such RSUs.

        NOW, THEREFORE, the parties hereto agree as follows:

1.Definitions. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan. The following terms shall have the following meanings for purposes of this Agreement:

(a)“Agreement” shall mean this Restricted Stock Unit Agreement including (unless the context otherwise requires) the Award Notice and Appendix A.

(b) “Award Notice” shall mean the notice to the Participant with respect to the RSUs granted under this Agreement.

(c)“Constructive Termination” shall have the meaning set forth in any employment agreement, or if no such agreement exists, the meaning set forth in any other agreement providing for severance benefits (including a participation notice under the Company’s Executive Severance Plan) entered into by the Participant and a member of the Company Group, as may be amended, modified or supplemented from time to time, or, if no such agreement exists at the time of a termination of employment or service, (i) a material reduction in the Participant’s total compensation opportunity (measured as base salary, target annual bonus opportunity, and target long-term cash incentive opportunity in the aggregate) other than in connection with an across-the-board reduction of compensation which does not exceed 10% of the Participant’s base salary and that is applied to all senior executives of the Company; or (ii) a relocation of the Participant’s principal place of employment by more than 50 miles; provided that any event described in clause (i) or (ii) above shall not constitute a Constructive Termination unless the Company fails to cure such event within 30 days after receipt from the Participant of written notice of the event which otherwise would constitute Constructive Termination; and provided, further, that “Constructive Termination” shall cease to exist for an event on the 60th day following the Participant’s knowledge thereof, unless the Participant has given the Board written notice thereof prior to such date. 

2

(d)“Date of Grant” shall mean the “Date of Grant” listed in the Award Notice.

(e)“Detrimental Activity” shall mean the Participant’s (i) willful or repeated failure or refusal to perform such duties which results in demonstrable material harm to the Company Group, following written notice from the Committee and ten days opportunity to cure; (ii) conviction of, or plea of guilty or no contest to, (A) any felony; or (B) any other crime that results in, or could reasonably be expected to result in, material harm to the business or reputation of the Company or any other member of the Company Group; (iii) fraud or misappropriation, embezzlement or misuse of funds or property belonging to the Company or any other member of the Company Group; or (iv) act of personal dishonesty that involves personal profit in connection with the Participant’s employment or service to the Service Recipient.

(f)“Participant” shall mean the “Participant” listed in the Award Notice.

(g)“Qualifying Termination” shall mean the Participant’s employment or service, as applicable, with the Company Group is terminated by the Company Group without Cause, or is terminated by the Participant following a Constructive Termination. 

(h)“Restrictive Covenant Violation” shall mean the Participant’s breach of the Restrictive Covenants listed on Appendix A or any covenant regarding confidentiality, competitive activity, solicitation of the Company’s vendors, suppliers, customers, or employees, or any similar provision applicable to or agreed to by the Participant.

(i)“Retirement” shall mean the Participant’s voluntary resignation from employment, other than while grounds for “Cause” exist, when (x) the Participant’s age is at least 55 years old, (y) the Participant’s Years of Service is at least ten years, and (z) the sum of the Participant’s age and years of service is at least 651.

(j)“RSUs” shall mean that number of Restricted Stock Units listed in the Award Notice as “Restricted Stock Units Granted.”

(k)“Shares” shall mean a number of shares of the Company’s Common Stock equal to the number of RSUs.

(l)“Years of Service” shall mean the number of full months (converted to years) of employment and other business relationships with the Company and its predecessors. 

2.Grant of Units. The Company hereby grants the RSUs to the Participant, each of which represents the right to receive one Share upon vesting of such RSU, subject to and in accordance with the terms, conditions and restrictions set forth in the Plan, the Award Notice, and this Agreement. 

3.RSU Account. The Company shall cause an account (the “Unit Account”) to be established and maintained on the books of the Company to record the number of RSUs credited to the Participant under the terms of this Agreement. The Participant’s interest in the Unit Account shall be that of a general, unsecured creditor of the Company.

_______________________________
1 In the case of Mr. Solls, (x) the Participant’s age is at least 60 and (y) the sum of the Participant’s age and years of service is at least 65.

3

4.Vesting; Settlement. The RSUs shall become vested in accordance with the schedule set forth on the Award Notice. The Company shall deliver to the Participant one share of Common Stock for each RSU (as adjusted under the Plan) which becomes vested in a given calendar year, pursuant to Section 13, below, and such vested RSU shall be cancelled upon such delivery. 

5.Termination of Employment.
    
(a)In the event that the Participant’s employment or service, as applicable, with the Company Group terminates for any reason, any unvested RSUs shall be forfeited and all of the Participant’s rights hereunder with respect to such unvested RSUs shall cease as of the effective date of termination (the “Termination Date”) (unless otherwise provided for by the Committee in accordance with the Plan or this Agreement). 

(b)Notwithstanding the foregoing, in the event of a Qualifying Termination, subject to the Participant’s execution and non-revocation of the Company’s standard form of release of claims:

(i)The next installment of Time Vesting RSUs which could become vested in accordance with the Award Notice, and all Earned RSUs outstanding under this Agreement, shall become vested and settled in accordance with this Agreement.

(ii)With respect to any Performance Vesting RSUs for which the Performance Period has not been completed, a prorated portion of the Performance Vesting RSUs will remain outstanding and eligible to vest based on actual performance on the last day of the Performance Period, with such proration based on the number of days the Participant was employed during the Performance Period, relative to the total number of days in the Performance Period. Any Performance Vesting RSUs which become Earned RSUs following the Determination Date shall become vested and settled in accordance with Section 4 as soon as practicable following the Determination Date. 

(c)Notwithstanding the foregoing, in the event the Participant’s employment or service with the Company Group is terminated by the Company Group following the Participant’s death or during the Participant’s Disability, subject to the Participant’s or executor’s execution and non-revocation of the Company’s standard form of release of claims:

(i)the Time Vesting RSUs and any Earned RSUs outstanding under this Agreement shall become vested as of the Termination Date and settled as soon as practicable following the Termination Date.

(ii)With respect to any Performance Vesting RSUs for which the Performance Period has not been completed, a prorated portion of the Performance Vesting RSUs will remain outstanding and eligible to vest based on actual performance on the last day of the Performance Period, with such proration based on the number of days the Participant was employed during the Performance Period, relative to the total number of days in the Performance Period. Any Performance Vesting RSUs which become Earned RSUs following the Determination Date shall become vested and settled in accordance with Section 4 as soon as practicable following the Determination Date. 

4

(d)Notwithstanding the foregoing, in the event of a Participant’s Retirement following written notice at least six months prior to the date of the Participant’s resignation: 

(i)The Time Vesting RSUs outstanding under this Agreement shall remain outstanding and eligible to vest so long as no Restrictive Covenant Violation occurs, as determined by the Committee, or its designee, in its sole discretion, prior to the applicable vesting date. 

(ii)Earned RSUs outstanding under this Agreement shall remain outstanding and eligible to vest so long as no Restrictive Covenant Violation occurs, as determined by the Committee, or its designee, in its sole discretion, prior to the applicable vesting date. 

(iii)A prorated number of Performance Vesting RSUs shall remain outstanding and eligible to become Earned RSUs, notwithstanding the Participant’s Retirement, based on the extent to which the Performance Conditions are satisfied following the completion of the Performance Period, with such proration based on the number of days the Participant was employed during the Performance Period, relative to the total number of days in the Performance Period. Any Performance Vesting RSUs which become Earned RSUs pursuant to this Section 5(c) shall become vested in accordance with Section 5(c)(ii). 

(e)The Participant’s rights with respect to the RSUs shall not be affected by any change in the nature of the Participant’s employment or service, as applicable, so long as the Participant continues to be an employee or service provider, as applicable, of the Company Group. Whether (and the circumstances under which) the Participant’s employment or service, as applicable, has terminated and the determination of the Termination Date for the purposes of this Agreement shall be determined by the Committee (or, with respect to any Participant who is not a director or “officer” as defined under Rule 16a-1(f) of the Exchange Act, its designee, whose good faith determination shall be final, binding and conclusive; provided, that such designee may not make any such determination with respect to the designee’s own employment for purposes of the RSUs). As a pre-condition to a Participant’s right to continued vesting following Retirement, the Committee, or its designee, may require the Participant to certify in writing prior to each applicable vesting date that no Restrictive Covenant Violation has occurred.

6.Change in Control. 

(a)Treatment of Performance Vesting RSUs. 

(i)Calculation of Change in Control Earned RSUs. In the event of a Change in Control during the Participant’s employment and prior to the completion of the Performance Period, the Performance Vesting RSUs will become Earned RSUs based on:

(A) the INVH TSR and the RMS Index CAGR as measured through the date of the Change in Control based on the closing price of a Share of the Company on the last trading day immediately prior to the Change in Control (or, if the Company’s shares are not publicly traded immediately prior to the Change in Control, based on the value of a Share as determined by the Committee based on the actual or implied price paid in the Change in Control) relative to the performance criteria set forth in the Award Notice, and 

5

(B)the Company’s actual Same Store NOI Growth CAGR measured through the most recently completed fiscal quarter relative to the performance criteria set forth in the Award Notice. 

The number of Earned RSUs calculated in accordance with the foregoing (the “Change in Control Earned RSUs”) shall not be prorated based on the number of completed days in the Performance Period. 
(ii)Vesting of Change in Control Earned RSUs. Any Performance Vesting RSUs which become Change in Control Earned RSUs shall become vested as to 50% of such Change in Control Earned RSUs as of the date of the Change in Control, and as to the remaining 50% of the Change in Control Earned RSUs on the first anniversary of the date of the Change in Control.

(b)Certain Terminations Following a Change in Control. Notwithstanding Section 5(a) of this Agreement, in the event of a Qualifying Termination during the 24-month period immediately following a Change in Control, any unvested Time Vesting RSUs, Earned RSUs, and Change in Control Earned RSUs shall become vested as of the Termination Date, and shall thereafter be settled in accordance with this Agreement.

(c)Assumption of Awards. In the event of a Change in Control, in connection with which the successor to the Company fails to assume, convert or replace the RSUs, the Time Vesting RSUs, Earned RSUs, and the Change in Control Earned RSUs, to the extent not assumed, will become vested as of immediately prior to the Change in Control.  

7.Dividends. 

(a)Upon the declaration by the Company of dividends to holders of its Common Stock, the Participant shall be entitled to receive dividend equivalent payments (“Dividend Equivalents”) in respect of all of such Participant’s Time Vesting RSUs and any Earned RSUs, whether unvested or vested and not yet settled, as of the record date for such dividend. The Dividend Equivalents shall be delivered to the Participant on the regular payment date that such dividend is made to all holders of the Company’s Common Stock and in the same form as are delivered to holders of the Company’s Common Stock (i.e., in either cash, without interest, or in shares of Common Stock which Common Stock will not be not subject to any vesting conditions).  

(b)Unearned Performance Vesting RSUs shall be entitled to be credited with dividend equivalent payments (upon the payment by the Company of dividends on Shares), which shall accrue in cash without interest and shall be delivered in cash (unless the Committee in its sole discretion, elects to settle such amount in Shares having a Fair Market Value as of the settlement date equal to the amount of such dividends). Accumulated dividend equivalents shall be payable at such time the Performance Vesting RSUs become Earned RSUs. For the avoidance of doubt, dividends accrued in respect of Performance Vesting RSUs shall only be paid to the extent the underlying Performance Vesting RSU becomes an Earned RSU, and to the extent any Performance Vesting RSUs are forfeited and not earned, the Participant shall have no right to such dividend equivalent payments.  

8.Restrictions on Transfer. The Participant may not assign, alienate, pledge, attach, sell or otherwise transfer or encumber the RSUs or the Participant’s right under the RSUs to receive Shares, except other than by will or by the laws of descent and distribution and any such purported assignment, 

6

alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any of its Affiliates; provided, that the designation of a beneficiary (if permitted by the Committee) shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

9.Repayment of Proceeds; Clawback Policy. In the event of a Restrictive Covenant Violation or if the Participant engages in Detrimental Activity prior to the fourth anniversary of the Date of Grant, the Participant shall be required, in addition to any other remedy available (on a non-exclusive basis), to pay to the Company, within 10 business days of the Company’s request to the Participant therefor, an amount equal to the aggregate after-tax proceeds the Participant received upon the sale or other disposition of, or distributions in respect of, the RSUs (including any Dividend Equivalents previously paid) and any Shares issued in respect thereof. In addition, in the event of a restatement of the Company’s financial results (other than a restatement caused by a change in applicable accounting rules or interpretations), the result of which is that the number of RSUs that became Earned RSUs would have been a lower amount had it been calculated based on such restated results, and the Committee determines that the Participant engaged in fraud or intentional illegal conduct which materially contributed to the need for such restatement, the Company shall be entitled to recoup from the Participant, an amount equal to the excess of the compensation received by the Participant over the amount the Participant would have been entitled to if calculated based on the restated financial results. The amount of any request for clawback or recoupment shall take into account all amounts of tax that would be recoverable upon a claim of loss for payment of such proceeds in the year of repayment. The RSUs and all proceeds of the RSUs shall be subject to the Company’s clawback policies, if any, and as in effect from time to time, to the extent any such policy is required by law.

10.No Right to Continued Employment or Engagement. Neither the Plan nor this Agreement nor the Participant’s receipt of the RSUs hereunder shall impose any obligation on the Company or any of its Affiliates to continue the employment or engagement of the Participant. Further, the Company or any of its Affiliates (as applicable) may at any time terminate the employment or engagement of the Participant, free from any liability or claim under the Plan or this Agreement, except as otherwise expressly provided herein.

11.No Rights as a Stockholder. The Participant’s interest in the RSUs shall not entitle the Participant to any rights as a stockholder of the Company. The Participant shall not be deemed to be the holder of, or have any of the rights and privileges of a stockholder of the Company in respect of, the Shares unless and until such Shares have been issued to the Participant in accordance with Section 13.

12.Adjustments Upon Change in Capitalization. The terms of this Agreement, including the RSUs, the Participant’s Unit Account, any Dividend Equivalents, and/or the Shares, shall be subject to adjustment in accordance with Section 14 of the Plan. This paragraph shall also apply with respect to any extraordinary dividend or other extraordinary distribution in respect of the Company’s Common Stock (whether in the form of cash or other property). In the event of an equity restructuring, the Committee shall adjust any Performance Condition to the extent it is affected by such restructuring in order to preserve (without enlarging) the likelihood that such Performance Condition shall be satisfied. The manner of such adjustment shall be determined by the Committee in its sole discretion. For this purpose, “equity restructuring” shall mean an “equity restructuring” as defined in Financial Accounting Standards Board Accounting Standards Codification 718-10 (formerly Statement of Financial Accounting Standards 123R).

7

13.Settlement and Issuance of Shares; Tax Withholding

(a)The Company shall, as soon as reasonably practicable (and in any event within two and one-half months of the applicable vesting date or such earlier time provided in Section 4), issue the Share underlying such vested RSU to the Participant, free and clear of all restrictions, less a number of Shares equal to or greater in value than the minimum amount necessary to satisfy federal, state, local or foreign withholding tax requirements, if any (but which may in no event be greater than the maximum statutory withholding amounts in the Participant’s jurisdiction) (the “Withholding Taxes”) in accordance with Section 16(d) of the Plan (except to the extent the Participant shall have a written agreement with the Company or any of its Affiliates under which the Company or an Affiliate of the Company is responsible for payment of taxes with respect to the issuance of the Shares, in which case the full number of Shares shall be issued). To the extent any Withholding Taxes may become due prior to the settlement of any RSUs, the Committee may accelerate the vesting of a number of RSUs equal in value to the Withholding Taxes, the Shares delivered in settlement of such RSUs shall be delivered to the Company, and the number of RSUs so accelerated shall reduce the number of RSUs which would otherwise become vested on the next applicable vesting date. The number of RSUs or Shares equal to the Withholding Taxes shall be determined using the closing price per Share on the New York Stock Exchange (or other principal exchange on which the Shares then trade) on the trading day immediately prior to the date of delivery of the Shares to the Participant or the Company, as applicable, and shall be rounded up to the nearest whole RSU or Share.

(b)The Company shall pay any costs incurred in connection with issuing the Shares. Upon the issuance of the Shares to the Participant, the Participant’s Unit Account shall be eliminated. Notwithstanding anything in this Agreement to the contrary, the Company shall have no obligation to issue or transfer the Shares as contemplated by this Agreement unless and until such issuance or transfer shall comply with all relevant provisions of law and the requirements of any stock exchange on which the Company’s shares are listed for trading.

14.Award Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. The RSUs granted hereunder are subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time, are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

15.Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.

16.Governing Law; Arbitration and Venue. 

(a)This Agreement shall be governed by and construed in accordance with the internal laws of the State of Maryland applicable to contracts made and performed wholly within the State of Maryland, without giving effect to the conflict of laws provisions thereof. 

(b)Any controversy or claim arising out of or relating to this Agreement or the breach of this Agreement (other than a controversy or claim arising with respect to the matters set forth in 

8

Appendix A, to the extent necessary for the Company (or other member of the Company Group, where applicable) to avail itself of the rights and remedies referred to therein) that is not resolved by Participant and the Company (or other member of the Company Group, where applicable) through good-faith negotiations shall be submitted to arbitration in Dallas, Texas and the employment arbitration rules and procedures of the American Arbitration Association, before an arbitrator experienced in employment and compensation disputes who is licensed to practice law in the State of Texas.  The determination of the arbitrator shall be conclusive and binding on the Company (or other member of the Company Group, where applicable) and Participant (or its heirs, beneficiaries or assigns, where applicable) and judgment may be entered on the arbitrator(s)’ award in any court having component jurisdiction. Each of the Participant, the Company, and any transferees who hold RSUs pursuant to a valid assignment hereby irrevocably waives (a) any objections which it may now or hereafter have to the laying of the venue of any suit, action, or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in the State of Maryland; (b) any claim that any such suit, action, or proceeding brought in any such court has been brought in any inconvenient forum; and (c) any right to a jury trial. 

17.Successors in Interest. Any successor to the Company shall have the benefits of the Company under, and be entitled to enforce, this Agreement. Likewise, the Participant’s legal representative shall have the benefits of the Participant under, and be entitled to enforce, this Agreement. All obligations imposed upon the Participant and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon the Participant’s heirs, executors, administrators and successors.

18.Data Privacy Consent. 

(a)General. The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this Agreement and any other RSU grant materials by and among, as applicable, the Participant’s employer or contracting party (the “Employer”) and the Company for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that the Company may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, work location and phone number, date of birth, social insurance number or other identification number, salary, nationality, job title, hire date, any shares of stock or directorships held in the Company, details of all awards or any other entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, administering and managing the Plan (“Personal Data”).

9

(b)Use of Personal Data; Retention. The Participant understands that Personal Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, now or in the future, that these recipients may be located in the Participant’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Participant’s country. The Participant understands that the Participant may request a list with the names and addresses of any potential recipients of the Personal Data by contacting the Participant’s local human resources representative. The Participant authorizes the recipients to receive, possess, use, retain and transfer the Personal Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that Personal Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant understands that the Participant may, at any time, view Personal Data, request additional information about the storage and processing of Personal Data, require any necessary amendments to Personal Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Participant’s local human resources representative.  

(c)Withdrawal of Consent. The Participant understands that the Participant is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke the Participant’s consent, the Participant’s employment status or service and career with the Employer will not be adversely affected; the only consequence of the Participant’s refusing or withdrawing the Participant’s consent is that the Company would not be able to grant RSUs or other equity awards to the Participant or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing the Participant’s consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, the Participant understands that the Participant may contact the Participant’s local human resources representative.  

19.Restrictive Covenants. The Participant acknowledges and recognizes the highly competitive nature of the businesses of the Company and its Affiliates, that the Participant will be allowed access to confidential and proprietary information (including, but not limited to, trade secrets) about those businesses, as well as access to the prospective and actual customers, suppliers, investors, clients and partners involved in those businesses, and the goodwill associated with the Company and its Affiliates. Participant accordingly agrees to the provisions of Appendix A to this Agreement (the “Restrictive Covenants”). For the avoidance of doubt, the Restrictive Covenants contained in this Agreement are in addition to, and not in lieu of, any other restrictive covenants or similar covenants or agreements between the Participant and the Company or any of its Affiliates.  

20.Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation. By accepting this Agreement and the grant of the RSUs contemplated hereunder, the Participant expressly acknowledges that (a) the Plan is established voluntarily by the Company, it is discretionary in nature and may be suspended or terminated by the Company at any time, to the extent permitted by the Plan; (b) the grant of RSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted in the past; (c) all determinations with respect to future grants of RSUs, if any, including the grant date, the number of Shares granted and the applicable vesting terms, will be at the sole discretion of the Company; (d) the Participant’s participation in the Plan is voluntary; (e) the value of the RSUs is an extraordinary item of compensation that is outside the scope of the Participant’s employment contract, if any, and nothing can or must automatically be inferred from such employment contract or its consequences; (f) grants of RSUs, and the income and value of same, are not part of normal or expected 

10

compensation for any purpose and are not to be used for calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments, the Participant waives any claim on such basis, and for the avoidance of doubt, the RSUs shall not constitute an “acquired right” under the applicable law of any jurisdiction; and (g) the future value of the underlying Shares is unknown and cannot be predicted with certainty. In addition, the Participant understands, acknowledges and agrees that the Participant will have no rights to compensation or damages related to RSU proceeds in consequence of the termination of the Participant’s employment for any reason whatsoever and whether or not in breach of contract.

21.Award Administrator. The Company may from time to time designate a third party (an “Award Administrator”) to assist the Company in the implementation, administration and management of the Plan and any RSUs granted thereunder, including by sending award notices on behalf of the Company to Participants, and by facilitating through electronic means acceptance of RSU Agreements by Participants. 

22.Section 409A of the Code.

(a)This Agreement is intended to comply with the provisions of Section 409A of the Code and the regulations promulgated thereunder. Without limiting the foregoing, the Committee shall have the right to amend the terms and conditions of this Agreement in any respect as may be necessary or appropriate to comply with Section 409A of the Code or any regulations promulgated thereunder, including without limitation by delaying the issuance of the Shares contemplated hereunder. 

(b)Notwithstanding any other provision of this Agreement to the contrary, if a Participant is a “specified employee” within the meaning of Section 409A of the Code, no payments in respect of any RSU that is “deferred compensation” subject to Section 409A of the Code and which would otherwise be payable upon the Participant’s “separation from service” (as defined in Section 409A of the Code) shall be made to such Participant prior to the date that is six months after the date of the Participant’s “separation from service” or, if earlier, the Participant’s date of death. Following any applicable six-month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day. The Participant is solely responsible and liable for the satisfaction of all taxes and penalties under Section 409A of the Code that may be imposed on or in respect of the Participant in connection with this Agreement, and the Company shall not be liable to any Participant for any payment made under this Plan that is determined to result in an additional tax, penalty or interest under Section 409A of the Code, nor for reporting in good faith any payment made under this Agreement as an amount includible in gross income under Section 409A of the Code. Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.

11

23.Book Entry Delivery of Shares. Whenever reference in this Agreement is made to the issuance or delivery of certificates representing one or more Shares, the Company may elect to issue or deliver such Shares in book entry form in lieu of certificates.

24.Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

25.Acceptance and Agreement by the Participant. By accepting the RSUs (including through electronic means), the Participant agrees to be bound by the terms, conditions, and restrictions set forth in the Plan, this Agreement, and the Company’s policies, as in effect from time to time, relating to the Plan. The Participant’s rights under the RSUs will lapse forty-five (45) days from the Date of Grant, and the RSUs will be forfeited on such date if the Participant shall not have accepted this Agreement by such date. For the avoidance of doubt, the Participant’s failure to accept this Agreement shall not affect the Participant’s continuing obligation sunder any other agreement between the Company and the Participant. 

26.No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares. The Participant is hereby advised to consult with the Participant’s own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any action related to the Plan.

27.Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Participant's participation in the Plan, on the RSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

28.Waiver. The Participant acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant in the Plan.

29.Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together with the Award Notice constitute one in the same agreement. 

[Signatures follow]

						
		INVITATION HOMES INC.
		
	By:	
		Name: 
		Title:
	
		

Acknowledged and Agreed
as of the date first written above:

______________________________
Participant Signature

______________________________
Date: 

[Signature Page to Restricted Stock Unit Agreement] 

Appendix A -  1

APPENDIX A
Restrictive Covenants 

1.Non-Competition; Nonsolicitation.

(a)The Participant acknowledges and recognizes the highly competitive nature of the businesses of the Restricted Group (as defined below) and accordingly agrees as follows:

(i)During the Participant’s employment or service, as applicable, and for a period equal to one year following the date the Participant ceases employment or service, as applicable, for any reason (the “Restricted Period”), the Participant will not, without the prior written consent from the Company regarding the specific solicitations, engagements, or actions proposed, and such consent to be delivered in its sole, good faith discretion, whether on the Participant’s own behalf or on behalf of or in conjunction with any person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise whatsoever (“Person”), directly or indirectly solicit or assist in soliciting in competition with the Restricted Group in the Business the business of any then current or prospective client or customer with whom the Participant (or the Participant’s direct reports) had personal contact or dealings on behalf of the Company and its Subsidiaries during the one-year period preceding the Participant’s termination of employment or service, as applicable.

(ii)During the Restricted Period, the Participant will not, without prior written consent from the Company regarding the specific engagement, employment, or investment proposed, and such consent to be delivered in its sole, good faith discretion, directly or indirectly:

(A)engage in the Business in any geographical area that is within 20 miles of any geographical area where the Restricted Group engages in the Business (or has plans to engage in the Business during the Restricted Period); 

(B)enter the employ of, or render any services to, a Competitor, except where such employment or services do not relate to the Business; or

(C)acquire a 10% or greater financial interest in a Competitor, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant.

(iii)Notwithstanding anything to the contrary in this Appendix A, the provisions of this Section 1 shall not restrict acquisition or ownership of any number of single family homes for personal use by the Participant or up to one hundred additional single family homes as personal investments.

(iv)During the Restricted Period, the Participant will not, whether on the Participant’s own behalf or on behalf of or in conjunction with any Person, directly or indirectly:

(A)solicit or encourage any employee of the Restricted Group to leave the employment of the Restricted Group; or

Appendix A -  2

(B)hire any employee of the Restricted Group who provided services to the Restricted Group as of the date of the Participant’s termination of employment or service or terminated employment within six months prior to the termination of the Participant’s employment or service, as applicable.

Except that Participant shall not be precluded from employing or contacting (1) any such employee who has been terminated by the Restricted Group (including, but not limited to, any employee terminated by the Company in connection with the merger of Starwood Waypoint Homes with the Company), or (2) any person a result of general solicitations not specifically directed at either the Restricted Group or its respective employees.

(v)For purposes of this Appendix A:

(A)“Business” shall mean the business of acquiring controlling investments in, owning, developing, leasing, operating or managing one unit residential real properties for rent, including single-family homes in planned unit developments and individual single family townhomes and individual residential condominium units in a low-rise or high-rise condominium project, where such properties are located in the United States but excluding, for the avoidance of doubt, (1) any activities undertaken with the prior written consent of the Company sought in accordance with sub-sections (a)(i) or (a)(ii), and (2) acting as a broker with respect to leasing and sale transactions.

(B)“Competitor” shall mean any Person engaged in the Business in direct competition with the Company and its Subsidiaries, but excluding any Person for which less than 10% of its revenue during its most recent fiscal year is derived from activities similar to the Business.

(C)“Restricted Group” shall mean, collectively, the Company and its Subsidiaries. 

(b)It is expressly understood and agreed that although the Participant and the Restricted Group consider the restrictions contained in this Section 1 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Appendix A is an unenforceable restriction against the Participant, the provisions of this Appendix A shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Appendix A is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

(c)The period of time during which the provisions of this Section 1 shall be in effect shall be extended by the length of time during which the Participant is in breach of the terms hereof as determined by any court of competent jurisdiction on the Company’s application for injunctive relief.

(d)The provisions of this Section 1 shall survive the termination of the Participant’s employment or service for any reason

Appendix A -  3

(e)Notwithstanding anything herein to the contrary, Sections 1(a)(i) and 1(a)(ii) shall not apply to the Participant if the Participant’s principal place of employment or the state in which the Participant provides services, in each case on the Date of Grant, is located in the State of California.

2.Confidentiality; Intellectual Property.

(a)Confidentiality.

(i)The Participant will not at any time (whether during or after the Participant’s employment or engagement, as applicable) (x) retain or use for the benefit, purposes or account of the Participant or any other Person; or (y) disclose, divulge, reveal, communicate, share, transfer or provide access to any Person outside the Company and its Affiliates (other than its professional advisers who are bound by confidentiality obligations, lenders and partners or otherwise in performance of the Participant’s employment or engagement duties), any proprietary and non-public/confidential information (including without limitation trade secrets, know-how, research and development, software, databases, inventions, processes, formulae, technology, designs and other intellectual property, information concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting, training, advertising, sales, marketing, promotions, government and regulatory activities and approvals) concerning the past, current or future business, activities and operations of the Restricted Group (“Confidential Information”) without the prior written authorization of the board of directors of the Company; provided, however, that the conscious awareness of any Confidential Information (as opposed to the physical possession of documentary Confidential Information) by the Participant, and the Participant’s consideration of such information in connection with the Participant’s pursuit or evaluation of, involvement with or participation in, any project or activity that is not prohibited by this Appendix A shall be deemed not to constitute a breach of Section 2(a)(i)(x) or Section 2(a)(iv)(x) in any manner whatsoever, unless such Participant’s use of such Confidential Information has an objective and detrimental impact on the business of the Company and its Subsidiaries.

(ii)“Confidential Information” shall not include any information that is (x) generally known to the industry or the public other than as a result of the Participant’s breach of this covenant; (y) made legitimately available to the Participant by a third party without breach of any confidentiality obligation of which the Participant has knowledge (it being understood that any information made available by an employee, officer or director of the Company Group shall not be protected by this exclusion); or (z) required by law to be disclosed; provided, that with respect to subsection (z) the Participant shall give prompt written notice to the Company of such requirement and reasonably cooperate with any attempts by the Company to obtain a protective order or similar treatment.

(iii)Except as required by law, the Participant will not disclose to anyone, other than the Participant’s family (it being understood that, in this Appendix A, the term “family” refers to the Participant, the Participant’s spouse, minor children, parents and spouse’s parents) and legal or financial advisors, the existence or contents of this Agreement; provided, that the Participant may disclose to any prospective future employer the provisions of Sections 1 and 2 of this Appendix A; provided, further, that any such employer agrees to maintain the confidentiality of such terms. This Section 2(a)(iii) shall terminate if any member of the 

Appendix A -  4

Company Group publicly discloses a copy of the Restricted Stock Unit Agreement or this Appendix A (or, if any member of the Company Group publicly discloses summaries or excerpts of the Subscription Agreement or this Appendix A, to the extent so disclosed).

(iv)Upon termination of the Participant’s employment or service for any reason, the Participant shall (x) except as otherwise provided herein, cease and not thereafter commence use of any Confidential Information or intellectual property (including without limitation, any patent, invention, copyright, trade secret, trademark, trade name, logo, domain name or other source indicator) owned or used by any member of the Restricted Group; (y) immediately destroy, delete, or return to the Company, at the Company’s option and expense, all originals and copies in any form or medium (including memoranda, books, papers, plans, computer files, letters and other data) in the Participant’s possession or control (including any of the foregoing stored or located in the Participant’s office, home, laptop or other computer, whether or not Company property) that contain Confidential Information, except that the Participant may retain only those portions of any personal notes, notebooks and diaries that do not contain any Confidential Information; and (z) notify and reasonably cooperate with the Company regarding the delivery or destruction of any other Confidential Information of which the Participant is or becomes aware.

