Document:

Exhibit 4.2

 

EXECUTION VERSION

 

DATED 2 april 2015

 

(1) UAG UK HOLDINGS LIMITED

(as Parent)

 

(2) SYTNER GROUP LIMITED

(as Company and Original Borrower)

 

(3) THE COMPANIES LISTED IN PART 1 OF SCHEDULE 1 OF THIS AGREEMENT

(as Original Guarantors)

 

(4) THE ROYAL BANK OF SCOTLAND PLC AND BMW FINANCIAL SERVICES (GB) LIMITED

(as Mandated Lead Arranger)

 

(5) THE FINANCIAL INSTITUTIONS LISTED IN PART 2 AND PART 3 OF SCHEDULE 1 OF THIS AGREEMENT

(as Original Lenders)

 

(6) THE ROYAL BANK OF SCOTLAND PLC

(as Agent)

 

(7) THE ROYAL BANK OF SCOTLAND PLC

(as Security Agent)

 

 

£150,000,000 REVOLVING FACILITY AGREEMENT

AS AMENDED AND RESTATED ON 19 DECEMBER 2014 AND

2 APRIL 2015

 

 

 

 

CONTENTS

 

	
Clause
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
DEFINITIONS AND INTERPRETATION
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2
    	
THE FACILITY
    	
 
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
3
    	
PURPOSE
    	
 
    	
48
    
	
 
    	
 
    	
 
    	
 
    
	
4
    	
CONDITIONS OF UTILISATION
    	
 
    	
48
    
	
 
    	
 
    	
 
    	
 
    
	
5
    	
UTILISATION - LOANS
    	
 
    	
49
    
	
 
    	
 
    	
 
    	
 
    
	
6
    	
ANCILLARY FACILITIES
    	
 
    	
50
    
	
 
    	
 
    	
 
    	
 
    
	
7
    	
REPAYMENT
    	
 
    	
56
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
ILLEGALITY, VOLUNTARY PREPAYMENT AND CANCELLATION
    	
 
    	
57
    
	
 
    	
 
    	
 
    	
 
    
	
9
    	
MANDATORY PREPAYMENT
    	
 
    	
58
    
	
 
    	
 
    	
 
    	
 
    
	
10
    	
RESTRICTIONS
    	
 
    	
59
    
	
 
    	
 
    	
 
    	
 
    
	
11
    	
INTEREST
    	
 
    	
61
    
	
 
    	
 
    	
 
    	
 
    
	
12
    	
INTEREST PERIODS
    	
 
    	
62
    
	
 
    	
 
    	
 
    	
 
    
	
13
    	
CHANGES TO THE CALCULATION OF INTEREST
    	
 
    	
62
    
	
 
    	
 
    	
 
    	
 
    
	
14
    	
FEES
    	
 
    	
64
    
	
 
    	
 
    	
 
    	
 
    
	
15
    	
TAX GROSS UP AND INDEMNITIES
    	
 
    	
65
    
	
 
    	
 
    	
 
    	
 
    
	
16
    	
INCREASED COSTS
    	
 
    	
74
    
	
 
    	
 
    	
 
    	
 
    
	
17
    	
OTHER INDEMNITIES
    	
 
    	
76
    
	
 
    	
 
    	
 
    	
 
    
	
18
    	
MITIGATION BY THE LENDERS
    	
 
    	
78
    
	
 
    	
 
    	
 
    	
 
    
	
19
    	
COSTS AND EXPENSES
    	
 
    	
79
    
	
 
    	
 
    	
 
    	
 
    
	
20
    	
GUARANTEE AND INDEMNITY
    	
 
    	
81
    
	
 
    	
 
    	
 
    	
 
    
	
21
    	
REPRESENTATIONS
    	
 
    	
85
    
	
 
    	
 
    	
 
    	
 
    
	
22
    	
INFORMATION UNDERTAKINGS
    	
 
    	
92
    
	
 
    	
 
    	
 
    	
 
    
	
23
    	
FINANCIAL COVENANTS
    	
 
    	
98
    
	
 
    	
 
    	
 
    	
 
    
	
24
    	
GENERAL UNDERTAKINGS
    	
 
    	
102
    
	
 
    	
 
    	
 
    	
 
    
	
25
    	
EVENTS OF DEFAULT
    	
 
    	
112
    
	
 
    	
 
    	
 
    	
 
    
	
26
    	
CHANGES TO THE LENDERS
    	
 
    	
118
    
	
 
    	
 
    	
 
    	
 
    
	
27
    	
RESTRICTION ON DEBT PURCHASE TRANSACTIONS
    	
 
    	
123
    
	
 
    	
 
    	
 
    	
 
    
	
28
    	
CHANGES TO THE OBLIGORS
    	
 
    	
124
    

 

 

	
29
    	
ROLE OF THE AGENT, THE ARRANGER AND OTHERS
    	
 
    	
128
    
	
 
    	
 
    	
 
    	
 
    
	
30
    	
CONDUCT OF BUSINESS BY THE FINANCE PARTIES
    	
 
    	
138
    
	
 
    	
 
    	
 
    	
 
    
	
31
    	
SHARING AMONG THE FINANCE PARTIES
    	
 
    	
139
    
	
 
    	
 
    	
 
    	
 
    
	
32
    	
PAYMENT MECHANICS
    	
 
    	
141
    
	
 
    	
 
    	
 
    	
 
    
	
33
    	
SET-OFF
    	
 
    	
145
    
	
 
    	
 
    	
 
    	
 
    
	
34
    	
NOTICES
    	
 
    	
145
    
	
 
    	
 
    	
 
    	
 
    
	
35
    	
CALCULATIONS AND CERTIFICATES
    	
 
    	
148
    
	
 
    	
 
    	
 
    	
 
    
	
36
    	
PARTIAL INVALIDITY
    	
 
    	
149
    
	
 
    	
 
    	
 
    	
 
    
	
37
    	
REMEDIES AND WAIVERS
    	
 
    	
149
    
	
 
    	
 
    	
 
    	
 
    
	
38
    	
AMENDMENTS AND WAIVERS
    	
 
    	
149
    
	
 
    	
 
    	
 
    	
 
    
	
39
    	
CONFIDENTIALITY
    	
 
    	
153
    
	
 
    	
 
    	
 
    	
 
    
	
40
    	
COUNTERPARTS
    	
 
    	
157
    
	
 
    	
 
    	
 
    	
 
    
	
41
    	
GOVERNING LAW
    	
 
    	
158
    
	
 
    	
 
    	
 
    	
 
    
	
42
    	
ENFORCEMENT
    	
 
    	
158
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 1 - THE   ORIGINAL PARTIES
    	
 
    	
158
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 1 - THE ORIGINAL OBLIGORS
    	
 
    	
159
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 2 - THE ORIGINAL LENDERS - OTHER THAN UK   NON-BANK LENDERS
    	
 
    	
160
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 3 - THE ORIGINAL LENDERS - UK NON-BANK   LENDERS
    	
 
    	
161
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 2 -   CONDITIONS PRECEDENT
    	
 
    	
162
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 1 - CONDITIONS   PRECEDENT TO SIGNING OF THE AGREEMENT
    	
 
    	
163
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 2 - CONDITIONS PRECEDENT REQUIRED TO BE   DELIVERED BY AN ADDITIONAL OBLIGOR
    	
 
    	
165
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 3 —   UTILISATION REQUEST
    	
 
    	
167
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 4 -   FORM OF TRANSFER CERTIFICATE
    	
 
    	
169
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 5 -   FORM OF ASSIGNMENT AGREEMENT
    	
 
    	
171
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 6 -   FORM OF ACCESSION DEED
    	
 
    	
175
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 7 -   FORM OF RESIGNATION LETTER
    	
 
    	
178
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 8 -   FORM OF COMPLIANCE CERTIFICATE
    	
 
    	
179
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 9 -   TIMETABLE
    	
 
    	
182
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 10 - AGREED   SECURITY PRINCIPLES
    	
 
    	
183
    
						

 

 

	
SCHEDULE 11 -   FORM OF INCREASE CONFIRMATION
    	
 
    	
184
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 12 - FORMS   OF NOTIFIABLE DEBT PURCHASE TRANSACTION NOTICE
    	
 
    	
188
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 1 - FORM OF NOTICE ON ENTERING INTO   NOTIFIABLE DEBT PURCHASE TRANSACTION
    	
 
    	
188
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 2 - FORM OF NOTICE ON TERMINATION OF   NOTIFIABLE DEBT PURCHASE TRANSACTION/NOTIFIABLE DEBT PURCHASE TRANSACTION   CEASING TO BE WITH SPONSOR AFFILIATE
    	
 
    	
188
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 13 -   FRANCHISES
    	
 
    	
190
    
	
 
    	
 
    	
 
    	
 
    
	
Schedule 14- EXISTING   SECURITY DOCUMENTS
    	
 
    	
192
    
					

 

 

THIS AGREEMENT is made on 16 December 2011 as amended and restated on 19 December 2014 and 2 April 2015

 

BETWEEN:-

 

(1)                                UAG UK HOLDINGS LIMITED (the “Parent”);

 

(2)                                SYTNER GROUP LIMITED (the “Company”);

 

(3)                                 THE SUBSIDIARIES of the Company listed in Part 1 of Schedule 4 (The Original Parties) as original guarantors (together with the Parent and the Company, the “Original Guarantors”);

 

(4)                                 THE ROYAL BANK OF SCOTLAND PLC AND BMW FINANCIAL SERVICES (GB) LIMITED as mandated lead arrangers (whether acting individually or together) (the “Arranger”);

 

(5)                                 THE FINANCIAL INSTITUTIONS listed in Part 2 and Part 3 of Schedule 4 (The Original Parties) as lenders (the “Original Lenders”);

 

(6)                                 THE ROYAL BANK OF SCOTLAND PLC as agent of the other Finance Parties (the “Agent”); and

 

(7)                                THE ROYAL BANK OF SCOTLAND PLC as security trustee for the Secured Parties (the “Security Agent”).

 

IT IS AGREED as follows:-

 

SECTION 1

 

INTERPRETATION

 

10.                                        DEFINITIONS AND INTERPRETATION

 

10.1                                 Definitions

 

In this Agreement:-

 

	
“2012 Amendment Deed” 
    	
 
    	
means the amendment deed dated 10 January 2012 amending this Agreement

 
    
	
 
    	
 
    	
 
    
	
“Acceptable Bank”
    	
 
    	
means:-

 

(a)                                          a bank or financial institution which has a rating for its long-term   unsecured and non credit-enhanced debt obligations of A or higher by Standard &   Poor’s Rating Services or Fitch Ratings Ltd or A2 or higher by Moody’s   Investors Service Limited or a comparable rating from an internationally   recognised credit rating agency or

 

(b)                                          The Royal Bank of Scotland plc and National Westminster Bank Plc   provided that they have a rating for their long term unsecured and non credit   enhanced debt obligations of A- or higher by Standard & Poor’s   Rating Services or Fitch Ratings Ltd or A3 or higher by Moody’s Investors   Service Limited or a comparable rating from an internationally recognised   credit rating agency or
    

 

1

 

	
 
    	
 
    	
(c)                                  any other bank or financial institution approved by the Agent
    
	
 
    	
 
    	
 
    
	
“Accession Deed”
    	
 
    	
means a document substantially in the form set out in Schedule 9   (Form of Accession Deed)
    
	
 
    	
 
    	
 
    
	
“Accounting Principles”
    	
 
    	
means generally accepted accounting principles in the United Kingdom,   including IFRS
    
	
 
    	
 
    	
 
    
	
“Accounting Reference Date”
    	
 
    	
means 31 December
    
	
 
    	
 
    	
 
    
	
“Additional Borrower”
    	
 
    	
means a company which becomes an Additional Borrower in accordance   with Clause 37 (Changes to the   Obligors)
    
	
 
    	
 
    	
 
    
	
“Additional Guarantor”
    	
 
    	
means a company which becomes an Additional Guarantor in accordance   with Clause 37 (Changes to the   Obligors)
    
	
 
    	
 
    	
 
    
	
“Additional Obligor”
    	
 
    	
means an Additional Borrower or an Additional Guarantor
    
	
 
    	
 
    	
 
    
	
“Affiliate”
    	
 
    	
means, in relation to any person, a Subsidiary of that person or a   Holding Company of that person or any other Subsidiary of that Holding   Company. Notwithstanding the foregoing, in relation to The Royal Bank of   Scotland plc, the term “Affiliate” shall not include (i) the UK   government or any member or instrumentality thereof, including Her Majesty’s   Treasury and UK Financial Investments Limited (or any directors, officers,   employees or entities thereof) or (ii) any persons or entities   controlled by or under common control with the UK government or any member or   instrumentality thereof (including Her Majesty’s Treasury and UK Financial   Investments Limited) and which are not part of The Royal Bank of Scotland   Group plc and its subsidiaries or subsidiary undertakings
    
	
 
    	
 
    	
 
    
	
“Agreed Security Principles”
    	
 
    	
means the principles set out in Schedule 13 (Agreed Security Principles)
    
	
 
    	
 
    	
 
    
	
“Ancillary Commencement Date”
    	
 
    	
means, in relation to an Ancillary Facility, the date on which that   Ancillary Facility is first made available, which date shall be a Business   Day within the Availability Period for the Facility
    
	
 
    	
 
    	
 
    
	
“Ancillary Commitment”
    	
 
    	
means, in relation to an Ancillary Lender and an Ancillary Facility,   the maximum amount which that Ancillary Lender has agreed (whether or not   subject to satisfaction of conditions precedent) to make available from time   to time under an Ancillary Facility and which has been authorised as such   under Clause 15 (Ancillary Facilities),   to the extent that amount is not cancelled or reduced under this Agreement or   the Ancillary Documents relating to that Ancillary Facility
    
	
 
    	
 
    	
 
    
	
“Ancillary Document”
    	
 
    	
means each document relating to or evidencing the terms of an   Ancillary Facility
    
	
 
    	
 
    	
 
    
	
“Ancillary Facility”
    	
 
    	
means any ancillary facility made available by an Ancillary Lender in   accordance with Clause 15 (Ancillary   Facilities)
    
	
 
    	
 
    	
 
    
	
“Ancillary Lender”
    	
 
    	
means each Lender (or Affiliate of a Lender) which makes available an   Ancillary Facility in accordance with Clause 15
    

 

2

 

	
 
    	
 
    	
(Ancillary Facilities)
    
	
 
    	
 
    	
 
    
	
“Ancillary Outstandings”
    	
 
    	
means, at any time, in relation to an Ancillary Lender and an   Ancillary Facility then in force the aggregate of the following amounts   outstanding under that Ancillary Facility:-

 

(a)                                          the principal amount under each overdraft facility and on-demand short   term loan facility (net of any Available Credit Balance)

 

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

 

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

 

in each case as determined by such Ancillary Lender, acting reasonably   in accordance with its normal banking practice and in accordance with the   relevant Ancillary Document
    
	
 
    	
 
    	
 
    
	
“Assignment Agreement”
    	
 
    	
means an agreement substantially in the form set out in Schedule 8   (Form of Assignment Agreement)   or any other form agreed between the relevant assignor and assignee 
    
	
 
    	
 
    	
 
    
	
“Audit Laws”
    	
 
    	
means the EU Regulation (537/2014) on specific requirements regarding   statutory audit of public-interest entities and repealing Commission Decision   2005/909/EC and the EU Directive (2014/56/EU) amending Directive 2006/43/EC   on statutory audits of annual accounts and consolidated accounts and any law   or regulation which implements that EU Directive (2014/56/EU)
    
	
 
    	
 
    	
 
    
	
“Authorisation”
    	
 
    	
means an authorisation, consent, approval, resolution, licence,   exemption, filing, notarisation or registration
    
	
 
    	
 
    	
 
    
	
“Availability Period”
    	
 
    	
means from and including the date of this Agreement to and including   the date falling one week prior to the Termination Date
    
	
 
    	
 
    	
 
    
	
“Available Commitment”
    	
 
    	
means, in relation to the Facility, a Lender’s Commitment minus   (subject as set out below):-

 

(a)                                          the amount of its participation in any outstanding Utilisations and   the amount of the aggregate of its (and its Affiliate’s) Ancillary   Commitments and

 

(b)                                          in relation to any proposed Utilisation, the amount of its   participation in any other Utilisations that are due to be made under the   Facility on or before the proposed Utilisation Date and the amount of its   (and its Affiliate’s) Ancillary Commitment in relation to any new Ancillary   Facility that is due to be made available on or before the proposed   Utilisation Date

 

For the purposes of calculating that Lender’s Available Commitment in   relation to any proposed Utilisation the following amounts shall not be   deducted from that Lender’s 
    

 

3

 

	
 
    	
 
    	
Commitment:-

 

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

 

(ii)                                          that Lender’s (and its Affiliate’s) Ancillary Commitments to the   extent that they are due to be reduced or cancelled on or before the proposed   Utilisation Date
    
	
 
    	
 
    	
 
    
	
“Available Credit Balance”
    	
 
    	
means, in relation to an Ancillary Facility, credit balances on any   account of any Borrower of that Ancillary Facility with the Ancillary Lender   making available that Ancillary Facility to the extent that those credit   balances are freely available to be set off by that Ancillary Lender against   liabilities owed to it by that Borrower under that Ancillary Facility
    
	
 
    	
 
    	
 
    
	
“Available Facility”
    	
 
    	
means the aggregate for the time being of each Lender’s Available   Commitment 
    
	
 
    	
 
    	
 
    
	
“Base Reference Bank Rate”
    	
 
    	
means the arithmetic mean of the rates (rounded upwards to four   decimal places) as supplied to the Agent at its request by the Base Reference   Banks in relation to LIBOR

 

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

 

(b)                                        if different, as   the rate (if any and applied to the relevant Base Reference Bank and the   relevant currency and period) which contributors to the applicable Screen   Rate are asked to submit to the relevant administrator
    
	
 
    	
 
    	
 
    
	
“Base Reference Banks”
    	
 
    	
means the principal London offices of two or more banks or financial   institutions as may be appointed by the Agent in consultation with the   Company, save that no Lender shall be appointed as a Base Reference Bank without   its prior written consent 
    
	
 
    	
 
    	
 
    
	
“Bilateral Overdraft Lender”
    	
 
    	
means The Royal Bank of Scotland plc as agent for National Westminster   Bank Plc in its capacity as lender under the NatWest Overdraft Letter
    
	
 
    	
 
    	
 
    
	
“Borrower”
    	
 
    	
means the Company or an Additional Borrower unless it has ceased to be   a Borrower in accordance with Clause 37 (Changes to the Obligors) and, in respect of an Ancillary   Facility only, any Affiliate of a Borrower that becomes a borrower of that   Ancillary Facility with the approval of the relevant Lender pursuant to   Clause 15.9 (Affiliates of Borrowers)
    
	
 
    	
 
    	
 
    
	
“Borrowings”
    	
 
    	
has the meaning given to that term in Clause 32.1 (Financial
    

 

4

 

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

 

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

 

exceeds:-

 

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

 

(a)                                          in relation to the period beginning on 1 January 2011 and ending   on 31 December 2011, the budget delivered by the Company to the Lenders   prior to the date of this Agreement and

 

(b)                                          in relation to any other period, any budget delivered by the Company   to the Agent in respect of that period pursuant to Clause 31.4 (Budget)
    
	
 
    	
 
    	
 
    
	
“Business Day”
    	
 
    	
means a day (other than a Saturday or Sunday) on which banks are open   for general business in London 
    
	
 
    	
 
    	
 
    
	
“Capital Expenditure”
    	
 
    	
has the meaning given to that term in Clause 32.1 (Financial definitions)
    
	
 
    	
 
    	
 
    
	
“Cash”
    	
 
    	
means, at any time, cash denominated in Sterling in hand or at bank   and (in the latter case) credited to an account in the name of an Obligor   with an Acceptable Bank and to which an Obligor is alone (or together with   other Obligors) beneficially entitled and for so long as:-

 

(a)                                          that cash is repayable within 30 days after the relevant date of   calculation

 

(b)                                          repayment of that cash is not contingent on the prior discharge of any   other indebtedness of any member of the Group or of any other person   whatsoever or on the satisfaction of any other condition

 

(c)                                           there is no Security over that cash except for Transaction Security or   any Permitted Security constituted by a netting or set-off arrangement   entered into by members of the Group in the ordinary course of their banking   arrangements and
    

 

5

 

	
 
    	
 
    	
(d)                                          the cash is freely and immediately available to be applied in   repayment or prepayment of the Facility
    
	
 
    	
 
    	
 
    
	
“Cash Equivalent Investments”
    	
 
    	
means at any time:-

 

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

 

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

 

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

 

(i)                                             for which a recognised trading market exists

 

(ii)                                          issued by an issuer incorporated in the United States of America, the   United Kingdom, any member state of the European Economic Area or any   Participating Member State

 

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

 

(iv)                                      which has a credit   rating of either A-1 or higher by Standard & Poor’s Rating Services   or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investors   Service Limited, or, if no rating is available in respect of the commercial   paper, the issuer of which has, in respect of its long-term unsecured and   non-credit enhanced debt obligations, an equivalent rating

 

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

 

(e)                                           any investment in money market funds which (i) have a credit   rating of either A-1 or higher by Standard & Poor’s Rating Services   or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investors   Service Limited, (ii) which invest substantially all their assets in   securities of the types described in sub-clauses (a) to (d) above   and (iii) can be turned into cash on not more than 30 days’ notice   or
    

 

6

 

	
 
    	
 
    	
(f)                                   any other debt security approved by the Majority Lenders,

 

in each case, denominated in Sterling and to which any Obligor is   alone (or together with other Obligors beneficially entitled at that time and   which is not issued or guaranteed by any member of the Group or subject to   any Security (other than Security arising under the Transaction Security   Documents)
    
	
 
    	
 
    	
 
    
	
“Cashflow”
    	
 
    	
has the meaning given to that term in Clause 32.1 (Financial definitions)
    

 

7

 

	
“Change of Control”
    	
 
    	
means PAG ceases to control directly or indirectly the Company and/or   any person or group of persons acting in concert gains direct or indirect   control of the Company. For the purposes of this definition:-

 

(a)                                 “control” of the Company   means:-

 

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

 

(A)                               cast, or control the casting of, 51% or more of the maximum number of   votes that might be cast at a general meeting of the Company or

 

(B)                               appoint or remove all, or the majority, of the directors or other   equivalent officers of the Company or

 

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

 

(ii)                                  the holding beneficially of 51% of the issued share capital of the   Company (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)

 

(b)                                 “acting in concert”   means, a group of persons who, pursuant to an agreement or understanding   (whether formal or informal), actively co-operate, through the acquisition   directly or indirectly of shares in the Company by any of them, either   directly or indirectly, to obtain or consolidate control of the Company
    
	
 
    	
 
    	
 
    
	
“Charged Property”
    	
 
    	
means all of the assets of the Obligors which from time to time are,   or are expressed to be, the subject of the Transaction Security
    
	
 
    	
 
    	
 
    
	
“Closing Date”
    	
 
    	
means the date on which the Agent confirms to the Company in writing   that all of the conditions precedent in Part 1 of Schedule 5 have   been satisfied or waived
    
	
 
    	
 
    	
 
    
	
“Code”
    	
 
    	
means the US Internal Revenue Code of 1986
    
	
 
    	
 
    	
 
    
	
“Commitment”
    	
 
    	
means:-

 

(a)                                 in relation to an Original Lender, the amount set 
    

 

8

 

	
 
    	
 
    	
opposite its name under the heading “Commitment” in Part 2 or   Part 3 of Schedule 4 (The   Original Parties) and the amount of any other Commitment   transferred to it under this Agreement or assumed by it in accordance with   Clause 11.2 (Increase) and

 

(b)                                 in relation to any other Lender, the amount of any Commitment   transferred to it under this Agreement or assumed by it in accordance with   Clause 11.2 (Increase)

 

to the extent:-

 

(i)                                     not cancelled, reduced or transferred by it under this Agreement and

 

(ii)                                  not deemed to be zero pursuant to Clause 36.2 (Disenfranchisement   on Debt Purchase Transactions entered into by Sponsor Affiliates)
    
	
 
    	
 
    	
 
    
	
“Company’s Auditors”
    	
 
    	
means KPMG LLP or any other firm appointed by the Company to act as   its statutory auditors
    
	
 
    	
 
    	
 
    
	
“Compliance Certificate”
    	
 
    	
means a certificate substantially in the form set out in   Schedule 11 (Form of Compliance   Certificate)
    
	
 
    	
 
    	
 
    
	
“Confidential Information”
    	
 
    	
means all information relating to the Parent, the Company, any   Obligor, the Group, the Finance Documents or the Facility of which a Finance   Party becomes aware in its capacity as, or for the purpose of becoming, a   Finance Party or which is received by a Finance Party in relation to, or for   the purpose of becoming a Finance Party under, the Finance Documents or the   Facility from either:-

 

(a)                                 the Parent or any member of the Group or any of its advisers or

 

(b)                                 another Finance Party, if the information was obtained by that Finance   Party directly or indirectly from the Parent or any member of the Group or   any of its advisers

 

in whatever form, and includes information given orally and any   document, electronic file or any other way of representing or recording information   which contains or is derived or copied from such information but excludes   information that:-

 

(i)                                     is or becomes public information other than as a direct or indirect   result of any breach by that Finance Party of Clause 48 (Confidentiality) or

 

(ii)                                  is identified in writing at the time of delivery as non-confidential   by the Parent or any member of the Group or any of its advisers 
    

 

9

 

	
 
    	
 
    	
or

 

(iii)                               is known by that Finance Party before the date the information is   disclosed to it in accordance with   sub-clauses (a) or (b) above or is lawfully obtained by   that Finance Party after that date, from a source which is, as far as that   Finance Party is aware, unconnected with the Parent or the Group and which, in   either case, as far as that Finance Party is aware, has not been obtained in   breach of, and is not otherwise subject to, any obligation of confidentiality
    
	
 
    	
 
    	
 
    
	
“Confidentiality Undertaking”
    	
 
    	
means a confidentiality undertaking substantially in a recommended   form of the LMA or in any other form agreed between the Company and the Agent
    
	
 
    	
 
    	
 
    
	
“Contribution Notice”
    	
 
    	
means a contribution notice issued by the Pensions Regulator under   section 38 or section 47 of the Pensions Act 2004
    
	
 
    	
 
    	
 
    
	
“CTA”
    	
 
    	
means the Corporation Tax Act 2009
    
	
 
    	
 
    	
 
    
	
“DB Schemes”
    	
 
    	
means:-

 

(a)                                 the Ryland Group Pension Scheme established by an interim deed dated   29 January 1974

 

(b)                                 the William Jacks PLC Retirement Benefits Scheme established by   interim trust deed dated 1 November 1953

 

(c)                                  the industry-wide MIP Plan and

 

(d)                                 the Isaac Agnew (Holdings) Limited Management Pension Plan established   by trust deed dated 25 March 1984
    
	
 
    	
 
    	
 
    
	
“Debt Purchase Transaction”
    	
 
    	
means, in relation to a person, a transaction where such person:-

 

(a)                                 purchases by way of assignment or transfer

 

(b)                                 enters into any sub-participation in respect of or

 

(c)                                  enters into any other agreement or arrangement having an economic   effect substantially similar to a sub-participation in respect of

 

the Commitment or amount outstanding under this Agreement
    
	
 
    	
 
    	
 
    
	
“Default”
    	
 
    	
means an Event of Default or any event or circumstance specified in   Clause 34 (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 
    

 

10

 

	
 
    	
 
    	
combination of any of the foregoing) be an   Event of Default
    
	
 
    	
 
    	
 
    
	
“Defaulting Lender”
    	
 
    	
means any Lender (other than a Lender which is a Sponsor Affiliate):-

 

(a)                                 which has failed to make its participation in a Loan available (or has   notified the Agent or the Parent (which has notified the Agent) that it will   not make its participation in a Loan available) by the Utilisation Date of   that Loan in accordance with Clause 14.4 (Lenders’ participation)

 

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

 

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

 

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

 

(i)                                     its failure to pay is caused by:-

 

(A)                               administrative or technical error or

 

(B)                               a Disruption Event and

 

payment is made within 3 Business Days of its due date or

 

(ii)                                  the Lender is disputing in good faith whether it is contractually   obliged to make the payment in question
    
	
 
    	
 
    	
 
    
	
“Delegate”
    	
 
    	
means any delegate, agent, attorney or co-trustee appointed by the   Security Agent
    
	
 
    	
 
    	
 
    
	
“Designated Gross Amount”
    	
 
    	
means the amount notified by the Parent to the Agent upon the   establishment of a Multi-account Overdraft as being the maximum amount of   Gross Outstandings that will, at any time, be outstanding under that   Multi-account Overdraft
    
	
 
    	
 
    	
 
    
	
“Designated Net Amount”
    	
 
    	
means the amount notified by the Parent to the Agent upon the   establishment of a Multi-account Overdraft as being the maximum amount of Net   Outstandings that will, at any time, be outstanding under that Multi-account   Overdraft
    

 

11

 

	
“Disruption Event”
    	
 
    	
means either or both of:-

 

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

 

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

 

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

 

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

 

and which (in either such case) is not caused by, and is beyond the control   of, the Party whose operations are disrupted
    
	
 
    	
 
    	
 
    
	
“Dormant Subsidiary”
    	
 
    	
means a member of the Group which does not trade (for itself or as   agent for any person) and does not own, legally or beneficially, assets   (including, without limitation, indebtedness owed to it) which in aggregate   have a value of £5,000 or more or its equivalent in other currencies
    
	
 
    	
 
    	
 
    
	
“Environment”
    	
 
    	
means humans, animals, plants and all other living organisms including   the ecological systems of which they form part and the following media:-

 

(a)                                 air (including, without limitation, air within natural or man-made   structures, whether above or below ground)

 

(b)                                 water (including, without limitation, territorial, coastal and inland   waters, water under or within land and water in drains and sewers) and

 

(c)                                  land (including, without limitation, land under water)
    
	
 
    	
 
    	
 
    
	
“Environmental Claim”
    	
 
    	
means any claim, proceeding, formal notice or investigation by any   person in respect of any Environmental Law
    
	
 
    	
 
    	
 
    
	
“Environmental Law”
    	
 
    	
means any applicable law or regulation which relates to:-

 

(a)                                 the pollution or protection of the Environment
    

 

12

 

	
 
    	
 
    	
(b)                                 the conditions of the workplace or

 

(c)                                  the generation, handling, storage, use, release or spillage of any   substance which, alone or in combination with any other, is capable of   causing harm to the Environment, including, without limitation, any waste
    
	
 
    	
 
    	
 
    
	
“Environmental Permits”
    	
 
    	
means any permit and other Authorisation and the filing of any   notification, report or assessment required under any Environmental Law for   the operation of the business of any member of the Group conducted on or from   the properties owned or used by any member of the Group
    
	
 
    	
 
    	
 
    
	
“Event of Default”
    	
 
    	
means any event or circumstance specified as such in Clause 34 (Events of Default)
    
	
 
    	
 
    	
 
    
	
“Existing Security Documents”
    	
 
    	
means those security documents granted before the Second Amendment and   Restatement Date listed in Schedule 17 (Existing   Security Documents)
    
	
 
    	
 
    	
 
    
	
“Facility”
    	
 
    	
means the revolving credit facility made available under this   Agreement as described in Clause 11.1.1
    
	
 
    	
 
    	
 
    
	
“Facility Office”
    	
 
    	
means:-

 

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

 

(b)                                 in respect of any other Finance Party, the office in the jurisdiction   in which it is resident for tax purposes
    
	
 
    	
 
    	
 
    
	
“FATCA”

 

 
    	
 
    	
means:

 

(a)                                 sections 1471 to 1474 of the Code or any associated regulations

 

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

 

(c)                                  any agreement pursuant to the implementation of any treaty, law or   regulation referred to in paragraphs (a) or (b) above with the US   Internal Revenue Service, the US government or any governmental or taxation   authority in any other jurisdiction
    
	
 
    	
 
    	
 
    
	
“FATCA Application 
    	
 
    	
means:
    

 

13

 

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

 

(b)                                 in relation to a “withholdable payment” described in section   1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the   disposition of property of a type that can produce interest from sources   within the US), 1 January 2017 or

 

(c)                                  in relation to a “passthru payment” described in section   1471(d)(7) of the Code not falling within paragraphs (a) or   (b) above, 1 January 2017,

 

or, in each case, such other date from which such payment may become   subject to a deduction or withholding required by FATCA as a result of any   change in FATCA after the First Amendment and Restatement Date.
    
	
 
    	
 
    	
 
    
	
“FATCA Deduction”
    	
 
    	
means a deduction or withholding from a payment under a Finance   Document required by FATCA
    
	
 
    	
 
    	
 
    
	
“FATCA Exempt Party”
    	
 
    	
means a Party that is entitled to receive payments free from any FATCA   Deduction
    
	
 
    	
 
    	
 
    
	
“Fee Letter”
    	
 
    	
means:-

 

(a)                                 any letter or letters dated on or about the date of this Agreement   between the Agent and the Company or the Security Agent and the Company   setting out any of the fees referred to in Clause 23 (Fees) and

 

(b)                                 any agreement setting out fees payable to a Finance Party referred to   in Clause 11.2.5, Clause 23.5 (Interest,   commission and fees on Ancillary Facilities) of this Agreement or   under any other Finance Document
    
	
 
    	
 
    	
 
    
	
“Finance Document”
    	
 
    	
means this Agreement, any Accession Deed, any Ancillary Document, any   Compliance Certificate, any Fee Letter, any Hedging Agreement, the   Intercreditor Agreement, any Resignation Letter, any Transaction Security   Document, any Utilisation Request, the Vehicle Financier Deeds of Priority,   the 2012 Amendment Deed, the First Amendment and Restatement Agreement, the   Second Amendment and Restatement Agreement and any other document designated   as a “Finance Document” by the Agent and the Company provided that where the term “Finance   Document” is used in, and construed for the purposes of, this Agreement or   the Intercreditor Agreement, a Hedging Agreement shall be a Finance Document   only for the purposes of:-

 

(a)                                 the definition of “Material Adverse Effect”

 

(b)                                 sub-clause (a) of the definition of “Permitted
    

 

14

 

	
 
    	
 
    	
Transaction”

 

(c)                                  the definition of “Transaction Security Document”

 

(d)                                 Clause 10.2.1(d)

 

(e)                                  Clause 29 (Guarantee and   Indemnity) and

 

(f)                                   Clause 34 (Events of Default)   (other than Clause 34.13.2 and Clause 34.18 (Acceleration))
    
	
 
    	
 
    	
 
    
	
“Finance Party”
    	
 
    	
means the Agent, the Arranger, the Security Agent, a Lender, a Hedge   Counterparty or any Ancillary Lender provided   that where the term “Finance Party” is used in, and construed for   the purposes of, this Agreement or the Intercreditor Agreement, a Hedge Counterparty   shall be a Finance Party only for the purposes of:-

 

(a)                                 the definition of “Secured Parties”

 

(b)                                 Clause 10.2.1(a)

 

(c)                                  sub-clause (c) of the definition of Material Adverse Effect

 

(d)                                 Clause 29 (Guarantee and Indemnity) and

 

(e)                                  Clause 39 (Conduct of business   by the Finance Parties)
    
	
 
    	
 
    	
 
    
	
“Financial Event of Default”
    	
 
    	
means an Event of Default arising under any of Clauses 34.1 (Non payment), 34.2 (Other obligations)   (to the extent that such Event of Default arises as a breach of   Clause 32 (Financial covenants)   or Clause 31 (Information   Undertakings) (in relation to the delivery of Annual Financial   Statements, Quarterly Financial Statements, Monthly Financial Statements   and/or Compliance Certificates)), 34.5 (Cross-default),   34.6 (Insolvency), 34.7 (Insolvency proceedings) and 34.8 (Creditor’s   process)
    
	
 
    	
 
    	
 
    
	
“Financial Indebtedness”
    	
 
    	
means any indebtedness for or in respect of:-

 

(a)                                 moneys borrowed and debit balances at banks or other financial   institutions

 

(b)                                 any acceptance under any acceptance credit or bill discounting   facility (or dematerialised equivalent)

 

(c)                                  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 Finance Leases

 

(e)                                  receivables sold or discounted (other than any

 
    

 

15

 

	
 
    	
 
    	
 receivables to the extent they   are sold on a non-recourse basis and meet any requirement for de-recognition   under the Accounting Principles)

 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(f)                                   any Treasury Transaction (and, when calculating the value of that   Treasury Transaction, only the marked to market value (or, if any actual   amount is due as a result of the termination or close-out of that Treasury   Transaction, that amount) shall be taken into account)

 

(g)                                  any counter-indemnity obligation in respect of a guarantee, bond,   standby or documentary letter of credit or any other instrument issued by a   bank or financial institution in respect of (i) an underlying liability   of an entity which is not a member of the Group which liability would fall   within one of the other sub-clauses of this definition or (ii) any   liabilities of any member of the Group relating to any post-retirement   benefit scheme

 

(h)                                 any amount raised by the issue of redeemable shares which are   redeemable (other than at the option of the issuer) before the Termination   Date or are otherwise classified as borrowings under the Accounting   Principles)

 

(i)                                     any amount of any liability under an advance or deferred purchase   agreement if (i) one of the primary reasons behind entering into the   agreement is to raise finance or to finance the acquisition or construction   of the asset or service in question or (ii) the agreement is in respect   of the supply of assets or services and payment is due more than 90 days   after the date of supply

 

(j)                                    any amount raised under any other transaction (including any forward   sale or purchase, sale and sale back or sale and leaseback agreement) having   the commercial effect of a borrowing or otherwise classified as borrowings   under the Accounting Principles and

 

(k)                                 the amount of any liability in respect of any guarantee or indemnity   for any of the items referred to in   sub-clauses (a) to (j) above
    
	
 
    	
 
    	
 
    
	
“Financial Quarter”
    	
 
    	
has the meaning given to that term in Clause 32.1 (Financial definitions)
    
	
 
    	
 
    	
 
    
	
“Financial Support Direction”
    	
 
    	
means a financial support direction issued by the Pensions Regulator   under section 43 of the Pensions Act 2004
    
	
 
    	
 
    	
 
    
	
“Financial Year”
    	
 
    	
has the meaning given to that term in Clause 32.1 (Financial definitions)
    
	
 
    	
 
    	
 
    
	
“First Amendment and 
    	
 
    	
means the agreement amending and restating this Agreement 
    

 

16

 

	
Restatement Agreement”
    	
 
    	
entered into between Parties on the First Amendment and Restatement   Date
    
	
 
    	
 
    	
 
    
	
“First Amendment and Restatement Date”
    	
 
    	
means 19 December 2014
    
	
 
    	
 
    	
 
    
	
“Franchises”
    	
 
    	
means the franchises, vehicle distribution agreements and dealerships   listed in Schedule 16 (Franchises)
    
	
 
    	
 
    	
 
    
	
“German Group”
    	
 
    	
means PAE GmbH and each of its Subsidiaries from time to time
    
	
 
    	
 
    	
 
    
	
“Gross Outstandings”
    	
 
    	
means, in relation to a Multi-account Overdraft, the Ancillary   Outstandings of that Multi-account Overdraft but calculated on the basis that   the words “(net of any Available Credit Balance)” in paragraph (a) of   the definition of “Ancillary Outstandings” were deleted
    
	
 
    	
 
    	
 
    
	
“Group”
    	
 
    	
means the Company and each of its Subsidiaries for the time being
    
	
 
    	
 
    	
 
    
	
“Group Structure Chart”
    	
 
    	
means the group structure chart in the agreed form
    
	
 
    	
 
    	
 
    
	
“Guarantor”
    	
 
    	
means an Original Guarantor or an Additional Guarantor, unless it has   ceased to be a Guarantor in accordance with Clause 37 (Changes to the Obligors)
    
	
 
    	
 
    	
 
    
	
“Hedge Counterparty”
    	
 
    	
means any entity which has become a Party as a Hedge Counterparty in   accordance with Clause 35.8 (Accession   of Hedge Counterparties) and which has become a party to the   Intercreditor Agreement as a Hedge Counterparty in accordance with the   provisions of the Intercreditor Agreement
    
	
 
    	
 
    	
 
    
	
“Hedging Agreement”
    	
 
    	
means any master agreement, confirmation, schedule or other agreement   entered into or to be entered into by an Obligor and a Hedge Counterparty for   the purpose of hedging the types of liabilities and/or risks in relation to   the Facility which, at the time that that master agreement, confirmation,   schedule or other agreement (as the case may be) is entered into are   permitted to be entered into pursuant to the terms of this Agreement
    
	
 
    	
 
    	
 
    
	
“Holding Company”
    	
 
    	
means, in relation to a person, any other person in respect of which it   is a Subsidiary
    
	
 
    	
 
    	
 
    
	
“IFRS”
    	
 
    	
means international accounting standards within the meaning of IAS   Regulation 1606/2002 to the extent applicable to the relevant financial   statements
    
	
 
    	
 
    	
 
    
	
“Impaired Agent”
    	
 
    	
means the Agent at any time when:-

 

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

 

17

 

	
 
    	
 
    	
payment

 

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

 

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

 

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

 

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

 

(i)                                     its failure to pay is caused by:-

 

(A)                               administrative or technical error or

 

(B)                               a Disruption Event and

 

payment is made within 3 Business Days of its due date or

 

(ii)                                  the Agent is disputing in good faith whether it is contractually   obliged to make the payment in question
    
	
 
    	
 
    	
 
    
	
“Increase Confirmation”
    	
 
    	
means a confirmation substantially in the form set out in   Schedule 14 (Form of Increase   Confirmation)
    
	
 
    	
 
    	
 
    
	
“Increase Lender”
    	
 
    	
has the meaning given to that term in Clause 11.2 (Increase)
    
	
 
    	
 
    	
 
    
	
“Insolvency Event”
    	
 
    	
in relation to an entity means that the entity:-

 

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

 

(b)                                 becomes insolvent

 

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

 

(d)                                 seeks or becomes subject to the appointment of an administrator,   liquidator, receiver, trustee, custodian or other similar official for it or   for all or substantially all its assets

 

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

 

18

 

	
 
    	
 
    	
each case within 30 days thereafter

 

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

 

(g)                                  takes any action in furtherance of, or indicating its consent to,   approval of, or acquiescence in, any of the foregoing acts
    
	
 
    	
 
    	
 
    
	
“Intellectual Property”
    	
 
    	
means:-

 

(a)                                 any material patents, trade marks, service marks, designs, business   names, copyrights, database rights, design rights, domain names, moral   rights, inventions, confidential information, knowhow and other intellectual   property rights and interests (which may now or in the future subsist),   whether registered or unregistered and

 

(b)                                 the benefit of all applications and rights to use such assets of each   member of the Group (which may now or in the future subsist)
    
	
 
    	
 
    	
 
    
	
“Intercreditor Agreement”
    	
 
    	
means the intercreditor agreement dated the same date as this   Agreement and made between, among others, the Parent, the Company, the other   Obligors, The Royal Bank of Scotland plc as Security Agent, The Royal Bank of   Scotland plc as agent, the Lenders, the Arranger, the Ancillary Lenders, the   Hedge Counterparties and the Bilateral Overdraft Lender
    
	
 
    	
 
    	
 
    
	
“Interest Period”
    	
 
    	
means, in relation to a Loan, each period determined in accordance   with Clause 21 (Interest Periods)   and, in relation to an Unpaid Sum, each period determined in accordance with   Clause 20.3 (Default interest)
    
	
 
    	
 
    	
 
    
	
“Interpolated Screen Rate”
    	
 
    	
means, in relation to LIBOR for any Loan, the rate (rounded to the   same number of decimal places as the two relevant Screen Rates) which results   from interpolating on a linear basis between:

 

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

 

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

 

each as of the Specified Time on the Quotation Day for the currency of   that Loan.
    
	
 
    	
 
    	
 
    
	
“ITA”
    	
 
    	
means the Income Tax Act 2007
    

 

19

 

	
“Joint Venture”
    	
 
    	
means any joint venture entity, whether a company, unincorporated   firm, undertaking, association, joint venture or partnership or any other   entity
    
	
 
    	
 
    	
 
    
	
“Legal Opinion”
    	
 
    	
means any legal opinion delivered to the Agent under Clause 13.1   (Initial conditions precedent)   or Clause 37 (Changes to the Obligors)
    
	
 
    	
 
    	
 
    
	
“Legal Reservations”
    	
 
    	
means:-

 

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

 

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

 

(c)                                  the principle that in certain circumstances Security granted by way of   fixed charge may be characterised as a floating charge or that Security   purported to be constituted by way of an assignment may be recharacterised as   a charge

 

(d)                                 the principle that any additional interest imposed pursuant to any   relevant agreement may be held to be unenforceable on the grounds that it is   a penalty and thus void

 

(e)                                  the principle that an English court or a court of Northern Ireland may   not give effect to an indemnity for legal costs incurred by an unsuccessful   litigant

 

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

 

(g)                                  any other matters which are set out as qualifications or reservations   as to matters of law of general application in the Legal Opinions
    
	
 
    	
 
    	
 
    
	
“Lender”
    	
 
    	
means:-

 

(a)                                 any Original Lender and

 

(b)                                 any bank, financial institution, trust, fund or other entity which has   become a Party as a Lender in accordance with Clause 11.2 (Increase) or Clause 35 (Changes to the Lenders)

 

which in each case has not ceased to be a Lender in 
    

 

20

 

	
 
    	
 
    	
accordance with the terms of this Agreement
    
	
 
    	
 
    	
 
    
	
“LIBOR”
    	
 
    	
means, in relation to any Loan:

 

(a)                                 the applicable Screen Rate;

 

(b)                                 (if no Screen Rate is available for the currency or Interest Period of   that Loan) the Interpolated Screen Rate for that Loan; or

 

(c)                                  if:

 

(i)                                     no Screen Rate is available for the currency of that Loan; or

 

(ii)                                  no Screen Rate is available for the Interest Period of that Loan and   it is not possible to calculate an Interpolated Screen Rate for that Loan,

 

the Base Reference Bank Rate, as of, in the case of paragraphs   (a) and (c) above, the Specified Time on the Quotation Day for the   currency of that Loan and for a period equal in length to the Interest Period   of that Loan
    
	
 
    	
 
    	
 
    
	
“Limitation Acts”
    	
 
    	
means the Limitation Act 1980 and the Foreign Limitation Periods   Act 1984
    
	
 
    	
 
    	
 
    
	
“LMA”
    	
 
    	
means the Loan Market Association
    
	
 
    	
 
    	
 
    
	
“Loan”
    	
 
    	
means a loan made or to be made under the Facility or the principal   amount outstanding for the time being of that loan
    
	
 
    	
 
    	
 
    
	
“Majority Lenders”
    	
 
    	
means:-

 

(a)                                 subject to paragraph (b) below, a Lender or Lenders whose   Commitments aggregate more than 662/3 per cent of the Total Commitments (or, if the Total Commitments   have been reduced to zero, aggregated more than 662/3 per cent of the Total Commitments immediately prior to that   reduction)

 

(b)                                 for the purposes of Clause 34.18 (Acceleration)   where an Event of Default has occurred and is continuing under any of Clauses   34.1 (Non-payment), 34.2 (Financial covenants and other obligations) (where such   Event of Default arises from a breach of Clause 32 (Financial   covenants)), 34.5 (Cross default),   34.6 (Insolvency), 34.7 (Insolvency proceedings),   34.8 (Creditors’ process), a Lender or   Lenders whose Commitments aggregate 50 per cent or more of the Total   Commitments (or, if the Total Commitments
    

 

21

 

	
 
    	
 
    	
have been reduced to zero, aggregated 50 per cent or more of the   Total Commitments immediately prior to that reduction)
    
	
 
    	
 
    	
 
    
	
“Margin”
    	
 
    	
means:-

 

(a)                                 in relation to any Loan, 3 per cent per annum

 

(b)                                 in relation to any Unpaid Sum relating or referable to the Facility,   the rate per annum specified above and

 

(c)                                  in relation to any other Unpaid Sum, the highest rate specified above

 

but if:-

 

(d)                                 no Event of Default has occurred and is continuing

 

(e)                                  the ratio of Consolidated Net Borrowings to Consolidated EBITDA in   respect of the most recently completed Relevant Period is within a range set   out below,

 

then the Margin for each Loan will be the percentage per annum set out   below in the column opposite that range:-
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Consolidated   Net Borrowings: Consolidated 
   EBITDA
    	
 
    	
Margin   % pa
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Greater than 2.5:1
    	
 
    	
3.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Greater than 2.0:1 but less than or equal to 2.5:1
    	
 
    	
2.50
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Greater than 1.5:1 but less than or equal to 2.0:1
    	
 
    	
1.90
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Greater than 1.0:1 but less than or equal to 1.5:1
    	
 
    	
1.70
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Greater than 0.7:1 but less than or equal to 1.0:1
    	
 
    	
1.50
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Less than or equal to 0.7:1
    	
 
    	
1.35
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
However:-

 

(i)                                     any increase or decrease in the Margin for a Loan shall take effect on   the date (the “reset date”)   which is three Business Days following receipt by the Agent of the Compliance   Certificate for that Relevant Period pursuant to Clause 31.2 (Provision and contents of Compliance Certificate)
    

 

22

 

	
 
    	
 
    	
(ii)                                  if, following receipt by the Agent of the annual audited financial   statements of the Group and related Compliance Certificate, those statements   and Compliance Certificate do not confirm the basis for a reduced Margin,   then the provisions of Clause 20.2 (Payment   of interest) shall apply and the Margin for that Loan shall be the   percentage per annum determined using the table above and the revised ratio   of Consolidated Net Borrowings to Consolidated EBITDA calculated using the   figures in that Compliance Certificate

 

(iii)                               while an Event of Default is continuing, the Margin for each Loan   shall be the highest percentage per annum set out above and

 

for the purpose of determining the Margin, Consolidated Net   Borrowings, Consolidated EBITDA and Relevant Period shall be determined in accordance   with Clause 32.1 (Financial   definitions)
    
	
 
    	
 
    	
 
    
	
“Material Adverse Effect”
    	
 
    	
means a material adverse effect on:-

 

(a)                                 the business or financial condition of the Group taken as a whole or

 

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

 

(c)                                  the validity or enforceability of any Finance Document
    
	
 
    	
 
    	
 
    
	
“Material Company”
    	
 
    	
means, at any time:-

 

(a)                                 an Obligor or

 

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

 

(c)                                  a Subsidiary of the Company which has earnings before interest, tax,   depreciation and amortisation calculated on the same basis as Consolidated   EBITDA (as defined in Clause 32.1 (Financial definitions)   (but on an unconsolidated basis)) representing 10 per cent. or more of   Consolidated EBITDA (as defined in Clause 32.1 (Financial   definitions)) or has gross assets, net assets or turnover   (excluding intra-group items) representing 10 per cent. or more of the gross   assets, net assets or turnover of the Group, calculated on a consolidated   basis

 

Compliance with the condition set out in   sub-clause (c) shall be determined by reference to the most recent   Compliance Certificate supplied by the Company and/or the latest audited 
    

 

23

 

	
 
    	
 
    	
financial statements of that Subsidiary (consolidated in the case of a   Subsidiary which itself has Subsidiaries) and the latest audited consolidated   financial statements of the Group. However, if a Subsidiary has been acquired   since the date as at which the latest audited consolidated financial   statements of the Group were prepared, the financial statements shall be   deemed to be adjusted in order to take into account the acquisition of that   Subsidiary (that adjustment being certified by two directors of the Company   as representing an accurate reflection of the revised Consolidated EBITDA (as   defined in Clause 32.1 (Financial   definitions)), gross assets, net assets or turnover of the Group).

