Document:

Exhibit 10.8

 

FIFTH AMENDMENT TO EXECUTIVE
CONSULTING AGREEMENT

 

This Fifth
Amendment to Executive Consulting Agreement is made as of the 1st
day of January, 2007, by and between NBTY, Inc. (the “Company”) and RUDOLPH
MANAGEMENT ASSOCIATES, INC., a Florida corporation (“RMA”).

 

W I T N E S S E T H:

 

WHEREAS,
the Company and RMA entered into that certain Executive Consulting Agreement,
dated as of January 1, 2002 (as amended by the First Amendment, the Second
Amendment, the Third Amendment, and the Fourth Amendment, the “Agreement”);

 

WHEREAS,
the term of the Agreement expires on December 31, 2006 (the “Term”);

 

WHEREAS,
the Compensation Committee of the Company (the “Committee”) met on October 10,
2006, with all members of the Committee present to consider whether to extend
the Term of the Agreement;

 

WHEREAS,
the Committee decided to extend the Term of the Agreement; and

 

WHEREAS,
RMA and ARTHUR RUDOLPH desire to continue to make their respective services as
an Executive Consultant available to the Company.

 

NOW,
THEREFORE, in consideration of the mutual promises hereafter contained and for
other good and valuable consideration, the parties agree as follows:

 

1.             Term. Section 1 of the
Agreement is hereby amended and restated to read in its entirety as follows:

 

“1.           Retention.
The Company hereby retains RMA to provide the services of ARTHUR RUDOLPH and
ARTHUR RUDOLPH hereby accepts the engagement of Executive Consultant from
January 1, 2007 through December 31, 2007 (the “Term”).”

 

 

2.             Continuity. Except as otherwise expressly amended
by this Fifth Amendment, the Agreement shall continue in full force and effect.

 

3.             Governing Law; Counterparts. This Amendment shall
be construed and enforced according to the laws of the State of New York. This
Amendment may be executed in any number of counterparts, each of which shall be
considered an original for all purposes, and all of which when taken together
constitute a single counterpart instrument.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amendment as of the day and year first above written.

 

	
  RUDOLPH MANAGEMENT

  	
  NBTY, INC.

  
	
  ASSOCIATES, INC.

  	
   

  

 

 

	
  By:

  	
  /s/ Arthur Rudolph

  	
   

  	
  By:

  	
  /s/ Harvey Kamil 

  	
   

  
	
   

  	
  Arthur Rudolph

  	
   

  	
  Harvey Kamil

  
	
   

  	
  President

  	
   

  	
  President

  

 

 

	
  Agreed and
  Consented:

  
	
   

  
	
   

  
	
  /s/ Arthur
  Rudolph

  	
   

  
	
  ARTHUR RUDOLPH,
  individually

  

 

2Exhibit 10.14

 

 

 

$18,000,000

 

FACILITY
AGREEMENT

 

dated
20 September 2006

 

for

 

GOOD ‘N’ NATURAL LIMITED

 

as
Borrower

 

with

 

JPMORGAN CHASE BANK, N.A., LONDON BRANCH

 

as
Lender

 

 

 

MULTICURRENCY
TERM FACILITY AGREEMENT

 

 

 

 

 

JPMorgan Chase Bank, N.A.

125 London Wall

London EC2Y 5AJ

 

 

CONTENTS

 

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions And Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  The Facility

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Purpose

  	
  7

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Conditions Of Utilisation

  	
  7

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Utilisation

  	
  7

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Repayment

  	
  8

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Prepayment And Cancellation

  	
  8

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Interest

  	
  10

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Interest Periods

  	
  11

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Changes To The Calculation Of Interest

  	
  12

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Tax Gross Up And Indemnities

  	
  12

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Increased Costs

  	
  14

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Other Indemnities

  	
  15

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Mitigation By The Lender

  	
  16

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Costs And Expenses

  	
  17

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Representations

  	
  17

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Information Undertakings

  	
  19

  
	
   

  	
   

  	
   

  
	
  18.

  	
  General Undertakings

  	
  20

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Events Of Default

  	
  22

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Changes To The Lender

  	
  24

  
	
   

  	
   

  	
   

  
	
  21.

  	
  Changes To The Borrower

  	
  26

  
	
   

  	
   

  	
   

  
	
  22.

  	
  Conduct Of Business By The Lender

  	
  26

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Payment Mechanics

  	
  26

  
	
   

  	
   

  	
   

  
	
  24.

  	
  Set-Off

  	
  29

  
	
   

  	
   

  	
   

  
	
  25.

  	
  Notices

  	
  29

  
	
   

  	
   

  	
   

  
	
  26.

  	
  Calculations And Certificates

  	
  30

  
	
   

  	
   

  	
   

  
	
  27.

  	
  Partial Invalidity

  	
  31

  
	
   

  	
   

  	
   

  
	
  28.

  	
  Remedies And Waivers

  	
  31

  
	
   

  	
   

  	
   

  
	
  29.

  	
  Amendments And Waivers

  	
  31

  
	
   

  	
   

  	
   

  
	
  30.

  	
  Counterparts

  	
  31

  
	
   

  	
   

  	
   

  
	
  31.

  	
  Governing Law

  	
  31

  
				

 

 

	
  32.

  	
  Enforcement

  	
  32

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
  CONDITIONS PRECEDENT

  	
  33

  
	
   

  	
   

  	
   

  
	
  Schedule 2

  	
  REQUESTS

  	
  34

  
	
   

  	
   

  	
   

  
	
   

  	
  Part A Utilisation Request

  	
  34

  
	
   

  	
  Part B Selection Notice

  	
  36

  
	
   

  	
   

  	
   

  
	
  Schedule 3

  	
  MANDATORY COST FORMULAE

  	
  38

  
	
   

  	
   

  	
   

  
	
  Schedule 4

  	
  TIMETABLES

  	
  40

  
					

 

 

THIS
AGREEMENT is dated [                               
    ] September 2006 and made between:

 

(1)                           GOOD ‘N’ NATURAL LIMITED,  a
limited liability company registered at Companies House with registered number
5907954 and with its registered address at Samuel Ryder House, Townsend Drive,
Attleborough Fields, Nuneaton, Warwickshire, CV11 6XW as borrower (the “Borrower”); and

 

(2)                           JPMORGAN CHASE BANK, N.A., LONDON BRANCH as lender (the “Lender”).

 

IT IS
AGREED as follows:

 

1.           DEFINITIONS AND INTERPRETATION

 

1.1        Definitions

 

In this Agreement:

 

“Additional Cost Rate” has the meaning given
to it in Schedule 3 (Mandatory Cost
formulae).

 

“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.

 

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

 

“Availability Period” means the period from and including the
date of this Agreement to and including 6 October 2006.

 

“Available Facility” means the amount of the
Facility, minus:

 

(a)                                     the Base
Currency Amount of any outstanding Loans; and

 

(b)                                     in
relation to any proposed Utilisation, the Base Currency Amount of any Loans
that are due to be made on or before the proposed Utilisation Date.

 

“Base Currency” means dollars.

 

“Base Currency Amount” means, in relation to
a Loan, the amount specified in the Utilisation Request for that Loan (or, if
the amount requested is not denominated in the Base Currency, that amount converted
into the Base Currency at the Lender’s Spot Rate of Exchange on the date which
is three Business Days before the Utilisation Date or, if later, on the date
the Lender receives the Utilisation Request) adjusted to reflect any repayment
(other than a repayment arising from a change of currency), prepayment,
consolidation or division of the Loan.

 

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

 

(a)                                     the
interest which the Lender should have received for the period from the date of
receipt of all or any part of a Loan or Unpaid Sum to the last day of 

 

1

 

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

 

exceeds:

 

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

 

“Business Day” means a day (other than a
Saturday or Sunday) on which banks are open for general business in London and
in relation to any date for payment or purchase of any amount denominated in
dollars, New York.

 

“Default” means an Event of Default or any
event or circumstance specified in Clause 19 (Events
of Default) which would (with the expiry of a grace period, the
giving of notice, the making of any determination under the Finance Documents
or any combination of any of the foregoing) be an Event of Default.

 

“Event of Default” means any event or
circumstance specified as such in Clause 19 (Events of Default).

 

“Facility” means the term loan facility in
an aggregate amount of $18,000,000 made available under this Agreement as
described in Clause 2 (The Facility)
to the extent not cancelled, reduced or transferred under this Agreement.