(b)Intellectual Property.

(i)If the Participant creates, invents, designs, develops, contributes to or improves any works of authorship, inventions, intellectual property, materials, documents or other work product (including, without limitation, research, reports, software, databases, systems, applications, presentations, textual works, content, or audiovisual materials), either alone or with third parties, at any time during the Participant’s employment or engagement and within the scope of such employment or engagement and with the use of any the Company’s resources (the “Company Works”), the Participant shall promptly and fully disclose the same to the Company and hereby irrevocably assigns, transfers and conveys, to the maximum extent permitted by applicable law, all rights and intellectual property rights therein (including rights under patent, industrial property, copyright, trademark, trade secret, unfair competition and related laws) to the Company to the extent ownership of any such rights does not vest originally in the Company.  

(ii)The Participant shall take all requested actions and execute all requested documents (including any licenses or assignments required by a government contract) at the Company’s expense (but without further remuneration) to assist the Company in validating, maintaining, protecting, enforcing, perfecting, recording, patenting or registering any of the Company’s rights in the Company Works. If the Company is unable for any other reason, to secure the Participant’s signature on any document for this purpose, then the Participant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Participant’s agent and attorney in fact, to act for and in the Participant’s behalf and stead to execute any documents and to do all other lawfully permitted acts required in connection with the foregoing.

(iii)The provisions of Section 2 hereof shall survive the termination of the Participant’s employment or engagement, in either case, for any reason.

Appendix A -  5

(c)Protected Rights. Nothing contained in this Agreement or any other plan, policy, agreement, or code of conduct or similar arrangement of the Company Group, limits Participant’s ability to (i) disclose any information to governmental agencies or commissions as may be required by law, (ii) file a charge or complaint with, or communicate or cooperate with, any U.S. federal, state, or local governmental agency or commission (a “Governmental Entity”), or otherwise participate in any investigation or proceeding that may be conducted by a Governmental Entity with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise make disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case all such charges, complaints, communications and disclosures are consistent with applicable law, or (iii) receive an award from a Governmental Entity for information provided under any whistleblower program, including the Participant’s right to seek and obtain a whistleblower award for providing information relating to a possible securities law violation to the Securities and Exchange Commission.

3.Specific Performance. The Participant acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of Section 1 or 2 of this Appendix A may be inadequate and the Company may suffer irreparable damages as a result of such breach. In recognition of this fact, the Participant agrees that, in the event of a Restrictive Covenant Violation, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to seek equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available.a8k030421exhibit101

Execution Version  EU-DOCS\31160993.15  26 FEBRUARY 2021  WESTERN POWER DISTRIBUTION PLC  (as the Borrower)  and  J.P. MORGAN AG  (as Agent)  £350,000,000 FACILITY AGREEMENT  99 Bishopsgate  London EC2M 3XF   United Kingdom  Tel: +44.20.7710.1000  www.lw.com  Exhibit 10.1 

 

    EU-DOCS\31160993.15    CONTENTS  Clause Page  1. INTERPRETATION ............................................................................................................... 1  2. THE FACILITY ..................................................................................................................... 18  3. PURPOSE ............................................................................................................................... 18  4. CONDITIONS PRECEDENT .............................................................................................. 19  5. DRAWDOWN ........................................................................................................................ 19  6. REPAYMENT ........................................................................................................................ 20  7. PREPAYMENT AND CANCELLATION .......................................................................... 20  8. INTEREST ............................................................................................................................. 22  9. INTEREST PERIODS ........................................................................................................... 23  10. CHANGES TO THE CALCULATION OF INTEREST ................................................... 23  11. TAX GROSS-UP AND INDEMNITIES .............................................................................. 25  12. INCREASED COSTS ............................................................................................................ 33  13. MITIGATION ........................................................................................................................ 34  14. REPLACEMENT OF A SINGLE LENDER ....................................................................... 35  15. PAYMENT MECHANICS .................................................................................................... 36  16. SET-OFF ................................................................................................................................. 39  17. REPRESENTATIONS .......................................................................................................... 39  18. INFORMATION COVENANTS .......................................................................................... 42  19. FINANCIAL COVENANTS ................................................................................................. 45  20. GENERAL COVENANTS .................................................................................................... 47  21. EVENTS OF DEFAULT ....................................................................................................... 54  22. CONDUCT OF BUSINESS BY THE FINANCE PARTIES ............................................. 57  23. EVIDENCE AND CALCULATIONS .................................................................................. 57  24. OTHER INDEMNITIES ....................................................................................................... 58  25. EXPENSES ............................................................................................................................. 58  26. AMENDMENTS AND WAIVERS ....................................................................................... 59  27. CHANGES TO THE BORROWER ..................................................................................... 64  28. CHANGES TO THE LENDERS .......................................................................................... 64  29. ROLE OF THE AGENT ....................................................................................................... 69  30. SHARING AMONG THE FINANCE PARTIES ............................................................... 78  31. CONFIDENTIALITY AND DISCLOSURE OF INFORMATION .................................. 79  32. CONFIDENTIALITY OF FUNDING RATES ................................................................... 83  33. CONTRACTUAL RECOGNITION OF BAIL-IN ............................................................. 84  34. SEVERABILITY ................................................................................................................... 86  

 

i  EU-DOCS\31160993.15  35. COUNTERPARTS ................................................................................................................. 86  36. NOTICES ................................................................................................................................ 86  37. LANGUAGE ........................................................................................................................... 88  38. GOVERNING LAW .............................................................................................................. 88  39. ENFORCEMENT .................................................................................................................. 88  ...................................................................................................................................... 89  THE ORIGINAL LENDERS  ...................................................................................................................................... 90  CONDITIONS PRECEDENT  ...................................................................................................................................... 91  REQUEST  ...................................................................................................................................... 92  FORM OF TRANSFER CERTIFICATE  ...................................................................................................................................... 95  FORM OF ASSIGNMENT AGREEMENT  ...................................................................................................................................... 99  FORM OF COMPLIANCE CERTIFICATE  .................................................................................................................................... 100  TIMETABLES  .................................................................................................................................... 101  FORM OF SUBORDINATION DEED      

 

  1  EU-DOCS\31160993.15  THIS AGREEMENT is dated 26 February 2021  BETWEEN:  (1) WESTERN POWER DISTRIBUTION PLC (registered number 09223384) (the  “Borrower”);   (2) THE FINANCIAL INSTITUTIONS listed in Schedule 1 (The Original Lenders) as original  lenders (the “Original Lenders”); and  (3) J.P. MORGAN AG as agent of the other Finance Parties (the “Agent”).   IT IS AGREED as follows:  1. INTERPRETATION  1.1 Definitions  In this Agreement:  “Acceptable Bank” means a bank or financial institution which has a rating for its long-term  unsecured and non credit-enhanced debt obligations of A- or higher by Standard & Poor’s  Rating Services or A- or higher by Fitch Ratings Ltd or A3 or higher by Moody’s Investors  Service Limited or a comparable rating from an internationally recognised credit rating agency.  “Acceptable Jurisdiction” means:  (a) the United States of America;  (b) the United Kingdom; or  (c) any other member state of the European Union or any Participating Member State  where such country has long term sovereign credit rating of AA or higher by Standard  & Poor’s Rating Services or Aa2 or higher from Moody’s Investors Service Limited or  AA or higher from Fitch Ratings Ltd.  “Act” means the Electricity Act 1989 and, unless the context otherwise requires, all subordinate  legislation made pursuant thereto.  “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.  “Applicable Accounting Principles” means those accounting principles, standards and  practices generally accepted in the United Kingdom and the accounting and reporting  requirements of the Companies Act 2006, in each case as used in the Original Financial  Statements.  “Assignment Agreement” means an agreement substantially in the form set out in Schedule 5  (Form of Assignment Agreement) or any other form agreed between the relevant assignor and  assignee.  “Available Commitment” means a Lender’s Commitment minus:  (a) the amount (if any) of its participation in any outstanding Loan; and  (b) in relation to any proposed Loan, the amount of its participation in any Loan that is due  to be made on or before the proposed Drawdown Date.  

 

  2  EU-DOCS\31160993.15  “Available Facility” means the aggregate for the time being of each Lender’s Available  Commitment.  “Balancing and Settlement Code” means the document, as modified from time to time, setting  out the electricity balancing and settlement arrangements designated by the Secretary of State  and adopted by National Grid Electricity Transmission plc (Registered No. 2366977) or its  successor pursuant to its transmission licence.  “Bank Levy” means any amount payable by a Finance Party or any of its Affiliates on the basis  of, or in relation to, its balance sheet or capital base or any part of that person or its liabilities  or minimum regulatory capital or any combination thereof (including the United Kingdom bank  levy as set out in the Finance Act 2011 (as amended), the French taxe de risque systémique as  set out in Article 235 ter ZE of the French Tax Code and the French taxe pour le financement  du fonds de soutien aux collectivités territoriales as set out in Article 235 ter ZE bis of the  French Tax Code, the German bank levy as set out in the German Restructuring Fund Act 2010  (Restrukturierungsfondsgesetz) and the Dutch bankenbelasting as set out in the Dutch bank levy  act (Wet bankenbelasting) or any other implementing rules connected therewith and any tax in  any other jurisdiction levied on a similar basis or for a similar purpose) or any financial  activities taxes (or other taxes) of a kind contemplated in the European Commission  consultation paper on financial sector taxation dated 22 February 2011, in each case which is  currently in force or envisaged.  “Basel III” means:  (a) the agreements on capital requirements, a leverage ratio and liquidity standards  contained in “Basel III: A global regulatory framework for more resilient banks and  banking systems”, “Basel III: International framework for liquidity risk measurement,  standards and monitoring” and “Guidance for national authorities operating the  countercyclical capital buffer” published by the Basel Committee on Banking  Supervision in December 2010, each as amended, supplemented or restated;  (b) the rules for global systematically important banks contained in “Global systematically  important banks: assessment methodology and the additional loss absorbency  requirement – Rules text” published by the Basel Committee on Banking Supervision  in November 2011, as amended, supplemented or restated; and  (c) any further guidance or standards published by the Basel Committee on Banking  Supervision relating to “Basel III”.  “Blocking Law” means:  (a) any provision of Council Regulation (EC) No 2271/1996 of 22 November 1996 (or any  law or regulation implementing such Regulation in any member state of the European  Union);  (b) any provision of Council Regulation (EC) No 2271/1996 of 22 November 1996, as it  forms part of domestic law of the United Kingdom by virtue of the European Union  (Withdrawal) Act 2018; or   (c) section 7 of the German Foreign Trade Regulation (Außenwirtschaftsverordnung).   “Bond Redemption Date” means the date specified as the redemption date in the Bond  Redemption Notice.  

 

  3  EU-DOCS\31160993.15  “Bond Redemption Notice” means the notice given by the Borrower to the Bank of New York  Mellon as bond trustee in respect of the redemption in full of the Borrower’s USD 500 million  5.375 per cent. notes due 1 May 2021.  “Break Costs” means the amount (if any) by which:  (a) the interest (excluding the Margin) which a Lender would have received for the period  from the date of receipt of any part of its participation in a Loan or Unpaid Sum to the  last day of the applicable Interest Period for that Loan or Unpaid Sum if the principal  or Unpaid Sum received had 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 amount received by it on deposit with a leading bank for a period starting on the  Business Day following receipt or recovery and ending on the last day of the applicable  Interest Period.  “Business Day” means a day (other than a Saturday or a Sunday) on which commercial banks  are open for general business in London and New York.  “Calculation Date” means the last day of a Calculation Period, being 31 March or 30  September.  “Calculation Period” means each period of twelve months ending on 31 March or 30  September.  “Cash” has the meaning given to that term in Clause 19 (Financial Covenants).  “Cash Equivalent Investments” has the meaning given to that term in Clause 19 (Financial  Covenants).  “Code” means the US Internal Revenue Code of 1986.  “Commitment” means:  (a) in relation to an Original Lender, the amount set opposite its name under the heading  “Commitment” in Schedule 1 (The Original Lenders) and the amount of any other  Commitment transferred to it under this Agreement; and  (b) in relation to any other Lender, the amount of any Commitment transferred to it under  this Agreement,  to the extent not cancelled, reduced or transferred by it under this Agreement.  “Competitor” means any person that is, or is an Affiliate or Related Fund of, a person that is:  (a) a competitor of the Group in respect of the Permitted Business; or  (b) an Infrastructure Equity Investment Fund, provided that in the case of an Affiliate of  such a person, any such Affiliate managed independently of such person and which has  appropriate information barriers put in place between it and such a person will not  constitute a “Competitor”.  “Compliance Certificate” means a certificate substantially in the form of Schedule 6 (Form of  Compliance Certificate) setting out, among other things, calculations of the financial covenants.  

 

  4  EU-DOCS\31160993.15  “Confidential Information” means all information relating to each of the Borrower and its  Subsidiaries, PPL Corporation and any of its Subsidiaries which directly or indirectly holds  shares in the Borrower and the directors, officers and employees of any of them (the “Extended  Group”), the Finance Documents or the Facility of which a Finance Party becomes aware in  its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance  Party in relation to, or for the purpose of becoming a Finance Party, under the Finance  Documents or the Facility from either:  (a) any member of the Extended Group or any of its advisers; or  (b) another Finance Party, if the information was obtained by that Finance Party directly  or indirectly from any member of the Extended Group or any of its 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:  (i) information that:  (A) is or becomes public information other than as a direct or indirect result  of any breach by that Finance Party of Clause 31 (Confidentiality and  disclosure of information); or  (B) is identified in writing at the time of delivery as non-confidential by  any member of the Extended Group or any of its advisers; or  (C) is known by that Finance Party before the date the information is  disclosed to it in accordance with paragraphs (a) or (b) above or is  lawfully obtained by that Finance Party after that date, from a source  which is, as far as that Finance Party is aware, unconnected with the  Extended Group and which, in either case, as far as that Finance Party  is aware, has not been obtained in breach of, and is not otherwise  subject to, any obligation of confidentiality; and  (ii) any Funding Rate.  “Confidentiality Undertaking” means a confidentiality undertaking substantially in a  recommended form of the LMA or in any other form agreed between the Borrower and the  Agent.  “Consolidated EBITDA” has the meaning given to that term in Clause 19 (Financial  Covenants).  “CRD IV” means EU CRD IV and UK CRD IV.  “CTA 2009” means the Corporation Tax Act 2009.  “CTA 2010” means the Corporation Tax Act 2010.  “Debt Purchase Transaction” means, in relation to a person, a transaction where such person:  (a) purchases by way of assignment or transfer;  (b) enters into any sub-participation in respect of; or  (c) enters into any other agreement or arrangement having an economic effect substantially  similar to a sub-participation in respect of,  

 

  5  EU-DOCS\31160993.15  any Commitment or amount outstanding under this Agreement.  “Default” means:  (a) an Event of Default; or  (b) an event or circumstance which would be (with the lapse of time, the expiry of a grace  period, the giving of notice or the making of any determination under the Finance  Documents or any combination of them) an Event of Default.  “Defaulting Lender” means any Lender:  (a) which has failed to make its participation in a Loan available or has notified the Agent  or the Borrower (which has notified the Agent) that it will not make its participation in  a Loan available by the Drawdown Date in accordance with Clause 5.2 (Advance of  Loan);  (b) which has otherwise rescinded or repudiated a Finance Document;  (c) with respect to which an Insolvency Event has occurred and is continuing,  unless, in the case of paragraph (a) above:  (i) its failure to pay is caused by:  (A) administrative or technical error; or  (B) a Disruption Event; and  payment is made within three Business Days of its due date; or  (ii) the relevant Lender is disputing in good faith whether it is contractually obliged  to make the payment in question.  “Direction Letter” means the direction letter dated on or around the date of the Request from  the Borrower to the Agent.  “Disruption Event” means either or both of:  (a) a material disruption to those payment or communications systems or to those financial  markets which are, in each case, required to operate in order for payments to be made  in connection with the Facility (or otherwise in order for the transactions contemplated  by the Finance Documents to be carried out) which disruption is not caused by, and is  beyond the control of, any of the Parties; or  (b) the occurrence of any other event which results in a disruption (of a technical or  systems-related nature) to the treasury or payments operations of a Party preventing  that, or any other Party:  (i) from performing its payment obligations under the Finance Documents; or  (ii) from communicating with other Parties in accordance with the terms of the  Finance Documents,  and which (in either such case) is not caused by, and is beyond the control of, the Party whose  operations are disrupted.  

 

  6  EU-DOCS\31160993.15  “Distressed Debt Fund” means any trust, fund or other entity which is or would reasonably be  recognised or categorised as a “distressed debt fund” by reputable institutions which are  prominent participants in the financial markets. Distressed Debt Funds will be construed so as  to include the debt trading desk (or equivalent) operated by a department of a bank or financial  institution where that trading desk would be engaging in trading for or on behalf of an entity  which itself constitutes a Distressed Debt Fund.  “Distribution Companies” means Western Power Distribution (South West) plc, Western  Power Distribution (South Wales) plc, Western Power Distribution (West Midlands) plc and  Western Power Distribution (East Midlands) plc and any other distribution company which is  licensed by Ofgem or any successor regulatory body as a distribution network operator and  owned (whether directly or indirectly) by the Borrower from time to time.  “Drawdown Date” means the date on which the Loan is made.  “Eligible Institution” means any Lender or other bank, financial institution, trust, fund or other  entity selected by the Borrower.  “Environment” means humans, animals, plants and all other living organisms including the  ecological systems of which they form part and the following media:  (a) air (including, without limitation, air within natural or man-made structures, whether  above or below ground);  (b) water (including, without limitation, territorial, coastal and inland waters, water under  or within land and water in drains and sewers); and  (c) land (including, without limitation, land under water).  “Environmental Claim” means any claim, proceeding, formal notice or investigation by any  person in respect of any Environmental Law.  “Environmental Law” means any applicable law or regulation which relates to:  (a) the pollution or protection of the Environment;  (b) the conditions of the workplace; or  (c) the generation, handling, storage, use, release or spillage of any substance which, alone  or in combination with any other, is capable of causing harm to the Environment,  including, without limitation, any waste.  “EU CRD IV” means:  (a) Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26  June 2013 on prudential requirements for credit institutions and investment firms and  amending Regulation (EU) No 648/2012 (“CRR”); and  (b) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013  on access to the activity of credit institutions and the prudential supervision of credit  institutions and investment firms, amending Directive 2002/87/EC and repealing  Directives 2006/48/EC and 2006/49/EC (“CRD”).  “Event of Default” means an event or circumstance specified as such in Clause 21 (Events of  Default).  

 

  7  EU-DOCS\31160993.15  “Existing Lender” has the meaning given to that term in Clause 28.1 (Assignments and  transfers by the Lenders).   “Facility” means the term loan facility made available under this Agreement as described in  Clause 2.1 (The Facility).  “Facility Office” means the office(s) notified by a Lender to the Agent:  (a) on or before the date it becomes a Lender; or following that date,  (b) by not less than five Business Days’ notice,  as the office(s) through which it will perform its obligations under this Agreement.  “FATCA” means:  (a) sections 1471 to 1474 of the Code or any associated regulations;  (b) any treaty, law or regulation of any other jurisdiction, or relating to an  intergovernmental agreement between the US and any other jurisdiction, which (in  either case) facilitates the implementation of any law or regulation referred to in  paragraph (a) above; or  (c) any agreement pursuant to the implementation of any treaty, law or regulation referred  to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US  government or any governmental or taxation authority in any other jurisdiction.  “FATCA Application Date” means:  (a) in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code  (which relates to payments of interest and certain other payments from sources within  the US), 1 July 2014; or  (b) in relation to a “passthru payment” described in section 1471(d)(7) of the Code not  falling within paragraph (a) above, the first date from which such payment may become  subject to a deduction or withholding required by FATCA.   “FATCA Deduction” means a deduction or withholding from a payment under a Finance  Document required by FATCA.  “FATCA Exempt Party” means a Party that is entitled to receive payments free from any  FATCA Deduction.  “Final Maturity Date” means the date falling six months after the Drawdown Date.  “Finance Document” means:  (a) this Agreement;  (b) a Transfer Certificate;  (c) an Assignment Agreement;  (d) a Request; or  (e) any other document designated as such by the Agent and the Borrower.   “Finance Party” means the Agent or a Lender.   

 

  8  EU-DOCS\31160993.15  “Financial Indebtedness” means any indebtedness for or in respect of:  (a) moneys borrowed;  (b) any acceptance credit;  (c) any bond, note, debenture, loan stock or other similar instrument;  (d) any redeemable preference share;  (e) the amount of any liability in respect of any finance or capital lease which would, in  accordance with the Applicable Accounting Principles, be treated as a balance sheet  liability;  (f) receivables sold or discounted (otherwise than on a non-recourse basis);  (g) the acquisition cost of any asset to the extent payable after its acquisition or possession  by the party liable where the deferred payment is arranged primarily as a method of  raising finance or financing the acquisition of that asset;  (h) any derivative transaction protecting against or benefiting from fluctuations in any rate  or price (and, when calculating the value of any derivative transaction, only the marked  to market value (or, if any actual amount is due as a result of the termination or close- out of that derivative transaction, that amount) shall be taken into account);  (i) any other transaction (including any forward sale or purchase agreement) of a type not  referred to in any other paragraph of this definition which has the commercial effect of  a borrowing;  (j) any counter-indemnity obligation in respect of any guarantee, indemnity, bond, letter  of credit or any other instrument issued by a bank or financial institution; or  (k) any guarantee, indemnity or similar assurance against financial loss of any person in  respect of any item referred to in paragraphs (a) to (j) above.  “Funding Rate” means any individual rate notified by a Lender to the Agent pursuant to  paragraph (ii) of Clause 10.4(a) (Cost of funds).  “Group” means the Borrower and its Subsidiaries.  “Hedge Fund” means a pooled investment vehicle or similar entity that is commonly but not  exclusively referred to in the financial marketplace as a “hedge fund” and having the following  characteristics:  (a) it generally seeks consistent levels of returns regardless of market conditions;  (b) it generally uses complex strategies (which may include but not be limited to  short-selling, use of leverage and arbitrage and derivatives transactions) in order to  minimise market correlations with the goal of generating high returns (either in an  absolute sense or over a specified market benchmark); and  (c) it generally is open only to financially sophisticated investors.  Hedge Fund will be construed so as to include “vulture funds” and any pass-through or  structured finance vehicles in whatever legal form which are used by a Hedge Fund as part of  structuring an investment.  

 

  9  EU-DOCS\31160993.15  “Holding Company” means in relation to a person, any other person in respect of which it is a  Subsidiary.  “Impaired Agent” means the Agent at any time when:  (a) it has failed to make (or has notified a Party that it will not make) a payment required  to be made by it under the Finance Documents by the due date for payment;  (b) the Agent otherwise rescinds or repudiates a Finance Document;  (c) (if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a), (b) or (c)  of the definition of “Defaulting Lender”; or  (d) an Insolvency Event has occurred and is continuing with respect to the Agent;  unless, in the case of paragraph (a) above:  (i) its failure to pay is caused by:  (A) administrative or technical error; or  (B) a Disruption Event; and  payment is made within three Business Days of its due date; or  (ii) the Agent is disputing in good faith whether it is contractually obliged to make  the payment in question.  “Increased Cost” means:  (a) an additional or increased cost;  (b) a reduction in the rate of return under a Finance Document or on a Lender’s (or its  Affiliate’s) overall capital; or  (c) a reduction of an amount due and payable under any Finance Document,  which is incurred or suffered by a Lender or any of its Affiliates but only to the extent  attributable to that Lender having entered into any Finance Document or funding or performing  its obligations under any Finance Document.  “Infrastructure Equity Investment Fund” means an entity, a predominant portion of whose  business involves making equity investments in infrastructure assets (but excluding, for the  avoidance of doubt, any entity whose activities are solely the making, purchasing or investing  in loans or debt securities or purely passive equity investments in infrastructure and which is  an Affiliate or Related Fund of an Infrastructure Equity Investment Fund but is managed or  controlled independently from such Infrastructure Equity Investment Fund or has established  procedures which will prevent confidential information supplied to such entity from being  transmitted or otherwise made available to such Infrastructure Equity Investment Fund).  “Insolvency Event” in relation to a Finance Party means that the relevant Finance Party:  (a) is dissolved (other than pursuant to a consolidation, amalgamation or merger);  (b) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability  generally to pay its debts as they become due;  

 

  10  EU-DOCS\31160993.15  (c) makes a general assignment, arrangement or composition with or for the benefit of its  creditors;  (d) institutes or has instituted against it, by a regulator, supervisor or any similar official  with primary insolvency, rehabilitative or regulatory jurisdiction over it in the  jurisdiction of its incorporation or organisation or the jurisdiction of its head or home  office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief  under any bankruptcy or insolvency law or other similar law affecting creditors’ rights,  or a petition is presented for its winding up or liquidation by it or such regulator,  supervisor or similar official;  (e) has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy  or any other relief under any bankruptcy or insolvency law or other similar law affecting  creditors’ rights, or a petition is presented for its winding up or liquidation, and, in the  case of any such proceeding or petition instituted or presented against it, such  proceeding or petition is instituted or presented by a person or entity not described in  paragraph (d) above and:  (i) results in a judgment of insolvency or bankruptcy or the entry of an order for  relief or the making of an order for its winding up or liquidation; or  (ii) is not dismissed, discharged, stayed or restrained in each case within 30 days  of the institution or presentation thereof;  (f) has a resolution passed for its winding up, official management or liquidation (other  than pursuant to a consolidation, amalgamation or merger);  (g) seeks or becomes subject to the appointment of an administrator, provisional liquidator,  conservator, receiver, trustee, custodian or other similar official for it or for all or  substantially all its assets (other than, for so long as it is required by law or regulation  not to be publicly disclosed, any such appointment which is to be made, or is made, by  a person or entity described in paragraph (d) above);  (h) has a secured party take possession of all or substantially all its assets or has a distress,  execution, attachment, sequestration or other legal process levied, enforced or sued on  or against all or substantially all its assets and such secured party maintains possession,  or any such process is not dismissed, discharged, stayed or restrained, in each case  within 30 days thereafter;  (i) causes or is subject to any event with respect to it which, under the applicable laws of  any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a)  to (h) above; or  (j) takes any action in furtherance of, or indicating its consent to, approval of, or  acquiescence in, any of the foregoing acts.  “Interest Payable” has the meaning given to that term in Clause 19 (Financial Covenants).  “Interest Period” means, in respect of the Loan, each period determined under this Agreement  by reference to which interest on a Loan or an overdue amount is calculated.  “Interpolated Screen Rate” means, in relation to the Loan, the rate rounded to the same  number of decimal places as the two relevant Screen Rates which results from interpolating on  a linear basis between:  

 

  11  EU-DOCS\31160993.15  (a) the applicable Screen Rate for the longest period (for which that Screen Rate is  available) which is less than the Interest Period of the Loan; and  (b) the applicable Screen Rate for the shortest period (for which that Screen Rate is  available) which exceeds the Interest Period of the Loan,  each as of the Specified Time for Sterling.  “ITA” means the Income Tax Act 2007.  “Legal Reservations” means:  (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 Act 1980 and the Foreign Limitation  Periods Act 1984, 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;  (c) similar principles, rights and defences under the laws of any jurisdiction in which a  member of the Group or a Holding Company of the Borrower is incorporated; and  (d) any other matters which are set out as qualifications or reservations as to matters of law  of general application in any legal opinion provided under Schedule 2 (Conditions  Precedent).  “Lender” means:  (a) an Original Lender; or  (b) any person which becomes a Party as a “Lender” after the date of this Agreement in  accordance with Clause 28 (Changes to the Lenders),  which in each case has not ceased to be a Lender in accordance with the terms of this  Agreement.  “LIBOR” means, in relation to the Loan:  (a) the applicable Screen Rate as of the Specified Time for Sterling and for a period equal  in length to the Interest Period of the Loan; or  (b) as otherwise determined pursuant to Clause 10.1 (Unavailability of Screen Rates),  and if, in either case, that rate is less than zero, LIBOR shall be deemed to be zero.  “Licence” means:  (a) each electricity distribution licence made and treated as granted to a Distribution  Company under Section 6(1)(c) of the Act pursuant to a licensing scheme made by the  Secretary of State under Part II of Schedule 7 to the Utilities Act 2000 on 28 September,  2001; or  (b) any statutory amendment or replacement licence or licences granted pursuant to the  Utilities Act 2000 (or any equivalent legislation which supersedes the Utilities Act  

 

  12  EU-DOCS\31160993.15  2000) which permit a Distribution Company to distribute electricity in the area it is  certified to operate in.  “LMA” means the Loan Market Association.  “Loan” means the loan made or to be made under the Facility or the principal amount  outstanding for the time being of that loan.  “Majority Lenders” means two or more Lenders whose Commitments together aggregate  more than 662⁄3 per cent. of the Total Commitments (or, if the Total Commitments have been  reduced to zero, aggregated more than 662⁄3 per cent. of the Total Commitments immediately  prior to that reduction).   “Margin” means 1.00 per cent. per annum.  “Material Adverse Effect” means a material adverse effect on:  (a) the business, assets or financial condition of the Group taken as a whole;  (b) the ability of the Borrower to perform its payment obligations under the Finance  Documents; or  (c) the validity or enforceability of the Finance Documents or the rights or remedies of the  Finance Parties under any of the Finance Documents.  “New Lender” has the meaning given to that term in Clause 28.1 (Assignments and transfers  by the Lenders).  “Ofgem” means the Office of Gas and Electricity Markets.  “Original Financial Statements” means the audited consolidated financial statements of the  Borrower and each Distribution Company for the year ended 31 March 2020.  “Participating Member State” means any member state of the European Union that has the  euro as its lawful currency in accordance with the legislation of the European Union relating to  Economic and Monetary Union.  “Party” means a party to this Agreement.  “Pensions Regulator” means the body corporate called the Pensions Regulator established  under Part I of the Pensions Act 2004.  “Permitted Acquisition” means the acquisition by any member of the Group of an entity:  (a) which carries out a Permitted Business;   (b) which is incorporated or established in England or the European Union; and  (c) in respect of which, on or prior to the closing date of the acquisition, the Borrower has  delivered a certificate to the Agent confirming that, taking into account the  consideration payable in respect of the acquisition (including any associated costs and  expenses and assuming the target entity (and its Subsidiaries) formed part of the Group  as at the Calculation Date falling immediately prior to the closing date of such  acquisition), no Event of Default would have occurred under Clause 19.3 (Interest  Cover) or Clause 19.4 (Asset Cover), in each case as at the Calculation Date falling  immediately prior to the closing date of such acquisition.  