 

A report by the Company’s Auditors that a Subsidiary is or is not a   Material Company shall, in the absence of manifest error, be conclusive and   binding on all Parties
    
	
 
    	
 
    	
 
    
	
“Material Franchising Agreement”
    	
 
    	
means a franchising agreement entered into by any member of the   Group:-

 

(a)                                 where the profits attributable to, or generated under such franchising   agreement are equal to or greater than 20 per cent. of the aggregate   profits of the Group; or

 

(b)                                 where the turnover attributable to or generated under such franchising   agreement is equal to or greater than 20 per cent. of the aggregate   turnover of the Group
    
	
 
    	
 
    	
 
    
	
“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 sub-clause (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
    
	
 
    	
 
    	
 
    
	
“Multi-account Overdraft”
    	
 
    	
means an Ancillary Facility which is an overdraft facility comprising   more than one account
    

 

24

 

	
“Net Outstandings”
    	
 
    	
means, in relation to a Multi-account Overdraft, the Ancillary   Outstandings of that Multi-account Overdraft
    
	
 
    	
 
    	
 
    
	
“NatWest Overdraft Letter”
    	
 
    	
means the overdraft letter dated on the First Amendment and   Restatement Date between The Royal Bank of Scotland plc as agent for National   Westminster Bank Plc and the Company (as amended, varied or replaced from   time to time) provided that the amount of the overdraft and ancillary facilities   made available pursuant to its terms shall not exceed £12,500,000 at any time   plus the Seasonal Excess Amount
    
	
 
    	
 
    	
 
    
	
“New Lender”
    	
 
    	
has the meaning given to that term in Clause 35 (Changes to the Lenders)
    
	
 
    	
 
    	
 
    
	
“Northern Bank Agreement”
    	
 
    	
means the £2,000,000 facility agreement dated 17 August 2007 as   amended on 25 August 2011 made between Danske Bank (previously Northern   Bank Limited) and Agnew Corporate Ltd
    
	
 
    	
 
    	
 
    
	
“Northern   Irish Obligors”
    	
 
    	
means the companies listed in Schedule 1 Part 1 which are   incorporated under the laws of Northern Ireland
    
	
 
    	
 
    	
 
    
	
“Notifiable Debt Purchase Transaction”
    	
 
    	
has the meaning given to that term in Clause 36.2.2
    
	
 
    	
 
    	
 
    
	
“Obligor”
    	
 
    	
means a Borrower or a Guarantor
    
	
 
    	
 
    	
 
    
	
“Obligors’ Agent”
    	
 
    	
means the Company appointed to act on behalf of each Obligor in   relation to the Finance Documents pursuant to Clause 11.4 (Obligors’ Agent)
    
	
 
    	
 
    	
 
    
	
“Original Financial Statements”
    	
 
    	
means:-

 

(a)                                 in relation to each Original Obligor its audited financial statements   for its Financial Year ended 31 December 2010

 

(b)                                 in relation to any other Obligor, its audited financial statements   delivered to the Agent as required by Clause 37 (Changes to the Obligors)
    
	
 
    	
 
    	
 
    
	
“Original Jurisdiction”
    	
 
    	
means, in relation to an Obligor, the jurisdiction under whose laws   that Obligor is incorporated as at the date of this Agreement or, in the case   of an Additional Obligor, as at the date on which that Additional Obligor   becomes Party as a Borrower or a Guarantor (as the case may be);
    
	
 
    	
 
    	
 
    
	
“Original Obligor”
    	
 
    	
means an Original Borrower or an Original Guarantor
    
	
 
    	
 
    	
 
    
	
“PAE GmbH”
    	
 
    	
means Penske Automotive Europe GmbH (a company incorporated in   Germany)
    
	
 
    	
 
    	
 
    
	
“PAG”
    	
 
    	
Penske Automotive Group Inc
    

 

25

 

	
“Participating Member State”
    	
 
    	
means any member state of the European Union that has the euro as its   lawful currency in accordance with legislation of the European Union relating   to Economic and Monetary Union
    
	
 
    	
 
    	
 
    
	
“Party”
    	
 
    	
means a party to this Agreement
    
	
 
    	
 
    	
 
    
	
“Pensions Regulator”
    	
 
    	
means the body corporate called the Pensions Regulator established   under Part I of the Pensions Act 2004
    
	
 
    	
 
    	
 
    
	
“Permitted Acquisition”
    	
 
    	
means:-

 

(a)                                 the acquisition of the entire issued share capital of each of Agnew   Retail Limited, Road-field Motors Limited and Agnew Autoexchange Limited   provided that such acquisition is funded using the proceeds of the facility   referred to in paragraph (m) of the definition of Permitted   Financial Indebtedness

 

(b)                                 acquisitions or investments of motor retail operations made in the   ordinary course of trade

 

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

 

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

 

(e)                                  an acquisition for cash consideration, of (A) all of the issued   share capital of a limited liability company or (B) (if the acquisition   is made by a limited liability company whose sole purpose is to make the   acquisition) a business or undertaking carried on as a going concern, but   only if:-

 

(i)                                     no Default is continuing on the closing date for the acquisition or   would occur as a result of the acquisition

 

(ii)                                  the acquired company, business or undertaking is incorporated or   established, and carries on its principal business in, the United Kingdom and

 

(iii)                               the cash consideration (including associated costs and expenses) for   the acquisition (the “Total Purchase Price”)   does not exceed in aggregate £20,000,000 or its equivalent

 

(f)                                   an acquisition made with the prior written consent of the Agent   (acting on the instructions of the Lenders)
    

 

26

 

	
 
    	
 
    	
Any acquisition will only be permitted under   sub-clauses (e)  and (f) if the Company has delivered to the   Agent not later than 5 Business Days before legally committing to make   such acquisition a certificate signed by two directors of the Company to   which is attached a copy of the latest audited accounts (or if not available,   management accounts) of the target company or business
    
	
 
    	
 
    	
 
    
	
“Permitted Disposal”
    	
 
    	
means any sale, lease, licence, transfer or other disposal which,   except in the case of sub-clause (b) is on arm’s length terms:-

 

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

 

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

 

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

 

(ii)                                  the Disposing Company had given Security over the asset, the Acquiring   Company must give equivalent Security over that asset and

 

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

 

(c)                                  in exchange for other assets comparable or superior as to type, value   and quality

 

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

 

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

 

(f)                                   constituted by a licence of intellectual property rights permitted by   Clause 33.25 (Intellectual Property)

 

(g)                                  to a Joint Venture, to the extent permitted by Clause 33.10 (Joint ventures)

 

(h)                                 arising as a result of any Permitted Security

 

(i)                                     arising as a result of a Permitted Sale and Leaseback Transaction

 

(j)                                    of any of the Franchises

 

(k)                                 of assets where the proceeds of the Disposal are used 
    

 

27

 

	
 
    	
 
    	
within 12 months of that Disposal for the purchase of assets to   replace the asset which is the subject of that Disposal with assets of a   similar type and quality

 

(l)                                     of assets for cash where (A) the higher of the book value and net   consideration receivable in respect of any individual asset the subject of   the Disposal does not exceed £15,000,000 and (B) where the higher of the   book value and net consideration receivable (when aggregated with the higher   of the book value and net consideration receivable for any other sale, lease,   licence, transfer or other disposal not allowed under the preceding   sub-clauses does not exceed £40,000,000 (or its equivalent) in any Financial   Year of the Company and

 

(m)                             made with the prior written consent of the Agent (acting on the   instructions of the Lenders) such consent not to be unreasonably withheld or   delayed
    
	
 
    	
 
    	
 
    
	
“Permitted Distribution”
    	
 
    	
means:-

 

(a)                                 the payment of a dividend by the Company to the Parent provided that:

 

(i)                                     such dividend shall not exceed 50 per cent of the consolidated profit   of the Group on ordinary activities before taxation in the Financial Year   prior to that in which the payment of the dividend is to be made (the “Base Year”) (as evidenced by the consolidated audited   financial statements of the Parent for the Base Year delivered to the Agent   in accordance with Clause 31.11.1 and the US GAAP Reconciliation   Statement for the Base Year delivered to the Agent in accordance with Clause   31.11.2 (and no dividend shall be paid prior to receipt by the Agent of those   financial statements and the relevant US GAAP Reconciliation Statement));

 

(ii)                                  the amount of such dividend (the “Total Dividend Amount”),   together with the aggregate amount of all loans referred to in paragraph   (h) of the definition of Permitted Loan made in the relevant Financial   Year of the Company shall not in any Financial Year of the Company exceed   £30,000,000;

 

(iii)                               no Financial Event of Default is outstanding at the time such payment   is made nor will occur as a result of such payment and

 

(iv)                              such dividend must be paid within the 12 month period following the   end of the Base 
    

 

28

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Year

 

(b)                                 the payment of a dividend to the Company or any of its wholly-owned   Subsidiaries

 

(c)                                  the payment of a dividend by the Company to the Parent of up to a   maximum amount of £18,800,000 on or after the First Amendment and Restatement   Date provided that this dividend is for the purpose of clearing an   inter-company balance and there is no cash movement to the Parent in   connection with this dividend after the First Amendment and Restatement Date   and

 

(d)                                 the payment of a dividend by the Company with the   prior written consent of the Agent (acting on the instructions of the   Lenders) such consent not be unreasonably withheld or delayed unless an Event   of Default is continuing
    
	
 
    	
 
    	
 
    
	
“Permitted Financial Indebtedness”
    	
 
    	
means Financial Indebtedness:-

 

(a)                                          arising under the Finance Documents

 

(b)                                          arising under any Stocking Facility

 

(c)                                           arising under the NatWest Overdraft Letter (provided that the   aggregate amount of all overdraft and other facilities made available pursuant   to the NatWest Overdraft Letter shall not exceed £12,500,000 at any time plus   the Seasonal Excess Amount)

 

(d)                                          to the extent covered by a letter of credit, guarantee or indemnity   issued under an Ancillary Facility

 

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

 

(f)                                            arising under a Permitted Loan or a Permitted Guarantee

 

(g)                                           as permitted by Clause 33.29 (Treasury   Transactions)

 

(h)                                          of any person acquired by a member of the Group after the Closing Date   which is incurred under arrangements in existence at the date of acquisition,   but not incurred or increased or having its maturity date extended in   contemplation of, or since, that acquisition, and outstanding only for a   period of six months following the date of acquisition
    

 

29

 

	
 
    	
 
    	
(i)                                     under Finance Leases of, or hire purchase agreements relating to,   motor vehicles

 

(j)                                    existing at the date of this Agreement

 

(k)                                 which is subordinated to the Facility on terms satisfactory to the   Agent (acting reasonably)

 

(l)                                     incurred with the prior written consent of the Agent (acting on the   instructions of the Lenders)

 

(m)                             arising under the term loan facility dated 10 January 2012 made   available by National Westminster Bank Plc to the Company (provided that the   maximum aggregate principal amount of that facility shall not exceed   £30,000,000 and that such facility is documented on terms substantially the   same as the terms of this Agreement (but on a bilateral basis and including   market-standard provisions to reflect that the facility is to be used to fund   an acquisition))

 

(n)                                 arising under the Ulster Bank Agreement provided that the Financial   Indebtedness arising under such agreement will only be permitted if it is   less than or equal to £2,000,000

 

(o)                                 arising under the Northern Bank Agreement provided that the Financial   Indebtedness arising under such agreement will only be permitted if it is   less than or equal to the amount of the facility in place on the date of the   2012 Amendment Deed

 

(p)                                 arising under a Short Term Loan

 

(q)                                 arising under a mortgage of up to £4,000,000 with Lexus Financial   Services in respect of the freehold of Lexus Milton Keynes and

 

(r)                                    not otherwise permitted by the preceding paragraphs or as a Permitted   Transaction and the outstanding principal amount of which does not exceed   £10,000,000 (or its equivalent) in aggregate for the Group at any time

 
    
	
“Permitted Guarantee”
    	
 
    	
means:-

 

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

 

(b)                                 any performance or similar bond guaranteeing performance by a member   of the Group under any contract entered into in the ordinary course of trade

 

(c)                                  any guarantee of a Joint Venture to the extent 
    

 

30

 

	
 
    	
 
    	
permitted by Clause 33.10 (Joint ventures)

 

(d)                                 any guarantee permitted under Clause 33.19 (Financial Indebtedness)

 

(e)                                  any guarantee given in respect of the netting or set-off arrangements   permitted pursuant to sub-clause (b) of the definition of Permitted   Security or

 

(f)                                   any indemnity given in the ordinary course of the documentation of an   acquisition or disposal transaction which is a Permitted Acquisition or   Permitted Disposal which indemnity is in a customary form and subject to   customary limitations

 

(g)                                  any guarantee given by a member of the Group which is an Obligor in   respect of the obligations or liabilities of another member of the Group   which is an Obligor

 

(h)                                 any guarantee given by a member of the Group which is not an Obligor   in respect of the obligations or liabilities of another member of the Group

 

(i)                                     any guarantee given with the prior written consent of the Agent   (acting on the instructions of the Lenders)

 

(j)                                    the guarantee dated 27 February 2007 granted by the Parent and   certain members of the Group in favour of the Bilateral Overdraft Lender

 

(k)                                 the guarantee granted by   each member of the Group party to the Ulster Bank Agreement in favour of   Ulster Bank Limited in respect of the Ulster Bank Agreement

 

(l)                                     the guarantee dated 10   January 2012 granted by each of Isaac Agnew Limited, Agnew Autoexchange   Limited, Stanley Motor Works (1932) Limited, Isaac Agnew (Mallusk)   Limited, Bavarian Garages (NI) Limited, I A P C B Limited, Isaac   Agnew (Holdings) Limited, Trade Parts Specialist (NI) Limited, Agnew   Corporate Ltd, Agnew Commercials Limited, Agnew Retail Limited, GAP Software   Solutions Ltd and Agnew Trade Centre Limited in favour of Northern Bank   Limited

 

(m)                             the guarantees granted by the Company in relation to the obligations   of Agnew Autoexchange Limited, Isaac Agnew (Holdings)   Limited, Isaac Agnew Limited, I A P C B Limited and Isaac Agnew   (Mallusk) Limited to Volkswagen Financial Services (UK) Limited and   Volkswagen Bank GmbH and

 

(n)                                 any guarantees granted in addition to those permitted under paragraphs   (a) to (j) above provided that the maximum aggregate liability   (whether present or future, actual or contingent) of all members of the 
    

 

31

 

	
 
    	
 
    	
Group under all such guarantees does not   exceed £7,500,000 at any time
    
	
 
    	
 
    	
 
    
	
“Permitted Joint Venture”
    	
 
    	
means any investment in any Joint Venture where:-

 

(a)                                 the Joint Venture is incorporated, or established, and carries on its   principal business, in the United Kingdom

 

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

 

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

 

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

 

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

 

(iii)                               the market value of any assets transferred by any member of the Group   to any such Joint Venture,

 

when aggregated with the Total Purchase Price in respect of Permitted   Acquisitions in that Financial Year permitted pursuant to   sub-clause (d) of the definition of Permitted Acquisition does not   exceed £20,000,000 (or its equivalent in other currencies)
    
	
 
    	
 
    	
 
    
	
“Permitted Loan”
    	
 
    	
means:-

 

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

 

(b)                                 Financial Indebtedness which is referred to in the definition of, or   otherwise constitutes, Permitted Financial Indebtedness (except under   sub-clause (f) of that definition)

 

(c)                                  a loan made to a Joint Venture to the extent permitted under   Clause 33.10 (Joint ventures)

 

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

 

(e)                                  any loan made by any member of the Group to a 
    

 

32

 

	
 
    	
 
    	
member of the German Group so long as the aggregate amount of the   Financial Indebtedness under any such loans does not exceed £7,500,000 (or   its equivalent) at any time

 

(f)                                   the subscription for vendor loan notes in connection with a Permitted   Disposal

 

(g)                                  a loan made by a member of the Group to an employee or director of any   member of the Group if the amount of that loan when aggregated with the   amount of all loans to employees and directors by members of the Group does   not exceed £500,000 (or its equivalent) at any time

 

(h)                                 a loan made by the Company to any Subsidiary of PAG which is not a   member of the Group, provided that the maximum aggregate amount of all such   loans made in any Financial Year of the Company when aggregated with the   Total Dividend Amount in respect of Permitted Distributions paid or made in   that Financial Year of the Company:

 

(A)                               shall not exceed 50 per cent of the consolidated profit of the Group   on ordinary activities before taxation in the Base Year (as defined in the   definition of “Permitted Distribution”) (as evidenced by the consolidated   audited financial statements of the Parent for the Base Year delivered to the   Agent in accordance with Clause 31.11.1 and the US GAAP Reconciliation   Statement for the Base Year delivered to the Agent in accordance with Clause   31.11.2 (and no loan permitted pursuant to this paragraph (h)(a) shall   be paid prior to receipt by the Agent of those financial statements and the   relevant US GAAP Reconciliation Statement)); and

 

(B)                               does not exceed £30,000,000 (or its equivalent in other currencies)   and

 

(i)                                     any loan (other than a loan made by a member of the Group to another   member of the Group) so long as the aggregate amount of the Financial   Indebtedness under any such loans does not exceed £2,500,000 (or its   equivalent) at any time,

 

so long as in the case of:-

 

(j)                                    sub-clause (d) above the creditor of such Financial   Indebtedness shall (if it is an Obligor) grant security over its rights in   respect of such Financial Indebtedness in favour of the Secured Parties on   terms acceptable to the Agent (acting on the
    

 

33

 

	
 
    	
 
    	
instructions of the Majority Lenders) and

 

(k)                                 sub-clause (f) above to the extent required by the Intercreditor   Agreement, the creditor and (if the debtor is a member of the Group) the   debtor of such Financial Indebtedness are or become party to the   Intercreditor Agreement as an Intra-Group Lender and a Debtor (as defined, in   each case, in the Intercreditor Agreement) respectively
    
	
 
    	
 
    	
 
    
	
“Permitted Sale and Leaseback Transaction”
    	
 
    	
means a sale and leaseback of any asset of a member of the Group where   the net consideration received by the relevant member of the Group does not   exceed:

 

(a)                                 £15,000,000 in respect of any single sale and leaseback transaction;   and

 

(b)                                 £40,000,000 in aggregate in any Financial Year of the Company
    
	
 
    	
 
    	
 
    
	
“Permitted Security”
    	
 
    	
means:-

 

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

 

(b)                                 any netting or set-off arrangement entered into by any member of the   Group with National Westminster Bank plc in the ordinary course of its   banking arrangements for the purpose of netting debit and credit balances of   members of the Group (including a Multi-account Overdraft) but only so long   as (i) such arrangement does not permit credit balances of Obligors to   be netted or set off against debit balances of members of the Group which are   not Obligors and (ii) such arrangement does not give rise to other   Security over the assets of Obligors in support of liabilities of members of   the Group which are not Obligors except, in the case of (i) and   (ii) above, to the extent such netting, set-off or Security relates to,   or is granted in support of, a loan permitted pursuant to sub-clause (e) of   the definition of “Permitted Loan”

 

(c)                                  any payment or close out netting or set-off arrangement pursuant to   any Treasury Transaction or foreign exchange transaction entered into by a   member of the Group which constitutes Permitted Financial Indebtedness,   excluding any Security or Quasi-Security under a credit support arrangement

 

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

 

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

 

34

 

	
 
    	
 
    	
that asset by a member of the Group

 

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

 

(iii)                               the Security or Quasi-Security is removed or discharged within   6 months of the date of acquisition of such asset

 

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

 

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

 

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

 

(iii)                               the Security or Quasi-Security is removed or discharged within   six months of that company becoming a member of the Group

 

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

 

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

 

(h)                                 any Security or Quasi-Security arising as a consequence of any finance   or capital lease permitted pursuant to sub-clause (h) of the   definition of “Permitted Financial Indebtedness”

 

(i)                                     any Security arising pursuant to, or in connection with, a Stocking   Facility

 

(j)                                    any Security arising pursuant to the Existing Security Documents

 

(k)                                 any Security or Quasi-Security arising under any agreement entered   into by a member of the Group in the ordinary course of its trading   activities to sell, transfer or otherwise dispose of any of its assets on   terms whereby they are or may be leased to or 
    

 

35

 

	
 
    	
 
    	
re-acquired by any member of the Group

 

(l)                                     the Security existing at the date of this Agreement and the Second   Amendment and Restatement Date in favour of the Bilateral Overdraft Lender

 

(m)                             any Security notified to the Lenders in writing prior to the date of   this Agreement and the Second Amendment and Restatement Date except to the   extent the principal amount secured by that Security exceeds the amount   stated in that notification

 

(n)                                 the Security executed by the target companies described in paragraph   (a) of the definition of “Permitted Acquisition”   and their subsidiaries in favour of National Westminster Bank Plc as security   for the Financial Indebtedness described in paragraph (m) of the   definition of Permitted Financial Indebtedness within 10 Business Days of the   2012 Amendment Deed or

 

(o)                                 any Security securing indebtedness the outstanding principal amount of   which (when aggregated with the outstanding principal amount of any other   indebtedness which has the benefit of Security given by any member of the   Group other than any permitted under   sub-clauses (a) to (m) above) does not exceed £7,500,000   (or its equivalent in other currencies)
    
	
 
    	
 
    	
 
    
	
“Permitted Treasury Transaction”
    	
 
    	
means

 

(a)                                                                                 the hedging transactions documented by the Hedging Agreements;

 

(b)                                                                                 spot and forward delivery foreign exchange contracts entered into in   the ordinary course of business and not for speculative purposes

 

(c)                                                                                  any Treasury Transaction entered into for the hedging of actual or   projected real exposures arising in the ordinary course of trading activities   of a member of the Group for a period of not more than four years and not for   speculative purposes or

 

(d)                                 a Treasury Transaction on commercial terms acceptable to the Lenders   entered into by a member of the Group with a person other than a Finance   Party which does not benefit from Security granted by any member of the Group
    
	
 
    	
 
    	
 
    
	
“Permitted Transaction”
    	
 
    	
means:-

 

(a)                                 any disposal required, Financial Indebtedness incurred, guarantee,   indemnity or Security or Quasi-
    

 

36

 

	
 
    	
 
    	
Security given, or other transaction arising, under the Finance   Documents

 

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

 

(c)                                  transactions (other than (i) any sale, lease, license, transfer   or other disposal and (ii) the granting or creation of Security or the   incurring or permitting to subsist of Financial Indebtedness) conducted in   the ordinary course of trading on arm’s length terms
    
	
 
    	
 
    	
 
    
	
“Properties”
    	
 
    	
means any Real Property acquired by an Obligor after the date of this   Agreement. A reference to a “Property” is a reference to any of the   Properties
    
	
 
    	
 
    	
 
    
	
“Qualifying Lender”
    	
 
    	
has the meaning given to that term in Clause 24 (Tax gross-up and indemnities)
    
	
 
    	
 
    	
 
    
	
“Quarter Date”
    	
 
    	
means the last day of a Financial Quarter
    
	
 
    	
 
    	
 
    
	
“Quasi-Security”
    	
 
    	
has the meaning given to that term in Clause 33.13 (Negative pledge)
    
	
 
    	
 
    	
 
    
	
“Quotation Day”
    	
 
    	
means, in relation to any period for which an interest rate is to be   determined:-

 

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

 

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

 

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

 

unless market practice differs in the Relevant Market for that   currency, in which case the Quotation Day for that currency will be   determined by the Agent in accordance with market practice in the Relevant   Market (and if quotations would normally be given on more than one day, the   Quotation Day will be the last of those days)
    
	
 
    	
 
    	
 
    
	
“Real Property”
    	
 
    	
means:-

 

(a)                                 any freehold, leasehold or immovable property and

 

(b)                                 any buildings, fixtures, fittings, fixed plant or machinery from time   to time situated on or forming part of that freehold, leasehold or immovable   property
    
	
 
    	
 
    	
 
    
	
“Receiver”
    	
 
    	
means a receiver or receiver and manager or administrative
    

 

37

 

	
 
    	
 
    	
receiver of the whole or any part of the Charged Property
    
	
 
    	
 
    	
 
    
	
“Related Fund”
    	
 
    	
in relation to a fund (the “first   fund”), means a fund which is managed or advised by the same   investment manager or investment adviser as the first fund or, if it is   managed by a different investment manager or investment adviser, a fund whose   investment manager or investment adviser is an Affiliate of the investment   manager or investment adviser of the first fund
    
	
 
    	
 
    	
 
    
	
“Relevant Jurisdiction”
    	
 
    	
means, in relation to an Obligor:-

 

(a)                                 its Original Jurisdiction

 

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

 

(c)                                  any jurisdiction where it conducts its business and

 

(d)                                 the jurisdiction whose laws govern the perfection of any of the   Transaction Security Documents entered into by it
    
	
 
    	
 
    	
 
    
	
“Relevant Market”
    	
 
    	
means the London interbank market
    
	
 
    	
 
    	
 
    
	
“Relevant Period”
    	
 
    	
has the meaning given to that term in Clause 32.1 (Financial definitions)
    
	
 
    	
 
    	
 
    
	
“Repayment Date”
    	
 
    	
means the last day of an Interest Period for a Loan
    
	
 
    	
 
    	
 
    
	
“Repeating Representations”
    	
 
    	
means each of the representations set out in Clause 30.2 (Status) to Clause 30.7 (Governing law and enforcement),   Clause 30.11 (No default),   Clause 30.12.2, Clause 30.13 (Original   Financial Statements), Clause 30.20 (Ranking) to Clause 30.22 (Legal and beneficial ownership) and   Clause 30.28 (Centre of main   interests and establishments)
    
	
 
    	
 
    	
 
    
	
“Representative”
    	
 
    	
means any delegate, agent, manager, administrator, nominee, attorney,   trustee or custodian
    
	
 
    	
 
    	
 
    
	
“Resignation Letter”
    	
 
    	
means a letter substantially in the form set out in Schedule 10 (Form of Resignation Letter)
    
	
 
    	
 
    	
 
    
	
“Rollover Loan”
    	
 
    	
means one or more Loans:-

 

(a)                                 made or to be made on the same day that a maturing Loan is due to be   repaid or

 

(b)                                 the aggregate amount of which is equal to or less than the amount of   the maturing Loan

 

(c)                                  made or to be made to the same Borrower for the purpose of refinancing   that maturing Loan
    

 

38

 

	
“Screen Rate”
    	
 
    	
means the London interbank offered rate administered by ICE Benchmark   Administration Limited (or any other person which takes over the   administration of that rate) for the relevant currency and period displayed   on pages LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any   replacement Thomson Reuters page which displays that rate), or on the   appropriate page of such other information service which publishes that   rate from time to time in place of Thomson Reuters. If such page or   service ceases to be available, the Agent may specify another page or   service displaying the relevant rate after consultation with the Company.
    
	
 
    	
 
    	
 
    
	
“Seasonal Excess Amount”
    	
 
    	
means an additional amount up to a maximum of £40,000,000 made available   during the following periods:

 

(a)                                 20 March to 30 April in each year; and

 

(b)                                 20 September to 31 October in each year
    
	
 
    	
 
    	
 
    
	
“Second Amendment and Restatement Agreement”
    	
 
    	
means the agreement amending and restating this Agreement entered into   between Parties on the Second Amendment and Restatement Date
    
	
 
    	
 
    	
 
    
	
“Second Amendment and Restatement Date”
    	
 
    	
means 2 April 2015
    
	
 
    	
 
    	
 
    
	
“Secured Parties”
    	
 
    	
means each Finance Party from time to time party to this Agreement and   any Receiver or Delegate
    
	
 
    	
 
    	
 
    
	
“Security”
    	
 
    	
means a mortgage, charge, pledge, lien or other security interest   securing any obligation of any person or any other agreement or arrangement   having a similar effect
    
	
 
    	
 
    	
 
    
	
“Short Term Loan”
    	
 
    	
means a loan from PAG or any of its Subsidiaries (other than a member   the Group) to any member of Group provided that:

 

(a)                                 each such loan is to be repaid within 45 days of being made to the   relevant member(s) of the Group (subject to Clause 33.18.3);

 

(b)                                 a maximum of two such loans may be made available to the relevant member(s) of   the Group in each calendar year; and

 

(c)                                  such a loan may not be made available unless a period of at least 90   days has elapsed since the previous loan was repaid by the relevant   member(s) of the Group
    
	
 
    	
 
    	
 
    
	
“Specified Time”
    	
 
    	
means a time determined in accordance with Schedule 12 (Timetables)
    
	
 
    	
 
    	
 
    
	
“Sponsor Affiliate”
    	
 
    	
means PAG, each of its Affiliates, any trust of which PAG or any of   its Affiliates is a trustee, any partnership of which PAG or any of its   Affiliates is a partner and any trust, fund or other entity 
    

 

39

 

	
 
    	
 
    	
which is managed by, or is under the control of, PAG or any of its   Affiliates provided that any such trust, fund or other   entity which has been established for at least 6 months solely for the   purpose of making, purchasing or investing in loans or debt securities and   which is managed or controlled independently from all other trusts, funds or   other entities managed or controlled by PAG or any of its Affiliates which   have been established for the primary or main purpose of investing in the   share capital of companies shall not constitute a Sponsor Affiliate
    
	
 
    	
 
    	
 
    
	
“Stocking Facility”
    	
 
    	
means any facility provided to a member of the Group for vehicle   stock, used demonstrators and/or consignment stock
    
	
 
    	
 
    	
 
    
	
“Subsidiary”
    	
 
    	
means a subsidiary undertaking within the meaning of section 1159   of the Companies Act 2006
    
	
 
    	
 
    	
 
    
	
“TARGET2”
    	
 
    	
means the Trans-European Automated Real-time Gross Settlement Express   Transfer payment system which utilises a single shared platform and which was   launched on 19 November 2007
    
	
 
    	
 
    	
 
    
	
“TARGET Day”
    	
 
    	
means any day on which TARGET2 is open for the settlement of payments   in euro
    
	
 
    	
 
    	
 
    
	
“Tax”
    	
 
    	
means any tax, levy, impost, duty or other charge or withholding of a   similar nature (including any penalty or interest payable in connection with   any failure to pay or any delay in paying any of the same)
    
	
 
    	
 
    	
 
    
	
“Termination Date”
    	
 
    	
means 19 December 2019
    
	
 
    	
 
    	
 
    
	
“Testing Date”
    	
 
    	
means the date when the financial covenants contained in Clause 32.2 (Financial condition) are to be tested
    
	
 
    	
 
    	
 
    
	
“Total Commitments”
    	
 
    	
means the aggregate of the Commitments, being £150,000,000 at the   Second Amendment and Restatement Date
    
	
 
    	
 
    	
 
    
	
“Trade Instruments”
    	
 
    	
means any performance bonds, or advance payment bonds or documentary   letters of credit issued in respect of the obligations of any member of the   Group arising in the ordinary course of trading of that member of the Group
    
	
 
    	
 
    	
 
    
	
“Transaction Security”
    	
 
    	
means the Security created or expressed to be created in favour of the   Security Agent pursuant to the Transaction Security Documents
    
	
 
    	
 
    	
 
    
	
“Transaction Security Documents”
    	
 
    	
means each of the documents listed as being a Transaction Security   Document in paragraph 2.6 of Part 1 of Schedule 5 (Conditions Precedent), any document   required to be delivered to the Agent under paragraph 13 of Part 2   of Schedule 5 (Conditions Precedent),   the debenture dated 24 January 2012 entered into by the Northern Irish   Obligors in favour of the Security Agent, together with any other document entered   into by any Obligor creating or expressed to create any Security 
    

 

40

 

	
 
    	
 
    	
over all or any part of its assets in respect of the obligations of   any of the Obligors under any of the Finance Documents
    
	
 
    	
 
    	
 
    
	
“Transfer Certificate”
    	
 
    	
means a certificate substantially in the form set out in   Schedule 7 (Form of Transfer   Certificate) or any other form agreed between the Agent and the   Company
    
	
 
    	
 
    	
 
    
	
“Transfer Date”
    	
 
    	
means, in relation to an assignment or transfer, the later of:-

 

(a)                                 the proposed Transfer Date specified in the relevant Assignment   Agreement or Transfer Certificate and

 

(b)                                 the date on which the Agent executes the relevant Assignment Agreement   or Transfer Certificate
    
	
 
    	
 
    	
 
    
	
“Treasury Transactions”
    	
 
    	
means any derivative transaction entered into in connection with   protection against or benefit from fluctuation in any rate or price
    
	
 
    	
 
    	
 
    
	
“UAG Group”
    	
 
    	
means the Parent and each of its Subsidiaries from time to time
    
	
 
    	
 
    	
 
    
	
“Ulster Bank Agreement”
    	
 
    	
means the working capital facility agreement most recently entered   into on 3 July 2014 (and renewed annually) documenting the terms of a   working capital facility of up to £2,000,000 to be made available by Ulster   Bank Limited to Agnew Retail Limited, Isaac Agnew (Holdings) Limited,   Agnew Commercials Limited, Bavarian Garages (NI) Limited, GAP Software   Solutions Ltd, Isaac Agnew (Mallusk) Limited, Stanley Motor Works (1932)   Limited, Agnew Autoexchange Limited, Agnew Trade Centre Limited, Agnew   Corporate Ltd, I A P C B Limited and Isaac Agnew Limited
    
	
 
    	
 
    	
 
    
	
“Unpaid Sum”
    	
 
    	
means any sum due and payable but unpaid by an Obligor under the   Finance Documents
    
	
 
    	
 
    	
 
    
	
“US”
    	
 
    	
means the United States of America
    
	
 
    	
 
    	
 
    
	
“US GAAP Reconciliation Statement”
    	
 
    	
means a reconciliation, prepared by the Company, of (i) the   Monthly Financial Statements for the Company for the period ending on 31   December in each year and (ii) generally accepted accounting   principles in the United States of America which have been applied in   preparing the audited financial statements of the Parent referred to in   Clause 31.11.1 for the same year
    
	
 
    	
 
    	
 
    
	
“Utilisation”
    	
 
    	
means a Loan
    
	
 
    	
 
    	
 
    
	
“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 relevant form set out in   Schedule 6 (Requests and Notices)
    
	
 
    	
 
    	
 
    
	
“VAT”
    	
 
    	
means:

 

(a)                                 any tax imposed in compliance with the Council Directive of 28   November 2006 on the common 
    

 

41

 

	
 
    	
 
    	
system of value added tax (EC Directive   2006/112); and

 

(b)                                 any other tax of a similar nature, whether imposed in a member state   of the European Union in substitution for, or levied in addition to, such tax   referred to in paragraph (a) above, or imposed elsewhere
    
	
 
    	
 
    	
 
    
	
“Vehicle Financier Deeds of Priority”
    	
 
    	
means deeds of priority entered into between, among others, the   Security Agent and each of the following financiers (in their respective   capacities as providers of vehicle finance to certain members of the Group):-

 

(a)                                 BMW Financial Services (GB) Limited;

 

(b)                                 Volkswagen Financial Services (UK) Limited and Volkswagen Bank GmbH   (trading as Volkswagen Bank United Kingdom Branch); and

 

(c)                                  Mercedes-Benz Bank AG UK Branch,

 

(each, a “Vehicle Financier Deed of   Priority”).
    

 

10.2                                 Construction

 

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

 

(a)                                          the “Agent”, the “Arranger”, any “Finance Party”, any “Hedge Counterparty”, any “Lender”, any “Obligor”, any “Party”, any “Secured Party”, the “Security Agent”, the “Bilateral Overdraft Lender” or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents and, in the case of the Security Agent, any person for the time being appointed as Security Agent or Security Agents in accordance with the Finance Documents;

 

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

 

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

 

(d)                                          a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

 

(e)                                           a “group of Lenders” includes all the Lenders;

 

(f)                                            “guarantee” means (other than in Clause 29 (Guarantee and Indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets

 

42

 

of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

 

(g)                                           “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;

 

(h)                                          a “person” includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership or other entity (whether or not having separate legal personality);

 

(i)                                              a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but if not having the force of law, being one which is customarily complied with in the relevant jurisdiction by persons or entities equivalent to the relevant person or entity in question) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation;

 

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

 

(k)                                          “date of this Agreement” means 16 December 2011; and

 

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

 

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

 

10.2.3                      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.

 

10.2.4                      A Borrower providing “cash cover” for an Ancillary Facility means a Borrower paying an amount in the currency of the Ancillary Facility) to an interest-bearing account in the name of the Borrower and the following conditions being met:-

 

(a)                                          the account is with the Security Agent or with the Ancillary Lender for which that cash cover is to be provided;

 

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

 

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

 

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

 

43

 

10.2.6                      A Borrower “repaying” or “prepaying” an Ancillary Outstandings means:-

 

(a)                                          that Borrower providing cash cover in respect of the Ancillary Outstandings;

 

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

 

(c)                                           the Ancillary Lender being satisfied that it has no further liability under that Ancillary Facility,

 

and the amount by which the Ancillary Outstandings are, repaid or prepaid under Clauses 10.2.6(a) and 10.2.6(b) above is the amount of the relevant cash cover, reduction or cancellation.

 

10.2.7                      An amount borrowed includes any amount utilised under an Ancillary Facility.

 

10.3                                 Third party rights

 

10.3.1                      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.

 

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

 

10.4                                Provision of information by directors

 

If any provision of a Finance Document requires a director or any member of the Group to provide any information, to certify any matter or to make any presentation, any such provision, certification or presentation shall, provided it is made in good faith, be made without personal liability on the part of such director (other than in the case of fraud or gross negligence).

 

44

 

SECTION 2

 

THE FACILITY

 

11.                                        THE FACILITY

 

11.1                                 The Facility

 

11.1.1                      Subject to the terms of this Agreement, the Lenders make available a Sterling revolving credit facility in an aggregate amount equal to the Total Commitments.

 

11.1.2                      The Facility will be available to the Company.

 

11.1.3                      Subject to the terms of this Agreement and the Ancillary Documents, an Ancillary Lender may make all or part of its Commitment available to any Borrower as an Ancillary Facility.

 

11.2                                 Increase

 

11.2.1                      The Parent or the Company may by giving prior notice to the Agent by no later than the date falling 10 Business Days after the effective date of a cancellation of:-

 

(a)                                          the Available Commitments of a Defaulting Lender in accordance with Clause 17.5 (Right of cancellation in relation to a Defaulting Lender); or

 

(b)                                          the Commitments of a Lender in accordance with Clause 17.1 (Illegality);

 

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

 

(c)                                           the increased Commitments will be assumed by one or more Lenders or other banks, financial institutions, trusts, funds or other entities (each an “Increase Lender”) selected by the Parent or the Company (each of which shall not be a Sponsor Affiliate or a member of the Group and which is further acceptable to the Agent (acting reasonably)) and each of which confirms in writing (whether in the relevant Increase Confirmation or otherwise) its willingness to assume and does assume all the obligations of a Lender corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Lender;

 

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

 

(e)                                           each Increase Lender shall become a Party as a “Lender” and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Finance Parties would have

 

45

 

assumed and/or acquired had the Increase Lender been an Original Lender;

 

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

 

(g)                                           any increase in the Total Commitments shall take effect on the date specified by the Parent or the Company in the notice referred to above or any later date on which the conditions set out in Clause 11.2.2 below are satisfied.

 

11.2.2                      An increase in the Total Commitments will only be effective on:-

 

(a)                                          the execution by the Agent of an Increase Confirmation from the relevant Increase Lender;

 

(b)                                          in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase:-

 

(i)                                              the Increase Lender entering into the documentation required for it to accede as a party to the Intercreditor Agreement; and

 

(ii)                                           the Agent being satisfied that it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender. The Agent shall promptly notify the Parent and the Increase Lender upon being so satisfied.

 

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

 

11.2.4                      The Parent shall promptly on demand pay the Agent and the Security Agent the amount of all costs and expenses (including legal fees) reasonably incurred by either of them and, in the case of the Security Agent, by any Receiver or Delegate in connection with any increase in Commitments under this Clause 11.2.

 

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

 

11.2.6                      Clause 35.4 (Limitation of responsibility of Existing Lenders) shall apply mutatis mutandis in this Clause 11.2 in relation to an Increase Lender as if references in that Clause to:-

 

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

 

(b)                                          the “New Lender” were references to that “Increase Lender”; and

 

(c)                                           a “re-transfer” and “re-assignment” were references to respectively a “transfer” and “assignment”.

 

46

 

11.3                                 Finance Parties’ rights and obligations

 

11.3.1                      The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

 

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

 

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

 

11.4                                Obligors’ Agent

 

11.4.1                      Each Obligor (other than the Company) by its execution of this Agreement or an Accession Deed irrevocably appoints the Company (acting through one or more authorised signatories) to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:-

 

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

 

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

 

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

 

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

 

47

 

12.                                        PURPOSE

 

12.1                                Each Borrower shall apply all amounts borrowed by it under the Facility and any utilisation of any Ancillary Facility towards the general corporate and working capital purposes of the Group (but not, in the case of any utilisation of any Ancillary Facility, towards prepayment of any Utilisation).

 

12.2                                 Monitoring

 

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

 

13.                                        CONDITIONS OF UTILISATION

 

13.1                                 Initial conditions precedent

 

13.1.1                      The Lenders will only be obliged to comply with Clause 14.4 (Lenders’ participation) in relation to any Utilisation if on or before the Utilisation Date for that Utilisation, the Agent has received (or waived its requirement to receive) all of the documents and other evidence listed in Part 1 of Schedule 5 (Conditions precedent) in form and substance satisfactory to the Agent.  The Agent shall notify the Company and the Lenders promptly upon being so satisfied. The documents and other evidence listed in Part 1 of Schedule 5 (Conditions precedent) were satisfied or waived on or around 16 December 2011.

 

13.1.2                      Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in Clause 13.1.1 above, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

 

13.2                                 Further conditions precedent

 

Subject to Clause 13.1 (Initial Conditions Precedent), the Lenders will only be obliged to comply with Clause 14.4 (Lenders’ participation), if on the date of the Utilisation Request and on the proposed Utilisation Date:-

 

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

 

13.2.2                      in relation to any Utilisation on the Closing Date, all the representations and warranties in Clause 30 (Representations) or, in relation to any other Utilisation, the Repeating Representations to be made by each Obligor are true in all material respects.

 

13.3                                 Maximum number of Utilisations

 

A Borrower (or the Company) may not deliver a Utilisation Request if as a result of the proposed Utilisation more than 10 Utilisations would be outstanding.

 

48

 

SECTION 3

 

UTILISATION

 

14.                                        UTILISATION - LOANS

 

14.1                                 Delivery of a Utilisation Request

 

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

 

14.2                                 Completion of a Utilisation Request for Loans

 

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

 

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

 

(b)                                          the currency and amount of the Utilisation comply with Clause 14.3 (Currency and amount); and

 

(c)                                           the proposed Interest Period complies with Clause 21 (Interest Periods).

 

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

 

14.3                                 Currency and amount

 

14.3.1                      The currency specified in a Utilisation Request must be Sterling.

 

14.3.2                      The amount of the proposed Utilisation must be an amount which is not more than the Available Facility and which is a minimum of £250,000 or, if less, the Available Facility.

 

14.4                                 Lenders’ participation

 

14.4.1                      If the conditions set out in this Agreement have been met, and subject to Clause 16.1 (Repayment of Loans), each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

 

14.4.2                      Other than as set out in Clause 14.4.3 below, the amount of each Lender’s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.

 

14.4.3                      If a Utilisation is made to repay Ancillary Outstandings, each Lender’s participation in that Utilisation will be in an amount (as determined by the Agent) which will result as nearly as possible in the aggregate amount of its participation in the Utilisations then outstanding bearing the same proportion to the aggregate amount of the Utilisations then outstanding as its Commitment bears to the Total Commitments.

 

14.4.4                      The Agent shall notify each Lender of the amount of each Loan and the amount of its participation in that Loan and, if different, the amount of that participation to

 

49

 

be made available in accordance with Clause 41.1 (Payments to the Agent), in each case by the Specified Time.

 

14.5                                 Limitations on Utilisations

 

14.5.1                      The maximum aggregate amount of the Ancillary Commitments of all the Lenders shall not at any time exceed £15,000,000.

 

14.5.2                      The maximum aggregate amount of the Ancillary Commitments of all the Lenders made available by way of overdraft, same-day access LIBOR loan facility or other facility made available on a short term basis shall not at any time exceed £10,000,000.

 

14.6                                 Cancellation of Commitment

 

The Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period.

 

15.                                        ANCILLARY FACILITIES

 

15.1                                 Type of Facility

 

An Ancillary Facility may be by way of:-

 

15.1.1                      an overdraft facility;

 

15.1.2                      a same-day access LIBOR loan facility;

 

15.1.3                      a guarantee, bonding, documentary or stand-by letter of credit facility; or

 

15.1.4                      any other facility or accommodation required in connection with the business of the Group and which is agreed by the Company with an Ancillary Lender.

 

15.2                                 Availability

 

15.2.1                      If the Company and a Lender agree and except as otherwise provided in this Agreement, the Lender may provide all or part of its Commitment as an Ancillary Facility).  For the avoidance of doubt, BMW Financial Services (GB) Limited shall not be an Ancillary Lender.  The Royal Bank of Scotland plc (as agent for National Westminster Bank Plc) shall make available to the Company within 45 days of the date of this Agreement, an Ancillary Facility by way of a same-day access LIBOR loan facility on an un-committed basis provided that no Default has occurred or is continuing and that the other terms of this Agreement relating to the provision of Ancillary Facilities have been complied with in relation to that Ancillary Facility;

 

15.2.2                      An Ancillary Facility shall not be made available unless, not later than 5 Business Days prior to the Ancillary Commencement Date for an Ancillary Facility, the Agent has received from the Company:-

 

(a)                                          a notice in writing of the establishment of an Ancillary Facility and specifying:-

 

(i)                                              the proposed Borrower(s) (or Affiliates of a Borrower) which may use the Ancillary Facility;

 

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(ii)                                           the proposed Ancillary Commencement Date and expiry date of the Ancillary Facility;

 

(iii)                                        the proposed type of Ancillary Facility to be provided;

 

(iv)                                       the proposed Ancillary Lender;

 

(v)                                          the proposed Ancillary Commitment, the maximum amount of the Ancillary Facility in the case of a Multi-account Overdraft, its Designated Gross Amount and its Designated Net Amount; and

 

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

 

The Agent shall promptly notify the Ancillary Lender and the other Lenders of the establishment of an Ancillary Facility.

 

15.2.3                      Subject to compliance with Clause 15.2.2 above:-

 

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

 

(b)                                          the Ancillary Facility will be available,

 

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

 

15.3                                 Terms of Ancillary Facilities

 

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

 

15.3.2                      Those terms:-

 

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

 

(b)                                          may allow only Borrowers (or Affiliates of Borrowers nominated pursuant to Clause 15.9 (Affiliates of Borrowers)) to use the Ancillary Facility;

 

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

 

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

 

(e)                                           must require that the Ancillary Commitment is reduced to zero, and that all Ancillary Outstandings are repaid not later than the Termination Date (or such earlier date as the Commitment of the relevant Ancillary Lender (or its Affiliate) is reduced to zero).

 

15.3.3                      If there is any inconsistency between any term of an Ancillary Facility and any term of this Agreement, this Agreement shall prevail except for (i) Clause 44.3 (Day count convention) which shall not prevail for the purposes of calculating fees, interest or commission relating to an Ancillary Facility; (ii) an Ancillary

 

51

 

Facility comprising more than one account where the terms of the Ancillary Documents shall prevail to the extent required to permit the netting of balances on those accounts; and (iii) where the relevant term of this Agreement would be contrary to, or inconsistent with, the law governing the relevant Ancillary Document, in which case that term of this Agreement shall not prevail.

 

15.3.4                      Interest, commission and fees on Ancillary Facilities are dealt with in Clause 23.5 (Interest, commission and fees on Ancillary Facilities).

 

15.4                                 Repayment of Ancillary Facility

 

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

 

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

 

15.4.3                      No Ancillary Lender may demand repayment or prepayment of any Ancillary Outstandings prior to the expiry date of the Ancillary Facility unless:-

 

(a)                                          required to reduce the Gross Outstandings of a Multi-account Overdraft to or towards an amount equal to its Net Outstandings;

 

(b)                                          the Total Commitments have been cancelled in full, or all outstanding Utilisations under the Facility have become due and payable in accordance with the terms of this Agreement;

 

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

 

(d)                                          both:

 

(i)                                              the Available Commitments; and

 

(ii)                                           the notice of the demand given by the Ancillary Lender,

 

(e)                                           would not prevent the relevant Borrower funding the repayment of those Ancillary Outstandings in full by way of Utilisation.

 

15.4.4                      If a Utilisation is made to repay Ancillary Outstandings in full, the Commitment of the Ancillary Lender shall be reduced to zero.

 

15.5                                 Limitation on Ancillary Outstandings

 

Each Borrower shall procure that:-

 

15.5.1                      the Ancillary Outstandings under any Ancillary Facility shall not exceed the Ancillary Commitment applicable to that Ancillary Facility; and

 

15.5.2                      in relation to a Multi-account Overdraft:-

 

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(a)              the Ancillary Outstandings shall not exceed the Designated Net Amount applicable to that Multi-account Overdraft.

 

(b)              the Gross Outstandings shall not exceed the Designated Gross Amount applicable to that Multi-account Overdraft.

 

15.6           Adjustment for Ancillary Facilities upon acceleration

 

In this Clause 15.6:-

 

	
“Revolving   Outstandings”
    	
 
    	
means, in relation to a Lender, the   aggregate of:-

 

(a)           its participation   in each Utilisation then outstanding (together with the aggregate amount of   all accrued interest, fees and commission owed to it as a Lender under the   Facility); and

 

(b)           if the Lender is   also an Ancillary Lender, the Ancillary Outstandings in respect of Ancillary   Facilities provided by that Ancillary Lender (or by its Affiliate) (together   with the aggregate amount of all accrued interest, fees and commission owed   to it (or to its Affiliate) as an Ancillary Lender in respect of the   Ancillary Facility); and
    
	
 
    	
 
    	
 
    
	
“Total Revolving Outstandings”
    	
 
    	
means the aggregate of all Revolving Outstandings
    

 

15.6.1       If a notice is served under Clause 34.18 (Acceleration) (other than a notice declaring Utilisations to be due on demand), each Lender and each Ancillary Lender shall promptly adjust (by making or receiving (as the case may be) corresponding transfers of rights and obligations under the Finance Documents relating to Revolving Outstandings) their claims in respect of amounts outstanding to them under the Facility and each Ancillary Facility to the extent necessary to ensure that after such transfers the Revolving Outstandings of each Lender bear the same proportion to the Total Revolving Outstandings as such Lender’s Commitment bears to the Total Commitments, each as at the date the notice is served under Clause 34.18 (Acceleration).

 

15.6.2       If an amount outstanding under an Ancillary Facility is a contingent liability and that contingent liability becomes an actual liability or is reduced to zero after the original adjustment is made under Clause 15.6.1, then each Lender and Ancillary Lender will make a further adjustment (by making or receiving (as the case may be) corresponding transfers of rights and obligations under the Finance Documents relating to Revolving Outstandings to the extent necessary) to put themselves in the position they would have been in had the original adjustment been determined by reference to the actual liability or, as the case may be, zero liability and not the contingent liability.

 

15.6.3       Any transfer of rights and obligations relating to Revolving Outstandings made pursuant to this Clause 15.6 shall be made for a purchase price in cash, payable at the time of transfer, in an amount equal to those Revolving Outstandings (less any accrued interest, fees and commission to which the transferor will remain

 

53

 

entitled to receive notwithstanding that transfer, pursuant to Clause 35.10 (Pro rata interest settlement)).

 

15.6.4       Prior to the application of the provisions of Clause 15.6.1, an Ancillary Lender that has provided a Multi-account Overdraft shall set-off any Available Credit Balance on any account comprised in that Multi-account Overdraft.

 

15.6.5       All calculations to be made pursuant to this Clause 15.6 shall be made by the Agent based upon information provided to it by the Lenders and Ancillary Lenders and the Agent’s Spot Rate of Exchange.

 

15.7           Information

 

Each Borrower and each Ancillary Lender shall, promptly upon request by the Agent, supply the Agent with any information relating to the operation of an Ancillary Facility (including the Ancillary Outstandings) as the Agent may reasonably request from time to time.  Each Borrower consents to all such information being released to the Agent and the other Finance Parties.

 

15.8           Affiliates of Lenders as Ancillary Lenders

 

15.8.1       Subject to the terms of this Agreement, an Affiliate of a Lender may become an Ancillary Lender.  In such case, the Lender and its Affiliate shall be treated as a single Lender whose Commitment is the amount set out opposite the relevant Lender’s name in Part 2 or Part 3 of Schedule 4 (The Original Parties) and/or the amount of any Commitment transferred to or assumed by that Lender under this Agreement, to the extent (in each case) not cancelled, reduced or transferred by it under this Agreement.  For the purposes of calculating the Lender’s Available Commitment with respect to the Facility, the Lender’s Commitment shall be reduced to the extent of the aggregate of the Ancillary Commitments of its Affiliates.

 

15.8.2       The Company shall specify any relevant Affiliate of a Lender in any notice delivered by the Company to the Agent pursuant to Clause 15.2.2(a).

 

15.8.3       An Affiliate of a Lender which becomes an Ancillary Lender shall accede to the Intercreditor Agreement as an Ancillary Lender and any person which so accedes to the Intercreditor Agreement shall, at the same time, become a Party as an Ancillary Lender in accordance with clause 20.5.2 (Deeds of Accession) of the Intercreditor Agreement.

 

15.8.4       If a Lender assigns all of its rights and benefits or transfers all of its rights and obligations to a New Lender, its Affiliate shall cease to have any obligations under this Agreement or any Ancillary Document.

 

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

 

15.9           Affiliates of Borrowers

 

15.9.1       Subject to the terms of this Agreement, an Affiliate of a Borrower may with the approval of the relevant Lender become a borrower with respect to an Ancillary Facility.

 

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15.9.2       The Company shall specify any relevant Affiliate of a Borrower in any notice delivered by the Company to the Agent pursuant to Clause 15.2.2(a).

 

15.9.3       If a Borrower ceases to be a Borrower under this Agreement in accordance with Clause 37.3 (Resignation of a Borrower), its Affiliate shall cease to have any rights under this Agreement or any Ancillary Document.

 

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

 

15.9.5       Any reference in this Agreement or any other Finance Document to a Borrower being under no obligations (whether actual or contingent) as a Borrower under such Finance Document shall be construed to include a reference to any Affiliate of a Borrower being under no obligations under any Finance Document or Ancillary Document.

 

15.10         Commitment amounts

 

Notwithstanding any other term of this Agreement, each Lender shall ensure that at all times its Commitment is not less than:-

 

15.10.1     its Ancillary Commitment; or

 

15.10.2     the Ancillary Commitment of its Affiliate.

 

15.11         Amendments and Waivers - Ancillary Facilities

 

No amendment or waiver of a term of any Ancillary Facility shall require the consent of any Finance Party other than the relevant Ancillary Lender unless such amendment or waiver itself relates to or gives rise to a matter which would require an amendment of or under this Agreement (including, for the avoidance of doubt, under this Clause 15).  In such a case, Clause 47 (Amendments and waivers) will apply.

 

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SECTION 4

 

REPAYMENT, PREPAYMENT AND CANCELLATION

 

16.             REPAYMENT

 

16.1           Repayment of Loans

 

16.1.1       Each Borrower which has drawn a Loan shall repay that Loan on the last day of its Interest Period.

 

16.1.2       Without prejudice to each Borrower’s obligation under Clause 16.1.1 above, if:

 

(a)              one or more Loans are to be made available to a Borrower:-

 

(i)               on the same day that a maturing Loan is due to be repaid by that Borrower;

 

(ii)              in whole or in part for the purpose of refinancing the maturing Loan; and

 

(b)              the proportion borne by each Lender’s participation in the maturing Loan to the amount of that maturing Loan is the same as the proportion borne by that Lender’s participation in the new Loan to the aggregate amount of those new Loans,

 

the aggregate amount of the new Loans shall , unless the Borrower notifies the Agent to the contrary in the relevant Utilisation Request, be treated as if applied in or towards repayment of the maturing Loan so that:-

 

(a)              if the amount of the maturing Loan exceeds the aggregate amount of the new Loans:-

 

(i)               the relevant Borrower will only be required to make a payment under Clause 41.1 in an amount in the relevant currency equal to that excess; and

 

(ii)              each Lender’s participation in the new Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender’s participation in the maturing Loan and that Lender will not be required to make a payment under Clause 41.1 in respect of its participation in the new Loans; and

 

(b)              if the amount of the maturing Loan is equal to or less than the aggregate amount of the new Loans:-

 

(i)               the relevant Borrower will not be required to make a payment under Clause 41.1; and

 

(ii)              each Lender will be required to make a payment under Clause 41.1 in respect of its participation in the new Loans only to the extent that its participation in the new Loans exceeds that Lender’s participation in the maturing Loan and the remainder of that Lender’s participation in the new Loans

 

56

 

shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender’s participation in the maturing Loan.

 

17.             ILLEGALITY, VOLUNTARY PREPAYMENT AND CANCELLATION

 

17.1           Illegality

 

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

 

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

 

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

 

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

 

17.2           Voluntary cancellation

 

The Company may, if it gives the Agent not less than 10 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount and an integral multiple, of £250,000) of the Available Facility.  Any cancellation under this Clause 17.2 shall reduce the Commitments of the Lenders rateably under the Facility.

 

17.3           Voluntary prepayment of Utilisations

 

A Borrower to which a Utilisation has been made may, if it or the Company gives the Agent not less than 5 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Utilisation (but if in part, being an amount that reduces the amount of the Utilisation by a minimum amount, and an integral multiple, of £250,000).

 

17.4           Right of cancellation and repayment in relation to a single Lender

 

17.4.1       If:-

 

(a)              any sum payable to any Lender by an Obligor is required to be increased under Clause 24.2.3; or

 

(b)              any Lender claims indemnification from the Company or an Obligor under Clause 24.3 (Tax indemnity) or Clause 25.1 (Increased costs),

 

the Company may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Utilisations.

 

57

 

17.4.2       On receipt of a notice referred to in Clause 17.4.1 above in relation to a Lender, the Commitment of that Lender shall immediately be reduced to zero.

 

17.4.3       On the last day of each Interest Period which ends after the Company has given notice under Clause 17.4.1 above in relation to a Lender (or, if earlier, the date specified by the Company in that notice), each Borrower to which a Utilisation is outstanding shall repay that Lender’s participation in that Utilisation together with all interest and other amounts accrued under the Finance Documents.

 

17.5           Right of cancellation in relation to a Defaulting Lender

 

17.5.1       If any Lender becomes a Defaulting Lender, the Parent or the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent 10 Business Days’ notice of cancellation of each Available Commitment of that Lender.

 

17.5.2       On the notice referred to in Clause 17.5.1 above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be reduced to zero.

 

17.5.3       The Agent shall as soon as practicable after receipt of a notice referred to in Clause 17.5.1 above, notify all the Lenders.