 

“Facility Office” means the office or
offices identified with the Lender’s signature below or such other office as it
may from time to time select by notice to the Borrower as the office or
offices through which it will perform its obligations under this
Agreement.

 

“Finance Document” means this Agreement and
any other document designated as such by the Lender and the Borrower.

 

“Financial Indebtedness” means any
indebtedness for or in respect of:

 

(a)                                     moneys
borrowed;

 

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

 

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

 

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

 

2

 

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

 

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

 

(g)                                      any
derivative transaction entered into in connection with protection against or
benefit from fluctuation in any rate or price (and, when calculating the value
of any derivative transaction, only the marked to market value shall be taken
into account);

 

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

 

(i)                                         any amount
raised by the issue of redeemable shares;

 

(j)                                        any amount
of any liability under an advance or deferred purchase agreement if one of the
primary reasons behind the entry into this agreement is to raise finance; and

 

(k)                                     (without
double counting) the amount of any liability in respect of any guarantee or
indemnity for any of the items referred to in paragraphs (a) to (j) above.

 

“GAAP” means generally accepted accounting
principles in England and Wales.

 

“Guarantee” means the guarantee dated on or
about the date of this Agreement, provided by the Guarantor in favour of the
Lender in relation to all of the obligations of the Borrower under the Finance
Documents.

 

“Guarantor” means NBTY, Inc. a corporation
incorporated in the state of New York, with its address at 90 Orville Drive,
Bohemia, NY 11716, United States.

 

“Guarantor Credit Agreement” means the
US$125,000,000 second amended and restated credit agreement dated as of 24 July 2003
(as amended and restated on 19 December 2003 and further amended and
restated as of 1 August 2005 and further amended or restated from
time to time (which shall be deemed to include any documentation executed to
refinance the credit facilities made available to the Guarantor pursuant to
such agreement)) between, inter alia, the Guarantor as borrower, the Lender as
Administrative Agent and Collateral Agent and Bank of America, N.A. as
syndication agent.

 

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

 

“Interest Period” means, in relation to a
Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation to
an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest).

 

3

 

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

 

“LIBOR” means in relation to any Loan and
any Interest Period, the rate per annum at which the Lender was offering to
prime banks in the London Interbank Market deposits in dollars for such period
at or about 11.00 a.m. (London time) on the Quotation Date for such
Interest Period.

 

“Loan” means a loan made or to be made under
the Facility or the principal amount outstanding for the time being of that
loan.

 

“Mandatory Cost” means the percentage rate
per annum calculated by the Lender in accordance with Schedule 3 (Mandatory Cost formulae).

 

“Margin” means 1.25 per cent. per annum.

 

“Material Adverse Effect” means a material adverse effect on:

 

(a)                                     the
business, operations, property, condition (financial or otherwise) or prospects
of the Borrower;

 

(b)                                     the
ability of the Borrower to perform its obligations under the Finance
Documents; or

 

(c)                                      the
validity or enforceability of the Finance Documents or the rights or remedies
of the Lender under the Finance Documents.

 

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

 

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

 

(b)                                     if there
is no numerically corresponding day in the calendar month in which that period
is to end, that period shall end on the last Business Day in that calendar
month; and

 

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

 

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

 

“Optional Currency” means sterling.

 

4

 

“Party” means a party to this Agreement.

 

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

 

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

 

(b)                                     for
dollars two Business Days before the first day of that period.

 

“Repeating Representations” means each of
the representations set out in Clauses 16.1 (Status)
to 16.6 (Governing law and enforcement),
Clause 16.9 (No default),
sub-clause 16.10.4 of Clause 16.10 (No
misleading information), Clause 16.11 (Pari passu ranking) and Clause 16.12 (No proceedings pending or threatened).

 

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

 

“Selection Notice” means a notice
substantially in the form set out in Part II of Schedule 2 (Requests) given in accordance with Clause
9 (Interest Periods).

 

“Specified Time” means a time determined in
accordance with Schedule 4 (Timetables).

 

“Subsidiary” means a subsidiary within the
meaning of section 736 of the Companies Act 1985.

 

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

 

“Taxes Act” means the Income and Corporation
Taxes Act 1988.

 

“Termination Date” means 29 December 2006.

 

“Unpaid Sum” means any sum due and payable
but unpaid by the Borrower under the Finance Documents.

 

“Utilisation” means a utilisation of the
Facility.

 

“Utilisation Date” means the date of a
Utilisation, being the date on which the relevant Loan is to be made.

 

“Utilisation Request” means a notice
substantially in the form set out in Part I of Schedule 2 (Requests).

 

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

 

1.2        Construction

 

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

 

5

 

(a)                    the “Borrower”,
the “Lender” or any “Party” shall be construed so as to include
its successors in title, permitted assigns and permitted transferees;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.3        Currency Symbols and Definitions

 

“$” and “dollars”
denote lawful currency of the United States of America. “£” and “sterling”
denotes lawful currency of the United Kingdom.

 

1.4        Third party rights

 

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

 

6

 

2.           THE FACILITY

 

Subject to the terms
of this Agreement, the Lender makes available to the Borrower a multicurrency
term loan facility in an aggregate amount of $18,000,000 to be fully drawn down
by the Borrower in a single Utilisation during the Availability Period.

 

3.           PURPOSE

 

3.1        Purpose

 

The Borrower shall
apply all amounts borrowed by it under the Facility towards its general
corporate purposes.

 

3.2        Monitoring

 

The Lender is not bound
to monitor or verify the application of any amount borrowed pursuant to this
Agreement.

 

4.           CONDITIONS OF UTILISATION

 

4.1        Initial conditions precedent

 

The Borrower may not
deliver a Utilisation Request unless the Lender has received all of the documents
and other evidence listed in Schedule 1 (Conditions
precedent) in form and substance satisfactory to the Lender. The
Lender shall notify the Borrower promptly upon being so satisfied.

 

4.2        Further conditions precedent

 

4.2.1                         The Lender will only
be obliged to make a Loan available to the Borrower if on the date of the
Utilisation Request and on the proposed Utilisation Date:

 

(a)                    no Default is continuing or would result from
the proposed Loan; and

 

(b)                    the Repeating Representations to be made by the
Borrower are true in all material respects.

 

4.3        Maximum number of Loans

 

4.3.1                         The Borrower may not
deliver a Utilisation Request if, as a result of the proposed Utilisation, more
than one (1) Loan would be outstanding.

 

4.3.2                         The Borrower may not
request that a Loan be divided if, as a result of the proposed division, more
than five (5) Loans would be outstanding.

 

5.           UTILISATION

 

5.1        Delivery of a Utilisation Request

 

The Borrower may utilise
the Facility by delivery to the Lender of a duly completed Utilisation Request
not later than the Specified Time.

 

5.2        Completion of a Utilisation Request

 

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

 

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

 

7

 

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

 

(c)                     the proposed Interest Period complies with
Clause 9 (Interest Periods).

 

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

 

5.3        Currency and amount

 

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

 

5.3.2                         The amount of the
proposed Loan must be a minimum of $1,000,000 (or its equivalent in the
Optional Currency) or if less, the Available Facility, in any event such that
its Base Currency Amount is less than or equal to the Available Facility.

 

6.           REPAYMENT

 

6.1        Repayment of Loans

 

The
Borrower shall repay the Loans made to it in full on the Termination Date.

 

7.           PREPAYMENT AND CANCELLATION

 

7.1        Illegality

 

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

 

7.1.1                         the Lender shall
promptly notify the Borrower upon becoming aware of that event whereupon the
Facility will be immediately cancelled; and

 

7.1.2                         the Borrower shall
repay the Loans made to the Borrower on the last day of the Interest Period for
each Loan occurring after the Lender has notified the Borrower or, if earlier,
the date specified by the Lender in the notice delivered to the Borrower.

 

7.2        Change of control

 

7.2.1                         If the Guarantor
ceases to control the Borrower directly or indirectly:

 

(a)                    the Borrower shall promptly notify the Lender
upon becoming aware of that event;

 

(b)                    the Lender shall not be obliged to fund a
Utilisation; and

 

(c)                     the Lender may, by not less than 3 days notice
to the Borrower, cancel the Facility and declare all outstanding Loans,
together with accrued interest, and all other amounts accrued under the Finance
Documents immediately due and payable, whereupon the Facility will be cancelled
and all such outstanding amounts will become immediately due and payable.