 

  13  EU-DOCS\31160993.15  “Permitted Business” means:  (a) a business that:  (i) possesses characteristics similar to the regulated business of a distribution  network operator, as carried out by any of the Distribution Companies (a “DNO  Business”);  (ii) provides facilities for and connected with a DNO Business;  (iii) is complementary or ancillary to the operation of a DNO Business or any other  business already conducted by an entity within the Group; or   (iv) provides services to any member of the Group which are currently provided by  third parties; or  (b) any other business approved or consented to by the Agent.  “PPL Corporation” means PPL Corporation, a company incorporated in Pennsylvania, US,  whose head office is at 2 N Ninth Street, Allentown, PA18101, Pennsylvania, US, and whose  registered number is 2570936.  “PPL Group” means PPL Corporation and any of its Subsidiaries.  “Qualifying Lender” has the meaning given to it in Clause 11 (Tax gross-up and Indemnities).  “Quotation Day” means, in relation to any period for which an interest rate is to be determined,  the first day of that period, unless market practice differs in the Relevant Market, in which case  the Quotation Day will be determined by the Agent in accordance with market practice in the  Relevant Market (and if quotations would normally be given on more than one day, the  Quotation Day will be the last of those days).  “Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four  decimal places) as supplied to the Agent at its request by the Reference Banks:  (a) if:  (i) the Reference Bank is a contributor to the Screen Rate; and  (ii) it consists of a single figure,  the rate (applied to the relevant Reference Bank and the relevant currency and period)  which contributors to the Screen Rate are asked to submit to the relevant administrator;  (b) in any other case, the rate at which the relevant Reference Bank could fund itself in  Sterling for the relevant period with reference to the unsecured wholesale funding  market.  “Reference Banks” means the principal London offices of such banks or financial institutions  as are appointed by the Agent in consultation with the Borrower and with the consent of any  such bank or financial institution so appointed.   “Regulatory Asset Value” has the meaning given to that term in Clause 19 (Financial  Covenants).  “Related Fund” in relation to a fund (the “first fund”), means a fund which is managed or  advised by the same investment manager or investment adviser as the first fund or, if it is  

 

  14  EU-DOCS\31160993.15  managed by a different investment manager or investment adviser, a fund whose investment  manager or investment adviser is an Affiliate of the investment manager or investment adviser  of the first fund.  “Relevant Market” means the London interbank market.  “Repeating Representations” means the representations which are deemed, pursuant to Clause  17.19(b) (Times for making representations) to be repeated under this Agreement.  “Representative” means any delegate, agent, manager, administrator, nominee, attorney,  trustee or custodian.  “Request” means a request for the Loan, substantially in the form set out in Schedule 3  (Request).  “Restricted Party” means a person that is:  (a) listed on, or owned or controlled (as such terms are defined by the relevant Sanctions  Authority) by a person or persons listed on, or acting on behalf of a person listed on,  any Sanctions List; or  (b) incorporated under the laws of, or owned or (directly or indirectly) controlled by, or  acting on behalf of, a person or persons located in or organized under the laws of a  country or territory that is the target of country-wide or territory-wide Sanctions.  “Sanctions” means the economic, trade or financial sanctions laws, regulations or embargoes  administered, enacted or enforced by a Sanctions Authority.  “Sanctions Authorities” means, together:  (a) the US government;  (b) the Security Council of the United Nations;  (c) Her Majesty’s Treasury of the United Kingdom;  (d) the European Union;   (e) the government of Canada; or  (f) the government institutions of any of the above, to the extent the economic, trade or  financial sanctions laws, regulations and/or embargos are publicly available.  “Sanctions List” means the “Specially Designated Nationals and Blocked Persons” list  maintained by OFAC, or any similar list maintained by, or public announcement of Sanctions  designation made by, any of the Sanctions Authorities.   “Screen Rate” means the London interbank offered rate administered by ICE Benchmark  Administration Limited (or any other person which takes over the administration of that rate)  for Sterling and for the relevant period displayed on page LIBOR01 of the Thomson Reuters  screen (or any replacement Thomson Reuters page which displays that rate) or on the  appropriate page of such other information service which publishes that rate from time to time  in place of Thomson Reuters. If such page or service ceases to be available, the Agent may  specify another page or service displaying the relevant rate after consultation with the Borrower.  “Secretary of State” means the Secretary of State for Business, Energy and Industrial Strategy.  

 

  15  EU-DOCS\31160993.15  “Security Interest” means any mortgage, pledge, lien, charge, assignment, hypothecation or  security interest or any other agreement or arrangement having a similar effect.  “Specified Time” means a day or time determined in accordance with Schedule 7 (Timetables).  “Subordination Deed” means a document substantially in the form set out in Schedule 8 (Form  of Subordination Deed) duly completed and executed by the parties thereto.   “Subsidiary” means:  (a) a subsidiary within the meaning of section 1159 of the Companies Act 2006; and  (b) unless the context otherwise requires, a subsidiary undertaking within the meaning of  section 1162 of the Companies Act 2006.  “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).  “Tax Credit” has the meaning given to it in Clause 11 (Tax gross-up and Indemnities).  “Tax Deduction” has the meaning given to it in Clause 11 (Tax gross-up and Indemnities).  “Tax Payment” means either the increase in a payment made by the Borrower to a Lender  under Clause 11.2 (Tax gross-up) or a payment under Clause 11.3 (Tax indemnity).  “Total Commitments” means the aggregate of the Commitments, being £350,000,000 at the  date of this Agreement.  “Total Net Debt” has the meaning given to that term in Clause 19 (Financial Covenants).  “Transfer Certificate” means a certificate, substantially in the form of Schedule 4 (Form of  Transfer Certificate) or any other form agreed between the Agent and the Borrower.  “Transfer Date” means, in relation to an assignment or transfer, the later of:   (a) the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer  Certificate; and  (b) the date on which the Agent executes the relevant Assignment Agreement or Transfer  Certificate.  “Treaty Lender” has the meaning given to it in Clause 11 (Tax gross-up and Indemnities).  “UK” means the United Kingdom.  “UK CRD IV” means:  (a) CRR as it forms part of domestic law of the United Kingdom by virtue of the European  Union (Withdrawal) Act 2018 (the “Withdrawal Act”);  (b) the law of the United Kingdom or any part of it, which immediately before IP  completion day (as defined in the European Union (Withdrawal Agreement) Act 2020  (“WAA”)) implemented CRD and its implementing measures; and  

 

  16  EU-DOCS\31160993.15  (c) direct EU legislation (as defined in the Withdrawal Act), which immediately before IP  completion day (as defined in the WAA) implemented EU CRD IV as it forms part of  domestic law of the United Kingdom by virtue of the Withdrawal Act.  “Unpaid Sum” means any sum due and payable but unpaid by the Borrower under the Finance  Documents.  “US” means the United States of America.  “VAT” means:  (a) any value added tax imposed by the Value Added Tax Act 1994;   (b) any tax imposed in compliance with the Council Directive of 28 November 2006 on the  common system of value added tax (EC Directive 2006/112); and  (c) any other tax of a similar nature, whether imposed in the United Kingdom or a member  state of the European Union in substitution for, or levied in addition to, such tax referred  to in paragraphs (a) or (b) above, or imposed elsewhere.  1.2 Construction  (a) In this Agreement, unless the contrary intention appears, a reference to:  (i) an amendment includes a supplement, novation, restatement or re- enactment  and amended will be construed accordingly;  (ii) assets includes present and future properties, revenues and rights of every  description;  (iii) an authorisation includes an authorisation, consent, approval, resolution,  licence, exemption, filing, registration or notarisation;  (iv) disposal means a sale, transfer, grant, lease or other disposal, whether  voluntary or involuntary, and dispose will be construed accordingly;  (v) a group of Lenders includes all the Lenders;  (vi) indebtedness includes any obligation (whether incurred as principal or as  surety) for the payment or repayment of money;  (vii) know your customer requirements are the identification checks that a  Finance Party requests in order to meet its obligations under any applicable law  or regulation to identify a person who is (or is to become) its customer;  (viii) a person includes any individual, company, corporation, unincorporated  association or body (including a partnership, trust, joint venture or consortium),  government, state, agency, organisation or other entity whether or not having  separate legal personality;  (ix) a regulation includes any regulation, rule, official directive, request or  guideline (whether or not having the force of law but, if not having the force of  law, being of a type with which any person to which it applies is accustomed  to comply) of any governmental, inter-governmental or supranational body,  agency, department or regulatory, self-regulatory or other authority or  organisation;  

 

  17  EU-DOCS\31160993.15  (x) the winding-up of a person includes the administration, dissolution or  liquidation or other like process of that person, any composition or arrangement  with the creditors, amalgamation, reconstruction, reorganisation or  consolidation pursuant to Part XXVI of the Companies Act 2006 proposed or  carried out in respect of that person or a company voluntary arrangement  pursuant to the Insolvency Act 1986 carried out or proposed in respect of that  person;  (xi) a currency is a reference to the lawful currency for the time being of the relevant  country;  (xii) a Default or an Event of Default being outstanding means that it has not been  remedied or waived;  (xiii) a provision of law is a reference to that provision as extended, applied, amended  or re-enacted from time to time and includes any subordinate legislation;  (xiv) a Clause, a paragraph or a Schedule is a reference to a clause or a paragraph of,  or a schedule to, this Agreement;  (xv) a person includes its successors in title, permitted assigns and permitted  transferees;  (xvi) a Finance Document or another document is a reference to that Finance  Document or other document as amended; and  (xvii) a time of day is a reference to London time.  (b) Unless the contrary intention appears, a reference to a month or months is a reference  to a period starting on one day in a calendar month and ending on the numerically  corresponding day in the next calendar month or the calendar month in which it is to  end, except that:  (i) if the numerically corresponding day is not a Business Day, the period will end  on the next Business Day in that month (if there is one) or the preceding  Business Day (if there is not);  (ii) if there is no numerically corresponding day in that month, that period will end  on the last Business Day in that month; and  (iii) notwithstanding paragraph (a) above, a period which commences on the last  Business Day of a month will end on the last Business Day in the next month  or the calendar month in which it is to end, as appropriate.  The above rules will only apply to the last month of any period.  (c) Unless the contrary intention appears:  (i) a reference to a Party will not include that Party if it has ceased to be a Party  under this Agreement;  (ii) a word or expression used in any other Finance Document or in any notice  given in connection with any Finance Document has the same meaning in that  Finance Document or notice as in this Agreement; and  

 

  18  EU-DOCS\31160993.15  (iii) any obligation of the Borrower under the Finance Documents which is not a  payment obligation remains in force for so long as any payment obligation of  the Borrower is or may be outstanding under the Finance Documents.  (d) The headings in this Agreement do not affect its interpretation.  (e) The determination of the extent to which a rate is “for a period equal in length” to an  Interest Period shall disregard any inconsistency arising from the last day of that Interest  Period being determined pursuant to the terms of this Agreement.  1.3 Third Party Rights  (a) Unless expressly provided to the contrary in a Finance Document, a person who is not  a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the “Third  Parties Act”) to enforce or to enjoy the benefit of any term of this Agreement.  (b) Notwithstanding any term of any Finance Document, the consent of any person who is  not a Party is not required to rescind or vary this Agreement at any time.  1.4 Currency symbols and definitions  “£” and “Sterling” denote the lawful currency of the United Kingdom.  2. THE FACILITY  2.1 The Facility  Subject to the terms of this Agreement, the Lenders make available to the Borrower a Sterling  term facility in an aggregate amount which is equal to the Total Commitments.  2.2 Finance Parties’ rights and obligations.   (a) The obligations of each Finance Party under the Finance Documents are several. Failure  by a Finance Party to perform its obligations under the Finance Documents does not  affect the obligations of any other Party under the Finance Documents. No Finance  Party is responsible for the obligations of any other Finance Party under the Finance  Documents.  (b) The rights of each Finance Party under or in connection with the Finance Documents  are separate and independent rights and any debt arising under the Finance Documents  to a Finance Party from the Borrower is a separate and independent debt in respect of  which a Finance Party shall be entitled to enforce its rights in accordance with  paragraph (c) below. The rights of each Finance Party include any debt owing to that  Finance Party under the Finance Documents and, for the avoidance of doubt, any part  of a Loan or any other amount owed by the Borrower which relates to a Finance Party’s  participation in the Facility or its role under a Finance Document (including any such  amount payable to the Agent on its behalf) is a debt owing to that Finance Party by the  Borrower.  (c) A Finance Party may, except as specifically provided in the Finance Documents,  separately enforce its rights under or in connection with the Finance Documents.  3. PURPOSE  3.1 Purpose  The Borrower shall apply all amounts borrowed by it under the Facility towards:  

 

  19  EU-DOCS\31160993.15  (a) the repayment of existing Financial Indebtedness of the Borrower; and  (b) its general corporate purposes.  3.2 No obligation to monitor  No Finance Party is bound to monitor or verify the application of any amount borrowed  pursuant to this Agreement.  4. CONDITIONS PRECEDENT  4.1 Conditions precedent documents  (a) The Lenders will only be obliged to comply with Clause 5.2 (Advance of Loan) if, on  or before the Drawdown Date, the Agent has received all of the documents and evidence  set out in Schedule 2 (Conditions Precedent) in form and substance satisfactory to it  (acting on the instructions of all the Lenders, acting reasonably) or, in respect of any  such document or evidence, has notified the Borrower that it has waived the  requirement for such document or evidence to be delivered. The Agent shall notify the  Borrower and the Lenders promptly upon being so satisfied, or such waiver being  given.  (b) Other than to the extent that the Majority Lenders notify the Agent in writing to the  contrary before the Agent gives the notification described in paragraph (a) above, the  Lenders authorise (but do not require) the Agent to give that notification. The Agent  shall not be liable for any damages, costs or losses whatsoever as a result of giving any  such notification.   4.2 Further conditions precedent  The Lenders will only be obliged to comply with Clause 5.2 (Advance of Loan) if, on the date  of the Request and the Drawdown Date:  (a) the Repeating Representations are correct in all material respects; and  (b) no Event of Default is outstanding or would result from the Loan.  4.3 Maximum number  A Request may not be given if, as a result, there would be more than one Loan outstanding.  5. DRAWDOWN  5.1 Giving of a Request  The Parties acknowledge the Request submitted by the Borrower to the Agent on 24 February  2021 (the “February Request”) and, on and from the date of this Agreement, agree that the  February Request shall become irrevocable.     5.2 Advance of Loan  (a) If the conditions set out in this Agreement have been met, each Lender must make its  participation in the Loan available through its Facility Office by no later than 2.00 pm  on the Drawdown Date.  

 

  20  EU-DOCS\31160993.15  (b) The amount of each Lender’s participation in the Loan will be equal to the proportion  borne by its Available Commitment to the Available Facility immediately prior to  making that Loan.   (c) The Agent shall notify each Lender of the amount of each Loan and the amount of its  participation in that Loan by the Specified Time (or such other time as agreed between  the Agent and the Lenders).   6. REPAYMENT  6.1 Repayment of Loans  (a) The Borrower must repay the Loan in full on the Final Maturity Date.  (b) The Borrower may not re-borrow any part of the Facility which is repaid.  7. PREPAYMENT AND CANCELLATION  7.1 Mandatory prepayment - illegality  If, in any applicable jurisdiction, it becomes unlawful for any Lender to perform any of its  obligations under a Finance Document or to fund or maintain its share in the Loan:  (a) that Lender shall promptly notify the Agent upon becoming aware of that event;  (b) upon the Agent notifying the Borrower, the Available Commitment of that Lender will  be immediately cancelled; and  (c) to the extent that the relevant Lender’s participation has not been transferred pursuant  to Clause 7.6 (Right of repayment and cancellation in relation to a single Lender), the  Borrower shall repay that Lender’s participation in the Loan on the last day of the  Interest Period for the Loan occurring after the Agent has notified the Borrower or, if  earlier, the date specified by that Lender in the notice delivered to the Agent (being no  earlier than the last day of any applicable grace period permitted by law) and that  Lender’s corresponding Commitment shall be immediately cancelled in the amount of  the participations repaid.  7.2 Change of Control  (a) Upon the occurrence of a Change of Control, the Facility will be immediately cancelled  and shall immediately cease to be available for further utilisation and the Loan, accrued  interest and all other amounts under the Finance Documents shall become immediately  due and payable.  (b) Any prepayment made pursuant to this Clause 7.2 shall be applied pro rata to each  Lender’s participation in the Loan.  (c) For the purposes of this Clause 7.2, a “Change of Control” means any person  (whether alone or together with any associated person or persons) gaining control  of the Borrower (for these purposes “associated person” means, in relation to any  person, a person who is (i) “acting in concert” (as defined in the City Code on  Takeovers and Mergers) with that person or (ii) a “connected person” (as defined  in section 1122 of the CTA 2010) of that person and “control” means the relevant  person satisfies any of the criteria set out in paragraphs (1)(a) to (c) of Section 1159  of the Companies Act 2006), except to the extent of a group reorganisation where  the Borrower continues to be controlled directly or indirectly by PPL Corporation.  

 

  21  EU-DOCS\31160993.15  7.3 Voluntary prepayment  (a) The Borrower may, by giving not less than three Business Days’ prior written notice to  the Agent, prepay the Loan at any time in whole or in part.  (b) A prepayment of part of the Loan must be by an amount that reduces the amount of the  Loan by a minimum amount of £5,000,000 and an integral multiple of £1,000,000.  (c) Any prepayment made pursuant to this Clause 7.3 shall be applied pro rata to each  Lender’s participation in the Loan.   7.4 Automatic cancellation  The Available Commitments will be automatically cancelled at 11.59 p.m. on the Bond  Redemption Date.  7.5 Voluntary cancellation  (a) The Borrower may, by giving not less than three Business Days’ prior written notice to  the Agent, cancel the unutilised amount of the Total Commitments in whole or in part.  (b) Partial cancellation of the Total Commitments must be by an amount that reduces the  amount of the Loan by a minimum amount of £5,000,000 and an integral multiple of  £1,000,000.  (c) Any cancellation under this Clause 7.5 shall reduce the Commitments of the Lenders  rateably.  7.6 Right of repayment and cancellation in relation to a single Lender  (a) If:  (i) any sum payable to any Lender by the Borrower is required to be increased  under Clause 11.2(c) (Tax gross-up);  (ii) any Lender gives notice under Clause 10.3 (Market disruption); or  (iii) any Lender claims indemnification from the Borrower under Clause 11.3 (Tax  indemnity) or Clause 12 (Increased costs),  the Borrower may, while the circumstance giving rise to the requirement for that  increase or indemnification continues, give the Agent notice of cancellation of the  Commitment(s) of that Lender and its intention to procure the repayment of that  Lender’s participation in the Loan.  (b) On receipt of a notice referred to in paragraph (a) above in relation to a Lender, the  Available Commitment of that Lender shall be immediately reduced to zero.  (c) On the last day of each Interest Period which ends after the Borrower has given notice  under paragraph (a) above (or, if earlier, the date specified by the Borrower in that  notice), the Borrower shall repay that Lender’s participation in the Loan together with  all interest and other amounts accrued under the Finance Documents and that Lender’s  corresponding Commitment shall be immediately cancelled.  

 

  22  EU-DOCS\31160993.15  7.7 Right of cancellation in relation to a Defaulting Lender  (a) If any Lender becomes a Defaulting Lender, the Borrower may, at any time whilst the  relevant Lender continues to be a Defaulting Lender, give the Agent five Business  Days’ notice of cancellation of each Available Commitment of that Lender.  (b) On the notice referred to in paragraph (a) above becoming effective, each Available  Commitment of the Defaulting Lender shall immediately be reduced to zero.  (c) The Agent shall as soon as practicable after receipt of a notice referred to in paragraph  (a) above, notify all the Lenders.  7.8 No re-borrowing of Loans  The Borrower may not re-borrow any part of the Facility which is prepaid.  7.9 Miscellaneous provisions  (a) Any notice of prepayment and/or cancellation under this Agreement is irrevocable and  must specify the date or dates upon which the relevant cancellation or prepayment is to  be made and the amount of that cancellation or prepayment.   (b) All prepayments under this Agreement must be made with accrued interest on the  amount prepaid. No premium or penalty is payable in respect of any prepayment except  for Break Costs.  (c) No amount of the Total Commitments cancelled under this Agreement may  subsequently be reinstated.  (d) If all or part of a Lender’s participation in the Loan is repaid or prepaid, an amount of  that Lender’s Commitment (equal to the amount of the participation which is repaid or  prepaid) will be deemed to be cancelled on the date of repayment or prepayment.  8. INTEREST  8.1 Calculation of interest  The rate of interest on the Loan for each Interest Period is the percentage rate per annum equal  to the aggregate of the applicable:  (a) Margin; and  (b) LIBOR.  8.2 Payment of interest  The Borrower must pay accrued interest on the Loan made to it on the last day of each Interest  Period.  8.3 Interest on overdue amounts  (a) If the Borrower fails to pay any amount payable by it under the Finance Documents on  its due date, interest shall accrue on the overdue amount from its due date up to the date  of actual payment, both before, on and after judgment at a rate which is one per cent.  per annum higher than the rate which would have been payable if the overdue amount  had, during the period of non-payment, constituted a Loan in the currency of the  overdue amount for successive Interest Periods of any duration of up to three months  

 

  23  EU-DOCS\31160993.15  selected by the Agent (acting reasonably). Any interest accruing under this Clause (a)  shall be immediately payable by the Borrower on demand by the Agent.  (b) Notwithstanding Clause (a) above, if the overdue amount is a principal amount of a  Loan and becomes due and payable prior to the last day of its current Interest Period,  then:  (i) the first Interest Period for that overdue amount will be the unexpired portion  of that Interest Period; and  (ii) the rate of interest on the overdue amount for that first Interest Period will be  one per cent. per annum above the rate then payable on that Loan.  (c) After the expiry of the first Interest Period for that overdue amount, the rate on the  overdue amount will be calculated in accordance with Clause (a) above.  (d) Interest (if unpaid) on an overdue amount will be compounded with that overdue  amount at the end of each of its Interest Periods but will remain immediately due and  payable.  8.4 Notification of rates of interest  (a) The Agent must promptly notify the Lenders and the Borrower of the determination of  a rate of interest under this Agreement.  (b) The Agent must promptly notify the Borrower of each Funding Rate relating to the  Loan.  9. INTEREST PERIODS  9.1 Interest Periods  (a) Each Interest Period for the Loan will be one month.   (b) An Interest Period for a Loan shall start on the Drawdown Date or (if already made) on  the last day of its preceding Interest Period.  9.2 No overrunning the Final Maturity Date  If an Interest Period would otherwise overrun the Final Maturity Date, it will be shortened so  that it ends on such Final Maturity Date.  10. CHANGES TO THE CALCULATION OF INTEREST  10.1 Unavailability of Screen Rate  (a) Interpolated Screen Rate: If no Screen Rate is available for LIBOR for the Interest  Period of the Loan, the applicable LIBOR shall be the Interpolated Screen Rate for a  period equal in length to the Interest Period of the Loan.  (b) Reference Bank Rate: If no Screen Rate is available for LIBOR for the Interest Period  of the Loan and it is not possible to calculate the Interpolated Screen Rate, the  applicable LIBOR shall be the Reference Bank Rate as of the Specified Time for a  period equal in length to the Interest Period of the Loan.   

 

  24  EU-DOCS\31160993.15  (c) Cost of funds: If Clause (b) above applies but no Reference Bank Rate is available for  the relevant Interest Period, there shall be no LIBOR for the Loan and Clause 10.4 (Cost  of funds) shall apply to the Loan for that Interest Period.  10.2 Calculation of Reference Bank Rate  (a) Subject to Clause (b) below, if LIBOR is to be determined on the basis of a Reference  Bank Rate but a Reference Bank does not supply a quotation by the Specified Time,  the Reference Bank Rate shall be calculated on the basis of the quotations of the  remaining Reference Bank Rates.  (b) If at or about noon on the Quotation Day, none or only one of the Reference Banks  supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest  Period.  10.3 Market disruption  If, before close of business on the Quotation Day for the relevant Interest Period, the Agent  receives notifications from a Lender or Lenders (whose participations in the Loan exceed 50  per cent. of the Loan) that the cost to it of funding its participation in that Loan from whatever  source it may reasonably select would be in excess of LIBOR then Clause 10.4 (Cost of funds)  shall apply to the Loan for the relevant Interest Period.  10.4 Cost of funds  (a) If this Clause 10.4 applies, the rate of interest on each Lender’s share of the Loan for  the relevant Interest Period shall be the percentage rate per annum which is the sum of:  (i) the Margin; and  (ii) the weighted average of the rates notified to the Agent by each Lender as soon  as practicable and in any event by close of business on the date falling one  Business Day after the quotation date (or, if earlier, on the date falling one  Business Day before the date on which interest is due to be paid in respect of  that Interest Period), to be that which expresses as a percentage rate per annum  the cost to the relevant Lender of funding its participation in the Loan from  whatever source it may reasonably select.  (b) If this Clause 10.4 applies and the Agent or the Borrower so requires, the Agent and the  Borrower 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.  (c) Any alternative basis agreed pursuant to Clause (b) above shall be binding on all Parties.  (d) If this Clause 10.4 applies pursuant to Clause 10.3 (Market disruption) and:  (i) a Lender’s Funding Rate is less than LIBOR; or  (ii) a Lender does not supply a quotation by the time specified in paragraph (ii) of  Clause (a) above,  the cost to that Lender of funding its participation in the Loan for that Interest Period  shall be deemed, for the purposes of paragraph (ii) of Clause (a) above, to be LIBOR.  10.5 Notification to Borrower  

 

  25  EU-DOCS\31160993.15  If Clause 10.4 (Cost of funds) applies, the Agent shall, as soon as is practicable, notify the  Borrower.  10.6 Break Costs  (a) The Borrower shall, within five Business Days of demand by a Lender, pay to that  Lender its Break Costs attributable to all or any part of the Loan or any Unpaid Sum  being paid by the Borrower on a day other than the last day of an Interest Period for the  Loan or Unpaid Sum.  (b) Each Lender shall, as soon as reasonably practicable after a demand by the Agent,  provide a certificate confirming the amount of its Break Costs for any Interest Period  in which they accrue.  11. TAX GROSS-UP AND INDEMNITIES  11.1 Definitions  (a) In this Agreement:  “Borrower DTTP Filing” means an HM Revenue & Customs’ Form DTTP2 duly completed  and filed by the Borrower, which:  (a) where it relates to a Treaty Lender that is an Original Lender, contains the scheme  reference number and jurisdiction of tax residence stated opposite that Original  Lender’s name in Schedule 1 (The Original Lenders) and is filed with HM Revenue &  Customs within 30 days of the date of this Agreement; or  (b) where it relates to a Treaty Lender that is not an Original Lender, contains the scheme  reference number and jurisdiction of tax residence stated in respect of that Lender in  the documentation which it executes on becoming a Party as a Lender is filed with HM  Revenue & Customs within 30 days of that date.   “Protected Party” means a Lender, to the extent such Lender 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) a Lender which is beneficially entitled to interest payable to it in respect of an advance  under a Finance Document and is:  (i) a Lender:  (A) which is a bank (as defined for the purpose of section 879 of the ITA)  making an advance under a Finance Document and which is within the  charge to United Kingdom corporation tax as respects any payments of  interest made in respect of that advance or would be within such charge  as respects such payment apart from section 18A of the CTA 2009; or  (B) in respect of an advance made under a Finance Document by a person  that was a bank (as defined for the purpose of section 879 of the ITA)  at the time that that advance was made, and which is within the charge  to United Kingdom corporation tax as respects any payments of interest  made in respect of that advance; or  

 

  26  EU-DOCS\31160993.15  (ii) a Lender which is:  (A) a company resident in the United Kingdom for United Kingdom tax  purposes;  (B) a partnership each member of which is:  (1) a company so resident in the United Kingdom; or  (2) a company not so resident in the United Kingdom which carries  on a trade in the United Kingdom through a permanent  establishment and which brings into account in computing its  chargeable profits (within the meaning of section 19 of the  CTA 2009) the whole of any share of interest payable in  respect of that advance that falls to it by reason of Part 17 of  the CTA 2009; or  (C) 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 (within the meaning of section 19 of  the CTA 2009) of that company; or  (iii) a Treaty Lender; or  (b) a Lender which is a building society (as defined for the purpose of section 880 of the  ITA) making an advance under a Finance Document.  “Tax Confirmation” means a confirmation by a Lender that the person beneficially entitled to  interest payable to that Lender in respect of an advance under a Finance Document is either:  (a) a company resident in the United Kingdom for United Kingdom tax purposes;  (b) a partnership each member of which is:  (A) a company so resident in the United Kingdom; or  (B) a company not so resident in the United Kingdom which carries on a  trade in the United Kingdom through a permanent establishment and  which brings into account in computing its chargeable profits (within  the meaning of section 19 of the CTA 2009) the whole of any share of  interest payable in respect of that advance that falls to it by reason of  Part 17 of the CTA 2009; or  (c) 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 (within the meaning of section 19 of the CTA 2009) of that company.  “Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.  “Tax Deduction” means a deduction or withholding for or on account of Tax from a payment  under a Finance Document, other than a FATCA Deduction.  “Treaty Lender” means a Lender which:  (a) is treated as a resident of a Treaty State for the purposes of the Treaty;  

 

  27  EU-DOCS\31160993.15  (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; and  (c) meets all other conditions which must be met under the Treaty for residents of such  Treaty State to obtain full exemption from tax on interest imposed by the United  Kingdom, including the completion of any necessary procedural formalities.  “Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”) with the  United Kingdom which makes provision for full exemption from tax imposed by the United  Kingdom on interest.  “UK Non-Bank Lender” means a Lender which is not an Original Lender and which gives a  Tax Confirmation in the documentation which it executes on becoming a Party as a Lender.  Unless a contrary indication appears, in this Clause 11, a reference to “determines” or  “determined” means a determination made in the absolute discretion of the person making the  determination, acting in good faith.  11.2 Tax gross-up  (a) The Borrower shall make all payments to be made by it without any Tax Deduction,  unless a Tax Deduction is required by law.  (b) The Borrower shall promptly upon becoming aware that it must make a Tax Deduction  (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent  accordingly. Similarly, each Lender 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 it shall notify the Borrower.   (c) If a Tax Deduction is required by law to be made by the Borrower, the amount of the  payment due from the Borrower shall be increased to an amount which (after making  any Tax Deduction) leaves an amount equal to the payment which would have been  due if no Tax Deduction had been required.  (d) A payment shall not be increased under Clause (c) above by reason of a Tax Deduction  on account of Tax imposed by the United Kingdom, if on the date on which the payment  falls due:  (i) the payment could have been made to the relevant Lender without a Tax  Deduction if the relevant Lender had been 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 published concession of any relevant taxing authority; or  (ii) the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii)  of the definition of Qualifying Lender and:  (A) an officer of HM Revenue & Customs has given (and not revoked) a  direction (a “Direction”) under section 931 of the ITA which relates to  the payment and such Lender has received from the Borrower a  certified copy of that Direction; and  (B) the payment could have been made to the relevant Lender without any  Tax Deduction if that Direction had not been made; or  

 

  28  EU-DOCS\31160993.15  (iii) the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii)  of the definition of Qualifying Lender and:  (A) the relevant Lender has not given a Tax Confirmation to the Borrower;  and  (B) the payment could have been made to the relevant Lender without any  Tax Deduction if the relevant Lender had given a Tax Confirmation to  the Borrower on the basis that the Tax Confirmation would have  enabled the Borrower to have formed a reasonable belief that the  payment was an “excepted payment” for the purpose of section 930 of  the ITA; or  (iv) the relevant Lender is a Treaty Lender (or would be a Treaty Lender on the  completion of any procedural formalities) and the payment could have been  made to that Lender without the Tax Deduction had that Lender complied with  its obligations under Clause (g) below.  (e) If the Borrower is required to make a Tax Deduction, the Borrower shall make that Tax  Deduction and any payment required in connection with that Tax Deduction within the  time allowed and in the minimum amount required by law.  (f) Within thirty days of making either a Tax Deduction or any payment required in  connection with that Tax Deduction, the Borrower making that Tax Deduction shall  deliver to the Agent for the Lender entitled to the payment a statement under Section  975 of the ITA, or other evidence reasonably satisfactory to that Lender that the Tax  Deduction has been made or (as applicable) any appropriate payment paid to the  relevant taxing authority.  (g)    (i) Subject to paragraph (ii) below, a Treaty Lender (or a Lender that would be a  Treaty Lender on the completion of any procedural formalities) and the  Borrower shall co-operate in completing any procedural formalities necessary  for the Borrower to obtain authorisation to make payments under the Finance  Documents without a Tax Deduction.  (ii) A Treaty Lender (or a Lender that would be a Treaty Lender on the  completion of any procedural formalities) which is:  (A) an Original Lender shall, if it holds a passport under the HMRC DT  Treaty Passport scheme and wishes that scheme to apply to this  Agreement, confirm its scheme reference number and its jurisdiction  of tax residence opposite its name in Schedule 1 (The Original  Lenders);  (B) not an Original Lender shall, if it holds a passport under the HMRC DT  Treaty Passport scheme and wishes that scheme to apply to this  Agreement, shall confirm its scheme reference number and its  jurisdiction of tax residence in the documentation which it executes on  becoming a Party as a Lender,  and, having done so, the Lender shall be under no obligation pursuant to  paragraph (i) above.   