 

18.             MANDATORY PREPAYMENT

 

18.1           Exit

 

18.1.1       For the purpose of this Clause 18.1:-

 

	
“FCA”
    	
 
    	
means the Financial Conduct Authority acting in accordance with   Part 6 of the Financial Services and Markets Act 2000
    
	
 
    	
 
    	
 
    
	
“Flotation”
    	
 
    	
means:-

 

(a)           a successful application being made for the admission of any part of   the share capital of any member of the Group (or Holding Company of any   member of the Group) to the Official List maintained by the FCA and the   admission of any part of the share capital of any member of the Group (or   Holding Company of any member of the Group) to trading on the London Stock   Exchange plc or

 

(b)           the grant of permission to deal in any part of the issued share   capital of any member of the Group (or Holding Company of any member of the   Group) on the Alternative Investment Market or the Main Board or the Growth   Market of the ICAP Securities & Derivatives Exchange (ISDX) or on   any recognised investment exchange (as that term is used in the Financial   Services and Markets Act 2000) or in or on any exchange or market   replacing the same or any other exchange 
    

 

58

 

	
 
    	
 
    	
or market in any country
    

 

18.1.2       Upon the occurrence of:-

 

(a)              any Flotation; or

 

(b)              a Change of Control; or

 

(c)              the sale of all or substantially all of the assets of the Group whether in a single transaction or a series of related transactions,

 

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

 

19.             RESTRICTIONS

 

19.1           Notices of Cancellation or Prepayment

 

Any notice of cancellation, prepayment, authorisation or other election given by any Party under Clause 17 (Illegality, voluntary prepayment and cancellation) shall (subject to the terms of those Clauses) 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.

 

19.2           Interest and other amounts

 

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

 

19.3           Reborrowing of Facility

 

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

 

19.4           Prepayment in accordance with Agreement

 

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

 

19.5           No reinstatement of Commitments

 

Subject to Clause 11.2 (Increase), no amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

 

19.6           Agent’s receipt of Notices

 

If the Agent receives a notice under Clause 17 (Illegality, voluntary prepayment and cancellation) it shall promptly forward a copy of that notice or election to either the Company or the affected Lender, as appropriate.

 

59

 

19.7           Effect of Repayment and Prepayment on Commitments

 

If all or part of any Lender’s participation in a Utilisation under the Facility is repaid or prepaid and is not available for redrawing (other than by operation of Clause 13.2 (Further conditions precedent)), an amount of that Lender’s Commitments (equal to the amount of the participation which is repaid or prepaid) in respect of the Facility will be deemed to be cancelled on the date of repayment or prepayment.

 

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SECTION 5

 

COSTS OF UTILISATION

 

20.                                        INTEREST

 

20.1                                 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:-

 

20.1.1                      Margin; and

 

20.1.2                      LIBOR.

 

20.2                                 Payment of interest

 

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

 

20.2.2                      If the annual audited financial statements of the Group and related Compliance Certificate received by the Agent show that a higher Margin should have applied during a certain period, then the Company shall (or shall ensure the relevant Borrower shall) promptly pay to the Agent any amounts necessary to put the Agent and the Lenders in the position they would have been in had the appropriate rate of the Margin applied during such period.

 

20.3                                 Default interest

 

20.3.1                      If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to Clause 20.3.2 below, is 2.0 per cent per annum higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this Clause 20.3 shall be immediately payable by the Obligor on demand by the Agent.

 

20.3.2                      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 2.0 per cent per annum higher than the rate which would have applied if the overdue amount had not become due.

 

20.3.3                      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.

 

61

 

20.4                                 Notification of rates of interest

 

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

 

21.                                        INTEREST PERIODS

 

21.1                                 Selection of Interest Periods and Terms

 

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

 

21.1.2                      Subject to this Clause 21, a Borrower (or the Company) may select an Interest Period of one week or one, three or six months or any other period agreed between the Company and the Agent (acting on the instructions of all the Lenders in relation to the relevant Loan).

 

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

 

21.1.4                      A Loan has one Interest Period only.

 

21.2                                 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).

 

22.                                        CHANGES TO THE CALCULATION OF INTEREST

 

22.1                                 Absence of quotations

 

Subject to Clause 22.2 (Market disruption) if LIBOR is to be determined by reference to the Base Reference Banks but a Base Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Base Reference Banks.

 

22.2                                 Market disruption

 

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

 

(a)                                          the Margin; and

 

(b)                                          the rate notified to the Agent by that Lender as soon as practicable and in any event by close of business on the date falling two Business Days after the Quotation Day (or, if earlier, on the date falling two Business Days prior to the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select.

 

62

 

22.2.2                      If a Market Disruption Event occurs the Agent shall, as soon as is practicable, notify the Company.

 

22.2.3                      If:-

 

(a)                                          the percentage rate per annum notified by a Lender pursuant to Clause 22.2.1(b) above is less than LIBOR; or

 

(b)                                          a Lender has not notified the Agent of a percentage rate per annum pursuant to Clause 22.2.1(b) above,

 

the cost to that Lender of funding its participation in that Loan for that Interest Period shall be deemed, for the purposes of Clause 22.2.1 above, to be LIBOR.

 

22.2.4                      In this Agreement:-

 

	
“Market Disruption Event”
    	
 
    	
means:

 

(a)         at or about noon on the Quotation Day for the relevant Interest Period   LIBOR is to be determined by reference to the Base Reference Banks and none   or only one of the Base Reference Banks supplies a rate to the Agent to   determine LIBOR for the relevant currency and Interest Period or

 

(b)         before close of business in London on the Quotation Day for the   relevant Interest Period, the Agent receives notifications from a Lender or   Lenders (whose participations in a Loan exceed 35 per cent of that Loan)   that the cost to it of funding its participation in that Loan from whatever   source it may reasonably select would be in excess of LIBOR
    

 

22.3                                Alternative basis of interest or funding

 

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

 

22.3.2                      Any alternative basis agreed pursuant to Clause 22.3.1 above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties.

 

22.4                                 Break Costs

 

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

 

63

 

22.4.2                      Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

 

23.                                        FEES

 

23.1                                 Commitment fee

 

23.1.1                      The Company shall pay to the Agent (for the account of each Lender) a fee in Sterling computed at the rate of 35 per cent of the applicable Margin per annum on that Lender’s Available Commitment for the Availability Period.

 

23.1.2                      The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period, on the last day of the Availability Period and, if cancelled in full, on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective.

 

23.2                                 Arrangement fee

 

The Company shall pay to the Arrangers (for their own account) an arrangement fee in the amount and at the times agreed in a Fee Letter.

 

23.3                                 Agency fee

 

The Company shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

 

23.4                                 Security Agent fee

 

The Company shall pay to the Security Agent (for its own account) a security agent fee in the amount and at the times agreed in a Fee Letter.

 

23.5                                 Interest, commission and fees on Ancillary Facilities

 

The rate and time of payment of interest, commission, fees and any other remuneration in respect of each Ancillary Facility shall be determined by agreement between the relevant Ancillary Lender and the Borrower of that Ancillary Facility based upon normal market rates and terms (provided that the rate and time of payment of interest, commission, fees and any other remuneration in respect of the same-day access LIBOR facility referred to in clause 15.2.1 shall be on terms no more onerous than the Facility as at the Second Amendment and Restatement Date).

 

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SECTION 6

 

ADDITIONAL PAYMENT OBLIGATIONS

 

24.                                        TAX GROSS UP AND INDEMNITIES

 

24.1                                 Definitions

 

In this Agreement:-

 

	
“Borrower DTTP Filing”
    	
 
    	
means an HM Revenue & Customs’   Form DTTP2 duly completed and filed by the Borrower, which:

 

(a)                                 where it relates to   a Treaty Lender that is an Original Lender, contains the scheme reference   number and jurisdiction of tax residence stated opposite that Lender’s name   in Part 2 of Schedule 4 (The Original Parties)   and

 

(i)                                     where the Borrower   is an Original Borrower, is filed with HM Revenue & Customs; or

 

(ii)                                  where the Borrower   is an Additional Borrower, is filed with HM Revenue & Customs within   30 days of the date on which that Borrower becomes an Additional Borrower; or

 

(b)                                 where it relates to   a Treaty Lender that is a New Lender or an Increase Lender, contains the   scheme reference number and jurisdiction of tax residence stated in respect   of that Lender in the relevant Transfer Certificate or Assignment Agreement   or Increase Confirmation and

 

(i)                                     where the Borrower   is a Borrower as at the relevant Transfer Date (or date on which the increase   in Commitments described in the relevant Increase Confirmation takes effect)   is filed with HM Revenue & Customs within 30 days of that Transfer   Date (or date on which the increase in Commitments described in the relevant   Increase Confirmation takes effect); or

 

(ii)                                  where the Borrower   is not a Borrower as at the relevant Transfer Date (or date on which the   increase in Commitments described in the relevant Increase Confirmation takes   effect), is filed with HM Revenue & Customs within 30 days of the   date on which that Borrower becomes an Additional Borrower
    
	
 
    	
 
    	
 
    
	
“Protected Party”
    	
 
    	
means a Finance Party which is or will be subject to any liability or   required to make any payment for or on account of Tax in relation to a sum   received or receivable (or any sum deemed for the purposes of Tax to be   received or receivable) under a Finance Document
    

 

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“Qualifying Lender”
    	
 
    	
means:-

 

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

 

(i)                                     a Lender:-

 

(A)                               which is a bank (as defined for the purpose of section 879 of the   ITA) making an advance under a Finance Document and is within the charge to   United Kingdom corporation tax as respects any payments of interest made in   respect of that advance or would be within such charge as respects such   payments apart from section 18A of the CTA; or

 

(B)                               in respect of an advance made under a Finance Document by a person   that was a bank (as defined for the purpose of section 879 of the ITA)   at the time that that advance was made, and within the charge to United   Kingdom corporation tax as respects any payments of interest made in respect   of that advance;

 

(ii)                                  a Lender which is:-

 

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

 

(B)                               a partnership each member of which is:-

 

(1)                                 a company so resident in the United Kingdom or

 

(2)                                 a company not so resident in the United Kingdom which carries on a   trade in the United Kingdom through a permanent establishment and which   brings into account in computing its chargeable profits (within the meaning   of section 19 of the CTA) the whole of any share of interest payable in   respect of that advance that falls to it by reason of Part 17 of the CTA
    

 

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(C)                               a company not so resident in the United Kingdom which carries on a   trade in the United Kingdom through a permanent establishment and which   brings into account interest payable in respect of that advance in computing   the chargeable profits (within the meaning of section 19 of the CTA) of   that company or

 

(iii)                               a Treaty Lender or

 

(b)                                 a Lender which is a building society (as defined for the purposes of   section 880 of the ITA) making an advance under a Finance Document
    
	
 
    	
 
    	
 
    
	
“Tax Confirmation”
    	
 
    	
means a confirmation by a Lender that the person beneficially entitled   to interest payable to that Lender in respect of an advance under a Finance   Document is either:-

 

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

 

(b)                                 a partnership each member of which is:-

 

(i)                                     a company so resident in the United Kingdom or

 

(ii)                                  a company not so resident in the United Kingdom which carries on a   trade in the United Kingdom through a permanent establishment and which brings   into account in computing its chargeable profits (within the meaning of   section 19 of the CTA) the whole of any share of interest payable in   respect of that advance that falls to it by reason of Part 17 of the CTA   or

 

(c)                                  a company not so resident in the United Kingdom which carries on a   trade in the United Kingdom through a permanent establishment and which   brings into account interest payable in respect of that advance in computing   the chargeable profits (within the meaning of section 19 of the CTA) of   that company
    
	
 
    	
 
    	
 
    
	
“Tax Credit”
    	
 
    	
means a credit against, relief or remission for, or repayment of, any   Tax
    
	
 
    	
 
    	
 
    
	
“Tax Deduction”
    	
 
    	
means a deduction or withholding for or on account of Tax from a   payment under a Finance Document, other than a FATCA Deduction
    
	
 
    	
 
    	
 
    
	
“Tax Payment”
    	
 
    	
means either the increase in a payment made by an Obligor to a Finance   Party under Clause 24.2 (Tax gross-up)   or a payment under Clause 24.3 (Tax   indemnity)
    

 

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“Treaty Lender”
    	
 
    	
means a Lender which:-

 

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

 

(b)                                 does not carry on a business in the United Kingdom through a permanent   establishment with which that Lender’s participation in the Loan is   effectively connected
    
	
 
    	
 
    	
 
    
	
“Treaty State”
    	
 
    	
means a jurisdiction having a double taxation agreement (a “Treaty”) with the United Kingdom which   makes provision for full exemption from tax imposed by the United Kingdom on   interest
    
	
 
    	
 
    	
 
    
	
“UK Non-Bank Lender”
    	
 
    	
means:-

 

(a)                                 where a Lender becomes a Party on the day on which this Agreement is   entered into, a Lender listed in Part 3 of Schedule 4 (The Original Parties); and

 

(b)                                 where a Lender becomes a Party after the day on which this Agreement   is entered into, a Lender which gives a Tax Confirmation in the Assignment   Agreement or Transfer Certificate which it executes on becoming a Party
    

 

Unless a contrary indication appears, in this Clause 24 a reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination.

 

24.2                                 Tax gross-up

 

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

 

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

 

24.2.3                      If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

 

24.2.4                      A payment shall not be increased under Clause 24.2.3 above by reason of a Tax Deduction on account of Tax imposed by the United Kingdom, if on the date on which the payment falls due:-

 

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

 

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of) any law or Treaty or any published practice or published concession of any relevant taxing authority; or

 

(b)                                          the relevant Lender is a Qualifying Lender solely by virtue of sub-clause (a)(ii) of the definition of Qualifying Lender and:-

 

(i)                                              an officer of HM Revenue & Customs has given (and not revoked) a direction (a “Direction”) under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from the Company a certified copy of that Direction; and

 

(ii)                                           the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or

 

(c)                                           the relevant Lender is a Qualifying Lender solely by virtue of sub-clause (a)(ii) of the definition of Qualifying Lender and:-

 

(i)                                              the relevant Lender has not given a Tax Confirmation to the Company; and

 

(ii)                                           the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Company, on the basis that the Tax Confirmation would have enabled the Company to have formed a reasonable belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA; or

 

(d)                                          the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under Clauses 24.2.7  or 24.2.8 (as applicable) below.

 

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

 

24.2.6                      Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment a statement under section 975 of the ITA or other evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

24.2.7

 

(a)                                          Subject to paragraph (b) below, a Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

 

(b)

 

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(i)                                              A Treaty Lender which becomes a Party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence opposite its name in Part 2 of Schedule 4 (The Original Parties); and

 

(ii)                                           A New Lender or an Increase Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence in the Transfer Certificate, Assignment Agreement or Increase Confirmation which it executes,

 

and, having done so, that Lender shall be under no obligation pursuant to Clause 24.2.7(a) above.

 

24.2.8                      If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with Clause 24.2.7(b) above and:

 

(a)                                          the Borrower making a payment to that Lender has not made a Borrower DTTP Filing in respect of that Lender; or

 

(b)                                          the Borrower making a payment to that Lender has made a Borrower DTTP Filing in respect of that Lender but:

 

(i)                                              the Borrower DTTP Filing has been rejected by HM Revenue & Customs; or

 

(ii)                                           HM Revenue & Customs has not given the Borrower authority to make payments to that Lender without a Tax Deduction within 60 days of the date of the Borrower DTTP Filing,

 

and in each case, the Borrower has notified that Lender in writing, that Lender and the Borrower shall co-operate in completing any additional procedural formalities necessary for the Company to obtain authorisation to make that payment without a Tax Deduction.

 

24.2.9                      If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with Clause 24.2.7(b) above, no Obligor shall make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender’s Commitment(s) or its participation in any Loan unless the Lender otherwise agrees.

 

24.2.10               The Company shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Agent for delivery to the relevant Lender.

 

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

 

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

 

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24.3                                 Tax indemnity

 

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

 

24.3.2                      Clause 24.3.1 above shall not apply:-

 

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

 

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

 

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

 

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

 

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

 

(i)                                              is compensated for by an increased payment under Clause 24.2 (Tax gross-up);

 

(ii)                                           would have been compensated for by an increased payment under Clause 24.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in Clause 24.2.4 applied; or

 

(iii)                                        relates to a FATCA Deduction required to be made by a Party.

 

24.3.3                      A Protected Party making, or intending to make a claim under Clause 24.3.1 above shall promptly notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the Company.

 

24.3.4                      A Protected Party shall, on receiving a payment from an Obligor under this Clause 24.3, notify the Agent.

 

24.4                                 Tax Credit

 

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:-

 

24.4.1                      a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and

 

24.4.2                      that Finance Party has obtained and utilised that Tax Credit,

 

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

 

24.5                                 Lender Status Confirmation

 

Each Lender which becomes a Party to this Agreement after the date of this Agreement shall indicate, in the Transfer Certificate, Assignment Agreement or Increase Confirmation which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it falls in:-

 

24.5.1                      not a Qualifying Lender;

 

24.5.2                      a Qualifying Lender (other than a Treaty Lender); or

 

24.5.3                      a Treaty Lender.

 

If a New Lender or Increase Lender fails to indicate its status in accordance with this Clause 24.5 then such New Lender or Increase Lender shall be treated for the purposes of this Agreement (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Company).  For the avoidance of doubt, a Transfer Certificate, Assignment Agreement or Increase Confirmation shall not be invalidated by any failure of a Lender to comply with this Clause 24.5.

 

24.6                                 Stamp taxes

 

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

 

24.7                                 VAT

 

24.7.1                      All amounts expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to Clause 24.7.2 below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document and such Finance Party is required to account to the relevant tax authority for the VAT, that Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice to that Party).

 

24.7.2                      If VAT is or becomes chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the “Recipient”) under a Finance Document, and any Party other than the Recipient (the “Relevant Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

 

(a)                                          (where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where

 

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this Clause 24.7.2(a) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

 

(b)                                          (where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

 

24.7.3                      Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

 

24.7.4                      Any reference in this Clause 24.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term “representative member” to have the same meaning as in the Value Added Tax Act 1994).

 

24.7.5                      In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party’s VAT registration and such other information as is reasonably requested in connection with such Finance Party’s VAT reporting requirements in relation to such supply.

 

24.8                                 FATCA Information

 

24.8.1                      Subject to Clause 24.8.3 below, each Party shall, within ten Business Days of a reasonable request by another Party:

 

(a)                                          confirm to that other Party whether it is:

 

(i)                                              a FATCA Exempt Party; or

 

(ii)                                           not a FATCA Exempt Party;

 

(b)                                          supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA; and

 

(c)                                           supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party’s compliance with any other law, regulation, or exchange of information regime.

 

24.8.2                      If a Party confirms to another Party pursuant to Clause 24.8.1(a) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

 

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24.8.3                      Clause24.8.1 above shall not oblige any Finance Party to do anything, and Clause 24.8.1(c) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

 

(a)                                          any law or regulation;

 

(b)                                          any fiduciary duty; or

 

(c)                                           any duty of confidentiality.

 

24.8.4                      If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with Clauses 24.8.1(a) or 24.8.1(b) (including, for the avoidance of doubt, where Clause 24.8.3 above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

 

24.9                                 FATCA Deduction

 

24.9.1                      Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

24.9.2                      Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Company and the Agent and the Agent shall notify the other Finance Parties.

 

25.                                        INCREASED COSTS

 

25.1                                 Increased costs

 

25.1.1                      Subject to Clause 25.3 (Exceptions) the Company shall, within three Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation, (ii) compliance with any law or regulation made after the date of this Agreement, or (iii) the implementation or application of or compliance with Basel III or CRD IV or any other law or regulation which implements Basel III or CRD IV (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates).

 

25.1.2                      In this Agreement:-

 

(a)                                          “Basel III” means:

 

(i)                                              the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk

 

74

 

measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

 

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

 

(iii)                                        any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”.

 

(b)                                          “CRD IV” means:

 

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

 

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

 

(c)                                           “Increased Costs” means:-

 

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

 

(ii)                                           an additional or increased cost; or

 

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

 

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

 

25.2                                 Increased cost claims

 

25.2.1                      A Finance Party intending to make a claim pursuant to Clause 25.1 (Increased Costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Company.

 

25.2.2                      Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs.

 

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25.3                                 Exceptions

 

25.3.1                      Clause 25.1 (Increased Costs) does not apply to the extent any Increased Cost is:-

 

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

 

(b)                                          attributable to a FATCA Deduction required to be made by a Party;

 

(c)                                           compensated for by Clause 24.3 (Tax indemnity) (or would have been compensated for under Clause 24.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in Clause 24.3.2 applied); or

 

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

 

25.3.2                      In this Clause 25.3 reference to a “Tax Deduction” has the same meaning given to the term in Clause 24.1 (Definitions).

 

26.                                        OTHER INDEMNITIES

 

26.1                                 Currency indemnity

 

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

 

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

 

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

 

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

 

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

 

26.2                                 Other indemnities

 

26.2.1                      The Company shall (or shall procure that an Obligor will), within three Business Days of demand, indemnify the Arranger and each other Secured Party against any cost, loss or liability incurred by it as a result of:-

 

(a)                                          the occurrence of any Event of Default;

 

76

 

(b)                                          a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 40 (Sharing among the Finance Parties);

 

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

 

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

 

26.3                                 Indemnity to the Agent

 

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

 

26.3.1                      investigating any event which it reasonably believes is a Default;

 

26.3.2                      acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised; or

 

26.3.3                      instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement; and

 

26.3.4                      any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 41.11 (Disruption to Payment Systems etc) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents.

 

26.4                                 Indemnity to the Security Agent

 

26.4.1                      Each Obligor jointly and severally shall promptly indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them as a result of:-

 

(a)                                          any failure by the Borrower to comply with its obligations under Clause 28 (Costs and expenses);

 

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

 

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

 

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

 

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(e)                                           any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents; or

 

(f)                                            acting as Security Agent, Receiver or Delegate under the Finance Documents or which otherwise relates to any of the Charged Property (otherwise, in each case, than by reason of the relevant Security Agent’s, Receiver’s or Delegate’s gross negligence or wilful misconduct).

 

26.4.2                      Each Obligor expressly acknowledges and agrees that the continuation of its indemnity obligations under this Clause 26.4 will not be prejudiced by any release or disposal under the Intercreditor Agreement taking into account the operation of the provisions of that agreement.

 

26.4.3                      The Security Agent and every Receiver and Delegate may, in priority to any payment to the Secured Parties, indemnify itself out of the Charged Property in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 26.4 and shall have a lien on the Transaction Security and the proceeds of the enforcement of the Transaction Security for all monies payable to it.

 

27.                                        MITIGATION BY THE LENDERS

 

27.1                                 Mitigation

 

27.1.1                      Each Finance Party shall, in consultation with the Company, take all reasonable steps to mitigate any circumstances which arise and which would result in the Facility ceasing to be available or any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 17.1 (Illegality), Clause 24 (Tax gross-up and indemnities) or Clause 25 (Increased Costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

27.1.2                      Clause 27.1.1 above does not in any way limit the obligations of any Obligor under the Finance Documents.

 

27.2                                 Limitation of liability

 

27.2.1                      The Company shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 27.1 (Mitigation).

 

27.2.2                      A Finance Party is not obliged to take any steps under Clause 27.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

 

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28.                                        COSTS AND EXPENSES

 

28.1                                 Transaction expenses

 

The Company shall promptly on demand pay the Agent, the Arranger and the Security Agent the amount of all costs and expenses (including legal fees) reasonably incurred by any of them (and, in the case of the Security Agent, by any Receiver or Delegate) in connection with the negotiation, preparation, printing, execution, syndication and perfection of:-

 

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

 

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

 

28.2                                 Amendment costs

 

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 41.10 (Change of currency), the Company shall, within three Business Days of demand, reimburse each of the Agent and the Security Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by the Agent and the Security Agent (and, in the case of the Security Agent, by any Receiver or Delegate) in responding to, evaluating, negotiating or complying with that request or requirement.

 

28.3                                 Security Agent’s ongoing costs

 

28.3.1                      Any amount payable to the Security Agent under Clause 26.4 (Indemnity to the Security Agent) and this Clause 28 shall include the properly incurred cost of utilising the Security Agent’s management time or other reasonable and appropriate resources and will be calculated on the basis of such reasonable daily or hourly rates as the Security Agent may notify to the Borrower and the Lenders, and is in addition to any other fee paid or payable to the Security Agent.

 

28.3.2                      Without prejudice to Clause 28.3.1 above, in the event of:

 

(a)                                          a Default;

 

(b)                                          the Security Agent considering it necessary (acting reasonably);

 

(c)                                           the Security Agent being requested by an Obligor or the Majority Lenders to undertake duties which the Security Agent and the Company agree to be of an exceptional nature or outside the scope of the normal duties of the Security Agent under the Finance Documents; or

 

(d)                                          the Security Agent and the Company agreeing that it is otherwise appropriate in the circumstances,

 

the Company shall pay to the Security Agent any additional remuneration that may be agreed between them or determined pursuant to Clause 28.3.3 below.

 

28.3.3                      If the Security Agent and the Company fail to agree upon the nature of the duties or upon the additional remuneration referred to in Clause 28.3.2 above or

 

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whether additional remuneration is appropriate in the circumstances, any dispute shall be determined by an investment bank (acting as an expert and not as an arbitrator) selected by the Security Agent and approved by the Company or, failing approval, nominated (on the application of the Security Agent) by the President for the time being of the Law Society of England and Wales (the costs of the nomination and of the investment bank being payable by the Company) and the determination of any investment bank shall be final and binding upon the parties to this Agreement.

 

28.4                                 Enforcement and preservation costs

 

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

 

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SECTION 7

 

GUARANTEE

 

29.                                        GUARANTEE AND INDEMNITY

 

29.1                                 Guarantee and indemnity

 

Each Guarantor irrevocably and unconditionally jointly and severally:-

 

29.1.1                      guarantees to each Finance Party punctual performance by each other Obligor of all that Obligor’s obligations under the Finance Documents;

 

29.1.2                      undertakes with each Finance Party that whenever another Obligor does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and

 

29.1.3                      agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of an Obligor not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 29 if the amount claimed had been recoverable on the basis of a guarantee.

 

29.2                                 Continuing Guarantee

 

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.

 

29.3                                 Reinstatement

 

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 29 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

 

29.4                                 Waiver of defences

 

The obligations of each Guarantor under this Clause 29 will not be affected by an act, omission, matter or thing which, but for this Clause 29, would reduce, release or prejudice any of its obligations under this Clause 29 (without limitation and whether or not known to it or any Finance Party) including:-

 

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

 

29.4.2                      the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

 

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29.4.3                      the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

 

29.4.4                      any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person;

 

29.4.5                      any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of a Finance Document or any other document or security including, without limitation, any change in the purpose of, any extension of or increase in any facility or the addition of any new facility under any Finance Document or other document or security;

 

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

 

29.4.7                      any insolvency or similar proceedings.

 

29.5                                 Guarantor Intent

 

Without prejudice to the generality of Clause 29.4 (Waiver of Defences), each Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing.

 

29.6                                 Immediate recourse

 

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 29.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

 

29.7                                 Appropriations

 

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

 

29.7.1                      refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and

 

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29.7.2                      hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this Clause 29.

 

29.8                                 Deferral of Guarantors’ rights

 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 29:-

 

29.8.1                      to be indemnified by an Obligor;

 

29.8.2                      to claim any contribution from any other guarantor of any Obligor’s obligations under the Finance Documents;

 

29.8.3                      to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

 

29.8.4                      to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under Clause 29.1 (Guarantee and Indemnity);

 

29.8.5                      to exercise any right of set-off against any Obligor; and/or

 

29.8.6                      to claim or prove as a creditor of any Obligor in competition with any Finance Party.

 

If a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust for the Finance Parties and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with Clause 41 (Payment mechanics).

 

29.9                                 Release of Guarantors’ right of contribution

 

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

 

29.9.1                      that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Finance Documents; and

 

29.9.2                      each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Finance Documents to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Finance Document or of any other security taken pursuant to, or in connection with, any Finance Document where

 

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such rights or security are granted by or in relation to the assets of the Retiring Guarantor.

 

29.10                          Additional security

 

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

 

29.11                          Guarantee Limitations

 

This guarantee does not apply to any liability to the extent that it would result in this guarantee constituting unlawful financial assistance within the meaning of sections 678 or 679 of the Companies Act 2006 or any equivalent and applicable provisions under the laws of the Original Jurisdiction of the relevant Guarantor and, with respect to any Additional Guarantor, is subject to any limitations set out in the Accession Deed applicable to such Additional Guarantor.

 

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SECTION 8

 

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

 

30.                                        REPRESENTATIONS

 

30.1                                 General

 

Each Obligor makes the representations and warranties set out in this Clause 30 to each Finance Party.

 

30.2                                 Status

 

30.2.1                      It and each of its Subsidiaries is a limited liability corporation, duly incorporated and validly existing under the law of its Original Jurisdiction.

 

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

 

30.3                                 Binding obligations

 

Subject to the Legal Reservations:-

 

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

 

30.3.2                      (without limiting the generality of Clause 30.3.1 above), each Transaction Security Document to which it is a party creates the security interests which that Transaction Security Document purports to create and those security interests are valid and effective.

 

30.4                                 Non-conflict with other obligations

 

The entry into and performance by it of, and the transactions contemplated by, the Finance Documents and the granting of the Transaction Security pursuant to the Agreed Security Principles do not and will not conflict with:-

 

30.4.1                      any law or regulation applicable to it;

 

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

 

30.4.3                      (any agreement or instrument binding upon it or any member of the Group or any of its or any member of the Group’s assets or constitute a default or termination event (however described) under any such agreement or instrument which has or is reasonably likely to have a Material Adverse Effect.

 

30.5                                 Power and authority

 

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

 

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

 

30.6                                 Validity and admissibility in evidence

 

30.6.1                      All Authorisations required:-

 

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

 

(b)                                          to make the Finance Documents to which it is a party admissible in evidence in its Relevant Jurisdictions,

 

have been obtained or effected and are in full force and effect except any Authorisation referred to in Clause 30.9 (No filing or stamp taxes), which Authorisations will be promptly obtained or effected after the date of this Agreement.

 

30.6.2                      All Authorisations necessary for the conduct of the business, trade and ordinary activities of members of the Group have been obtained or effected and are in full force and effect if failure to obtain or effect those Authorisations has or is reasonably likely to have a Material Adverse Effect.

 

30.7                                 Governing law and enforcement

 

30.7.1                      Subject to the Legal Reservations, the choice of governing law of the Finance Documents will be recognised and enforced in its Relevant Jurisdictions.

 

30.7.2                      Subject to the Legal Reservations, any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in its Relevant Jurisdictions.

 

30.8                                 Insolvency

 

No:-

 

30.8.1                      corporate action, legal proceeding or other procedure or step described in Clause 34.7.1; or

 

30.8.2                      creditors’ process described in Clause 34.8 (Creditors’ process),

 

is being taken or, to the knowledge of the Parent or the Company, is threatened in writing in relation to the Parent or a member of the Group; and none of the circumstances described in Clause 34.6 (Insolvency) applies to the Parent or a member of the Group.

 

30.9                                 No filing or stamp taxes

 

Under the laws of its Relevant Jurisdiction it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except registration of particulars of the Transaction Security Documents at the Companies Registration Office in England and Wales under section 859A of the Companies Act 2006

 

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and payment of associated fees which registrations, filings, taxes and fees will be made and paid promptly after the date of the relevant Finance Document.

 

30.10                          Deduction of Tax

 

It is not required to make any deduction for or on account of Tax from any payment it may make under any Finance Document to a Lender which is:-

 

30.10.1               a Qualifying Lender:-

 

(a)                                          falling within paragraph (a)(i) of the definition of Qualifying Lender; or

 

(b)                                          except where a Direction has been given under section 931 of the ITA in relation to the payment concerned, falling within paragraph (a)(ii) of the definition of Qualifying Lender; or

 

(c)                                           falling within paragraph (b) of the definition of Qualifying Lender;  or

 

30.10.2               a Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue & Customs under Regulation 2 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

 

30.11                          No default

 

30.11.1               No Event of Default and, on the date of this Agreement, no Default is continuing or will result from the making of any Utilisation or the entry into, the performance of, or any transaction contemplated by, any Finance Document.

 

30.11.2               No other event or circumstance is outstanding which constitutes (or, with the expiry of a grace period, the giving of notice, the making of any determination or any combination of any of the foregoing, would constitute) a default or termination event (however described) under any other agreement or instrument which is binding on it or any Material Company or to which its (or any Material Company’s) assets are subject,

 

which in each case has or is reasonably likely to have a Material Adverse Effect.

 

30.12                          No misleading information

 

Save as disclosed in writing to the Agent and the Arranger prior to the date of this Agreement:-

 

30.12.1               all material information provided to a Finance Party by or on behalf of the Parent or the Company in connection with this Agreement and the provision of the Facility and/or the Group on or before the date of this Agreement and not superseded before that date is accurate and not misleading in any material respect and all projections provided to any Finance Party on or before the date of this Agreement have been prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied; and

 

30.12.2               all other written information provided by the Parent or any member of the Group (including its advisers) to a Finance Party was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any material respect.

 

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30.13                          Original Financial Statements

 

30.13.1               Its Original Financial Statements were prepared in accordance with the Accounting Principles consistently applied unless expressly disclosed to the Agent in writing to the contrary.  However in the case of monthly and quarterly statements, normal year end adjustments were not made.

 

30.13.2               Its unaudited Original Financial Statements fairly represent its financial condition and results of operations (consolidated in the case of each of the target companies described in paragraph (a) of the definition of Permitted Acquisition) for the relevant month or financial quarter.

 

30.13.3               Its audited Original Financial Statements give a true and fair view of its financial condition and results of operations (consolidated in the case of each of the target companies described in paragraph (a) of the definition of Permitted Acquisition) during the relevant Financial Year.

 

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

 

30.13.5               The Original Financial Statements of the Company (and each of the target companies described in paragraph (a) of the definition of Permitted Acquisition) do not consolidate the results, assets or liabilities of any person or business which does not form part of the Group or the group of companies formed of the target companies described in paragraph (a) of the definition of Permitted Acquisition and each of their Subsidiaries (as applicable).

 

30.13.6               Its most recent financial statements delivered pursuant to Clause 31.1 (Financial Statements):-

 

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

 

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

 

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

 

30.13.8               Since the date of the most recent financial statements delivered pursuant to Clause 31.1 (Financial Statements) there has been no material adverse change in the business, assets or financial condition of the Group.

 

30.14                          No proceedings pending or threatened

 

No litigation, arbitration or administrative proceedings or investigations of, or before, any court, arbitral body or agency which, if adversely determined, are reasonably likely to have a Material Adverse Effect have (to the best of its knowledge and belief (having made due and careful enquiry)) been started and are ongoing or threatened in writing against it or any of its Subsidiaries.

 

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30.15                          Anti-corruption law

 

Each member of the Group has conducted its business in compliance with applicable anti-corruption laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

 

30.16                          No breach of laws

 

30.16.1               It has not (and none of its Subsidiaries has) breached any law or regulation which breach has or is reasonably likely to have a Material Adverse Effect.

 

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

 

30.17                          Environmental laws

 

30.17.1               The Parent and each member of the Group is in compliance with Clause 33.3 (Environmental compliance) and to the best of its knowledge and belief (having made due and careful enquiry) no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or is reasonably likely to have a Material Adverse Effect.

 

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

 

30.18                          Taxation

 

30.18.1               It is not (and none of its Subsidiaries is) materially overdue in the filing of any Tax returns and it is not (and none of its Subsidiaries is) overdue in the payment of any amount in respect of Tax of £500,000 (or its equivalent in any other currency) or more unless such payment is being contested in good faith and is adequately reserved against in accordance with the Accounting Principles.

 

30.18.2               Save for claims being contested in good faith and which have been adequately reserved against (in accordance with the Accounting Principles) no claims or investigations are being, or are reasonably likely to be, made or conducted against it (or any of its Subsidiaries) with respect to Taxes such that a liability of, or claim against, any member of the Group of £250,000 (or its equivalent in any other currency) or more is reasonably likely to arise.

 

30.18.3               It is resident for Tax purposes only in its Original Jurisdiction.

 

30.19                          Security and Financial Indebtedness

 

30.19.1               No Security or Quasi-Security exists over:

 

(a)                                          all or any of the present or future assets of any member of the Group; or

 

(b)                                          any of the shares owned by the Parent in the Company,

 

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other than as permitted by this Agreement.

 

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

 

30.20                          Ranking

 

Subject to the terms of the Vehicle Financier Deeds of Priority, the Transaction Security has or will have first ranking priority and it is not subject to any prior ranking or pari passu ranking Security other than Permitted Security.

 

30.21                          Good title to assets

 

It and each of its Subsidiaries has a good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business as presently conducted in all material respects (save for certain motor vehicles and diagnostic equipment which are subject to retention of title provisions and which the relevant member of the Group has the appropriate Authorisations to use).

 

30.22                         Legal and beneficial ownership

 

It and each of its Subsidiaries is the sole legal and beneficial owner of the respective assets over which it purports to grant Security under the Transaction Security Documents.

 

30.23                          Shares

 

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

 

30.24                          Intellectual Property

 

It and each of its Subsidiaries:-

 

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

 

30.24.2               does not (nor does any of its Subsidiaries), in carrying on its businesses, infringe any Intellectual Property of any third party in any respect in each case where failure to do so would have or be reasonably likely to have a Material Adverse Effect; and

 

30.24.3               has taken all formal or procedural actions (including payment of fees) required to maintain any material Intellectual Property owned by it.

 

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30.25                          Group Structure Chart

 

30.25.1               The Group Structure Chart delivered to the Agent pursuant to Part 1 of Schedule 5 (Conditions Precedent) is true, complete and accurate in all material respects and shows the following information:-

 

(a)                                          the Parent and each member of the Group, including current name and company registration number, its Original Jurisdiction (in the case of an Obligor), its jurisdiction of incorporation (in the case of a member of the Group which is not an Obligor) and/or its jurisdiction of establishment, a list of shareholders and indicating whether a company is a Dormant Subsidiary or is not a company with limited liability; and

 

(b)                                          all minority interests in any member of the Group and any person in which the Parent or any member of the Group holds shares in its issued share capital or equivalent ownership interest of such person.

 

30.26                          Obligors

 

30.26.1               Each Material Company is or will be an Obligor on the Closing Date.

 

30.26.2               The aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA (as defined in Clause 32 (Financial Covenants)) and the aggregate gross assets, the aggregate net assets and the aggregate turnover of the Guarantors (other than the Parent) on the Closing Date (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 90% of Consolidated EBITDA, as defined in Clause 32 (Financial Covenants) and the consolidated gross assets, net assets and turnover of the Group.

 

30.27                          Accounting Reference Date

 

The Accounting Reference Date of the Parent and each member of the Group is 31 December.

 

30.28                          Centre of main interests and establishments

 

For the purposes of The Council of the European Union Regulation No 1346/2000 on Insolvency Proceedings (the “Regulation”), its centre of main interest (as that term is used in Article 3(1) of the Regulation) is situated in England and Wales or Northern Ireland for the Northern Irish Obligors and it has no “establishment” (as that term is used in Article 2(h) of the Regulations) in any other jurisdiction.

 

30.29                          Pensions

 

Except for the DB Schemes:-

 

30.29.1               neither it nor any of its Subsidiaries is or has at any time been an employer (for the purposes of sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pensions Schemes Act 1993); and

 

30.29.2               so far as the Company is aware (having made due and diligent enquiries), neither it nor any of its Subsidiaries is or has at any time been “connected” with

 

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or an “associate” of (as those terms are used in sections 38 and 43 of the Pensions Act 2004) such an employer.

 

30.30                          No adverse consequences

 

30.30.1               It is not necessary under the laws of its Relevant Jurisdictions:-

 

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

 

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

 

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

 

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

 

30.31                          Times when representations made

 

30.31.1               All the representations and warranties in this Clause 30 are made by each Original Obligor on the date of this Agreement.

 

30.31.2               All the representations and warranties in this Clause 30 are deemed to be made by each Obligor on the Closing Date.

 

30.31.3               The Repeating Representations are deemed to be made by each Obligor on the date of each Utilisation Request, on each Utilisation Date and on the first day of each Interest Period (except that those contained in Clauses 30.13.1 — 30.13.5 will cease to be so made once subsequent financial statements have been delivered under this Agreement).

 

30.31.4               All the representations and warranties in this Clause 30 except Clause 30.12 (No misleading information) and Clause 30.25 (Group Structure Chart) are deemed to be made by each Additional Obligor on the day on which it becomes (or it is proposed that it becomes) an Additional Obligor with respect to itself and (if applicable) its Subsidiaries.

 

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

 

31.                                        INFORMATION UNDERTAKINGS

 

The undertakings in this Clause 31 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.

 

In this Clause 31:-

 

	
“Annual Financial Statements”
    	
means the financial statements for a Financial 
    

 

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Year delivered pursuant to Clause 31.1.1
    
	
 
    	
 
    
	
“Monthly Financial Statements”
    	
means the financial statements delivered pursuant to   Clause 31.1.3
    
	
 
    	
 
    
	
“Quarterly Financial Statements”
    	
means the financial statements delivered pursuant to   Clause 31.1.2
    

 

31.1                                 Financial statements

 

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

 

31.1.1                      as soon as they are available, but in any event within 270 days after the end of each of its Financial Years:-

 

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

 

(b)                                          the audited financial statements (consolidated if appropriate) of each Obligor for that Financial Year;

 

31.1.2                      as soon as they are available, but in any event within 30 days after the end of each Financial Quarter of each of its Financial Years its consolidated financial statements for that Financial Quarter; and

 

31.1.3                      as soon as they are available, but in any event within 30 days after the end of each month its financial statements on a consolidated basis for that month (to include cumulative management accounts for the Financial Year to date).

 

31.2                                 Provision and contents of Compliance Certificate

 

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

 

31.2.2                      The Compliance Certificate shall, amongst other things, set out (in reasonable detail) computations as to compliance with Clause 32 (Financial Covenants).

 

31.2.3                      Each Compliance Certificate shall be signed by two directors (one of whom shall be the finance director) of the Company and two directors (one of whom shall be the finance director) of the Parent and, if required by the Agent (acting on the instructions of the Majority Lenders) following the occurrence of a Default which is continuing each Compliance Certificate to be delivered with the consolidated Annual Financial Statements of the Company, shall be reported on by the Company’s Auditors in the form agreed by the Company and the Majority Lenders.

 

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31.3                                 Requirements as to financial statements

 

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

 

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

 

(b)                                          each set of Monthly Financial Statements is in a format acceptable to each Lender; and

 

(c)                                           the Monthly Financial Statements delivered at, or around, the same time as the Annual Financial Statements shall include a reconciliation between those Monthly Financial Statements and the Annual Financial Statements.

 

31.3.2                      Each set of financial statements delivered pursuant to Clause 31.1 (Financial statements):-

 

(a)                                          shall be certified by a director of the relevant company as giving a true and fair view of (in the case of Annual Financial Statements for any Financial Year), or fairly representing (in other cases), its financial condition and operations as at the date as at which those financial statements were drawn up and, in the case of the Annual Financial Statements, shall be accompanied by any letter addressed to the management of the relevant company by the auditors of those Annual Financial Statements and accompanying those Annual Financial Statements;

 

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

 

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

 

(ii)                                           the actual performance for the corresponding period in the preceding Financial Year of the Group; and

 

(c)                                           shall be prepared using the Accounting Principles, accounting practices and financial reference periods consistent with those applied in the case of any Obligor, in the preparation of the Original Financial Statements for that Obligor,

 

unless, in relation to any set of financial statements, the Company notifies the Agent that there has been a change in the Accounting Principles or the accounting practices and the Company’s Auditors (or, if appropriate, the auditors of the Obligor) deliver to the Agent:-

 

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

 

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(ii)                                           sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause 32 (Financial covenants) has been complied with, to determine the Margin as set out in the definition of “Margin” and to make an accurate comparison between the financial position indicated in those financial statements and that Obligor’s Original Financial Statements.

 

Any reference in this Agreement to any financial statements shall be construed as a reference to those financial statements as adjusted to reflect the Accounting Principles applied in the preparation of the Original Financial Statements.

 

(d)                                          Notwithstanding any other term of this Agreement no Event of Default shall occur, or be deemed to occur, as a result of any restriction on the identity of the Company’s Auditors contained in this Agreement being prohibited, unlawful, ineffective, invalid or unenforceable pursuant to the Audit Laws.

 

31.4                                 Budget

 

31.4.1                      The Company shall supply to the Agent in sufficient copies for all the Lenders, as soon as the same become available but in any event within 30 days after the start of each of its Financial Years, an annual Budget for that Financial Year.

 

31.4.2                      The Company shall ensure that each Budget:-

 

(a)                                          is in a form reasonably acceptable to the Agent and includes a projected consolidated profit and loss, balance sheet and cashflow statement for the Group, projected financial covenant calculations and such other information requested by each Lender (acting reasonably)

 

(b)                                          is prepared in accordance with the Accounting Principles and the accounting practices and financial reference periods applied to financial statements under Clause 31.1 (Financial statements); and

 

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

 

31.4.3                      If the Company updates or changes the Budget, it shall promptly deliver to the Agent, in sufficient copies for each of the Lenders, such updated or changed Budget together with a written explanation of the main changes in that Budget.

 

31.5                                 Group companies

 

At the request of the Agent, the Company shall supply to the Agent a report signed by two directors of the Company stating which of its Subsidiaries are Material Companies and confirming that the aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA, as defined in Clause 32 (Financial Covenants) and the aggregate gross assets, aggregate net assets and aggregate turnover of the Guarantors (other than the Parent) (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 90% of Consolidated EBITDA (as defined in Clause 32 (Financial Covenants)) and the consolidated gross assets, net assets and turnover of the Group.

 

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31.6                                 Presentations

 

If requested to do so by the Agent if the Agent reasonably suspects a Default is continuing or may have occurred or may occur, at least two directors of the Parent (one of whom shall be the chief financial officer) must give a presentation to the Finance Parties about the on-going business and financial performance of the Group.

 

31.7                                 Year-end

 

The Company shall procure that each Financial Year-end of each member of the Group falls on 31 December.

 

31.8                                 Information: miscellaneous

 

The Company shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):-

 

31.8.1                      promptly following the same being dispatched, copies of all documents required to be dispatched by the Company to its shareholders generally (or any class of them) or dispatched by the Company or any Obligors to its creditors generally (or any class of them);

 

31.8.2                      promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which, if adversely determined, are reasonably likely to have a Material Adverse Effect;

 

31.8.3                      promptly, such information as the Security Agent may reasonably require about the Charged Property and compliance of the Obligors with the terms of any Transaction Security Documents; and

 

31.8.4                      promptly on reasonable request, such further information regarding the financial condition, assets and operations of the Group and/or any member of the Group (including any requested amplification or explanation of any item in the financial statements, budgets or other material provided by any Obligor under this Agreement, any changes to management of the Group and an up to date copy of its shareholders’ register (or equivalent in its Original Jurisdiction)) as any Finance Party through the Agent may reasonably request.

 

31.9                                 Notification of default

 

31.9.1                      Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor).

 

31.9.2                      Promptly upon a request by the Agent (acting reasonably), the Company shall supply to the Agent 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).

 

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31.10                          “Know your customer” checks

 

31.10.1               If:-

 

(a)                                          the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

 

(b)                                          any change in the status of an Obligor or the composition of the shareholders of an Obligor after the date of this Agreement; or

 

(c)                                           a proposed assignment or transfer by a Lender of any of its rights and/or obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

 

obliges the Agent or any Lender (or, in the case of sub-clause (c) above, any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in sub-clause (c) above, on behalf of any prospective new Lender) in order for the Agent, such Lender or, in the case of the event described in sub-clause (c) 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.

 

31.10.2               Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied 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.

 

31.10.3               The Company shall, by not less than 10 Business Days’ prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Obligor pursuant to Clause 37 (Changes to the Obligors).

 

31.10.4               Following the giving of any notice pursuant to Clause 31.10.3 above, if the accession of such Additional Obligor obliges the Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the accession of such Subsidiary to this Agreement as an Additional Obligor.

 

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31.11                          Parent’s financial statements

 

If the Company intends to make a Permitted Distribution or any Permitted Loan falling within paragraph (h) of the definition of “Permitted Loan” in any Financial Year:-

 

31.11.1               the Parent shall, at least 10 Business Days before making any Permitted Distribution or loan falling within paragraph (h) of the definition of “Permitted Loan”, supply to the Agent in sufficient copies for all the Lenders the audited consolidated financial statements of the Parent (prepared by the auditors of the Parent using generally accepted accounting principles in the United States of America for the purposes of reporting to the auditors of PAG) for the previous financial year of the Parent; and

 

31.11.2               the Company shall, at least 10 Business Days before making any Permitted Distribution or loan falling within paragraph (h) of the definition of “Permitted Loan”, supply to the Agent in sufficient copies for all the Lenders, the US GAAP Reconciliation Statement.

 

32.                                        FINANCIAL COVENANTS

 

32.1                                 Financial definitions

 

In this Agreement:-

 

	
“Capital Expenditure”
    	
 
    	
means, in respect of any Relevant Period, any amount paid to acquire   tangible fixed assets where such expenditure is capitalised on the balance   sheet of the Group but excluding:

 

(a)                                 net proceeds received from sale and leaseback transactions

 

(b)                                 rental payments in respect of Finance Leases;

 

(c)                                  fixed assets acquired through the acquisition of a business and

 

(d)                                 maintenance payments which are charged to the profit and loss account
    
	
 
    	
 
    	
 
    
	
“Consolidated Borrowing Costs”
    	
 
    	
means, in respect of any Relevant Period, the aggregate of all   interest, commission, fees and charges payable by the Group in respect of its   Consolidated Gross Borrowings in respect of such Relevant Period including,   without limitation:

 

(a)                                 capitalised interest

 

(b)                                 Finance Lease charges

 

(c)                                  dividends on shares issued on the basis that they are or may become   redeemable,

 

but excluding interest payable by Affiliates and Joint 
    

 

98

 

	
 
    	
 
    	
Ventures
    
	
 
    	
 
    	
 
    
	
“Consolidated EBIT”
    	
 
    	
means, in respect of any Relevant Period, the consolidated profit/loss   of the Group on ordinary activities before taxation and after exceptional   items but after adding back:-

 

(a)                                 exceptional losses charged below operating profit

 

(b)                                 Consolidated Borrowing Costs (net of capitalised interest and   dividends on redeemable shares)

 

(c)                                  interest payable by associates and Joint Ventures

 

(d)                                 the Group’s share of the operating losses arising in associates and   Joint Ventures

 

(e)                                  the Group’s share of exceptional losses arising in associates and   Joint Ventures

 

and after deducting

 

(f)                                   interest receivable and other similar income

 

(g)                                  income from fixed asset investments

 

(h)                                 exceptional gains credited below operating profit

 

(i)                                     interest receivable by associates and Joint Ventures

 

(j)                                    the Group’s share of operating profits arising in associates and Joint   Ventures

 

(k)                                 the Group’s share of exceptional gains arising in associates and Joint   Ventures

 

provided that no amount   included, added or deducted shall be taken into account more than once in   calculating Consolidated EBIT
    
	
 
    	
 
    	
 
    
	
“Consolidated EBITAR”
    	
 
    	
means, in respect of any Relevant Period, Consolidated EBIT for that   Relevant Period after adding back   any amount attributable to the amortisation of goodwill and intangible assets   of members of the Group and rental paid by any member of the Group during   that Relevant Period
    
	
 
    	
 
    	
 
    
	
“Consolidated EBITDA”
    	
 
    	
means, in respect of any Relevant Period, Consolidated EBIT for that   Relevant Period after adding back   any amount attributable to the 
    

 

99

 

	
 
    	
 
    	
amortisation of goodwill and intangible assets of members of the Group   and any amount attributable to the depreciation of assets of members of the   Group
    
	
 
    	
 
    	
 
    
	
“Consolidated Gross Borrowings”
    	
 
    	
means at any time, the aggregate of all obligations of the Group for   the repayment of money, whether present or future, actual or contingent   incurred in respect of:-

 

(a)                                 money borrowed from all sources

 

(b)                                 any bonds, notes, loan stock, debentures or similar instruments

 

(c)                                  eligible debt securities, bills of exchange or documentary credits

 

(d)                                 shares issued on the basis that they are or may become redeemable (at   redemption value)

 

(e)                                  gross obligations under Finance Leases

 

(f)                                   the factoring of debts

 

(g)                                  guarantees, indemnities or other assurances against financial loss and

 

(h)                                 amounts raised or obligations incurred in respect of any other   transaction which has the commercial effect of borrowing
    
	
 
    	
 
    	
 
    
	
“Consolidated Interest and Rental Payable”
    	
 
    	
means, in respect of any Relevant Period, Consolidated Borrowing Costs   plus rental paid and due to be paid by any member of the Group during that   Relevant Period
    
	
 
    	
 
    	
 
    
	
“Consolidated Net Borrowings”
    	
 
    	
means, at any time, Consolidated Gross Borrowings less:-

 

(a)                                 any Cash or Cash Equivalent Investments held by any member of the   Group

 

(b)                                 any Financial Indebtedness arising in respect of any loan from PAG or   any of its Subsidiaries (other than a member of the Group) to any member of   the Group which is subordinated to the Facility (and, for the avoidance of   doubt, such subordinated Financial Indebtedness shall include any Short Term   Loan that is subordinated in accordance with Clause 33.18.4) and

 

(c)                                  any Financial Indebtedness in respect of 
    

 

100

 

	
 
    	
 
    	
Stocking Finance
    
	
 
    	
 
    	
 
    
	
“Finance Lease”
    	
 
    	
means any lease or hire purchase contract which would, in accordance   with the Accounting Principles, be treated as a finance or capital lease   provided that any lease or hire purchase contract which is classified as an   operating lease in accordance with the Accounting Principles as applied to   the Original Financial Statements shall not be treated as a Finance Lease
    
	
 
    	
 
    	
 
    
	
“Financial Quarter”
    	
 
    	
means the period commencing on the day after one Quarter Date and   ending on the next Quarter Date
    
	
 
    	
 
    	
 
    
	
“Financial Year”
    	
 
    	
means the annual accounting period of the Group ending on or about   31 December in each year
    
	
 
    	
 
    	
 
    
	
“Quarter Date”
    	
 
    	
means each of 31 March, 30 June, 30 September and   31 December
    
	
 
    	
 
    	
 
    
	
“Relevant Period”
    	
 
    	
means each period of twelve months ending on or about the last day of   the Financial Year and each period of twelve months ending on or about the   last day of each Financial Quarter
    
	
 
    	
 
    	
 
    
	
“Stocking Finance”
    	
 
    	
means, at any time, all funding provided to any member of the Group   for vehicle stock, used demonstrators and consignment stock
    
	
 
    	
 
    	
 
    
	
“Stocking Interest”
    	
 
    	
means, in respect of any Relevant Period, interest charged on funding   provided for vehicle stock, used demonstrators and consignment vehicles
    

 

32.2                                 Financial condition

 

The Company shall ensure that:-

 

32.2.1                      EBITAR: Interest and Rental Payable: the ratio of Consolidated EBITAR to Consolidated Interest and Rental Payable in respect of any Relevant Period shall not be less than 1.55:1.