 

8

 

7.2.2                         For the purpose of
sub-clause 7.2.1 above “control”
means:

 

(a)                    the power (whether by way of ownership of
shares, proxy, contract, agency or otherwise) to:

 

(i)                       cast, or control the
casting of, more than one-half of the maximum number of votes that might be
cast at a general meeting of the Borrower; or

 

(ii)                    appoint or remove all, or the majority, of the
directors or other equivalent officers of the Borrower; or

 

(iii)                 give directions with respect to the operating
and financial policies of the Borrower which the directors or other equivalent
officers of the Borrower are obliged to comply with; or

 

(b)                    the holding of more than one-half of the issued
share capital of the Borrower (excluding any part of that issued share
capital that carries no right to participate beyond a specified amount in a
distribution of either profits or capital).

 

7.3        Voluntary cancellation

 

The Borrower may, if
it gives the Lender not less than 2 Business Days’ (or such shorter period as
the Lender may agree) prior notice prior to the expiry of the Availability
Period, cancel the whole or any part (being a minimum amount of
$1,000,000) of the Available Facility.

 

7.4        Voluntary prepayment of Loans

 

7.4.1                         The Borrower may, if it
gives the Lender not less than 2 Business Days’ (or such shorter period as the
Lender may agree) prior notice, prepay the whole or any part of any
Loan (but, if in part, being an amount that reduces the Base Currency Amount of
the Loan by a minimum amount of $1,000,000).

 

7.4.2                         A Loan may only
be prepaid after the last day of the Availability Period (or, if earlier, the
day on which the Available Facility is zero).

 

7.5        Restrictions

 

7.5.1                         Any notice of
cancellation or prepayment given by any Party under this Clause 7 shall be
irrevocable and, unless a contrary indication appears in this Agreement, shall
specify the date or dates upon which the relevant cancellation or prepayment is
to be made and the amount of that cancellation or prepayment.

 

7.5.2                         Any prepayment under
this Agreement shall be made together with accrued interest on the amount
prepaid and, subject to any Break Costs, without premium or penalty.

 

7.5.3                         The Borrower may not
reborrow any part of the Facility which is prepaid.

 

9

 

7.5.4                         The Borrower shall
not repay or prepay all or any part of the Loans or cancel all or any part of
the Available Facility except at the times and in the manner expressly provided
for in this Agreement.

 

7.5.5                         No amount of the
Facility cancelled under this Agreement may be subsequently reinstated.

 

8.           INTEREST

 

8.1        Calculation of interest

 

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

 

8.1.1                         Margin;

 

8.1.2                         LIBOR; and

 

8.1.3                         Mandatory Cost, if
any.

 

8.2        Payment of interest

 

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

 

8.3        Default interest

 

8.3.1                         If the Borrower fails
to pay any amount payable by it under a Finance Document on its due date,
interest shall accrue on the overdue amount from the due date up to the date of
actual payment (both before and after judgment) at a rate which, subject to
sub-clause 8.3.2 below, is one per cent higher than the rate which would have
been payable if the overdue amount had, during the period of non-payment,
constituted a Loan in the currency of the overdue amount for successive
Interest Periods, each of a duration selected by the Lender (acting reasonably).
Any interest accruing under this Clause 8.3 shall be immediately payable by the
Borrower on demand by the Lender.

 

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

 

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

 

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

 

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

 

10

 

8.4        Notification of rates of interest

 

The Lender shall
promptly notify the Borrower of the determination of a rate of interest under
this Agreement.

 

9.           INTEREST PERIODS

 

9.1        Selection of Interest Periods

 

9.1.1                         The Borrower may select
an Interest Period for a Loan in the Utilisation Request for that Loan or (if
the Loan has already been borrowed) in a Selection Notice.

 

9.1.2                         Each Selection Notice
for a Loan is irrevocable and must be delivered to the Lender by the Borrower
not later than the Specified Time.

 

9.1.3                         If the Borrower fails
to deliver a Selection Notice to the Lender in accordance with sub-clause 9.1.2
above, the relevant Interest Period will, subject to Clause 9.2 (Changes to Interest Periods), be one
Month.

 

9.1.4                         Subject to this
Clause 9, the Borrower may select an Interest Period of one, three or six
Months or any other period agreed between the Borrower and the Lender.

 

9.1.5                         An Interest Period
for a Loan shall not extend beyond the Termination Date.

 

9.1.6                         Each Interest Period
for a Loan shall start on the Utilisation Date or (if already made) on the last
day of its preceding Interest Period.

 

9.2        Non-Business Days

 

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

 

9.3        Consolidation and division of Loans

 

9.3.1                         Subject to sub-clause
9.3.2 below, if two or more Interest Periods:

 

(a)                    relate to Loans in the same currency; and

 

(b)                    end on the same date;

 

those Loans will,
unless the Borrower specifies to the contrary in the Selection Notice for the
next Interest Period, be consolidated into, and treated as, a single Loan on
the last day of the Interest Period.

 

9.3.2                         Subject to Clause 4.3
(Maximum number of Loans), if the
Borrower requests in a Selection Notice that a Loan be divided into two or more
Loans of the same currency, that Loan will, on the last day of its Interest
Period, be so divided.

 

11

 

10.        CHANGES TO THE CALCULATION OF INTEREST

 

10.1      Market disruption

 

10.1.1                  If a Market Disruption Event occurs in relation
to a Loan for any Interest Period, then the rate of interest on that Loan for
the Interest Period shall be the percentage rate per annum which is the sum of:

 

(a)                    the Margin;

 

(b)                    the rate notified to the Borrower by the Lender
as soon as practicable and in any event before interest is due to be paid in
respect of that Interest Period, to be that which expresses as a percentage
rate per annum the cost to the Lender of funding that Loan from whatever source
it may reasonably select; and

 

(c)                     the Mandatory Cost, if any.

 

10.1.2                  In this Agreement “Market Disruption Event” means before close of business in
London on the Quotation Day for the relevant Interest Period, the Lender
determines that the cost to it of obtaining matching deposits in the Relevant
Interbank Market would be in excess of LIBOR.

 

10.2      Alternative basis of interest or funding

 

10.2.1                  If a Market Disruption Event occurs and the
Lender or the Borrower so requires, the Lender 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.

 

10.2.2                  Any alternative basis agreed pursuant to
sub-clause 10.2.1 above shall be binding on all Parties.

 

10.3      Break Costs

 

The Borrower shall,
within three Business Days of demand by the Lender, pay to the Lender its Break
Costs attributable to all or any part of a Loan or Unpaid Sum being paid
by the Borrower on a day other than the last day of an Interest Period for that
Loan or Unpaid Sum.

 

11.        TAX GROSS UP AND INDEMNITIES

 

11.1      Definitions

 

11.1.1                  In this Agreement:

 

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

 

11.1.2                  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.

 

12

 

11.2      Tax gross-up

 

11.2.1                  The Borrower shall make all payments to be made
by it without any Tax Deduction, unless a Tax Deduction is required by law.

 

11.2.2                  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 Lender accordingly.

 

11.2.3                  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.

 

11.2.4                  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.

 

11.2.5                  Within thirty days of making either a Tax
Deduction or any payment required in connection with that Tax Deduction, the
Borrower shall deliver to the Lender evidence reasonably satisfactory to the
Lender that the Tax Deduction has been made or (as applicable) any appropriate
payment paid to the relevant taxing authority.

 

11.3      Tax indemnity

 

11.3.1                  The Borrower shall (within three Business Days
of demand by the Lender) pay to the Lender an amount equal to the loss,
liability or cost which the Lender determines will be or has been (directly or
indirectly) suffered for or on account of Tax by the Lender in respect of a
Finance Document.

 

11.3.2                  Sub-clause 11.3.1 above shall not apply:

 

(a)                    with respect to any Tax assessed on the Lender:

 

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

 

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

 

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

 

13

 

(b)                    to the extent a loss, liability or cost is
compensated for by an increased payment under Clause 11.2 (Tax 

gross-up).

 

11.3.3                  If the Lender makes or intends to make a claim
under sub-clause 11.3.1 above, the Lender shall promptly notify the Borrower of
the event which will give, or has given, rise to the claim.

 

11.4      Stamp taxes

 

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

 

11.5      Value added tax

 

11.5.1                  All amounts set out, or expressed to be payable
under a Finance Document by the Borrower to the Lender which (in whole or in
part) constitute the consideration for VAT purposes shall be deemed to be
exclusive of any VAT which is chargeable on such supply, and accordingly,
subject to sub-clause 11.5.2 below, if VAT is chargeable on any supply made by
the Lender to the Borrower under a Finance Document, the Borrower shall pay to
the Lender (in addition to and at the same time as paying the consideration) an
amount equal to the amount of the VAT (and the Lender shall promptly provide an
appropriate VAT invoice to the Borrower).