 

  29  EU-DOCS\31160993.15  (h) If a Lender has confirmed its scheme reference number and its jurisdiction of tax  residence in accordance with paragraph (ii) of Clause (g) above and:  (i) the Borrower has not made a Borrower DTTP Filing in respect of that Lender;  or  (ii) the Borrower has made a Borrower DTTP Filing in respect of that Lender but:  (A) that Borrower DTTP Filing has been rejected by HM Revenue &  Customs;   (B) HM Revenue & Customs has not given the Borrower authority to make  payments to that Lender without a Tax Deduction within 60 days of the  date of the Borrower DTTP Filing; or  (C) HM Revenue & Customs has given the Borrower authority to make  payments to that Lender without a Tax Deduction but such authority  has subsequently been revoked or expired,  and in each case, the Borrower has notified that Lender in writing, that Lender  and the Borrower shall co-operate in completing any additional procedural  formalities necessary for the Borrower to obtain authorisation to make  payments under the Finance Documents without a Tax Deduction.  (i) If a Lender has not confirmed its scheme reference number and jurisdiction of tax  residence in accordance with paragraph (ii) of Clause (g), the Borrower shall not make  a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty  Passport scheme in respect of the relevant Lender’s Commitment(s) or its participation  in the Loan unless the relevant Lender otherwise agrees.  (j) The Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of  that Borrower DTTP Filing to the Agent for delivery to the relevant Lender.  (k) A UK Non-Bank Lender shall promptly notify the Borrower if there is any change in  the position from that set out in the Tax Confirmation.  11.3 Tax indemnity  (a) The Borrower shall, within five Business Days of demand by the Agent, pay to a  Protected Party an amount equal to the loss, liability or cost which that Protected Party  determines has been (directly or indirectly) suffered for or on account of Tax by that  Protected Party in respect of a Finance Document.  (b) Clause (a) above does not apply to any Tax assessed on a Protected Party under the  laws of the jurisdiction (or any political subdivision thereof) in which:  (i) the relevant Protected Party is incorporated or, if different, the jurisdiction (or  jurisdictions) in which the relevant Protected Party is treated as resident for tax  purposes; or  (ii) the relevant Protected Party’s Facility Office or permanent establishment 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 the relevant  Protected Party.   

 

  30  EU-DOCS\31160993.15  (c) Clause (a) does not apply to any Tax assessed on the relevant Protected Party to the  extent the loss, liability or cost:  (i) is compensated for by an increased payment under Clause 11.2 (Tax gross-up);  (ii) would have been compensated for by an increased payment under Clause 11.2  (Tax gross-up) but was not so compensated solely because one of the  exclusions in Clause 11.2 (Tax gross-up) applied;   (iii) relates to a FATCA Deduction required to be made by a Party;  (iv) is compensated for by Clause 11.6 (Stamp taxes) or Clause 11.7 (VAT) (or  would have been so compensated for under those Clauses but was not so  compensated solely because any of the exceptions set out therein applied); or  (v) is suffered or incurred in respect of any Bank Levy (or any payment attributable  to, or liability arising as a consequence of, a Bank Levy).  (d) If a Protected Party is making, or is intending to make, a claim under Clause (a), it  must promptly notify the Agent of the event which will give, or has given, rise to the  claim, following which the Agent shall promptly notify the Borrower.  (e) A Protected Party shall, on receiving a payment from the Borrower under this Clause  11.3, notify the Agent.   11.4 Tax Credit  If the Borrower makes a Tax Payment and the relevant Finance Party determines that:  (a) a Tax Credit is attributable to an increased payment of which that Tax Payment forms  part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax  Payment was required; and  (b) the relevant Finance Party has obtained and utilised that Tax Credit,  the relevant Finance Party shall pay an amount to the Borrower which the relevant 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 Borrower.  11.5 Lender Status Confirmation  Each Lender which is not an Original Lender shall represent, in the documentation which it  executes on becoming a Party as a Lender which of the following categories it falls in:  (a) not a Qualifying Lender;  (b) a Qualifying Lender (other than a Treaty Lender); or  (c) a Treaty Lender.  If such Lender fails to indicate its status in accordance with this Clause 11.5 then that Lender  shall be treated for the purposes of this Agreement as if it is not a Qualifying Lender until such  time as it notifies the Borrower which category applies. For the avoidance of doubt, the  documentation which a Lender executes on becoming a Party as a Lender shall not be  invalidated by any failure of that Lender to comply with this Clause 11.5.  11.6 Stamp taxes  

 

  31  EU-DOCS\31160993.15  The Borrower shall pay and, within five Business Days of demand, indemnify each Finance  Party against any cost, loss or liability that Finance Party incurs in relation to all stamp  duty, registration and other similar Taxes payable in respect of any Finance Document,  except for any such Tax payable in respect of an assignment, novation, transfer or sub- participation of the Loan by that Finance Party.  11.7 VAT  (a) All amounts expressed to be payable under a Finance Document by the Borrower to a  Finance Party which (in whole or in part) constitute the consideration for any supply  for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that  supply and, accordingly, subject to (b) below, if VAT is or becomes chargeable on any  supply made by a Finance Party to the Borrower under a Finance Document and that  Finance Party is required to account to the relevant tax authority for the VAT, the  Borrower must pay to that Finance Party (in addition to and at the same time as paying  any other consideration for such supply) an amount equal to the amount of the VAT  (and that Finance Party must promptly provide an appropriate VAT invoice to the  Borrower).  (b) Where a Finance Document requires the Borrower to reimburse or indemnify a Finance  Party for any cost or expense, the Borrower shall reimburse or indemnify (as the case  may be) that Finance Party for the full amount of such cost or expense, including such  part thereof as represents VAT, save to the extent that such Finance Party reasonably  determines that it is entitled to credit or repayment in respect of such VAT from the  relevant tax authority.  (c) Any reference in this Clause 11.7 to any Party shall, at any time when such Party is  treated as a member of a group for VAT purposes, include (where appropriate and  unless the context otherwise requires) a reference to the representative member of such  group at such time (the term “representative member” to have the same meaning as in  the Value Added Tax Act 1994).  (d) In relation to any supply made by a Finance Party to the Borrower under a Finance  Document if reasonably requested by that Finance Party, the Borrower must promptly  provide that Finance Party with details of its VAT registration and such other  information as is reasonably requested in connection with that Finance Party’s VAT  reporting requirements in relation to such supply.  11.8 FATCA Information  (a) Subject to Clause (c) below, each Party shall, within ten Business Days of a reasonable  request by another Party:  (i) confirm to that other Party whether it is:  (A) a FATCA Exempt Party; or  (B) not a FATCA Exempt Party;  (ii) supply to that other Party such forms, documentation and other information  relating to its status under FATCA as that other Party reasonably requests for  the purposes of that other Party’s compliance with FATCA; and  (iii) supply to that other Party such forms, documentation and other information  relating to its status as that other Party reasonably requests for the purposes of  

 

  32  EU-DOCS\31160993.15  that other Party’s compliance with any other law, regulation, or exchange of  information regime.  (b) If a Party confirms to another Party pursuant to paragraph (i) of Clause (a) above that  it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has  ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably  promptly.  (c) Clause (a) above shall not oblige any Finance Party to do anything, and paragraph (iii)  of Clause (a) above shall not oblige any other Party to do anything, which would or  might in its reasonable opinion constitute a breach of:  (i) any law or regulation;  (ii) any fiduciary duty; or  (iii) any duty of confidentiality.  (d) If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply  forms, documentation or other information requested in accordance with paragraphs (i)  or (ii) of Clause (a) above (including, for the avoidance of doubt, where (c) applies),  then such Party shall be treated for the purposes of the Finance Documents (and  payments under them) as if it is not a FATCA Exempt Party until such time as the Party  in question provides the requested confirmation, forms, documentation or other  information.  11.9 FATCA Deduction  (a) Each Party may make any FATCA Deduction it is required to make by FATCA, and  any payment required in connection with that FATCA Deduction, and no Party shall be  required to increase any payment in respect of which it makes such a FATCA  Deduction or otherwise compensate the recipient of the payment for that FATCA  Deduction.  (b) Each Party shall promptly, upon becoming aware that it must make a FATCA  Deduction (or that there is any change in the rate or the basis of such FATCA  Deduction), notify the Party to whom it is making the payment and, in addition, shall  notify the Borrower and the Agent and the Agent shall notify the other Finance Parties.  11.10 DAC6  (a) In this Clause 11.10, "DAC6" means the Council Directive of 25 May 2018  (2018/822/EU) amending Directive 2011/16/EU.  (b) The Borrower shall supply to the Agent (in sufficient copies for all the Lenders, if the  Agent so requests):  (i) promptly upon the making of such analysis or the obtaining of such advice, any  analysis made or advice obtained on whether any transaction contemplated by  the Transaction Documents or any transaction carried out (or to be carried out)  in connection with any transaction contemplated by the Transaction Documents  contains a hallmark as set out in Annex IV of DAC6; and  (ii) promptly upon the making of such reporting and to the extent permitted by  applicable law and regulation, any reporting made to any governmental or  taxation authority by or on behalf of any member of the Group or by any adviser  

 

  33  EU-DOCS\31160993.15  to such member of the Group in relation to DAC6 or any law or regulation  which implements DAC6 and any unique identification number issued by any  governmental or taxation authority to which any such report has been made (if  available).  (c) Nothing in any Finance Document shall prevent disclosure of any Confidential  Information or other matter to the extent that preventing that disclosure would  otherwise cause any transaction contemplated by the Finance Documents or any  transaction carried out in connection with any transaction contemplated by the Finance  Documents to become an arrangement described in Part II A 1 of Annex IV of Directive  2011/16/EU.  12. INCREASED COSTS  12.1 Increased Costs  Except as provided below in this Clause 12, the Borrower must, within five Business Days of  demand by the Agent, pay for the account of a Finance Party the amount of any Increased Cost  incurred by that Finance Party or any of its Affiliates as a result of:  (a) the introduction of, or any change in, or any change in the interpretation, administration  or application of, any law or regulation;  (b) compliance with any law or regulation made after the date of this Agreement (but, in  respect of any regulation not having the force of law, only to the extent the relevant  Finance Party or its Affiliate would be expected to comply); or  (c) the implementation or application of, or compliance with, Basel III or CRD IV or any  law or regulation that implements or applies Basel III or CRD IV to the extent such  increased costs were not reasonably capable of being accurately calculated prior to the  date of this Agreement or, in the case of a new Lender, prior to the date on which it  became a Lender, and provided in each case that such Lender confirms as such to the  Borrower and that it is its general policy to charge such costs to similar borrowers of  similar facilities.  12.2 Exceptions  The Borrower need not make any payment for an Increased Cost to the extent that the Increased  Cost is:  (a) compensated for under another Clause or would have been but for an exception to that  Clause;  (b) attributable to a Tax Deduction required by law to be made by the Borrower;  (c) compensated for by Clause 11.3 (Tax indemnity) (or would have been compensated for  under Clause 11.3 (Tax indemnity) but was not so compensated solely because any of  the exclusions in Clause 11.3(b) or 11.3(c) applied);  (d) attributable to a FATCA Deduction required to be made by a Party;  (e) the subject of a claim by a Finance Party pursuant to Clause 12.1 (Increased Costs)  notified to the Borrower 180 or more days from the date upon which the relevant  Finance Party became aware of such Increased Cost;  (f) suffered or incurred in respect of any Bank Levy (or any payment attributable to, or any  liability arising as a consequence of, a Bank Levy);  

 

  34  EU-DOCS\31160993.15  (g) compensated for by Clause 11.6 (Stamp taxes) or Clause 11.7 (VAT) (or would have  been so compensated for under those Clauses but was not so compensated solely  because any of the exceptions set out in the relevant Clause applied);  (h) attributable to a Finance Party or its Affiliate wilfully failing to comply with any law  or regulation; or  (i) attributable to the implementation or application of or compliance with the  “International Convergence of Capital Measurement and Capital Standards, a Revised  Framework” published by the Basel Committee on Banking Supervision in June 2004  in the form existing on the date of this Agreement (but excluding any amendment  arising out of Basel III) (“Basel II”) or any other law or regulation which implements  Basel II (whether such implementation, application or compliance is by a government,  regulator, a Finance Party or any of its Affiliates).  12.3 Claims  A Finance Party intending to make a claim for an Increased Cost shall notify the Agent promptly  and in any event within 180 days of the circumstances giving rise to, and the amount of, the  claim (setting out, in reasonable detail, calculations thereof), following which the Agent shall  promptly notify the Borrower.  13. MITIGATION  13.1 Mitigation  (a) Each Finance Party shall, in consultation with the Borrower, take all reasonable steps  to mitigate any circumstances which arise and which result or would result in the  Facility ceasing to be available or:  (i) any amount becoming payable under or pursuant to any of Clause 11  (Taxes) or Clause 12 (Increased Costs);  (ii) the relevant Finance Party being able to exercise any right of prepayment and/or  cancellation under this Agreement by reason of any illegality;  (iii) the relevant Finance Party incurring any cost of complying with the minimum  reserve requirements of the European Central Bank; or  (iv) the occurrence of any market disruption event,  including (but not limited to) transferring its rights and obligations under the Finance  Documents to an Affiliate or changing its Facility Office.  (b) No Finance Party is obliged to take any step under this Clause 13 if, in the opinion of  the relevant Finance Party (acting reasonably), to do so might be prejudicial to it.  (c) Each Finance Party must promptly notify the Agent of any circumstances as described  in paragraphs (i) to (iv) of Clause (a), following which the Agent shall promptly notify  the Borrower.  (d) The Borrower must indemnify each Finance Party for all costs and expenses reasonably  incurred by such Finance Party as a result of any step taken under this Clause 13.  (e) This Clause 13 does not in any way limit the obligations of the Borrower under the  Finance Documents.  

 

  35  EU-DOCS\31160993.15  14. REPLACEMENT OF A SINGLE LENDER  14.1 Replacement of a single Lender  (a) Notwithstanding Clause 13 (Mitigation), if any circumstances arise which result in:  (i) any Tax Payment or Increased Cost being payable to a Finance Party;  (ii) a Finance Party giving notice under Clause 10.3 (Market disruption);   (iii) a Finance Party being able to exercise any right of prepayment and/or  cancellation under this Agreement by reason of any illegality;  (iv) a Finance Party incurring any cost of complying with the minimum reserve  requirements of the European Central Bank;   (v) a Finance Party being a Defaulting Lender; or  (vi) the occurrence of any market disruption event,  then the Borrower, at its expense, at any time within 180 days after the occurrence of  the relevant event or circumstance may by notice to the Agent require such Finance  Party to (and to the extent permitted by law the relevant Finance Party shall) novate  pursuant to Clause 28 (Changes to the Lenders) all (and not part only) of its rights and  obligations under this Agreement to an Eligible Institution (a “Replacement Lender”),  which confirms its willingness to assume and does assume all the obligations of the  transferring Finance Party (including the assumption of the transferring Finance Party’s  participations or unfunded participations (as the case may be) on the same basis as the  transferring Finance Party) for a purchase price in cash payable at the time of transfer  in an amount equal to the outstanding principal amount of the relevant Finance Party’s  participation in the outstanding Loan and all accrued interest (to the extent the Agent  has not given a notification under Clause 28.12(b) (Pro rata interest settlement)), Break  Costs and other amounts payable to the relevant Finance Party under the Finance  Documents provided that:  (A) the Borrower shall have paid to the relevant Finance Party all amounts  accrued and owing to relevant Finance Party hereunder;  (B) the Borrower shall have no right to replace the Agent;  (C) the relevant Finance Party shall have no obligation to the Borrower to  find a Replacement Lender;  (D) the transfer must take place no later than 14 days after the notice  referred to above; and  (E) the relevant Finance Party shall only be obligated to transfer its rights  and obligations pursuant to this Clause 14 once it is satisfied that it has  complied with all necessary “know your customer requirements” or  other similar checks under all applicable laws and regulations in  relation to that transfer to the Replacement Lender.  (b) Each Finance Party shall perform the checks described in paragraph (E) of Clause (a)   above as soon as reasonably practicable following delivery of a notice referred to in  paragraph (vi) of Clause (a) above and shall notify the Agent and the Borrower when it  is satisfied that it has complied with those checks.  

 

  36  EU-DOCS\31160993.15  15. PAYMENT MECHANICS  15.1 Payments to the Agent  (a) On each date on which the Borrower or a Lender is required to make a payment under  a Finance Document, that Party shall make the same available to the Agent (unless a  contrary indication appears in a Finance Document) for value on the due date at the  time and in such funds specified by the Agent as being customary at the time for  settlement of transactions in the relevant currency in the place of payment.  (b) Payment shall be made to such account in London with such bank as the Agent  specifies.  15.2 Distributions by the Agent  Each payment received by the Agent under the Finance Documents for another Party shall,  subject to Clause 15.3 (Distributions to the Borrower) and Clause 15.4 (Clawback and pre- funding) 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 at such bank as that Party may notify to the Agent by not  less than five Business Days’ notice with a bank in London specified by that Party.  15.3 Distributions to the Borrower  The Agent may (with the consent of the Borrower or in accordance with Clause 16 (Set-Off))  apply any amount received by it for the Borrower in or towards payment (on the date and in the  currency and funds of receipt) of any amount due from the Borrower under the Finance  Documents, or in or towards purchase of any amount of any currency to be so applied.  15.4 Clawback and pre-funding  (a) Where a sum is to be paid to the Agent under the Finance Documents for another Party,  the Agent is not obliged to pay that sum to that other Party (or to enter into or perform  any related exchange contract) until it has been able to establish to its satisfaction that  it has actually received that sum.  (b) Unless Clause (c) below applies, 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.  (c) If the Agent is willing to make available amounts for the account of the Borrower before  receiving funds from the Lenders, then if and to the extent that the Agent does so but it  proves to be the case that it does not then receive funds from a Lender in respect of a  sum which it paid to the Borrower:  (i) the Agent shall notify the Borrower of that Lender’s identity and the Borrower  shall, as soon as reasonably practicable following a demand, refund the relevant  amount made available to it to the Agent; and  (ii) the Lender by whom those funds should have been made available or, if that  Lender fails to do so, the Borrower, shall on demand pay to the Agent the  amount (as certified by the Agent) which will indemnify the Agent against any  

 

  37  EU-DOCS\31160993.15  funding cost incurred by it as a result of paying out that sum before receiving  those funds from that Lender.  15.5 Impaired Agent  (a) If, at any time, the Agent becomes an Impaired Agent, the Borrower or a Lender (as  applicable) which is required to make a payment under the Finance Documents to the  Agent in accordance with Clause 15.1 (Payments to the Agent) may instead either:  (i) pay that amount direct to the required recipient; or  (ii) if in its absolute discretion it considers that it is not reasonably practicable to  pay that amount direct to the required recipient(s), pay that amount to an  interest-bearing account held with an Acceptable Bank and in relation to which  no Insolvency Event has occurred and is continuing, in the name of the  Borrower or the Lender making the payment (as applicable) (the “Paying  Party”) and designated as a trust account for the benefit of the Party or Parties  beneficially entitled to that payment under the Finance Documents (the  “Recipient Party” or the “Recipient Parties”),  and in each case such payments must be made on the due date for payment under the  Finance Documents.  (b) All interest accrued on the amount standing to the credit of the trust account shall be  for the benefit of the Recipient Party or the Recipient Parties pro rata to their respective  entitlements.  (c) A Party which has made a payment in accordance with this Clause 15.5 shall be  discharged of the relevant payment obligation under the Finance Documents and shall  not take any credit risk with respect to the amounts standing to the credit of the trust  account.  (d) Promptly upon the appointment of a successor Agent in accordance with Clause 29.12  (Replacement of the Agent), each Paying Party shall (other than to the extent that that  Party has given an instruction pursuant to Clause (e)) give all requisite instructions to  the bank with which the trust account is held to transfer the amount (together with any  accrued interest) to the successor Agent for distribution to the relevant Recipient Party  or Recipient Parties in accordance with Clause 15.2 (Distributions by the Agent).  (e) A Paying Party shall, promptly upon request by a Recipient Party and to the extent:  (i) that it has not given an instruction pursuant to Clause (d) above; and  (ii) that it has been provided with the necessary information by that Recipient  Party,  give all requisite instructions to the bank with which the trust account is held to transfer  the relevant amount (together with any accrued interest) to that Recipient Party.  15.6 Partial payments  (a) 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 the Borrower under those Finance Documents, the Agent shall apply that  payment towards the obligations of the Borrower under those Finance Documents in  the following order:  

 

  38  EU-DOCS\31160993.15  (i) first, in or towards payment pro rata of any unpaid amount owing to the Agent  under the Finance Documents;  (ii) second, in or towards payment pro rata of any accrued interest, fee or  commission due but unpaid under those Finance Documents;  (iii) third, in or towards payment pro rata of any principal due but unpaid under  those Finance Documents; and  (iv) fourth, in or towards payment pro rata of any other sum due but unpaid under  the Finance Documents.  (b) The Agent shall, if so directed by the Majority Lenders, vary the order set out in Clauses  (a)(ii) to (a)(iv) above.  (c) Clauses (a) and (b) above will override any appropriation made by the Borrower.  15.7 No set-off by the Borrower   All payments to be made by the Borrower under the Finance Documents shall be calculated and  be made without (and free and clear of any deduction for) set-off or counterclaim.  15.8 Business Days  (a) Any payment under the Finance Documents which is due to be made on a day that is  not a Business Day shall be made on the next Business Day in the same calendar month  (if there is one) or the preceding Business Day (if there is not).  (b) During any extension of the due date for payment of any principal or Unpaid Sum under  this Agreement, interest is payable on the principal or Unpaid Sum at the rate payable  on the original due date.  15.9 Currency of account  (a) Subject to Clauses (b) and (c) below, the Sterling is the currency of account and  payment for any sum due from the Borrower under any Finance Document.  (b) Each payment in respect of costs, expenses or Taxes shall be made in the currency in  which the costs, expenses or Taxes are incurred.  (c) Any amount expressed to be payable in a currency other than Sterling shall be paid in  that other currency.  15.10 Change of currency  (a) Unless otherwise prohibited by law, if more than one currency or currency unit are at  the same time recognised by the central bank of any country as the lawful currency of  that country, then:  (i) any reference in the Finance Documents to, and any obligations arising under  the Finance Documents in, the currency of that country shall be translated into,  or paid in, the currency or currency unit of that country designated by the Agent  (after consultation with the Borrower); and  (ii) any translation from one currency or currency unit to another shall be at the  official rate of exchange recognised by the central bank for the conversion of  

 

  39  EU-DOCS\31160993.15  that currency or currency unit into the other, rounded up or down by the Agent  (acting reasonably).  (b) If a change in any currency of a country occurs, this Agreement will, to the extent the  Agent (acting reasonably after consultation with the Borrower), be amended to comply  with any generally accepted conventions and market practice in the Relevant Market  and otherwise to reflect the change in currency.  15.11 Disruption to payment systems etc.  If either the Agent determines (in its discretion) that a Disruption Event has occurred or the  Agent is notified by the Borrower that a Disruption Event has occurred:  (a) the Agent may, and shall if requested to do so by the Borrower, consult with the  Borrower with a view to agreeing with the Borrower such changes to the operation or  administration of the Facility as the Agent may deem necessary in the circumstances;  (b) the Agent shall not be obliged to consult with the Borrower in relation to any changes  mentioned in Clause (a) above if, in its opinion, it is not practicable to do so in the  circumstances and, in any event, shall have no obligation to agree to such changes;  (c) the Agent may consult with the Finance Parties in relation to any changes mentioned in  Clause (a) above but shall not be obliged to do so if, in its opinion, it is not practicable  to do so in the circumstances;  (d) any such changes agreed upon by the Agent and the Borrower (whether or not it is  finally determined that a Disruption Event has occurred) shall be binding upon the  Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance  Documents notwithstanding the provisions of Clause 26 (Amendments and Waivers);  (e) the Agent shall not be liable for any damages, costs or losses to any person, any  diminution in value or any liability whatsoever (including, without limitation, for  negligence, gross negligence or any other category of liability whatsoever, but not  including any claim based on the fraud of the Agent) arising as a result of its taking, or  failing to take, any actions pursuant to or in connection with this Clause 15.11; and  (f) the Agent shall notify the Finance Parties of all changes agreed pursuant to Clause (d)  above.  16. SET-OFF  If an Event of Default is continuing, a Finance Party may set off any matured obligation due  from the Borrower under the Finance Documents (to the extent beneficially owned by that  Finance Party) against any matured obligation owed by that Finance Party to the Borrower,  regardless of the place of payment, booking branch or currency of either obligation.    17. REPRESENTATIONS  17.1 Representations  The representations set out in this Clause 17 are made by the Borrower to each Finance Party.  17.2 Status  It is a limited liability company, duly incorporated and validly existing under the laws of  England and Wales.  

 

  40  EU-DOCS\31160993.15  17.3 Powers and authority  It has the power to enter into and perform, and has taken all necessary action to authorise the  entry into and performance of, the Finance Documents to which it is a party and the transactions  contemplated by those Finance Documents.  17.4 Legal validity  Subject to the Legal Reservations, each Finance Document to which it is a party is its legally  binding, valid and enforceable obligation.  17.5 Non-conflict  Subject to the Legal Reservations, the entry into and performance by it of, and the transactions  contemplated by, the Finance Documents do not conflict with any borrowing or other power or  restriction granted or imposed by:  (a) any law or regulation applicable to it and violation of which has or is likely to have a  Material Adverse Effect; or  (b) its constitutional documents.  17.6 No default  (a) No Event of Default is outstanding.  (b) No Event of Default might reasonably be expected to result from the making of the  Loan.  (c) No other event or circumstance is outstanding which constitutes a default under any  other agreement or instrument which is binding on it or to which its assets are subject,  in each case which has or is reasonably likely to have a Material Adverse Effect.  17.7 Authorisations  All authorisations required:  (a) to enable it to enter into, exercise its rights and comply with its obligations under the  Finance Documents to which it is a party; and  (b) to make the Finance Documents admissible in evidence in England and Wales,   have been obtained or effected (as appropriate) and, subject to the Legal Reservations, are in  full force and effect.  17.8 Financial statements  Its and each of the Distribution Companies’ audited consolidated financial statements most  recently delivered to the Agent (which, at the date of this Agreement, are the Original Financial  Statements):  (a) have been prepared in accordance with accounting principles and practices generally  accepted in its jurisdiction of incorporation, consistently applied; and  (b) fairly present the consolidated financial condition of the relevant entity as at the date to  which they were drawn up,   

 

  41  EU-DOCS\31160993.15  except, in each case, as disclosed to the contrary in those financial statements.  17.9 Litigation  No litigation, arbitration or administrative proceedings against it are current or, to its  knowledge, pending or threatened, in each case which are reasonably likely to be adversely  determined and, if so adversely determined, are reasonably likely to have a Material Adverse  Effect.  17.10 Winding Up  No meeting has been convened for its winding-up and, so far as it is aware, no petition,  application or the like is outstanding for its winding-up.  17.11 Non-Violation of other Agreements  Its entry into, exercise of its rights and/or performance of or compliance with its obligations  under this Agreement do not and will not violate, to an extent or in a manner which has or is  likely to have a Material Adverse Effect on it, any agreement to which it is a party or which is  binding on it.  17.12 Governing Law and Enforcement  (a) The choice of English law as the governing law of the Finance Documents will be  recognised and enforced in its jurisdiction of incorporation.  (b) Any judgment obtained in England in relation to a Finance Document will be  recognised and enforced in its jurisdiction of incorporation.  17.13 No filing or stamp taxes  Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be  filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp,  registration or similar tax be paid on or in relation to the Finance Documents or the transactions  contemplated by the Finance Documents (which for these purposes does not include a Transfer  Certificate or other transfer or disposal of any Finance Party’s rights or obligations under a Finance  Document or any stamp, registration or similar tax that may be imposed on enforcement of any  security).  17.14 No misleading information  (a) Save as disclosed to the Agent prior to the date of this Agreement, any written factual  information provided by any member of the Group to any Finance Party in connection  with the Facility was true and accurate in all material respects as at the date it was  provided or as at the date (if any) at which it is stated.  (b) Nothing has occurred or been omitted from the information provided to the Agent in  connection with the Facility and no information has been given or withheld that results  in the information provided being untrue or misleading in any material respect.  17.15 Pari Passu ranking  Its payment obligations under the Finance Documents rank at least pari passu with the claims  of all its other unsecured and unsubordinated creditors, except for obligations mandatorily  preferred by law applying to companies generally.  17.16 Licence  

 

  42  EU-DOCS\31160993.15  Each Licence is in full force and effect and there is no investigation or proceeding current,  pending or threatened which could, if adversely determined, result in the termination of any  Licence.  17.17 Anti-corruption law  Each member of the Group has conducted its businesses in compliance with applicable anti- corruption laws and has instituted and maintained policies and procedures designed to promote  and achieve compliance with such laws.  17.18 Sanctions  (a) No member of the Group nor, to the knowledge of the Borrower, any of their directors  or officers:  (i) is a Restricted Party; or  (ii) is located or resident in or organised under the laws of a country or territory  that is the subject of country-wide or territory-wide Sanctions; or  (iii) has received notice of, or is aware of, any claim, action, suit, proceeding or  investigation against it with respect to Sanctions by any Sanctions Authority.  (b) The Borrower shall ensure that each member of the Group will ensure that appropriate  policies, procedures, controls and safeguards are in place designed to prevent any action  being taken that would be contrary to (a).  (c) Nothing in this Clause 17.18 shall create or establish an obligation or right for any  member of the Group to the extent that, by agreeing to it, compliance with it, exercising  it, having such obligation or right, or otherwise, it would be placed in violation of any  law applicable to it.  (d) The Borrower shall only represent or warrant under this Clause 17.18 to the extent that  giving or complying with such representation does not result in any violation of,  conflict with or liability under the Blocking Law.  (e) This Clause 17.18 shall only apply for the benefit of a Lender to the extent that the  representation under this Clause 17.18 would not result in any violation of, conflict with  or liability under the Blocking Law.  17.19 Times for making representations  (a) The representations set out in this Clause 17 are made by the Borrower on the date of  this Agreement.  (b) The representations in Clauses 17.2 (Status) to 17.5 (Non conflict) (inclusive), 17.6(a)  (No default), 17.7 (Authorisations), 17.8 (Financial statements) and 17.12 (Governing  Law and Enforcement) are deemed to be repeated by the Borrower on the first day of  each Interest Period.  (c) When a representation is repeated, it is applied to the circumstances existing at the time  of repetition.  18. INFORMATION COVENANTS  18.1 Financial Statements  