 

32.2.2                      Net Debt :Consolidated EBITDA: the ratio of Consolidated Net Borrowings to Consolidated EBITDA less Stocking Interest in respect of any Relevant Period shall not be more than 2.75:1

 

32.2.3                      Capital Expenditure:  The aggregate Capital Expenditure of the Group in respect of any Financial Year shall not exceed £60,000,000.

 

32.3                                 Financial testing

 

The financial covenants set out in Clause 32.2 (Financial condition) shall be calculated in accordance with the Accounting Principles (other than in relation to the treatment of demonstrator stock, courtesy vehicles and vehicles operated through Agnew Corporate Ltd, which shall be treated in accordance with the treatment of those assets in the Monthly

 

101

 

Financial Statements as at 31 December 2013) and tested by reference to each of the financial statements delivered pursuant to Clause 31.1.2 and/or each Compliance Certificate delivered pursuant to Clause 31.2 (Provision and contents of Compliance Certificate).

 

33.             GENERAL UNDERTAKINGS

 

The undertakings in this Clause 33 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

Authorisations and compliance with laws

 

33.1           Authorisations

 

Each Obligor shall promptly obtain, comply with and do all that is necessary to maintain in full force and effect any Authorisation required under any law or regulation of a Relevant Jurisdiction to:-

 

33.1.1       enable it to perform its obligations under the Finance Documents;

 

33.1.2       ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document; and

 

33.1.3       carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

33.2           Compliance with laws

 

Each Obligor shall (and the Parent and the Company shall ensure that each member of the Group will) comply in all respects with all laws to which it may be subject, if failure so to comply has or is reasonably likely to have a Material Adverse Effect.

 

33.3           Environmental compliance

 

Each member of the Group shall:-

 

33.3.1       comply with all Environmental Law;

 

33.3.2       obtain, maintain and ensure compliance with all requisite Environmental Permits;

 

33.3.3       implement procedures to monitor compliance with and to prevent liability under any Environmental Law,

 

where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

33.4           Environmental claims

 

Each member of the Group shall (through the Company), promptly upon becoming aware of the same, inform the Agent in writing of:-

 

33.4.1       any Environmental Claim against any member of the Group which is current, pending or threatened; and

 

102

 

33.4.2       any facts or circumstances which are reasonably likely to result in any Environmental Claim being commenced or threatened against any member of the Group,

 

where the claim, if determined against that member of the Group, has or is reasonably likely to have a Material Adverse Effect.

 

33.5           Anti-corruption law

 

33.5.1       No Obligor shall (and the Company shall ensure that no other member of the Group will) directly or indirectly use the proceeds of the Facility for any purpose which would breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other similar legislation in other jurisdictions.

 

33.5.2       Each Obligor shall (and the Company shall ensure that each other member of the Group will):

 

(a)              conduct its businesses in compliance with applicable anti-corruption laws; and

 

(b)              maintain policies and procedures designed to promote and achieve compliance with such laws.

 

33.6           Taxation

 

33.6.1       Each Obligor shall (and the Parent and the Company shall ensure that each member of the Group will) pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:-

 

(a)              such payment is being contested in good faith;

 

(b)              adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered to the Agent under Clause 31.1 (Financial statements) or will be and are disclosed in the financial statements to be delivered immediately following such Taxes being imposed; and

 

(c)              such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

 

33.6.2       The Parent and no member of the Group may change its residence for Tax purposes.

 

Restrictions on business focus

 

33.7           Merger

 

No Obligor shall (and the Parent and the Company shall ensure that no other member of the Group will) enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction other than a Permitted Transaction.

 

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33.8           Change of business

 

The Parent and the Company shall procure that no material change is made to the general nature of the business of the Parent, the Company, the Obligors or the Group taken as a whole from that carried on by the Group at the date of this Agreement.

 

33.9           Acquisitions

 

33.9.1       Except as permitted under Clause 33.9.2 below, no member of the Group shall:-

 

(a)              acquire a company or any shares or securities or a business or undertaking (or, in each case, any interest in any of them); or

 

(b)              incorporate a company.

 

33.9.2       Clause 33.9.1 above does not apply to an acquisition of a company, of shares, securities or a business or undertaking (or, in each case, any interest in any of them) or the incorporation of a company which is:-

 

(a)              a Permitted Acquisition; or

 

(b)              a Permitted Transaction.

 

33.10         Joint ventures

 

33.10.1     Except as permitted under Clause 33.10.2 below, no member of the Group shall:-

 

(a)              enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

 

(b)              transfer any assets or lend to or guarantee or give an indemnity for or give Security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

 

33.10.2     Clause 33.10.1 above does not apply to any acquisition of (or agreement to acquire) any interest in a Joint Venture or transfer of assets (or agreement to transfer assets) to a Joint Venture or loan made to or guarantee given in respect of the obligations of a Joint Venture if such transaction is a Permitted Acquisition, a Permitted Disposal, a Permitted Loan or a Permitted Joint Venture.

 

Restrictions on dealing with assets and Security

 

33.11         Preservation of assets

 

Each Obligor shall (and the Parent and the Company shall ensure that each member of the Group will) maintain in good working order and condition (ordinary wear and tear excepted) all of its assets necessary in the conduct of its business.

 

33.12         Pari passu ranking

 

Each Obligor shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party or Hedge Counterparty against it under the Finance Documents rank at 

 

104

 

least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

 

33.13         Negative pledge

 

In this Clause 33.13, “Quasi-Security” means an arrangement or transaction described in Clause (b) below.

 

33.13.1     The Parent shall not create or permit to subsist any Security over any of shares owned by the Parent in the Company.

 

33.13.2     Except as permitted under Clause 33.13.3 below:-

 

(a)              no member of the Group shall create or permit to subsist any Security over any of its assets.

 

(b)              no member of the Group shall:-

 

(i)               sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other member of the Group;

 

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

 

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

 

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

 

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

 

33.13.3     Clauses 33.13.2(a) and (b) above do not apply to any Security or (as the case may be) Quasi-Security, which is:-

 

(a)              Permitted Security; or

 

(b)              a Permitted Transaction.

 

33.14         Disposals

 

33.14.1     The Parent shall not enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of the shares owned by the Parent in the Company.

 

33.14.2     Except as permitted under Clause 33.14.3 below, no member of the Group shall enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

 

105

 

33.14.3     Clause 33.14.1 above does not apply to any sale, lease, transfer or other disposal which is:-

 

(a)              a Permitted Disposal; or

 

(b)              a Permitted Transaction.

 

33.15         Arm’s length basis

 

33.15.1     Except as permitted by Clause 33.15.2 below, no member of the Group shall enter into any transaction with any person except on arm’s length terms and for full market value; and

 

33.15.2     The following transactions shall not be a breach of this Clause 33.15:-

 

(a)              intra-Group loans permitted under Clause 33.16 (Loans or credit);

 

(b)              fees, costs and expenses payable under the Finance Documents in the amounts set out in the Finance Documents delivered to the Agent under Clause 13.1 (Initial conditions precedent) or agreed by the Agent; and

 

(c)              any Permitted Transaction.

 

Restrictions on movement of cash - cash out

 

33.16         Loans or credit

 

33.16.1     Except as permitted under Clause 33.16.2 below, no member of the Group shall be a creditor in respect of any Financial Indebtedness.

 

33.16.2     Clause 33.16.1 above does not apply to:-

 

(a)              a Permitted Loan; or

 

(b)              a Permitted Transaction.

 

33.17         No Guarantees or indemnities

 

33.17.1     Except as permitted under Clause 33.17.2 below, no member of the Group shall incur or allow to remain outstanding any guarantee in respect of any obligation of any person.

 

33.17.2     Clause 33.17.1 does not apply to a guarantee which is:-

 

(a)              a Permitted Guarantee; or

 

(b)              a Permitted Transaction.

 

33.18         Dividends, share redemption and repayment of Short Term Loans

 

33.18.1     Except as permitted under Clause 33.18.2 below, the Company shall not (and the Parent and the Company will ensure that no other member of the Group will):-

 

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(a)              declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital);

 

(b)              repay or distribute any dividend or share premium reserve;

 

(c)              pay or allow any member of the Group to pay any management, advisory or other fee to or to the order of any of the shareholders of the Parent or the Company; or

 

(d)              redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so.

 

33.18.2     Clause 33.18.1 above does not apply to:-

 

(a)              a Permitted Distribution; or

 

(b)              a Permitted Transaction (other than one referred to in sub-clause (c) of the definition of that term).

 

33.18.3     The Company shall not (and the Parent and the Company will ensure that no other member of the Group will) repay any Short Term Loan (a “Short Term Loan Repayment”) unless:

 

(a)              no Event of Default has occurred or is continuing; and

 

(b)              based on projections prepared by the Company (based on reasonable assumptions), the Group shall be in compliance with Clause 32.2 (Financial condition) on each of the next two Testing Dates and the Company has supplied a copy of such projections to the Agent.

 

33.18.4     If the relevant member of the Group cannot make the Short Term Loan Repayment within the 45 day period because it is prevented from doing so under Clause 33.18.3, the Parent and the Company shall procure that PAG, any of its Subsidiaries and the relevant member(s) of the Group as required shall enter into a subordination deed (in form and substance satisfactory to the Agent) confirming that each relevant Short Term Loan is fully subordinated to the Loans under this Agreement.

 

33.18.5     No Event of Default shall arise in respect of a failure to make a Short Term Repayment within the 45 day period if that Short Term Loan is subordinated in accordance with Clause 33.18.4.

 

Restrictions on movement of cash - cash in

 

33.19         Financial Indebtedness

 

33.19.1     Except as permitted under Clause 33.19.2 below, no member of the Group shall incur or allow to remain outstanding any Financial Indebtedness.

 

33.19.2     Clause 33.19.1 above does not apply to Financial Indebtedness which is:-

 

(a)              Permitted Financial Indebtedness; or

 

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(b)              a Permitted Transaction.

 

33.20         Share capital

 

No member of the Group shall issue any shares except pursuant to a Permitted Transaction.

 

Miscellaneous

 

33.21         Insurance

 

33.21.1     Each Obligor shall (and the Parent and the Company shall ensure that each member of the Group will) maintain insurances on and in relation to its business and assets against those risks and to the extent as is usual for companies carrying on the same or substantially similar business.

 

33.21.2     All insurances must be with reputable independent insurance companies or underwriters.

 

33.22         Pensions

 

33.22.1     The Parent and the Company shall ensure that all pension schemes operated by or maintained for the benefit of members of the Group and/or any of their employees are funded in accordance with the statutory funding objective and any deficit reduction plans agreed by the Parent and/or the Company from time to time and that no action or omission is taken by the Parent, the Company or any other member of the Group in relation to such a pension scheme which has or is reasonably likely to have a Material Adverse Effect (including, without limitation, the termination or commencement of winding-up proceedings of any such pension scheme or any member of the Group ceasing to employ any member of such a pension scheme).

 

33.22.2     Except for the DB Schemes the Parent and the Company shall ensure that neither the Parent nor any member of the Group is or has been at any time an employer (for the purposes of Sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pension Schemes Act 1993) or “connected” with or an “associate” of (as those terms are used in sections 38 or 43 of the Pensions Act 2004) such an employer.

 

33.22.3     The Parent and the Company shall deliver to the Agent at such times as those reports are prepared in order to comply with the then current statutory or auditing requirements (as applicable either to the trustees of any relevant schemes or to the Parent and the Company), actuarial reports in relation to all pension schemes mentioned in Clause 33.22.1 above.

 

33.22.4     The Parent and the Company shall promptly notify the Agent of any material change in the rate of contributions to any pension schemes mentioned in 33.22.1 above paid or recommended to be paid (whether by the scheme actuary or otherwise) or required (by law or otherwise).

 

33.22.5     Each Obligor shall immediately notify the Agent of any investigation or proposed investigation by the Pensions Regulator of which an Obligor becomes aware which may lead to the issue of a Financial Support Direction or a Contribution Notice to it or any other member of the Group.

 

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33.22.6     Each Obligor shall immediately notify the Agent if it receives a Financial Support Direction or a Contribution Notice from the Pensions Regulator.

 

33.23         Access

 

Each Obligor shall, and the Parent and the Company shall ensure that each member of the Group will, (not more than once in every Financial Year unless the Agent reasonably suspects a Default is continuing or may occur) permit the Agent and/or the Security Agent and/or accountants or other professional advisers and contractors of the Agent or Security Agent free access at all reasonable times and on reasonable notice to (a) the premises, assets, books, accounts and records of each member of the Group and (b) meet and discuss matters with the senior management of the Group (including the chief executive officer and the chief financial officer).

 

33.24         Service contracts

 

33.24.1     The Parent and the Company must ensure that there is in place in respect of each Material Company qualified management with appropriate skills.

 

33.24.2     If either the chief financial officer or chief executive officer of the Group ceases (whether by reason of death, retirement at normal retiring age or through ill health or otherwise) to perform his or her duties as required under his or her service contract the Parent must as soon as reasonably practicable thereafter:-

 

(a)              notify the Agent; and

 

(b)              after consultation with the Agent as to the identity of such replacement person, find and appoint an adequately qualified replacement for him or her as promptly as practicable.

 

33.25         Intellectual Property

 

33.25.1     Each Obligor shall (and the Parent and the Company shall procure that each Group member will):-

 

(a)              preserve and maintain the subsistence and validity of the Intellectual Property necessary for the business of the relevant Group member;

 

(b)              use reasonable endeavours to prevent any infringement in any material respect of the Intellectual Property;

 

(c)              make registrations and pay all registration fees and taxes necessary to maintain the Intellectual Property in full force and effect and record its interest in that Intellectual Property;

 

(d)              not use or permit the Intellectual Property to be used in a way or take any step or omit to take any step in respect of that Intellectual Property which may materially and adversely affect the existence or value of the Intellectual Property or imperil the right of any member of the Group to use such property; and

 

(e)              not discontinue the use of the Intellectual Property,

 

where failure to do so, in the case of sub-clauses (a) and (b) and above, or, in the case of sub-clauses (d) and (e) above, such use, permission to use, 

 

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omission or discontinuation, is reasonably likely to have a Material Adverse Effect.

 

33.25.2     Failure to comply with any part of Clause 33.25.1 above shall not be a breach of this Clause 33.25 to the extent that any dealing with Intellectual Property which would otherwise be a breach of Clause 33.25.1 is contemplated by the definition of Permitted Transaction.

 

33.26         Amendments

 

33.26.1     No Obligor shall (and the Parent and the Company shall ensure that no member of the Group will) amend, vary, novate, supplement, supersede, waive or terminate any term of a Finance Document except in writing:-

 

(a)              in accordance with the provisions of Clause 47 (Amendments and Waivers);

 

(b)              to the extent that that amendment, variation, novation, supplement, superseding, waiver or termination is permitted by the Intercreditor Agreement; and

 

(c)              after the Closing Date (other than an amendment which is administrative or technical in nature), in a way which could not be reasonably expected materially and adversely to affect the interests of the Lenders.

 

33.26.2     The Parent and the Company shall promptly supply to the Agent a copy of any document relating to any of the matters referred to in sub-clauses (a) to (c) above.

 

33.27         Financial assistance

 

Each Obligor shall (and the Parent and the Company shall procure each member of the Group will) comply in all respects with sections 678 and 679 of the Companies Act 2006 and any equivalent legislation in other jurisdictions including in relation to the execution of the Transaction Security Documents and payment of amounts due under this Agreement.

 

33.28         Group bank accounts

 

33.28.1     Except as permitted under Clause 33.28.2 below, the Parent and the Company shall ensure that all bank accounts of the Parent and the Group shall be opened and maintained with a Finance Party or an Affiliate of a Finance Party and are subject to valid Security under the Transaction Security Documents.

 

33.28.2     Clause 33.28.1 above does not apply to bank accounts of any business or company which is acquired by any member of the Group after the Closing Date where such bank account is in existence prior to the date on which that business or company becomes a member of the Group, provided that such bank account shall be closed within one month of the date of completion of the relevant acquisition.

 

33.29         Treasury Transactions

 

No member of the Group shall enter into any Treasury Transaction, other than a Permitted Treasury Transaction.

 

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33.30         Further assurance

 

33.30.1     Subject to the Agreed Security Principles, each Obligor shall (and the Parent and the Company shall procure that each member of the Group will) promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Security Agent may reasonably specify (and in such form as the Security Agent may reasonably require in favour of the Security Agent or its nominee(s)):-

 

(a)              to perfect the Security created or intended to be created under or evidenced by the Transaction Security Documents (which may include the execution of a mortgage, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Transaction Security) or for the exercise of any rights, powers and remedies of the Security Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law;

 

(b)              to confer on the Security Agent or confer on the Finance Parties Security over any property and assets of that Obligor located in any jurisdiction equivalent or similar to the Security intended to be conferred by or pursuant to the Transaction Security Documents; and/or

 

(c)              to facilitate the realisation of the assets which are, or are intended to be, the subject of the Transaction Security.

 

33.30.2     Each Obligor shall (and the Parent and the Company shall procure that each member of the Group shall) take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Security Agent or the Finance Parties by or pursuant to the Finance Documents.

 

33.31         Syndication, Assignment or Transfer

 

33.31.1     The Obligors acknowledge that a Lender may syndicate all or any part of the Facility, assign any of its rights or transfer by novation any of its rights and obligations (a “Syndication, Assignment or Transfer”) under any Finance Document in accordance with Clause 35 (Changes to the Lenders).  Where a Syndication, Assignment or Transfer is to be effected in accordance with Clause 35 (Changes to the Lenders), the Company shall enter into negotiations in good faith for a period of time of not longer than 60 days (the “Time Limit”) with a view to agreeing all amendments to any Finance Document and/or replacement of or variation to any document and all ancillary documentation required by the relevant Lender and any New Lender (as defined in Clause 35.1 (Assignments and transfers by the Lenders)) to effect the Syndication, Assignment or Transfer.

 

33.31.2     Upon the request of the Agent, the Company shall supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (on behalf of a relevant Lender, whether for itself or on behalf of any prospective New Lender) in order for 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 each Finance Document.

 

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33.31.3     The Company agrees to meet all reasonable costs, charges and expenses incurred (including the reasonable fees and expenses of any legal and other professional advisors whether directly employed by the Agent, the relevant Lender or any prospective New Lender or who provide other services to the Agent, the relevant Lender or any prospective New Lender) by the Agent, the relevant Lender and/or any prospective New Lender in connection with any proposed Syndication, Assignment or Transfer.

 

33.32         Wider group loans

 

No member of the Group shall make any loan to or repay or pay any principal or interest on any loan granted to it by any member of the German Group except with the prior written consent of the Agent (such consent not to be unreasonably withheld or delayed).

 

33.33         Guarantors

 

33.33.1     The Parent and the Company shall ensure that at all times after the Closing Date, the aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA, as defined in Clause 32 (Financial Covenants)) of the Guarantors (other than the Parent) and the aggregate gross assets, the aggregate net assets and aggregate turnover of the Guarantors (other than the Parent) (in each case calculated on an unconsolidated basis and excluding all intra-group items and investment in Subsidiaries of any member of the Group) represents not less than 90 per cent of Consolidated EBITDA (as defined in Clause 32 (Financial Covenants)) and consolidated gross assets, consolidated net assets and consolidated turnover of the Group.

 

33.33.2     The Parent and the Company need only perform its obligations under Clause 33.33.1 above if it is not unlawful for the relevant person to become a Guarantor and that person becoming a Guarantor would not result in personal liability for that person’s directors or other management.  Each Obligor must use, and must procure that the relevant person uses, all reasonable endeavours lawfully available to avoid any such unlawfulness or personal liability.  This includes agreeing to a limit on the amount guaranteed.  The Agent may (but shall not be obliged to) agree to such a limit if, in its opinion, to do so would avoid the relevant unlawfulness or personal liability.

 

33.34         Conditions subsequent

 

Each Obligor must use, and must procure that any other member of the Group that is a potential provider of Transaction Security uses, all reasonable endeavours lawfully available to avoid or mitigate the constraints on the provision of Security provided for in the Agreed Security Principles.

 

34.             EVENTS OF DEFAULT

 

Each of the events or circumstances set out in this Clause 34 is an Event of Default (save for Clause 34.18 (Acceleration).

 

34.1           Non-payment

 

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless:-

 

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34.1.1       its failure to pay is caused by:-

 

(a)              administrative or technical error; or

 

(b)              a Disruption Event; and

 

34.1.2       payment is made within three Business Days of its due date.

 

34.2           Financial covenants and other obligations

 

34.2.1       Any requirement of Clause 32 (Financial covenants) is not satisfied or an Obligor does not comply with the provisions of Clause 31 (Information Undertakings), Clause 33.11 (Preservation of assets), Clause 33.12 (Pari passu ranking), Clause 33.13 (Negative pledge), Clause 33.14 (Disposals), Clause 33.15 (Arm’s length basis), Clause 33.16 (Loans or credit), Clause 33.17 (No Guarantees or indemnities), Clause 33.18 (Dividends, share redemption and Repayment of Short Term Loans) and/or Clause 33.19 (Financial Indebtedness).

 

34.2.2       An Obligor does not comply with any provision of any Transaction Security Document.

 

34.3           Other obligations

 

34.3.1       An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 34.1 (Non-payment) and Clause 34.2 (Financial covenants and other obligations)).

 

34.3.2       No Event of Default under Clause 34.3.1 above will occur if the failure to comply is capable of remedy and is remedied within 7 Business Days of the earlier of (i) the Agent giving notice to the Company or relevant Obligor and (ii) the Company or an Obligor becoming aware of the failure to comply.

 

34.4           Misrepresentation

 

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

 

34.5           Cross default

 

34.5.1       Any Financial Indebtedness of the Parent or any member of the Group is not paid when due nor within any originally applicable grace period.

 

34.5.2       Any Financial Indebtedness of the Parent or any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

 

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

 

34.5.4       Any creditor of the Parent or any member of the Group becomes entitled to declare any Financial Indebtedness of the Parent or any member of the Group 

 

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                   due and payable prior to its specified maturity as a result of an event of default (however described).

 

34.5.5       No Event of Default will occur under this Clause 34.5 if:-

 

(a)              the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within Clauses 34.5.1 to 34.5.4 above is less than £6,000,000 (or its equivalent in any other currency or currencies); or

 

(b)              the Financial Indebtedness or commitment for Financial Indebtedness arises under the NatWest Overdraft Letter unless any amount demanded in accordance with the terms of the NatWest Overdraft Letter has not been paid within 30 days of demand.

 

34.6           Insolvency

 

34.6.1       The Parent or any member of the Group is unable or admits inability to pay its debts as they fall due, is deemed to or declared to be unable to pay its debts under applicable law, suspends or threatens to suspend making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (excluding any Finance Party in its capacity as such) with a view to rescheduling any of its indebtedness.

 

34.6.2       The value of the assets of the Parent or any member of the Group is less than its liabilities (taking into account contingent and prospective liabilities).

 

34.6.3       A moratorium is declared in respect of any indebtedness of the Parent or any member of the Group.  If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.

 

34.7           Insolvency proceedings

 

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

 

(a)              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 Parent or any member of the Group;

 

(b)              a composition, compromise, assignment or arrangement with any creditor of the Parent or any member of the Group;

 

(c)              the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of the Parent or any member of the Group or any of its assets; or

 

(d)              enforcement of any Security over any assets of the Parent or any member of the Group,

 

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

 

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34.7.2       Clause 34.7.1 shall not apply to:-

 

(a)              any corporate action, legal proceedings or other similar procedure initiated by a person which is not the Parent or a member of the Group which is frivolous or vexatious and is discharged, stayed or dismissed within 14 days of commencement; or

 

(b)              any step or procedure contemplated by sub-clause (b) of the definition of Permitted Transaction.

 

34.8           Creditors’ process

 

Any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of the Parent or a member of the Group having an aggregate value of £3,000,000 and is not discharged within 14 days.

 

34.9           Unlawfulness and invalidity

 

34.9.1       It is or becomes unlawful for an Obligor or any other member of the Group that is a party to the Intercreditor Agreement to perform any of its obligations under the Finance Documents or any Transaction Security created or expressed to be created or evidenced by the Transaction Security Documents ceases to be effective or any subordination created under the Intercreditor Agreement is or becomes unlawful.

 

34.9.2       Any obligation or obligations of any Obligor under any Finance Documents or any other member of the Group under the Intercreditor Agreement are not (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.

 

34.9.3       Any Finance Document ceases to be in full force and effect or any Transaction Security or any subordination created under the Intercreditor Agreement ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.

 

34.10         Intercreditor Agreement

 

34.10.1     Any party to the Intercreditor Agreement (other than a Finance Party or an Obligor) fails to comply with the provisions of, or does not perform its obligations under, the Intercreditor Agreement; or

 

34.10.2     a representation or warranty given by that party in the Intercreditor Agreement is incorrect in any material respect.

 

34.11         Cessation of business

 

The Parent or any member of the Group suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of its business except as a result of a Permitted Disposal or a Permitted Transaction.

 

34.12         Expropriation

 

The authority or ability of the Parent or any member of the Group to conduct its business is limited or wholly or substantially curtailed by any seizure, expropriation, nationalisation, 

 

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intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person in relation to the Parent or any member of the Group or any of its assets where such occurrence has or is reasonably likely to have a Material Adverse Effect.

 

34.13         Repudiation and rescission of agreements

 

34.13.1     An Obligor rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or any of the Transaction Security or evidences an intention to rescind or repudiate a Finance Document or any Transaction Security.

 

34.13.2     Any party (other than a Finance Party) to the Intercreditor Agreement rescinds or purports to rescind or repudiates or purports to repudiate the Intercreditor Agreement in whole or in part where to do so has or is, in the reasonable opinion of the Majority Lenders, likely to have a material adverse effect on the interests of the Lenders under the Finance Documents.

 

34.14         Litigation

 

Any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Finance Documents or the transactions contemplated in the Finance Documents or against any member of the Group or its assets which have or are reasonably likely to have a Material Adverse Effect.

 

34.15         Pensions

 

The Pensions Regulator issues a Contribution Notice to the Parent or any member of the Group unless the aggregate liability of the Obligors under all Contribution Notices is less than £20,000,000.

 

34.16         Franchise Agreements

 

Any breach occurs under any Material Franchising Agreement which has or is reasonably likely to have a Material Adverse Effect.

 

34.17         Material adverse change

 

Any event or circumstance occurs which the Majority Lenders reasonably believe has or is reasonably likely to have a Material Adverse Effect.

 

34.18         Acceleration

 

On and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders, by notice to the Company:-

 

34.18.1     cancel the Total Commitments and/or Ancillary Commitments at which time they shall immediately be cancelled;

 

34.18.2     declare that all or part of the Utilisations, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, at which time they shall become immediately due and payable;

 

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34.18.3     declare that all or part of the Utilisations be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders;

 

34.18.4     declare all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities to be immediately due and payable, at which time they shall become immediately due and payable;

 

34.18.5     declare that all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or

 

34.18.6     exercise or direct the Security Agent to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

 

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SECTION 9

 

CHANGES TO PARTIES

 

35.             CHANGES TO THE LENDERS

 

35.1           Assignments and transfers by the Lenders

 

Subject to this Clause 35 and to Clause 36 (Restriction on Debt Purchase Transactions) a Lender (the “Existing Lender”) may:-

 

35.1.1       assign any of its rights; or

 

35.1.2       transfer by novation any of its rights and obligations,

 

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

 

35.2           Conditions of assignment or transfer

 

35.2.1       The consent of the Parent is required for an assignment or transfer by an Existing Lender, unless the assignment or transfer is:-

 

(a)              to another Lender or an Affiliate of a Lender;

 

(b)              if the Existing Lender is a fund, to a fund which is a Related Fund of the Existing Lender; or

 

(c)              made at a time when an Event of Default is continuing.

 

35.2.2       The consent of the Parent to an assignment or transfer must not be unreasonably withheld or delayed.  The Parent will be deemed to have given its consent 5 Business Days after the Existing Lender has requested it unless consent is expressly refused by the Parent within that time.

 

35.2.3       An assignment or transfer will only be effective on:-

 

(a)              receipt by the Agent (whether in the Assignment Agreement or otherwise) of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties and the other Secured Parties as it would have been under if it was an Original Lender;

 

(b)              the New Lender entering into the documentation required for it to accede as a party to the Intercreditor Agreement; and

 

(c)              the performance by the Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to such transfer or assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.

 

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35.2.4       A transfer will only be effective if the New Lender enters into the documentation required for it to accede as a party to the Intercreditor Agreement and if the procedure set out in Clause 35.5 (Procedure for transfer) is complied with.

 

35.2.5       If:-

 

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

 

(b)              as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clauses 24 (Tax gross up and indemnities) or 25 (Increased Costs),

 

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

 

35.2.6       Each New Lender, by executing the relevant Transfer Certificate or Assignment Agreement, confirms, for the avoidance of doubt, that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

 

35.3           Assignment or transfer fee

 

Unless the Agent otherwise agrees and excluding an assignment or transfer (i) to an Affiliate of a Lender, (ii) to a Related Fund or (iii) made in connection with primary syndication of the Facilities, the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of £2,500.

 

35.4           Limitation of responsibility of Existing Lenders

 

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

 

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

 

(b)              the financial condition of any Obligor;

 

(c)              the performance and observance by any Obligor or any other member of the Group of its obligations under the 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.

 

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35.4.2       Each New Lender confirms to the Existing Lender, the other Finance Parties and the Secured Parties that it:-

 

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

 

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

 

35.4.3       Nothing in any Finance Document obliges an Existing Lender to:-

 

(a)              accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 35; or

 

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

 

35.5           Procedure for transfer

 

35.5.1       Subject to the conditions set out in Clause 35.2 (Conditions of assignment or transfer) a transfer is effected in accordance with Clause 35.5.3 below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to Clause 35.5.2 below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

 

35.5.2       The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

 

35.5.3       Subject to Clause 35.10 (Pro rata interest settlement), on the Transfer Date:-

 

(a)              to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents and in respect of the Transaction Security each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and in respect of the Transaction Security and their respective rights against one another under the Finance Documents and in respect of the Transaction Security shall be cancelled (being the “Discharged Rights and Obligations”);

 

(b)              each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that 

 

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                   Obligor or other member of the Group and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

 

(c)              the Agent, the Arranger, the Security Agent, the New Lender, the other Lenders and any relevant Ancillary Lender shall acquire the same rights and assume the same obligations between themselves and in respect of the Transaction Security as they would have acquired and assumed had the New Lender been an Original Lender with the rights, and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Arranger, the Security Agent and any relevant Ancillary Lender and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and

 

(d)              the New Lender shall become a Party as a “Lender”.

 

35.6           Procedure for assignment

 

35.6.1       Subject to the conditions set out in Clause 35.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with Clause 35.6.3 below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to Clause 35.6.2 below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

 

35.6.2       The Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.

 

35.6.3       Subject to Clause 35.10 (Pro rata interest settlement), on the Transfer Date:-

 

(a)              the Existing Lender will assign absolutely to the New Lender its rights under the Finance Documents and in respect of the Transaction Security expressed to be the subject of the assignment in the Assignment Agreement;

 

(b)              the Existing Lender will be released by each Obligor from the obligations owed by it (the “Relevant Obligations”) and expressed to be the subject of the release in the Assignment Agreement (and any corresponding obligations by which it is bound in respect of the Transaction Security); and

 

(c)              the New Lender shall become a Party as a “Lender” and will be bound by obligations equivalent to the Relevant Obligations.

 

35.6.4       Lenders may utilise procedures other than those set out in this Clause 35.6 to assign their rights under the Finance Documents (but not, without the consent of the relevant Obligor or unless in accordance with Clause 35.5 (Procedure for transfer), to obtain a release by that Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New 

 

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                   Lender) provided that they comply with the conditions set out in Clause 35.2 (Conditions of assignment or transfer).

 

35.7           Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company

 

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate, an Assignment Agreement or an Increase Confirmation, send to the Company a copy of that Transfer Certificate, Assignment Agreement or Increase Confirmation.

 

35.8           Accession of Hedge Counterparties

 

Any person which becomes a party to the Intercreditor Agreement as a Hedge Counterparty shall, at the same time, become a Party to this Agreement as a Hedge Counterparty in accordance with clause 20.5.2 (Deeds of Accession) of the Intercreditor Agreement.

 

35.9           Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 35, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:-

 

35.9.1       any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

 

35.9.2       in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,

 

except that no such charge, assignment or Security shall:-

 

(a)              release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or other Security for the Lender as a party to any of the Finance Documents; or

 

(b)              require any payments to be made by an Obligor or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents.

 

35.10         Pro rata interest settlement

 

If the Agent has notified the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 35.5 (Procedure for transfer) or any assignment pursuant to Clause 35.6 (Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):-

 

35.10.1     any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date (“Accrued Amounts”) 

 

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                   and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six Months, on the next of the dates which falls at six Monthly intervals after the first day of that Interest Period); and

 

35.10.2     the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts so that, for the avoidance of doubt:-

 

(a)              when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and

 

(b)              the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 35.10, have been payable to it on that date, but after deduction of the Accrued Amounts.

 

In this Clause 35.10 (Pro rata interest settlement), references to Interest Period shall be construed to include a reference to any other period for accrual of fees.

 

36.             RESTRICTION ON DEBT PURCHASE TRANSACTIONS

 

36.1           Prohibition on Debt Purchase Transactions by the Group

 

Neither the Parent nor the Company shall procure that each other member of the Group shall not, enter into any Debt Purchase Transaction or beneficially own all or any part of the share capital of a company that is a Lender or a party to a Debt Purchase Transaction of the type referred to in sub-clauses (b) or (c) of the definition of Debt Purchase Transaction.

 

36.2           Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates

 

36.2.1       For so long as a Sponsor Affiliate (i) beneficially owns a Commitment or (ii) has entered into a sub-participation agreement relating to a Commitment or other agreement or arrangement having a substantially similar economic effect and such agreement or arrangement has not been terminated:-

 

(a)              in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments or the agreement of any specified group of Lenders has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents such Commitment shall be deemed to be zero; and

 

(b)              for the purposes of Clause 47.3 (Exceptions), such Sponsor Affiliate or the person with whom it has entered into such sub-participation, other agreement or arrangement shall be deemed not to be a Lender (unless in the case of a person not being a Sponsor Affiliate it is a Lender by virtue otherwise than by beneficially owning the relevant Commitment).

 

36.2.2       Each Lender shall, unless such Debt Purchase Transaction is an assignment or transfer, promptly notify the Agent in writing if it knowingly enters into a Debt Purchase Transaction with a Sponsor Affiliate (a “Notifiable Debt Purchase Transaction”), such notification to be substantially in the form set out in Part 1 of Schedule 15 (Forms of Notifiable Debt Purchase Transaction Notice).

 

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36.2.3       A Lender shall promptly notify the Agent if a Notifiable Debt Purchase Transaction to which it is a party:-

 

(a)              is terminated; or

 

(b)              ceases to be with a Sponsor Affiliate,

 

such notification to be substantially in the form set out in Part 2 of Schedule 15 (Forms of Notifiable Debt Purchase Transaction Notice).

 

36.2.4       Each Sponsor Affiliate that is a Lender agrees that:-

 

(a)              in relation to any meeting or conference call to which all the Lenders are invited to attend or participate, it shall not attend or participate in the same if so requested by the Agent or, unless the Agent otherwise agrees, be entitled to receive the agenda or any minutes of the same; and

 

(b)              in its capacity as Lender, unless the Agent otherwise agrees, it shall not be entitled to receive any report or other document prepared at the behest of, or on the instructions of, the Agent or one or more of the Lenders.

 

37.             CHANGES TO THE OBLIGORS

 

37.1           Assignment and transfers by Obligors

 

No Obligor or any other member of the Group may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

 

37.2           Additional Borrowers

 

37.2.1       Subject to compliance with the provisions of Clauses 31.10.3 and 31.10.4, the Company may request that any of its wholly owned Subsidiaries which is not a Dormant Subsidiary becomes a Borrower.  That Subsidiary shall become a Borrower if:-

 

(a)              all the Lenders approve the addition of that Subsidiary;

 

(b)              the Company and that Subsidiary deliver to the Agent a duly completed and executed Accession Deed;

 

(c)              the Subsidiary is (or becomes) a Guarantor on or prior to becoming a Borrower;

 

(d)              the Company confirms that no Default is continuing or would occur as a result of that Subsidiary becoming an Additional Borrower; and

 

(e)              the Agent has received all of the documents and other evidence listed in Part 2 of Schedule 5 (Conditions precedent) in relation to that Additional Borrower, each in form and substance satisfactory to the Agent (acting reasonably).

 

37.2.2       The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) (acting 

 

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                   reasonably) or has waived the requirement to receive all the documents and other evidence listed in Part 2 of Schedule 5 (Conditions precedent).

 

37.3           Resignation of a Borrower

 

37.3.1       In this Clause 37.3, Clause 37.5 (Resignation of a Guarantor) and Clause 37.7 (Resignation and release of Security on disposal), “Third Party Disposal” means the disposal of an Obligor to a person which is not a member of the Group where that disposal is permitted under Clause 33.14 (Disposals) or made with the approval of the Majority Lenders (and the Company has confirmed this is the case).

 

37.3.2       If a Borrower is the subject of a Third Party Disposal, the Company may request that such Borrower (other than the Parent or the Company) ceases to be a Borrower by delivering to the Agent a Resignation Letter.

 

37.3.3              The Agent shall accept a Resignation Letter and notify the Company and the other Finance Parties of its acceptance if:-

 

(a)              the Company has confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter;

 

(b)              the Borrower is under no actual or contingent obligations as a Borrower under any Finance Documents; and

 

(c)              where the Borrower is also a Guarantor (unless its resignation has been accepted in accordance with Clause 37.5 (Resignation of a Guarantor)), its obligations in its capacity as Guarantor continue to be legal, valid, binding and enforceable and in full force and effect (subject to the Legal Reservations) and the amount guaranteed by it as a Guarantor is not decreased (and the Company has confirmed this is the case).

 

37.3.4       Upon notification by the Agent to the Company of its acceptance of the resignation of a Borrower, that company shall cease to be a Borrower and shall have no further rights or obligations under the Finance Documents as a Borrower except that the resignation shall not take effect (and the Borrower will continue to have rights and obligations under the Finance Documents) until the date on which the Third Party Disposal takes effect.

 

37.3.5       The Agent may, at the cost and expense of the Company, require a legal opinion from counsel to the Agent confirming the matters set out in Clause 37.3.3(c) above and the Agent shall be under no obligation to accept a Resignation Letter until it has obtained such opinion in form and substance satisfactory to it.

 

37.4           Additional Guarantors

 

37.4.1       Subject to compliance with the provisions of Clauses 31.10.3 and 31.10.4, the Company may request that any of its wholly owned Subsidiaries become a Guarantor.

 

37.4.2       The Company shall procure that any other member of the Group which is a Material Company shall, as soon as possible after becoming a Material Company become an Additional Guarantor and subject to the Agreed Security Principles grant Security as the Agent may require and shall accede to the 

 

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                   Intercreditor Agreement unless the Company certifies to the Agent that it is intended that the relevant Material Company is to become a Dormant Subsidiary within 150 days after the date on which it is reactivated or acquired and the relevant Material Company becomes a Dormant Subsidiary within that period of 150 days.

 

37.4.3       A member of the Group shall become an Additional Guarantor if:-

 

(a)              the Company and the proposed Additional Guarantor deliver to the Agent a duly completed and executed Accession Deed and shall accede to the Intercreditor Agreement; and

 

(b)              the Agent has received (or waived the requirement to receive) all of the documents and other evidence listed in Part 2 of Schedule 5 (Conditions Precedent) in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent.

 

37.4.4       The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) or waived the requirement to receive all the documents and other evidence listed in Part 2 of Schedule 5 (Conditions precedent).

 

37.4.5       Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in Clause 37.4.4, the Lenders authorise (but do not require) the Agent to give that notification. The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving such notification.

 

37.4.6

 

37.5           Resignation of a Guarantor

 

37.5.1       The Company may request that a Guarantor (other than the Parent or the Company) ceases to be a Guarantor by delivering to the Agent a Resignation Letter if:-

 

(a)              that Guarantor is being disposed of by way of a Third Party Disposal (as defined in Clause 37.3 (Resignation of a Borrower)) and the Company has confirmed this is the case; or

 

(b)              all the Lenders and (unless each Hedge Counterparty has notified the Security Agent that no payment is due to it from that member of the Group under Clause 29 (Guarantee and indemnity)) the Hedge Counterparties have consented to the resignation of that Guarantor.

 

37.5.2       Subject to Clause 37.5.3 below, the Agent shall accept a Resignation Letter and notify the Company and the Lenders of its acceptance if:-

 

(a)              the Company has confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter;

 

(b)              no payment is due from the Guarantor under Clause 29.1 (Guarantee and indemnity); and

 

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(c)              where the Guarantor is also a Borrower, it is under no actual or contingent obligations as a Borrower and has resigned and ceased to be a Borrower under Clause 37.3 (Resignation of a Borrower).

 

37.5.3       The Agent shall not accept a Resignation Letter from a Guarantor unless each Hedge Counterparty has notified the Security Agent that no payment is due from that Guarantor to that Hedge Counterparty under Clause 29.1 (Guarantee and indemnity) (and the Security Agent shall, upon receiving that notification, notify the Agent).

 

37.5.4       The resignation of that Guarantor shall not be effective until the date of the relevant Third Party Disposal at which time that company shall cease to be a Guarantor and shall have no further rights or obligations under the Finance Documents as a Guarantor.

 

37.6           Repetition of Representations

 

Delivery of an Accession Deed constitutes confirmation by the relevant Subsidiary that the representations and warranties referred to in Clause 30.31.4 are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

 

37.7           Resignation and release of security on disposal

 

If a Borrower or Guarantor is or is proposed to be the subject of a Third Party Disposal then:-

 

37.7.1       where that Borrower or Guarantor created Transaction Security over any of its assets or business in favour of the Security Agent, or Transaction Security in favour of the Security Agent was created over the shares (or equivalent) of that Borrower or Guarantor, the Security Agent may, at the cost and request of the Company, release those assets, business or shares (or equivalent) and issue certificates of non-crystallisation;

 

37.7.2       the resignation of that Borrower or Guarantor and related release of Transaction Security referred to in Clause 37.7.1 above shall become effective only on the making of that disposal; and

 

37.7.3       if the disposal of that Borrower or Guarantor is not made, the Resignation Letter of that Borrower or Guarantor and the related release of Transaction Security referred to in Clause 37.7.1 above shall have no effect and the obligations of the Borrower or Guarantor and the Transaction Security created or intended to be created by or over that Borrower or Guarantor shall continue in such force and effect as if that release had not been effected.

 

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SECTION 10

 

THE FINANCE PARTIES

 

38.             ROLE OF THE AGENT, THE ARRANGER AND OTHERS

 

38.1           Appointment of the Agent

 

38.1.1       Each of the Arranger and the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents.

 

38.1.2       Each of the Arranger and the Lenders authorises the Agent to perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

38.2           Instructions

 

38.2.1       The Agent shall:

 

(a)              unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by:

 

(i)               all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision;

 

(ii)              in all other cases, the Majority Lenders; and

 

(b)              not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with paragraph (i) above.

 

38.2.2       The Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Lender or group of Lenders, from that Lender or group of Lenders) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion and the Agent may refrain from acting unless and until it receives those instructions or that clarification.

 

38.2.3       Save in the case of decisions stipulated to be a matter for any other Lender or group of Lenders under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties save for the Security Agent.

 

38.2.4       The Agent may refrain from acting in accordance with any instructions of any Lender or group of Lenders until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with those instructions.

 

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38.2.5       In the absence of instructions, the Agent may act (or refrain from acting) as it considers to be in the best interest of the Lenders.

 

38.2.6       The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.  This Clause 38.2.6 shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Transaction Security Documents or enforcement of the Transaction Security or Transaction Security Documents.

 

38.3           Duties of the Agent

 

38.3.1       The Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

 

38.3.2       Subject to Clause 38.3.3 below, the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

 

38.3.3       Without prejudice to Clause 35.7 (Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company), Clause 38.3.1 above shall not apply to any Transfer Certificate, any Assignment Agreement or Increase Confirmation.

 

38.3.4       Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

38.3.5       If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

 

38.3.6       If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent, the Arranger or the Security Agent) under this Agreement it shall promptly notify the other Finance Parties.

 

38.3.7       The Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied).

 

38.4           Role of the Arranger

 

Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.

 

38.5           No fiduciary duties

 

38.5.1       Nothing in any Finance Document constitutes the Agent and/or the Arranger as a trustee or fiduciary of any other person.

 

38.5.2       None of the Agent, the Arranger or any Ancillary Lender shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

 

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38.6           Business with the Group

 

The Agent, the Arranger and each Ancillary Lender may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

 

38.7           Rights and discretions

 

38.7.1       The Agent may:-

 

(a)              rely on any representation, notice, communication or document (including, without limitation, any notice given by a Lender pursuant to Clause 36.2.2 or 36.2.3) believed by it to be genuine, correct and appropriately authorised;

 

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

 

(c)              assume that:

 

(i)               any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders are duly given in accordance with the terms of the Finance Documents; and

 

(ii)              unless it has received notice of revocation, that those instructions have not been revoked;

 

(d)              rely on a certificate from any person:

 

(i)               as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or

 

(ii)              to the effect that such person approves of any particular dealing, transaction, step, action or thing,

 

as sufficient evidence that that is the case and, in the case of paragraph (c)(i) above, may assume the truth and accuracy of that certificate.

 

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

 

(a)              no Default has occurred (unless it has actual knowledge of a Default arising under Clause 34.1 (Non-payment));

 

(b)              any right, power, authority or discretion vested in any Party or any group of Lenders has not been exercised;

 

(c)              any notice or request made by the Company (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors; and

 

(d)              no Notifiable Debt Purchase Transaction:-

 

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(i)               has been entered into;

 

(ii)              has been terminated; or

 

(iii)             has ceased to be with a Sponsor Affiliate.

 

38.7.3       The Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisors, surveyors or other professional advisors or experts.

 

38.7.4       Without prejudice to the generality of Clause 38.7.3 above or Clause 38.7.5 below, the Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent in its reasonable opinion deems this to be desirable.

 

38.7.5       The Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.

 

38.7.6       The Agent may act in relation to the Finance Documents through its officers, employees and agents and the Agent shall not:

 

(a)              be liable for any error of judgment made by any such person; or

 

(b)              be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part, of any such person,

 

unless such error or such loss was directly caused by the Agent’s gross negligence or wilful misconduct.

 

38.7.7       Unless a Finance Document expressly provides otherwise the Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

 

38.7.8       Without prejudice to the generality of Clause 38.7.7 above, the Agent:

 

(a)              may disclose; and

 

(b)              on the written request of the Parent or the Majority Lenders shall, as soon as reasonably practicable, disclose,

 

the identity of a Defaulting Lender to the other Finance Parties and the Borrower and shall, as soon as reasonably practicable, disclose the same upon the written request of the Borrower or the Majority Lenders.

 

38.7.9       The Agent may not disclose to any Finance Party any details of the rate notified to the Agent by any Lender or the identity of any such Lender for the purpose of Clause .

 

38.7.10     Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arranger is obliged to do or omit to do anything if it 

 

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                   would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

38.7.11     Notwithstanding any provision of any Finance Document to the contrary, the Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

 

38.8           Responsibility for documentation

 

None of the Agent, the Arranger or any Ancillary Lender is responsible or liable for:-

 

38.8.1       for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Arranger, an Ancillary Lender, an Obligor or any other person given in or in connection with any Finance Document or the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; or

 

38.8.2       the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security; or

 

38.8.3       any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

 

38.9           No duty to monitor

 

The Agent shall not be bound to enquire:

 

38.9.1       whether or not any Default has occurred;

 

38.9.2       as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

 

38.9.3       whether any other event specified in any Finance Document has occurred.

 

38.10         Exclusion of liability

 

38.10.1     Without limiting Clause 38.10.2 below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Agent or any Ancillary Lender), none of the Agent or any Ancillary Lender will be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:

 

(a)              any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Finance Document or the Transaction Security, unless directly caused by its gross negligence or wilful misconduct;

 

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(b)              exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document, the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or the Transaction Security; or

 

(c)              without prejudice to the generality of paragraphs (a) and (b) above, any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of:

 

(i)               any act, event or circumstance not reasonably within its control; or

 

(ii)              the general risks of investment in, or the holding of assets in, any jurisdiction,

 

including (in each case and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action.

 

38.10.2     No Party (other than the Agent or an Ancillary Lender (as applicable)) may take any proceedings against any officer, employee or agent of the Agent or any Ancillary Lender, in respect of any claim it might have against the Agent or an Ancillary Lender or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent or any Ancillary Lender may rely on this Clause subject to Clause 10.3 (Third party rights) and the provisions of the Third Parties Act.

 

38.10.3     The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose.

 

38.10.4     Nothing in this Agreement shall oblige the Agent or the Arranger to carry out:

 

(a)              any “know your customer” or other checks in relation to any person; or

 

(b)              any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Lender,

 

on behalf of any Lender and each Lender confirms to the Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or the Arranger.

 

38.10.5     Without prejudice to any provision of any Finance Document excluding or limiting the Agent’s liability, any liability of the Agent arising under or in 

 

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                   connection with any Finance Document or the Transaction Security shall be limited to the amount of actual loss which has been finally judicially determined to have been suffered (as determined by reference to the date of default of the Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent at any time which increase the amount of that loss.  In no event shall the Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Agent has been advised of the possibility of such loss or damages.

 

38.11         Lenders’ indemnity to the Agent

 

38.11.1     Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 41.11 (Disruption to Payment Systems etc.) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

38.11.2     Subject to Clause 38.11.3 below, the Borrower shall immediately on demand reimburse any Lender for any payment that Lender makes to the Agent pursuant to Clause 38.11.1 above.

 

38.11.3     Clause 38.11.2 above shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability of the Agent to an Obligor.

 

38.12         Resignation of the Agent

 

38.12.1     The Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor by giving notice to the Lenders and the Company.

 

38.12.2     Alternatively the Agent may resign by giving 30 days notice to the Lenders and the Company, in which case the Majority Lenders (after consultation with the Company) may appoint a successor Agent.

 

38.12.3     If the Majority Lenders have not appointed a successor Agent in accordance with Clause 38.12.2 above within 20 days after notice of resignation was given, the retiring Agent (after consultation with the Company) may appoint a successor Agent (acting through an office in the United Kingdom).

 

38.12.4     If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is entitled to appoint a successor Agent under Clause 38.12.3 above, the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent to become a party to this Agreement as Agent) agree with the proposed successor Agent amendments to this Clause 38 and any other term of this Agreement dealing with the rights or obligations of the 

 

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                   Agent consistent with then current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent’s normal fee rates and those amendments will bind the Parties.

 

38.12.5     The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

38.12.6     The Agent’s resignation notice shall only take effect upon the appointment of a successor.

 

38.12.7     Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under Clause 38.12.5 above) but shall remain entitled to the benefit of Clause 26.3 (Indemnity to the Agent) and this Clause 38 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).  Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

38.12.8     After consultation with the Company, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with Clause 38.12.2 above.  In this event, the Agent shall resign in accordance with Clause 38.12.2 above.

 

38.12.9     The Agent shall resign in accordance with Clause 38.12.2 above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to Clause 38.12.2 above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

 

(a)              the Agent fails to respond to a request under Clause 24.8 (FATCA Information) and a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

(b)              the information supplied by the Agent pursuant to Clause 24.8 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

(c)              the Agent notifies the Company and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date,

 

and (in each case) a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and that Lender, by notice to the Agent, requires it to resign.

 

38.13         Replacement of the Agent

 

38.13.1     After consultation with the Parent, the Majority Lenders may, by giving 30 days’ notice to the Agent, (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders) replace the Agent by appointing a successor Agent (acting through an office in the United Kingdom).

 

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38.13.2               The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

38.13.3               The appointment of the successor Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent. As from this date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under Clause 38.13.2 above) but shall remain entitled to the benefit of Clause 26.3 (Indemnity to the Agent) and this Clause 29 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).

 

38.13.4               Any successor Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

38.14                          Confidentiality

 

38.14.1               In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

38.14.2               If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

 

38.15                          Relationship with the Lenders

 

38.15.1               Subject to Clause 35.10 (Pro rata interest settlement), the Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:-

 

(a)                                          entitled to or liable for any payment due under any Finance Document on that day; and

 

(b)                                          entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

 

unless it has received not less than five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this Agreement,

 

38.15.2               Each Lender shall supply the Agent with any information that the Security Agent may reasonably specify (through the Agent) as being necessary or desirable to enable the Security Agent to perform its functions as Security Agent.  Each Lender shall deal with the Security Agent exclusively through the Agent and shall not deal directly with the Security Agent.

 

38.15.3               Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 43.5 (Electronic 

 

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                                                        communication)) electronic mail address and/or any other information required to enable transmission of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address (or such other information), department and officer by that Lender for the purposes of Clause 43.2 (Addresses) and Clause 43.6.1 and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

 

38.16                          Credit appraisal by the Lenders and Ancillary Lenders

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender and Ancillary Lender confirms to the Agent, the Arranger and each Ancillary Lender that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:-

 

38.16.1               the financial condition, status and nature of each member of the Group;

 

38.16.2               the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and the Transaction Security and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security;

 

38.16.3               whether that Lender or Ancillary Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the Transaction Security, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security;

 

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

 

38.16.5               the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any of the Transaction Security or the existence of any Security affecting the Charged Property.

 

38.17                          Base Reference Banks

 

If a Base Reference Bank (or, if a Base Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (in consultation with the Company) appoint another Lender or an Affiliate of a Lender to replace that Base Reference Bank.

 

38.18                          Agent’s management time

 

38.18.1               Any amount payable to the Agent under Clause 26.3 (Indemnity to the Agent), Clause 28 (Costs and expenses) (other than Clause 28.1.1 to the extent any such amount relates to the negotiation, preparation, printing and execution of this Agreement or any other documents referred to in this Agreement or the 

 

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                                                        Transaction Security in each case where those other documents are, or the Transaction Security is, dated the same date as, or prior to the date of, this Agreement) and Clause 38.10.4 (Lenders’ indemnity to the Agent) shall include the cost of utilising the Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify to the Company and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 23 (Fees).

 

38.18.2               Any cost of utilising the Agent’s management time or other resources shall include, without limitation, any such costs in connection with Clause 36.2 (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates).

 

38.19                          Deduction from amounts payable by the Agent

 

38.19.1               If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

38.19.2               Any cost of utilising the Agent’s management time or other resources shall include, without limitation, any such costs in connection with Clause 36.2 (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates).

 

38.20                          Reliance and engagement letters

 

Each Finance Party and Secured Party confirms that each of the Arranger and the Agent has authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or reports already accepted by the Arranger or Agent) the terms of any reliance letter or engagement letters relating to the Reports or any reports or letters provided by accountants in connection with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it in respect of those Reports, reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.

 

39.                                        CONDUCT OF BUSINESS BY THE FINANCE PARTIES

 

No provision of this Agreement will:-

 

39.1.1                      interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

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

 

39.1.3                      oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

 

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40.                                        SHARING AMONG THE FINANCE PARTIES

 

40.1                                 Payments to Finance Parties

 

40.1.1                      Subject to Clause 40.1.2 below, if a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor other than in accordance with Clause 41 (Payment mechanics) (a “Recovered Amount”) and applies that amount to a payment due under the Finance Documents then:-

 

(a)                                          the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery, to the Agent;

 

(b)                                          the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 41 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

(c)                                           the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 41.5 (Partial payments).