 

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

 

12.        INCREASED COSTS

 

12.1      Increased costs

 

12.1.1                  Subject to Clause 12.3 (Exceptions) the Borrower shall, within
three Business Days of a demand by the Lender, pay for the account of the
Lender the amount of any Increased Costs incurred by the Lender or any of its
Affiliates as a result of (a) the introduction of or any change in (or in
the interpretation, administration or application of) any law or regulation or (b) compliance
with any law or regulation made after the date of this Agreement.

 

12.1.2                  In this Agreement “Increased Costs” means:

 

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

 

(b)                    an additional or increased cost; or

 

14

 

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

 

which is incurred or
suffered by the Lender or any of its Affiliates to the extent that it is
attributable to the Lender having entered into a commitment or funding or
performing its obligations under any Finance Document.

 

12.2      Increased cost claims

 

If the Lender intends
to make a claim pursuant to Clause 12.1 (Increased
costs), the Lender shall promptly notify the Borrower.

 

12.3      Exceptions

 

12.3.1                  Clause 12.1 (Increased
costs) does not apply to the extent any Increased Cost is:

 

(a)                    attributable to a Tax Deduction required by law
to be made by the Borrower;

 

(b)                    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 sub-clause 11.3.2 of Clause 11.3 (Tax indemnity) applied);

 

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

 

(d)                    attributable to the wilful breach by the Lender
or its Affiliates of any law or regulation.

 

12.3.2                  In this Clause 12.3, a reference to a “Tax Deduction” has the same meaning given
to the term in Clause 11.1 (Definitions).

 

13.        OTHER INDEMNITIES

 

13.1      Currency indemnity

 

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

 

(a)                    making or filing a claim or proof against the
Borrower;

 

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

 

the Borrower shall as
an independent obligation, within three Business Days of demand, indemnify the
Lender against any cost, loss or liability arising out of or as a result of the
conversion including any discrepancy between (i) the rate of exchange used
to convert that Sum from the First Currency into the Second Currency and (ii) the
rate or rates of exchange available to that person at the time of its receipt
of that Sum.

 

15

 

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

 

13.2      Other indemnities

 

13.2.1                  The Borrower shall, within three Business Days
of demand, indemnify the Lender against any cost, loss or liability incurred by
the Lender as a result of:

 

(a)                    the occurrence of any Event of Default;

 

(b)                    a failure by the Borrower to pay any amount due
under a Finance Document on its due date;

 

(c)                     funding, or making arrangements to fund, a Loan
requested by the Borrower in a Utilisation Request but not made by reason of
the operation of any one or more of the provisions of this Agreement (other
than by reason of default or negligence by the Lender); or

 

(d)                    a Loan (or part of a Loan) not being
prepaid in accordance with a notice of prepayment given by the Borrower.

 

13.2.2                  The Borrower shall promptly indemnify the
Lender against any cost, loss or liability incurred by the Lender (acting
reasonably) as a result of:

 

(a)                    investigating any event which it reasonably
believes is a Default; or

 

(b)                    acting or relying on any notice, request or
instruction which it reasonably believes to be genuine, correct and
appropriately authorised.

 

14.        MITIGATION BY THE LENDER

 

14.1      Mitigation

 

14.1.1                  The Lender shall, in consultation with the
Borrower, take all reasonable steps to mitigate any circumstances which arise
and which would result in any amount becoming payable under or pursuant to, or
cancelled pursuant to, any of Clause 7.1 (Illegality),
Clause 11 (Tax gross-up and indemnities),
Clause 12 (Increased costs)
or paragraph 3 of Schedule 3 (Mandatory
Cost formulae) including (but not limited to) transferring its
rights and obligations under the Finance Documents to another Affiliate or
Facility Office.

 

14.1.2                  Sub-clause 14.1.1 above does not in any way limit
the obligations of the Borrower under the Finance Documents.

 

14.2      Limitation of liability

 

14.2.1                  The Borrower shall indemnify the Lender for all
costs and expenses reasonably incurred by the Lender as a result of steps taken
by it under Clause 14.1 (Mitigation).

 

16

 

14.2.2                  The Lender is not obliged to take any steps
under Clause 14.1 (Mitigation)
if, in the opinion of the Lender (acting reasonably), to do so might be
prejudicial to it.

 

15.        COSTS AND EXPENSES

 

15.1      Transaction expenses

 

The Borrower shall
promptly on demand pay the Lender the amount of all costs and expenses
(including legal fees) reasonably incurred by it in connection with the
negotiation, preparation, printing and execution of:

 

15.1.1                  this Agreement and any other documents referred
to in this Agreement; and

 

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

 

15.2      Amendment costs

 

If:

 

15.2.1                  the Borrower requests an amendment, waiver or
consent; or

 

15.2.2                  an amendment is required pursuant to Clause
23.8 (Change of currency),

 

the Borrower shall,
within three Business Days of demand, reimburse the Lender for the amount of
all costs and expenses (including legal fees) reasonably incurred by the Lender
in responding to, evaluating, negotiating or complying with that request or
requirement.

 

15.3      Enforcement costs

 

The Borrower shall,
within three Business Days of demand, pay to the Lender the amount of all costs
and expenses (including legal fees) incurred by the Lender in connection with
the enforcement of, or the preservation of any rights under, any Finance
Document.

 

16.        REPRESENTATIONS

 

The Borrower makes
the representations and warranties set out in this Clause 16 to the Lender on
the date of this Agreement.

 

16.1      Status

 

16.1.1                  It is a limited liability company, duly
incorporated and validly existing under the laws of England and Wales.

 

16.1.2                  It has the power to own its assets and carry on
its business as it is being conducted.

 

16.2      Binding obligations

 

The obligations
expressed to be assumed by it in each Finance Document are legal, valid,
binding and enforceable obligations.

 

17

 

16.3      Non-conflict with other obligations

 

The entry into and
performance by it of, and the transactions contemplated by, the Finance
Documents do not and will not conflict with:

 

16.3.1                  any law or regulation applicable to it;

 

16.3.2                  its constitutional documents; or

 

16.3.3                  any agreement or instrument binding upon it or
any of its assets.

 

16.4      Power and authority

 

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

 

16.5      Validity and admissibility in evidence

 

All Authorisations
required or desirable:

 

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

 

16.5.2                  to make the Finance Documents to which it is a
party admissible in evidence in England and Wales,

 

have been obtained or
effected and are in full force and effect.

 

16.6      Governing law and enforcement

 

16.6.1                  The choice of English law as the governing law
of the Finance Documents will be recognised and enforced in England and Wales.

 

16.6.2                  Any judgment obtained in England in relation to
a Finance Document will be recognised and enforced in England and Wales.

 

16.7      Deduction of Tax

 

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

 

16.8      No filing or stamp taxes

 

Under the laws of
England and Wales 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.

 

16.9      No default

 

16.9.1                  No Event of Default is continuing or might
reasonably be expected to result from the making of any Utilisation.

 

16.9.2                  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 which might have a Material
Adverse Effect.

 

18

 

16.10    No misleading information

 

16.10.1           Any factual information provided to the Lender
prior to the date of this Agreement by the Borrower 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.

 

16.10.2           All financial projections provided to the
Lender prior to the date of this Agreement by the Borrower have been prepared
on the basis of recent historical information and on the basis of reasonable
assumptions.

 

16.10.3           Nothing has occurred or been omitted from any
factual information and no information has been given or withheld that results
in the information provided to the Lender prior to the date of this Agreement
being untrue or misleading in any material respect.

 

16.10.4           All written information (other than the
information provided pursuant to sub-clauses 16.10.1 to 16.10.3 above) supplied
by it is true, complete and accurate in all material respects as at the date it
was given and is not misleading in any respect.

 

16.11    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.

 

16.12    No proceedings pending or threatened

 

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

 

16.13    Repetition

 

The Repeating
Representations are deemed to be made by the Borrower (by reference to the
facts and circumstances then existing) on the date of each Utilisation Request
and the first day of each Interest Period.

 

17.        INFORMATION UNDERTAKINGS

 

The undertakings in
this Clause 17 remain in force from the date of this Agreement for so long as
any amount is outstanding under the Finance Documents or any commitment is in
force.