 

  43  EU-DOCS\31160993.15  (a) The Borrower must supply to the Agent:  (i) its and each of the Distribution Companies’ audited consolidated financial  statements for each of their financial years; and  (ii) its interim consolidated financial statements for the first half-year of each of its  financial years.  (b) All financial statements must be supplied as soon as they are available and:  (i) in the case of the Borrower’s and each of the Distribution Companies’ audited  consolidated financial statements, within 180 days; and  (ii) in the case of the Borrower’s interim financial statements, within 90 days,   of the end of the relevant financial period.  18.2 Form of Financial Statements  If any financial statement delivered or to be delivered to the Agent pursuant to Clause 18.1  (Financial Statements) is not to be or, as the case may be, has not been prepared in accordance  with Applicable Accounting Principles:  (a) the Borrower shall notify the Agent no later than concurrently with the delivery of the  relevant financial statements;  (b) if the effect of the change (when aggregated with any other change since the date of the  Original Financial Statements) to the basis on which the relevant financial statements  were prepared results in a deviation of equal to or greater than 3 per cent. from the result  of the calculation of financial ratios in Clause 19.3 (Interest Cover) and Clause 19.4  (Asset Cover) and/or the definitions of the terms used in Clause 19 (Financial  Covenants) had such change or changes (as applicable) not occurred, if the Agent so  requests:  (i) the Borrower shall deliver to the Agent a description of the change or changes  (as applicable) and sufficient information to enable the Lenders to determine  whether Clause 19.3 (Interest Cover) and Clause 19.4 (Asset Cover) have been  complied with and to make an accurate comparison between the financial  position indicated in those financial statements and the Original Financial  Statements; and  (ii) the Borrower and the Agent shall enter into negotiations in good faith with a  view to agreeing any amendments to this Agreement which may be necessary  to ensure that the change does not result in any material alteration in the  commercial effect of the financial ratios in Clause 19.3 (Interest Cover) and  Clause 19.4 (Asset Cover) and/or the definitions of the terms used in Clause 19  (Financial Covenants);   (c) if the amendments contemplated in paragraph (b) above are agreed by the Borrower  and the Majority Lenders within 25 days, those amendments shall take effect in  accordance with the terms of that agreement; and  (d) if the amendments contemplated in paragraph (b) above are not so agreed within 25  days, the Borrower shall, with all subsequent financial statements to be delivered to the  Agent pursuant to Clause 18.1 (Financial Statements), deliver to the Agent sufficient  information to enable the Lenders to determine whether Clause 19.3 (Interest Cover)  

 

  44  EU-DOCS\31160993.15  and Clause 19.4 (Asset Cover) have been complied with and to make an accurate  comparison between the financial position indicated in those financial statements and  the Original Financial Statements.  18.3 Compliance Certificate  (a) The Borrower must supply to the Agent a Compliance Certificate with each set of its  financial statements delivered to the Agent under this Agreement.  (b) Each Compliance Certificate must be signed by two directors of the Borrower.  18.4 Information - miscellaneous  The Borrower must supply to the Agent:  (a) copies of all documents despatched by the Borrower to its creditors generally (or any  class of them) (in each case other than any Affiliate of the Borrower) at the same time  as they are despatched;  (b) promptly, details of the loss of any Licence or any communication from Ofgem or other  government agency regarding any potential or threatened loss of any Licence;   (c) written notice of the details of any proposed changes to a Licence which are reasonably  likely to have a Material Adverse Effect as soon as reasonably practicable after  becoming aware of the same; and  (d) if an Event of Default is continuing, promptly on request by the Agent, such further  information regarding the financial condition, business and operations of the Group as  any Finance Party through the Agent may reasonably request.   18.5 Notification of Default  The Borrower must notify the Agent of any Default (and the steps, if any, being taken to remedy  it) promptly upon becoming aware of its occurrence.  18.6 Direct electronic delivery by the Borrower  (a) Except as provided below, the Borrower may deliver any information under this  Agreement to the Agent in accordance with Clause 36.5 (Electronic communication).  18.7 Know your customer requirements  (a) If:  (i) the introduction of or any change in (or in the interpretation, administration or  application of) any law or regulation made after the date of this Agreement;  (ii) any change in the status of the Borrower (or a Holding Company of the  Borrower) after the date of this Agreement; or  (iii) a proposed assignment or transfer by a Lender of any of its rights and  obligations under this Agreement to a party that is not a Lender prior to such  assignment or transfer,  obliges a Lender (or, in the case of paragraph (iii) above, any prospective new Lender)  to comply with “know your customer requirements” or similar identification procedures  in circumstances where the necessary information is not already available to it, the  

 

  45  EU-DOCS\31160993.15  Borrower shall promptly upon the request of the Agent or any Lender supply, or procure  the supply of, such documentation and other evidence as is reasonably requested by the  Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of  the event described in paragraph (iii) above, on behalf of any prospective new Lender)  in order for the relevant Lender or, in the case of the event described in paragraph (iii)  above, any prospective new Lender to carry out and be satisfied it has complied with  all necessary “know your customer requirements” or other similar checks under all  applicable laws and regulations pursuant to the transactions contemplated in the  Finance Documents.  (b) Each Lender shall promptly upon the request of the Agent supply, or procure the supply  of, such documentation and other evidence as is reasonably requested by the Agent (for  itself) in order for the Agent to carry out and be satisfied it has complied with all  necessary “know your customer” or other similar checks under all applicable laws and  regulations pursuant to the transactions contemplated in the Finance Documents.   19. FINANCIAL COVENANTS  19.1 Definitions  In this Clause 19:  “Cash” means, at any time, cash denominated in a currency of an Acceptable Jurisdiction in  hand or at bank and (in the latter case) credited to an account in the name of a member of the  Group with an Acceptable Bank and to which a member of the Group is alone (or together with  other members of the Group) beneficially entitled and for so long as:  (a) that cash is repayable within 90 days after the relevant date of calculation;  (b) repayment of that cash is not contingent on the prior discharge of any other  indebtedness of any member of the Group or of any other person whatsoever or on the  satisfaction of any other condition;  (c) there is no Security Interest over that cash other than Security Interests permitted under  Clause 20.5(c) (Negative pledge); and  (d) the cash is freely and (except as mentioned in paragraph (a) above) immediately  available to be applied in repayment or prepayment of the Facility.  “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 an Acceptable Jurisdiction 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;  (ii) issued by an issuer incorporated in an Acceptable Jurisdiction;  (iii) which matures within one year after the relevant date of calculation; and  

 

  46  EU-DOCS\31160993.15  (iv) which has a credit rating of either A-1 or higher by Standard & Poor’s Rating  Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s  Investors Service 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 (or their  dematerialised equivalent) and accepted by an Acceptable Bank;  (e) any investment in money market funds which:  (i) have a credit rating of either A-1 or higher by Standard & Poor’s Rating  Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s  Investors Service Limited;  (ii) invest substantially all their assets in securities of the types described in  paragraphs (a) to (d) above; and  (iii) can be turned into cash on not more than 30 days’ notice; or  (f) any other debt security approved by the Majority Lenders,  in each case, denominated in a currency of an Acceptable Jurisdiction and to which any member  of the Group is alone (or together with other members of the Group) 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 Security Interests permitted under Clause 20.5(c) (Negative  pledge)).  “Consolidated EBITDA” means the consolidated net pre-taxation profits of the Group for a  Calculation Period as adjusted by:  (a) adding back Interest Payable;  (b) taking no account of any exceptional or extraordinary item;  (c) excluding any amount attributable to minority interests;  (d) adding back depreciation and amortisation; and  (e) taking no account of any revaluation of an asset or any loss or gain over book value  arising on the disposal of an asset (otherwise than in the ordinary course of trading) by  a member of the Group during that Calculation Period.  “Interest Payable” means, in relation to any Calculation Period, all interest payable and similar  charges of the Group expressed in the relevant currency and determined on a consolidated basis  in accordance with Applicable Accounting Principles but excluding interest payable or similar  charges of the Group in relation to:  (a) intra-Group items; and   (b) any loans from Affiliates (other than any member of the Group) and shareholder loans  to the extent that such loans from Affiliates and/or shareholder loans are  subordinated on the terms set out in a Subordination Deed.  “Regulatory Asset Value” means at any date, the regulatory asset value of the Distribution  Companies for such date as last determined and notified by Ofgem (interpolated as necessary  

 

  47  EU-DOCS\31160993.15  and adjusted for additions to the regulatory asset value and adjusted as appropriate for out-turn  inflation / regulatory depreciation).  “Total Net Debt” means, at any time, the consolidated Financial Indebtedness of the Group  which is required to be accounted for as debt in the consolidated annual financial statements of  the Group less the aggregate at such time of all Cash or Cash Equivalent Investments held by  any member of the Group excluding:  (a) intra-Group items; and  (b) loans from Affiliates (other than any member of the Group) and shareholder loans, to  the extent that such loans from Affiliates and/or shareholder loans are subordinated  on the terms set out in a Subordination Deed.  19.2 Interpretation  (a) Except as provided to the contrary in this Agreement, an accounting term used in this  Clause 19 is to be construed in accordance with the principles applied in connection  with the Original Financial Statements.  (b) Any amount in a currency other than Sterling is to be taken into account at its Sterling  equivalent calculated on the basis of:  (c) the Agent’s spot rate of exchange for the purchase of the relevant currency in the  London foreign exchange market with Sterling at or about 11.00 a.m. on the day the  relevant amount falls to be calculated; or  (d) if the amount is to be calculated on the last day of a financial period of the Borrower,  the relevant rates of exchange used by the Borrower in, or in connection with, its  financial statements for that period.  (e) No item must be credited or deducted more than once in any calculation under this  Clause 19.  19.3 Interest Cover  The Borrower must ensure that the ratio of Consolidated EBITDA to Interest Payable is not, on  the last day of each Calculation Period, less than 3:1.  19.4 Asset Cover  The Borrower must ensure that on the last day of each Calculation Period, Total Net Debt does  not exceed 87.5% of the Regulatory Asset Value.  19.5 Calculation of Interest Payable  For the purpose of the financial covenant set out in Clause 19.3 (Interest Cover), in relation to  any Calculation Period ending less than 12 months from the date of this Agreement, Interest  Payable shall be calculated ignoring any amounts accrued before the date of this Agreement  and in respect of the period after the date of this Agreement shall be increased by a factor of  A/B where ‘A’ is 365 and ‘B’ is the total number of calendar days between the date of this  Agreement and the last day of such Calculation Period.  20. GENERAL COVENANTS  20.1 General  

 

  48  EU-DOCS\31160993.15  The Borrower agrees to be bound by the covenants set out in this Clause 20 relating to it and,  where the covenant is expressed to apply to each Distribution Company or each member of the  Group, the Borrower must ensure that each Distribution Company or each of its Subsidiaries,  as the case may be, performs that covenant.  20.2 Authorisations  The Borrower must promptly obtain, maintain and comply with the terms of any authorisation  required under any law or regulation to enable it to perform its obligations under, or for the  validity or enforceability of, any Finance Document.  20.3 Compliance with laws  Each member of the Group must comply in all respects with all laws to which it is subject where  failure to do so is reasonably likely to have a Material Adverse Effect.  20.4 Pari passu ranking  The Borrower must ensure that its payment obligations under the Finance Documents rank at  least pari passu with all its other present and future unsecured and unsubordinated payment  obligations, except for obligations mandatorily preferred by law applying to companies  generally.  20.5 Negative pledge  In this Clause 20.5, “Quasi-Security” means an arrangement or transaction described in Clause  (b) below.  (a) Except as provided below, none of the Borrower, any Distribution Company nor any  Holding Company of a Distribution Company (to the extent such Holding Company is  a member of the Group) may create or allow to exist any Security Interest or Quasi- Security on any of its assets.  (b) Except as provided below, none of the Borrower, any Distribution Company nor any  Holding Company of a Distribution Company (to the extent such Holding Company is  a member of the Group) may:  (i) sell, transfer or otherwise dispose of any of its assets on terms whereby they  are or may be leased to or re-acquired by the Borrower or any other member of  the Group;  (ii) sell, transfer or otherwise dispose of any of its receivables on recourse terms;  (iii) enter into any arrangement under which money or the benefit of a bank or other  account may be applied, set-off or made subject to a combination of accounts;  or  (iv) enter into any other preferential arrangement having a similar effect,  in circumstances where the arrangement or transaction is entered into primarily as a  method of raising Financial Indebtedness or of financing the acquisition of an asset.  (c) Clauses (a) and (b) do not apply to:  (i) any Security Interest or Quasi-Security created over the assets of or any shares  or other ownership interests in any entity which becomes a member of the  Group after the date of this Agreement as a result of a Permitted Acquisition  

 

  49  EU-DOCS\31160993.15  provided that the Security Interest or Quasi- Security is removed or discharged  within six months of the date of such acquisition;  (ii) any Security Interest or Quasi-Security created under or in connection with or  arising out of the Balancing and Settlement Code or any transactions or  arrangements entered into in connection with the management of risks relating  thereto;  (iii) in respect of overdue amounts which have not been overdue for more than 30  days and/or are being contested in good faith, liens arising solely by operation  of law or by order of a court or tribunal (or by an agreement of similar effect)  and/or in the ordinary course of day to day business or operations;  (iv) any Security Interest or Quasi-Security arising out of title retention provisions  in a supplier’s standard conditions of supply of goods acquired in the ordinary  course of business or operations;  (v) any Security Interest or Quasi-Security created on any asset acquired after the  date of this Agreement for the sole purpose of financing or re- financing that  acquisition and securing a principal, capital or nominal amount not exceeding  the cost of that acquisition, provided that the Security Interest or Quasi- Security is removed or discharged within 6 months of the date of acquisition of  such asset;  (vi) any Security Interest or Quasi-Security outstanding on or over any asset  acquired after the date of this Agreement and in existence at the date of such  acquisition, provided that the Security Interest or Quasi-Security is removed  or discharged within 6 months of the date of acquisition of such asset;  (vii) any Security Interest or Quasi-Security created or outstanding on or over any  asset of any company which becomes a Subsidiary of the Borrower after the  date of this Agreement where such Security Interest or Quasi- Security is  created prior to the date on which such company becomes a Subsidiary of the  Borrower and is not created or increased in contemplation of such company  being acquired and/or becoming a Subsidiary of the Borrower and the Security  Interest or Quasi-Security is removed or discharged within 6 months of the date  of such company becoming a Subsidiary of the Borrower;  (viii) any Security Interest or Quasi-Security created on any asset to secure any  Financial Indebtedness incurred in connection with the financing of any asset  or project in respect of which the repayment of that Financial Indebtedness is  to be made from the revenues arising out of, or other proceeds of realisation  from, that asset or project, with recourse to those revenues and proceeds and  other assets used in connection with, or forming the subject matter of, that asset  or project but without recourse to any other assets of the Group;  (ix) any netting arrangements under any swap or other hedging transaction which  is on standard market terms;  (x) any Security Interest or Quasi-Security created or outstanding on or over assets  of:  (A) the Borrower provided that the aggregate outstanding principal or  nominal amount secured by all Security Interests and Quasi- Security  created or outstanding under this exception on or over such assets shall  not at any time exceed £5,000,000 or its equivalent; and  

 

  50  EU-DOCS\31160993.15  (B) a Distribution Company provided that the aggregate outstanding  principal or nominal amount secured by all Security Interests and  Quasi-Security created or outstanding under this exception on or over  such assets shall not at any time exceed £20,000,000 or its equivalent  for each Distribution Company.  20.6 Disposals  (a) Except as provided below, no member of the Group may, either in a single transaction  or in a series of transactions and whether related or not, dispose of all or any part of its  assets (other than cash).  (b) Clause (a) does not apply to:  (i) any disposal made in the ordinary course of day to day business or operations  of the disposing entity;  (ii) disposals on normal commercial terms of obsolete assets or assets no longer  required for the purpose of the relevant member of the Group’s business or  operations;  (iii) any realisation of investments acquired, purchased or made by the temporary  application of funds not immediately required in the relevant member of the  Group’s business or operations;  (iv) the exchange of assets for other assets of a similar or superior nature and value  (other than an exchange of a non-cash asset for cash), or the sale of assets on  normal commercial terms for cash which is payable in full on the completion  of the sale and is to be, and is, applied in or towards the purchase of similar  assets within six months;  (v) the disposal of assets by one wholly-owned Subsidiary of the Borrower to  another or (if the consideration for the disposal does not exceed a normal  commercial consideration) to the Borrower by one of its Subsidiaries;  (vi) disposals in connection with sale-and-leaseback or sale and repurchase  transactions or any other form of “off balance sheet” financing, provided that  the aggregate book value (in the books of the disposing party) of all assets the  subject of all such disposals made during the period commencing on the date  of this Agreement and ending on the date when no amount remains payable  under this Agreement shall not exceed £100,000,000 or its equivalents; and  (vii) any disposal of any assets (including shares) other than:  (A) any shares held in any Distribution Company or in any Holding  Company of a Distribution Company; and  (B) any assets of a Distribution Company,  for cash where 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 of any  such assets which is not permitted under any other paragraph of this Clause (b))  does not exceed 10% of the Regulatory Asset Value at the relevant time.  20.7 Environmental matters  

 

  51  EU-DOCS\31160993.15  (a) The Borrower will and will ensure that each Distribution Company will comply with  all applicable Environmental Law and other regulations, orders or other law applicable  to the conduct of the business of the supply or distribution of electricity, in each case,  where failure to do so would have a Material Adverse Effect.  (b) The Borrower will, promptly upon becoming aware of the same, inform the Agent in  writing of:  (i) any Environmental Claim against it or any Distribution Company which is  current, pending or threatened; and  (ii) any facts or circumstances which are reasonably likely to result in any  Environmental Claim being commenced or threatened against it or any  Distribution Company,  where the claim, if determined against that member of the Group, would have a Material  Adverse Effect.  20.8 Insurance  Each member of the Group must insure its business and assets with insurance companies to  such an extent and against such risks as that member of the Group reasonably considers to be  appropriate, having regard to the insurance arrangements of companies engaged in similar  business.  20.9 Merger  The Borrower shall not enter into any amalgamation, demerger, merger, corporate  reconstruction or reorganisation.  20.10 Change of business  The Borrower shall procure that no substantial change is made to the general nature of the  business of the Borrower or the Group taken as a whole from that carried on at the date of this  Agreement.  20.11 Acquisitions  (a) Except as provided below neither the Borrower nor any other member of the Group  may acquire a company or any shares or securities or a business or undertaking (or, in  each case, any interest in any of them).  (b) Clause (a) does not apply to:  (i) an acquisition by a member of the Group of an asset sold, leased, transferred or  otherwise disposed of by another member of the Group as permitted under  Clause 20.6 (Disposals) above; or  (ii) any Permitted Acquisition.  20.12 Prohibition on Debt Purchase Transactions of the Group  The Borrower shall not, and shall procure that no other member of the Group shall, enter into  any Debt Purchase Transaction.  20.13 Prohibitions on Subsidiary Financial Indebtedness  

 

  52  EU-DOCS\31160993.15  The Borrower shall procure that no member of the Group (other than the Borrower, any  Distribution Company or any Subsidiary which is not a Holding Company of a Distribution  Company) will incur or allow to remain outstanding any Financial Indebtedness (other than  Financial Indebtedness owed to another member of the Group).  20.14 Arm’s length transactions  The Borrower shall not (and shall ensure that no member of the Group shall) enter into any  material transactions with any other member of the PPL Group except on arm’s length terms  and for full market value (or on terms which are more favourable to the Group).  20.15 Pensions  (a) The Borrower shall ensure that no action or omission is taken by any member of the  Group in relation to a pension scheme which has or is reasonably likely to have a  Material Adverse Effect (including, without limitation, the termination or  commencement of winding-up proceedings of any such pension scheme).  (b) Except in respect of the Electricity Supply Pension Scheme (and in particular the  Central Networks Group, the EATL Group and in the case of merger, WPD Group) the  Borrower shall ensure that no member of the Group is an employer (for the purposes of  sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which  is not a money purchase scheme (both terms as defined in the Pension Schemes Act  1993) or “connected” with or an “associate” of (as those terms are used in sections 38  or 43 of the Pensions Act 2004) such an employer.  20.16 Licence  The Borrower will procure that each Distribution Company will at all times:  (a) comply with the terms of its Licence in all material respects;  (b) without prejudice to the generality of Clause (a), comply with the ring fencing  provisions of its Licence in all respects; and  (c) not take any action or make any omission which is reasonably likely to result in the  revocation or termination of its Licence,  in each case if failure to do so would have or would be reasonably likely to have a Material  Adverse Effect.  20.17 Dividends and Distribution  The Borrower (and any other member of the Group) will be permitted, at any time, to:  (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;  (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 Borrower or their Affiliates (not  being members of the Group);   (d) redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so;   

 

  53  EU-DOCS\31160993.15  (e) make a loan to any of the shareholders of the Borrower or their Affiliates (not being  members of the Group); or  (f) repay or prepay any amount (in case or in kind) (including, without limitation, in respect  of principal, interest, capitalised interest, commission, charges and fees) under any loan  from the shareholders of the Borrower or their Affiliates (not being members of the  Group),  provided that, on or prior to the date of such payment, the Borrower has delivered a certificate  to the Agent confirming that, taking into account such payment, Total Net Debt will not exceed  85% and the Borrower will be in compliance with its obligations under Clause 19.3 (Interest  Cover) in each case on each of the two immediately succeeding Calculation Dates.   20.18 Sanctions  (a) The Borrower shall ensure that no member of the Group directly or indirectly:  (i) uses, lends, contributes or otherwise makes available any part of the proceeds  of the Loan:  (A) for the purpose of financing any trade, business or other activities  involving, or for the benefit of, any Restricted Party; or  (B) in any other manner that results in any person being in breach of any  Sanctions or becoming a Restricted Party; or  (ii) funds all or part of any payment in connection with a Finance Document out of  proceeds derived from transactions with a Restricted Party.  (b) The Borrower shall ensure that each member of the Group will ensure that appropriate  policies, procedures, controls and safeguards are in place designed to prevent any action  being taken that would be contrary to Clause (a).  (c) Nothing in this Clause 20.18 shall create or establish an obligation or right for any  member of the Group to the extent that, by agreeing to it, compliance with it, exercising  it, having such obligation or right, or otherwise, would be placed in violation of any  law applicable to it.  (d) The Borrower shall only undertake under this Clause 20.18 to the extent that giving or  complying with such undertaking does not result in any violation of, conflict with or  liability under the Blocking Law.  (e) This Clause 20.18 shall only apply for the benefit of a Finance Party to the extent that  this Clause 20.18 would not result in any violation of, conflict with or liability under  the Blocking Law.   20.19 Anti-corruption law  (a) The Borrower shall not (and shall ensure that no other member of the Group will)  directly or indirectly use the proceeds of the Facility for any purpose which would  breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977  or other similar legislation in other jurisdictions.  (b) The Borrower shall (and shall ensure that each other member of the Group will):  (i) conduct its business in compliance with applicable anti-corruption laws; and  

 

  54  EU-DOCS\31160993.15  (ii) maintain policies and procedures designed to promote and achieve compliance  with such laws.  21. EVENTS OF DEFAULT  21.1 Events of Default  Each of the events set out in this Clause 21 (other than in Clause 21.14 (Acceleration)) is an  Event of Default.  21.2 Non-payment  The Borrower fails to pay any sum payable under any Finance Document when due unless its  failure to pay is caused by:  (a) administrative or technical error; or  (b) a Disruption Event,  and payment is made within five Business Days of its due date.  21.3 Breach of other obligations  (a) The Borrower does not perform or comply with its obligations under Clause 19  (Financial Covenants).  (b) The Borrower does not perform or comply with any of its other obligations under any  Finance Document (other than those referred to in Clause 21.2 (Non- payment) and in  Clause (a)) in any material respect or any representation or warranty by the Borrower  in this Agreement (or in any document delivered under this Agreement) is or proves to  have been incorrect when made or deemed repeated, unless the non-compliance or  circumstance giving rise to the misrepresentation, as the case may be, is capable of  remedy and is not remedied within 20 Business Days of the earlier of the Agent giving  notice requiring the same to be remedied and the Borrower becoming aware of such  non-compliance or misrepresentation, as the case may be.  21.4 Cross-default  (a) Any Financial Indebtedness of the Borrower or any Distribution Company is not paid  when due nor within any originally applicable grace period.  (b) Any Financial Indebtedness of the Borrower or any Distribution Company is declared  to be or otherwise becomes due and payable prior to its specified maturity as a result of  an event of default (however described).  (c) Any commitment for any Financial Indebtedness of the Borrower or any Distribution  Company is cancelled or suspended by a creditor of that member of the Group as a  result of an event of default (however described).  (d) Any creditor of the Borrower or any Distribution Company becomes entitled to declare  any Financial Indebtedness of any member of the Group due and payable prior to its  specified maturity as a result of an event of default (however described).  (e) No Event of Default will occur under this Clause 21.4:  (i) in respect of any Financial Indebtedness in respect of:  

 

  55  EU-DOCS\31160993.15  (A) intra-Group items; or  (B) loans from Affiliates (other than any member of the Group) and/or  shareholder loans to the extent that such loans from Affiliates and/or  shareholder loans are subordinated on the terms set out in a  Subordination Deed; or  (ii) unless and until the aggregate amount of such Financial Indebtedness falling  within Clauses (a) to (d) is more than £20,000,000 or its equivalent in any other  currency or currencies.  21.5 Insolvency  (a) Any of the following occurs in respect of the Borrower:  (i) it is unable to pay its debts generally as they fall due or is declared to be unable  to pay its debts under applicable law;  (ii) it suspends making payments on all or any class of its debts or publicly  announces an intention to do so;  (iii) by reason of actual or anticipated financial difficulties, it begins negotiations  with all or any class of its creditors for the general rescheduling of its  indebtedness; or  (iv) a moratorium is declared in respect of any of its indebtedness.  (b) If a moratorium occurs in respect of the Borrower, the ending of the moratorium will  not remedy any Event of Default caused by the moratorium.  21.6 Insolvency proceedings  (a) Except as provided below, any of the following occurs in respect of the Borrower:  (i) a suspension of payments, a moratorium of any indebtedness or a  reorganisation (by way of voluntary arrangement, scheme of arrangement or  otherwise);  (ii) any person presents a petition for its winding-up, administration or dissolution;  (iii) an order for its winding-up, administration or dissolution is made;  (iv) any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,  receiver, administrative receiver, administrator or similar officer is appointed  in respect of it or any of its assets;  (v) its directors or other officers request the appointment of a liquidator, trustee in  bankruptcy, judicial custodian, compulsory manager, receiver, administrative  receiver, administrator or similar officer;  (vi) enforcement of any Security Interest over any of its assets; or  (vii) any other analogous step or procedure is taken in any jurisdiction.  (b) Clause (a) does not apply to:  

 

  56  EU-DOCS\31160993.15  (i) a petition for winding-up presented by a creditor which is being actively  contested in good faith and with due diligence and with a reasonable prospect  of success;   (ii) a voluntary solvent winding-up, amalgamation, reconstruction or  reorganisation or otherwise part of a solvent scheme of arrangement;  (iii) any action, legal proceedings or other step over or relating to assets (other than,  in the case of Clause 21.6(a)(vi), the shares of any immediate Subsidiary of the  Borrower which is a Holding Company of any Distribution Company) the  aggregate value of which does not exceed £20,000,000 (or its equivalent in  other currencies).  21.7 Creditors’ process  A distress, attachment, execution or other legal process (in each case other than to the extent  such process is frivolous or vexatious) which is material in relation to the Borrower’s ability to  perform its payment obligations under this Agreement is levied, enforced or sued out on or  against the assets of the Borrower and is not discharged or stayed within 30 days.  21.8 Licence  Either:  (a) notice is given to revoke or terminate any Licence unless such termination is being  contested in good faith and such notice is revoked or cancelled within 14 days of notice  being given; or  (b) any Licence is revoked,  in either case, other than in circumstances which permit the Borrower or the relevant  Distribution Company to carry on the distribution business of the relevant Distribution  Company either without a licence as a result of any change in the Act or regulatory regime or  with a new licence, permitting the distribution of electricity in the authorised areas covered by  the relevant Licence, issued under the Act or pursuant to the Utilities Act, 2000.  21.9 Unlawfulness and invalidity  (a) It is or becomes unlawful for the Borrower to perform any of its obligations under the  Finance Documents in any material respect.  (b) Any obligation or obligations of the Borrower under any Finance Documents 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 affects the  interests of the Lenders under the Finance Documents.  21.10 Cessation of business  The Borrower or any Distribution Company 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  permitted by Clause 20.6 (Disposals).  21.11 Repudiation and rescission of agreements  The Borrower rescinds or purports to rescind or repudiates or purports to repudiate a Finance  Document or evidences an intention to rescind or repudiate a Finance Document.  

 

  57  EU-DOCS\31160993.15  21.12 Ownership of the Distribution Companies  The Borrower ceases to own (directly or indirectly) 100% of the shares in any Distribution  Company.  21.13 Expropriation  The authority or ability of the Borrower or any Distribution Company to conduct its business is  limited or 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 the Borrower or any Distribution Company or, in each  case, any of their respective assets, in a manner or to an extent that has or is reasonably likely  to have a Material Adverse Effect.  21.14 Acceleration  If an Event of Default is outstanding, the Agent may, and shall if so directed by the Majority  Lenders, by notice to the Borrower:  (a) cancel the Total Commitments; and/or  (b) declare that all or part of any amounts outstanding under the Finance Documents are:  (i) immediately due and payable; and/or  (ii) payable on demand by the Agent.  Any notice given under this Clause will take effect in accordance with its terms.  22. CONDUCT OF BUSINESS BY THE FINANCE PARTIES  Subject to Clause 11.4 (Tax Credit), no provision of this Agreement will:  (a) interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in  whatever manner it thinks fit;  (b) oblige any Finance Party to investigate or claim any credit, relief, remission or  repayment available to it or the extent, order and manner of any claim; or  (c) oblige any Finance Party to disclose any information relating to its affairs (tax or  otherwise) or any computations in respect of Tax.  23. EVIDENCE AND CALCULATIONS  23.1 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.  23.2 Certificates and determinations  Any certification or determination by a Finance Party of a rate or amount under the Finance  Documents will be, in the absence of manifest error, conclusive evidence of the matters to which  it relates.  23.3 Calculations  

 

  58  EU-DOCS\31160993.15  Any interest or fee accruing under this Agreement accrues from day to day and is calculated on  the basis of the actual number of days elapsed and a year of 365 days fixed.  24. OTHER INDEMNITIES  24.1 Currency indemnity  (a) The Borrower must, as an independent obligation, indemnify each Finance Party  against any loss or liability which that Finance Party incurs as a consequence of:  (i) that Finance Party receiving an amount in respect of the Borrower’s liability  under the Finance Documents; or  (ii) that liability being converted into a claim, proof, judgment or order,  in a currency other than the currency in which the amount is expressed to be payable  under the relevant Finance Document.  (b) Unless otherwise required by law, the Borrower waives any right it may have in any  jurisdiction to pay any amount under the Finance Documents in a currency other than  that in which it is expressed to be payable.  24.2 Other indemnities  The Borrower shall within 15 days of demand indemnify the Agent and each Lender against  any funding or other cost, loss, expense or liability in an amount certified by it in reasonable  detail (together with documentation in support) sustained or incurred by it as a direct result of:  (a) the occurrence of any Event of Default;  (b) (other than by reason of negligence or default by a Finance Party) a Loan not being  made after a Request has been or is deemed to have been delivered; or  (c) the Loan (or part of the Loan) not being prepaid in accordance with a notice of  prepayment given by the Borrower.  24.3 Indemnity to the Agent  The Borrower shall within 15 days of demand indemnify the Agent against any cost, loss or  liability incurred by the Agent (acting reasonably) as a result of:   (a)  investigating any event which it reasonably believes is a Default;  (b) acting or relying on any notice, request or instruction which it reasonably believes to  be genuine, correct and appropriately authorised; or  (c) instructing lawyers, accountants, tax advisers, surveyors or other professional advisers  or experts as permitted under this Agreement.   25. EXPENSES  25.1 Initial costs  The Borrower must pay to the Original Lenders and the Agent promptly on demand the amount  of all costs and expenses (including legal fees, subject to any agreed caps) reasonably incurred  by them in connection with the negotiation, preparation, printing and execution of the Finance  Documents.  