 

40.1.2                      Clause 40.1.1 above shall not apply to any amount received or recovered by an Ancillary Lender in respect of any cash cover provided for the benefit of that Ancillary Lender.

 

40.2                                 Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the “Sharing Finance Parties”) in accordance with Clause 41.5 (Partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.

 

40.3                                 Recovering Finance Party’s rights

 

On a distribution by the Agent under Clause 40.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

 

40.4                                 Reversal of redistribution

 

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:-

 

40.4.1                      each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the “Redistributed Amount”); and

 

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40.4.2                      as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

 

40.5                                 Exceptions

 

40.5.1                      This Clause 40 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

 

40.5.2                      A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:-

 

(a)                                          it notified the other Finance Party of the legal or arbitration proceedings; and

 

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

 

40.6                                 Ancillary Lenders

 

40.6.1                      This Clause 40 shall not apply to any receipt or recovery by a Lender in its capacity as an Ancillary Lender at any time prior to service of notice under Clause 34.18 (Acceleration).

 

40.6.2                      Following service of notice under Clause 34.18 (Acceleration), this Clause 40 shall apply to all receipts or recoveries by Ancillary Lenders except to the extent that the receipt or recovery represents a reduction of the Gross Outstandings of a Multi-account Overdraft to or towards an amount equal to the Net Outstandings.

 

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SECTION 11

 

ADMINISTRATION

 

41.                                        PAYMENT MECHANICS

 

41.1                                 Payments to the Agent

 

41.1.1                      On each date on which an Obligor or a Lender is required to make a payment under a Finance Document excluding a payment under the terms of an Ancillary Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

41.1.2                      Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to euro, in a principal financial centre in such Participating Member State or London, as specified by the Agent) and with such bank as the Agent, in each case, specifies.

 

41.2                                 Distributions by the Agent

 

Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 41.3 (Distributions to an Obligor) and Clause 41.4 (Clawback) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days’ notice with a bank specified by that Party in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre of a Participating Member State or London as specified by that Party).

 

41.3                                 Distributions to an Obligor

 

The Agent may (with the consent of the Obligor or in accordance with Clause 42 (Set-Off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

41.4                                 Clawback

 

41.4.1                      Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

41.4.2                      Unless Clause 41.4.3 below applies, if the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

41.4.3                      If the Agent has notified the Lenders that it is willing to make available amounts for the account of a Borrower before receiving funds from the Lenders then if 

 

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                                                        and to the extent that the Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to that Borrower:

 

(a)                                          that Borrower shall on demand refund it to the Agent; and

 

(b)                                          the Lender by whom those funds should have been made available or, if that Lender fails to do so, that Borrower, shall on demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

 

41.5                                 Impaired Agent

 

41.5.1                      If, at any time, the Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with Clause 41.1(Payments to the Agent) may instead either:

 

(a)                                          pay that amount direct to the required recipient(s); or

 

(b)                                          if in its absolute discretion it considers that it is not reasonably practicable to pay that amount direct to the required recipient(s), pay that amount or the relevant part of that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment (the “Paying Party”) and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents (the “Recipient Party” or “Recipient Parties”).

 

In each case such payments must be made on the due date for payment under the Finance Documents.

 

41.5.2                      All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements.

 

41.5.3                      A Party which has made a payment in accordance with this Clause 41.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

 

41.5.4                      Promptly upon the appointment of a successor Agent in accordance with Clause 38.13 (Replacement of the Agent), each Paying Party (other than to the extent that the Party has given an instruction pursuant to Clause 41.5.5 below) shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance with Clause 41.2 (Distributions by the Agent).

 

41.5.5                      A Paying Party shall, promptly upon request by a Recipient Party and to the extent:

 

(a)                                          that it has not given an instruction pursuant to Clause 41.5.4 above; and

 

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(b)                                          that it has been provided with the necessary information by that Recipient Party,

 

give all requisite instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient Party.

 

41.6                                 Partial payments

 

41.6.1                      If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under those Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under those Finance Documents in the following order:-

 

(a)                                          first, in or towards payment pro rata of any unpaid amount owing to the Agent and the Security Agent under those Finance Documents;

 

(b)                                          secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under those Finance Documents;

 

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

 

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

 

41.6.2                      The Agent shall, if so directed by the Majority Lenders, vary the order set out in Clause 41.6.1(a) to (d) above.

 

41.6.3                      Clauses 41.6.1 and 41.6.2 above will override any appropriation made by an Obligor.

 

41.7                                 Set-off by Obligors

 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

41.8                                 Business Days

 

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

 

41.8.2                      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.

 

41.9                                 Currency of account

 

41.9.1                      Subject to Clauses 41.9.2 to 41.9.5 below, Sterling is the currency of account and payment for any sum due from an Obligor under any Finance Document.

 

41.9.2                      A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid Sum shall be made in the currency in which that Utilisation or Unpaid Sum is denominated pursuant to this Agreement on its due date.

 

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41.9.3       Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated pursuant to this Agreement when that interest accrued.

 

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

 

41.9.5       Any amount expressed to be payable in a currency other than Sterling shall be paid in that other currency.

 

41.10         Change of currency

 

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

 

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

 

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

 

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

 

41.11         Disruption to Payment Systems etc

 

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Company that a Disruption Event has occurred:-

 

41.11.1     the Agent may, and shall if requested to do so by the Company, consult with the Company with a view to agreeing with the Company such changes to the operation or administration of the Facility as the Agent may deem necessary in the circumstances;

 

41.11.2     the Agent shall not be obliged to consult with the Company in relation to any changes mentioned in Clause 41.11.1 if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

 

41.11.3     the Agent may consult with the Finance Parties in relation to any changes mentioned in Clause 41.11.1 but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

41.11.4     any such changes agreed upon by the Agent and the Company shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the 

 

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                   terms of the Finance Documents notwithstanding the provisions of Clause 47 (Amendments and Waivers);

 

41.11.5     the Agent shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 41.11; and

 

41.11.6     the Agent shall notify the Finance Parties of all changes agreed pursuant to Clause 41.11.4 above.

 

42.             SET-OFF

 

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

 

42.1.2       Any credit balances taken into account by an Ancillary Lender when operating a net limit in respect of any overdraft under an Ancillary Facility shall on enforcement of the Finance Documents be applied first in reduction of the overdraft provided under that Ancillary Facility in accordance with its terms.

 

43.             NOTICES

 

43.1           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.

 

43.2           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:-

 

43.2.1       in the case of an Original Obligor, that identified with its name below;

 

43.2.2       in the case of each Lender, or each Ancillary Lender, that notified in writing to the Agent on or prior to the date on which it becomes a Party;

 

43.2.3       in the case of any other Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

 

43.2.4       in the case of the Agent or the Security Agent, that identified with its name below,

 

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

 

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43.3           Delivery

 

43.3.1       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 43.2 (Addresses), if addressed to that department or officer.

 

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

 

43.3.3       All notices from or to an Obligor shall be sent through the Agent.

 

43.3.4       Any communication or document made or delivered to the Company in accordance with this Clause 43.3 will be deemed to have been made or delivered to each of the Obligors.

 

43.3.5       Any communication or document which becomes effective, in accordance with Clauses 43.3.1 to 43.3.4, after 5:00pm, in the place of receipt shall be deemed only to become effective on the following day.

 

43.4           Notification of address and fax number

 

Promptly upon receipt of notification of an address or fax number or change of address or fax number pursuant to Clause 43.2 (Addresses) or changing its own address or fax number, the Agent shall notify the other Parties.

 

43.5           Communication when Agent is Impaired Agent

 

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices to be given to or by the relevant Parties directly. This provision shall not operate after a replacement Agent has been appointed.

 

43.6           Electronic communication

 

43.6.1       Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means (including, without limitation, by way of posting to a secure website) if those two Parties:

 

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(a)              notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

 

(b)              notify each other of any change to their address or any other such information supplied by them by not less than 5 Business Days’ notice.

 

43.6.2       Any such electronic communication as specified in Clause 43.6.1 to be made between an Obligor and a Finance Party may only be made in that way to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication.

 

43.6.3       Any such electronic communication as specified in Clause 43.6.1 made between any two Parties will be effective only when actually received (or made available) in readable form and in the case of any electronic communication made by a Party to the Agent or the Security Agent only if it is addressed in such a manner as the Agent or Security Agent shall specify for this purpose

 

43.6.4       Any electronic communication which becomes effective, in accordance with Clause 43.6.3, after 5.00pm in the place in which the Party to whom the relevant communication is sent or made available has its address for the purpose of this Agreement shall be deemed only to become effective on the following day.

 

43.6.5       Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 43.6.

 

43.7           Use of websites

 

43.7.1       The Company may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the “Website Lenders”) who accept this method of communication by posting this information onto an electronic website designated by the Company and the Agent (the “Designated Website”) if:-

 

(a)              the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;

 

(b)              both the Company and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and

 

(c)              the information is in a format previously agreed between the Borrower and the Agent.

 

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

 

43.7.2       The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Company and the Agent.

 

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43.7.3       The Company shall promptly upon becoming aware of its occurrence notify the Agent if:-

 

(a)              the Designated Website cannot be accessed due to technical failure;

 

(b)              the password specifications for the Designated Website change;

 

(c)              any new information which is required to be provided under this Agreement is posted onto the Designated Website;

 

(d)              any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

 

(e)              the Company becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

 

If the Company notifies the Agent under Clause 43.7.3(a) or Clause 43.7.3(e) above, all information to be provided by the Company under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.

 

43.7.4       Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website.  The Company shall at its own cost comply with any such request within ten Business Days.

 

43.8           English language

 

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

 

43.8.2       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 Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

44.             CALCULATIONS AND CERTIFICATES

 

44.1           Accounts

 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

 

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44.2           Certificates and determinations

 

Any certification or determination by a Finance Party 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.

 

44.3           Day count convention

 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days or, in any case where the practice in the Relevant Market differs, in accordance with that market practice.

 

45.             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.

 

46.             REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in exercising, on the part of any Finance Party or Secured Party, any right or remedy under the Finance Documents shall operate as a waiver of any such right or remedy or constitute an election to affirm any of the Finance Documents. No election to affirm any of the Finance Documents on the part of any Finance Party shall be effective unless it is in writing.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law.

 

47.             AMENDMENTS AND WAIVERS

 

47.1           Intercreditor Agreement

 

This Clause 47 is subject to the terms of the Intercreditor Agreement.

 

47.2           Required consents

 

47.2.1       Subject to Clause 47.3 (Exceptions) and Clause 47.4 (Other exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Company and any such amendment or waiver will be binding on all Parties.

 

47.2.2       The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 47.

 

47.2.3       Without prejudice to the generality of Clauses 38.7.3, 38.7.4 and 38.7.5 (Rights and discretions), the Agent may engage, pay for and rely on the services of lawyers in determining the consent level required for and effecting any amendment, waiver or consent under this Agreement.

 

47.2.4       Each Obligor agrees to any such amendment or waiver permitted by this Clause 47 which is agreed to by the Company.  This includes any amendment or waiver 

 

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                   which would, but for this Clause 47.2.4, require the consent of all of the Guarantors.

 

47.3           Exceptions

 

An amendment, waiver or (in the case of a Transaction Security Document) a consent of, or in relation to, any term of any Finance Document that has the effect of changing or which relates to:

 

47.3.1       the definition of “Majority Lenders” in Clause 10.1 (Definitions);

 

47.3.2       an extension to the date of payment of any amount under the Finance Documents;

 

47.3.3       a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

 

47.3.4       a change in currency of payment of any amount under the Finance Documents;

 

47.3.5       an increase in any Commitment or the Total Commitments, an extension of the Availability Period or any requirement that a cancellation of Commitments reduces the Commitments of the Lenders rateably;

 

47.3.6       a change to the Borrowers or Guarantors other than in accordance with Clause 37 (Changes to the Obligors);

 

47.3.7       any provision which expressly requires the consent of all the Lenders;

 

47.3.8       Clause 11.2 (Finance Parties’ rights and obligations), Clause 35 (Changes to the Lenders) or this Clause 47 (Amendments and Waivers), Clause 50 (Governing law) or Clause 51.1 (Jurisdiction of English courts);

 

47.3.9       (other than as expressly permitted by the provisions of any Finance Document) the nature or scope of:-

 

(a)              the guarantee and indemnity granted under Clause 29 (Guarantee and Indemnity);

 

(b)              the Charged Property; or

 

(c)              the manner in which the proceeds of enforcement of the Transaction Security are distributed

 

(except in the case of sub-clause (b) and sub-clause (c) above, insofar as it relates to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document);

 

47.3.10     the release of any guarantee and indemnity granted under Clause 29 (Guarantee and Indemnity) or of any Transaction Security unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document; or

 

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47.3.11     any amendment to the order of priority or subordination under the Intercreditor Agreement,

 

shall not be made without the prior consent of all the Lenders.

 

47.4           Other exceptions

 

47.4.1       An amendment or waiver which relates to the rights or obligations of the Agent, the Arranger, the Security Agent, any Ancillary Lender or a Hedge Counterparty (each in their capacity as such) may not be effected without the consent of the Agent, the Arranger, the Security Agent, that Ancillary Lender or, as the case may be, that Hedge Counterparty.

 

47.4.2       Any amendment or waiver which:

 

(a)              relates only to the rights or obligations applicable to a particular Utilisation or class of Lender; and

 

(b)              does not materially and adversely affect the rights or interests of Lenders in respect of any other Utilisation or another class of Lender,

 

may be made in accordance with this Clause 47 but as if references in this Clause 47 to the specified proportion of Lenders (including, for the avoidance of doubt, all the Lenders) whose consent would, but for this Clause 47.4.2, be required for that amendment or waiver were to that proportion of the Lenders participating in that particular Utilisation or forming part of that particular class.

 

47.5           Excluded Commitments

 

If any Defaulting Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote of Lenders under the terms of this Agreement within 5 Business Days (unless the Company agrees to a longer time period in relation to any request) of that request being made:

 

47.5.1       its Commitment(s) shall not be included for the purpose of calculating the Total Commitments when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total Commitments has been obtained to approve that request; and

 

47.5.2       its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request.

 

47.6           Disenfranchisement of Defaulting Lenders

 

47.6.1       For so long as a Defaulting Lender has any Available Commitment, in ascertaining:

 

(a)              the Majority Lenders; or

 

(b)              whether:

 

(i)               any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments; or

 

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(ii)              the agreement of any specified group of Lenders,

 

has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Lender’s Commitments will be reduced by the amount of its Available Commitments and, to the extent that that reduction results in that Defaulting Lender’s Total Commitments being zero, that Defaulting Lender shall be deemed not to be a Lender for the purposes of Clauses 47.6.1(a) and 47.6.1(b) above.

 

47.6.2       For the purposes of this Clause 47.6, the Agent may assume the following Lenders are Defaulting Lenders:-

 

(a)              any Lender which has notified the Agent that it has become a Defaulting Lender;

 

(b)              any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of “Defaulting Lender” has occurred,

 

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

47.7           Replacement of a Defaulting Lender

 

47.7.1       The Parent may, at any time a Lender has become and continues to be a Defaulting Lender, by giving 10 Business Days’ prior written notice to the Agent and such Lender:-

 

(a)              replace such Lender by requiring such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to Clause 35 (Changes to Lenders) all (and not part only) of its rights and obligations under this Agreement;

 

(b)              require such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to Clause 35 (Changes to Lenders) all (and not part only) of the undrawn Revolving Commitment of the Lender; or

 

(c)              require such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to Clause 35 (Changes to Lenders) all (and not part only) of its rights and obligations in respect of the Facility,

 

to a Lender or other bank, financial institution, trust, fund or other entity (a “Replacement Lender”) selected by the Parent, which is acceptable to the Agent and which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Lender in accordance with Clause 35 (Changes to the Lenders) for a purchase price in cash payable at the time of transfer which is either:

 

(d)              in an amount equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisations and all accrued interest (to the extent that the Agent has not given a notification under Clause 35.10 (Pro rata Interest Settlement), Break Costs and other amounts payable in relation thereto under the Finance Documents; or

 

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(e)              in an amount agreed between the Defaulting Lender, the Replacement Lender and the Borrower and which does not exceed the amount described in 47.7.1(d) above.

 

47.7.2       Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause shall be subject to the following conditions:-

 

(a)              the Parent shall have no right to replace the Agent or Security Agent;

 

(b)              neither the Agent nor the Defaulting Lender shall have any obligation to the Parent to find a Replacement Lender;

 

(c)              the transfer must take place no later than 10 days after the notice referred to in Clause 47.7.1 above;

 

(d)              in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents; and

 

(e)              the Defaulting Lender shall only be obliged to transfer its rights and obligations pursuant to Clause 47.7.2(a) once it is satisfied that it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to that transfer to the Replacement Lender.

 

47.7.3       The Defaulting Lender shall perform the checks described in Clause 47.7.2(e) above as soon as reasonably practicable following delivery of a notice referred to in Clause 47.7.1 above and shall notify the Agent and the Borrower when it is satisfied that it has complied with those checks.

 

48.             CONFIDENTIALITY

 

48.1           Confidential Information

 

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 48.2 (Disclosure of Confidential Information) and Clause 48.3 (Disclosure to numbering service providers), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

48.2           Disclosure of Confidential Information

 

Any Finance Party may disclose:-

 

48.2.1       to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this Clause 48.2.1 is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

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48.2.2                      to any person:-

 

(a)                                          to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as Agent or Security Agent and, in each case, to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(b)                                          with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(c)                                           appointed by any Finance Party or by a person to whom Clause 48.2.2 or (a) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under Clause 38.15.3);

 

(d)                                          who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in Clause 48.2.2 or 48.2.2(a) above;

 

(e)                                           to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(f)                                            to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 35.9 (Security over Lenders’ rights);

 

(g)                                           to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(h)                                          who is a Party; or

 

(i)                                              with the consent of the Company;

 

in each case, such Confidential Information as that Finance Party shall consider appropriate;

 

(i)                                              in relation to Clauses 48.2.2, 48.2.2(a) and 48.2.2(c) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

(ii)                                           in relation to Clause 48.2.2(d) above, the person to whom the Confidential Information is to be given has entered into a

 

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                                                         Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

 

(iii)                                        in relation to Clauses 48.2.2(e), 48.2.2(f) and 48.2.2(g) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

 

48.2.3                      to any person appointed by that Finance Party or by a person to whom Clause 48.2.2 or 48.2.2(a) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this Clause 48.2.3 if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Company and the relevant Finance Party;

 

48.2.4                      Confidential Information to the extent necessary in order to perfect or preserve any rights under the Transaction Security;

 

48.2.5                      to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Obligors if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information; and

 

48.2.6                      to any investor or a potential investor in a securitisation (or similar transaction of broadly equivalent economic effect) of that Finance Party’s rights or obligations under the Finance Documents the size and term of the Facility and the name of each of the Obligors.

 

48.3                                 Disclosure to numbering service providers

 

48.3.1                      Notwithstanding any other term of any Finance Document or any other agreement between the Parties to the contrary (whether express or implied), any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information:-

 

(a)                                          names of Obligors;

 

(b)                                          country of domicile of Obligors;

 

(c)                                           place of incorporation of Obligors;

 

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(d)                                          date of this Agreement, the First Amendment and Restatement Agreement and the Second Amendment and Restatement Agreement;

 

(e)                                           Clause 50 (Governing law);

 

(f)                                            the names of the Agent and the Arranger;

 

(g)                                           date of each subsequent amendment and restatement of this Agreement;

 

(h)                                          amounts of, and names of, the Facility (and any tranches);

 

(i)                                              amount of Total Commitments;

 

(j)                                             currencies of the Facility;

 

(k)                                          type of Facility;

 

(l)                                              ranking of the Facility;

 

(m)                                      Termination Date for Facility;

 

(n)                                          changes to any of the information previously supplied pursuant to sub-clauses (a) to (m) above; and

 

(o)                                          such other information agreed between such Finance Party and the Company,

 

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.

 

48.3.2                      The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

 

48.3.3                      Each Obligor represents that none of the information set out in sub-clauses (a) to (o) of Clause 48.3.1 above is, nor will at any time be, unpublished price-sensitive information.

 

48.3.4                      The Agent shall notify the Company and the other Finance Parties of:-

 

(a)                                          the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Facility and/or one or more Obligors; and

 

(b)                                          the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or one or more Obligors by such numbering service provider.

 

48.4                                 Entire agreement

 

This Clause 48 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding

 

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Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

48.5                                 Inside information

 

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

48.6                                 Notification of disclosure

 

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Company:-

 

48.6.1                      of the circumstances of any disclosure of Confidential Information made pursuant to Clause 48.2.2(e) except where such disclosure is made to any of the persons referred to in that sub-clause during the ordinary course of its supervisory or regulatory function; and

 

48.6.2                      upon becoming aware that Confidential Information has been disclosed in breach of this Clause 48 (Confidentiality).

 

48.7                                 Continuing obligations

 

The obligations in this Clause 48 (Confidentiality) are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve months from the earlier of:-

 

48.7.1                      the date on which all amounts payable by the Obligors under or in connection with the Finance Documents have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

 

48.7.2                      the date on which such Finance Party otherwise ceases to be a Finance Party.

 

49.                                        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.

 

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SECTION 12

 

GOVERNING LAW AND ENFORCEMENT

 

50.                                        GOVERNING LAW

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

51.                                        ENFORCEMENT

 

51.1                                 Jurisdiction of English courts

 

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

 

51.1.2                      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.

 

51.1.3                      This Clause 51.1 is for the benefit of the Finance Parties and Secured Parties only.  As a result, no Finance Party or Secured Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Finance Parties and Secured Parties may take concurrent proceedings in any number of jurisdictions.

 

51.2                                 Service of process

 

51.2.1                      Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):-

 

(a)                                          irrevocably appoints the Company as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document and the Company by its execution of this Agreement, accepts that appointment); and

 

(b)                                          agrees that failure by an agent for service of process to notify the relevant Obligor of the process will not invalidate the proceedings concerned.

 

51.2.2                      If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, the Company (on behalf of all the Obligors) must immediately (and in any event within 5 days of such event taking place) appoint another agent on terms acceptable to the Agent.  Failing this, the Agent may appoint another agent for this purpose.

 

51.2.3                      The Company expressly agrees and consents to the provisions of this Clause 51 and Clause 50 (Governing law).

 

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

 

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THE ORIGINAL PARTIES

 

PART 1

 

THE ORIGINAL OBLIGORS

 

	
Name of Original Borrower
    	
 
    	
Registration number
   (or equivalent, if any)
    	
 
    	
Original Jurisdiction
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Group Limited
    	
 
    	
2883766
    	
 
    	
England and Wales
    	
 
    

 

	
Name of Original Guarantor
    	
 
    	
Registration number
   (or equivalent, if any)
    	
 
    	
Original Jurisdiction
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UAG UK Holdings Limited 
    	
 
    	
4334322
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Group Limited
    	
 
    	
2883766
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Cars Limited
    	
 
    	
2832086
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Limited
    	
 
    	
813696
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Holdings Limited
    	
 
    	
2681878
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Goodman Retail Limited
    	
 
    	
3097514
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
R Stratton & Co Limited
    	
 
    	
2696872
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cruickshank Motors Limited
    	
 
    	
1837492
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Graypaul Motors Limited
    	
 
    	
3079284
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Automotive Limited
    	
 
    	
1979805
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
William Jacks Limited
    	
 
    	
215293
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
William Jacks Properties Limited
    	
 
    	
1120920
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ryland Group Limited
    	
 
    	
4813103
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rydnal Limited
    	
 
    	
4814756
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ryland Investments Limited
    	
 
    	
491856
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rycroft Vehicles Limited
    	
 
    	
248481
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Retail Limited
    	
 
    	
833930
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ryland Group Services Limited
    	
 
    	
1356615
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ryland Properties Limited
    	
 
    	
2286173
    	
 
    	
England and Wales
    	
 
    

 

159

 

	
John Fox Limited
    	
 
    	
1359925
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Edmond & Milburn Limited
    	
 
    	
3008457
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Vehicles Limited
    	
 
    	
7089922
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Properties Limited
    	
 
    	
3611990
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maranello Holdings Limited 
    	
 
    	
2001186
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maranello Concessionaires Limited 
    	
 
    	
655104
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maranello Sales Limited 
    	
 
    	
1443371
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Goodman TPS Limited 
    	
 
    	
6821483
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Guy Salmon Limited 
    	
 
    	
3574418
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mar Parts Limited 
    	
 
    	
827692
    	
 
    	
England and Wales
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agnew Trade Centre Limited
    	
 
    	
NI020615
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agnew Retail Limited
    	
 
    	
NI610593
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Isaac Agnew (Holdings) Limited
    	
 
    	
NI000668
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trade Parts Specialist (NI) Limited
    	
 
    	
NI064523
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
I A P C B Limited
    	
 
    	
NI020068
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bavarian Garages (NI) Limited
    	
 
    	
NI013932
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agnew Commercials Limited
    	
 
    	
NI013173
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Stanley Motor Works (1932) Limited
    	
 
    	
NI000727
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agnew Corporate Ltd
    	
 
    	
NI011916
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Isaac Agnew (Mallusk) Limited
    	
 
    	
NI014730
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Isaac Agnew Limited
    	
 
    	
NI010842
    	
 
    	
Northern Ireland
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agnew Autoexchange Limited
    	
 
    	
NI012734
    	
 
    	
Northern Ireland
    	
 
    

 

160

 

THE ORIGINAL LENDERS - OTHER THAN UK NON-BANK LENDERS

 

	
Name of Original Lender
    	
 
    	
Commitment
    	
 
    	
Treaty Passport scheme
   reference number and
   jurisdiction of tax residence
   (if applicable)
    
	
National Westminster Bank Plc
    	
 
    	
£
    	
75,000,000
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
						

 

161

 

THE ORIGINAL LENDERS - UK NON-BANK LENDERS

 

	
Name of Original Lender
    	
 
    	
Commitment
    
	
BMW Financial Services (GB) Limited
    	
 
    	
£
    	
75,000,000
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

162

 

CONDITIONS PRECEDENT

 

PART 1

 

CONDITIONS PRECEDENT TO SIGNING OF THE AGREEMENT

 

1.                                               Obligors

 

1.1                                        A copy of the constitutional documents of each Original Obligor.

 

1.2                                        A copy of a resolution of the board of directors of each Original Obligor:-

 

1.2.1                             approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and perform the Finance Documents to which it is a party;

 

1.2.2                             authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf;

 

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

 

1.2.4                             in the case of an Obligor other than the Company, authorising the Company to act as its agent in connection with the Finance Documents.

 

1.3                                        A specimen of the signature of each person authorised by the resolution referred to in paragraph 1.2 above in relation to the Finance Documents and related documents.

 

1.4                                        A copy of a resolution signed by all the holders of the issued shares in each Original Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Original Guarantor is a party.

 

1.5                                        A copy of a resolution of the board of directors of each corporate shareholder of each Original Guarantor (other than the Parent) approving the terms of the resolution referred to in paragraph 1.4 above.

 

1.6                                        A certificate of the Company (signed by a director) confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on any Original Obligor to be exceeded.

 

1.7                                        A certificate of an authorised signatory of the Company or other relevant Original Obligor certifying that each copy document relating to it specified in this Part 1 of Schedule 5 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of this Agreement.

 

2.                                               Finance Documents

 

2.1                                        The Intercreditor Agreement executed by the members of the Group party to that Agreement.

 

2.2                                        This Agreement executed by the members of the Group party to this Agreement.

 

163

 

2.3                                        The Fee Letters executed by the Company.

 

2.4                                        The Vehicle Financier Deeds of Priority executed by BMW Financial Services (GB) Limited and Volkswagen Financial Services (UK) Limited and Volkswagen Bank GmbH (trading as Volkswagen Bank United Kingdom Branch) and the other parties to those deeds (incorporating the consent of the relevant vehicle financier to the creation and subsistence of the Transaction Security Documents).

 

2.5                                        A consent letter executed by Mercedes-Benz Bank AG UK Branch (“MB”) pursuant to which MB consents to the creation and subsistence of the Transaction Security Documents.

 

2.6                                        At least two originals of the following Transaction Security Documents executed by the Original Obligors specified below opposite the relevant Transaction Security Document:-

 

	
Name of Original Obligor
    	
 
    	
Transaction Security Document
    
	
 
    	
 
    	
 
    
	
All Original Obligors
    	
 
    	
Debenture
    

 

2.7                                       A copy of all notices required to be sent under the Transaction Security Documents executed by the relevant Obligors duly acknowledged by the addressee.

 

2.8                                        A copy of all share certificates, transfers and stock transfer forms or equivalent duly executed by the relevant Obligor in blank in relation to the assets subject to or expressed to be subject to the Transaction Security and other documents of title to be provided under the Transaction Security Documents.

 

3.                                               Insurance

 

3.1                                        A letter from Cooke & Mason Plc insurance broker dated the date of this Agreement addressed to the Agent, the Arrangers, the Security Agent and the Lenders listing the insurance policies of the Group and confirming that they are on risk and that the insurance for the Group at the date of this Agreement is at a level acceptable to the Majority Lenders and covering appropriate risks for the business carried out by the Group.

 

3.2                                        Written evidence that the insurance policy(ies) relating to the Charged Property contain (in form and substance reasonably satisfactory to the Security Agent) an endorsement naming the Security Agent as joint loss payee.

 

4.                                               Legal opinions

 

A legal opinion of Pinsent Masons LLP, legal advisers to the Agent and the Arranger as to English law substantially in the form distributed to the Original Lenders prior to signing this Agreement and addressed to the Agent, the Security Agent and the Original Lenders and capable of being relied upon by the Original Lenders.

 

5.                                               Other documents and evidence

 

5.1                                        The Group Structure Chart (to include details of Dormant Subsidiaries).

 

5.2                                        The Budget.

 

5.3                                        A copy, certified by an authorised signatory of the Company to be a true copy, of the Original Financial Statements of each Obligor.

 

164

 

5.4                                        A certificate signed by an authorised signatory of the Company confirming which companies within the Group are Material Companies and that the aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA, as defined in Clause 32 (Financial Covenants)) and the aggregate gross assets, the aggregate net assets and aggregate turnover of the Original Guarantors (other than the Parent) (in each case calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 90% of the Consolidated EBITDA (as defined in Clause 32 (Financial Covenants)) and consolidated gross assets, consolidated net assets and consolidated turnover of the Group.

 

5.5                                        A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable (if it has notified the Company accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

 

5.6                                        Evidence that the fees, costs and expenses then due from the Company pursuant to Clause 23 (Fees), Clause 23.5 (Interest, commission and fees on Ancillary Facilities), Clause 24.6 (Stamp taxes) and Clause 28 (Costs and expenses) have been paid or will be paid by the first Utilisation Date.

 

5.7                                        Utilisation Requests relating to any Utilisations to be made on the Closing Date.

 

5.8                                        A deed of release in respect of the general charge dated 16 August 1993 granted by Sytner Limited in favour of BMW Finance (GB) Limited.

 

5.9                                        A deed of release in respect of the legal charge dated 28 July 2009 granted by Sytner Cars Limited in favour of Porsche Financial Services Great Britain Limited.

 

5.10                                 Companies House Forms MG02 in relation to the following charges:-

 

5.10.1                      General charge dated 30 September 1994 granted by John Fox Limited in favour of Volkswagen Financial Services (UK) Limited;

 

5.10.2                      Debenture dated 19 December 1995 granted by Sytner Holdings Limited in favour of Saab Finance Limited;

 

5.10.3                      Charge over deposit dated 7 March 2002 granted by the Parent in favour The Royal Bank of Scotland plc (as issuing bank); and

 

5.10.4                      General charge dated 16 August 1993 granted by Sytner Limited in favour of BMW Finance (GB) Limited.

 

5.10.5                      Legal charge dated 28 July 2009 granted by Sytner Cars Limited in favour of Porsche Financial Services Great Britain Limited

 

165

 

CONDITIONS PRECEDENT REQUIRED TO BE DELIVERED BY AN ADDITIONAL OBLIGOR

 

1.                                               An Accession Deed executed by the Additional Obligor and the Company.

 

2.                                               A copy of the constitutional documents of the Additional Obligor.

 

3.                                               A copy of a resolution of the board of directors of the Additional Obligor:-

 

3.1                                        approving the terms of, and the transactions contemplated by, the Accession Deed and the Finance Documents and resolving that it execute, deliver and perform the Accession Deed and any other Finance Document to which it is party;

 

3.2                                        authorising a specified person or persons to execute the Accession Deed and other Finance Documents on its behalf;

 

3.3                                        authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices (including, in relation to an Additional Borrower or any Utilisation Request to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party; and

 

3.4                                        authorising the Company to act as its agent in connection with the Finance Documents.

 

4.                                               If applicable, a copy of a resolution of the board of directors of the Additional Obligor, establishing the committee referred to in paragraph 3 above.

 

5.                                               A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above.

 

6.                                               A copy of a resolution signed by all the holders of the issued shares of the Additional Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Guarantor is a party.

 

7.                                               A copy of a resolution of the board of directors of each corporate shareholder of each Additional Guarantor approving the terms of the resolution referred to in paragraph 6 above.

 

8.                                               A certificate of the Additional Obligor (signed by a director) confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on it to be exceeded.

 

9.                                               A certificate of an authorised signatory of the Additional Obligor certifying that each copy document listed in this Part 2 of Schedule 5 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of the Accession Deed.

 

10.                                        If available, the latest audited financial statements of the Additional Obligor.

 

11.                                        The following legal opinions, each addressed to the Agent, the Security Agent and the Lenders:-

 

11.1                                 A legal opinion of the legal advisers to the Agent in England, as to English law in the form distributed to the Lenders prior to signing the Accession Deed.

 

11.2                                 If the Additional Obligor is incorporated in or has its “centre of main interest” or “establishment” (as referred to in Clause 30.28 (Centre of main interests and

 

166

 

                                                         establishments)) in a jurisdiction other than England and Wales or is executing a Finance Document which is governed by a law other than English law, a legal opinion of the legal advisers to the Agent in the jurisdiction of its incorporation, “centre of main interest” or “establishment” (as applicable) or, as the case may be, the jurisdiction of the governing law of that Finance Document (the “Applicable Jurisdiction”) as to the law of the Applicable Jurisdiction and in the form distributed to the Lenders prior to signing the Accession Deed.

 

12.                                        If the proposed Additional Obligor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in Clause 51.2 (Service of process), if not an Obligor, has accepted its appointment in relation to the proposed Additional Obligor.

 

13.                                        Any security documents which, subject to the Agreed Security Principles, are required by the Agent to be executed by the proposed Additional Obligor.

 

14.                                        Any notices or documents required to be given or executed under the terms of those security documents.

 

15.

 

15.1                                 If the Additional Obligor is incorporated in England and Wales, Scotland or Northern Ireland, evidence that the Additional Obligor has done all that is necessary (including, without limitation, by re-registering as a private company) to comply with sections 677 to 683 of the Companies Act 2006 in order to enable that Additional Obligor to enter into the Finance Documents and perform its obligations under the Finance Documents.

 

15.2                                 If the Additional Obligor is not incorporated in England and Wales, Scotland or Northern Ireland, such documentary evidence as legal counsel to the Agent may require, that such Additional Obligor has complied with any law in its jurisdiction relating to financial assistance or analogous process.

 

16.                                        A copy of any other authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Accession Deed or for the validity and enforceability of any Finance Document.

 

167

 

UTILISATION REQUEST

 

From:                        [Sytner Group Limited]*

To:                                      [Agent]

Dated:

 

Dear Sirs

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April 2015 (the “Facility Agreement”)

 

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

 

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

 

	
(a)
    	
 
    	
Borrower:
    	
 
    	
[                    ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(b)
    	
 
    	
Proposed Utilisation Date:
    	
 
    	
[                    ]   (or, if that is not a Business Day, the next Business Day)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(d)
    	
 
    	
Currency of Loan:
    	
 
    	
[                    ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(e)
    	
 
    	
Amount:
    	
 
    	
[                    ]   or, if less, the Available Facility
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(f)
    	
 
    	
Interest Period:
    	
 
    	
[                    ]
    

 

3.                                We confirm that each condition specified in Clause 13.2 (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
    	
 
    
	
 
    	
the Company
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
*
    	
 
    

 

168

 

SCHEDULE 7

 

FORM OF TRANSFER CERTIFICATE

 

To:                                      [                    ] as Agent and [                    ] as Security Agent

 

From:                        [The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

 

Dated:

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April 2015 (the “Facility Agreement”)

 

1.                                               We refer to the Facility Agreement.  This agreement (the “Agreement”) shall take effect as a Transfer Certificate for the purpose of the Facility Agreement.  Terms defined in the Facility Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2.                                               We refer to Clause 35.5 (Procedure for transfer) of the Facility Agreement:-

 

2.1                                        The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation and in accordance with Clause 35.5 (Procedure for transfer), all of the Existing Lender’s rights and obligations under the Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment(s) and participations in Utilisations under the Agreement as specified in the Schedule.

 

2.2                                        The proposed Transfer Date is [                    ].

 

2.3                                        The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 43.2 (Addresses) are set out in the Schedule.

 

3.                                               The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in Clause 35.4.3.

 

4.                                               The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:-

 

4.1                                        [a Qualifying Lender falling within paragraph (a)(i) [or paragraph (b)] of the definition of Qualifying Lender, (other than a Treaty Lender);]

 

4.2                                        [a Treaty Lender;]

 

4.3                                        [not a Qualifying Lender]*.

 

5.                                               [The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:-

 

5.1                                        a company resident in the United Kingdom for United Kingdom tax purposes;

 

5.2                                        a partnership each member of which is:-

 

5.2.1                             a company so resident in the United Kingdom; or

 

5.2.2                             a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into

 

169

 

                                                        account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

5.2.3                             a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]**

 

6.                                               [The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [      ]), and is tax resident in [            ]*** so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and requests that the Borrower notify that it wishes that scheme to apply to the Agreement.

 

****

 

[6/7].       The New Lender confirms that it [is]/[is not] a Sponsor Affiliate.

 

[7/8].       We refer to clause 20.3 (Assignment and transfer of Secured Liabilities) of the Intercreditor Agreement and confirm that the New Lender has executed a Deed of Accession (as defined in the Intercreditor Agreement).

 

[8/9].               This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

[9/10].        This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

[10/11].                                                 This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

Note:                  The execution of this Transfer Certificate may not transfer a proportionate share of the Existing Lender’s interest in the Transaction Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

 

NOTES:

 

*                                                  Delete as applicable — each New Lender is required to confirm which of these three categories it falls within.

 

**                                           Include if New Lender comes within paragraph (a)(ii) of the definition of Qualifying Lender in Clause 24.1

 

***                           Insert jurisdiction of tax residence

 

****                             Include if the New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Facility Agreement

 

170

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred

 

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for payments,]

 

	
[Existing Lender]
    	
[New Lender]
    
	
 
    	
 
    
	
By:
    	
By:
    

 

This Agreement is accepted as a Transfer Certificate for the purposes of the Facility Agreement by the Agent and the Transfer Date is confirmed as [                    ].

 

	
[Agent]
    
	
 
    
	
By:
    

 

171

 

FORM OF ASSIGNMENT AGREEMENT

 

To:                                      [                    ] as Agent and [                    ], [                    ] as Security Agent, [                    ] as Company, for and on behalf of each Obligor

 

From:                        [the Existing Lender] (the “Existing Lender”) and [the New Lender] (the “New Lender”)

 

Dated:

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April 2015 (the “Facility Agreement”)

 

1.                                               We refer to the Facility Agreement.  This is an Assignment Agreement.  This agreement (the “Agreement”) shall take effect as an Assignment Agreement for the purpose of the Facility Agreement.  Terms defined in the Facility Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2.                                              We refer to Clause 35.6 (Procedure for assignment) of the Facility Agreement:-

 

2.1                                        The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Facility Agreement, the other Finance Documents and in respect of the Transaction Security which correspond to that portion of the Existing Lender’s Commitments and participations in Utilisations under the Facility Agreement as specified in the Schedule.

 

2.2                                        The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitments and participations in Utilisations under the Facility Agreement specified in the Schedule.

 

2.3                                        The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph 2.2 above.*

 

3.                                               The proposed Transfer Date is [                    ].

 

4.                                               On the Transfer Date the New Lender becomes:-

 

4.1                                        Party to the relevant Finance Documents (other than the Intercreditor Agreement) as a Lender; and

 

4.2                                        Party to the Intercreditor Agreement as a Senior Lender.

 

5.                                               The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 43.2 (Addresses) are set out in the Schedule.

 

6.                                               The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in Clause 35.4.3.

 

7.                                               The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:-

 

172

 

7.1             [a Qualifying Lender falling within paragraph (a)(i) [or paragraph (b)] of the definition of Qualifying Lender, other than a Treaty Lender;]

 

7.2             [a Treaty Lender;]

 

7.3             [not a Qualifying Lender]. **

 

8.                [The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:-

 

8.1             a company resident in the United Kingdom for United Kingdom tax purposes; or

 

8.2             a partnership each member of which is:-

 

8.2.1          a company so resident in the United Kingdom; or

 

8.2.2          a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

8.3             a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]***

 

9.                [The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [    ] and is tax resident in [           ]****), so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax, and requests that the Borrower notify that it wishes that scheme to apply to the Agreement.

 

****

 

[10/11]    The New Lender confirms that it [is]/[is not]* a Sponsor Affiliate.

 

[11/12]    We refer to clause 20.3 (Assignment and transfer of Secured Liabilities) of the Intercreditor Agreement and confirm that the New Lender has executed a Deed of Accession (as defined in the Intercreditor Agreement).

 

[12/13]    This Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 35.7 (Copy of Transfer Certificate or Assignment Agreement to Company) to the Company (on behalf of each Obligor) of the assignment referred to in this Agreement.

 

[13/14]    This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

[14/15]    This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

* Delete as applicable.

 

173

 

[15/16]    This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

Note:      The execution of this Assignment Agreement may not transfer a proportionate share of the Existing Lender’s interest in the Transaction Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

 

NOTES:

 

*              If the Agreement is used in place of a Transfer Certificate in order to avoid a novation of rights/obligations for reasons relevant to a civil jurisdiction, local law advice should be sought to check the suitability of the Agreement due to the assumption of obligations contained in paragraph 2.3.  This issue should be addressed at Primary documentation stage.  This footnote is not intended to be included in the scheduled form of Agreement in the signed Facilities Agreement.

 

**           Delete as applicable — each New Lender is required to confirm which of these three categories it falls within

 

***            Include if New Lender comes within paragraph (a)(ii) of the definition of Qualifying Lender in Clause 24.1

 

****          Insert jurisdiction of tax residence

 

*****       Include if the New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Facility Agreement

 

174

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred by assignment, release and accession

 

[insert relevant details]

 

[Facility office address, fax number and attention details for notices and account details for payments]

 

	
[Existing Lender]
    	
[New Lender]
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
By:
    	
 
    

 

This Agreement is accepted as an Assignment Agreement for the purposes of the Facility Agreement by the Agent and the Transfer Date is confirmed as [                    ].

 

Signature of this Agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to in this Agreement, which notice the Agent receives on behalf of each Finance Party.

 

[Agent]

 

By:

 

175

 

FORM OF ACCESSION DEED

 

To:             [                    ] as Agent and [                    ] as Security Agent for itself and each of the other parties to the Intercreditor Agreement referred to below

 

From:        [Subsidiary] and [Company]

 

Dated:

 

Dear Sirs

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April 2015 (the “Facility Agreement”)

 

1.           We refer to the Facility Agreement.  This deed (the “Accession Deed”) shall take effect as an Accession Deed for the purposes of the Facility Agreement.  Terms defined in the Facility Agreement have the same meaning in paragraphs 1-3 of this Accession Deed unless given a different meaning in this Accession Deed.

 

2.           [Subsidiary] agrees to become an Additional [Borrower]/[Guarantor] and to be bound by the terms of the Facility Agreement and the other Finance Documents (other than the Intercreditor Agreement) as an Additional [Borrower]/[Guarantor] pursuant to Clause [37.2 (Additional Borrowers)]/[Clause 37.4 (Additional Guarantors)] of the Facility Agreement.  [Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number [                    ].

 

3.           [Subsidiary’s] administrative details for the purposes of the Facility Agreement and the Intercreditor Agreement are as follows:-

 

Address:

 

Fax No.:

 

Attention:

 

4.           [Subsidiary] (for the purposes of this paragraph 4, the “Acceding Debtor”) intends to [incur liabilities under the following documents]/[give a guarantee, indemnity or other assurance against loss in respect of liabilities under the following documents]:-

 

[Insert details (date, parties and description) of relevant documents]

 

the “Relevant Documents”.

 

IT IS AGREED as follows:-

 

(a)            Terms defined in the Intercreditor Agreement shall, unless otherwise defined in this Accession Deed, bear the same meaning when used in this paragraph 4.

 

(b)            The Acceding Debtor and the Security Agent agree that the Security Agent shall hold:-

 

(i)        [any Security in respect of liabilities created or expressed to be created pursuant to the Relevant Documents;

 

(ii)       all proceeds of that Security; and]

 

176

 

(iii)      all obligations expressed to be undertaken by the Acceding Debtor to pay amounts in respect of the liabilities to the Security Agent as trustee for the Syndicated Finance Parties (in the Relevant Documents or otherwise) and secured by the Transaction Security created in favour of the Security Agent together with all representations and warranties expressed to be given by the Acceding Debtor (in the Relevant Documents or otherwise) in favour of the Security Agent as trustee for the Syndicated Finance Parties,

 

on trust for the Syndicated Finance Parties on the terms and conditions contained in the Intercreditor Agreement.

 

(c)             The Acceding Debtor confirms that it intends to be party to the Intercreditor Agreement as an Obligor, undertakes to perform all the obligations expressed to be assumed by an Obligor under the Intercreditor Agreement, agrees that it shall be bound by all the provisions of the Intercreditor Agreement as if it had been an original party to the Intercreditor Agreement and confirms that it has executed a Deed of Accession (as defined in the Intercreditor Agreement).

 

(d)            [In consideration of the Acceding Debtor being accepted as an Intra-Group Lender for the purposes of the Intercreditor Agreement, the Acceding Debtor also confirms that it intends to be party to the Intercreditor Agreement as an Intra-Group Lender, undertakes to perform all the obligations expressed in the Intercreditor Agreement to be assumed by an Intra-Group Lender, agrees that it shall be bound by all the provisions of the Intercreditor Agreement, as if it had been an original party to the Intercreditor Agreement and confirms that it has executed a Deed of Accession (as defined in the Intercreditor Agreement).]

 

[4]/[5] This Accession Deed and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

THIS ACCESSION DEED has been signed on behalf of the Security Agent (for the purposes of paragraph 4 above only), signed on behalf of the Company and executed as a deed by [Subsidiary] and is delivered on the date stated above.

 

	
[Subsidiary]
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
[EXECUTED AS A DEED
    	
 
    	
)
    	
 
    
	
By: [Subsidiary])
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Director
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Director/Secretary
    	
 
    

 

177

 

OR

 

	
[EXECUTED AS A DEED
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: [Subsidiary]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature of Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name of Director
    
	
 
    	
 
    	
 
    
	
in the presence of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature of witness
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name of witness
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address of witness
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Occupation of witness]
    

 

The Company

 

	
 
    	
 
    	
[Company]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

By:

 

The Security Agent

 

[Full Name of Current Security Agent]

 

By:

 

Date:

 

178

 

FORM OF RESIGNATION LETTER

 

To:                                      [                    ] as Agent

 

From:                        [resigning Obligor] and [Company]

 

Dated:

 

Dear Sirs

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April  2015 (the “Facility Agreement”)

 

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

 

2.                                               Pursuant to [Clause 37.3 (Resignation of a Borrower)]/[Clause 37.5 (Resignation of a Guarantor)], we request that [resigning Obligor] be released from its obligations as a [Borrower]/[Guarantor] under the Facility Agreement and the Finance Documents (other than the Intercreditor Agreement).

 

3.                                               We confirm that:-

 

3.1                                        no Default is continuing or would result from the acceptance of this request; and

 

3.2                                        *[[this request is given in relation to a Third Party Disposal of [resigning Obligor];

 

3.3                                        [                    ]***

 

4.                                               This Resignation Letter and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

	
[Company]
    	
[resigning Obligor]
    
	
 
    	
 
    
	
By:
    	
By:
    

 

NOTES:

 

*                               Insert where resignation only permitted in case of a Third Party Disposal.

 

**                        Amend as appropriate, e.g. to reflect agreed procedure for payment of proceeds into a specified account.

 

***                 Insert any other conditions required by the Facility Agreement.

 

179

 

FORM OF COMPLIANCE CERTIFICATE

 

To:                                      [                    ] as Agent

 

From:                        [Company]

 

Dated:

 

Dear Sirs

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April  2015 (the “Facility Agreement”)

 

1.                                               We refer to the Facility Agreement.  This is a Compliance Certificate.  Terms defined in the Facility Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

2.                                               We confirm that:-

 

[Insert details of covenants to be certified].

 

[We confirm that the ratio of Consolidated Net Borrowings to Consolidated EBITDA is [ ]:1 and that, therefore, the Margin should be [                    ]%.]

 

3.                                               [We confirm that no Default is continuing.]**

 

4.                                               We confirm that the aggregate of the earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA, as defined in Clause 32 (Financial Covenants)) and the aggregate gross assets, aggregate net assets and aggregate turnover of the Guarantors (other than the Parent) (calculated on an unconsolidated basis and excluding all intra-group items and investments in Subsidiaries of any member of the Group) exceeds 90% of the Consolidated EBITDA, (as defined in Clause 32 (Financial Covenants)) and the consolidated gross assets, consolidated net assets and consolidated turnover of the Group.

 

	
Signed
    	
 
    	
 
    	
 
    
	
 
    	
Director Of [Company]
    	
Director of [Company]
    
	
 
    	
 
    	
 
    
	
Signed
    	
 
    	
 
    	
 
    
	
 
    	
Director Of [Parent]
    	
Director of [Parent]
    

 

[insert applicable certification language]**

 

*If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

 

180

 

	
 
    	
 
    
	
for and on behalf of
    	
 
    
	
[name of the Company’s Auditors](1)***
    	
 
    

 

** To be agreed with the Company’s Auditors and the Lenders (only to apply when a Default has occurred and is continuing as per Clause 31.2.3).

 

*** Only applicable if the Compliance Certificate accompanies the audited financial statements and is to be signed by the Auditors.  To be agreed with the Company’s auditor’s prior to signing the Agreement.

 

181

 

SCHEDULE 12

 

TIMETABLE

 

	
Delivery of a duly completed Utilisation Request (Clause 14.1 (Delivery of a Utilisation Request))
    	
 
    	
U-1

9.30am
    
	
 
    	
 
    	
 
    
	
Agent notifies the Lenders of the Loan in accordance with   Clause 14.4 (Lenders’ participation)
    	
 
    	
U-1

noon
    
	
 
    	
 
    	
 
    
	
LIBOR is fixed
    	
 
    	
Quotation Day

as of 11:00 a.m.
    

 

“U”                           =                                         date of utilisation.

 

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

 

182

 

SCHEDULE 13

 

AGREED SECURITY PRINCIPLES

 

1.                                               Considerations

 

In determining what Security will be provided in support of the Facility (and any related hedging arrangements in respect of the types of liabilities and/or risks which the are required to be hedged from time to time) the following matters will be taken into account.  Security shall not be created or perfected to the extent that it would:-

 

1.1                                        result in any breach of corporate benefit, financial assistance, fraudulent preference or thin capitalisation laws or regulations (or analogous restrictions) of any applicable jurisdiction;

 

1.2                                        result in a significant risk to the officers of the relevant grantor of Security of contravention of their fiduciary duties and/or of civil or criminal liability; or

 

1.3                                        result in costs that, in the opinion of the Agent, are disproportionate to the benefit obtained by the beneficiaries of that Security.

 

For the avoidance of doubt, in these Agreed Security Principles, “cost” includes, but is not limited to, income tax cost, registration taxes payable on the creation or enforcement or for the continuance of any Security, stamp duties, out-of-pocket expenses, and other fees and expenses directly incurred by the relevant grantor of Security or any of its direct or indirect owners, subsidiaries or Affiliates.

 

2.                                               Obligations to be Secured

 

2.1                                        Subject to 1 (Considerations) and to paragraph 2.2 below, the obligations to be secured are the Secured Obligations (as defined below).  The Security is to be granted in favour of the Security Agent on behalf of each Secured Party.

 

For ease of reference, the following definitions should, to the extent legally possible, be incorporated into each Transaction Security Document:-

 

“Secured Obligations” means all present and future obligations at any time due, owing or incurred by any member of the Group and by each Obligor to any Secured Party under the Finance Documents, both actual and contingent and whether incurred solely or jointly and as principal or surety or in any other capacity.

 

“Secured Parties” means the Security Agent, any Receiver or Delegate and each of the Agent, the Arrangers and the other Finance Parties from time to time but, in the case of each Agent, Arranger or other Finance Party, only if it is a party to the Intercreditor Agreement or (in the case of an Agent or any other Finance Party) has acceded to the Intercreditor Agreement, in the appropriate capacity, pursuant to clause 20.3 (Assignment and transfer of Secured Liabilities) of the Intercreditor Agreement.

 

2.2                                       The secured obligations will be limited:-

 

2.2.1                             to avoid any breach of corporate benefit, financial assistance, fraudulent preference, thin capitalisation rules or the laws or regulations (or analogous restrictions) of any applicable jurisdiction; and

 

2.2.2                             to avoid any risk to officers of the relevant member of the Group that is granting Transaction Security of contravention of their fiduciary duties and/or civil or criminal or personal liability.

 

183

 

3.                                               General

 

Where appropriate, defined terms in the Transaction Security Documents should mirror those in this Agreement.

 

The parties to this Agreement agree to negotiate the form of each Transaction Security Document in good faith and will ensure that all documentation required to be entered into as a condition precedent to first drawdown under this Agreement (or immediately thereafter) is in a finally agreed form as soon as reasonably practicable after the date of this Agreement.  The form of guarantee is set out in Clause 29 (Guarantee and Indemnity) of this Agreement and, with respect to any Additional Guarantor, is subject to any limitations set out in the Accession Deed applicable to such Additional Guarantor.

 

The Security shall, to the extent possible under local law, be enforceable on the occurrence of an Event of Default which has resulted in the Agent exercising any of its rights under Clauses 34.18.1, 34.18.2, 34.18.4 or 34.18.6 of this Agreement or, having exercised its rights under Clause 34.18.3 or Clause 34.18.5 of this Agreement or first making demand with respect to some or all of the utilisations or amounts outstanding under the Ancillary Facilities.

 

4.                                               Undertakings/Representations and Warranties

 

Any representations, warranties or undertakings which are required to be included in any Transaction Security Document shall reflect (to the extent to which the subject matter of such representation, warranty and undertaking is the same as the corresponding representation, warranty and undertaking in this Agreement) the commercial deal set out in this Agreement (save to the extent that Secured Parties’ local counsel deem it necessary to include any further provisions (or deviate from those contained in this Agreement) in order to protect or preserve the Security granted to the Secured Parties).