 

17.1      Information: miscellaneous

 

The Borrower shall
supply to the Lender:

 

17.1.1                  all documents dispatched by the Borrower to its
shareholders (or any class of them) or its creditors generally at the same
time as they are dispatched;

 

17.1.2                  promptly upon becoming aware of them, the
details of any litigation, arbitration or administrative proceedings which are
current, threatened or 

 

19

 

pending
against it, and which might, if adversely determined, have a Material Adverse
Effect; and

 

17.1.3                  promptly, such further information regarding
the financial condition, business and operations of the Borrower as the Lender may reasonably
request.

 

17.2      Notification of default

 

17.2.1                  The Borrower shall notify the Lender of any
Default (and the steps, if any, being taken to remedy it) promptly upon
becoming aware of its occurrence.

 

17.2.2                  Promptly upon a request by the Lender, the
Borrower shall supply to the Lender a certificate signed by two of its
directors or senior officers on its behalf certifying that no Default is
continuing (or if a Default is continuing, specifying the Default and the steps,
if any, being taken to remedy it).

 

17.3      “Know your customer” checks

 

If:

 

17.3.1                  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;

 

17.3.2                  any change in the status of the Borrower or
the composition of the shareholders of the Borrower after the date of this
Agreement; or

 

17.3.3                  a proposed assignment by the Lender of any of
its rights under this Agreement,

 

obliges the Lender (or, in the case of sub-clause
17.3.3 above, any prospective new Lender) to comply with “know your customer”
or similar identification procedures in circumstances where the necessary
information is not already available to it, the Borrower shall promptly upon
the request of the Lender supply, or procure the supply of, such documentation
and other evidence as is reasonably requested by the Lender (for itself or, in
the case of the event described in sub-clause 17.3.3 above, on behalf of any
prospective new Lender) in order for the Lender or, in the case of the event
described in sub-clause 17.3.3 above, any prospective new Lender to carry out
and be satisfied it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.

 

18.        GENERAL UNDERTAKINGS

 

The undertakings in
this Clause 18 remain in force from the date of this Agreement for so long as
any amount is outstanding under the Finance Documents or any commitment is in
force.

 

18.1      Authorisations

 

The Borrower shall
promptly:

 

18.1.1                  obtain, comply with and do all that is
necessary to maintain in full force and effect; and

 

20

 

18.1.2                  supply certified copies to the Lender of,

 

any Authorisation
required under any law or regulation of England and Wales to enable it to perform its
obligations under the Finance Documents and to ensure the legality, validity,
enforceability or admissibility in evidence in its jurisdiction of
incorporation of any Finance Document.

 

18.2      Compliance with laws

 

The Borrower shall
comply in all respects with all laws to which it may be subject, if
failure so to comply would materially impair its ability to perform its
obligations under the Finance Documents.

 

18.3      Negative pledge

 

18.3.1                  The Borrower shall not create or permit to
subsist any Security over any of its assets.

 

18.3.2                  The Borrower shall not:

 

(a)                    sell, transfer or otherwise dispose of any of
its assets on terms whereby they are or may be leased to or re-acquired by
the Borrower;

 

(b)                    sell, transfer or otherwise dispose of any of
its receivables on recourse terms;

 

(c)                     enter into any arrangement under which money or
the benefit of a bank or other account may be applied, set-off or made
subject to a combination of accounts; or

 

(d)                    enter into any other preferential arrangement
having a similar effect,

 

in circumstances
where the arrangement or transaction is entered into primarily as a method of
raising Financial Indebtedness or of financing the acquisition of an asset.

 

18.4      Merger

 

The Borrower shall
not enter into any amalgamation, demerger, merger or corporate reconstruction.

 

18.5      Change of business

 

The Borrower shall
procure that no substantial change is made to the general nature of the
business of the Borrower from that carried on at the date of this Agreement.

 

18.6      Insurance

 

The Borrower shall
maintain insurances on and in relation to its business and assets with
reputable underwriters or insurance companies against those risks and to the
extent as is usual for companies carrying on the same or substantially similar
business.

 

18.7      Taxation

 

The Borrower shall
duly and punctually pay and discharge all Taxes imposed upon it or its assets
within the time period allowed without incurring penalties (except to the 

 

21

 

extent that (a) such
payment is being contested in good faith, (b) adequate reserves are being
maintained for those Taxes and (c) such payment can be lawfully withheld).

 

19.        EVENTS OF DEFAULT

 

Each of the events or
circumstances set out in Clause 19 is an Event of Default.

 

19.1      Non-payment

 

The
Borrower does not pay on the due date any amount payable pursuant to a Finance
Document at the place at and in the currency in which it is expressed to be
payable unless its failure to pay is caused by administrative or technical
error and payment is made within 2 Business Days of its due date.

 

19.2      Other obligations

 

19.2.1                  The Borrower does not comply with any provision
of the Finance Documents (other than those referred to in Clause 19.1 (Non-payment).

 

19.2.2                  No Event of Default under sub-clause 19.2.1
above will occur if the failure to comply is capable of remedy and is remedied
within 10 Business Days of the Lender giving notice to the Borrower or the
Borrower becoming aware of the failure to comply.

 

19.3      Misrepresentation

 

Any representation or
statement made or deemed to be made by the Borrower in the Finance Documents or
any other document delivered by or on behalf of the Borrower under or in
connection with any Finance Document is or proves to have been incorrect or
misleading in any material respect when made or deemed to be made.

 

19.4      Cross default

 

19.4.1                  Any Financial Indebtedness of the Borrower is
not paid when due nor within any originally applicable grace period.

 

19.4.2                  Any Financial Indebtedness of the Borrower 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).

 

19.4.3                  Any commitment for any Financial Indebtedness
of the Borrower is cancelled or suspended by a creditor of the Borrower as a
result of an event of default (however described).

 

19.4.4                  Any creditor of the Borrower becomes entitled
to declare any Financial Indebtedness of the Borrower due and payable prior to
its specified maturity as a result of an event of default (however described).

 

19.4.5                  No Event of Default will occur under this
Clause 19.4 if the aggregate amount of Financial Indebtedness or commitment for
Financial Indebtedness falling within sub-clauses 19.4.1 to 19.4.4 above is
less than $1,000,000 (or its equivalent in another currency or currencies).

 

22

 

19.5      Insolvency

 

19.5.1                  The Borrower is unable or admits inability to
pay its debts as they fall due, suspends making payments on any of its debts
or, by reason of actual or anticipated financial difficulties, commences
negotiations with one or more of its creditors with a view to rescheduling any
of its indebtedness.

 

19.5.2                  The value of the assets of the Borrower is less
than its liabilities (taking into account contingent and prospective
liabilities).

 

19.5.3                  A moratorium is declared in respect of any
indebtedness of the Borrower.

 

19.6      Insolvency proceedings

 

Any corporate action,
legal proceedings or other procedure or step is taken in relation to:

 

19.6.1                  the suspension of payments, a moratorium of any
indebtedness, winding-up, dissolution, administration or reorganisation (by way
of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower
other than a solvent liquidation or reorganisation of the Borrower;

 

19.6.2                  a composition, compromise, assignment or
arrangement with any creditor of the Borrower;

 

19.6.3                  the appointment of a liquidator (other than in
respect of a solvent liquidation of the Borrower), receiver, administrative
receiver, administrator, compulsory manager or other similar officer in respect
of the Borrower or any of its assets; or

 

19.6.4                  enforcement of any Security over any assets of
the Borrower,

 

or any analogous
procedure or step is taken in any jurisdiction.

 

19.7      Creditors’ process

 

Any expropriation,
attachment, sequestration, distress or execution affects any asset or assets of
the Borrower.

 

19.8      Unlawfulness

 

It is or becomes
unlawful for the Borrower to perform any of its obligations under the
Finance Documents.

 

19.9      Repudiation

 

The Borrower
repudiates a Finance Document or evidences an intention to repudiate a Finance
Document.

 

19.10    Guarantee Default

 

19.10.1           It is or becomes unlawful for the Guarantor to
perform any of its obligations under the Guarantee.

 

19.10.2           The Guarantor repudiates the Guarantee or
evidences an intention to repudiate the Guarantee.

 

23

 

19.10.3           The Guarantor breaches any term of the
Guarantee or fails to perform any of its obligations under the Guarantee.

 

19.11    Guarantor Cross Default

 

Any event of default
(howsoever described) occurs under the Guarantor Credit Agreement.

 

19.12    Material adverse change

 

Any event or
circumstance occurs which the Lender reasonably believes might have a Material
Adverse Effect.