 

  59  EU-DOCS\31160993.15  25.2 Subsequent costs  The Borrower must pay to the Agent promptly on demand the amount of all costs and expenses  (including legal fees, subject to any agreed caps) reasonably incurred by it in connection with:  (a) the negotiation, preparation, printing and execution of any Finance Document (other  than a Transfer Certificate or Assignment Agreement) executed after the date of this  Agreement; and  (b) any amendment, waiver or consent requested by or on behalf of the Borrower or  specifically allowed by this Agreement.  25.3 Enforcement costs  The Borrower must pay to each Finance Party the amount of all costs and expenses (including  legal fees) incurred by it in connection with the enforcement of, or the preservation of any rights  under, any Finance Document.  26. AMENDMENTS AND WAIVERS  26.1 Required consents  (a) Subject to Clause 26.2 (All Lender matters), any term of the Finance Documents may  be amended or waived only with the consent of the Majority Lenders and the Borrower  and any such amendment or waiver will be binding on all Parties.  (b) The Agent may effect, on behalf of any Finance Party, any amendment or waiver  permitted by this Clause 26.  (c) Without prejudice to the generality of Clauses 29.6(c) to 29.6(e) (inclusive) (Rights and  discretions), the Agent may engage, pay for and rely on the services of lawyers in  determining the consent level required for and effecting any amendment, waiver or  consent under this Agreement.  (d) Clause 28.12(b) (Pro rata interest settlement) applies to this Clause 26.  26.2 All Lender matters  (a) Subject to Clause (b), Clause 26.4 (Replacement of Screen Rate) and Clause 26.5  (Excluded Commitments), an amendment, waiver of, or in relation to, any term of any  Finance Document that has the effect of changing or which relates to:  (i) the definition of “Majority Lenders”;  (ii) an extension to the date of payment of any amount under the Finance  Documents;   (iii) a reduction in the Margin or a reduction in the amount of any payment of  principal, interest, fees or commission payable under the Finance Documents,  in each case other than pursuant to Clause 26.4 (Replacement of Screen Rate);  (iv) an increase in any Commitment or the Total Commitments or any requirement  that a cancellation of Commitments reduces the Commitments of the Lenders  rateably under the Facility;  (v) any provision which expressly requires the consent of all the Lenders;  

 

  60  EU-DOCS\31160993.15  (vi) Clause 2.2 (Finance Parties’ rights and obligations), Clause 7.1 (Mandatory  prepayment - illegality), Clause 7.2 (Change of Control), Clause 28 (Changes  to the Lenders), Clause 30 (Sharing among the Finance Parties), Clause 38  (Governing Law), Clause 39 (Enforcement) or this Clause 26; or  (vii) pro rata application of prepayments pursuant to Clause 7.2(b) (Change of  Control) and Clause 7.3(c) (Voluntary prepayment),  shall not be made or given without the prior consent of all the Lenders.  (b) An amendment or waiver which relates to the rights or obligations of the Agent or a  Reference Bank (each in their capacity as such) may not be effected without the consent  of the Agent or that Reference Bank (as the case may be).  26.3 Disenfranchisement of Defaulting Lenders  (a) For so long as a Defaulting Lender has any Available Commitment, in ascertaining:  (i) the Majority Lenders; or  (ii) whether:  (A) any given percentage (including, for the avoidance of doubt,  unanimity) of the Total Commitments under the Facility; or  (B) the agreement of a specified group of Lenders,  has been obtained to approve any request for a consent, waiver, amendment or  other vote of Lenders under the Finance Documents, that Defaulting Lender’s  Commitments will be reduced by the amount of its Available Commitments  and, to the extent that that reduction results in that Defaulting Lender’s  Commitments being zero, that Defaulting Lender shall be deemed not to be a  Lender for the purposes of paragraphs (i) and (ii) above.  (b) For the purposes of this Clause 26.3, the Agent may assume that the following Lenders  are Defaulting Lenders:  (i) any Lender which has notified the Agent that it has become a Defaulting  Lender; and  (ii) any Lender in relation to which it is aware that any of the events or  circumstances referred to in paragraph (a), (b) or (c) of the definition of  “Defaulting Lender” has occurred,  unless it has received notice to the contrary from the Lender concerned (together with  any supporting evidence reasonably requested by the Agent) or the Agent is otherwise  aware that the relevant Lender has ceased to be a Defaulting Lender.  26.4 Replacement of Screen Rate  (a) If a Screen Rate Replacement Event has occurred in relation to LIBOR, any amendment  or waiver which relates to:  (i) providing for the use of a Replacement Benchmark in place of LIBOR; and  (ii)   

 

  61  EU-DOCS\31160993.15  (A) aligning any provision of any Finance Document to the use of that  Replacement Benchmark;  (B) enabling that Replacement Benchmark to be used for the calculation of  interest under this Agreement (including, without limitation, any  consequential changes required to enable that Replacement Benchmark  to be used for the purposes of this Agreement);  (C) implementing market conventions applicable to that Replacement  Benchmark;  (D) providing for appropriate fallback (and market disruption) provisions  for that Replacement Benchmark; or  (E) adjusting the pricing to reduce or eliminate, to the extent reasonably  practicable, any transfer of economic value from one Party to another  as a result of the application of that Replacement Benchmark (and if  any adjustment or method for calculating any adjustment has been  formally designated, nominated or recommended by the Relevant  Nominating Body, the adjustment shall be determined on the basis of  that designation, nomination or recommendation),  may be made with the consent of the Agent (acting on the instructions of the  Majority Lenders) and the Borrower.  (b) If, after the Final Maturity Date, (x) any Loan made pursuant to this Agreement remains  outstanding and (y) this Agreement provides that the rate of interest for a Loan is to be  determined by reference to the Screen Rate for LIBOR:  (i) a Screen Rate Replacement Event shall be deemed to have occurred on that  date in relation to that Screen Rate; and  (ii) the Agent (acting on the instructions of the Majority Lenders) and the Borrower  shall enter into negotiations in good faith with a view to agreeing the use of a  Replacement Benchmark in place of that Screen Rate from and including a date  no later than 30 November 2021.  (c) If any Lender fails to respond to a request for an amendment or waiver described in, or  for any other vote of Lenders in relation to, Clause (a) or Clause (b) above within 15  Business Days (or such longer time period in relation to any request which the Borrower  and the Agent may agree) of that request being made:  (i) its Commitment(s) shall not be included for the purpose of calculating the Total  Commitments under the Facility when ascertaining whether any relevant  percentage of Total Commitments has been obtained to approve that request;  and  (ii) its status as a Lender shall be disregarded for the purpose of ascertaining  whether the agreement of any specified group of Lenders has been obtained to  approve that request.  (d) In this Clause 26:  “Relevant Nominating Body” means any applicable central bank, regulator or other  supervisory authority or a group of them, or any working group or committee sponsored  

 

  62  EU-DOCS\31160993.15  or chaired by, or constituted at the request of, any of them or the Financial Stability  Board.  “Replacement Benchmark” means a benchmark rate which is:  (i) formally designated, nominated or recommended as the replacement for a  Screen Rate by:  (A) the administrator of that Screen Rate (provided that the market or  economic reality that such benchmark rate measures is the same as that  measured by that Screen Rate); or  (B) any Relevant Nominating Body,  and if replacements have, at the relevant time, been formally designated,  nominated or recommended under both paragraphs, the “Replacement  Benchmark” will be the replacement under paragraph (B) above;  (ii) in the opinion of the Majority Lenders and the Borrower, generally accepted in  the international or any relevant domestic syndicated loan markets as the  appropriate successor to a Screen Rate; or  (iii) in the opinion of the Majority Lenders and the Borrower, an appropriate  successor to a Screen Rate.  “Screen Rate Replacement Event” means, in relation to a Screen Rate:  (i) the methodology, formula or other means of determining that Screen Rate has,  in the opinion of the Majority Lenders, and the Borrower materially changed;  (i)   (A)   (1) the administrator of that Screen Rate or its supervisor publicly  announces that such administrator is insolvent; or  (2) information is published in any order, decree, notice, petition  or filing, however described, of or filed with a court, tribunal,  exchange, regulatory authority or similar administrative,  regulatory or judicial body which reasonably confirms that the  administrator of that Screen Rate is insolvent,  provided that, in each case, at that time, there is no successor  administrator to continue to provide that Screen Rate;  (B) the administrator of that Screen Rate publicly announces that it has  ceased or will cease, to provide that Screen Rate permanently or  indefinitely and, at that time, there is no successor administrator to  continue to provide that Screen Rate;  (C) the supervisor of the administrator of that Screen Rate publicly  announces that that Screen Rate has been or will be permanently or  indefinitely discontinued; or  (D) the administrator of that Screen Rate or its supervisor announces that  that Screen Rate may no longer be used; or  

 

  63  EU-DOCS\31160993.15  (ii) the administrator of that Screen Rate determines that that Screen Rate should  be calculated in accordance with its reduced submissions or other contingency  or fallback policies or arrangements and either:  (A) the circumstance(s) or event(s) leading to such determination are not  (in the opinion of the Majority Lenders and the Borrower) temporary;  or  (B) that Screen Rate is calculated in accordance with any such policy or  arrangement for a period no less than 15 Business Days; or  (iii) in the opinion of the Majority Lenders and the Borrower, that Screen Rate is  otherwise no longer appropriate for the purposes of calculating interest under  this Agreement.  26.5 Excluded Commitments  (a) If any Lender fails to respond to a request for a consent, waiver, amendment of or in  relation to any of the terms of any Finance Document or other vote of Lenders under  the terms of this Agreement within 10 Business Days of that request being made (unless  the Borrower and the Agent agree to a longer time period in relation to any request)  then:  (i) its Commitment and/or participation shall not be included for the purpose of  calculating the Total Commitments or participations under the relevant  Facilities when ascertaining whether any relevant percentage (including, for the  avoidance of doubt, unanimity) of Total Commitments and/or participations  has been obtained to approve that request or carry that vote (as applicable); and  (ii) its status as a Lender shall be disregarded for the purpose of ascertaining  whether the agreement of any specified group of Lenders has been obtained to  approve that request or carry that vote (as applicable).  (b) In connection with any request or vote in relation to any consent, waiver, amendment  or breach of or in relation to any part of Clause 17.18 (Sanctions) or Clause 20.18  (Sanctions) of which a Lender notifies the Agent that it does not have the benefit:  (i) its Commitment and/or participation shall not be included for the purpose of  calculating the Total Commitments or participations under the relevant  Facilities when ascertaining whether any relevant percentage (including, for the  avoidance of doubt, unanimity) of Total Commitments and/or participations  has been obtained to approve that request or carry that vote (as applicable); and  (ii) its status as a Lender shall be disregarded for the purpose of ascertaining  whether the agreement of any specified group of Lenders has been obtained to  approve that request or carry that vote (as applicable).  26.6 Waivers and remedies cumulative  No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right  or remedy under a Finance Document shall operate as a waiver of any such right or remedy or  constitute an election to affirm any Finance Document. No election to affirm any Finance  Document on the part of any Finance Party shall be effective unless it is in writing. No single  or partial exercise of any right or remedy shall prevent any further or other exercise or the  exercise of any other right or remedy. The rights and remedies provided in each Finance  Document are cumulative and not exclusive of any rights or remedies provided by law.  

 

  64  EU-DOCS\31160993.15  27. CHANGES TO THE BORROWER  The Borrower may not assign or transfer any of its rights and obligations under the Finance  Documents.  28. CHANGES TO THE LENDERS  28.1 Assignments and transfers by the Lenders  Subject to this Clause 28, a Lender (an “Existing Lender”) may:  (a) assign any of its rights;   (b) transfer by novation any of its rights and/or obligations; and/or  (c) enter into a sub-participation in respect of its rights,  under the Finance Documents 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 (a “New Lender”).  28.2 Borrower consent  (a) The consent of the Borrower is required for any (i) assignment; (ii) transfer; or (iii) sub- participation involving the transfer of voting rights (a “Voting Sub-participation”)  unless the assignment, transfer or Voting Sub-participation is:  (i) to another Lender or an Affiliate of any Lender; or  (ii) made at a time when an Event of Default is continuing.   (b) The consent of the Borrower must not be unreasonably withheld or delayed. The  Borrower will be deemed to have given its consent 10 Business Days after the Existing  Lender has requested it unless consent is expressly refused by the Borrower within that  time.   (c) Notwithstanding the foregoing, the prior consent of the Borrower shall be required (and  the provision of Clause (b) shall not apply) if the assignment or transfer or Voting Sub- participation is to a person which is (i) a Competitor, (ii) a Distressed Debt Fund or (iii)  a Hedge Fund, unless in the case of an assignment or transfer to a Distressed Debt Fund  or a Hedge Fund only, such assignment or transfer is made when an Event of Default  is continuing.  28.3 Other conditions of assignment or transfer  (a) An assignment will only be effective on:   (i) receipt by the Agent in the Assignment Agreement of written confirmation  from the New Lender (in form and substance satisfactory to the Agent) that the  New Lender will assume the same obligations to the other Finance Parties as it  would have been under had it been an Original Lender; and  (ii) performance by the Agent of all necessary “know your customer” or other  similar checks under all applicable laws and regulations 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.   

 

  65  EU-DOCS\31160993.15  (b) A transfer will only be effective if the procedure set out in Clause 28.5 (Procedure for  transfer) is complied with.   (c) Each New Lender must:   (a) enter into a Confidentiality Undertaking prior to entering into any assignment  or transfer pursuant to this Clause 28; and  (b) confirm to the Borrower and the relevant Existing Lender in its Transfer  Certificate, Assignment Agreement or, in the case of a Voting Sub- participation, otherwise in writing that it is not an entity referred to in Clause  28.2(c) (Borrower consent).   (d) The Existing Lender must provide the Borrower with details of the full legal name of  the recipient of any voting rights where a Voting Sub-participation occurs.  (e) Any transfer by an Existing Lender shall be of a minimum amount of £10,000,000 and  shall not be permitted if it would result in the aggregate Commitments of any Lender  being less than £10,000,000 (unless, in each case, the Existing Lender is transferring  its entire Commitment).  (f) Each New Lender, by executing the relevant Transfer Certificate or Assignment  Agreement, confirms, for the avoidance of doubt, that the Agent has authority to  execute on its behalf any amendment or waiver that has been approved by or on behalf  of the requisite Lender or Lenders in accordance with this Agreement, on or prior to the  date on which the transfer or assignment becomes effective in accordance with this  Agreement, and that it is bound by that decision to the same extent as the Existing  Lender would have been had it remained a Lender.  (g) The Agent shall not be bound to verify or monitor the status or eligibility of the New  Lender including whether it is an entity referred to in Clause 28.2(c) (Borrower  consent). The Agent shall be entitled to rely on the confirmation of the New Lender  provided in the relevant executed Transfer Certificate or Assignment Agreement in  respect of such matters.  28.4 Assignment or transfer fee  The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to  the Agent (for its own account) a fee of £2,500.  28.5 Procedure for transfer   (a) Subject to the conditions set out in Clause 28.2 (Borrower consent) and Clause 28.3   (Other conditions of assignment or transfer), a transfer is effected in accordance with  Clause (c) below when the Agent executes an otherwise duly completed Transfer  Certificate delivered to it by the Existing Lender and the New Lender and the Agent  makes a corresponding entry in the Register pursuant to Clause 28.7 (The Register).  The Agent shall, subject to Clause (b) below, as soon as reasonably practicable after  receipt by it of a duly completed Transfer Certificate appearing on its face to comply  with the terms of this Agreement and delivered in accordance with the terms of this  Agreement, execute that Transfer Certificate, and make such corresponding entry in the  Register.  (b) The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the  Existing Lender and the New Lender and make a corresponding entry in the Register  once it is satisfied that it has complied with all necessary “know your customer” or  

 

  66  EU-DOCS\31160993.15  other similar checks under all applicable laws and regulations in relation to the transfer  to such New Lender.  (c) Subject to Clause 28.12(b) (Pro rata interest settlement), on the Transfer Date:  (i) to the extent that in the Transfer Certificate the Existing Lender seeks to transfer  by novation its rights and obligations under the Finance Documents, the  Borrower and the Existing Lender shall be released from further obligations  towards one another under the Finance Documents and their respective rights  against one another under the Finance Documents shall be cancelled (being the  “Discharged Rights and Obligations”);  (ii) the Borrower and the New Lender shall assume obligations towards one  another and/or acquire rights against one another which differ from the  Discharged Rights and Obligations only insofar as the Borrower and the New  Lender have assumed and/or acquired the same in place of the Borrower and  the Existing Lender;  (iii) the Agent, the New Lender and the other Lenders shall acquire the same rights  and assume the same obligations between themselves as they would have  acquired and assumed had the New Lender been the Original Lender with the  rights and/or obligations acquired or assumed by it as a result of the transfer,  and to that extent that the Agent and the Existing Lender shall each be released  from further obligations to each other under the Finance Documents; and  (iv) the New Lender shall become a Party as a Lender.  28.6 Procedure for assignment  (a) Subject to the conditions set out in Clause 28.2 (Borrower consent) and Clause 28.3   (Other conditions of assignment or transfer), an assignment may be effected in  accordance with Clause (c) below when the Agent executes an otherwise duly  completed Assignment Agreement delivered to it by the Existing Lender and the New  Lender. The Agent shall, subject to paragraph (b) below, as soon as reasonably  practicable after receipt by it of a duly completed Assignment Agreement appearing on  its face to comply with the terms of this Agreement and delivered in accordance with  the terms of this Agreement, execute that Assignment Agreement.  (b) The Agent shall only be obliged to execute an Assignment Agreement delivered to it  by the Existing Lender and the New Lender once it is satisfied it has complied with all  necessary “know your customer” or other similar checks under all applicable laws and  regulations in relation to the assignment to such New Lender.  (c) Subject to Clause 28.12(b) (Pro rata interest settlement), on the Transfer Date:  (i) the Existing Lender will assign absolutely to the New Lender its rights under  the Finance Documents expressed to be the subject of the assignment in the  Assignment Agreement;  (ii) the Existing Lender will be released by the Borrower and the other Finance  Parties from the obligations owed by it (the “Relevant Obligations”) and  expressed to be the subject of the release in the Assignment Agreement; and  (iii) the New Lender shall become a Party as a Lender and will be bound by  obligations equivalent to the Relevant Obligations.  

 

  67  EU-DOCS\31160993.15  (d) Lenders may utilise procedures other than those set out in this Clause 28.6 to assign  their rights under the Finance Documents (but not without the consent of the Borrower  or unless in accordance with Clause 28.5 (Procedure for transfer), to obtain a release  by the Borrower from the obligations owed to the Borrower by the Lenders nor the  assumption of equivalent obligations by a New Lender) provided that they comply  with the conditions set out in Clause 28.2 (Borrower consent) and Clause 28.3  (Other  conditions of assignment or transfer).  28.7 The Register  The Agent, acting for these purposes solely as an agent of the Borrowers, shall maintain a  register (the “Register”) for the recordation of the names and addresses of the Lenders and the  respective amounts of the Commitments and Loans of each Lender from time to time. The  Agent shall update the Register to reflect any assignments or transfers made pursuant to this  Clause 28 and, notwithstanding anything else in this Agreement, such assignments or transfers  are not effective until reflected in the Register. Absent manifest error, the entries in the Register  shall be conclusive and binding for all purposes and the Borrower, the Agent and the Lenders  shall treat each person whose name is recorded in the Register as Lender hereunder for all  purposes of this Agreement. The Agent shall make a copy of the Register available for  inspection by the Borrower and the Borrowers upon reasonable prior notice.   28.8 Limitation of responsibility of Existing Lender  (a) Unless expressly agreed to the contrary, an Existing Lender is not responsible to a New  Lender for the legality, validity, adequacy, accuracy, completeness or performance of:  (i) any Finance Document or any other document; or  (ii) any statement or information (whether written or oral) made in or supplied in  connection with any Finance Document,  and any representations or warranties implied by law are excluded.  (b) The New Lender confirms to the Existing Lender that it:  (i) has made, and will continue to make, its own independent appraisal of all risks  arising under or in connection with the Finance Documents (including the  financial condition and affairs of the Borrower and its related entities and the  nature and extent of any recourse against any Party or its assets) in connection  with its participation in this Agreement; and  (ii) has not relied exclusively on any information supplied to it by the Existing  Lender in connection with any Finance Document.  (c) Nothing in any Finance Document requires an Existing Lender to:  (i) accept a re-transfer or re-assignment from a New Lender of any of the rights  and obligations assigned or transferred under this Clause; or  (ii) support any losses incurred by the New Lender by reason of the non-  performance by the Borrower of its obligations under any Finance Document  or otherwise.  28.9 Costs resulting from change of Lender or Facility Office  If:  

 

  68  EU-DOCS\31160993.15  (a) a Lender assigns or transfers any of its rights and 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, the Borrower would be obliged to make a payment to the New Lender or Lender  acting through its new Facility Office under Clause 11 (Tax gross-up and indemnities),  Clause 12 (Increased costs) or Clause 10.3 (Market disruption),  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.  28.10 Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to  Borrower  The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate  or an Assignment Agreement, send to the Borrower a copy of that Transfer Certificate or  Assignment Agreement.  28.11 Security over Lenders’ rights  In addition to the other rights provided to the Lenders under this Clause 28, each Lender may  without consulting with or obtaining consent from the Borrower, at any time charge, assign or  otherwise create security in or over (whether by way of collateral or otherwise) all or any of its  rights under any Finance Document to secure obligations of that Lender including, without  limitation:  (a) any charge, assignment or other security to secure obligations to a federal reserve,  central bank, governmental authority, agency or department (including Her Majesty’s  Treasury); and  (b) in the case of any Lender which is a fund, any charge, assignment or other security  granted to any holders (or trustee or representatives of holders) of obligations owed, or  securities issued, by that Lender as security for those obligations or securities,  except that no such charge, assignment or security shall:  (i) release a Lender from any of its obligations under the Finance Documents or  substitute the beneficiary of the relevant charge, assignment or other security  for the relevant Lender as a party to any of the Finance Documents; or  (ii) require any payments to be made by the Borrower or grant to any person any  more extensive rights than those required to be made or granted to the relevant  Lender under the Finance Documents.  28.12 Pro rata interest settlement  (a) If the Agent has notified the Lenders that it is able to distribute interest payments on a  “pro rata” basis to Existing Lenders and New Lenders then (in respect of any transfer  pursuant to Clause 28.5 (Procedure for transfer) or any assignment pursuant to Clause  28.6 (Procedure for assignment) the Transfer Date of which, in each case, is after the  date of such notification and is not on the last day of an Interest Period):   (i) any interest or fees in respect of the relevant participation which are expressed  to accrue by reference to the lapse of time shall continue to accrue in favour of  

 

  69  EU-DOCS\31160993.15  the Existing Lender up to but excluding the Transfer Date (“Accrued  Amounts”) and shall become due and payable to the Existing Lender (without  further interest accruing on them) on the last day of the current Interest Period;  and  (ii) the rights assigned or transferred by the Existing Lender will not include the  right to the Accrued Amounts so that, for the avoidance of doubt:  (A) when the Accrued Amounts become payable, those Accrued Amounts  will be payable to the Existing Lender; and  (B) the amount payable to the New Lender on that date will be the amount  which would, but for the application of this Clause 28.12, have been  payable to it on that date, but after deduction of the Accrued Amounts.   (b) An Existing Lender which retains the right to the Accrued Amount pursuant to this  Clause 28.12 but which does not have a Commitment shall be deemed not to be a  Lender for the purposes of ascertaining whether the agreement of a specified group of  Lenders has been obtained to approve any request for a consent, waiver, amendment or  other vote of Lenders under the Finance Documents.   29. ROLE OF THE AGENT  29.1 Appointment of the Agent  (a) Each of the Lenders appoints the Agent to act as its agent under and in connection with  the Finance Documents.  (b) Each of the Lenders authorises the Agent to perform the duties, obligations and  responsibilities and 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.  (c) Each of the Lenders hereby exempts the Agent from the restrictions pursuant to section  181 Civil Code (Bürgerliches Gesetzbuch) and similar restrictions applicable to it  pursuant to any other applicable law, in each case to the extent legally possible to such  Finance Party. A Lender which cannot grant such exemption shall notify the Agent  accordingly and, upon request of the Agent, either act in accordance with the terms of  this Agreement and/or any other Finance Document as required pursuant to this  Agreement and/or such other Finance Document or grant a special power of attorney  to a party acting on its behalf, in a manner that is not prohibited pursuant to section 181  of the German Civil Code (Bürgerliches Gesetzbuch) and/or any other applicable laws.  29.2 Instructions  (a) The Agent shall:  (i) unless a contrary indication appears in a Finance Document, exercise or refrain  from exercising any right, power, authority or discretion vested in it as Agent  in accordance with any instructions given to it by:  (A) all Lenders if the relevant Finance Document stipulates that the matter  is an all Lender decision; and  (B) in all other cases, the Majority Lenders; and  

 

  70  EU-DOCS\31160993.15  (ii) not be liable for any act (or omission) if it acts (or refrains from acting) in  accordance with paragraph (i) above.  (b) The Agent shall be entitled to request instructions, or clarification of any instruction,  from the Majority Lenders (or, if the relevant Finance Document stipulates that the  matter is a decision for any other Lender or group of Lenders, from that Lender or group  of Lenders) as to whether, and in what manner, it should exercise or refrain from  exercising any right, power, authority or discretion and the Agent may refrain from  acting unless and until it receives any such instructions or clarification that it has  requested.  (c) Save in the case of decisions stipulated to be a matter for any other Lender or group of  Lenders under the relevant Finance Document and unless a contrary indication appears  in a Finance Document, any instructions given to the Agent by the Majority Lenders  shall override any conflicting instructions given by any other Parties and will be binding  on all Finance Parties.  (d) The Agent may refrain from acting in accordance with any instructions of any Lender  or group of Lenders until it has received any indemnification and/or security that it may  in its discretion require (which may be greater in extent than that contained in the  Finance Documents and which may include payment in advance) for any cost, loss or  liability which it may incur in complying with those instructions.  (e) In the absence of instructions, the Agent may act (or refrain from acting) as it considers  to be in the best interest of the Lenders.  (f) 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.    29.3 Duties of the Agent  (a) The Agent’s duties under the Finance Documents are solely mechanical and  administrative in nature.  (b) Subject to Clause (c) below, 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.  (c) Without prejudice to Clause 28.10 (Copy of Transfer Certificate, Assignment  Agreement to Company), Clause (b) above shall not apply to any Transfer Certificate  or to any Assignment Agreement.  (d) 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.  (e) 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.  (f) 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) under this Agreement it  shall promptly notify the other Finance Parties.  