 

184

 

FORM OF INCREASE CONFIRMATION

 

To:                                      [                    ] as Agent, [                    ] as Security Agent and [                    ] as Parent, for and on behalf of each Obligor

 

From:                        [the Increase Lender] (the “Increase Lender”)

 

Dated:                    [                    ]

 

[Parent] - [                    ] Senior Facilities Agreement
 dated [                    ] (the “Facilities Agreement”)

 

1.                                               We refer to the Facilities Agreement and to the Intercreditor Agreement (as defined in the Facilities Agreement). This agreement (the “Agreement”) shall take effect as an Increase Confirmation for the purpose of the Facilities Agreement. Terms defined in the Facilities Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2.                                               We refer to Clause 11.2 (Increase) of the Facilities Agreement.

 

3.                                               The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the Schedule (the “Relevant Commitment”) as if it was an Original Lender under the Facilities Agreement.

 

4.                                               The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment is to take effect (the “Increase Date”) is  [                    ].

 

5.                                               On the Increase Date, the Increase Lender becomes:-

 

5.1                                        party to the relevant Finance Documents (other than the Intercreditor Agreement) as a Lender; and

 

5.2                                        party to the Intercreditor Agreement as a Senior Lender.

 

6.                                               The Facility Office and address, fax number and attention details for notices to the Increase Lender for the purposes of Clause 43.2 (Addresses) are set out in the Schedule.

 

7.                                               The Increase Lender expressly acknowledges the limitations on the Lenders’ obligations referred to in Clause 11.2.6.

 

8.                                               The Increase Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:-

 

8.1                                        [a Qualifying Lender (other than a Treaty Lender);]

 

8.2                                        [a Treaty Lender;]

 

8.3                                        [not a Qualifying Lender].**

 

9.                                               The Increase Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:-

 

9.1                                        a company resident in the United Kingdom for United Kingdom tax purposes; or

 

9.2                                        a partnership each member of which is:-

 

9.2.1                             a company so resident in the United Kingdom; or

 

185

 

9.2.2                             a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

9.2.3                             a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]***

 

10.                                        The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [  ]) and is tax resident in [    ]****, so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax, and requests that the Borrower notify that it wishes that scheme to apply to the Agreement.

 

*****

 

[10/11].          The Increase Lender confirms that it is not a Sponsor Affiliate.

 

[12/13].          We refer to clause 20.3 (Assignment and transfer of Secured Liabilities) of the Intercreditor Agreement and confirm that the Increase Lender has executed a Deed of Accession (as defined in the Intercreditor Agreement).

 

[13/14].          This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

[14/15].          This Agreement rand any non-contractual obligations arising out of or in connection with it] [is/are] governed by English law.

 

[15/16].          This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

Note: The execution of this Increase Confirmation may not be sufficient for the Increase Lender to obtain the benefit of the Transaction Security in all jurisdictions. It is the responsibility of the Increase Lender to ascertain whether any other documents or other formalities are required to obtain the benefit of the Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

 

Notes:

 

*                                         Only if increase in the Total Commitments.

 

**                                  Delete as applicable — each Increase Lender is required to confirm which of these three categories it falls within.

 

***                           Include only if New Lender is a UK Non-Bank Lender i.e. falls within paragraph (a)(ii) of the definition of Qualifying Lender in Clause 24.1

 

186

 

THE SCHEDULE

 

RELEVANT COMMITMENT/RIGHTS AND OBLIGATIONS TO BE ASSUMED BY THE INCREASE LENDER

 

[insert relevant details]

 

[Facility office address, fax number and attention details for notices and account details for payments]

 

[Increase Lender]

 

By:

 

This Agreement is accepted as an Increase Confirmation for the purposes of the Facilities Agreement by the Agent and the Increase Date is confirmed as [                    ].

 

Agent

 

By:

 

Security Agent

 

By:

 

NOTE:

 

187

 

SCHEDULE 15

 

FORMS OF NOTIFIABLE DEBT PURCHASE TRANSACTION NOTICE

 

PART 1

 

FORM OF NOTICE ON ENTERING INTO NOTIFIABLE DEBT PURCHASE TRANSACTION

 

To:                             [                    ] as Agent

 

From:               [The Lender]

 

Dated:           [                    ]

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April  2015 (the “Facility Agreement”)

 

1.                                               We refer to Clause 36.2.2 of the Facility Agreement.  Terms defined in the Facility Agreement have the same meaning in this notice unless given a different meaning in this notice.

 

2.                                               We have entered into a Notifiable Debt Purchase Transaction.

 

3.                                               The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

 

	
Commitment
    	
 
    	
Amount of our Commitment to which Notifiable Debt   Purchase Transaction relates
    

 

[Lender]

 

By:

 

188

 

FORM OF NOTICE ON TERMINATION OF NOTIFIABLE DEBT PURCHASE TRANSACTION/NOTIFIABLE DEBT PURCHASE TRANSACTION CEASING TO BE WITH SPONSOR AFFILIATE

 

To:                             [                    ] as Agent

 

From:               [The Lender]

 

Dated:           [                    ]

 

Sytner Group Limited — £150,000,000 Facility Agreement dated 16 December 2011 as amended and restated on 19 December 2014 and as further amendment and restated on 2 April  2015 (the “Facility Agreement”)

 

1.                                               We refer to Clause 36.2.3 of the Facility Agreement.  Terms defined in the Facility Agreement have the same meaning in this notice unless given a different meaning in this notice.

 

2.                                               A Notifiable Debt Purchase Transaction which we entered into and which we notified you of in a notice dated [                    ] has (terminated]/[ceased to be with a Sponsor Affiliate].*

 

3.                                               The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

 

	
Commitment
    	
 
    	
Amount of our Commitment to which Notifiable   Debt Purchase Transaction relates
    

 

[Lender]

 

By:

 

* Delete as applicable.

 

189

 

SCHEDULE 16

 

FRANCHISES

 

	
SYTNER BMW/MINI Nottingham
    	
 
    	
GUY SALMON LANDROVER Northampton
    
	
SYTNER BMW/MINI Leicester
    	
 
    	
GUY SALMON LANDROVER Sheffield
    
	
SYTNER BMW/MINI Sheffield
    	
 
    	
GUY SALMON LANDROVER Coventry
    
	
SYTNER BMW/MINI Solihull
    	
 
    	
GUY SALMON LANDROVER Stratford
    
	
SYTNER BMW/MINI Coventry
    	
 
    	
GUY SALMON LANDROVER Knutsford
    
	
SYTNER BMW/MINI City
    	
 
    	
GUY SALMON LANDROVER Wakefield
    
	
SYTNER BMW/MINI High Wycombe
    	
 
    	
GUY SALMON LANDROVER Stockport
    
	
SYTNER BMW/MINI Chigwell
    	
 
    	
TOLLBAR VOLVO Warwick
    
	
SYTNER BMW/MINI Harold Wood
    	
 
    	
AUDI Leeds
    
	
SYTNER BMW/MINI Sunningdale
    	
 
    	
AUDI Wakefield
    
	
SYTNER ROLLS ROYCE Sunningdale
    	
 
    	
AUDI Bradford
    
	
MERCEDES-BENZ OF Bristol
    	
 
    	
AUDI Harrogate
    
	
MERCEDES-BENZ OF WSM
    	
 
    	
AUDI Slough
    
	
MERCEDES-BENZ OF Newbury
    	
 
    	
AUDI Reading
    
	
MERCEDES-BENZ OF Swindon
    	
 
    	
AUDI West London
    
	
MERCEDES-BENZ OF Bath
    	
 
    	
AUDI Victoria
    
	
MERCEDES-BENZ OF Gloucester
    	
 
    	
LEXUS Leicester
    
	
MERCEDES-BENZ OF Milton Keynes
    	
 
    	
LEXUS Bristol
    
	
MERCEDES-BENZ OF Northampton
    	
 
    	
LEXUS Milton Keynes
    
	
MERCEDES-BENZ OF Bedford
    	
 
    	
GRAYPAUL FERRARI/MASERATI Nottingham
    
	
GUY SALMON JAGUAR Thames Ditton
    	
 
    	
GRAYPAUL FERRARI/MASERATI Edinburgh
    
	
GUY SALMON JAGUAR Ascot
    	
 
    	
PORSCHE CENTRE Mid-Sussex
    
	
GUY SALMON JAGUAR Maidstone
    	
 
    	
PORSCHE CENTRE Silverstone
    
	
GUY SALMON LANDROVER Thames Ditton
    	
 
    	
PORSCHE CENTRE Edinburgh
    
	
GUY SALMON LANDROVER Ascot
    	
 
    	
PORSCHE CENTRE Glasgow
    
	
GUY SALMON LANDROVER Maidstone
    	
 
    	
BENTLEY Manchester
    

 

190

 

	
GUY SALMON LANDROVER Portsmouth
    	
 
    	
BENTLEY Birmingham
    
	
HONDA Redhill
    	
 
    	
BENTLEY Edinburgh
    
	
GUY SALMON JAGUAR Coventry
    	
 
    	
MERCEDES-BENZ Newcastle
    
	
GUY SALMON JAGUAR Northampton
    	
 
    	
MERCEDES-BENZ Sunderland
    
	
AUDI Huddersfield
    	
 
    	
MERCEDES-BENZ Carlisle
    
	
VW Huddersfield
    	
 
    	
MERCEDES-BENZ Stockton
    
	
VW Harrogate
    	
 
    	
SYTNER BMW/MINI Birmingham
    
	
VW Leeds
    	
 
    	
SYTNER BMW/MINI Sutton
    
	
VW Skipton
    	
 
    	
SYTNER BMW/MINI Oldbury
    
	
SEAT Huddersfield
    	
 
    	
SYTNER BMW/MINI Cardiff
    
	
AUDI Derby
    	
 
    	
SYTNER BMW/MINI Newport
    
	
FERRARI Birmingham
    	
 
    	
SYTNER BMW/MINI Maidenhead
    
	
FERRARI Egham
    	
 
    	
BENTLEY Leicester
    
	
GUY SALMON LANDROVER Bristol
    	
 
    	
PORSCHE Leicester
    
	
AUDI Nottingham
    	
 
    	
PORSCHE Solihull
    
	
AUDI Leicester
    	
 
    	
HONDA Gatwick
    

 

191

 

EXISTING SECURITY DOCUMENTS

 

	
NAME OF OBLIGOR
    	
 
    	
DESCRIPTION OF DOCUMENT
    	
 
    	
PERSONS
   ENTITLED
    	
 
    	
DATE CHARGE
   CREATED
    
	
Rycroft Vehicles Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
20/10/2006
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
27/02/2007
    
	
Maranello Concessionaires Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
13/05/2008
    
	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
31/12/2013
    
	
Sytner Limited
    	
 
    	
Charge supplemental to a mortgage debenture dated 19/01/1976
    	
 
    	
National Westminster Bank plc
   National Westminster Bank plc
    	
 
    	
01/03/1988
   19/06/2009
    
	
 
    	
 
    	
Debenture
   Debenture
    	
 
    	
BMW Finance (GB) Limited (now known as BMW Financial Services (GB)   Limited)
    	
 
    	
11/11/1988
   31/12/2012
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
 
    
	
Sytner Retail Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
20/10/2006
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
27/02/2007
    
	
 
    	
 
    	
Debenture
    	
 
    	
BMW Finance (GB) Limited (now known as BMW Financial Services (GB)   Limited)
    	
 
    	
12/01/1988
    
	
John Fox Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
21/12/2007
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maranello Sales Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
13/05/2008
    
	
Cruickshank Motors Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
12/05/1995
    
	
 
    	
 
    	
Legal Mortgage
    	
 
    	
National Westminster Bank plc
    	
 
    	
30/01/1998
    
	
 
    	
 
    	
Floating charge over stock
    	
 
    	
Mercedes-Benz Finance Limited
    	
 
    	
29/12/1995
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
31/12/2012
    

 

192

 

	
Sytner Automotive Limited (formerly Sytner Coventry   Limited)
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
04/01/2006
    
	
 
    	
Deed of Assignment
    	
 
    	
BMW Finance (GB) Limited (now known as BMW Financial Services (GB)   Limited)
    	
 
    	
22/07/2002
    
	
Sytner Holdings Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/08/1999
    
	
R Stratton & Co Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
17/05/2003
    
	
Sytner Cars Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/01/1995
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Graypaul Motors Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
22/09/1995
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
31/12/2013
    
	
Goodman Retail Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
22/12/1995
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
31/12/2013
    
	
Goodman TPS Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
03/07/2009
    
	
Guy Salmon Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
19/06/1998
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/12/2014
    
	
Sytner Vehicles Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
23/12/2009
    
	
Ryland Investments Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
27/02/2007
    
	
Maranello Holdings Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
13/05/2008
    
	
William Jacks Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/07/2006
    
	
Mar Parts Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
13/05/2008
    
	
William Jacks Properties Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/07/2006
    
	
Ryland Group Services Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
27/02/2007
    

 

193

 

	
Ryland Properties Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
27/02/2007
    
	
Ryland Group Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
27/02/2007
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UAG UK Holdings Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
07/05/2003
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sytner Group Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/01/1995
    
	
 
    	
 
    	
Assignment of Life Policies
    	
 
    	
National Westminster Bank plc
    	
 
    	
15/09/1995
    
	
 
    	
 
    	
Keyman Insurance Assignment
    	
 
    	
National Westminster Bank plc
    	
 
    	
29/03/1996
    
	
 
    	
 
    	
Keyman Insurance Assignment
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/08/1999
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
24/01/2012
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
24/01/2012
    
	
Sytner Properties Limited
    	
 
    	
Legal Mortgage
    	
 
    	
National Westminster Bank plc
    	
 
    	
01/10/1998
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
03/07/2009
    
	
Rydnal Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
27/02/2007
    
	
Sandridge Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
25/07/1997
    
	
Sytner Finance Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
25/07/1997
    
	
Prophets (Gerrards Cross) Limited
    	
 
    	
Mortgage debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
31/08/1999
    
	
Sytner Properties (Grove Park) Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
03/07/2009
    
	
Sytner Direct Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
16/06/1998
    
	
 
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
07/05/2003
    
	
Goodman Derby Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
19/12/2008
    

 

194

 

	
Sytner Properties (Grove Park) Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
03/07/2009
    
	
Hallamshire Motor Company Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
30/12/1996
    
	
Michael Powles Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
19/12/2008
    
	
Kings Motors Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
25/05/1997
    
	
Sytner Finance Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
25/071997
    
	
Prophets (Gerrards Cross) Limited
    	
 
    	
Mortgage Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
31/08/1999
    
	
F.W. Mays & Co. Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
31/07/2006
    
	
Rectory Road Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
16/06/1986
    
	
Ascot Garage Co. Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank Plc
    	
 
    	
31/07/2006
    
	
Isaac Agnew (Holdings) Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
Agnew Retail Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
Agnew Trade Centre Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
Isaac Agnew Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
 
    	
 
    	
Deed of Assignment
    	
 
    	
BMW Financial Services (GB) Limited
    	
 
    	
31/12/2014
    
	
Isaac Agnew (Mallusk) Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
Agnew Corporate Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
 
    	
 
    	
Account Assignment
    	
 
    	
N.I.I.B. Group Limited
    	
 
    	
20/03/2013
    
	
 
    	
 
    	
Master Deed of Assignment
    	
 
    	
N.I.I.B. Group Limited
    	
 
    	
20/03/2013
    
	
Stanley Motor Works (1932) Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
Bavarian Garages (NI) Limited
    	
 
    	
Debenture
    	
 
    	
BMW Finance (GB) Limited
    	
 
    	
14/07/1989
    
	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    

 

195

 

	
Agnew Commercials Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
I A P C B Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    
	
Trade Parts Specialist (NI) Limited
    	
 
    	
Debenture
    	
 
    	
National Westminster Bank plc
    	
 
    	
24/01/2012
    

 

196

 

SIGNATURES

 

The Parent

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
UAG UK HOLDINGS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

The Obligors

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
UAG UK HOLDINGS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER GROUP LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
 
    
	
witness
    	
Director
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

197

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER CARS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER HOLDINGS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

198

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
GOODMAN RETAIL LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
R STRATTON & CO LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
CRUICKSHANK MOTORS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

199

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
GRAYPAUL MOTORS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER AUTOMOTIVE LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
WILLIAM JACKS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

200

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
WILLIAM JACKS PROPERTIES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
RYLAND GROUP LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
RYDNAL LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

201

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
RYLAND INVESTMENTS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
RYCROFT VEHICLES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER RETAIL LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

202

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
RYLAND GROUP SERVICES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
RYLAND PROPERTIES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
JOHN FOX LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

203

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
EDMOND & MILBURN LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER VEHICLES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
SYTNER PROPERTIES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

204

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
MARANELLO HOLDINGS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
MARANELLO CONCESSIONAIRES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
MARANELLO SALES LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

205

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
GOODMAN TPS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
GUY SALMON LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

 

	
EXECUTED (but not delivered   until the date
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
)
    	
/s/ Adam Collinson
    
	
MAR PARTS LIMITED
    	
)
    	
 
    
	
acting by a director in the presence of a
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    
	
Occupation: Personal Assistant
    	
 
    	
 
    
						

 

206

 

	
EXECUTED (but not delivered   until the date
    	
 
    	
)
    	
 
    
	
 hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
AGNEW TRADE CENTRE LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
AGNEW   RETAIL LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
ISAAC AGNEW   (HOLDINGS) LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
												

 

207

 

	
EXECUTED (but not delivered   until the date
    	
 
    	
)
    	
 
    
	
 hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
TRADE PARTS SPECIALIST (NI) LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
I A P C B   LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
BAVARIAN   GARAGES (NI) LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
												

 

208

 

	
EXECUTED (but not delivered   until the date
    	
 
    	
)
    	
 
    
	
 hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
AGNEW COMMERCIALS LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
STANLEY   MOTOR WORKS (1932) LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
AGNEW   CORPORATE LTD
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
												

 

209

 

	
EXECUTED (but not delivered   until the date
    	
 
    	
)
    	
 
    
	
 hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
ISAAC AGNEW (MALLUSK) LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
ISAAC AGNEW   LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but   not delivered until the date
    	
 
    	
)
    	
 
    
	
hereof) AS A DEED by
    	
 
    	
)
    	
/s/ Adam Collinson
    
	
AGNEW AUTOEXCHANGE   LIMITED
    	
 
    	
)
    	
 
    
	
acting by a director in the   presence of a 
    	
 
    	
Director
    
	
witness
    	
 
    	
 
    
	
Signature of Witness:
    	
/s/ Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of Witness:
    	
Helen Lilleyman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
2 Penman Way
    	
 
    	
 
    	
 
    
	
 
    	
Grove Park
    	
 
    	
 
    	
 
    
	
 
    	
Leicester
    	
 
    	
 
    	
 
    
	
 
    	
LE19 1ST
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Personal Assistant
    	
 
    	
 
    	
 
    
												

 

210

 

	
The Arranger
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but not delivered until   the date
    	
 
    	
 
    	
)
    
	
hereof) AS A DEED by
    	
 
    	
 
    	
)
    
	
as attorney for and on behalf of
    	
 
    	
 
    	
)
    
	
THE ROYAL BANK OF SCOTLAND PLC in
    	
 
    	
 
    	
) /s/ Chris Lewis
    
	
 the presence of:-
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    	
)
    
	
Signature of witness:
    	
/s/ Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of witness:
    	
Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Pinsent   Masons LLP
    	
 
    	
 
    	
 
    
	
 
    	
3   Colmore Circus
    	
 
    	
 
    	
 
    
	
 
    	
Birmingham
    	
 
    	
 
    	
 
    
	
 
    	
B4 6BH
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but not delivered   until the date 
    	
 
    	
 
    	
)
    
	
hereof) AS A DEED by
    	
 
    	
 
    	
)
    
	
BMW FINANCIAL SERVICES (GB) LIMITED
    	
 
    	
 
    	
)
    
	
acting by two directors or one director and the 
    	
 
    	
 
    	
) /s/ R.M. Jordan
    
	
secretary
    	
 
    	
 
    	
)Director
    
	
 
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    	
) /s/ Tobias Essig
    
	
 
    	
 
    	
 
    	
)Director/secretary
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
The Security Agent
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but not delivered   until the date 
    	
 
    	
 
    	
)
    
	
hereof) AS A DEED by
    	
 
    	
 
    	
)
    
	
as attorney for and on behalf of
    	
 
    	
 
    	
) /s/ Chris Lewis
    
	
THE ROYAL BANK OF SCOTLAND PLC in 
    	
 
    	
 
    	
)
    
	
the presence of:
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of witness:
    	
/s/ Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of witness:
    	
Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Pinsent   Masons LLP
    	
 
    	
 
    	
 
    
	
 
    	
3   Colmore Circus
    	
 
    	
 
    	
 
    
	
 
    	
Birmingham
    	
 
    	
 
    	
 
    
	
 
    	
B4 6BH
    	
 
    	
 
    	
 
    
							

 

211

 

	
The Agent
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but not delivered   until the date 
    	
 
    	
 
    	
)
    
	
hereof) AS A DEED by
    	
 
    	
 
    	
)
    
	
as attorney for and on behalf of
    	
 
    	
 
    	
) /s/ Chris Lewis
    
	
THE ROYAL BANK OF SCOTLAND PLC in 
    	
 
    	
 
    	
)
    
	
the presence of:-
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signature of witness:
    	
/s/ Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of witness:
    	
Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Pinsent   Masons LLP
    	
 
    	
 
    	
 
    
	
 
    	
3   Colmore Circus
    	
 
    	
 
    	
 
    
	
 
    	
Birmingham
    	
 
    	
 
    	
 
    
	
 
    	
B4 6BH
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
The Original Lenders
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but not delivered   until the date 
    	
 
    	
 
    	
)
    
	
hereof) AS A DEED by
    	
 
    	
 
    	
)
    
	
as attorney for and on behalf of
    	
 
    	
 
    	
)
    
	
THE ROYAL BANK OF SCOTLAND PLC 
    	
 
    	
 
    	
) /s/ Chris Lewis
    
	
acting as agent for NATIONAL 
    	
 
    	
 
    	
)
    
	
WESTMINSTER BANK PLC in the presence 
    	
 
    	
 
    	
)
    
	
of:-
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    	
 
    
	
Signature of witness:
    	
/s/ Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of witness:
    	
Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Pinsent   Masons LLP
    	
 
    	
 
    	
 
    
	
 
    	
3   Colmore Circus
    	
 
    	
 
    	
 
    
	
 
    	
Birmingham
    	
 
    	
 
    	
 
    
	
 
    	
B4 6BH
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but not delivered   until the date 
    	
 
    	
 
    	
)
    
	
hereof) AS A DEED by
    	
 
    	
 
    	
)
    
	
BMW FINANCIAL SERVICES (GB) LIMITED
    	
 
    	
 
    	
)
    
	
acting by two directors or one director and the 
    	
 
    	
 
    	
) /s/ R.M. Jordan
    
	
secretary
    	
 
    	
 
    	
)Director
    
	
 
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    	
) /s/ Tobias Essig
    
	
 
    	
 
    	
 
    	
)Director/secretary
    
							

 

212

 

	
The Bilateral Lender
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED (but not delivered   until the date 
    	
 
    	
 
    	
)
    
	
hereof) AS A DEED by
    	
 
    	
 
    	
)
    
	
as attorney for and on behalf of
    	
 
    	
 
    	
)
    
	
THE ROYAL BANK OF SCOTLAND PLC 
    	
 
    	
 
    	
) /s/ Chris Lewis
    
	
acting as agent for NATIONAL 
    	
 
    	
 
    	
)
    
	
WESTMINSTER BANK PLC in the presence 
    	
 
    	
 
    	
)
    
	
of:-
    	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    	
 
    
	
Signature of witness:
    	
/s/ Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name of witness:
    	
Aidan Fittis
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Pinsent   Masons LLP
    	
 
    	
 
    	
 
    
	
 
    	
3   Colmore Circus
    	
 
    	
 
    	
 
    
	
 
    	
Birmingham
    	
 
    	
 
    	
 
    
	
 
    	
B4 6BH
    	
 
    	
 
    	
 
    
						

 

213EXHIBIT 10.1

 

EXECUTION VERSION

 

FIFTH AMENDED AND RESTATED

 

AGREEMENT OF LIMITED PARTNERSHIP

OF PENSKE TRUCK LEASING CO., L.P.

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 1
    	
THE LIMITED PARTNERSHIP
    	
2
    
	
 
    	
 
    	
 
    
	
1.1
    	
Formation
    	
2
    
	
1.2
    	
Certificate of Limited Partnership
    	
2
    
	
1.3
    	
Name
    	
3
    
	
1.4
    	
Character of Business
    	
3
    
	
1.5
    	
Certain Business Policies
    	
3
    
	
1.6
    	
Principal Offices
    	
4
    
	
1.7
    	
Fiscal Year
    	
4
    
	
1.8
    	
Accounting Matters
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
DEFINITIONS
    	
4
    
	
 
    	
 
    	
 
    
	
2.1
    	
Accepting Partners
    	
4
    
	
2.2
    	
Act
    	
5
    
	
2.3
    	
Adjusted Capital Account Deficit
    	
5
    
	
2.4
    	
Advisory Committee
    	
5
    
	
2.5
    	
After-Acquired Company
    	
5
    
	
2.6
    	
Affiliate
    	
5
    
	
2.7
    	
Affiliate Acquisition
    	
5
    
	
2.8
    	
After-Acquired Business
    	
5
    
	
2.9
    	
Agreement
    	
5
    
	
2.10
    	
Alternative Structure
    	
6
    
	
2.11
    	
Approved IPO Structure
    	
6
    
	
2.12
    	
Auditor
    	
6
    
	
2.13
    	
Bank Regulators
    	
6
    
	
2.14
    	
Bankruptcy
    	
6
    
	
2.15
    	
Beneficial Owner or Beneficially Own
    	
6
    
	
2.16
    	
Bona Fide Lender
    	
6
    
	
2.17
    	
Business Activities Ancillary
    	
6
    
	
2.18
    	
Business Day
    	
6
    
	
2.19
    	
Capital Account
    	
6
    
	
2.20
    	
Capital Call Conditions
    	
7
    
	
2.21
    	
Capital Contribution
    	
8
    
	
2.22
    	
Capital Markets Activity
    	
8
    
	
2.23
    	
Certificate
    	
8
    
	
2.24
    	
Change of Control of the Partnership
    	
8
    
	
2.25
    	
Code
    	
8
    
	
2.26
    	
Control
    	
8
    
	
2.27
    	
Conversion Event
    	
8
    
	
2.28
    	
Corresponding Provision
    	
8
    
	
2.29
    	
Default Recovery/Remarketing Activities
    	
9
    
	
2.30
    	
Depreciation
    	
9
    
	
2.31
    	
De Minimis Business
    	
9
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
2.32
    	
Discretionary Distributions
    	
9
    
	
2.33
    	
Effective Time
    	
9
    
	
2.34
    	
Electing Partner
    	
9
    
	
2.35
    	
Evaluation Material
    	
9
    
	
2.36
    	
Event of Withdrawal
    	
9
    
	
2.37
    	
Exchange Act
    	
9
    
	
2.38
    	
Exercising Partner
    	
9
    
	
2.39
    	
Existing Business Activities
    	
10
    
	
2.40
    	
FCPA
    	
10
    
	
2.41
    	
Final Distributions
    	
10
    
	
2.42
    	
Financial Services Business
    	
10
    
	
2.43
    	
Financing
    	
10
    
	
2.44
    	
First Opportunity
    	
10
    
	
2.45
    	
Foreclosure
    	
10
    
	
2.46
    	
GECC
    	
10
    
	
2.47
    	
GECC Consolidated Group
    	
10
    
	
2.48
    	
GECC Contingent Liabilities Agreement
    	
10
    
	
2.49
    	
GE Committee Member
    	
10
    
	
2.50
    	
GE Logistics Holdco
    	
10
    
	
2.51
    	
General Partner
    	
10
    
	
2.52
    	
Generally Accepted Accounting Principles
    	
11
    
	
2.53
    	
GE Partners
    	
11
    
	
2.54
    	
GE Priority Amount
    	
11
    
	
2.55
    	
GE Representative Partner
    	
11
    
	
2.56
    	
GE Tennessee
    	
11
    
	
2.57
    	
GE Truck Leasing Holdco
    	
11
    
	
2.58
    	
Governmental Authority
    	
11
    
	
2.59
    	
Gross Asset Value
    	
11
    
	
2.60
    	
Holdings
    	
12
    
	
2.61
    	
Holdings LLC Agreement
    	
12
    
	
2.62
    	
Initial Capital Call Deficiency
    	
12
    
	
2.63
    	
Initiated Offer
    	
12
    
	
2.64
    	
Insurance
    	
12
    
	
2.65
    	
Interested Party
    	
13
    
	
2.66
    	
Investment Company Act
    	
13
    
	
2.67
    	
IPO
    	
13
    
	
2.68
    	
IPO Consummation Obligation
    	
13
    
	
2.69
    	
IPO Demand Notice
    	
13
    
	
2.70
    	
IPO Notice
    	
13
    
	
2.71
    	
IPO Rebuttal
    	
13
    
	
2.72
    	
Issuing Entity
    	
13
    
	
2.73
    	
Law
    	
13
    
	
2.74
    	
Leasing
    	
13
    

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
2.75
    	
Level One Approval
    	
13
    
	
2.76
    	
Level One Quorum
    	
13
    
	
2.77
    	
Level Two Approval
    	
13
    
	
2.78
    	
Level Two Quorum
    	
14
    
	
2.79
    	
Level Three Approval
    	
14
    
	
2.80
    	
Level Three Quorum
    	
14
    
	
2.81
    	
Level Three Triggering Condition
    	
14
    
	
2.82
    	
Level Four Approval
    	
14
    
	
2.83
    	
Level Four Quorum
    	
14
    
	
2.84
    	
Level Four Triggering Condition
    	
14
    
	
2.85
    	
Lien
    	
14
    
	
2.86
    	
Limited Partner
    	
15
    
	
2.87
    	
Majority Limited Partners
    	
15
    
	
2.88
    	
MBK CV
    	
15
    
	
2.89
    	
MBK USA CV
    	
15
    
	
2.90
    	
Member
    	
15
    
	
2.91
    	
Member Interest
    	
15
    
	
2.92
    	
Mitsui
    	
15
    
	
2.93
    	
Mitsui Committee Member
    	
15
    
	
2.94
    	
Mitsui Consolidated Group
    	
15
    
	
2.95
    	
Mitsui Co-Obligation Fee, Payment and Security Agreement
    	
15
    
	
2.96
    	
Mitsui Partner Designee
    	
15
    
	
2.97
    	
Mitsui Partners
    	
16
    
	
2.98
    	
Mitsui Pledge
    	
16
    
	
2.99
    	
Mitsui Pledged Interest
    	
16
    
	
2.100
    	
Mitsui Priority Amount
    	
16
    
	
2.101
    	
Mitsui Trainee
    	
16
    
	
2.102
    	
Net Income
    	
16
    
	
2.103
    	
Net Losses
    	
16
    
	
2.104
    	
New Credit Agreement
    	
16
    
	
2.105
    	
Non-Exercising Partner
    	
16
    
	
2.106
    	
Non-Issuing Partner
    	
16
    
	
2.107
    	
Nonrecourse Deductions
    	
16
    
	
2.108
    	
Nonrecourse Liability
    	
16
    
	
2.109
    	
Non-Voting Observer
    	
16
    
	
2.110
    	
Offer
    	
17
    
	
2.111
    	
Offered Interest
    	
17
    
	
2.112
    	
Offeree Partners
    	
17
    
	
2.113
    	
Offering Partner
    	
17
    
	
2.114
    	
Other Financial Services Activities
    	
17
    
	
2.115
    	
PAG
    	
17
    
	
2.116
    	
PAG Consolidated Group
    	
17
    
	
2.117
    	
PAG Pledge
    	
17
    

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
2.118
    	
PAG Pledged Interest
    	
17
    
	
2.119
    	
PAG Security Agreement
    	
17
    
	
2.120
    	
Parent Company
    	
17
    
	
2.121
    	
Partner
    	
17
    
	
2.122
    	
Partner Nonrecourse Debt
    	
17
    
	
2.123
    	
Partner Nonrecourse Debt Minimum Gain
    	
17
    
	
2.124
    	
Partner Nonrecourse Deductions
    	
18
    
	
2.125
    	
Partnership
    	
18
    
	
2.126
    	
Partnership Certificate
    	
18
    
	
2.127
    	
Partnership Group
    	
18
    
	
2.128
    	
Partnership Interest
    	
18
    
	
2.129
    	
Partnership Minimum Gain
    	
18
    
	
2.130
    	
Partnership Registrant
    	
18
    
	
2.131
    	
Partnership Year
    	
18
    
	
2.132
    	
Penske Committee Member
    	
18
    
	
2.133
    	
Penske Corporation
    	
18
    
	
2.134
    	
Penske Partners
    	
18
    
	
2.135
    	
Percentage Interest
    	
18
    
	
2.136
    	
Permitted Intragroup Transferees
    	
18
    
	
2.137
    	
Person
    	
19
    
	
2.138
    	
Pooled Vehicle
    	
19
    
	
2.139
    	
Potential Buyer
    	
19
    
	
2.140
    	
Preliminary Distribution
    	
19
    
	
2.141
    	
Prior Agreement
    	
19
    
	
2.142
    	
Profits and Losses
    	
19
    
	
2.143
    	
PTL GP
    	
20
    
	
2.144
    	
PTLC
    	
20
    
	
2.145
    	
PTLC Beneficiary
    	
21
    
	
2.146
    	
PTLC Consolidated Group
    	
21
    
	
2.147
    	
PTLC Security Agreement
    	
21
    
	
2.148
    	
Purchased Interest
    	
21
    
	
2.149
    	
Qualified Purchaser
    	
21
    
	
2.150
    	
Recipient Group
    	
21
    
	
2.151
    	
Registration Rights Agreement
    	
21
    
	
2.152
    	
Regulations
    	
21
    
	
2.153
    	
Regulatory Allocations
    	
21
    
	
2.154
    	
Remaining Capital Call Deficiency
    	
21
    
	
2.155
    	
Response Notice
    	
21
    
	
2.156
    	
Restricted Person
    	
21
    
	
2.157
    	
Returns
    	
21
    
	
2.158
    	
Rollins Business
    	
22
    
	
2.159
    	
Sale
    	
22
    
	
2.160
    	
Schedule
    	
22
    

 

iv

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
2.161
    	
SEC
    	
22
    
	
2.162
    	
Securities
    	
22
    
	
2.163
    	
Securities Act
    	
22
    
	
2.164
    	
Securities Activity
    	
22
    
	
2.165
    	
Selling Interests
    	
22
    
	
2.166
    	
Subject Purchaser
    	
22
    
	
2.167
    	
Subject Year
    	
22
    
	
2.168
    	
Subject Year To Date
    	
22
    
	
2.169
    	
Subsidiary
    	
22
    
	
2.170
    	
Tax Matters Partner
    	
23
    
	
2.171
    	
Third-Party Proposed Sale
    	
23
    
	
2.172
    	
Third Tier Built-In Gain
    	
23
    
	
2.173
    	
TMP Eligible Partner
    	
23
    
	
2.174
    	
Trade Name and Trademark Agreement
    	
23
    
	
2.175
    	
Transfer
    	
23
    
	
2.176
    	
Transfreight Group Companies
    	
23
    
	
2.177
    	
Triggering Transfer
    	
23
    
	
2.178
    	
UPREIT Structure
    	
23
    
	
2.179
    	
Volcker Rule
    	
23
    
	
2.180
    	
General Provisions
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
CAPITAL CONTRIBUTIONS; ISSUANCE OF PARTNERSHIP INTERESTS;   CAPITAL ACCOUNTS
    	
24
    
	
 
    	
 
    	
 
    
	
3.1
    	
Additional Capital Contributions; Issuance of Additional   Partnership Interests
    	
24
    
	
3.2
    	
Capital Contributions and Accounts
    	
27
    
	
3.3
    	
Negative Capital Accounts
    	
28
    
	
3.4
    	
Compliance with Treasury Regulations
    	
28
    
	
3.5
    	
Succession to Capital Accounts
    	
28
    
	
3.6
    	
No Withdrawal of Capital Contributions
    	
28
    
	
3.7
    	
No Partnership Certificates
    	
29
    
	
3.8
    	
Percentage Interests
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
COSTS AND EXPENSES
    	
29
    
	
 
    	
 
    	
 
    
	
4.1
    	
Operating Costs
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
DISTRIBUTIONS; PARTNERSHIP ALLOCATIONS; TAX MATTERS
    	
29
    
	
 
    	
 
    	
 
    
	
5.1
    	
Distributions Prior to Dissolution
    	
29
    
	
5.2
    	
Partnership Allocations
    	
30
    
	
5.3
    	
Special Allocations
    	
32
    
	
5.4
    	
Curative Allocations
    	
34
    

 

v

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
5.5
    	
Other Allocation Rules
    	
35
    
	
5.6
    	
Tax Allocations; Code   Section 704(c)
    	
36
    
	
5.7
    	
Accounting Method
    	
37
    
	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
MANAGEMENT
    	
37
    
	
 
    	
 
    	
 
    
	
6.1
    	
Rights and Duties of the Partners
    	
37
    
	
6.2
    	
Fiduciary Duty of General Partner
    	
37
    
	
6.3
    	
Powers of General Partner
    	
37
    
	
6.4
    	
Advisory Committee
    	
39
    
	
6.5
    	
Restrictions on the Authority of the General Partner
    	
45
    
	
6.6
    	
Other Activities
    	
50
    
	
6.7
    	
Transactions with Affiliates
    	
55
    
	
6.8
    	
Mitsui Participation Rights
    	
56
    
	
6.9
    	
Exculpation
    	
56
    
	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
COMPENSATION
    	
57
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    	
ACCOUNTS
    	
57
    
	
 
    	
 
    	
 
    
	
8.1
    	
Books and Records
    	
57
    
	
8.2
    	
Reports, Returns and Audits
    	
57
    
	
8.3
    	
Review Rights
    	
60
    
	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
TRANSFERS AND SALES
    	
60
    
	
 
    	
 
    	
 
    
	
9.1
    	
Transfer of Interests of General Partner and PTLC   Consolidated Group
    	
60
    
	
9.2
    	
Transfer or Sale of Limited Partner Interests
    	
61
    
	
9.3
    	
Right of First Offer
    	
62
    
	
9.4
    	
Certain Changes of Control
    	
66
    
	
9.5
    	
Certain General Provisions
    	
69
    
	
9.6
    	
Allocation of Profits, Losses and Distributions Subsequent   to Sale
    	
70
    
	
9.7
    	
Death, Incompetence, Bankruptcy, Liquidation or   Withdrawal of a Limited Partner
    	
70
    
	
9.8
    	
Satisfactory Written Assignment Required
    	
71
    
	
9.9
    	
Transferee’s Rights
    	
71
    
	
9.10
    	
Transferees Admitted as Partners
    	
71
    
	
9.11
    	
Change of Control Rights
    	
71
    
	
 
    	
 
    	
 
    
	
ARTICLE 10
    	
EXIT/ IPO RIGHT
    	
72
    
	
 
    	
 
    	
 
    
	
10.1
    	
IPO Notice
    	
72
    
	
10.2
    	
Partnership Restructuring in connection with IPO
    	
74
    
	
10.3
    	
IPO Alternative
    	
74
    

 

vi

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 11
    	
DISSOLUTION
    	
75
    
	
 
    	
 
    	
 
    
	
11.1
    	
Events of Dissolution
    	
75
    
	
11.2
    	
Final Accounting
    	
75
    
	
11.3
    	
Liquidation
    	
75
    
	
11.4
    	
Cancellation of Certificate
    	
76
    
	
 
    	
 
    	
 
    
	
ARTICLE 12
    	
INVESTMENT REPRESENTATIONS
    	
76
    
	
 
    	
 
    	
 
    
	
12.1
    	
Investment Purpose
    	
76
    
	
12.2
    	
Investment Restriction
    	
76
    
	
 
    	
 
    	
 
    
	
ARTICLE 13
    	
NOTICES
    	
76
    
	
 
    	
 
    	
 
    
	
13.1
    	
Method of Notice
    	
76
    
	
13.2
    	
Computation of Time
    	
80
    
	
 
    	
 
    	
 
    
	
ARTICLE 14
    	
GENERAL PROVISIONS
    	
80
    
	
 
    	
 
    	
 
    
	
14.1
    	
Entire Agreement
    	
80
    
	
14.2
    	
Amendment; Waiver
    	
80
    
	
14.3
    	
Governing Law
    	
80
    
	
14.4
    	
Binding Effect
    	
81
    
	
14.5
    	
Separability
    	
81
    
	
14.6
    	
Headings
    	
81
    
	
14.7
    	
No Third-Party Rights
    	
81
    
	
14.8
    	
Waiver of Partition
    	
81
    
	
14.9
    	
Nature of Interests
    	
81
    
	
14.10
    	
Counterpart Execution
    	
81
    

 

vii

 

SCHEDULES

 

SCHEDULE A — Partners and Percentage Interests

 

SCHEDULE B — Current Members of Advisory Committee

 

 

FIFTH AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

PENSKE TRUCK LEASING CO., L.P.

 

THIS FIFTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP is entered into this 18th day of March, 2015, and effective as of the Effective Time, by and among Penske Truck Leasing Corporation, a Delaware corporation with its offices at 2675 Morgantown Road, Reading, Pennsylvania 19607 (as further defined below, “PTLC”), PTL GP, LLC, a Delaware limited liability company, formerly known as LJ VP, LLC, with its offices at 2675 Morgantown Road, Reading, Pennsylvania 19607 (as further defined below, “PTL GP”), Penske Automotive Group, Inc., a Delaware corporation with its offices at 2555 Telegraph Road, Bloomfield Hills, Michigan 48302 (as further defined below, “PAG”), GE Capital Truck Leasing Holding Corp., a Delaware corporation with its offices at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808 (as further defined below, “GE Truck Leasing Holdco”), Logistics Holding Corp., a Delaware corporation with its offices at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808 (as further defined below, “GE Logistics Holdco”), General Electric Credit Corporation of Tennessee, a Tennessee corporation with its offices at 2 Bethesda Metro Center, Suite 600, Bethesda, MD 20814 (as further defined below, “GE Tennessee”), and MBK Commercial Vehicles Inc., a Delaware corporation, with its offices at Nippon Life Marunouchi Garden Tower, 1-3 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan (as further defined below, “MBK CV”), and MBK USA Commercial Vehicles Inc., a Delaware corporation, with its offices at Nippon Life Marunouchi Garden Tower, 1-3 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan (as further defined below, “MBK USA CV”).

 

WITNESSETH:

 

WHEREAS, a limited partnership was heretofore formed in accordance with the provisions of the Delaware Revised Uniform Limited Partnership Act (6 Del.C. §17-101, et seq.) (as amended from time to time and any successor to such Act, the “Act”) under the name Penske Truck Leasing Co., L.P. pursuant to an agreement of limited partnership dated July 18, 1988 (the “Partnership”);

 

WHEREAS, the agreement of limited partnership of the Partnership was amended and restated in its entirety by the Amended and Restated Agreement of Limited Partnership dated August 10, 1988, and thereafter and heretofore was amended or amended and restated from time to time, most recently by an amendment and restatement in its entirety known as the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership, dated April 30, 2012, as amended by an Amendment No.1 dated as of March 17, 2015 (the “Fourth Amended and Restated Partnership Agreement”), by and among the parties hereto and their predecessors (other than the Mitsui Partners); and

 

 

WHEREAS, the parties hereto desire to recognize the admission of MBK CV and MBK USA CV as limited partners and to amend and restate the Fourth Amended and Restated Partnership Agreement in its entirety as hereinafter set forth.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto, intending to be legally bound, hereby agree that the Fourth Amended and Restated Partnership Agreement is hereby amended and restated in its entirety by this Fifth Amended and Restated Agreement of Limited Partnership and, as so amended and restated hereby, shall read in its entirety as follows:

 

ARTICLE 1

 

THE LIMITED PARTNERSHIP

 

1.1                               Formation.

 

(a)                     The parties hereto other than the Mitsui Partners have heretofore been admitted to the Partnership as general partner or limited partners of the Partnership, as applicable, and the Partnership shall engage in the business hereinafter described for the period and upon the terms and conditions hereinafter set forth.

 

(b)                     As of the Effective Time, the Mitsui Partners are being admitted to the Partnership as limited partners in the Partnership.

 

(c)                      Notwithstanding any provision of this Agreement to the contrary, PTL GP shall be the general partner in the Partnership.  If any Conversion Event occurs, then at such time (A) PTL GP’s Partnership Interest (or in the case of a Sale of a portion of such Partnership Interest, the portion thereof being Sold) will automatically convert from a Partnership Interest as a general partner in the Partnership to a Partnership Interest as a limited partner in the Partnership (at the same Percentage Interest) and, subject to the further conditions relating to Transfers under this Agreement, the transferee in such Sale or, if there is no such transferee, PTL GP, shall be admitted as a Limited Partner and (B) if such conversion would otherwise result in there being no General Partner, then, effective immediately prior to such conversion, the Partnership Interest held by the then Managing Member of Holdings will automatically convert from a Partnership Interest as a limited partner in the Partnership to a Partnership Interest as a general partner in the Partnership and the then Managing Member of Holdings shall be automatically admitted to the Partnership as a General Partner and shall continue the Partnership without dissolution.

 

1.2                               Certificate of Limited Partnership.  PTLC has previously executed and caused to be filed (a) a Certificate of Limited Partnership of the Partnership in the office of the Secretary of State of the State of Delaware on July 18, 1988, (b) a Certificate of Amendment to Certificate of Limited Partnership of the Partnership in the office of the Secretary of State of the State of Delaware on July 21, 1988, and (c) a Certificate of Amendment to Certificate of Limited Partnership of the Partnership in the office of the Secretary of State of the State of Delaware on March 20, 2002 (such Certificate of Limited Partnership, together with and as amended by such Certificates of Amendment, is hereinafter collectively referred to as the

 

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“Certificate”). The General Partner shall execute such further documents (including any additional amendments to the Certificate to reflect the occurrence of the transactions contemplated by Section 1.1) and take such further action as shall be appropriate to comply with all requirements of Law for the formation and operation of a limited partnership in the State of Delaware and all other jurisdictions where the Partnership may elect to do business.

 

1.3                               Name.  The name of the Partnership is Penske Truck Leasing Co., L.P.  Subject to the provisions of Subsection 6.5(e)(i), the General Partner may change the name of the Partnership or cause the business of the Partnership to be conducted under any other name (other than any name including the term “General Electric”, “GE”, “Mitsui” or derivatives thereof) and, in any such event, the General Partner shall notify the Limited Partners of such name change within thirty (30) days thereafter.

 

1.4                               Character of Business.  The business of the Partnership shall be (i) the rental leasing and servicing (including the provision of fuel) of tractors, trailers and trucks to third-party users, and the sale of such tractors, trailers and trucks used in the business of the Partnership, (ii) acting as a dedicated contract motor carrier, (iii) the provision of other third-party logistics services such as distribution center management, transportation management, managing and optimizing enterprises’ logistics networks, and providing supply chain consulting services, (iv) conducting Business Activities Ancillary to the businesses set forth in clauses (i), (ii) and (iii), and (v) such other activities and business as may be lawfully conducted by a limited partnership formed under the Laws of the State of Delaware. “Business Activities Ancillary” to a specified business shall mean business activities that are not conducted as a separate profitable business offering and comprise not more than five percent (5%) of the value measured by the net profit of the business activities of the specified business. The Partnership shall have and exercise all the powers now or hereafter conferred by the Laws of the State of Delaware on limited partnerships formed under the Laws of that State, and to do any and all things as fully as natural persons might or could do as are not prohibited by Law in furtherance of the aforesaid business of the Partnership. The business of the Partnership shall be conducted in accordance with, and any action required or permitted to be taken by the General Partner or any Limited Partner shall be taken in compliance with, all applicable Laws.

 

1.5                               Certain Business Policies.  The Partnership adopted prior to the Effective Time, in accordance with the terms of this Agreement as then in effect, and maintains policies with respect to requirements of environmental Laws, antitrust Laws, anti-corruption Laws, anti-bribery Laws, Laws relating to contracts with Governmental Authorities, insider trading and ethical business practices. The Partnership shall conduct its business in accordance with such policies, as the same may be amended from time to time in accordance with Subsection 6.5(c)(ii). The Partnership shall (i) notify the members of the Advisory Committee promptly upon becoming aware of any violation by any member of the Partnership Group of any anti-corruption, anti-bribery or similar Laws, including the FCPA, (ii) promptly provide the members of the Advisory Committee with information regarding any such violation upon request therefor, and (iii) permit any member of the Advisory Committee not the target of the violation to examine the relevant books and records of the Partnership Group and interview relevant personnel of the Partnership Group, in each case regarding any such violation; provided, that with respect to the procedures in clause (ii) and (iii) of this Section 1.5, such procedures shall be implemented in such a manner to safeguard, to the greatest extent

 

3

 

reasonably practical, the “attorney-client” and “attorney work product” privileges applicable to the Partnership and/or its Partners (including by entering into a joint defense, common interest or similar agreement).

 

1.6                               Principal Offices.  The location of the principal offices of the Partnership shall be at 2675 Morgantown Road, Reading, Pennsylvania 19607, or at such other location as may be selected from time to time by the General Partner. If the General Partner changes the location of the principal offices of the Partnership, the Limited Partners shall be notified in writing within thirty (30) days thereafter. The Partnership may maintain such other offices at such other places as the General Partner deems advisable.

 

1.7                               Fiscal Year.  The fiscal year of the Partnership shall be the calendar year (the “Partnership Year”).

 

1.8                               Accounting Matters.  Unless otherwise specified herein, all accounting determinations hereunder shall be made, all accounting terms used herein shall be interpreted, and all financial statements required to be delivered hereunder shall be prepared, in accordance with Generally Accepted Accounting Principles applied on a consistent basis with prior periods, except, in the case of such financial statements, for departures from Generally Accepted Accounting Principles that may from time to time be approved in writing by the Partners and the Auditor who is at the time reporting on such financial statements. In the event that any “Accounting Change” (as defined below) shall occur and such change results in a change in the method of calculation of permitted distributions, standards or other terms in this Agreement, then the General Partner agrees to enter into negotiations with the other Partners in order to amend such provisions of this Agreement so as to reflect equitably such Accounting Changes with the desired result that the criteria for permitting distributions and other matters shall have the same economic effect after such Accounting Changes as if such Accounting Changes had not been made. Until such time as such an amendment shall have been executed and delivered by the Partners, all such permitted distributions and other matters in this Agreement shall continue to be calculated or construed as if such Accounting Changes had not occurred. “Accounting Changes” refers to changes in accounting principles required by the promulgation of any final rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants or any successor organization or, if applicable, the SEC.

 

ARTICLE 2

 

DEFINITIONS

 

The following defined terms used in this Agreement shall have the respective meanings specified below.

 

2.1                               Accepting Partners.  “Accepting Partners” shall have the meaning ascribed to such term in Subsection 9.3(e).

 

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2.2                               Act.  “Act” shall have the meaning ascribed to such term in the first “Whereas” clause hereof as amended and in effect from time to time, or the corresponding provisions of any successor statute.

 

2.3                               Adjusted Capital Account Deficit.  “Adjusted Capital Account Deficit” shall mean, with respect to any Limited Partner, the deficit balance, if any, in such Partner’s Capital Account as of the end of the relevant taxable year or other period after giving effect to the following adjustments:

 

(i)                                      Credit to such Capital Account any amounts that such Partner is obligated to restore (pursuant to the terms of this Agreement or otherwise) or deemed obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and

 

(ii)                                   Debit to such Capital Account the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704- 1(b)(2)(ii)(d)(6).

 

The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

 

2.4                               Advisory Committee.  “Advisory Committee” shall have the meaning ascribed to such term in Subsection 6.4(a).

 

2.5                               After-Acquired Company.  “After-Acquired Company” shall have the meaning ascribed to such term in Subsection 6.6(h).

 

2.6                               Affiliate.  “Affiliate” shall mean, with respect to any specified Person, any other Person that, at the time of determination, (i) directly or indirectly through one or more intermediaries Controls, is Controlled by or is under common Control with, such specified Person, (ii) beneficially owns or Controls ten percent (10%) or more of any class or series of outstanding voting securities of such specified Person, (iii) is a managing member, manager or general partner of such specified Person, or (iv) is an officer, director, managing member, manager or general partner of any of the foregoing.

 

2.7                               Affiliate Acquisition.  “Affiliate Acquisition” means any transaction or series of related transactions pursuant to which (directly or indirectly) the Partnership Group acquires any equity interests, securities, assets, properties or rights from any Partner or any Affiliate of any Partner (including in a purchase, merger or consolidation) or in respect of which any Partner or any Affiliate of any Partner is entitled to receive consideration.

 

2.8                               After-Acquired Business.  “After-Acquired Business” shall have the meaning ascribed to such term in Subsection 6.6(h).

 

2.9                               Agreement.  This “Agreement” shall refer to this Fifth Amended and Restated Agreement of Limited Partnership, including the Schedules hereto, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

5

 

2.10                        Alternative Structure.  “Alternative Structure” or “Alternative Structures” shall have the meaning ascribed to such term in Subsection 10.1(b).

 

2.11                        Approved IPO Structure.  “Approved IPO Structure” shall have the meaning ascribed to such term in Subsection 10.1(f).

 

2.12                        Auditor.  “Auditor” shall mean Deloitte LLP or any successor firm of independent auditors selected pursuant to Subsection 6.4(g).

 

2.13                        Bank Regulators.  “Bank Regulators” shall have the meaning ascribed to such term in Subsection 6.4(i).

 

2.14                        Bankruptcy.  The “Bankruptcy” of a Partner shall mean (i) the filing by a Partner of a voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form, of its debts under Title 11 of the United States Code or any other federal or state insolvency Law, or a Partner’s filing an answer consenting to or acquiescing in any such petition, (ii) the making by a Partner of any assignment for the benefit of its creditors or (iii) the expiration of sixty (60) days after the filing of an involuntary petition under Title 11 of the United States Code, an application for the appointment of a receiver for the assets of a Partner, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under any other federal or state insolvency Law, provided that the same shall not have been vacated, set aside or stayed within such sixty (60)-day period.

 

2.15                        Beneficial Owner or Beneficially Own.  “Beneficial Owner” or “Beneficially Own” shall have the meaning given in Rule 13d-3 under the Exchange Act and a Person’s beneficial ownership of securities of any Person will be calculated in accordance with the provisions of that Rule.

 

2.16                        Bona Fide Lender.  “Bona Fide Lender” shall have the meaning ascribed to such term in Subsection 9.2(f).

 

2.17                        Business Activities Ancillary.  “Business Activities Ancillary” shall have the meaning ascribed to such term in Subsection 1.4.

 

2.18                        Business Day.  “Business Day” shall mean any day other than a Saturday or Sunday or other day that commercial banks are required or permitted to be closed in New York City or Tokyo, Japan.

 

2.19                        Capital Account.  “Capital Account” shall mean, with respect to any Partner, the Capital Account maintained for such Partner in accordance with the following provisions:

 

(i)                                      To each Partner’s Capital Account there shall be credited such Partner’s Capital Contributions, such Partner’s distributive share of Profits and any items in the nature of income or gain that are specially allocated pursuant to Section 5.3 or Section 5.4, and the amount of any Partnership liabilities assumed by such Partner or that are secured by any Partnership property distributed to such Partner;

 

6

 

(ii)                                   To each Partner’s Capital Account there shall be debited the amount of cash and the Gross Asset Value of any Partnership property distributed to such Partner pursuant to any provision of this Agreement, such Partner’s distributive share of Losses and any items in the nature of expenses or losses that are specially allocated pursuant to Section 5.3 or Section 5.4, and the amount of any liabilities of such Partner assumed by the Partnership or that are secured by any property contributed by such Partner to the Partnership.