 

19.13    Acceleration

 

On and at any time
after the occurrence of an Event of Default the Lender may, by notice to the Borrower:

 

19.13.1           cancel the Facility whereupon the Facility
shall immediately be cancelled;

 

19.13.2           declare that all or part of the Loans,
together with accrued interest, and all other amounts accrued or outstanding
under the Finance Documents be immediately due and payable, whereupon they
shall become immediately due and payable; and/or

 

19.13.3           declare that all or part of the Loans be
payable on demand, whereupon they shall immediately become payable on demand by
the Lender.

 

20.        CHANGES TO THE LENDER

 

20.1      Assignments by the Lender

 

The Lender may assign
any of its rights to another bank or financial institution or to a trust, fund
or other entity which is regularly engaged in or established for the purpose of
making, purchasing or investing in loans, securities or other financial assets
(the “New Lender”).

 

20.2      Conditions of assignment

 

20.2.1                  An assignment will only be effective on:

 

(a)                    receipt by the Borrower of written confirmation
from the New Lender (in form and substance satisfactory to the Borrower
(acting reasonably)) that the New Lender will assume the same obligations to
the other Parties as it would have been under if it was the Lender; and

 

(b)                    performance by the Lender of all “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 Lender shall promptly notify to
the New Lender.

 

20.2.2                  If:

 

(a)                    the Lender assigns any of its rights under the
Finance Documents or changes its Facility Office; and

 

24

 

(b)                    as a result of circumstances existing at the
date the assignment or change occurs, the Borrower would be obliged to make a
payment to the New Lender (or the Lender acting through its new Facility
Office) under Clause 11 (Tax gross-up and
indemnities) or Clause 12 (Increased
costs),

 

then the New Lender
(or the Lender acting through its new Facility Office) is only entitled to
receive payment under those Clauses to the same extent as the Lender (or the
Lender acting through its previous Facility Office) would have been if the
assignment or change had not occurred.

 

20.3      Limitation of responsibility of the Lender

 

20.3.1                  Unless expressly agreed to the contrary, the
Lender makes no representation or warranty and assumes no responsibility to a
New Lender for:

 

(a)                    the legality, validity, effectiveness, adequacy
or enforceability of the Finance Documents or any other documents;

 

(b)                    the financial condition of the Borrower;

 

(c)                     the performance and observance by the Borrower
of its obligations under the Finance Documents or any other documents; or

 

(d)                    the accuracy of any statements (whether written
or oral) made in or in connection with any Finance Document or any other
document,

 

and any representations
or warranties implied by law are excluded.

 

20.3.2                  Each New Lender confirms to the Lender that it:

 

(a)                    has made (and shall continue to make) its own
independent investigation and assessment of the financial condition and affairs
of the Borrower and its related entities in connection with this Agreement and
has not relied exclusively on any information provided to it by the Lender in
connection with any Finance Document; and

 

(b)                    will continue to make its own independent
appraisal of the creditworthiness of the Borrower and its related entities
whilst any amount is or may be outstanding under the Finance Documents or
any commitment is in force.

 

20.3.3                  Nothing in any Finance Document obliges the
Lender to:

 

(a)                    accept a re-assignment from a New Lender of any
of the rights assigned under this Clause 20; or

 

(b)                    support any losses directly or indirectly
incurred by the New Lender by reason of the non-performance by the Borrower of
its obligations under the Finance Documents or otherwise.

 

25

 

20.4      Disclosure of information

 

The Lender may disclose
to any of its Affiliates and any other person:

 

20.4.1                  to (or through) whom the Lender assigns (or may potentially
assign) all or any of its rights under this Agreement;

 

20.4.2                  with (or through) whom the Lender enters into
(or may potentially enter into) any sub-participation in relation to, or
any other transaction under which payments are to be made by reference to, this
Agreement or the Borrower; or

 

20.4.3                  to whom, and to the extent that, information is
required to be disclosed by any applicable law or regulation,

 

any information about
the Borrower and the Finance Documents as the Lender shall consider
appropriate.

 

21.        CHANGES TO THE BORROWER

 

The Borrower may not
assign any of its rights or transfer any of its rights or obligations under the
Finance Documents.

 

22.        CONDUCT OF BUSINESS BY THE LENDER

 

22.1      No provision of this Agreement will:

 

22.1.1                  interfere with the right of the Lender to
arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

22.1.2                  oblige the Lender to investigate or claim any
credit, relief, remission or repayment available to it or the extent, order and
manner of any claim; or

 

22.1.3                  oblige the Lender to disclose any information
relating to its affairs (tax or otherwise) or any computations in respect of
Tax.

 

23.        PAYMENT MECHANICS

 

23.1      Payments to the Lender

 

23.1.1                  On each date on which the Borrower is required
to make a payment under a Finance Document, the Borrower shall make the same
available to the Lender (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 Lender as being customary at the time for settlement of transactions in the
relevant currency in the place of payment.

 

23.1.2                  Payment shall be made to the relevant accounts
below (or such other account as the Lender may specify for such purposes):

 

Payments in Dollars

 

Pay
to (Name of Bank):  J P Morgan Chase New
York

 

SWIFT
Address:  CHASUS33XXX

 

26

 

Account
No:  0010962009

 

Account
Name: J P Morgan Chase Bank, London

 

SWIFT:  CHASGB2L

 

Ref:  European Loans “Good ‘N’ Natural Limited”

 

Payments
in Sterling

 

Pay
to (Name of Bank): J P Morgan Chase Bank, London (CHASGB2L)

 

Address:                                                 Direct
Sort Code 60-92-42

 

Reference:                                     Attn
LDNLOANS/ Good ‘N’ Natural Limited

 

23.2      Payments to the Borrower

 

23.2.1                  On each date on which this Agreement requires
an amount to be paid by the Lender, the Lender shall make the same available to
the Borrower in such funds and to such account with such bank as the Borrower
shall specify from time to time.

 

23.2.2                  A payment will be deemed to have been made by
the Lender on the date on which it was required to be made under this Agreement
if the Lender has, on or before that date, taken steps to make that payment in
accordance with the regulations or operating procedures of the clearing system
used by the Lender in order to make the payment.

 

23.3      Distributions to the Borrower

 

The Lender may (with
the consent of the Borrower or in accordance with Clause 24 (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.

 

23.4      Partial payments

 

23.4.1                  If the Lender receives a payment that is
insufficient to discharge all the amounts then due and payable by the Borrower
under the Finance Documents, the Lender shall apply that payment towards the
obligations of the Borrower under the Finance Documents in the following order:

 

(a)       first, in or towards payment pro rata of any unpaid fees,
costs and expenses of the Lender under the Finance Documents;

 

(b)       secondly, in or towards payment pro rata of any accrued
interest or commission due but unpaid under this Agreement;

 

(c)       thirdly, in or towards payment pro rata of any principal due
but unpaid under this Agreement; and

 

27

 

(d)       fourthly, in or towards payment pro rata of any other sum due
but unpaid under the Finance Documents.

 

23.4.2                  The Lender may vary the order set out in
paragraphs (b) to (d) of sub-clause 23.4.1 above.

 

23.4.3                  Sub-clauses 23.4.1 and 23.4.2 above will
override any appropriation made by the Borrower.

 

23.5      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.

 

23.6      Business Days

 

23.6.1                  Any payment which is due to be made on a day
that is not a Business Day shall be made on the next Business Day in the same
calendar month (if there is one) or the preceding Business Day (if there is
not).

 

23.6.2                  During any extension of the due date for
payment of any principal or Unpaid Sum under this Agreement interest is payable
on the principal or Unpaid Sum at the rate payable on the original due date.

 

23.7      Currency of account

 

23.7.1                  Subject to sub-clauses 23.7.2 to 23.7.5 below,
the Base Currency is the currency of account and payment for any sum due from
the Borrower under any Finance Document.

 

23.7.2                  A repayment of a Loan or Unpaid Sum or a part of
a Loan or Unpaid Sum shall be made in the currency in which that Loan or Unpaid
Sum is denominated on its due date.

 

23.7.3                  Each payment of interest shall be made in the
currency in which the sum in respect of which the interest is payable was
denominated when that interest accrued.

 

23.7.4                  Each payment in respect of costs, expenses or
Taxes shall be made in the currency in which the costs, expenses or Taxes are
incurred.

 

23.7.5                  Any amount expressed to be payable in a
currency other than the Base Currency shall be paid in that other currency.