 

  71  EU-DOCS\31160993.15  (g) The Agent shall, within five Business Days of a request by the Borrower, provide to  the Borrower a list of the current Lenders, their respective Commitments and contact  details for any communication to be made or document to be delivered under or in  connection with the Finance Documents, provided that the Agent shall have no  obligation to provide such list more than once every Month.  (h) The Agent shall have only those duties, obligations and responsibilities expressly  specified in the Finance Documents to which it is expressed to be a party (and no others  shall be implied).  29.4 No fiduciary duties  (a) Nothing in any Finance Document constitutes the Agent as a trustee or fiduciary of any  other person.  (b) The Agent shall not be bound to account to any Lender for any sum or the profit element  of any sum received by it for its own account.  29.5 Business with the Group  The Agent may accept deposits from, lend money to and generally engage in any kind of  banking or other business with any member of the Group.  29.6 Rights and discretions  (a) The Agent may:  (i) rely on any representation, communication, notice or document believed by it  to be genuine, correct and appropriately authorised;  (ii) assume that:  (A) any instructions received by it from the Majority Lenders, any Lenders  or any group of Lenders are duly given in accordance with the terms of  the Finance Documents; and  (B) unless it has received notice of revocation, that those instructions have  not been revoked; and  (iii) rely on a certificate from any person:  (A) as to any matter of fact or circumstance which might reasonably be  expected to be within the knowledge of that person; or  (B) to the effect that such person approves of any particular dealing,  transaction, step, action or thing,  as sufficient evidence that that is the case and, in the case of paragraph (A)  above, may assume the truth and accuracy of that certificate.  (b) The Agent may assume (unless it has received notice to the contrary in its capacity as  agent for the Lenders) that:  (i) no Default has occurred (unless it has actual knowledge of a Default arising  under Clause 21.2 (Non-payment)); and  

 

  72  EU-DOCS\31160993.15  (ii) any right, power, authority or discretion vested in any Party or any group of  Lenders has not been exercised.  (c) The Agent may engage and pay for the advice or services of any lawyers, accountants,  tax advisers, surveyors or other professional advisers or experts.  (d) Without prejudice to the generality of paragraph (c) above or (e) below, the Agent may  at any time engage and pay for the services of any lawyers to act as independent counsel  to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent  in its reasonable opinion deems this to be necessary or desirable.  (e) The Agent may rely on the advice or services of any lawyers, accountants, tax advisers,  surveyors or other professional advisers or experts (whether obtained by the Agent or  by any other Party) and shall not be liable for any damages, costs or losses to any  person, any diminution in value or any liability whatsoever arising as a result of it so  relying.  (f) The Agent may act in relation to the Finance Documents through its officers, employees  and agents and the Agent shall not:  (i) be liable for any error of judgment made by any such person; or  (ii) be bound to supervise, or be in any way responsible for any loss incurred by  reason of misconduct, omission or default on the part of any such person,  unless such error or such loss was directly caused by the Agent’s gross negligence or  wilful misconduct.  (g) Unless a Finance Document expressly provides otherwise, the Agent may disclose to  any other Party any information it reasonably believes it has received as agent under  this Agreement.  (h) Without prejudice to the generality of paragraph (g) above, the Agent:  (i) may disclose; and  (ii) on the written request of the Borrower or the Majority Lenders shall, as soon  as reasonably practicable, disclose,  the identity of a Defaulting Lender to the Borrower and to the other Finance Parties.  (i) Notwithstanding any other provision of any Finance Document to the contrary, the  Agent is not 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.  (j) Notwithstanding any provision of any Finance Document to the contrary, the Agent is  not obliged to expend or risk its own funds or otherwise incur any financial liability in  the performance of its duties, obligations or responsibilities or the exercise of any right,  power, authority or discretion, if it has grounds for believing that the repayment of such  funds or adequate indemnity against, or security for, such risk or liability is not  reasonably assured to it.  (k) The Agent may at any time appoint an Affiliate, agent, attorney-in-fact or sub-agent (a  “Sub-Agent”) as deemed necessary by the Agent, to exercise all or a part of its rights,  powers and duties under this Agreement or any other Finance Document (and  Clause 29.10 (Lenders’ indemnity to the Agent) shall also apply to a Sub-Agent in the  

 

  73  EU-DOCS\31160993.15  performance of any activity under this Clause provided that no Lender shall be  required to so indemnify such Sub-Agent where: (i) any cost, loss or liability arises by  reason of such Sub-Agent’s gross negligence or wilful misconduct; or (ii) if the claim  is based on the fraud of such Sub-Agent).  29.7 Responsibility for documentation  The Agent is not responsible or liable for:  (a) the adequacy, accuracy or completeness of any information (whether oral or written)  supplied by the Agent, the Borrower or any other person in or in connection with any  Finance Document or the transactions contemplated in the Finance Documents or any  other agreement, arrangement or document entered into, made or executed in  anticipation of, under or in connection with any Finance Document;  (b) the legality, validity, effectiveness, adequacy or enforceability of any Finance  Document or any other agreement, arrangement or document entered into, made or  executed in anticipation of, under or in connection with any Finance Document; or  (c) any determination as to whether any information provided or to be provided to any  Finance Party is non-public information, the use of which may be regulated or  prohibited by applicable law or regulation relating to insider dealing or otherwise.  29.8 No duty to monitor  The Agent shall not be bound to enquire:  (a) whether or not any Default has occurred;  (b) as to the performance, default or any breach by any Party of its obligations under any  Finance Document; or  (c) whether any other event specified in any Finance Document has occurred.  29.9 Exclusion of liability  (a) Without limiting paragraph (b) below (and without prejudice to any other provision of  any Finance Document excluding or limiting the liability of the Agent), the Agent will  not be liable (including, without limitation, for negligence or any other category of  liability whatsoever) for:  (i) any damages, costs or losses to any person, any diminution in value, or any  liability whatsoever arising as a result of taking or not taking any action under  or in connection with any Finance Document, unless directly caused by its  gross negligence or wilful misconduct;  (ii) exercising, or not exercising, any right, power, authority or discretion given to  it by, or in connection with, any Finance Document or any other agreement,  arrangement or document entered into, made or executed in anticipation of,  under or in connection with, any Finance Document other than by reason of its  gross negligence or wilful misconduct; or  (iii) without prejudice to the generality of paragraphs (i) and (ii) above, any  damages, costs or losses to any person, any diminution in value or any liability  whatsoever (but not including any claim based on the fraud of the Agent)  arising as a result of:  

 

  74  EU-DOCS\31160993.15  (A) any act, event or circumstance not reasonably within its control; or  (B) the general risks of investment in, or the holding of assets in, any  jurisdiction,  including (in each case and without limitation) such damages, costs, losses,  diminution in value or liability arising as a result of:  nationalisation,  expropriation or other governmental actions; any regulation, currency  restriction, devaluation or fluctuation; market conditions affecting the  execution or settlement of transactions or the value of assets (including any  Disruption Event); breakdown, failure or malfunction of any third party  transport, telecommunications, computer services or systems; natural disasters  or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial  action.  (b) No Party (other than the Agent) may take any proceedings against any officer,  employee or agent of the Agent in respect of any claim it might have against the Agent  or in respect of any act or omission of any kind by that officer, employee or agent in  relation to any Finance Document, and any officer, employee or agent of the Agent may  rely on this Clause 29.9 subject to Clause 1.3 (Third Party Rights) and the provisions  of the Third Parties Act.  (c) The Agent will not be liable for any delay (or any related consequences) in crediting an  account with an amount required under the Finance Documents to be paid by the Agent  if the Agent has taken all necessary steps as soon as reasonably practicable to comply  with the regulations or operating procedures of any recognised clearing or settlement  system used by the Agent for that purpose.  (d) Nothing in this Agreement shall oblige the Agent to carry out:  (i) any “know your customer” or other checks in relation to any person; or  (ii) any check on the extent to which any transaction contemplated by this  Agreement might be unlawful for any Lender,  on behalf of any Lender and each Lender confirms to the Agent 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.  (e) Without prejudice to any provision of any Finance Document excluding or limiting the  Agent’s liability, any liability of the Agent arising under or in connection with any  Finance Document shall be limited to the amount of actual loss which has been finally  judicially determined to have been suffered (as determined by reference to the date of  default of the Agent or, if later, the date on which the loss arises as a result of such  default), but without reference to any special conditions or circumstances known to the  Agent at any time which increase the amount of that loss. In no event shall the Agent  be liable for any loss of profits, goodwill, reputation, business opportunity or  anticipated saving, or for special, punitive, indirect or consequential damages, whether  or not the Agent has been advised of the possibility of such loss or damages.  29.10 Lenders’ indemnity to the Agent  Each Lender shall (in proportion to its share of the Total Commitments or, if the Total  Commitments are then zero, to its share of the Total Commitments immediately prior to their  reduction to zero) indemnify the Agent, within three Business Days of demand, against any  cost, loss or liability (including, without limitation, for negligence or any other category of  

 

  75  EU-DOCS\31160993.15  liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross  negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to  Clause 15.11 (Disruption to payment systems etc.), notwithstanding the Agent’s negligence,  gross negligence or any other category of liability whatsoever but not including any claim based  on the fraud of the Agent) in acting as Agent under the Finance Documents (unless the Agent  has been reimbursed by the Borrower pursuant to a Finance Document).  29.11 Resignation of the Agent  (a) The Agent may resign and appoint one of its Affiliates as successor by giving notice to  the Lenders and the Borrower.  (b) Alternatively, the Agent may resign by giving 30 days’ notice to the Lenders and the  Borrower, in which case the Majority Lenders (after consultation with the Borrower)  may appoint a successor Agent.  (c) If the Majority Lenders have not appointed a successor Agent in accordance with  paragraph (b) above within 20 days after the relevant notice of resignation was given,  the retiring Agent (after consultation with the Borrower) may appoint a successor  Agent.  (d) If the Agent wishes to resign because (acting reasonably) it has concluded that it is no  longer appropriate for it to remain as agent and the Agent is entitled to appoint a  successor Agent under paragraph (c) above, the Agent may (if it concludes (acting  reasonably) that it is necessary to do so in order to persuade the proposed successor  Agent to become a party to this Agreement as Agent) agree with the proposed successor  Agent amendments to this Clause 29 and any other term of this Agreement dealing with  the rights or obligations of the Agent consistent with then current market practice for  the appointment and protection of corporate trustees and those amendments will bind  the Parties.  (e) The retiring Agent shall make available to the successor Agent such documents and  records and provide such assistance as the successor Agent may reasonably request for  the purposes of performing its functions as Agent under the Finance Documents.    (f) The Agent’s resignation notice shall only take effect upon the appointment of a  successor.  (g) Upon the appointment of a successor, the retiring Agent shall be discharged from any  further obligation in respect of the Finance Documents (other than its obligations under  paragraph (e) above) but shall remain entitled to the benefit of Clause 24.3 (Indemnity  to the Agent) and this Clause 29.  Any successor and each of the other Parties shall have  the same rights and obligations among themselves as they would have had if such  successor had been an original Party.  (h) After consultation with the Borrower, the Majority Lenders may, by notice to the Agent,  require it to resign in accordance with paragraph (b) above. In this event, the Agent  shall resign in accordance with paragraph (b) above.  (i) The Agent shall resign in accordance with paragraph (b) above (and, to the extent  applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to  paragraph (c) above) if on or after the date which is three months before the earliest  FATCA Application Date relating to any payment to the Agent under the Finance  Documents, either:  

 

  76  EU-DOCS\31160993.15  (i) the Agent fails to respond to a request under Clause 11.8 (FATCA Information)  and the Borrower or a Lender reasonably believes that the Agent will not be (or  will have ceased to be) a FATCA Exempt Party on or after that FATCA  Application Date;  (ii) the information supplied by the Agent pursuant to Clause 11.8 (FATCA  Information) indicates that the Agent will not be (or will have ceased to be) a  FATCA Exempt Party on or after that FATCA Application Date; or  (iii) the Agent notifies the Borrower and the Lenders that the Agent will not be (or  will have ceased to be) a FATCA Exempt Party on or after that FATCA  Application Date,  and (in each case) the Borrower or a Lender believes that a Party may be required to  make a FATCA Deduction that would not be required if the Agent were a FATCA  Exempt Party, and the Borrower or that Lender, by notice to the Agent, requires it to  resign.  29.12 Replacement of the Agent  (a) After consultation with the Borrower, the Majority Lenders may, by giving 30 days’  notice to the Agent (or, at any time the Agent is an Impaired Agent, by giving any  shorter notice determined by the Majority Lenders) replace the Agent by appointing a  successor Agent (acting through an office in London).  (b) The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the  expense of the Lenders) make available to the successor Agent such documents and  records and provide such assistance as the successor Agent may reasonably request for  the purposes of performing its functions as Agent under the Finance Documents.  (c) The appointment of the successor Agent shall take effect on the date specified in the  notice from the Majority Lenders to the retiring Agent. As from that date, the retiring  Agent shall be discharged from any further obligation in respect of the Finance  Documents (other than its obligations under paragraph (b) above) but shall remain  entitled to the benefit of this Clause 29 (and any agency fees for the account of the  retiring Agent shall cease to accrue from (and shall be payable on) that date).  (d) Any successor Agent and each of the other Parties shall have the same rights and  obligations among themselves as they would have had if such successor had been an  original Party.  29.13 Confidentiality  (a) In acting as agent for the Finance Parties, the Agent shall be regarded as acting through  its agency division, which shall be treated as a separate entity from any other of its  divisions or departments.  (b) If information is received by another division or department of the Agent, it may be  treated as confidential to that division or department and the Agent shall not be deemed  to have notice of it.  29.14 Relationship with the Lenders  (a) Subject to Clause 28.12 (Pro rata interest settlement), the Agent may treat the person  shown in its records as Lender at the opening of business (in the place of the Agent’s  

 

  77  EU-DOCS\31160993.15  principal office as notified to the Finance Parties from time to time) as the Lender acting  through its Facility Office:  (i) entitled to or liable for any payment due under any Finance Document on that  day; and  (ii) entitled to receive and act upon any notice, request document or communication  or make any decision or determination under any Finance Document made or  delivered on that day,  unless it has received not less than five Business Days’ prior notice from that Lender  to the contrary in accordance with the terms of this Agreement.  Any Lender may by notice to the Agent appoint a person to receive on its behalf all  notices, communications, information and documents to be made or despatched to that  Lender under the Finance Documents. Such notice shall contain the address and (where  communication by electronic mail or other electronic means is permitted under Clause  36.5 (Electronic communication)) electronic mail address and/or any other information  required to enable the transmission of information by that means (and, in each case, the  department or officer, if any, for whose attention communication is to be made) and be  treated as a notification of a substitute address, electronic mail address (or such other  information), department and officer by that Lender for the purposes of Clause 36.2  (Contact details) and Clause 36.5 (Electronic communication), and the Agent shall be  entitled to treat such person as the person entitled to receive all such notices,  communications, information and documents as though that person were that Lender.  29.15 Credit appraisal by the Lenders  Without affecting the responsibility of the Borrower for information supplied by it or on its  behalf in connection with any Finance Document, each Lender confirms to the Agent that it has  been, and will continue to be, solely responsible for making its own independent appraisal and  investigation of all risks arising under or in connection with any Finance Document, including  but not limited to:  (a) the financial condition, status and nature of each member of the Group;  (b) the legality, validity, effectiveness, adequacy or enforceability of any Finance  Document and any other agreement, arrangement or document entered into, made or  executed in anticipation of, under or in connection with any Finance Document;  (c) whether that Lender has recourse, and the nature and extent of that recourse, against  any Party or any of its respective assets under or in connection with any Finance  Document, the transactions contemplated by the Finance Documents or any other  agreement, arrangement or document entered into, made or executed in anticipation of,  under or in connection with any Finance Document; and  (d) the adequacy, accuracy or completeness of any information provided by the Agent, any  Party or by other person under or in connection with any Finance Document, the  transactions contemplated by any Finance Document or any other agreement,  arrangement or document entered into, made or executed in anticipation of, under or in  connection with any Finance Document.  29.16 Deduction from amounts payable by the Agent  If any Party owes an amount to the Agent under the Finance Documents, the Agent may, after  giving notice to that Party, deduct an amount not exceeding that amount from any payment to  

 

  78  EU-DOCS\31160993.15  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.  29.17 Role of Reference Banks  (a) No Reference Bank is under any obligation to provide a quotation or any other  information to the Agent.  (b) No Reference Bank will be liable for any action taken by it under or in connection with  any Finance Document, or for any quotation supplied by it to the Agent, unless directly  caused by its gross negligence or wilful misconduct.  (c) No Party (other than the relevant Reference Bank) may take any proceedings against  any officer, employee or agent of any Reference Bank in respect of any claim it might  have against that Reference Bank or in respect of any act or omission of any kind by  that officer, employee or agent in relation to any Finance Document, or to any quotation  supplied by that Reference Bank to the Agent, and any officer, employee or agent of  each Reference Bank may rely on this Clause 29.17 subject to Clause 1.3 (Third Party  Rights) and the provisions of the Third Parties Act.  29.18 Third party Reference Banks  A Reference Bank which is not a Party may rely on Clause 29.17 (Role of Reference Banks),  and Clause 32 (Confidentiality of Funding Rates) subject to Clause 1.3 (Third Party Rights) and  the provisions of the Third Parties Act.  30. SHARING AMONG THE FINANCE PARTIES  30.1 Payments to Finance Parties  If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from the  Borrower other than in accordance with Clause 15 (Payment Mechanics) (a “Recovered  Amount”) and applies that amount to a payment due under the Finance Documents, then:  (a) the Recovering Finance Party shall, within three Business Days, notify details of the  receipt or recovery to the Agent;  (b) the Agent shall determine whether the receipt or recovery is in excess of the amount  the Recovering Finance Party would have been paid had the receipt or recovery been  received or made by the Agent and distributed in accordance with Clause 15 (Payment  Mechanics), without taking account of any Tax which would be imposed on the Agent  in relation to the receipt, recovery or distribution; and  (c) the Recovering Finance Party shall, within three Business Days of demand by the  Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or  recovery less any amount which the Agent determines may be retained by the  Recovering Finance Party as its share of any payment to be made, in accordance with  Clause 15.6 (Partial payments).  30.2 Redistribution of payments  The Agent shall treat the Sharing Payment as if it had been paid by the Borrower and distribute  it between the Finance Parties (other than the Recovering Finance Party) (the “Sharing Finance  

 

  79  EU-DOCS\31160993.15  Parties”) in accordance with Clause 15.6 (Partial payments) towards the obligations of the  Borrower to the Sharing Finance Parties.  30.3 Recovering Finance Party’s rights  On a distribution by the Agent under Clause 30.2 (Redistribution of payments) of a payment  received by a Recovering Finance Party from the Borrower, as between the Borrower and the  Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment  will be treated as not having been paid by the Borrower.  30.4 Reversal of redistribution  If any part of the Sharing Payment received or recovered by a Recovering Finance Party  becomes repayable and is repaid by that Recovering Finance Party, then:  (a) each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the  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) (the “Redistributed  Amount”); and  (b) as between the Borrower and each relevant Sharing Finance Party, an amount equal to  the relevant Redistributed Amount will be treated as not having been paid by the  Borrower.  30.5 Exceptions  (a) This Clause 30 shall not apply to the extent that the Recovering Finance Party would  not, after making any payment pursuant to this Clause 30, have a valid and enforceable  claim against the Borrower.  (b) A Recovering Finance Party is not obliged to share with any other Finance Party any  amount which the Recovering Finance Party has received or recovered as a result of  taking legal or arbitration proceedings, if:  (i) it notified that other Finance Party of the legal or arbitration proceedings; and  (ii) that other Finance Party had an opportunity to participate in those legal or  arbitration proceedings but did not do so as soon as reasonably practicable  having received notice, and did not take separate legal or arbitration  proceedings.  31. CONFIDENTIALITY AND DISCLOSURE OF INFORMATION  31.1 Confidential Information  Each Finance Party agrees to keep all Confidential Information confidential and not to disclose  it to anyone, save to the extent permitted by Clause 31.2 (Disclosure of Confidential  Information) and Clause 31.3 (Disclosure to numbering service providers), and to ensure that  all Confidential Information is protected with security measures and a degree of care that would  apply to its own confidential information.  31.2 Disclosure of Confidential Information  Any Finance Party may disclose:  

 

  80  EU-DOCS\31160993.15  (a) to any of its Affiliates and Related Funds and any of its or their officers, directors,  employees, professional advisers, auditors, partners and Representatives such  Confidential Information as that Finance Party shall consider appropriate if any person  to whom the Confidential Information is to be given pursuant to this Clause 31.2 is  informed in writing of its confidential nature and that some or all of such Confidential  Information may be price-sensitive information except that there shall be no such  requirement to so inform if the recipient is subject to professional obligations to  maintain the confidentiality of the information or is otherwise bound by requirements  of confidentiality in relation to the Confidential Information;  (b) to any person:  (i) to (or through) whom it assigns or transfers (or may potentially assign or  transfer) its rights and/or obligations under the Finance Documents or which  succeeds (or which may potentially succeed) it as Agent and, in each case, to  any of that person’s Affiliates, Related Funds, Representatives and professional  advisers;  (ii) with (or through) whom it enters into (or may potentially enter into), whether  directly or indirectly, any sub-participation in relation to, or any other  transaction under which payments are to be made or may be made by reference  to, one or more Finance Documents and/or the Borrower and to any of that  person’s Affiliates, Related Funds, Representatives and professional advisers;  (iii) appointed by any Finance Party or by a person to whom paragraphs (i) or (ii)  of Clause (b) applies to receive communications, notices, information or  documents delivered pursuant to the Finance Documents on its behalf;  (iv) who invests in or otherwise finances (or may potentially invest in or otherwise  finance), directly or indirectly, any transaction referred to in paragraphs (i) or  (ii) of Clause (b);  (v) to whom information is required or requested to be disclosed by any court of  competent jurisdiction or any governmental, banking, taxation or other  regulatory authority or similar body, the rules of any relevant stock exchange  or pursuant to any applicable law or regulation;  (vi) to whom or for whose benefit that Lender charges, assigns or otherwise creates  security (or may do so) pursuant to Clause 28.11 (Security over Lenders’  rights);  (vii) to whom information is required to be disclosed in connection with, and for the  purposes of, any litigation, arbitration, administrative or other investigations,  proceedings or disputes;  (viii) who is a Party; or  (ix) with the consent of the Borrower;  in each case, such Confidential Information as that Finance Party shall consider  appropriate if:  (A) in relation to paragraphs (i), (ii) and (iii) of Clause (b), the person to  whom the Confidential Information is to be given has entered into a  Confidentiality Undertaking except that there shall be no requirement  for a Confidentiality Undertaking if the recipient is a professional  

 

  81  EU-DOCS\31160993.15  adviser and is subject to professional obligations to maintain the  confidentiality of the Confidential Information;  (B) in relation to paragraph (iv) of Clause (b), the person to whom the  Confidential Information is to be given has entered into a  Confidentiality Undertaking or is otherwise bound by requirements of  confidentiality in relation to the Confidential Information they receive  and is informed that some or all of such Confidential Information may  be price-sensitive information;  (C) in relation to paragraphs (v), (vi) and (vii) of Clause (b) above, the  person to whom the Confidential Information is to be given is informed  of its confidential nature and that some or all of such Confidential  Information may be price-sensitive information except that there shall  be no requirement to so inform if, in the opinion of that Finance Party,  it is not practicable so to do in the circumstances;  (c) to any person appointed by that Finance Party or by a person to whom paragraph (i) or  (ii) of Clause (b) applies to provide administration or settlement services in respect of  one or more of the Finance Documents including without limitation, in relation to the  trading of participations in respect of the Finance Documents, such Confidential  Information as may be required to be disclosed to enable such service provider to  provide any of the services referred to in this Clause (c) if the service provider to whom  the Confidential Information is to be given has entered into a confidentiality agreement  substantially in the form of the LMA Master Confidentiality Undertaking for Use With  Administration/Settlement Service Providers or such other form of confidentiality  undertaking agreed between the Borrower and the relevant Finance Party; and  (d) to any rating agency (including its professional advisers) such Confidential Information  as may be required to be disclosed to enable such rating agency to carry out its normal  rating activities in relation to the Finance Documents and/or the Borrower if the rating  agency to whom the Confidential Information is to be given is informed of its  confidential nature and that some or all of such Confidential Information may be price- sensitive information.  31.3 Disclosure to numbering service providers  (a) Any Finance Party may disclose to any national or international numbering service  provider appointed by that Finance Party to provide identification numbering services  in respect of this Agreement, the Facility and/or the Borrower the following  information:  (i) names of the Borrower;  (ii) country of domicile of the Borrower;  (iii) place of incorporation of the Borrower;  (iv) date of this Agreement;  (v) Clause 38 (Governing Law);  (vi) the name of the Agent;  (vii) date of each amendment and restatement of this Agreement;  

 

  82  EU-DOCS\31160993.15  (viii) amount of Total Commitments;  (ix) currency of the Facility;  (x) type of Facility;  (xi) ranking of Facility;  (xii) Final Maturity Date for the Facility;  (xiii) changes to any of the information previously supplied pursuant to  paragraphs (i) to (xii) above; and  (xiv) such other information agreed between such Finance Party and the Borrower,  to enable such numbering service provider to provide its usual syndicated loan  numbering identification services.  (b) The Parties acknowledge and agree that each identification number assigned to this  Agreement, the Facility and/or one the Borrower by a numbering service provider and  the information associated with each such number may be disclosed to users of its  services in accordance with the standard terms and conditions of that numbering service  provider.  (c) The Borrower represents that none of the information set out in Clause (a) above is, nor  will at any time be, unpublished price-sensitive information.  (d) The Agent shall notify the Borrower and the other Finance Parties of:  (i) the name of any numbering service provider appointed by the Agent in respect  of this Agreement, the Facility and/or the Borrower; and  (ii) the number or, as the case may be, numbers assigned to this Agreement, the  Facility and/or the Borrower by such numbering service provider.  31.4 Entire agreement  This Clause 31 constitutes the entire agreement between the Parties in relation to the obligations  of the Finance Parties under the Finance Documents regarding Confidential Information, and  supersedes any previous agreement, whether express or implied, regarding Confidential  Information.  31.5 Inside information  Each of the Finance Parties acknowledges 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 including securities law relating to insider dealing and  market abuse, and each of the Finance Parties undertakes not to use any Confidential  Information for any unlawful purpose.  31.6 Notification of disclosure  Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the  Borrower:  (a) of the circumstances of any disclosure of Confidential Information made pursuant to  Clause 31.2(b)(v) (Disclosure of Confidential Information), except where such  

 

  83  EU-DOCS\31160993.15  disclosure is made to any of the persons referred to in that paragraph during the ordinary  course of its supervisory or regulatory function; and  (b) upon becoming aware that Confidential Information has been disclosed in breach of  this Clause 31.  31.7 Continuing obligations  The obligations in this Clause 31 are continuing and, in particular, shall survive and remain  binding on each Finance Party for a period of 12 Months from the earlier of:  (a) the date on which all amounts payable by the Borrower under or in connection with the  Finance Documents have been paid in full and all Commitments have been cancelled  or otherwise cease to be available; and  (b) the date on which such Finance Party otherwise ceases to be a Finance Party.  32. CONFIDENTIALITY OF FUNDING RATES  32.1 Confidentiality and disclosure  (a) The Borrower agrees to keep each Funding Rate confidential and not to disclose it to  anyone, save to the extent permitted by Clause (b).  (b) The Borrower may disclose any Funding Rate to:  (i) any of its Affiliates and any of its or their officers, directors, employees,  professional advisers, auditors, partners and representatives if any person to  whom that Funding Rate is to be given pursuant to this paragraph (a) is  informed in writing of its confidential nature and that it may be price-sensitive  information except that there shall be no such requirement to so inform if the  recipient is subject to professional obligations to maintain the confidentiality  of that Funding Rate or is otherwise bound by requirements of confidentiality  in relation to it;  (ii) any person to whom information is required or requested to be disclosed by any  court of competent jurisdiction or any governmental, banking, taxation or other  regulatory authority or similar body, the rules of any relevant stock exchange  or pursuant to any applicable law or regulation if the person to whom that  Funding Rate is to be given is informed in writing of its confidential nature and  that it may be price-sensitive information except that there shall be no  requirement to so inform if, in the opinion of the Borrower it is not practicable  to do so in the circumstances;   (iii) any person to whom information is required to be disclosed in connection with,  and for the purposes of, any litigation, arbitration, administrative or other  investigations, proceedings or disputes if the person to whom that Funding Rate  is to be given is informed in writing of its confidential nature and that it may  be price-sensitive information except that there shall be no requirement to so  inform if, in the opinion of the Borrower it is not practicable to do so in the  circumstances; and  (iv) any person, with the consent of the relevant Lender.  32.2 Related obligations  

 

  84  EU-DOCS\31160993.15  (a) The Agent and the Borrower acknowledge that each Funding Rate is or may be price- sensitive information and that its use may be regulated or prohibited by applicable  legislation including securities law relating to insider dealing and market abuse and the  Agent and the Borrower undertake not to use any Funding Rate for any unlawful  purpose.  (b) The Agent and the Borrower agree (to the extent permitted by law and regulation) to  inform the relevant Lender:  (i) of the circumstances of any disclosure made pursuant to paragraph (ii) of  Clause 32.1(b) except where such disclosure is made to any of the persons  referred to in that paragraph during the ordinary course of its supervisory or  regulatory function; and  (ii) upon becoming aware that any information has been disclosed in breach of this  Clause 32.  32.3 No Event of Default  No Event of Default will occur under Clause 21.3 (Breach of other obligations) by reason only  of the Borrower’s failure to comply with this Clause 32.  33. CONTRACTUAL RECOGNITION OF BAIL-IN  33.1 Bail-in  Notwithstanding any other term of any Finance Document or any other agreement, arrangement  or understanding between the Parties, each Party acknowledges and accepts that any liability of  any Party to any other Party under or in connection with the Finance Documents may be subject  to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be  bound by the effect of:  (a) any Bail-In Action in relation to any such liability, including (without limitation):  (i) a reduction, in full or in part, in the principal amount, or outstanding amount  due (including any accrued but unpaid interest) in respect of any such liability;  (ii) a conversion of all, or part of, any such liability into shares or other instruments  of ownership that may be issued to, or conferred on, it; and  (iii) a cancellation of any such liability; and  (b) a variation of any term of any Finance Document to the extent necessary to give effect  to any Bail-In Action in relation to any such liability.  33.2 Definitions  In this Agreement:  “Article 55 BRRD” means Article 55 of Directive 2014/59/EU establishing a framework for  the recovery and resolution of credit institutions and investment firms.   “Bail-In Action” means the exercise of any Write-down and Conversion Powers.   “Bail-In Legislation” means:  

 

  85  EU-DOCS\31160993.15  (a) in relation to an EEA Member Country which has implemented, or which at any time  implements, Article 55 BRRD, the relevant implementing law or regulation as  described in the EU Bail-In Legislation Schedule from time to time;  (b) in relation to any state other than such an EEA Member Country and the United  Kingdom, any analogous law or regulation from time to time which requires contractual  recognition of any Write-down and Conversion Powers contained in that law or  regulation; and  (c) in relation to the United Kingdom, the UK Bail-In Legislation.  “EEA Member Country” means any member state of the European Union, Iceland,  Liechtenstein and Norway.  “EU Bail-In Legislation Schedule” means the document described as such and published by  the Loan Market Association (or any successor person) from time to time.   “Resolution Authority” means any body which has authority to exercise any Write-down and  Conversion Powers.   “UK Bail-In Legislation” means Part I of the United Kingdom Banking Act 2009 and any  other law or regulation applicable in the United Kingdom relating to the resolution of unsound  or failing banks, investment firms or other financial institutions or their affiliates (otherwise  than through liquidation, administration or other insolvency proceedings).  “Write-down and Conversion Powers” means:  (a) in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule  from time to time, the powers described as such in relation to that Bail-In Legislation  in the EU Bail-In Legislation Schedule;  (b) in relation to any other applicable Bail-In Legislation other than the UK Bail-In  Legislation:  (i) any powers under that Bail-In Legislation to cancel, transfer or dilute shares  issued by a person that is a bank or investment firm or other financial institution  or affiliate of a bank, investment firm or other financial institution, to cancel,  reduce, modify or change the form of a liability of such a person or any contract  or instrument under which that liability arises, to convert all or part of that  liability into shares, securities or obligations of that person or any other person,  to provide that any such contract or instrument is to have effect as if a right had  been exercised under it or to suspend any obligation in respect of that liability  or any of the powers under that Bail-In Legislation that are related to or  ancillary to any of those powers; and  (ii) any similar or analogous powers under that Bail-In Legislation; and  (c) in relation to the UK Bail-In Legislation, any powers under that UK Bail-In Legislation  to cancel, transfer or dilute shares issued by a person that is a bank or investment firm  or other financial institution or affiliate of a bank, investment firm or other financial  institution, to cancel, reduce, modify or change the form of a liability of such a person  or any contract or instrument under which that liability arises, to convert all or part of  that liability into shares, securities or obligations of that person or any other person, to  provide that any such contract or instrument is to have effect as if a right had been  exercised under it or to suspend any obligation in respect of that liability or any of the  

 

  86  EU-DOCS\31160993.15  powers under that UK Bail-In Legislation that are related to or ancillary to any of those  powers.  34. SEVERABILITY  If, at any time, any provision of Finance Document is or becomes illegal, invalid or  unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or  enforceability of the remaining provisions nor the legality, validity or enforceability of such  provision under the laws of any other jurisdiction will in any way be affected or impaired.  35. COUNTERPARTS  Each Finance Document may be executed in any number of counterparts. This has the same  effect as if the signatures on the counterparts were on a single copy of the Finance Document.  36. NOTICES  36.1 In writing  (a) Any communication in connection with a Finance Document must be in writing and,  unless otherwise stated, may be given in person, by post or by e-mail.  (b) Unless it is agreed to the contrary, any consent or agreement required under a Finance  Document must be given in writing.  36.2 Contact details  (a) Except as provided below, the contact details of each Party for all communications in  connection with the Finance Documents are those notified by that Party for this purpose  to the Agent on or before the date it becomes a Party.  (b) The contact details of the Borrower for this purpose are:  Address: Western Power Distribution plc  Avonbank  Feeder Road Bristol BS2 0TB  Tel: +44 117 933 2374  E-mail: wpdtreasuryconfirms@westernpower.co.uk  Attention: Treasury Team  (c) The contact details of the Agent for this purpose are:  Address: 25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom  Tel: +44 (0) 20 7742 1000  E-mail: loan_and_agency_london@jpmorgan.com;  Lesley.X.Pluck@jpmorgan.com  Attention: Loans Agency Group  (d) The contact details of each Original Lender are, subject to paragraph (e) below, those  identified under their respective names in the signature pages to this Agreement.  (e) Any Party (other than the Agent) may change its contact details by giving five Business  Days’ notice to the Agent, and the Agent may change its contact details by giving five  Business Days’ notice to the other Parties.  