 

(iii)                                In the event all or a portion of an interest in the Partnership is Transferred, in accordance with the terms of this Agreement (including Section 9.4), the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred interest.

 

(iv)                               In determining the amount of any liability for purposes of subparagraphs (i) and (ii) and the definition of “Capital Contribution,” there shall be taken into account Code Section 752(c) and any other applicable provisions of the Code and Regulations.

 

2.20                        Capital Call Conditions.  “Capital Call Conditions” shall mean, collectively, the following conditions:

 

(i)                                      the General Partner shall have determined that the Partnership requires additional equity capital to maintain any minimum investment grade corporate, unsecured, long-term debt rating for the Partnership on a stand-alone basis (i.e., to avoid any non-investment grade rating); and

 

(ii)                                   the General Partner shall have determined to make a capital call that satisfies each of the following conditions, with the approval of the Advisory Committee (acting reasonably and in good faith) pursuant to Subsection 6.5(f)(v):

 

(iii)                                (A)            the net proceeds of such capital call do not exceed the amount reasonably required to maintain such minimum investment grade corporate, unsecured, long-term debt rating (i.e., to avoid any non-investment grade rating) for the Partnership on a stand-alone basis;

 

(iv)                               (B) such capital call is made, solely for cash in U.S. dollars and at a price based upon the fair market value of 100% of the Partnership Interests adjusted for limited (non-controlling) Partnership Interests (as determined by the Advisory Committee following its receipt of valuation guidance from an independent third party financial advisor of nationally recognized standing to the Partnership, and taking into account such factors as, among other things, the consolidated financial statements of the Partnership and its Subsidiaries, current forecasts of the Partnership and its Subsidiaries prepared in a manner consistent with past practice, the results of operations of the Partnership and its Subsidiaries, the current financial condition of the Partnership and its Subsidiaries, the profitability of the Partnership and its Subsidiaries and the then-current market conditions);

 

(v)                                  (C) such capital call is, except as otherwise expressly provided in Section 3.1, made pro rata among all of the Partners (in accordance with their respective Percentage Interests); and

 

7

 

(vi)                               (D) no amendment, supplement or modification of any kind shall be made to this Agreement in connection with such capital call or the consummation thereof (other than to adjust Capital Accounts of the Partners, to adjust the Percentage Interests of the Partners in accordance with Subsection 3.1(d) (as applicable) and (if applicable) to admit any new purchaser of limited Partnership Interests with respect to such capital call in accordance with Subsection 3.1(f)(ii) (if applicable) as a Limited Partner).

 

2.21                        Capital Contribution.  “Capital Contribution” shall mean, with respect to any Partner, the amount of money and the initial Gross Asset Value of any property (other than money) contributed to the Partnership by such Partner (or its predecessors in interest) with respect to the Partnership Interest held by such Partner.

 

2.22                        Capital Markets Activity.  “Capital Markets Activity” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.23                        Certificate.  “Certificate” shall have the meaning ascribed to such term in Section 1.2.

 

2.24                        Change of Control of the Partnership.  “Change of Control of the Partnership” shall mean (i) the consummation of a merger or consolidation of one or more members of the Partnership Group which collectively own, directly or indirectly, all or substantially all of the Partnership Group’s assets with or into another entity (whether or not it is the surviving entity) that is not the Partnership or a direct or indirect wholly-owned subsidiary of the Partnership; or (ii) the Sale of all or substantially all of the Partnership Group’s assets (whether by sale of assets, capital stock or otherwise) in one or a series of related transactions.

 

2.25                        Code.  “Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from time to time, or the corresponding provisions of any successor statute.

 

2.26                        Control.  “Control” (including the correlative terms “Controlling,” “Controlled by” and “under common Control with”) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

2.27                        Conversion Event.  “Conversion Event” shall mean the occurrence of any of the following: (i) the Sale in accordance with this Agreement or the Holdings LLC Agreement of all or any portion of PTL GP’s Partnership Interest; (ii) the dissolution of Holdings pursuant to Section 12.1 of the Holdings LLC Agreement; (iii) the dissolution of PTL GP pursuant to Section 15 of the PTL GP LLC Agreement or the Bankruptcy of PTL GP; and (iv) while PTL GP then holds a Partnership Interest (as a general partner), the Managing Member of Holdings ceases to be PTLC or a Controlled Affiliate of PTLC other than as a result of a Bankruptcy of PTLC (or any permitted successor to its Member Interest as the Managing Member of Holdings).

 

2.28                        Corresponding Provision.  “Corresponding Provision” shall mean the provision in a Prior Agreement, if any, that corresponds to a given provision in this Agreement.

 

8

 

2.29                        Default Recovery/Remarketing Activities.  “Default Recovery/Remarketing Activities” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.30                        Depreciation.  “Depreciation” shall mean, for each taxable year or portion of a taxable year for which the Partnership is required to allocate Profits, Losses, or other items pursuant to Article 5 or the Corresponding Provision of any Prior Agreement, an amount equal to the depreciation, amortization or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for such year or other period, except that (i) with respect to any asset whose Gross Asset Value differs from its adjusted tax basis for federal income tax purposes and which difference is being eliminated by use of the “remedial allocation method” defined by Treasury Regulation Section 1.704-3(d), Depreciation for such taxable year or portion of a taxable year shall be the amount of the book basis recovered for such taxable year or portion of a taxable year under the rules prescribed in Treasury Regulation Section 1.704-3(d)(2) (notwithstanding anything to the contrary in Subsection 5.6(c) or the Corresponding Provision of any Prior Agreement) and (ii) with respect to any other asset whose Gross Asset Value differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period, Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization or other cost recovery deduction for such year or other period bears to such beginning adjusted tax basis; provided, however, that if the adjusted tax basis of an asset at the beginning of such taxable year or portion of a taxable year is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method agreed upon by the Partners.

 

2.31                        De Minimis Business.  “De Minimis Business” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.32                        Discretionary Distributions.  “Discretionary Distributions” shall have the meaning ascribed to such term in Subsection 5.1(c).

 

2.33                        Effective Time.  “Effective Time” shall mean the close of the Partnership’s business on the date of this Agreement.

 

2.34                        Electing Partner.  “Electing Partner” shall have the meaning ascribed to such term in Subsection 3.1(c)(ii).

 

2.35                        Evaluation Material.  “Evaluation Material” shall have the meaning ascribed to such term in Subsection 6.4(i).

 

2.36                        Event of Withdrawal.  “Event of Withdrawal” shall have the meaning ascribed to such term in Subsection 11.1(b).

 

2.37                        Exchange Act.  “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended and in effect from time to time, or the corresponding provisions of any successor statute, and the rules and regulations promulgated thereunder.

 

2.38                        Exercising Partner.  “Exercising Partner” shall mean the GE Representative Partner or PTLC (excluding any Permitted Intragroup Transferees thereof), either of whom may deliver an IPO Notice.

 

9

 

2.39                        Existing Business Activities.  “Existing Business Activities” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.40                        FCPA.  “FCPA” shall mean the United States Foreign Corrupt Practices Act of 1977, as amended and in effect from time to time, or the corresponding provisions of any successor statute, and the rules and regulations promulgated thereunder.

 

2.41                        Final Distributions.  “Final Distributions” shall have the meaning ascribed to such term in Subsection 5.1(b).

 

2.42                        Financial Services Business.  “Financial Services Business” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.43                        Financing.  “Financing” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.44                        First Opportunity.  “First Opportunity” shall have the meaning ascribed to such term in Subsection 6.6(h).

 

2.45                        Foreclosure.  “Foreclosure” shall have the meaning ascribed to such term in Subsection 9.2(f).

 

2.46                        GECC.  “GECC” shall mean General Electric Capital Corporation, a Delaware corporation.

 

2.47                        GECC Consolidated Group.  “GECC Consolidated Group” shall mean the consolidated group, determined in accordance with Generally Accepted Accounting Principles, of which GECC is the common parent.

 

2.48                        GECC Contingent Liabilities Agreement.  “GECC Contingent Liabilities Agreement” shall mean the Amended and Restated Contingent Liabilities Agreement, dated as of April 30, 2012, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.49                        GE Committee Member.  “GE Committee Member” shall have the meaning ascribed to such term in Subsection 6.4(a).

 

2.50                        GE Logistics Holdco.  “GE Logistics Holdco” shall have the meaning ascribed to such term in the first Paragraph of this Agreement and shall include any Permitted Intragroup Transferees thereof.

 

2.51                        General Partner.  “General Partner” shall mean PTL GP until such time as PTL GP is replaced or substituted in accordance with the terms of Section 1.1(c) or Section 11.1(b) of this Agreement, each in its capacity as the general partner in the Partnership and with respect to its Partnership Interest as a general partner in the Partnership.

 

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2.52                        Generally Accepted Accounting Principles.  “Generally Accepted Accounting Principles” shall refer to generally accepted accounting principles as in effect from time to time in the United States of America.

 

2.53                        GE Partners.  “GE Partners” shall mean GE Truck Leasing Holdco, GE Logistics Holdco and GE Tennessee and any Permitted Intragroup Transferees thereof.

 

2.54                        GE Priority Amount.  “GE Priority Amount” shall mean the result of (x) 49.9% of $700,000,000 minus (y) the Mitsui Priority Amount.

 

2.55                        GE Representative Partner.  “GE Representative Partner” shall mean (i) GE Truck Leasing Holdco or such other Partner as designated by the then existing GE Partners, or (ii) any permitted successor or permitted assignee to which a GE Partner has Sold its right to designate or replace the GE Representative Partner pursuant to Subsection 9.5(d) (and any permitted successor or permitted assignee thereof) or such other Partner as designated thereby.

 

2.56                        GE Tennessee.  “GE Tennessee” shall have the meaning ascribed to such term in the first Paragraph of this Agreement and shall include any Permitted Intragroup Transferees thereof.

 

2.57                        GE Truck Leasing Holdco.  “GE Truck Leasing Holdco” shall have the meaning ascribed to such term in the first Paragraph of this Agreement and shall include any Permitted Intragroup Transferees thereof.

 

2.58                        Governmental Authority.  “Governmental Authority” shall mean any (i) U.S., foreign, federal, state, local or other government, (ii) governmental commission, board, body, bureau, agency, department or other judicial, regulatory or administrative authority of any nature, including courts, tribunals and other judicial bodies, (iii) any self-regulatory body or authority, and (iv) any instrumentality or entity designed to act for or on behalf of the foregoing in exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

2.59                        Gross Asset Value.  “Gross Asset Value” shall mean, with respect to any asset, the asset’s adjusted basis for federal income tax purposes except as follows:

 

(1)                                 The initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset, as agreed to by the General Partner and the Contributing Partner at the time of such contribution, provided that, if the contributing Partner is the General Partner or an Affiliate of the General Partner, the gross fair market value of such asset must be approved by the Majority Limited Partners and the GE Representative Partner;

 

(2)                                 The Gross Asset Values of all Partnership assets shall be adjusted to equal their respective gross fair market values, as proposed by the General Partner and approved by the Majority Limited Partners and the GE Representative Partner, as of the following times: (a) the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution; (b) the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration

 

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for a Partnership Interest; (c) the liquidation of the Partnership within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g); and (d) in connection with the grant of an interest in the Partnership (other than a de minimis interest) as consideration for the provision of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by a new Partner acting in a partner capacity in anticipation of being a Partner; provided, however, that adjustments pursuant to clauses (a), (b) and (d) above shall be made only if the General Partner reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership;

 

(3)                                 The Gross Asset Value of any Partnership asset distributed to any Partner shall be adjusted to equal the gross fair market value of such asset on the date of distribution as determined by the distributee and the General Partner, provided that, if the distributee is the General Partner or an Affiliate of the General Partner, the determination of the fair market value of the distributed asset shall require the approval of the Majority Limited Partners and the GE Representative Partner; and

 

(4)                                 The Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Section 743(b) but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to (a) Regulations Section 1.704-1(b)(2)(iv)(m) and (b) subparagraph (vi) of the definition of “Profits” and “Losses” in Subsection 2.142 or Subsection 5.3(g), provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph (4) to the extent the General Partner determines that an adjustment pursuant to subparagraph (2) is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (4).

 

If the Gross Asset Value of an asset has been determined or adjusted pursuant to Subsections 2.59(1), (2), or (4) hereof or the Corresponding Provision of any Prior Agreement, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses.

 

2.60                        Holdings.  “Holdings” shall mean LJ VP Holdings LLC, a Delaware limited liability company and the sole member of PTL GP.

 

2.61                        Holdings LLC Agreement.  “Holdings LLC Agreement” shall mean that certain Second Amended and Restated Limited Liability Company Agreement of Holdings, dated as of March 17, 2015, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.62                        Initial Capital Call Deficiency.  “Initial Capital Call Deficiency” shall have the meaning ascribed to such term in Subsection 3.1(c).

 

2.63                        Initiated Offer.  “Initiated Offer” shall have the meaning ascribed to such term in Subsection 9.3(c).

 

2.64                        Insurance.  “Insurance” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

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2.65                        Interested Party.  “Interested Party” shall have the meaning ascribed to such term in Subsection 6.6(a).

 

2.66                        Investment Company Act.  “Investment Company Act” shall mean the Investment Company Act of 1940, as amended.

 

2.67                        IPO.  “IPO” shall mean the initial public offering limit to common equity securities involving the Partnership Registrant.

 

2.68                        IPO Consummation Obligation.  “IPO Consummation Obligation” shall have the meaning ascribed to such term in Subsection 10.1(c).

 

2.69                        IPO Demand Notice.  “IPO Demand Notice” shall have the meaning ascribed to such term in Subsection 10.1(b).

 

2.70                        IPO Notice.  “IPO Notice” shall have the meaning ascribed to such term in Subsection 10.1(a).

 

2.71                        IPO Rebuttal.  “IPO Rebuttal” shall have the meaning ascribed to such term in Subsection 10.1(b).

 

2.72                        Issuing Entity.  “Issuing Entity” shall mean any entity formed to be the issuer in the IPO.

 

2.73                        Law.  “Law” shall mean any applicable foreign or domestic, federal, state or local statute, ordinance, rule, regulation, code, license, permit, authorization, approval, consent, order, judgment, decree, injunction or requirement of any Governmental Authority or any arbitration tribunal.

 

2.74                        Leasing.  “Leasing” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.75                        Level One Approval.  “Level One Approval” shall mean the approval (which may be by resolution adopted at a duly convened meeting) of at least four (4) members of the Advisory Committee (including the GE Committee Member designated by the GE Representative Partner and the Mitsui Committee Member designated by MBK CV) given at a duly called meeting of the Advisory Committee at which a Level One Quorum was present, or by written resolution in accordance with Subsection 6.4(c).

 

2.76                        Level One Quorum.  “Level One Quorum” shall mean the presence (in person or by telephonic communication or other means in accordance with Subsection 6.4(c)) of at least four (4) members of the Advisory Committee (including the GE Committee Member designated by the GE Representative Partner and the Mitsui Committee Member designated by MBK CV).

 

2.77                        Level Two Approval.  “Level Two Approval” shall mean the approval (which may be by resolution adopted at a duly convened meeting) of at least two (2) Penske Committee Members and the GE Committee Member designated by the GE Representative

 

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Partner given at a duly called meeting of the Advisory Committee at which a Level Two Quorum was present, or by written resolution in accordance with Subsection 6.4(c).

 

2.78                        Level Two Quorum.  “Level Two Quorum” shall mean the presence (in person or by telephonic communication or other means in accordance with Subsection 6.4(c)) of at least three (3) members of the Advisory Committee (including the GE Committee Member designated by the GE Representative Partner).

 

2.79                        Level Three Approval.  “Level Three Approval” shall mean the approval (which may be by resolution adopted at a duly convened meeting) of at least two (2) Penske Committee Members and either the GE Committee Member designated by the GE Representative Partner (so long as the GE Representative Partner and its Affiliates collectively own at least a ten percent (10%) Percentage Interest) or the Mitsui Committee Member designated by MBK CV (so long as the Mitsui Partners, collectively, own at least a ten percent (10%) Percentage Interest) given at a duly called meeting of the Advisory Committee at which a Level Three Quorum was present, or by written resolution in accordance with Subsection 6.4(c).

 

2.80                        Level Three Quorum.  “Level Three Quorum” shall mean the presence (in person or by telephonic communication or other means in accordance with Subsection 6.4(c)) of at least three (3) members of the Advisory Committee (including the GE Committee Member designated by the GE Representative Partner (so long as the GE Representative Partner and its Affiliates collectively own at least a ten percent (10%) Percentage Interest) or the Mitsui Committee Member designated by MBK CV (so long as the Mitsui Partners, collectively, own at least a ten percent (10%) Percentage Interest).

 

2.81                        Level Three Triggering Condition.  “Level Three Triggering Condition” shall have the meaning ascribed to such term in Subsection 6.5(d).

 

2.82                        Level Four Approval.  “Level Four Approval” shall mean the approval (which may be by resolution adopted at a duly convened meeting) of at least three (3) members of the Advisory Committee given at a duly called meeting of the Advisory Committee at which a Level Four Quorum was present, or by written resolution in accordance with Subsection 6.4(c).

 

2.83                        Level Four Quorum.  “Level Four Quorum” shall mean the presence (in person or by telephonic communication or other means in accordance with Subsection 6.4(c)) of at least three (3) members of the Advisory Committee.

 

2.84                        Level Four Triggering Condition.  “Level Four Triggering Condition” shall have the meaning ascribed to such term in Subsection 6.5(d).

 

2.85                        Lien.  “Lien” shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security’ agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement and any capital lease having substantially the same economic effect as any of the foregoing); provided, however, that “Liens” shall not include contracts entered into by the Partnership to lease, rent or otherwise permit the utilization of the Partnership’s assets in

 

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the ordinary course of business, unless such contracts are entered into in connection with the incurrence of indebtedness by the Partnership or its Subsidiaries.

 

2.86                        Limited Partner.  “Limited Partner” shall mean (i) as of the Effective Time, GE Tennessee, PTLC, PAG, GE Truck Leasing Holdco, GE Logistics Holdco, MBK CV and MBK USA CV and (ii) after the Effective Time, the Persons set forth in the foregoing clause (i) and such other Persons as may be admitted from time to time as limited partners in the Partnership in accordance with this Agreement, each in its capacity as a Limited Partner; provided, however, that the term “Limited Partner” at any given time shall not include (A) such Persons that cease to be limited partners as provided in Article 9, or (B) PTLC if it becomes the general partner in the Partnership pursuant to Subsection 1.1(c), but only with respect to its Partnership Interest as the general partner in the Partnership.

 

2.87                        Majority Limited Partners.  “Majority Limited Partners” shall mean, at any given time, Limited Partners (other than PTLC and its Affiliates, which for the preclusion of doubt includes as of the Effective Time PAG and will continue to include PAG as long as it is an Affiliate of PTLC) who then hold a majority of limited partner interests in the Partnership (exclusive of any limited partner interest in the Partnership then held by PTLC and its Affiliates).

 

2.88                        MBK CV.  “MBK CV” shall have the meaning ascribed to such term in the first Paragraph of this Agreement and shall include any Permitted Intragroup Transferees thereof.

 

2.89                        MBK USA CV.  “MBK USA CV” shall have the meaning ascribed to such term in the first Paragraph of this Agreement and shall include any Permitted Intragroup Transferees thereof.

 

2.90                        Member.  “Member” shall have the meaning ascribed to such term in the Holdings LLC Agreement.

 

2.91                        Member Interest.  “Member Interest” shall have the meaning ascribed to such term in the Holdings LLC Agreement.

 

2.92                        Mitsui.  “Mitsui” shall mean Mitsui & Co., Ltd., a Japanese company.

 

2.93                        Mitsui Committee Member.  “Mitsui Committee Member” shall have the meaning ascribed to such term in Subsection 6.4(a).

 

2.94                        Mitsui Consolidated Group.  “Mitsui Consolidated Group” shall mean the consolidated group, determined in accordance with Generally Accepted Accounting Principles, of which Mitsui is the common parent.

 

2.95                        Mitsui Co-Obligation Fee, Payment and Security Agreement.  “Mitsui Co-Obligation Fee, Payment and Security Agreement” shall have the meaning ascribed to such term in Subsection 9.2(g).

 

2.96                        Mitsui Partner Designee.  “Mitsui Partner Designee” shall have the meaning ascribed to such term in Subsection 6.8(a).

 

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2.97                        Mitsui Partners.  “Mitsui Partners” shall mean MBK CV and MBK USA CV and any Permitted Intragroup Transferees thereof.

 

2.98                        Mitsui Pledge.  “Mitsui Pledge” shall have the meaning ascribed to such term in Subsection 9.2(g).

 

2.99                        Mitsui Pledged Interest.  “Mitsui Pledged Interest” shall have the meaning ascribed to such term in Subsection 9.2(g).

 

2.100                 Mitsui Priority Amount.  “Mitsui Priority Amount” shall mean the Purchase Indemnity Amount under (and as defined in) that certain Purchase and Sale Agreement, dated as of the date hereof, by and among GE Logistics Holdco, GE Capital Memco, LLC, a Delaware limited liability company, GECC, MBK CV and MBK USA CV.

 

2.101                 Mitsui Trainee.  “Mitsui Trainee” shall have the meaning ascribed to such term in Subsection 6.8(b).

 

2.102                 Net Income.  “Net Income” shall mean, for any period, the consolidated net income of the Partnership and its Subsidiaries, determined on a consolidated basis in accordance with Generally Accepted Accounting Principles; provided, however, (i) any positive or negative currency transaction adjustments will be excluded from the determination of Net Income to the extent such adjustments do not require an adjustment to the Partnership’s equity and (ii) goodwill impairment charges will be excluded from the determination of Net Income.

 

2.103                 Net Losses.  “Net Losses” shall have the meaning ascribed to such term in Subsection 9.3(i).

 

2.104                 New Credit Agreement.  “New Credit Agreement” shall mean the Credit Agreement, dated as of March 9, 2015, by and among the Partnership, PTL Finance Corporation, the subsidiary borrowers and the several lenders from time to time parties thereto, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.105                 Non-Exercising Partner.  “Non-Exercising Partner” shall mean the GE Representative Partner or PTLC (excluding any Permitted Intragroup Transferees thereof), whichever did not deliver an IPO Notice, as the case may be.

 

2.106                 Non-Issuing Partner.  “Non-Issuing Partner” shall have the meaning ascribed to such term in Subsection 6.4(i).

 

2.107                 Nonrecourse Deductions.  “Nonrecourse Deductions” shall have the meaning set forth in Regulations Sections 1.704-2(b)(1) and 1.704-2(c).

 

2.108                 Nonrecourse Liability.  “Nonrecourse Liability” shall have the meaning set forth in Regulations Section 1.704-2(b)(3).

 

2.109                 Non-Voting Observer.  “Non-Voting Observer” shall have the meaning ascribed to such term in Subsection 6.4(j).

 

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2.110                 Offer.  “Offer” shall have the meaning ascribed to such term in Subsection 9.3(c).

 

2.111                 Offered Interest.  “Offered Interest” shall have the meaning ascribed to such term in Subsection 9.3(c).

 

2.112                 Offeree Partners.  “Offeree Partners” shall have the meaning ascribed to such term in Subsection 9.3(c).

 

2.113                 Offering Partner.  “Offering Partner” shall have the meaning ascribed to such term in Subsection 9.3(c).

 

2.114                 Other Financial Services Activities.  “Other Financial Services Activities” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.115                 PAG.  “PAG” shall have the meaning ascribed to such term in the first Paragraph of this Agreement and shall include any Permitted Intragroup Transferees thereof.

 

2.116                 PAG Consolidated Group.  “PAG Consolidated Group” shall mean a consolidated group, determined in accordance with Generally Accepted Accounting Principles, of which PAG is the common parent.

 

2.117                 PAG Pledge.  “PAG Pledge” shall have the meaning ascribed to such term in Subsection 9.2(f).

 

2.118                 PAG Pledged Interest.  “PAG Pledged Interest” shall have the meaning ascribed to such term in Subsection 9.2(f).

 

2.119                 PAG Security Agreement.  “PAG Security Agreement” shall mean the Amended and Restated PAG Co-Obligation Fee, Indemnity and Security Agreement, dated as of March 17, 2015, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.120                 Parent Company.  “Parent Company” shall mean, in the case of a GE Partner, GECC, in the case of a Penske Partner, Penske Corporation, and in the case of the Mitsui Partners, Mitsui. The Parent Company of PAG shall be Penske Corporation for so long as PAG is Controlled by Penske Corporation.

 

2.121                 Partner.  “Partner” shall mean the General Partner or a Limited Partner.

 

2.122                 Partner Nonrecourse Debt.  “Partner Nonrecourse Debt” shall have the meaning set forth in Regulations Section 1.704-2(b)(4).

 

2.123                 Partner Nonrecourse Debt Minimum Gain.  “Partner Nonrecourse Debt Minimum Gain” shall mean an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with the provisions of Regulations Section 1.704-2(i)(3) relating to “partner nonrecourse debt minimum gain.”

 

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2.124                 Partner Nonrecourse Deductions.  “Partner Nonrecourse Deductions” shall have the meaning set forth in Regulations Sections 1.704-2(i)(1) and 1.704-2(i)(2).

 

2.125                 Partnership.  “Partnership” shall have the meaning ascribed to such term in in the first “Whereas” clause hereof.

 

2.126                 Partnership Certificate.  “Partnership Certificate” shall have the meaning ascribed to such term in Section 3.7.

 

2.127                 Partnership Group.  “Partnership Group” shall mean, individually or in the aggregate, the Partnership and its Subsidiaries.

 

2.128                 Partnership Interest.  “Partnership Interest” shall refer, with respect to a given Partner as of a given date, to such Partner’s interest as a general partner of the Partnership (if any) and such Partner’s interest as a limited partner of the Partnership (if any), in each case as of such date, including any and all benefits to which the holder of such an interest may be entitled as provided in this Agreement, together with all obligations of such Partner to comply with the terms and provisions of this Agreement.

 

2.129                 Partnership Minimum Gain.  “Partnership Minimum Gain” shall have the meaning set forth in Regulations Sections 1.704-2(b)(2) and 1.704-2(d).

 

2.130                 Partnership Registrant.  “Partnership Registrant” shall mean the Partnership or the Issuing Entity that is the issuer in the IPO, as the case may be.

 

2.131                 Partnership Year.  “Partnership Year” shall have the meaning ascribed to such term in Section 1.7.

 

2.132                 Penske Committee Member.  “Penske Committee Member” shall have the meaning ascribed to such term in Subsection 6.4(a).

 

2.133                 Penske Corporation.  “Penske Corporation” shall mean Penske Corporation, a Delaware corporation.

 

2.134                 Penske Partners.  “Penske Partners” shall mean (i) PTLC, (ii) PTL GP until the date, if any, that PTL GP ceases to be a Controlled Affiliate of Penske Corporation and (iii) PAG until the date, if any, that PAG ceases to be a Controlled Affiliate of Penske Corporation, and, in each case, any Permitted Intragroup Transferees thereof.

 

2.135                 Percentage Interest.  The “Percentage Interest” of a Partner shall be the percentage ownership set forth next to its respective name on Schedule A hereto, as such Schedule A shall be amended, restated, supplemented or otherwise modified from time to time to reflect Sales of then outstanding Partnership Interests, issuance and sales of new Partnership Interests, and additional capital contributions of the Partners, in each case, in accordance with the terms of this Agreement.

 

2.136                 Permitted Intragroup Transferees.  “Permitted Intragroup Transferees” shall mean transferees and assignees to which Partnership Interest has been Sold as permitted or

 

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required under Subsections 9.2(b), (c) or (d), excluding those that have ceased to be a member of the GECC Consolidated Group, the PTLC Consolidated Group, the PAG Consolidated Group or the Mitsui consolidated Group, as the case may be.

 

2.137                 Person.  “Person” shall include an individual, a partnership, a corporation, a limited liability company, a trust, an unincorporated organization, a government or any department or agency thereof, and any other entity.

 

2.138                 Pooled Vehicle.  “Pooled Vehicle” shall include any of the following regardless of in what form or jurisdiction organized.

 

(a)                     hedge funds, private equity funds, commodity pools or other pooled investment vehicles, regardless of type or asset class;

 

(b)                     issuers of asset-backed securities of any kind, including asset-backed commercial paper, collateralized loan obligations, collateralized debt obligations or other similar instruments; provided, however, that “Pooled Vehicle” shall not include any entity described in 12 CFR §248.10(c)(8) (loan securitization) or §248.10(c)(9) (qualifying asset-backed commercial paper conduit) or any issuer that is deemed not to be an “investment company” by virtue of Rule 3a-7 promulgated under the Investment Company Act;

 

(c)                      registered investment companies, business development companies or small business investment companies; or

 

(d)                     any other entity that would be an investment company, within the meaning of the Investment Company Act, but for section 3(c)(1) or 3(c)(7) of that Act.

 

2.139                 Potential Buyer.  “Potential Buyer” shall have the meaning ascribed to such term in Subsection 6.4(i).

 

2.140                 Preliminary Distribution.  “Preliminary Distribution” shall have the meaning ascribed to such term in Subsection 5.1(a).

 

2.141                 Prior Agreement.  “Prior Agreement” shall mean each of the Amended and Restated Agreement of Limited Partnership of Penske Truck Leasing Co., L.P., dated August 10, 1988, the Second Amended and Restated Agreement of Limited Partnership of Penske Truck Leasing Co., L.P., dated September 19, 2008, the Third Amended and Restated Agreement of Limited Partnership of Penske Truck Leasing Co., L.P., dated March 26, 2009, and the Fourth Amended and Restated Partnership Agreement, in each case, as amended and in effect from time to time.

 

2.142                 Profits and Losses.  “Profits” and “Losses” shall mean, for each taxable year or portion of a taxable year, an amount equal to the Partnership’s taxable income or loss for such taxable year or portion of a taxable year, determined in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments:

 

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(i)                                      Any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this Subsection 2.142 shall be added to such taxable income or loss;

 

(ii)                                   Any expenditures of the Partnership described in Section 705(a)(2)(B) of the Code or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses pursuant to this Subsection 2.142 shall be subtracted from such taxable income or loss;

 

(iii)                                In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to Subsection 2.59(2) or (3) hereof, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses;

 

(iv)                               Gain or loss resulting from any disposition of Partnership property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value;

 

(v)                                  In lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such taxable year or portion of a taxable year;

 

(vi)                               To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Sections 734(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Partner’s interest in the Partnership, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes of computing Profits or Losses; and notwithstanding any other provision of this definition of “Profits” and “Losses,” any items that are specially allocated pursuant to Sections 5.3 and 5.4 shall not be taken into account in computing Profits or Losses.

 

(vii)                            The amounts of items of Partnership income, gain, loss, or deduction available to be specially allocated pursuant to Sections 5.3 and 5.4 shall be determined by applying rules analogous to those set forth in subparagraphs (i) through (vi).

 

2.143                 PTL GP.  “PTL GP” shall mean PTL GP, LLC, a Delaware limited liability company and shall include any Permitted Intragroup Transferees of the Penske Group.

 

2.144                 PTLC.  “PTLC” shall have the meaning ascribed to such term in the first Paragraph of this Agreement and shall include any Permitted Intragroup Transferees of the Penske Group.

 

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2.145                 PTLC Beneficiary.  “PTLC Beneficiary” shall have the meaning ascribed to such term in Subsection 9.4(c).

 

2.146                 PTLC Consolidated Group.  “PTLC Consolidated Group” shall mean the consolidated group, determined in accordance with Generally Accepted Accounting Principles, of which Penske Corporation is the common parent, except that members of the PAG Consolidated Group shall not be deemed members of the PTLC Consolidated Group.

 

2.147                 PTLC Security Agreement.  “PTLC Security Agreement” shall mean the Amended and Restated PTLC Co-Obligation Fee, Indemnity and Security Agreement, dated as of March 17, 2015, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.148                 Purchased Interest.  “Purchased Interest” shall have the meaning ascribed to such term in Subsection 9.4(e).

 

2.149                 Qualified Purchaser.  “Qualified Purchaser” shall mean a Person who does not directly compete with the Partnership (as such term is defined in Subsection 6.6(d)).

 

2.150                 Recipient Group.  “Recipient Group” shall have the meaning ascribed to such term in Subsection 6.4(i).

 

2.151                 Registration Rights Agreement.  “Registration Rights Agreement” shall mean the First Amended and Restated Registration Rights Agreement entered into by the Partners, the Partnership and Holdings, dated as of the date hereof, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.152                 Regulations.  “Regulations” shall mean the United States Income Tax Regulations, including Temporary Regulations, promulgated under the Code, as such regulations may be amended, restated, supplemented or otherwise modified from time to time.

 

2.153                 Regulatory Allocations.  “Regulatory Allocations” shall have the meaning set forth in Section 5.4.

 

2.154                 Remaining Capital Call Deficiency.  “Remaining Capital Call Deficiency” shall have the meaning ascribed to such term in Subsection 3.1(c)(iii).

 

2.155                 Response Notice.  “Response Notice” shall have the meaning ascribed to such term in Subsection 9.3(d).

 

2.156                 Restricted Person.  “Restricted Person” shall have the meaning ascribed to such term in Subsection 6.6(h).

 

2.157                 Returns.  “Returns” shall have the meaning ascribed to such term in Subsection 8.2(d).

 

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2.158                 Rollins Business.  “Rollins Business” shall mean the truck leasing business as conducted by Rollins Truck Leasing Corp. at the time of its acquisition by the Partnership and such business as may have been continued by the Partnership Group.

 

2.159                 Sale.  “Sale” (including, with its correlative meanings, “Sell” and “Sold”) with respect to a Partnership Interest shall mean any voluntary or involuntary sale, assignment, transfer or other disposition of all or any portion of such Partnership Interest (or any right or interest therein), including by operation of Law, but, for the avoidance of doubt, does not include the creation of any Liens upon a Partnership Interest unless the holder of such a Lien acquires all or any portion of such Partnership Interest or the Partnership Interest is otherwise sold, transferred or assigned in accordance with the Lien.

 

2.160                 Schedule.  “Schedule” shall refer to one of several written Schedules to this Agreement, as amended, restated, supplemented or otherwise modified from time to time to the extent permitted by this Agreement, each of which is hereby incorporated into and made a part of this Agreement for all purposes.

 

2.161                 SEC.  “SEC” shall mean the Securities and Exchange Commission or any successor agency.

 

2.162                 Securities.  “Securities” shall mean any common equity securities of the Partnership Registrant.

 

2.163                 Securities Act.  “Securities Act” shall mean the Securities Act of 1933, as amended and in effect from time to time, or the corresponding provisions of any successor statute, and the rules and regulations promulgated thereunder.

 

2.164                 Securities Activity.  “Securities Activity” shall have the meaning ascribed to such term in Subsection 6.6(j).

 

2.165                 Selling Interests.  “Selling Interests” shall have the meaning ascribed to such term in Subsection 10.1(d).

 

2.166                 Subject Purchaser.  “Subject Purchaser” shall have the meaning ascribed to such term in Subsection 3.1(c).

 

2.167                 Subject Year.  “Subject Year” shall mean a Partnership Year with respect to which Net Income for such Partnership Year or the fiscal quarters thereof is being calculated for purposes of determining whether distributions to the Partners are to be made under Section 5.1, regardless of whether such distributions are to be made in such Partnership Year or the following Partnership Year.

 

2.168                 Subject Year To Date.  “Subject Year to Date” shall mean the Subject Year through and including the quarter for which Net Income is being calculated.

 

2.169                 Subsidiary.  “Subsidiary” shall refer to (i) any corporation (or equivalent legal entity under foreign Law) of which another Person owns directly or indirectly more than fifty percent (50%) of the stock, the holders of which are ordinarily and generally, in the absence of

 

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contingencies or understandings, entitled to vote for the election of directors, (ii) any limited liability company in which such Person owns directly or indirectly more than fifty percent (50%) of the membership interests, (iii) any partnership in which such other Person owns directly or indirectly more than fifty percent (50%) of the partnership interests and (iv) any other entity of which another Person has the voting power to elect the majority of the members of the board of directors, the board of managers or a similar body of such entity.

 

2.170                 Tax Matters Partner.  “Tax Matters Partner” shall have the meaning ascribed to such term in Subsection 8.2(e).

 

2.171                 Third-Party Proposed Sale.  “Third Party Proposed Sale” shall have the meaning ascribed to such term in Subsection 9.3(c).

 

2.172                 Third Tier Built-In Gain.  “Third Tier Built-In Gain” shall have the meaning ascribed to such term in Subsection 5.5(d).

 

2.173                 TMP Eligible Partner.  “TMP Eligible Partner” shall have the meaning ascribed to such term in Subsection 8.2(e).

 

2.174                 Trade Name and Trademark Agreement.  “Trade Name and Trademark Agreement” shall mean that certain Amended and Restated Trade Name and Trademark Agreement, dated April 30, 2012, between Penske System, Inc. and the Partnership, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.175                 Transfer.  “Transfer” shall mean any Sale or creation of a Lien.

 

2.176                 Transfreight Group Companies.  “Transfreight Group Companies” shall mean, collectively, (i) Transfreight Inc., a Canadian corporation, (ii) Transfreight Integrated Logistics Inc., a Canadian corporation, (iii) Transfreight LLC, a Delaware limited liability company, and (iv) Transfreight S.A. de C.V., a Mexican corporation.

 

2.177                 Triggering Transfer.  “Triggering Transfer” shall have the meaning ascribed to such term in Subsection 9.4(d).

 

2.178                 UPREIT Structure.  “UPREIT Structure” shall have the meaning ascribed to such term in Subsection 10.1(a).

 

2.179                 Volcker Rule.  “Volcker Rule” shall have the meaning ascribed to such term in Subsection 6.5(d)(v).

 

2.180                 General Provisions.  Unless the context otherwise requires, as used in this Agreement, (i) the terms “herein”, “hereof’ and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision; (ii) terms used in the singular also include the plural and vice versa; (iii) all references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations; (iv) any pronoun shall include the corresponding masculine, feminine and neuter forms; (v) the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; (vi) the word “will” shall be construed to have the

 

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same meaning and effect as the word “shall”; (vii) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Section of, and Exhibits and Schedules to, this Agreement; and (viii) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

ARTICLE 3

 

CAPITAL CONTRIBUTIONS; ISSUANCE OF PARTNERSHIP INTERESTS; CAPITAL ACCOUNTS

 

3.1                               Additional Capital Contributions; Issuance of Additional Partnership Interests.

 

(a)                     Except as required in Section 3.3, no additional capital contributions shall be required to be made by the Partners.

 

(b)                     If at any time the Advisory Committee has approved raising additional equity capital pursuant to Subsection 6.5(c)(viii) or Subsection 6.5(f)(v) then the General Partner may, by written notice, cause the Partnership to make a voluntary capital call to all Partners for the amount of such additional equity capital.  Any such notice of any additional capital call shall include the following information: (i) the aggregate amount of the capital contributions to be made and the reason for such capital call, (ii) the fair market value of 100% of the Partnership Interests adjusted for limited (non-controlling) Partnership Interests, as determined reasonably and in good faith by the Advisory Committee (on a pro forma basis after giving effect to the full satisfaction of such capital call), and (iii) the aggregate Percentage Interest represented by such capital call (on a pro forma basis after giving effect to the full satisfaction of such capital call).

 

(c)                      (i)  A capital call by the Partnership pursuant to Subsection 3.1(b) shall remain open for thirty (30) days or such longer period as may be determined by the General Partner.  If by the end of such period, any of the Partners shall have failed to provide written notice to the General Partner that it has elected to contribute its pro rata portion of such capital call (based on its Percentage Interests), the General Partner shall inform the Partners in writing within two (2) Business Days thereafter of the amount of such capital call not subscribed for by any non-participating Partners and by any Partners not participating in full with respect to their pro rata shares (such aggregate deficiency, the “Initial Capital Call Deficiency”).

 

(d)                     Following receipt of notice from the General Partner of any Initial Capital Call Deficiency, each Partner that elected to contribute its pro rata portion of the capital call (each, an “Electing Partner”) shall be entitled to elect to make an additional capital contribution of up to its pro rata share of any such Initial Capital Call Deficiency (based upon the aggregate Percentage Interests of all Electing Partners that elected to make a capital contribution pursuant to this Subsection 3.1(c)(ii), without giving effect to such capital contribution).  Each Electing Partner that exercises this right to contribute up to such pro rata share of any Initial Capital Call Deficiency shall provide notice thereof to the General Partner and each other Partner within ten (10) days after receipt of such notice of Initial Capital Call Deficiency from the General Partner, specifying the maximum amount such Partner has elected to contribute pursuant to this Subsection 3.1(c)(ii).

 

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(e)                      In the event that the Electing Partners do not elect to contribute in the aggregate an amount sufficient to satisfy in full any Initial Capital Call Deficiency within such ten (10) day period, the General Partner shall inform the Partners in writing within two (2) Business Days thereafter of the amount of such Initial Capital Call Deficiency in respect of which Electing Partners have not elected to make additional capital contributions (the “Remaining Capital Call Deficiency”).

 

(f)                       Following receipt of notice from the General Partner of any Remaining Capital Call Deficiency, each Partner may elect to make additional capital contributions in respect of all or any portion of such Remaining Capital Call Deficiency by providing written notice thereof to the General Partner and each other Partner within ten (10) days after receipt of such notice of Remaining Capital Call Deficiency.

 

(g)                      If, within ten (10) days after receipt by each Partner of the notice of such Remaining Capital Call Deficiency, any Partners shall have provided notice to the General Partner of its election to contribute all or a portion of the Remaining Capital Call Deficiency, then the additional amount of capital to be contributed by all such Partners shall be allocated among them as follows:

 

(1)                                 (A)                               First, each participating Partner shall contribute its pro rata share of the Remaining Capital Call Deficiency (calculated by reference to the Percentage Interests of such participating Partners, but excluding, for purposes of such calculation, the Percentage Interests of any non-participating Partner) up to (but not to exceed) the additional amount it has agreed to contribute with respect to such Remaining Capital Call Deficiency; and

 

(2)                                 (B)                               Thereafter, if any of the Remaining Capital Call Deficiency shall not have been fully funded, each Partner that has contributed its full pro rata portion of such deficiency pursuant to Subsection 3.1(c)(v)(A) shall contribute its pro rata share of such remaining shortfall (calculated by reference to the Percentage Interests of only those Partners that have elected to contribute more than their pro rata share of the Remaining Capital Call Deficiency) up to (but not to exceed) the additional amount it has agreed to contribute, up to the remaining amount of such Remaining Capital Call Deficiency.

 

(h)                     Upon receipt by the General Partner of a Partner’s election to participate in a capital call pursuant to Subsection 3.1(c), such electing Partner shall be obligated to contribute to the Partnership the aggregate amount so elected, subject to reduction as provided herein and subject to abandonment of the capital call pursuant to Subsection 3.1(h). The failure by any Partner to elect to participate in the capital call pursuant to Subsections 3.1(c) shall be an irrevocable waiver of such Partner’s right to participate in satisfying such capital call.

 

(i)                         If (and only if) the Remaining Capital Call Deficiency is not satisfied in full by the participating Partners as provided in Subsection 3.1(c) (including, for the avoidance of doubt, following any capital call approved pursuant to Subsection 6.5(c)(viii)), then the General Partner may cause the Partnership to offer to sell and issue limited Partnership Interests, in a transaction that is exempt from the registration requirements of applicable securities Laws, to any Person that is a legal entity and is not a Partner or an Affiliate of any Partner (each, a

 

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“Subject Purchaser”) and to admit such Subject Purchasers as Limited Partners of the Partnership, provided that:

 

(i)                                      the pricing of the proposed issuance is at least equal to the greater of the fair market value of the limited Partnership Interests issued and sold or 90% of the implied price of limited Partnership Interests to the existing Partners in such immediately preceding capital call (based upon the notice delivered by the General Partner to the existing Partners pursuant to Section 3.1(b) above), and the proposed issuance is otherwise on arms’ length terms and conditions; provided that if the proposed issuance of limited Partnership Interests is at a price that is less than the implied price of limited Partnership Interests to the existing Partners in such immediately preceding capital call, then (A) the implied price of limited Partnership Interests to the existing Partners in the immediately preceding capital call shall be decreased to equal the price for limited Partnership Interests in such proposed issuance (but without reducing the amount of the capital contributions by the participating Partners in respect of such capital call), (B) the aggregate Percentage Interest represented by the preceding capital call shall be adjusted to reflect the implied price of limited Partnership Interests in the proposed issuance and the aggregate proceeds to be received by the Partnership in connection with such proposed issuance and related capital call and (C) the General Partner shall promptly notify the Partners of the matters reflected in clauses (A) and (B) above; and

 

(ii)                                   such issuance is only for the unsatisfied portion of the Remaining Capital Call Deficiency in respect of such immediately preceding capital call.

 

(j)                        Any offer and sale of limited Partnership Interests to a Subject Purchaser pursuant to Subsection 3.1(e) shall be made by the General Partner during the period of one hundred eighty (180) days following the final election by Electing Partners with respect to the Remaining Capital Call Deficiency and shall be at a price and on terms and conditions that, in the case of an issuance approved pursuant to Subsection 6.5(f)(v), comply with Subsection 3.1(e) and, in the case of an issuance approved pursuant to Subsection 6.5(c)(viii), comply with the terms and conditions set forth by the Advisory Committee in granting its approval.  In addition, such offer and sale shall be made only subject to the following conditions:

 

(i)                                      the purchase price is paid 100% in cash in U.S. dollars to the Partnership (less associated customary fees and expenses);

 

(ii)                                   no amendment, supplement or modification of any kind will be made to this Agreement in connection with the proposed issuance or the consummation thereof (other than to admit each of the purchasers thereof as Limited Partners, and to adjust the Percentage Interests of all Partners, in each case on Schedule A, after receipt by the Partnership of a true and complete copy of this Agreement duly executed by each such purchaser);

 

(iii)                                such issuance shall comply with applicable Laws (including any applicable securities Laws and any applicable regulatory filing requirement of any Governmental Authority with respect thereto); and

 

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(iv)                               none of the “bad actor” disqualifying events, described in Rule 506(d)(1)(i)-(viii) promulgated under the Securities Act, shall be applicable to any of the purchasers of such limited Partnership Interests pursuant to such issuance.

 

(k)                     The closing of the capital contributions and issuance and sale of limited Partnership Interests provided by this Section 3.1 shall be held simultaneously, at a time and place as determined by the General Partner.  However, if such issuance and sale is not consummated within one hundred eighty (180) days following the final election by participating Partners with respect to the Remaining Capital Call Deficiency, then the restrictions provided for herein shall again become effective, and no capital call and no issuance and sale of limited Partnership Interests may be made thereafter by the Partnership without again complying with the provisions of this Section 3.1.

 

(l)                         If the expected proceeds of any equity issuance pursuant to Subsection 3.1(e) are insufficient to satisfy any related Remaining Capital Call Deficiency, then the related capital call and proposed issuance of Partnership Interests shall be abandoned and shall not be consummated by the Partners or the Partnership; provided, however, that notwithstanding the foregoing, if the Partnership has received a notice or other indication from the applicable rating agency or agencies that the aggregate amount expected to be funded to the Partnership in connection with a capital call and related proposed issuance of Partnership Interests approved pursuant to Section 6.5(f)(v) (taking into account the amount of any Remaining Capital Call Deficiency) is nonetheless sufficient to avoid the Partnership’s loss of any minimum investment grade corporate, unsecured, long term debt rating, then (i) the General Partner shall provide, as promptly as practicable to the Partners, a written notice (x) describing such notice or other indication and (y) stating the General Partner’s reasonable determination that, taking into account such notice or other indication, that the aggregate amount expected to be funded to the Partnership in connection with such capital call and related proposed issuance is believed by the General Partner to be sufficient to avoid the Partnership’s loss of any such debt rating, and (ii) the related capital call and proposed issuance of Partnership Interests shall not be abandoned and shall be consummated by the Partners or the Partnership.

 

(m)                 Following the consummation of the transactions contemplated by this Section 3.1, (x) the Capital Accounts for each participating Partner shall be adjusted, and (y) the Percentage Interests of each of the Partners shall each be adjusted, in each case, as and to the extent applicable.

 

3.2                               Capital Contributions and Accounts.  As of the Effective Time, MBK CV and MBK USA CV are being admitted as Limited Partners, and each of them is succeeding to the Capital Account of the Partnership Interest(s) being transferred to it.  A Capital Account shall be maintained for each Partner on the books of the Partnership. Each Partner’s interest in the capital of the Partnership shall be represented by its Capital Account.  The Capital Account of each Partner as of the Effective Time, after giving effect to the first sentence of this Section 3.2, to all distributions and contributions made at or prior to the Effective Time, to all distributions made pursuant to Subsection 5.1(b) for the 2014 Subject Year and to all allocations of items of income, gain, loss and deduction (including all special allocations) with respect to any period (or a portion thereof) ending at or prior to the Effective Time, shall be proportionate to such Partner’s Percentage Interest as set forth on Schedule A in effect at the

 

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Effective Time.  The Partnership shall be permitted to adjust the Capital Account of each Partner after the Effective Time as appropriate to give effect to the immediately preceding sentence.

 

3.3                               Negative Capital Accounts.  In the event the Partnership is “liquidated” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g) (other than as a result of a termination under Section 708(b)(1)(B) of the Code), (x) distributions shall be made pursuant to Article 11 to the Partners who have positive Capital Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2), and (y) if the General Partner’s Capital Account has a deficit balance (after giving effect to all contributions, distributions, and allocations for all taxable years, including the taxable year during which such liquidation occurs), the General Partner shall contribute to the capital of the Partnership the amount necessary to restore such deficit balance to zero in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(3). If any Limited Partner has a deficit balance in its Capital Account (after giving effect to all contributions, distributions, and allocations for all taxable years, including the taxable year during which such liquidation occurs), such Limited Partner shall have no obligation to make any contribution to the capital of the Partnership with respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any other Person for any purposes whatsoever. In no event shall any transaction contemplated by clauses (x) and (y) of the first sentence of this Subsection 3.3 result in a change in any Partner’s Percentage Interest.

 

3.4                               Compliance with Treasury Regulations.  The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulation Section 1.704-1(b) (or any corresponding provision of succeeding Law) and shall be interpreted and applied in a manner consistent with such Regulation. In the event the General Partner shall determine and the Majority Limited Partners and the GE Representative Partner approve that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto, are computed in order to comply with such Regulation, the Partnership may make such modifications (provided that no such modification shall have a material adverse effect on the economic position of any Partner). The Partnership also shall make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Treasury Regulation Section 1.704-1(b) (or any corresponding provisions of succeeding Law provided that such modification shall not have a material adverse effect on the economic position of any Partner).

 

3.5                               Succession to Capital Accounts.  In the event any interest in the Partnership is Sold in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred interest. For purposes of the immediately preceding sentence, the portion of the Capital Account to which the transferee succeeds shall be that percentage of the transferor’s total Capital Account as the Percentage Interest being transferred bears to the total Percentage Interest of the transferor, taking into account Section 9.6.

 

3.6                               No Withdrawal of Capital Contributions.  No Partner shall withdraw any Capital Contributions without the unanimous written approval of the other Partners. No Partner shall receive any interest with respect to its Capital Contributions.

 

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3.7                               No Partnership Certificates.  No certificates to evidence a Partner’s interest in the Partnership (a “Partnership Certificate”) shall be issued and any Partnership Certificates previously issued shall be null and void and without any force or effect whatsoever.

 

3.8                               Percentage Interests.  Effective as of the Effective Time, the Percentage Interest of each Partner in the Partnership is as set forth on Schedule A hereto.

 

ARTICLE 4

 

COSTS AND EXPENSES

 

4.1                               Operating Costs.  The Partnership shall (i) pay or cause to be paid all costs and expenses of the Partnership incurred in pursuing and conducting, or otherwise related to, the business of the Partnership and (ii) reimburse the General Partner for any documented out-of-pocket costs and expenses incurred by it in connection therewith (including in the performance of its duties as tax matters partner), to the extent permitted by Section 6.7.

 

ARTICLE 5

 

DISTRIBUTIONS; PARTNERSHIP ALLOCATIONS;
 TAX MATTERS

 

5.1                               Distributions Prior to Dissolution.

 

(a)                     Preliminary Quarterly Distributions.  By no later than 45 days following the end of each of the first three quarters of each Subject Year, subject to Section 9.6, applicable Law and the terms of any applicable credit agreement, indenture, debt security or debt instrument, the Partnership shall make a distribution to the Partners of the amount, if any, by which fifty percent (50%) of Net Income for the Subject Year To Date exceeds the distributions made pursuant to this Subsection 5.1(a) with respect to such Subject Year (the “Preliminary Distributions”), in the following amounts, order and priority (for the avoidance of doubt, the amounts, order and priority of distributions pursuant to this Subsection 5.1(a) shall not apply to any distributions in accordance with Section 11.3 upon the dissolution of the Partnership and the failure to continue the Partnership as provided in Section 11.1):

 

(i)                                      First, in the event that the Partnership shall have sold all or substantially all of the Rollins Business, to GE Truck Leasing Holdco in an amount equal to the excess, if any, of (A) the excess, if any, of (1) $57,000,000, over (2) the product of (x) .40 times (y) the excess, if any, of (I) the initial Gross Asset Value of the Code Section 197 intangibles attributable to the Rollins Business, over (II) the sales price for such intangibles, over (B) all prior distributions to GE Truck Leasing Holdco pursuant to this Subsection 5.1(a)(i) or Subsection 5.1(b)(i); and

 

(ii)                                   Second, to the Partners pro rata in accordance with each Partner’s Percentage Interest.

 

(b)                     Annual Distributions.  With respect to any Subject Year, by no later than April 15 of the following Partnership Year, subject to Section 9.6, applicable Law and the terms

 

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of any applicable credit agreement, indenture, debt security or debt instrument, the Partnership shall make a distribution to the Partners of the amount, if any, by which fifty percent (50%) of Net Income for the Subject Year based on the Partnership’s audited financial statements determined in accordance with Generally Accepted Accounting Principles with respect to the Subject Year exceeds the cumulative Preliminary Distributions made with respect to the Subject Year (the “Final Distribution”), in the following amounts, order and priority (for the avoidance of doubt, the amounts, order and priority of distributions pursuant to this Subsection 5.1(b) shall not apply to any distributions in accordance with Section 11.3 upon the dissolution of the Partnership and the failure to continue the Partnership as provided in Section 11.1):

 

(i)                                      First, in the event that the Partnership shall have sold all or substantially all of the Rollins Business, to GE Truck Leasing Holdco in an amount equal to the excess, if any, of (A) the excess, if any, of (1) $57,000,000, over (2) the product of (x) .40 times (y) the excess, if any, of (I) the initial Gross Asset Value of the Code Section 197 intangibles attributable to the Rollins Business, over (II) the sales price for such intangibles, over (B) all prior and current distributions to GE Truck Leasing Holdco pursuant to Subsection 5.1(a)(i) and prior distributions to GE Truck Leasing Holdco pursuant to this Subsection 5.1(b)(i); and

 

(ii)                                   Second, to the Partners pro rata in accordance with each Partner’s Percentage Interest.