 

23.8      Change of currency

 

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

 

(a)                    any reference in the Finance Documents to, and
any obligations arising under the Finance Documents in, the currency of that
country shall be 

 

28

 

translated
into, or paid in, the currency or currency unit of that country designated by
the Lender (after consultation with the Borrower); and

 

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

 

23.8.2                  If a change in any currency of a country
occurs, this Agreement will, to the extent the Lender (acting reasonably and
after consultation with the Borrower) specifies to be necessary, be amended to
comply with any generally accepted conventions and market practice in the
London Interbank Market and otherwise to reflect the change in currency.

 

24.                         SET-OFF

 

The Lender may set
off any matured obligation due from the Borrower under the Finance Documents
(to the extent beneficially owned by the Lender) against any matured obligation
owed by the Lender to the Borrower, regardless of the place of payment, booking
branch or currency of either obligation. If the obligations are in different
currencies, the Lender may convert either obligation at a market rate of
exchange in its usual course of business for the purpose of the set-off.

 

25.        NOTICES

 

25.1      Communications in writing

 

Any communication to
be made under or in connection with the Finance Documents shall be made in
writing and, unless otherwise stated, may be made by fax or letter.

 

25.2      Addresses

 

The address and fax
number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to
be made or delivered under or in connection with the Finance Documents is:

 

25.2.1                  in the case of the Borrower, that identified
with its name below; and

 

25.2.2                  in the case of the Lender, that identified with
its name below other than in relation to operational matters (such as
Utilisation Requests) which should be sent to:

 

European Loan Operations

4th Floor Prestige
Knowledge Park

Near Marathalli Junction, Outer Ring Road

Kadabeesanahalli

Vathur Hobli

Bangalore

560087

 

For the attention of:

 

Bipin Tiwari/Sharath S
Shetty/Karthikesh Ema/Veena B Gowda

 

29

 

Fax:

 

+ 44 (0)20 7492 3297

+ 44 (0)20 7492 3298

 

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

 

25.3      Delivery

 

25.3.1                  Any communication or document made or delivered
by one person to another under or in connection with the Finance Documents will
only be effective:

 

(a)                    if by way of fax, when received in legible
form; or

 

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

 

and, if a particular
department or officer is specified as part of its address details provided
under Clause 25.2 (Addresses), if
addressed to that department or officer.

 

25.3.2                  Any communication or document to be made or
delivered to the Lender will be effective only when actually received by the
Lender and then only if it is expressly marked for the attention of the
department or officer identified with the Lender’s signature below (or any
substitute department or officer as the Lender shall specify for this purpose).

 

25.4      English language

 

25.4.1                  Any notice given under or in connection with
any Finance Document must be in English.

 

25.4.2                  All other documents provided under or in connection
with any Finance Document must be:

 

(a)                    in English; or

 

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

 

26.        CALCULATIONS AND CERTIFICATES

 

26.1      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 the Lender are prima facie evidence of the matters to
which they relate.

 

30

 

26.2      Certificates and Determinations

 

Any certification or
determination by the Lender of a rate or amount under any Finance Document is,
in the absence of manifest error, conclusive evidence of the matters to which
it relates.

 

26.3      Day count convention

 

Any interest,
commission or fee accruing under a Finance Document will accrue from day to day
and is calculated on the basis of the actual number of days elapsed and a year
of 360 days for any amounts in dollars and 365 days for any amounts in
sterling.

 

27.        PARTIAL INVALIDITY

 

If, at any time, any
provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

 

28.        REMEDIES AND WAIVERS

 

No failure to
exercise, nor any delay in exercising, on the part of the Lender, any
right or remedy under the Finance Documents shall operate as a waiver, nor
shall any single or partial exercise of any right or remedy prevent any further
or other exercise or the exercise of any other right or remedy. The rights and
remedies provided in this Agreement are cumulative and not exclusive of any
rights or remedies provided by law.

 

29.        AMENDMENTS AND WAIVERS

 

Any term of the
Finance Documents may be amended or waived only with the consent of the
Lender and the Borrower and any such amendment or waiver will be binding on all
Parties.

 

30.        COUNTERPARTS

 

Each Finance Document
may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of the
Finance Document.

 

31.        GOVERNING LAW

 

This Agreement is
governed by English law.

 

31

 

32.        ENFORCEMENT

 

32.1      Jurisdiction

 

32.1.1                  The courts of England have exclusive
jurisdiction to settle any dispute arising out of or in connection with this
Agreement (including a dispute regarding the existence, validity or termination
of this Agreement) (a “Dispute”).

 

32.1.2                  The Parties agree that the courts of England
are the most appropriate and convenient courts to settle Disputes and
accordingly no Party will argue to the contrary.

 

32.1.3                  This Clause 32.1 is for the benefit of the
Lender only. As a result, the Lender shall not be prevented from taking
proceedings relating to a Dispute in any other courts with jurisdiction. To the
extent allowed by law, the Lender may take concurrent proceedings in any
number of jurisdictions.

 

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

 

32

 

SCHEDULE 1

CONDITIONS PRECEDENT

 

(a)                                     A copy of
the constitutional documents of the Borrower.

 

(b)                                     A copy of
a resolution of the board of directors of the Borrower:

 

(i)                        approving
the terms of, and the transactions contemplated by, the Finance Documents and
resolving that it execute the Finance Documents;

 

(ii)                     authorising
a specified person or persons to execute the Finance Documents on its behalf;
and

 

(iii)                  authorising
a specified person or persons, on its behalf, to sign and/or despatch all
documents and notices (including, if relevant, any Utilisation Request and
Selection Notice) to be signed and/or despatched by it under or in connection
with the Finance Documents.

 

(c)                                      A specimen
of the signature of each person authorised by the resolution referred to in
paragraph (b) above.

 

(d)                                     A
certificate of the Borrower (signed by a director or the company secretary)
confirming that borrowing the Facility would not cause any borrowing or similar
limit binding on the Borrower to be exceeded.

 

(e)                                      A
certificate of the Borrower (signed by a director or the company secretary)
certifying that each copy document relating to it specified in paragraphs (a) to
(c) (inclusive)in this Schedule 1 is correct, complete and in full
force and effect as at a date no earlier than the date of this Agreement.

 

(f)                                       Evidence
that the costs and expenses (if any) then due from the Borrower pursuant to
Clause 15 (Costs and expenses)
have been paid or will be paid by the first Utilisation Date.

 

(g)                                      The
Guarantee duly executed by the Guarantor and in form and substance
satisfactory to the Lender.

 

(h)                                     A copy of
a resolution of the board of directors of the Guarantor approving the terms of,
and the transactions contemplated by, the Guarantee Documents and resolving
that it execute the Guarantee.

 

(i)                                         An up to
date incumbency certificate of the Guarantor setting out the names and specimen
signatures of each person authorised to execute the Guarantee on its behalf.

 

33

 

SCHEDULE 2

REQUESTS

 

Part A

Utilisation Request

 

From:               Good ‘N’
Natural Limited

 

To:                                      JPMorgan
Chase Bank, N.A., London Branch

 

European Loan Operations

4th Floor Prestige
Knowledge Park

Near Marathalli Junction, Outer Ring Road

Kadabeesanahalli

Vathur Hobli

Bangalore

560087

 

Contact names, Telephone, Email:

 

Bipin Tiwari

Tel:  91-80-41760739

Email: bipin.s.tiwari@jpmchase.com

 

Sharath S Shetty

Tel:  91-80-41760744

Emai:  sharath.s.shetty@jpmchase.com

 

Karthikesh Ema        

Tel:  91-80-41760743

Email:  karthikesh.b.ema@jpmchase.com

 

Veena B Gowda

Tel:  91-80-41760745

Email:  veena.b.gowda@jpmchase.com

 

Fax Numbers:

 

44 (0)20 7492 3297

44 (0)20 7492 3298

 

 

Dated:

 

Dear Sirs

 

Good ‘N’ Natural Limited – $18,000,000 Facility Agreement

 

dated [     ] 2006 (the
“Agreement”)

 

1.                                We refer
to the Agreement. This is a Utilisation Request. Terms defined in the Agreement
have the same meaning in this Utilisation Request unless given a different
meaning in this Utilisation Request.

 

34

 

2.                                We wish to
borrow a Loan on the following terms:

 

	
  Proposed Utilisation Date:

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

  
	
   

  	
   

  
	
  Currency of Loan:

  	
  Dollars/Sterling

  
	
   

  	
   

  
	
  Amount:

  	
  [           ]
  or, if less, the Available Facility

  
	
   

  	
   

  
	
  Interest Period:

  	
  [                 ]

  

 

3.                                We confirm
that each condition specified in Clause 4.2 (Further
conditions precedent) is satisfied on the date of this Utilisation
Request.