 

  87  EU-DOCS\31160993.15  (f) Where a Party nominates a particular department or officer to receive a communication,  a communication will not be effective if it fails to specify that department or officer.  36.3 Delivery   (a) Any communication or document made or delivered by one person to another under or  in connection with the Finance Documents will only be effective:  (i) if delivered in person, when so delivered;  (ii) if by way of electronic communication, in accordance with Clause 36.5  (Electronic communication); or  (iii) if by way of letter, when it has been left at the relevant address or five Business  Days after being deposited in the post with 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 (Contact details), if addressed to that department or officer.  (b) Any communication or document to be made or delivered to the Agent will be effective  only when actually received by the Agent and then only if it is expressly marked for the  attention of the department or officer identified with the Agent’s signature below (or  any substitute department or officer as the Agent shall specify for this purpose).  (c) All notices from or to the Borrower shall be sent through the Agent.  (d) Any communication or document which becomes effective, in accordance with Clauses  (a) to (c) above, after 5pm in the place of receipt shall be deemed only to become  effective on the following day.  36.4 Communication when the Agent is an Impaired Agent  If the Agent is an Impaired Agent the Parties may, instead of communicating with each other  through the Agent, communicate with each other directly and (while the Agent is an Impaired  Agent) all the provisions of the Finance Documents which require communications to be made  or notices to be given to or by the Agent shall be varied so that communications may be made  and notices given to or by the relevant Parties directly. This provision shall not operate after a  replacement Agent has been appointed.  36.5 Electronic communication  (a) Any communication or document to be made or delivered by one Party to another under  or in connection with the Finance Documents may be made or delivered by electronic  mail or other electronic means (including, without limitation, by way of posting to a  secure website) if the Parties:  (i) notify each other in writing of their electronic mail address and/or any other  information required to enable the transmission of information by that means;  and  (ii) notify each other of any change to their address or any other such information  supplied by them by not less than five Business Days’ notice.  (b) Any such electronic communication or delivery as specified in Clause (a) will be  effective only when actually received (or made available) in readable form.  

 

  88  EU-DOCS\31160993.15  (c) Any electronic communication or delivery which becomes effective, in accordance  with Clause (c), after 5:00 p.m. in the place in which the Party to whom the relevant  communication or delivery is sent or made available has its address for the purpose of  this Agreement shall be deemed only to become effective on the following day.  (d) Any reference in a Finance Document to a communication being sent or received or a  document being delivered shall be construed to include that communication or  document being made available in accordance with this Clause 36.5.  37. LANGUAGE  (a) Any notice given under or in connection with a Finance Document must be in English.  (b) Any other document provided under or in connection with a Finance Document must  be:  (i) in English; or  (ii) if not in English and so required by the Agent, accompanied by a certified  English translation. In this case, the English translation prevails unless the  document is a statutory or other official document.  38. GOVERNING LAW  This Agreement and any non-contractual obligations arising out of or in connection with it are  governed by English law.  39. ENFORCEMENT  (a) The English courts have exclusive jurisdiction to settle any dispute in connection with  any Finance Document including a dispute relating to any non- contractual obligation  arising out of or in connection with this Agreement.  (b) The English courts are the most appropriate and convenient courts to settle any such  dispute and the Borrower waives objection to those courts on the grounds of  inconvenient forum or otherwise in relation to proceedings in connection with any  Finance Document.  This Agreement has been entered into on the date stated at the beginning of this Agreement. 

 

  89  EU-DOCS\31160993.15    THE ORIGINAL LENDERS    NAME OF ORIGINAL LENDER COMMITMENT  (£)  TREATY PASSPORT SCHEME REFERENCE NUMBER  AND JURISDICTION OF TAX RESIDENCE  (IF APPLICABLE)  Canadian Imperial Bank of Commerce, London Branch 116,666,666.67 N/A  JPMorgan Chase Bank, N.A., London Branch 116,666,666.67 N/A  The Bank of Nova Scotia 116,666,666.66 3/T/366714/DTTP (Resident of Canada)  TOTAL 350,000,000.00   

 

  90  EU-DOCS\31160993.15    CONDITIONS PRECEDENT  The Borrower  1. A certified copy of the constitutional documents of the Borrower.  2. A certified copy of a resolution of the board of directors or a committee of the board of directors  of the Borrower approving the terms of, and the transactions contemplated by, the Finance  Documents.  3. A specimen of the signature of each person authorised on behalf of the Borrower to, and who  on or prior to the Drawdown Date will, execute any Finance Document or sign or send any  document or notice in connection with any Finance Document.  4. A certificate of the Borrower (signed by a director) confirming that borrowing the Total  Commitments would not cause any borrowing limit binding on the Borrower to be exceeded.  5. A certificate of an authorised signatory of the Borrower certifying that each copy document  relating to it specified in this Schedule 2 is correct, complete and in full force and effect as at a  date no earlier than the date of this Agreement.  Legal opinions  6. A legal opinion of Latham & Watkins LLP, legal advisers to the Borrower addressed to the  Original Lenders.  Other documents and evidence  7. A copy of this Agreement signed by the Borrower.  8. The Bond Redemption Notice.   9. Evidence that all costs and expenses then due and payable from the Borrower under this  Agreement have been or will be paid no later than the Drawdown Date.  10. Completion by the Lenders and the Agent of all necessary “know your customer” checks or  other similar checks in relation to the Borrower required under applicable laws and regulations,  as notified to the Borrower not less than five Business Days prior to the date of this Agreement.  11. The Original Financial Statements.  

 

  91  EU-DOCS\31160993.15    REQUEST  To: [J.P. Morgan AG] as Agent   From: Western Power Distribution plc   Date: [Date of the Agreement]  Western Power Distribution plc - £350,000,000 Facility Agreement   (the “Agreement”)  1. We refer to the terms of the Agreement, which will be dated on or around 26 February 2021.  This is a Request. Terms defined in the Agreement have the same meaning in this Request  unless given a different meaning in this Request.  2. We wish to borrow a Loan on the following terms:  (a) Drawdown Date: 26 February 2021  (b) Amount: 350,000,000.00 GBP  (c) Interest Period: one month  3. We confirm that each condition precedent under the Agreement which must be satisfied on the  date of this Request is so satisfied or will, on the Drawdown Date, be so satisfied.  4. The proceeds of this Loan should be credited to the beneficiaries as described in the Direction  Letter dated on or around the date of this Request.  5. This Request is conditional upon the Agreement being signed on or around 26 February 2021.    By:  WESTERN POWER DISTRIBUTION PLC  

 

  92  EU-DOCS\31160993.15    FORM OF TRANSFER CERTIFICATE  To: [J.P. Morgan AG] as Agent  From:  [THE EXISTING LENDER] (the “Existing Lender”) and [THE NEW LENDER] (the “New  Lender”)  Date:  [  ]  Western Power Distribution plc - £350,000,000 Facility Agreement dated [  ] (the  “Agreement”)  We refer to the Agreement. This is a Transfer Certificate.  1. The Existing Lender and the New Lender agree to the Existing Lender transferring to the New  Lender by novation, and in accordance with Clause 28.5 (Procedure for transfer), all of the  Existing Lender’s rights and obligations under the Agreement and other Finance Documents  which relate to that portion of the Existing Lender’s Commitment(s) and participations in the  Loan as specified in the Schedule.  2. The proposed Transfer Date is [  ].  3. The administrative details of the New Lender for the purposes of the Agreement are set out in  the Schedule.  4. The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations  set out in Clause 28.8 (Limitation of responsibility of Existing Lender) of the Agreement.  5. The New Lender represents that it is:  (a) [a Qualifying Lender (other than a Treaty Lender);]  (b) [a Treaty Lender;]  (c) [not a Qualifying Lender].*  6. The New Lender confirms that it is not:  (a) a Competitor;   (b) [a Distressed Debt Fund; or   (c) a Hedge Fund.]1  7. [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:  (a) a company resident in the United Kingdom for United Kingdom tax purposes; or  (b) a partnership each member of which is:  (i) a company so resident in the United Kingdom; or    1  This confirmation is not required if an Event of Default is continuing.  

 

  93  EU-DOCS\31160993.15  (ii) a company not so resident in the United Kingdom which carries on a trade in  the United Kingdom through a permanent establishment and which brings into  account in computing its chargeable profits (within the meaning of section 19  of the CTA 2009) the whole of any share of interest payable in respect of that  advance that falls to it by reason of Part 17 of the CTA 2009; or  (c) 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 (within the  meaning of section 19 of the CTA 2009) of that company.]**  8. [The New Lender confirms that it is a Treaty Lender that holds a passport under the HMRC DT  Treaty Passport scheme (reference number [  ]), and is tax resident in [  ]*** so that interest  payable to it by the Borrower is generally subject to full exemption from UK withholding tax  and notifies the Borrower that it wishes the scheme to apply to the Agreement.]****  9. The New Lender expressly confirms that it [can][cannot] exempt the Agent from the restrictions  pursuant to section 181 of the German Civil Code (Bürgerliches Gesetzbuch) and similar  restrictions applicable to it pursuant to any other applicable law as provided for in Clause  29.1(c) (Appointment of the Agent).  10. This Transfer Certificate and any non-contractual obligations arising out of or in connection  with it are governed by English law.  NOTES:  * Delete as applicable - each New Lender is required to confirm which of these three  categories it falls within.  ** Include if New Lender comes within paragraph (a)(ii) of the definition of Qualifying  Lender in Clause 11.1 (Definitions) of the Agreement.  *** Insert jurisdiction of tax residence.  ****  This confirmation must be included if the New Lender holds a passport under the  HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.     

 

  94  EU-DOCS\31160993.15  THE SCHEDULE  Rights and obligations to be transferred by novation  [insert relevant details, including applicable Commitment (or part)]    Administrative details of the New Lender  [insert details of Facility Office, address for notices and payment details etc.]  [EXISTING LENDER] [NEW LENDER]  By: By:  The Transfer Date is confirmed as [  ].   [Agent]  By:  

 

  95  EU-DOCS\31160993.15    FORM OF ASSIGNMENT AGREEMENT  To: [J.P. Morgan AG] as Agent and Western Power Distribution plc as Borrower  From: [THE EXISTING LENDER] (the “Existing Lender”) and [THE NEW LENDER] (the “New  Lender”)  Date: [  ]  Western Power Distribution plc - £350,000,000 Facility Agreement   dated [  ] (the “Agreement”)  1. We refer to the Agreement. This is an Assignment Agreement. Terms defined in the Agreement  have the same meaning in this Assignment Agreement unless given a different meaning in this  Assignment Agreement.  2. We refer to Clause 28.6 (Procedure for assignment) of the Agreement:  (a) The Existing Lender assigns absolutely to the New Lender all the rights of the Existing  Lender under the Agreement and the other Finance Documents which relate to that  portion of the Existing Lender’s Commitment and participations in Loans under the  Agreement as specified in the Schedule.  (b) The Existing Lender is released from all the obligations of the Existing Lender which  correspond to that portion of the Existing Lender’s Commitment and participations in  Loans under the Agreement specified in the Schedule.  (c) The New Lender becomes a Party as a Lender and is bound by obligations equivalent  to those from which the Existing Lender is released under paragraph (b) above.  3. The proposed Transfer Date is [  ].  4. On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.  5. The Facility Office and address and attention details for notices of the New Lender for the  purposes of Clause 36.2 (Contact Details) of the Agreement are set out in the Schedule.  6. The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations  set out in Clause 28.8 (Limitation of responsibility of Existing Lender) of the Agreement.  7. The New Lender confirms that it is not:  (a)  a Competitor;   (b) [a Distressed Debt Fund; or   (c) a Hedge Fund.]2  8. The New Lender represents that it is:  (a) [a Qualifying Lender (other than a Treaty Lender);]    2  This confirmation is not required if an Event of Default is continuing.  

 

  96  EU-DOCS\31160993.15  (b) [a Treaty Lender;]  (c) [not a Qualifying Lender].*  9. [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:  (a) a company resident in the United Kingdom for United Kingdom tax purposes;  (b) a partnership each member of which is:  (i) a company so resident in the United Kingdom; or  (ii) a company not so resident in the United Kingdom which carries on a trade in  the United Kingdom through a permanent establishment and which brings into  account in computing its chargeable profits (within the meaning of section 19  of the CTA) the whole of any share of interest payable in respect of that  advance that falls to it by reason of Part 17 of the CTA; or  (c) 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 (within the  meaning of section 19 of the CTA) of that company.]**  10. [The New Lender confirms that it holds a passport under the HMRC DT Treaty passport scheme  (reference number [  ]) and is tax resident in [  ]***, so that interest payable to it by the  Borrower is generally subject to full exemption from UK withholding tax and notifies the  Borrower that it wishes the scheme to apply to the Agreement.]****  11. The New Lender expressly confirms that it [can][cannot] exempt the Agent from the restrictions  pursuant to section 181 of the German Civil Code (Bürgerliches Gesetzbuch) and similar  restrictions applicable to it pursuant to any other applicable law as provided for in Clause  29.1(c) (Appointment of the Agent).  12. This Assignment Agreement acts as notice to the Borrower of the assignment referred to in this  Assignment Agreement.  13. This Assignment Agreement may be executed in any number of counterparts and this has the  same effect as if the signatures on the counterparts were on a single copy of this Assignment  Agreement.  14. This Assignment Agreement and any non-contractual obligations arising out of or in connection  with it are governed by English law.  15. This Assignment Agreement has been entered into on the date stated at the beginning of this  Assignment Agreement.  NOTES:  * Delete as applicable - each New Lender is required to confirm which of these three  categories it falls within.  ** Include if New Lender comes within paragraph (a)(ii) of the definition of Qualifying  Lender in Clause 11.1 (Definitions) of the Agreement.  *** Insert jurisdiction of tax residence.  

 

  97  EU-DOCS\31160993.15  **** This confirmation must be included if the New Lender holds a passport under the  HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.  

 

  98  EU-DOCS\31160993.15  THE SCHEDULE  Rights to be assigned and obligations to be released and undertaken  [insert relevant details]  [Facility Office address and attention details for notices and account details for payments]  [Existing Lender] [New Lender]  By: By:  This Assignment Agreement is accepted as an Assignment Agreement for the purposes of the  Agreement by the Agent and the Transfer Date is confirmed as [  ].  Signature of this Assignment Agreement by the Agent constitutes confirmation by the Agent of receipt  of notice of the assignment referred to herein, which notice the Agent receives on behalf of each Finance  Party.  [Agent]  By:    

 

  99  EU-DOCS\31160993.15    FORM OF COMPLIANCE CERTIFICATE  To: [J.P. Morgan AG] as Agent  From: Western Power Distribution plc   Date: [  ]  Western Power Distribution plc - £350,000,000 Facility Agreement   dated [  ]  (the “Agreement”)  1. We refer to the Agreement. This is a Compliance Certificate.  2. We confirm that as at [relevant testing date], Consolidated EBITDA for the Calculation Period  ending on such date was [  ] and Interest Payable was [  ], therefore the ratio of  Consolidated EBITDA to Interest Payable for the Calculation Period ending on such date was  [  ] to 1.  3. We confirm that as at [relevant testing date], Regulatory Asset Value was [  ] and Total Net  Debt was [  ]; therefore Total Net Debt does not exceed 87.5% of the Regulatory Asset Value.  4. We set out below calculations establishing the figures in paragraphs 2 and 3 above: [  ].  5. [We confirm that no Default is outstanding as at [relevant testing date].]3  WESTERN POWER DISTRIBUTION PLC  By:   Director    Director    3 If this statement cannot be made, the certificate should identify any Default that is outstanding and the steps, if  any, being taken to remedy it.  

 

  100  EU-DOCS\31160993.15    TIMETABLES  Delivery of a duly completed Request in accordance  with Clause 5.1 (Giving of a Request)   D-1 (or as otherwise agreed between the Parties)  10:00 a.m.    LIBOR is fixed Quotation Day as of 11.00 a.m.  Agent notifies the Lenders of the Loan in accordance  with Clause 5.2 (Advance of Loan)  D-1  4:00 p.m.  Reference Bank Rate calculated by reference to  available quotations in accordance with Clause 10.2  (Calculation of Reference Bank Rate)  Quotation Day as of 11.30 a.m.    “D” = the Drawdown Date.  “D- X”= Business Days prior to the Drawdown Date.      

 

  101  EU-DOCS\31160993.15    FORM OF SUBORDINATION DEED  THIS SUBORDINATION DEED is entered into as a deed on [  ] and is made BETWEEN:  (1) WESTERN POWER DISTRIBUTION PLC (registered number 09223384) (the  “Borrower”);  (2) [SUBORDINATED CREDITOR] (the “Subordinated Creditor”); and  (3) [J.P. MORGAN AG], as Agent acting on behalf of the Lenders (each as defined below)  (the “Agent”).  1. INTERPRETATION  1.1 Definitions  In this Deed:  Agreement means the £350,000,000 facility agreement dated []between, among others,  Western Power Distribution plc as the Borrower and [J.P. Morgan AG] as Agent.  Party means a party to this Deed.  Permitted Subordinated Debt Payment means:  (a) the repayment or prepayment of any principal amount (or capitalised interest)  outstanding under the Subordinated Finance Document;  (b) the payment of any interest, fee or charge accrued or due under or any other amount  payable in connection with the Subordinated Finance Document; or  (c) the purchase, redemption, defeasance or discharge of any amount outstanding  under the Subordinated Finance Document,  provided that, on or prior to the date of such payment, the Borrower has delivered a certificate  to the Agent confirming that, taking into account such payment, Total Net Debt will not exceed  85% and the Borrower will be in compliance with its obligations under Clause 19.3 (Interest  Cover), in each case on each of the two immediately succeeding Calculation Dates.  Senior Debt means any present or future liability (actual or contingent) payable or owing  by the Borrower to a Finance Party under or in connection with the Finance Documents.  Senior Debt Discharge Date means the date on which all the Senior Debt has been  unconditionally and irrevocably paid and discharged in full and no Finance Party has any  commitment or liability, whether present or future, actual or contingent, in relation to the  Facility, as determined by the Agent.  Subordinated Creditor Accession Deed means a deed substantially in the form set out in  Annex 1 (Form of Subordinated Creditor Accession Deed).  Subordinated Debt means any present or future liability (actual or contingent) payable or  owing by the Borrower to the Subordinated Creditor under or in connection with any  Subordinated Finance Document.  Subordinated Finance Document means [].  

 

  102  EU-DOCS\31160993.15  1.2 Construction  (a) Capitalised terms defined in the Agreement have the same meaning in this Deed,  unless given a different meaning in this Deed.  (b) The principles of construction set out in the Agreement will have effect as if set out  in this Deed.  (c) Any undertaking by the Subordinated Creditor in this Deed remains in force from  the date of this Deed to the Senior Debt Discharge Date.  1.3 Third Party Rights  Unless otherwise indicated and save in respect of any other creditor under any of the  Finance Documents, a person who is not a party to this Deed has no right under the  Contracts (Rights of Third Parties) Act 1999 (or any other applicable law) to enforce any  term of this Deed.  2. SUBORDINATION  2.1 Ranking  Each of the Parties hereby agrees that the Senior Debt, whether secured or unsecured, shall  rank senior in priority to the Subordinated Debt.  2.2 Undertakings of the Borrower  The Borrower must not without the prior consent of the Lenders:  (a) make any payment whatsoever in respect of the Subordinated Debt other than a  Permitted Subordinated Debt Payment; or  (b) secure, in any manner, all or any part of the Subordinated Debt; or  (c) defease, in any manner, all or any part of the Subordinated Debt; or  (d) give any financial support (including the taking of any participation, the giving of  any guarantee or other assurance or the making of any deposit) to any person in  connection with all or any part of the Subordinated Debt; or procure any other person  to do any of the acts or take any of the actions referred to paragraphs (a) to (d) above.  2.3 Undertakings of the Subordinated Creditor  (a) The Subordinated Creditor will not without the prior written consent of the  Lenders:  (i) allow to exist or receive the benefit of any Security Interest, guarantee,  indemnity or other assurance against loss in respect of all or any of the  Subordinated Debt or all or any rights which it may have against the  Borrower in respect of all or any part of the Subordinated Debt; or  (ii) take or omit to take any action or step whereby the subordination of all or  any of the Subordinated Debt might be terminated, impaired or adversely  affected.  

 

  103  EU-DOCS\31160993.15  (b) The Subordinated Creditor will not without the prior written consent of the Lenders  receive any payment save where such payment is a Permitted Subordinated Debt  Payment.  (c) The Subordinated Creditor will not without the prior written consent of the  Lenders:  (i) demand payment, declare prematurely due and payable or otherwise seek  to accelerate payment of or place on demand all or any part of the  Subordinated Debt or enforce the Subordinated Debt by execution or  otherwise;  (ii) initiate or support or take any steps with a view to, or which may lead to:  (A) any insolvency, liquidation, reorganisation, administration or  dissolution proceedings;  (B) any voluntary arrangement or assignment for the benefit of  creditors; or  (C) any similar proceedings,  involving the Borrower or any of its Subsidiaries, whether by petition, convening a meeting, voting  for a resolution or otherwise;  (iii) bring or support any legal proceedings against the Borrower or any of its  Subsidiaries; or  (iv) otherwise exercise any remedy for the recovery of all or any part of the  Subordinated Debt (including, without limitation, the exercise of any right  of set-off, counterclaim or lien).  (d) If the Subordinated Creditor receives any payment which is in breach of any  Finance Document, it shall hold such sums on trust for the Agent (acting on  behalf of the Lenders) and pay them immediately to the Agent (acting on behalf of  the Lenders) to be applied against the Senior Debt.  (e) The Subordinated Creditor and the Borrower hereby agree for the benefit of the  Agent and the Lenders that, notwithstanding the terms of the Subordinated Finance  Document and any agreement relating to the Subordinated Debt, the Subordinated  Debt is made available on terms such that it is not, save for a Permitted Subordinated  Debt Payment or otherwise with the consent of the Lenders, repayable unless and  until the Senior Debt Discharge Date shall have occurred.  2.4 Subordination on insolvency  If there occurs any payment, distribution, division or application, partial or complete,  voluntary or involuntary, by operation of law or otherwise, of all or any part of the assets  of any kind or character of the Borrower or the proceeds thereof, to creditors of the  Borrower, by reason of the liquidation, dissolution or other winding-up of the Borrower or  its businesses or any bankruptcy, reorganisation, receivership or insolvency or similar  proceeding or any assignment for the benefit of creditors or there is a marshalling of the  assets and liabilities of the Borrower, or the Borrower becomes subject to any event  mentioned in Clause 21.6 (Insolvency proceedings) of the Agreement or a voluntary  arrangement, then and in any such event:  

 

  104  EU-DOCS\31160993.15  (a) the Subordinated Debt shall continue to be subordinated to the Senior Debt;  (b) any payment or distribution of any kind or character and all and any rights in respect  thereof, whether in cash, securities or other property which is payable or deliverable  upon or with respect to the Subordinated Debt or any part thereof by a liquidator,  administrator or receiver (or the equivalent thereof) of the Borrower or its estate  (the “rights”) made to or paid to, or received by the Subordinated Creditor or to  which the Subordinated Creditor is entitled shall be held on trust by the Subordinated  Creditor for the Lenders and shall forthwith be paid or, as the case may be,  transferred or assigned to the Lenders to be applied against the Senior Debt;  (c) if the trust referred to in paragraph (b) above or paragraph (d) of Clause 2.3 above  fails or cannot be given effect to or if the Subordinated Creditor receives and retains  the relevant payment or distribution, the Subordinated Creditor will pay over such  rights in the form received to the Agent (acting on behalf of the Lenders) to be  applied against the Senior Debt;  (d) the Subordinated Creditor acknowledges the rights of the Agent (acting on behalf of  the Lenders) to demand, sue and prove for, collect and receive every payment or  distribution referred to in paragraph (b) above and give acquittance therefore and  to file claims and take such other proceedings, in the Agent’s own name or  otherwise, as the Agent may deem necessary or advisable for the enforcement of this  Deed; and  (e) the Subordinated Creditor by way of security for its obligations under this Deed  irrevocably appoints the Agent to be its attorney in order to enable the Agent to  enforce any and all claims upon or with respect to the Subordinated Debt or any  part thereof, and to collect and receive any and all payments or distributions  referred to in paragraph (b) above or to do anything which that Subordinated  Creditor has authorised the Agent or any other Party to do under this Deed or is itself  required to do under this Deed but has failed to do (and the Agent may delegate that  power on such terms as it sees fit).  3. SET-OFF  (a) The Subordinated Creditor shall not set off against the Subordinated Debt any  amount payable by the Subordinated Creditor to the Borrower.  (b) If any part of the Subordinated Debt is discharged in whole or in part by way of set- off, the Subordinated Creditor will promptly pay to the Agent for application in  accordance with the terms of paragraph (b) of Clause 2.4 (Subordination on  insolvency) an amount equal to the amount of the Subordinated Debt discharged by  such set-off.  4. NEW MONEY  The Subordinated Creditor hereby agrees that the Agent (acting on behalf of the Lenders)  may, at its discretion, increase the facility made available to the Borrower and make further  advances to the Borrower, and each such advance will be deemed to be made under the  terms of the Agreement.  5. PROTECTION OF SUBORDINATION  (a) The subordination in this Deed is a continuing subordination and benefits the  ultimate balance of the Senior Debt.  

 

  105  EU-DOCS\31160993.15  (b) Except as provided in this Deed, the subordination is, and the Subordinated  Creditor’s obligations under this Deed will, not be affected by any act, omission or  thing which, but for this provision, would reduce, release or prejudice the  subordination or any of the Subordinated Creditor’s obligations under this Deed.  6. MISCELLANEOUS  (a) This Deed overrides anything in any Subordinated Finance Document to the  contrary.  (b) Any communication in respect of this Deed must be in writing. Contact details for  each Party are set out opposite their name, below.  (c) This Deed is a Finance Document.  7. ASSIGNMENT  (a) The Agent (acting on behalf of the Lenders) shall have the full and unfettered right  to assign or otherwise transfer the whole or any part of the benefit of this Deed to  any person to whom all or a corresponding part of its rights, benefits and obligations  under any of the Finance Documents are assigned or transferred in accordance with  their provisions.  (b) The Subordinated Creditor shall not assign or transfer all or any of its rights, title,  benefit and interest in or to all or any part of the Subordinated Debt unless in full  and on or prior to such assignment or transfer the assignee or transferee accedes to  this Deed as Subordinated Creditor pursuant to the Subordinated Creditor  Accession Deed.  8. TRUSTS  The Agent shall hold the benefit of this Deed upon trust for itself and the Lenders.  9. TERMINATION  Subject to Clause 4 (New Money), on the Senior Debt Discharge Date, the terms of this Deed  shall terminate.  10. GOVERNING LAW  This Deed and any non-contractual obligations arising out of or in connection with it are  governed by English law.  11. JURISDICTION  The English courts have exclusive jurisdiction to settle any dispute including a dispute  relating to non-contractual obligations arising out of or in connection with this Deed and  the Parties submit to the exclusive jurisdiction of the English courts.    IN WITNESS whereof this Deed has been duly executed by the Parties on the day and year first  above written.  

 

  106  EU-DOCS\31160993.15  Annex 1  Form of Subordinated Creditor Accession Deed  To: [J.P. MORGAN AG], as Agent   To: WESTERN POWER DISTRIBUTION PLC  From: [Acceding Subordinated Creditor]  THIS DEED is made on [date] by [Acceding Subordinated Creditor] (the “Acceding  Subordinated Creditor”) in relation to the subordination deed (the “Subordination Deed”) dated  [•] between, among others, Western Power Distribution plc. as Company, [J.P. Morgan AG] as Agent  and the Subordinated Creditor (as defined in the Subordination Deed). Terms defined in the  Subordination Deed shall, unless otherwise defined in this Deed, bear the same meanings when used  in this Deed.  In consideration of the Acceding Subordinated Creditor being accepted as the Subordinated  Creditor for the purposes of the Subordination Deed, the Acceding Subordinated Creditor confirms  that, as from [date], it intends to be party to the Subordination Deed as the Subordinated Creditor  and undertakes to perform all the obligations expressed in the Subordination Deed to be assumed  by the Subordinated Creditor and agrees that it shall be bound by all the provisions of the  Subordination Deed, as if it had been an original party to the Subordination Deed as the Subordinated  Creditor.  This Deed and any non-contractual obligations arising out of or in connection with it are governed  by English law.  IN WITNESS whereof this Deed has been duly executed by the Parties on the day and year first  above written.       

 

  107  EU-DOCS\31160993.15  SIGNATORIES  Subordination  Deed  Company    EXECUTED as a DEED )   by WESTERN POWER DISTRIBUTION PLC  )   acting by )         Director    In the presence of:      Witness  Signature:       Name:      Address:      Company contact details:        Address: [  ]   Phone Number: [  ]   E-mail [  ]   Attention:  [  ]       Subordinated Creditor            EXECUTED as a DEED )   by [SUBORDINATED CREDITOR] )   acting by )         Director    In the presence of:      Witness  Signature:       Name:      Address:      Subordinated Creditor contact details:  Address: [  ]  Phone number: [  ]  E-mail: [  ]  Attention: [  ]    

 

  108  EU-DOCS\31160993.15  Agent    EXECUTED as a DEED )   by [  ] )   acting by )         Director    In the presence of:       Witness  Signature:       Name:      Address:      Agent contact details:  Address: [  ]  Phone number: [  ]  E-mail: [  ]  Attention: [  ]    

 

  [WPD - 2021 Facility Agreement – Signature Page]    SIGNATORIES  THE BORROWER  Executed for an on behalf of  WESTERN POWER DISTRIBUTION PLC    By : Ian Robert Williams  Name : Ian Robert Williams  Title : Director       

 

  [WPD – 2021 Facility Agreement – Signature Page]  AN ORIGINAL LENDER     Executed for and on behalf of     CANADIAN IMPERIAL BANK OF COMMERCE, LONDON BRANCH    By : Alex Wilson By : Roger Harvey  Name : Alex Wilson Name : Roger Harvey  Title : Managing Director Title : Managing Director         Contact details     Tel : +44 207 234 6478; +44 207 234 6906     Address : 150 Cheapside, London EC2V 6ET     Email : roger.harvey@cibc.co.uk;  toby.schogger@cibc.co.uk      Attention : Roger Harvey; Toby Schogger        

 

  [WPD – 2021 Facility Agreement – Signature Page]  AN ORIGINAL LENDER  Executed for and on behalf of  JPMORGAN CHASE BANK, N.A., LONDON BRANCH    By : Nancy R. Barwig  Name : Nancy R. Barwig  Title : Executive Director      Contact details  Tel : +44 (0) 20 7742 1000  Address : 25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom  Email : loan_and_agency_london@jpmorgan.com; Lesley.X.Pluck@jpmorgan.com  Attention : Loans Agency Group       

 

  [WPD – 2021 Facility Agreement – Signature Page]  AN ORIGINAL LENDER  Executed for and on behalf of  THE BANK OF NOVA SCOTIA  By : David Dewar  Name : David Dewar  Title : Director      Contact details  Tel : +1 212-225-5705  Address : 720 King St. W Toronto ON, M5V 2T3  Email : GWSUSCorp_LoanOps@scotiabank.com  Attention : GWO US Lending Services Team       

 

  [WPD – 2021 Facility Agreement – Signature Page]    THE AGENT     Executed for and on behalf of     J.P. MORGAN AG        By : Fatma Mustafa By : N/A  Name : Fatma Mustafa Name : ___________________________  Title : Authorised Signatory / Vice President Title : ___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}]]