 

4.                                The
proceeds of this Loan should be credited to [account].

 

5.                                This
Utilisation Request is irrevocable.

 

	
   

  	
  Yours
  faithfully

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  authorised
  signatory for

  	
   

  
	
   

  	
  Good
  ‘N’ Natural Limited

  	
   

  

 

35

 

Part B

Selection Notice

 

From:                        Good ‘N’
Natural Limited

 

To:                                      JPMorgan
Chase Bank, N.A., London Branch

 

European Loan Operations

4th Floor Prestige
Knowledge Park

Near Marathalli Junction, Outer Ring Road

Kadabeesanahalli

Vathur Hobli

Bangalore

560087

 

Contact names, Telephone, Email:

 

Bipin Tiwari

Tel:  91-80-41760739

Email: bipin.s.tiwari@jpmchase.com

 

Sharath S Shetty

Tel:  91-80-41760744

Emai:  sharath.s.shetty@jpmchase.com

 

Karthikesh Ema        

Tel:  91-80-41760743

Email:  karthikesh.b.ema@jpmchase.com

 

Veena B Gowda

Tel:  91-80-41760745

Email:  veena.b.gowda@jpmchase.com

 

Fax Numbers:

 

44 (0)20 7492 3297

44 (0)20 7492 3298

 

 

Dated:                    [           ]

 

Dear Sirs

 

Good ‘N’ Natural Limited – US$18,000,000 Facility Agreement 

dated [           ] 2006 (the “Agreement”)

 

1.                                We refer
to the Agreement. This is a Selection Notice. Terms defined in the Agreement
have the same meaning in this Selection Notice unless given a different meaning
in this Selection Notice.

 

2.                                We refer
to the following Loan in [Dollars/Sterling] with an Interest Period ending on [date].

 

36

 

3.                                [We
request that the above Loan be divided into
[             ]
Loans in the same currency and with the following Interest Periods:     [        
]]

 

or

 

[We request that the
next Interest Period for the above Loan[s] is [      ]].

 

4.                                This
Selection Notice is irrevocable.

 

	
   

  	
  Yours
  faithfully

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  authorised
  signatory for

  	
   

  
	
   

  	
  Good
  ‘N’ Natural Limited

  	
   

  

 

37

 

SCHEDULE 3

MANDATORY COST FORMULAE

 

1.                                The
Mandatory Cost is an addition to the interest rate in relation to the cost of
compliance with (a) the requirements of the Bank of England and/or the
Financial Services Authority (or, in either case, any other authority which
replaces all or any of its functions) or (b) the requirements of the
European Central Bank.

 

2.                                On the
first day of each Interest Period (or as soon as possible thereafter) the
Lender shall calculate a rate (the “Additional
Cost Rate”) in accordance with the paragraphs set out below
(expressed as a percentage rate per annum).

 

3.                                The
Additional Cost Rate for the Lender if lending from a Facility Office in a
Participating Member State will be the percentage determined by the Lender as
the cost of complying with the minimum reserve requirements of the European
Central Bank.

 

4.                                The
Additional Cost Rate for the Lender if lending from a Facility Office in the
United Kingdom will be calculated by the Lender as follows:

 

(a)                                     in
relation to a domestic sterling Loan:

 

	
   

  	
  AB
  + C(B – D) + E x 0.01

  	
  per cent. per annum

  
	
   

  	
  100 – (A + C)

  

 

(b)                                     in
relation to a Loan in dollars:

 

	
   

  	
  E x 0.01

  	
  per cent. per annum.

  
	
   

  	
  300

  

 

Where:

 

A                                            is the
percentage of Eligible Liabilities (assuming these to be in excess of any
stated minimum) which the Lender is from time to time required to maintain as
an interest free cash ratio deposit with the Bank of England to comply with
cash ratio requirements.

 

B                                            is the
percentage rate of interest (excluding the Margin and the Mandatory Cost)
payable for the relevant Interest Period on the Loan.

 

C                                            is the
percentage (if any) of Eligible Liabilities which the Lender is required from
time to time to maintain as interest bearing Special Deposits with the Bank of
England.

 

D                                            is the
percentage rate per annum payable by the Bank of England to the Lender on
interest bearing Special Deposits.

 

E                                             is the
rate of charge payable by the Lender to the Financial Services Authority
pursuant to the Fees Rules (calculated for this purpose by the Lender as
being 

 

38

 

the average of the
Fee Tariffs applicable to the Lender) and expressed in pounds per £1,000,000 of
the Tariff Base of the Lender.

 

5.                                For the
purposes of this Schedule:

 

(a)                                     “Eligible Liabilities” and “Special Deposits” have the meanings given
to them from time to time under or pursuant to the Bank of England Act 1998 or
(as may be appropriate) by the Bank of England;

 

(b)                                     “Fees Rules” means the rules on
periodic fees contained in the FSA Supervision Manual or such other law or
regulation as may be in force from time to time in respect of the payment
of fees for the acceptance of deposits;

 

(c)                                      “Fee Tariffs” means the fee tariffs
specified in the Fees Rules under the activity group A.1 Deposit acceptors
(ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but
taking into account any applicable discount rate); and

 

(d)                                     “Tariff Base” has the meaning given to it
in, and will be calculated in accordance with, the Fees Rules.

 

6.                                In
application of the above formulae, A, B, C and D will be included in the
formulae as percentages (i.e. 5 per cent. will be included in the formula as 5
and not as 0.05). A negative result obtained by subtracting D from B shall be
taken as zero. The resulting figures shall be rounded to four decimal places.

 

7.                                The Lender
shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates the Lender.

 

8.                                Any
determination by the Lender pursuant to this Schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to
the Lender shall, in the absence of manifest error, be conclusive and binding
on all Parties.

 

9.                                The Lender
may from time to time, after consultation with the Borrower determine and
notify to all Parties any amendments which are required to be made to this Schedule in
order to comply with any change in law, regulation or any requirements from
time to time imposed by the Bank of England, the Financial Services Authority
or the European Central Bank (or, in any case, any other authority which
replaces all or any of its functions) and any such determination shall, in the
absence of manifest error, be conclusive and binding on all Parties.

 

39

 

SCHEDULE 4

TIMETABLES

 

	
   

  	
   

  	
  Loans in 

  dollars

  	
   

  	
  Loans in 

  domestic sterling

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request) or a
  Selection Notice (Clause 9.1 (Selection of
  Interest Periods))

  	
   

  	
  U-3

  

  9.30am

  	
   

  	
  U-1

  

  9.30am

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender determines the Base Currency equivalent (for commitment
  utilization purposes) where an amount of a Loan in the Optional Currency has
  been requested i.e. on delivery of a Utilisation request)

  	
   

  	
  —

  	
   

  	
  U-1

  

  9.30am

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender determines amount of the Loan in Optional Currency converted
  into from the Base Currency (i.e. on delivery of a Utilisation request)

  	
   

  	
  —

  	
   

  	
  U-1

  

  9.30am

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR is fixed

  	
   

  	
  Quotation Day as of 11:00 a.m.
  London time

  	
   

  	
  Quotation Day as of 11:00 a.m.

  

 

“U” = date of
utilisation

 

“U - X” = X Business
Days prior to date of utilisation

 

40

 

SIGNATURES

 

THE BORROWER

 

GOOD ‘N’ NATURAL LIMITED

 

	
  By:

  	
  /s/ Barry Vickers

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Barry Vickers

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Samuel Ryder House

  	
   

  
	
   

  	
  Townsend Drive

  	
   

  
	
   

  	
  Attleborough Fields

  	
   

  
	
   

  	
  Nuneaton

  	
   

  
	
   

  	
  Warwickshire

  	
   

  
	
   

  	
  CV11 6XW

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  02476-320034

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mr. R. Craddock

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE
  LENDER

  
	
   

  
	
  JPMORGAN
  CHASE BANK, N.A., LONDON BRANCH

  
	
   

  
	
  By:

  	
  /s/ Alastair Stevenson

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Alastair Stevenson

  
	
   

  	
   

  
	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
  Address:

  	
  125 London Wall

  
	
   

  	
  London EC2Y 5AJ

  
	
   

  	
   

  
	
  Fax:

  	
  +44 20 7777 4781

  
	
   

  	
   

  
	
  Attention:

  	
  Alastair Stevenson

  
						

 

41

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