 

(c)                      Discretionary Special Distributions.  Except for distributions to the Partners in accordance with Subsections 5.1(a) and 5.1(b), the Partnership shall not, at any time prior to January 28, 2018, make any other distributions to the Partners (such other distributions “Discretionary Distributions”).  During the period from and after January 29, 2018 and on or prior to January 28, 2023, and provided that (x) the ratio of consolidated debt to consolidated equity of the Partnership is less than 3.0 to 1.0 immediately before, and after giving pro forma effect to the payment of, the proposed Discretionary Distributions and (y) the amount of all distributions made by the Partnership to the Partners during the then current calendar year does not exceed 80% of the consolidated net income of the Partnership for the then current Partnership Year through the date of such Discretionary Distribution, then the making of a Discretionary Distribution shall require a Level Four Approval.  For the avoidance of doubt, from and after January 29, 2023, the making of any Discretionary Distribution shall require a Level Four Approval. Any Discretionary Distributions made pursuant to this Subsection 5.1(c) shall be made by the Partnership to the Partners pro rata in accordance with each Partner’s Percentage Interest.

 

(d)                     Notice of Determination of Law.  If any determination is made by the General Partner that applicable Law would forbid any distribution pursuant to this Section 5.1, then the General Partner shall provide notice to the GE Representative Partner and MBK CV of such determination (which shall include the basis for such determination) and provide the GE Representative Partner and MBK CV with a reasonable opportunity to discuss such determination.

 

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5.2                               Partnership Allocations.

 

(a)                     Profits and Losses.  For each taxable year or portion of a taxable year for which the Partnership is required to allocate Profits, Losses, or other items pursuant to this Article 5, after giving effect to the special allocations set forth in Sections 5.3 and 5.4, and subject to the rules of Section 5.5 and Section 9.6, Profits and Losses of the Partnership for the relevant period shall be allocated to the Partners in proportion to their Percentage Interests, subject to the limitation in Subsection 5.2(b) below with respect to the allocation of Losses.

 

(b)                     Loss Limitation.

 

(i)                                      Capital Account Limitation.  The Losses allocated pursuant to Subsection 5.2(a) shall not exceed the maximum amount of Losses that can be so allocated without causing any Limited Partner to have an Adjusted Capital Account Deficit at the end of any taxable year. All Losses otherwise allocable to a Limited Partner in excess of the limitation set forth in this Subsection 5.2(b)(i) shall be allocated (A) in the case of any Penske Partner (other than PAG), first, to the other Penske Partners (other than PAG), if any, that are Limited Partners without such an Adjusted Capital Account Deficit in proportion to and to the extent of the amount of Losses that can be allocated to each such Penske Partner without causing it to have an Adjusted Capital Account Deficit and, thereafter, to the General Partner, (B) in the case of PAG, to the General Partner, (C) in the case of any GE Partner, first, to the other GE Partners without such an Adjusted Capital Account Deficit in proportion to and to the extent of the amount of Losses that can be allocated to each such GE Partner without causing it to have an Adjusted Capital Account Deficit and, thereafter, to the General Partner, (D) in the case of PTL GP, as a Limited Partner, (x) with respect to eighty-two percent (82%) of such excess losses, first to Penske Partners that are Limited Partners without such an Adjusted Capital Account Deficit, after the application of clauses (A), (B) and (C) of this Subsection 5.2(b)(i), in proportion to and to the extent of the amount of Losses that can be allocated to each such Limited Partner without causing it to have an Adjusted Capital Account Deficit and, thereafter, to the General Partner, and (y) with respect to eighteen percent (18%) of such excess losses, first to PAG to the extent of the amount of Losses that can be allocated to PAG, after the application of clause (B) of this Subsection 5.2(b)(i), without causing it to have an Adjusted Capital Account Deficit and, thereafter, to the General Partner, and (E) in the case of the Mitsui Partners, first, to the other Mitsui Partner if such other Mitsui Partner has no Adjusted Capital Account Deficit to the extent of the amount of Losses that can be allocated to such other Mitsui Partner without causing it to have an Adjusted Capital Account Deficit and, thereafter, to the General Partner.

 

(ii)                                   Tax Basis Limitation.  If, as a result of the application of Code Section 704(d), the federal income tax loss associated with an allocation of Losses allocated to a Partner pursuant to Subsection 5.2(a) or Subsection 5.2(b)(i) cannot be claimed by such Partner for the taxable year during which such Losses arose, then such Losses may be reallocated as set forth in this Subsection 5.2(b)(ii), but only to the extent such Partner consents to such reallocation, in the following manner and order: (A) if any Penske Partner other than PAG is limited to any extent by Code Section 704(d) with respect to its ability to claim tax losses associated with an allocation of Losses pursuant to Subsection 5.2(a) or Subsection 5.2(b)(i), then the other Penske Partners among such group that are not so limited may elect, by written notice to the General Partner, to have such Losses allocated to them in proportion to and to the extent of the amount of such Losses that can be allocated to each such

 

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Penske Partner without causing its ability to claim the tax losses associated with such Losses to be limited under Code Section 704(d) and without causing it to have an Adjusted Capital Account Deficit; (B) if any GE Partner is limited to any extent by Code Section 704(d) with respect to its ability to claim tax losses associated with an allocation of Losses pursuant to Subsection 5.2(a) or Subsection 5.2(b)(i), then the other GE Partners among such group that are not so limited may elect, by written notice to the General Partner, to have such Losses allocated to them in proportion to and to the extent of the amount of such Losses that can be allocated to each such GE Partner without causing its ability to claim the tax losses associated with such Losses to be limited under Code Section 704(d) and without causing it to have an Adjusted Capital Account Deficit; and (C) if PTL GP is limited to any extent by Code Section 704(d) with respect to its ability to claim tax losses associated with an allocation of Losses pursuant to Subsection 5.2(a) or Subsection 5.2(b)(i), then the Penske Partners (other than PAG) that are not so limited may elect, by written notice to the General Partner, to have up to eighty-two percent (82.00%) of such Losses allocated to them in proportion to and to the extent of the amount of such Losses that can be allocated to each such Penske Partner without causing its ability to claim the tax losses associated with such Losses to be limited under Code Section 704(d) and without causing it to have an Adjusted Capital Account Deficit, PAG may elect, by written notice to the General Partner, to have up to eighteen percent (18.00%) of such Losses allocated to it to the extent of the amount of such Losses that can be allocated to PAG without causing its ability to claim the tax losses associated with such Losses to be limited under Code Section 704(d) and without causing it to have an Adjusted Capital Account Deficit and (D) if any Mitsui Partner is limited to any extent by Code Section 704(d) with respect to its ability to claim tax losses associated with an allocation of Losses pursuant to Subsection 5.2(a) or Subsection 5.2(b)(i), then the other Mitsui Partner that is not so limited may elect, by written notice to the General Partner, to have such Losses allocated to it to the extent of the amount of such Losses that can be allocated to such other Mitsui Partner without causing such other Mitsui Partner’s ability to claim the tax losses associated with such Losses to be limited under Code Section 704(d) and without causing such other Mitsui Partner to have an Adjusted Capital Account Deficit.

 

5.3                               Special Allocations.  The following special allocations shall be made in the following order:

 

(a)                     Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(f), notwithstanding any other provision of this Article 5, if there is a net decrease in Partnership Minimum Gain during any Partnership taxable year, each Partner shall be specially allocated items of Partnership income and gain for such taxable year (and, if necessary, subsequent taxable years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain, determined in accordance with Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Subsection 5.3(a) is intended to comply with the minimum gain chargeback requirement in Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

 

(b)                     Partner Minimum Gain Chargeback.  Except as otherwise provided in Regulations Section 1.704-2(i)(4), notwithstanding any other provision of this Article 5, if there

 

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is a net decrease in Partner Nonrecourse Debt Minimum Gain attributable to a Partner Nonrecourse Debt during any Partnership taxable year, each Partner who has a share of the Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of Partnership income and gain for such taxable year (and, if necessary, subsequent taxable years) in an amount equal to such Partner’s share of the net decrease in Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Subsection 5.3(b) is intended to comply with the minimum gain chargeback requirement in Regulations Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

 

(c)                      Qualified Income Offset.  In the event any Limited Partner unexpectedly receives any adjustments, allocations, or distributions described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), Section 1.704-1(b)(2)(ii)(d)(5), or Section 1.704-1(b)(2)(ii)(d)(6), items of Partnership income and gain shall be specially allocated to each such Limited Partner in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital Account Deficit of such Limited Partner as quickly as possible, provided that an allocation pursuant to this Subsection 5.3(c) shall be made only if and to the extent that such Limited Partner would have an Adjusted Capital Account Deficit after all other allocations provided for in this Article 5 have been tentatively made as if this Subsection 5.3(c) were not in the Agreement.

 

(d)                     Gross Income Allocation.  In the event any Limited Partner has a deficit Capital Account at the end of any taxable year that is in excess of the sum of (i) the amount such Limited Partner is obligated to restore (pursuant to the terms of this Agreement or otherwise) and (ii) the amount such Limited Partner is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Limited Partner shall be specially allocated items of Partnership income and gain in the amount of such excess as quickly as possible; provided that an allocation pursuant to this Subsection 5.3(d) shall be made only if and to the extent that such Limited Partner would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article 5 have been made as if Subsection 5.3(c) and this Subsection 5.3(d) were not in the Agreement.

 

(e)                      Nonrecourse Deductions.  Nonrecourse Deductions for any taxable year shall be specially allocated among the Partners in proportion to their Percentage Interests.

 

(f)                       Partner Nonrecourse Deductions.  Any Partner Nonrecourse Deductions for any taxable year shall be specially allocated to the Partner who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable in accordance with Regulations Section 1.704-2(i)(1).

 

(g)                      Code Section 754 Adjustment.  To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) (2) or 1.704-1(b)(2)(iv)(m)(4), to be taken into

 

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account in determining Capital Accounts as the result of a distribution to a Partner in complete liquidation of its interest in the Partnership, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Partners in accordance with their interests in the Partnership in the event Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Partners to whom such distribution was made in the event Regulations Section 1.704-1(b)(2)(iv)(m) (4) applies.

 

(h)                     Special Allocation of Income and Gain to GE Truck Leasing Holdco Upon Liquidation.  In the event that, during any taxable year, the Partnership dissolves and is liquidated pursuant to Article 11, (i) GE Truck Leasing Holdco shall be specially allocated items of Partnership income and gain in an amount equal to $35,600,000 (or, in the event that GE Truck Leasing Holdco ceases to be a Partner, the other GE Partners shall be specially allocated such items of income and gain, pro rata), and (ii) MBK CV and MBK USA CV shall be specially allocated items of Partnership income and gain in amounts equal to $7,120,000 and $1,780,000, respectively (or, in the event that MBK CV or MBK USA CV ceases to be a Partner, the remaining Mitsui Partner shall be specially allocated the aggregate amount of such items of income and gain).

 

(i)                         Special Allocation of Gain.  In the event that, in any taxable year, the Partnership realizes, or is deemed to realize, a gain from the sale, disposition, or adjustment to the Gross Asset Value of Partnership Property, the gain from such sale, disposition or adjustment that would have been allocated to each Partner of the same group under Sections 5.2, 5.3 and 5.4 of this Agreement (other than this Section 5.3(i)) shall be re-allocated among the Partners of such same group in proportion to, and to the extent of, the excess, if any, of (i) the aggregate amount of Losses allocated to each such Partner (or its predecessor or transferor) for the current and all prior taxable years pursuant to Subsection 5.2(b)(ii) or the Corresponding Provision of any Prior Agreement, over (ii) the cumulative amount of gain allocated to such Partner (or its predecessor or transferor) pursuant to this Subsection 5.3(i) or the Corresponding Provision of any Prior Agreement for all prior tax years..

 

5.4                               Curative Allocations.  The allocations set forth in Subsections 5.2(b)(i), 5.3(a), 5.3(b), 5.3(c), 5.3(d), 5.3(e), 5.3(f) and 5.3(g) and the Corresponding Provisions of the Prior Agreements (the “Regulatory Allocations”) are intended to comply with certain requirements of the Regulations. It is the intent of the Partners that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of Partnership income, gain, loss or deduction pursuant to this Section 5.4 Therefore, notwithstanding any other provision of this Article 5 (other than the Regulatory Allocations), the General Partner shall make such offsetting special allocations of Partnership income, gain, loss or deduction in whatever manner it determines appropriate (without causing an Adjusted Capital Account Deficit for any Partner) so that, after such offsetting allocations are made, each Partner’s Capital Account balance is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations were not part of the Agreement or any Prior Agreement and all Partnership items were allocated pursuant to Subsections 5.2(a), 5.2(b)(ii), 5.3(h) and 5.3(i) or the Corresponding Provisions of the Prior Agreements. In exercising its discretion under this Section 5.4, the General Partner shall take into account future Regulatory Allocations under Subsections 5.3(a) and 5.3(b) that, although

 

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not yet made, are likely to offset other Regulatory Allocations previously made under Subsections 5.3(e) and 5.3(f).

 

5.5                               Other Allocation Rules.

 

(a)                     Profits, Losses, and any other items of income, gain, loss, deduction, or credit shall be allocated to the Partners pursuant to this Article 5 as of the last day of each taxable year, provided that Profits, Losses, and such other items shall also be allocated at such times as the Gross Asset Values of Partnership assets are adjusted pursuant to subparagraph (2) of Subsection 2.59.

 

(b)                     The Partners are aware of the income tax consequences of the allocations made by this Article 5 and hereby agree to be bound by the provisions of this Article 5 in reporting their shares of Partnership income and loss for income tax purposes.

 

(c)                      For purposes of determining the Profits, Losses, or any other items of income, gain, loss, deduction, or credit allocable to any period, Profits, Losses, and any such other items shall be determined on a daily, monthly, or other basis using the closing of the books method or, if proposed by the General Partner and approved by the GE Representative Partner with respect to a particular period, any other permissible method under Code Section 706 and the Regulations thereunder. Notwithstanding the foregoing, in respect of the calendar month in which the Mitsui Partners acquire Partnership Interests from the GE Partners as of the Effective Time, the General Partner shall allocate the monthly Profits, Losses and other items of income, gain, loss, deduction or credit with respect to such Partnership Interests as follows: (i) the product of such monthly Profits, Losses and other items multiplied by a fraction, the numerator of which is the number of days of such month that have elapsed (based on the close of business) as of the Effective Time, and the denominator of which is the total number of days of such month, shall be allocated to the transferring GE Partners, and (ii) the product of such monthly Profits, Losses and other items multiplied by a fraction, the numerator of which is the number of days of such month that occur after the Effective Time, and the denominator of which is the total number of days of such month of, shall be allocated to the Mitsui Partners.

 

(d)                     Any “excess nonrecourse liability” of the Partnership, within the meaning of Regulations Section 1.752-3(a)(3), shall be allocated first among the Partners in proportion to and to the extent of the amount of built-in gain that is allocable to each such Partner on section 704(c) property or property for which reverse section 704(c) allocations are applicable where such property is subject to the nonrecourse liability to the extent that such built-in gain exceeds the gain described in Regulations Section 1.752-3(a)(2) with respect to such property (“Third Tier Built-In Gain”), except that, if and to the extent necessary for a Partner or Partners to avoid a limitation in a taxable year on Partnership deductions or losses under Code Section 704(d) or the recognition of gain on a Partnership distribution under Code Section 731(a)(1), allocations based on Third Tier Built-In Gain for such taxable year shall be increased to such Partner or Partners and reduced to one or more other Partners, in each case in accordance with Regulations Section 1.752-3(a)(3), provided that such decreases have no adverse effect under Code Section 704(d) or 731(a)(1) on any Partner for such taxable year. The amount of any excess nonrecourse liabilities not allocated pursuant to the preceding sentence shall be allocated in accordance with

 

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the Partners interests in Partnership profits. Solely for purposes of this Subsection 5.5(d), the Partners’ interests in Partnership profits are in proportion to their Percentage Interests.

 

5.6                               Tax Allocations; Code Section 704(c).

 

(a)                     In accordance with Section 704(c) of the Code and the Treasury Regulations thereunder, income, gain, loss, and deduction with respect to any property contributed to the capital of the Partnership shall, solely for tax purposes, be allocated among the Partners so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income tax purposes and its initial Gross Asset Value.

 

(b)                     In the event the Gross Asset Value of any asset of the Partnership shall be or has been adjusted pursuant to the provisions of this Agreement or any Prior Agreement, subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in the same manner as under Section 704(c) of the Code and the Treasury Regulations thereunder.

 

(c)                      Any elections or other decisions relating to such Section 704(c) allocations shall be made by the Partners in any manner that reasonably reflects the purpose and intention of this Agreement. Section 704(c) allocations pursuant to this Section 5.6 are solely for purposes of federal, state, and local taxes and shall not affect, or in any way be taken into account in computing, any Partner’s Capital Account or share of Profits, Losses, other items, or distributions pursuant to any provision of this Agreement.

 

(d)                     The Partnership shall continue to use the “remedial allocation method” (as defined in Regulations Section 1.704-3(d)) for purposes of computing section 704(c) allocations and reverse section 704(c) allocations to the extent that it previously adopted that method with respect to property contributed to the Partnership with a Gross Asset Value that differed from its adjusted tax basis at the time of contribution and property for which differences between Gross Asset Value and adjusted tax basis were created by a revaluation of Partnership property pursuant to Regulations Section 1.704-1(b)(2)(iv)(f).

 

(e)                      Except as otherwise provided in Subsection 5.6(d) or Subsection 5.6(f), the Partnership shall use the “traditional method” (as defined in Regulations Section 1.704-3(d)) for purposes of computing section 704(c) allocations with respect to property contributed to the Partnership with a Gross Asset Value that differs from its adjusted tax basis at the time of contribution and reverse section 704(c) allocations with respect to property for which differences between Gross Asset Value and adjusted tax basis are created when the Partnership revalues Partnership property pursuant to Regulations Section 1.704-1(b)(2)(iv)(f).

 

(f)                       The Partnership may use any method or combination of methods that is reasonable, under Regulations Section 1.704-3(a), that is proposed in writing by the General Partner and approved by the GE Representative Partner in writing, for purposes of computing section 704(c) allocations with respect to specific contributions of property, as identified in the General Partner’s written proposal, or for purposes of computing reverse section 704(c)

 

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allocations with respect to specific revaluations of property pursuant to Regulations Section 1.704-1(b)(2)(iv)(f), as identified in the General Partner’s written proposal.

 

(g)                      The Partnership shall account for any goodwill of the Partnership with respect to which there is a Code Section 734(b) basis adjustment consistent with the provisions of Regulations Section 1.197-2 (including Regulations Section 1.197-2(k), Example 31).

 

5.7                               Accounting Method.  The books of the Partnership (for both tax and financial reporting purposes) shall be kept on an accrual basis.

 

ARTICLE 6

 

MANAGEMENT

 

6.1                               Rights and Duties of the Partners.

 

(a)                     The Limited Partners shall not participate in the control of the business of the Partnership and shall have no power to act for or bind the Partnership. The Limited Partners shall have the right to approve certain actions proposed to be taken by the General Partner and certain voting rights, all as set forth herein.

 

(b)                     Subject to Delaware Law, no Limited Partner shall be liable for losses or debts of the Partnership beyond the aggregate amount such Partner is required to contribute to the Partnership pursuant to this Agreement plus such Partner’s share of the undistributed net profits of the Partnership, except that nothing in this Subsection 6.1(b) shall limit any liability, obligation or claim incurred by a Limited Partner in its capacity as General Partner at such time as it was acting as the General Partner of the Partnership.

 

6.2                               Fiduciary Duty of General Partner.  The General Partner shall have fiduciary responsibility for the safekeeping and use of all funds and assets (including records) of the Partnership, whether or not in its immediate possession or control, and the General Partner shall not employ, or permit another to employ, such funds or assets in any manner except for the exclusive benefit of the Partnership.

 

6.3                               Powers of General Partner.

 

(a)                     Subject to the terms and conditions of this Agreement, the General Partner shall have full and complete charge of all affairs of the Partnership, and the management and control of the Partnership’s business shall rest exclusively with the General Partner. Except as otherwise provided in the Act or by this Agreement, the General Partner shall possess all of the rights and powers of a partner in a partnership without limited partners under Delaware Law. The General Partner shall be required to devote to the conduct of the business of the Partnership such time and attention as is necessary to accomplish the purposes, and to conduct properly the business, of the Partnership.

 

(b)                     Subject to the limitations set forth in this Agreement, including but not limited to Section 6.5, the General Partner shall perform or cause to be performed all management and operational functions relating to the business of the Partnership. Without

 

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limiting the generality of the foregoing, the General Partner is solely authorized on behalf of the Partnership, in the General Partner’s sole discretion and without the approval of the Limited Partners, to:

 

(i)                                      expend the capital and revenues of the Partnership in furtherance of the Partnership’s business set forth in clauses (i), (ii), (iii) and (iv) of Section 1.4 or otherwise approved in accordance with Subsection 6.5(c)(iv) after the Effective Time, and pay, in accordance with the provisions of this Agreement, all expenses, debts and obligations of the Partnership to the extent that funds of the Partnership are available therefor;

 

(ii)                                   subject to Section 6.5(d)(v), make investments in United States government securities, securities of governmental agencies, commercial paper, insured money market funds, bankers’ acceptances and certificates of deposit, pending disbursement of the Partnership funds in furtherance of the Partnership’s business set forth in clauses (i), (ii), (iii) and (iv) of Section 1.4 or otherwise approved in accordance with Subsection 6.5(c)(iv) after the Effective Time or to provide a source from which to meet contingencies;

 

(iii)                                enter into and terminate agreements and contracts with third parties in furtherance of the Partnership’s business set forth in clauses (i), (ii) and (iii) of Section 1.4 or otherwise approved in accordance with Subsection 6.5(c)(iv) after the Effective Time, institute, defend and settle litigation arising therefrom, and give receipts, releases and discharges with respect to all of the foregoing;

 

(iv)                               maintain, at the expense of the Partnership, adequate records and accounts of all operations and expenditures and furnish any Partner with the reports referred to in Section 8.2;

 

(v)                                  purchase, at the expense of the Partnership, liability, casualty, fire and other insurance and bonds to protect the Partnership’s properties, business, partners and employees and to protect the General Partner and its employees;

 

(vi)                               employ, at the expense of the Partnership, consultants, accountants, attorneys, and others and terminate such employment; provided, however, that if any Affiliate of any Partner is so employed, such employment shall be in accordance with Section 6.7;

 

(vii)                            execute and deliver any and all agreements, documents and other instruments necessary or incidental to the conduct of the business of the Partnership; and

 

(viii)                         incur indebtedness, borrow funds and/or issue guarantees, in each case for the conduct of the Partnership’s business set forth in (i), (ii), (iii) and (iv) of Section 1.4 or otherwise approved in accordance with Subsection 6.5(c)(iv) after the Effective Time.

 

By executing this Agreement, each Partner shall be deemed to have consented to any exercise by the General Partner of any of the foregoing powers.

 

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(c)                      The General Partner shall cause Schedule A to be amended to reflect any Sale of a Partner’s Partnership Interest (to the extent permitted by this Agreement), the total Percentage Interest of each Partner, any change in name of the Partnership or change in the name or names under which the Partnership conducts its business (to the extent permitted by this Agreement), and receipt by the Partnership of any notice of change of address of a Partner. The amended Schedule A, which shall be kept on file at the principal office of the Partnership, shall supersede all such prior Schedules and become part of this Agreement, and the General Partner shall promptly forward a copy of the amended Schedule A to each Partner upon each amendment thereof.

 

6.4                               Advisory Committee.

 

(a)                     Selection of the Advisory Committee.  The Partnership shall have an Advisory Committee (the “Advisory Committee”) consisting of five (5) members. Of the five (5) Advisory Committee members, three (3) shall be designated by PTLC (each, a “Penske Committee Member”) and, subject to Section 9.5(d), one (1) shall be designated by the GE Representative Partner (a “GE Committee Member”) and one (1) shall be designated by MBK CV (the “Mitsui Committee Member”). Schedule B annexed hereto sets forth the members of the Advisory Committee as of the Effective Time.

 

(b)                     Functions of the Advisory Committee; Quorum; Vote Required for Action.

 

(i)                                      The Advisory Committee shall consult with and advise the General Partner with respect to the business of the Partnership. In addition, the Advisory Committee shall review any matters or actions proposed to be taken by the General Partner which pursuant to Section 6.5 hereof require the Advisory Committee’s prior approval. Subject to the provisions of Subsection 6.4(b)(ii) below and provided that notice shall have been duly given as set forth in Subsection 6.4(c) below: (A) at any meeting of the Advisory Committee in which an action requiring a Level One Approval shall be considered, the presence of a Level One Quorum shall be a quorum for the consideration of such action, (B) at any meeting of the Advisory Committee in which an action requiring a Level Two Approval shall be considered, the presence of a Level Two Quorum shall be a quorum for the consideration of such action, (C) at any meeting of the Advisory Committee in which an action requiring a Level Three Approval shall be considered, the presence of a Level Three Quorum shall be a quorum for the consideration of such action, and (D) at any meeting of the Advisory Committee in which an action requiring a Level Four Approval shall be considered, the presence of a Level Four Quorum shall be a quorum for the consideration of such action, and (E) at any other meeting of the Advisory Committee, the presence of a Level Four Quorum shall be the quorum necessary for the conduct of any other business.

 

(ii)                                   With respect to any regularly-scheduled meeting of the Advisory Committee, and any other meeting of the Advisory Committee notice of which shall have been duly given as set forth in Subsection 6.4(c) below, in the event that a quorum shall not be present at the time and place fixed for such regularly-scheduled meeting or specified in such notice of any other meeting, then such meeting shall automatically be adjourned (without the need for further notice) until the same time (and at the same place) on the next succeeding

 

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Business Day. At any meeting of the Advisory Committee which shall have been so adjourned, the number of members specified for the quorum in Subsection 6.4(b)(i) above shall constitute a quorum solely with respect to (A) as to any regularly-scheduled meeting of the Advisory Committee, any matter that may properly be considered at such meeting and (B) as to any other meeting of the Advisory Committee, only those matters which shall have been specified in the notice calling the meeting which was so adjourned and no other matters, and any action purportedly taken by the Advisory Committee in contravention of the foregoing shall be void and of no force or effect whatsoever.

 

(iii)                                Each member of the Advisory Committee shall have one vote on all matters which may come before the Advisory Committee for decision. Members of the Advisory Committee may be present and vote at meetings thereof in person or by written proxy. All actions by the Advisory Committee shall require the affirmative vote of a majority of the members of the Advisory Committee and in certain circumstances as further specified in Subsections 6.5(c), 6.5(d), 6.5(e) and 6.5(f) below the affirmative vote set forth in such sections.

 

(c)                      Meetings in Person or by Telephone; Notice; Action by Written Consent.  Meetings of the Advisory Committee may be in person, by telephonic communication or by such other means as to permit all members to hear and be heard by each other at the same time. All members of the Advisory Committee shall be given not less than five (5) Business Days’ advance notice of all meetings (other than regularly scheduled meetings), which notice shall set forth the business to be considered at such meeting, the time of such meeting and the place of such meeting (if other than the principal office of the Partnership). Notice of any meeting may be waived by means of a written instrument, including by electronic transmission that may be printed on paper, to such effect executed and delivered by the waiving member to the Partnership either prior to or after such meeting. Meetings in person shall be held at the principal office of the Partnership, or at such other place as may be determined by the Advisory Committee and, at any such meeting, any one or more members of the Advisory Committee may participate by means of telephonic communication or other means as aforesaid, so long as all members of the Advisory Committee participating in such meeting can hear and be heard by one another, and such participation shall be deemed presence in person for purposes of such meeting.  Any action required or permitted to be taken at any meeting of the Advisory Committee may be taken without a meeting if all members of the Advisory Committee approve such action in a writing or writings or by electronic transmission or transmissions, and the writing or writings or electronic transmission or transmissions are filed with the minutes of meetings of the Advisory Committee.  Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

 

(d)                     Regular Meetings and Special Meetings.

 

(1)                                 Regular meetings of the Advisory Committee shall be held at such times as the Advisory Committee shall from time to time determine, but no less frequently than once each quarter of the Partnership Year.

 

(2)                                 Special meetings of the Advisory Committee shall be held whenever called by any member of the Advisory Committee upon no less than five (5) Business

 

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Days’ notice to each member of the Advisory Committee prior to such meeting unless such notice is waived by each such member. Any and all business that may be transacted at a regular meeting of the Advisory Committee may be transacted at a special meeting, subject to the notice requirements of Subsection 6.4(b)(ii)(B).

 

(3)                                 As and to the extent practicable, the members of the Advisory Committee shall be furnished in advance of any regular or special meetings of the Advisory Committee, information relating to any action to be submitted at such regular or special meeting for any Level One Approval, Level Two Approval, Level Three Approval and/or Level Four Approval, as applicable, by the Advisory Committee.

 

(4)                                 At each meeting of the Advisory Committee, the General Partner shall provide to each member of the Advisory Committee a written summary of any and all actions, claims or proceedings initiated by the Partnership where the same involves claims in excess of $1,000,000 (other than any vehicle-related accident claims).

 

(e)                      Resignation, Replacement and Removal of Advisory Committee Members.  Any Penske Committee Member may be removed at any time, with or without cause, by proposal of PTLC. Any GE Committee Member may be removed at any time, with or without cause, by proposal of the GE Representative Partner. Any Mitsui Committee Member may be removed at any time, with or without cause, by proposal of MBK CV. In the event of the death, adjudication of insanity or incompetency, resignation, withdrawal or removal of: (i) a Penske Committee Member, PTLC shall designate a replacement member; or (ii) the other Committee Members, the Partner authorized under Subsections 6.4(a) or 9.5(d) to designate such Committee Member shall designate a replacement member.

 

(f)                       Certain Provisions with respect to the Advisory Committee.  The Advisory Committee may adopt from time to time appropriate rules and regulations concerning the frequency and conduct of its meetings. Any member of the Advisory Committee may delegate any or all of his or her authority as a member of the Advisory Committee to any person, or may appoint any person as such member’s proxy with respect to any matter or matters to be considered or action to be taken by the Advisory Committee, provided that the Partner which designated the Advisory Committee member has approved such delegation or appointment in writing. Such approval may be revoked by the granting Partner or Advisory Committee member at any time, provided that any such revocation shall not affect the validity of any action taken by such delegate or proxy prior to such revocation.

 

(g)                      Audit Function.  The Partnership has engaged the Auditor as its independent auditors. The Advisory Committee shall review and confer with respect to the performance of the Partnership’s independent auditors and may, by Level One Approval, require that such auditors be substituted by the General Partner; provided, however, that notwithstanding the foregoing only a Level Four Approval shall be required if the substitute auditors are Deloitte LLP, KPMG LLP, PricewaterhouseCoopers LLP or Ernst & Young LLP (or, with respect to each, any successor firm thereof).  The Partnership shall maintain an internal audit staff which (i) shall report directly to the Advisory Committee and (ii) shall not be utilized by any Partner or any of its Affiliates (other than the Partnership Group) with respect to its separate business.

 

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(h)                     No Liability.  Notwithstanding anything else contained in this Agreement, the Advisory Committee shall not be deemed to possess and shall not exercise any power that, if possessed or exercised by a Limited Partner, would constitute participation in the control of the business of the Partnership, within the meaning of Section 17-303 of the Delaware Revised Uniform Limited Partnership Act, and no member of the Advisory Committee shall be liable to the Partnership, the General Partner, any Limited Partner, or any other person or entity for any losses, claims, damages or liabilities arising from any act or omission performed or omitted by it as a member of the Advisory Committee other than acts or omissions involving willful misconduct or bad faith or a breach of Subsection 6.4(i). The Partnership shall indemnify, to the fullest extent permitted by Law, each member of the Advisory Committee (and any proxy thereof) against losses, claims, damages or liabilities arising from any act or omission performed or omitted by him or her as a member of the Advisory Committee or any subcommittee thereof from time to time other than those involving willful misconduct or bad faith on the part of such committee member or a breach of Subsection 6.4(i).

 

(i)                         Confidentiality.  With respect to any and all information provided to or obtained by any Partner, any assignees of Partnership Interests or any of their Affiliates, or any of its or their directors, officers, employees, agents, representatives or advisors, including Non-Voting Observers, as a result of such Partner being a Partner in the Partnership or its designee being a member of or an observer on the Advisory Committee (except for the exclusions below, “Evaluation Material”), such Partner and each of its Affiliates, and its and their directors, officers, employees, agents, representatives or advisors, including a Non-Voting Observer, shall hold such information in strict confidence and use such information solely in connection with such Partner’s evaluation of its investment in the Partnership; provided, however, that any Partner may disclose such information (a) as required by applicable law, rule or regulation (including but not limited to the Securities Act, the Exchange Act, or applicable securities laws of any other jurisdiction, or rules of a stock exchange or other self-regulatory bodies), (b) to any person involved in the preparation of the Partner’s or any of its Affiliates’ financial statements, public filings or tax returns, (c) to any of its own Affiliates, or its or their directors, officers, employees, agents, representatives or advisors who are informed of the strictly confidential nature of such information and are or have been advised of their obligation to keep information of this type strictly confidential, (d) upon the request or demand of any Governmental Authority having jurisdiction over any of the Partnership or any of their Partners or any of their Affiliates or (e) to any person and such person’s advisors with whom any Partner or any of its Affiliates is contemplating a financing transaction or to whom such Partner is contemplating a Transfer of all or any portion of its Partnership Interests in accordance with the terms of this Agreement (a “Potential Buyer”), provided that such Potential Buyer and such person’s advisors are advised of the strictly confidential nature of such information and the Potential Buyer agrees to be bound by a confidentiality agreement containing protective provisions no less protective of the information of the Partnership than provided in this Agreement. All press releases, public announcements, and similar publicity (other than such public announcements required by applicable law, rule or regulation, pursuant to clause (a) in the immediately preceding sentence) respecting the Partnership and referencing the name of any Partner or any Affiliate of any Partner (“Non-Issuing Partner”) other than the Partner issuing such press release, public announcement, similar publicity or making such required disclosure shall be made only with the prior written consent of such Non-Issuing Partner, which consent will not be unreasonably withheld; provided, however, that without consent any Partner may state in such a public announcement that it is a Partner and

 

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disclose the legal names of the Partnership, and the other Partners and their respective parents. Nothing in this paragraph shall waive any attorney-client privilege, attorney work product privilege or other privilege, and any information subject to such privilege shall not be disclosed except by agreement of the Advisory Committee or as required by applicable law, rule or regulation or restrict the Partnership’s ability to issue press releases in the ordinary course of business. For purposes of this Subsection 6.4(i), the Partnership shall not be deemed to be an Affiliate of any of the Partners. “Evaluation Material” shall not include information that (i) is or becomes generally available to the public other than as a result of a disclosure by the applicable Partner, its representatives or others to whom it voluntarily discloses such information other than Governmental Authorities (the “Recipient Group”) in breach of this Agreement, (ii) was available to a member of the Recipient Group prior to such information’s disclosure by or on behalf of the Partnership from a source (other than Recipient Group) who, to the knowledge of the applicable Partner, is not subject to a confidentiality agreement with, or other obligation of secrecy to, the Partnership, its Affiliates or representatives prohibiting such disclosure, (iii) is or becomes available to the Recipient Group from a source (other than the Recipient Group) who, to the knowledge of the applicable Partner, is not subject to a confidentiality agreement with, or other obligation of secrecy to, the Partnership, its Affiliates or representatives prohibiting such disclosure, or (iv) was independently developed by the Recipient Group without reference to the Evaluation Material. If a member of the Recipient Group is requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, or similar legal process or by regulatory agency, or stock exchange or other applicable rules) to disclose any of the Evaluation Material, or if a member of the Recipient Group determines that such Evaluation Material is required to be disclosed by applicable law, rule or regulation, the applicable Partner agrees promptly upon obtaining knowledge of such request, requirement or determination to disclose to provide the Advisory Committee with prompt notice of each such request or determination, to the extent practicable and not legally prohibited, so that the Partnership or a Partner as appropriate may seek an appropriate protective order (at its own cost and expense). If, absent the entry of a protective order or other appropriate remedy, the applicable member of a Recipient Group is legally required to disclose the Evaluation Material, such applicable member may disclose such information only to the persons and to the extent required without liability under this Agreement.  Notwithstanding the foregoing, GECC, the GE Partners, the Partnership and its Subsidiaries are subject to rules and regulations of, and examination and supervision by, the Board of Governors of the Federal Reserve System and in certain circumstances other regulators and supervisors of financial institutions (the “Bank Regulators”).  Nothing in this Agreement shall be deemed to preclude or restrict any of such entities from disclosing, pursuant to the examination or supervisory requirements or requests of any of the Bank Regulators, to any of the Bank Regulators with jurisdiction over such entities at such time, or any such Bank Regulators from obtaining access to, any Evaluation Material, and in connection therewith such entities shall not be required to give the Partnership or any Partner notice with respect to such disclosure or access.

 

(j)                        Non-Voting Observers.

 

(i)                                     Each Partner, together with its Affiliates, that does not have the right to appoint a member of the Advisory Committee pursuant to Subsection 6.4(a), but holds a Percentage Interest of not less than five percent (5%) (which for the purposes of this determination shall include a pro rata portion of the Partnership Interest held by PTL GP

 

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based upon the Partner’s ownership interests in Holdings (if any), but with respect to PAG, shall exclude Partnership Interests held directly or indirectly by the other Penske Partners (other than its interest through PTL GP as described above) and only for so long as such Partner, together with its Affiliates, owns a Percentage Interest of not less than five percent (5%) (which for the purposes of this determination shall include a pro rata portion of the Partnership Interest held by PTL GP based upon the Partner’s ownership interests in Holdings (if any), but with respect to PAG, shall exclude Partnership Interests held directly or indirectly by the other Penske Partners (other than its interest through PTL GP as described above)), including as of the Effective Time, PAG, shall have the right to a non-voting observer (the “Non-Voting Observer”) at all duly called and convened meetings of the Advisory Committee (as provided for in Subsection 6.4(c). For the sake of clarity, as of the Effective Time, PAG has the right to a Non-Voting Observer. The Non-Voting Observer shall be entitled to receive all materials and information distributed to the members of the Advisory Committee (in such capacity) in connection with such duly called and convened meetings (including written consents in lieu of such meetings) and shall have access to the Partnership’s management and records as if the Non-Voting Observer were a member of the Advisory Committee, except that the General Partner may exclude any Non-Voting Observers from all applicable portions of any meeting of the Advisory Committee, or deny access to any information or portions thereof provided to members of the Advisory Committee, if the General Partner reasonably determines that the participation of the Non-Voting Observer, or access to the applicable information, could reasonably be expected to (1) result in a waiver of the attorney-client privilege (based on the advice of the Partnership’s counsel and, if applicable, taking into account the execution of a common interest agreement) with respect to any matters to be discussed or any matters included in the information to be distributed; (2) expose to any Non-Voting Observer (who represents or is affiliated with a competitor to the Partnership, a customer, supplier or other business partner of the Partnership or a competitor to the Partnership’s customers, suppliers or other business partners) (A) if a contract or understanding with any Person or Affiliate of such Person represented by the Non-Voting Observer is being described, discussed or voted upon, any information related to such contract or understanding and/or (B) the Partnership’s business operations, objectives, opportunities, competitive positioning and/or prospects related to any such Person or any matter in which such Person may be reasonably deemed to have an interest that is adverse to the Partnership; (3) cause the Partnership to violate obligations with respect to confidential or proprietary information of third parties, provided that a Non-Voting Observer shall not be so excluded unless all other Persons whose participation in such meeting of the Advisory Committee, or portions thereof, or receipt of such information, or portions thereof, would result in a violation of such third party obligations are also excluded; or (4) pose an actual or potential conflict of interest for the Partner designating the Non-Voting Observer, any of its Affiliates or the Non-Voting Observer. In addition, if a Non-Voting Observer designated by a Partner is an observer, employee, officer, director, partner, member, consultant or fiduciary at another company that competes with the Partnership or is primarily engaged in a business in a substantially related industry, a majority of the members of the Advisory Committee shall be permitted to exclude the Non-Voting Observer from any meeting of the Advisory Committee, or portions thereof, or deny access to any information provided to the members of the Advisory Committee, if such members reasonably determine, in a closed session, to exclude

 

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such Non-Voting Observer to protect the proprietary nature of the information included in the matters to be discussed and/or distributed.

 

(ii)                                   For the avoidance of doubt, any failures to comply with this Subsection 6.4(j) shall not affect in any way the validity of any actions taken by the Advisory Committee.

 

6.5                               Restrictions on the Authority of the General Partner.

 

(a)                     Notwithstanding any other provision of this Agreement, the General Partner shall not have authority to do any of the following:

 

(i)                                      any act in contravention of this Agreement;

 

(ii)                                   any act which would make it impossible to carry on the ordinary business of the Partnership, except as otherwise provided in this Agreement;

 

(iii)                                possess Partnership property, or assign any rights in specific Partnership property, for other than a Partnership purpose;

 

(iv)                               admit a Person as a Partner, except as otherwise provided in this Agreement;

 

(v)                                  except as permitted pursuant to Section 14.2, amend or waive any provision of this Agreement;

 

(vi)                               except as otherwise permitted by this Agreement, Transfer all or any portion of its interest as the General Partner of the Partnership;

 

(vii)                            knowingly commit any act which would subject any Limited Partner to liability as a general partner in any jurisdiction in which the Partnership transacts business, except to effect the conversion of the Partnership Interests pursuant to Subsection 1.1(c); or

 

(viii)                         elect to dissolve the Partnership, except as expressly permitted herein.

 

(b)                     [INTENTIONALLY OMITTED]

 

(c)                      Notwithstanding any other provision of this Agreement, other than Subsection 6.4(h), the General Partner shall not have authority to do any of the following without a Level One Approval of the Advisory Committee:

 

(i)                                      Enter into any credit agreement, indenture, debt security or debt instrument (or any amendment, restatement, supplement or other modification thereto or waiver thereof) that would or (at such time the agreement or other instrument, or amendment, restatement, supplement or other modification thereto or waiver thereof, is executed), reasonably would be expected to (A) restrict or prevent the exercise by the GE Partners or the

 

45

 

Mitsui Partners, including, in each case, any permitted successors or permitted assignees, of any rights, actions or transactions contemplated by Article 9 (without limiting the foregoing, any provision that would require the consent of creditors or their agents or representatives to such exercise in order to prevent acceleration or rapid amortization of indebtedness or would give creditors or their agents or representatives the right to accelerate or more rapidly amortize indebtedness in connection with such exercise being deemed to be expected to restrict or prevent such right, action or transaction) or (B) reduce distributions by the Partnership below those otherwise required by Subsections 5.1(a) and (b);

 

(i)                                     change the Partnership’s policies relating to requirements of environmental Laws, antitrust Laws, anti-corruption Laws, anti-bribery Laws, Laws relating to contracts with Governmental Authorities, insider trading or ethical business practices;

 

(ii)                                   materially change policies relating to accounting matters other than those required by GAAP;

 

(iii)                                change the character of the Partnership Group’s business from that set forth in clauses (i), (ii), (iii) and (iv) of Section 1.4 or cause the Partnership Group to engage in any activity other than as described therein;

 

(iv)                               increase or amend the compensation arrangements for the direct services of Roger S. Penske between the Partnership Group and Roger S. Penske or any entity that is an Affiliate of Roger S. Penske from those currently in effect;

 

(v)                                  (A) file a voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form, of the Partnership’s debts under Title 11 of the United States Code or any other federal or state insolvency Law, or file an answer consenting to or acquiescing in any such petition, (B) make any Transfer for the benefit of the Partnership’s creditors (other than the creation of Liens as contemplated by Section 6.5(d)(i)(C)), or (C) allow the expiration of sixty days after the filing of an involuntary petition under Title 11 of the United States Code, the application by a third party for the appointment of a receiver for the assets of the Partnership, or the filing of an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of the Partnership’s debts under any other federal or state insolvency Law, unless the same shall not have been vacated, set aside or stayed within such sixty-day period;

 

(vi)                               cause the Partnership Group to take any action or series of related actions, outside of the ordinary course of business consistent with the past practice of the Partnership Group since May 2012, that could reasonably be expected to result in the loss of any investment grade corporate, unsecured, long-term debt rating for the Partnership on a stand-alone basis; it being understood that (A) such actions shall not include distributions required by Subsections 5.1(a) and 5.1(b) and (B) changes in policies or ratings criteria of ratings agencies shall not be taken into account for this provision;

 

(vii)                            raise additional equity capital by means of a capital call or equity issuance (provided that any such capital call shall, in any case, precede such equity

 

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issuance), other than a capital call and equity issuance that may be approved pursuant to Subsection 6.5(f)(v);

 

(viii)                         amend or waive any provision of the Trade Name and Trademark Agreement, if such amendment or waiver is adverse in any respect to the Partnership; or

 

(ix)                               making donations by or in the name of the Partnership if the same involves amounts in excess of $3,000,000 for any single donation or series of related donations.

 

(d)                     Notwithstanding any other provision of this Agreement, but subject to Subsections 6.4(h) and 6.5(c), the General Partner shall not have authority to do any of the following without a Level Two Approval; provided, however, that if at any time (i) the GE Representative Partner and its Affiliates collectively own less than a fifteen percent (15%) Percentage Interest and the Mitsui Partners and their Affiliates, collectively, own at least a twenty percent (20%) Percentage Interest or (ii) the GE Representative Partner and its Affiliates collectively own less than a ten percent (10%) Percentage Interest and the Mitsui Partners and their Affiliates, collectively, own at least a ten percent (10%) Percentage Interest (each condition set forth in clauses (i) and (ii), a “Level Three Triggering Condition”), then each of the actions set forth in Subsections 6.5(d)(i) and 6.5(d)(iv) and, solely to the extent relating to periods after any continuing Level Four Triggering Condition or any continuing Level Three Triggering Condition (as applicable), 6.5(d)(iii), shall instead require a Level Three Approval; provided, further, that if at any time the GE Representative Partner and its Affiliates collectively own less than a ten percent (10%) Percentage Interest and the Mitsui Partners and their Affiliates, collectively, own less than a ten percent (10%) Percentage Interest (the “Level Four Triggering Condition”), then each of the actions set forth in Subsections 6.5(d)(i) and 6.5(d)(iv) and, solely to the extent relating to periods after any continuing Level Four Triggering Condition or any continuing Level Three Triggering Condition (as applicable), 6.5(d)(iii), shall instead require a Level Four Approval:

 

(i)                                      cause the Partnership Group to (A) incur indebtedness outside of the ordinary course of business, (B) incur indebtedness that is not pari passu in right of payment with the New Credit Agreement (or any replacement or successor revolving credit agreements pari passu in right of payment with the New Credit Agreement) or the senior notes of the Partnership and PTL Finance Corporation outstanding at the Effective Time or (C) grant any Liens with respect to any property of the Partnership Group other than: (I) such Liens granted in connection with the financing of the acquisition of vehicles (or, in the context of an acquisition by any member of the Partnership Group, existing Liens on real property so acquired) by the Partnership Group in the ordinary course of business, which Liens attach only to the vehicles (or, in the context of an acquisition by any member of the Partnership Group, existing Liens on real property so acquired) being acquired with the proceeds of the applicable financing, including any chattel paper, replacements, substitutes and proceeds thereof, as such terms are defined in Article 9 of the Uniform Commercial Code, or (II) Liens permitted by the New Credit Agreement (or any replacement or successor revolving credit agreements pari passu in right of payment with the New Credit Agreement);

 

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(ii)                                   enter into any credit agreement, indenture, debt security or debt instrument (or any amendment, restatement, supplement or other modification thereto or waiver thereof) that would or (at such time the agreement or other instrument, or amendment, restatement, supplement or other modification thereto or waiver thereof, is executed), reasonably would be expected to restrict or prevent the exercise by the GE Partners, including any permitted successors or permitted assignees, of any rights, actions or transactions contemplated by Article 10 (without limiting the foregoing, any provision that would require the consent of creditors or their agents or representatives to such exercise in order to prevent acceleration or rapid amortization of indebtedness or would give creditors or their agents or representatives the right to accelerate or more rapidly amortize indebtedness in connection with such exercise being deemed to be expected to restrict or prevent such right, action or transaction);

 

(iii)                                determine the accounting methods and conventions to be used in, or any other method or procedure related to, the preparation of the Returns (as defined in Subsection 8.2(d)), and make any and all elections under the tax Laws of any jurisdiction as to the treatment of items of income, gain, loss, deduction and credit of the Partnership or file a Form 8832 - Entity Classification Election or in any other manner make or change an election under U.S. Treasury Regulations Section 301.7701-3(c)(1) or successor regulations to have the Partnership taxed as anything other than as a partnership for federal tax purpose;

 

(iv)                               (A) (I) subject to Section 6.7(c) below, cause the Partnership Group to (a) make acquisitions during any Partnership Year of (i) any stock or other equity interest in any other entity (including by purchase, merger or consolidation) or (ii) any assets of any other Person (other than in respect of the acquisition of new vehicles, the sale-and-leaseback (or sale-and-rentback) of vehicles, or the acquisition of vehicles for the purpose of disposition by the Partnership within a reasonable period of time, in each case in the ordinary course of business of the Partnership) or (b) redeem or otherwise acquire or retire for value any of the equity interests of any Subsidiary of the Partnership held by Persons other than the Partnership or any of the Partnership’s wholly owned Subsidiaries (other than pro rata payments to all holders of the equity interests of any such Subsidiary) (clauses (a) and (b), collectively, “Acquisitions”) which collectively (in respect of all such Acquisitions) have an enterprise value (which for purposes of this Section 6.5(d)(iv) shall take into account any indebtedness for borrowed money of any acquired entity or related assets and any redemption payments) in excess of $250,000,000 (in the aggregate), or (II) cause the Partnership to incur capital expenditures (other than in respect of vehicles) in any Partnership Year, individually or in the aggregate, in excess of an amount equal to the sum of (a) $10,000,000 and (b) 15% of facilities and equipment, net (excluding vehicles) as of the end of the immediately preceding Partnership Year as set forth in the Partnership’s consolidated balance sheet for such immediately preceding Partnership Year;

 

(v)                                  so long as the GE Partners collectively hold at least a five percent (5.0%) Percentage Interest, and so long as a GE Partner or one of its Affiliates is subject to compliance with the Volcker Rule (as defined below), cause, permit or suffer the Partnership or any entity in the Partnership Group to: (1) take any action or series of related actions as a result of which such entity could reasonably be expected to be (A) an investment company within the meaning of the Investment Company Act, but for Section 3(c)(1) or

 

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3(c)(7) of such Act or (B) a commodity pool that meets the criteria set forth in 12 C.F.R. § 248.10(b)(ii); (2) acquire or retain an interest of any kind in a Pooled Vehicle, unless a GE Partner or an Affiliate of a GE Partner determines in good faith, following consultation with counsel, that such acquisition or retention is permitted under Section 13 of the Bank Holding Company Act of 1956 (the so called “Volcker Rule”) and the regulations and interpretations implementing the Volcker Rule; or (3) purchase or sell any financial instrument of any kind or character principally for the purpose of short term resale or benefitting from actual or expected short-term price movements, unless a GE Partner or an Affiliate of a GE Partner determines in good faith, following consultation with counsel, that such purchase or sale is permitted under the Volcker Rule and the regulations and interpretation implementing the Volcker Rule; and for the avoidance of doubt, nothing in this Section 6.5(d)(v) shall supersede or replace the requirement of any Level One Approval of the Advisory Committee pursuant to Section 6.5(c)(iv); or

 

(vi)                               so long as the GE Partners collectively hold at least a five percent (5.0%) Percentage Interest, cause, permit or suffer the Partnership or any entity in the Partnership Group to make any acquisition during any Partnership Year of any stock or other equity interest in any other entity (including by purchase, merger or consolidation) that would be subject to the prior notice requirements in 12 U.S.C. § 5363(b) (relating to prior Federal Reserve notice requirements in Section 163 of Dodd-Frank for the acquisition of ownership or control of any voting securities of a nonbank financial company with total consolidated assets of $10,000,000,000 or more).

 

(e)                      Notwithstanding any other provision of this Agreement, other than Subsections 6.4(h), 6.5(c) and 6.5(d), the General Partner shall not have authority to do any of the following without a Level Three Approval:

 

(i)                                      change the name of the Partnership or the name or names under which the Partnership conducts business; provided, however, that nothing in this Subsection 6.5(e)(i) shall be deemed to prevent the Partnership from ceasing to use the name “Penske” if and to the extent required by the Trade Name and Trademark Agreement;

 

(ii)                                   subject to Section 6.7(c) below, cause the Partnership Group to make any Acquisitions which collectively (in respect of all such Acquisitions) have an enterprise value in excess of $100,000,000 but not in excess of $250,000,000 (in the aggregate) during any Partnership Year;

 

(iii)                                hire or terminate or modify the compensation of the manager of the internal audit staff contemplated by Subsection 6.4(g) or adopt its budget; or

 

(iv)                               for the sake of clarity, to the extent provided in the first paragraph of Subsection 6.5(d), if the Level Three Triggering Condition has occurred and is continuing, any other action that would otherwise require a Level Two Approval.

 

(f)                       Notwithstanding any other provision of this Agreement, other than Subsections 6.4(h), 6.5(c), 6.5(d) and 6.5(e), the General Partner shall not have authority to do any of the following without a Level Four Approval:

 

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(i)                                      adopt the annual budget and business plan of the Partnership Group;

 

(ii)                                   materially change the Partnership’s policies relating to credit approval levels;

 

(iii)                                appoint the senior officers of the Partnership;

 

(iv)                               subject to Subsection 6.7(c) below, cause the Partnership Group to make any Acquisitions which collectively (in respect of all such Acquisitions) have an enterprise value in excess of $10,000,000 but not in excess of $100,000,000 (in the aggregate) during any Partnership Year;

 

(v)                                  raise equity capital solely through a capital call in accordance with Section 3.1 that satisfies the Capital Call Conditions (including any adjustment to the Percentage Interest of the Partners in connection therewith), and/or issue limited Partnership Interests to satisfy any Remaining Capital Call Deficiency in respect of such capital call;

 

(vi)                               declare or cause the Partnership to make any Discretionary Distributions to its Partners pursuant to Subsection 5.1(c); or declare or pay any dividend on or make any distribution on or purchase, redeem or otherwise acquire or retire for value any of the equity interests of any Subsidiary of the Partnership held by Persons other than the Partnership or any of the Partnership’s wholly owned Subsidiaries except for pro rata payments to all holders of the equity interests of any such Subsidiary; or

 

(vii)                            for the sake of clarity, to the extent provided in the first paragraph of Subsection 6.5(d), if the Level Four Triggering Condition has occurred and is continuing, any other action that would otherwise require a Level Two Approval.

 

6.6                               Other Activities.  (a) Any Partner (other than the General Partner in such capacity) (the “Interested Party”) may engage in or possess an interest in other business ventures of any nature or description, independently or with others, whether presently existing or hereafter created, and neither the Partnership nor any Partner (including the General Partner) other than the Interested Party shall have any rights in or to such independent ventures or the income or profits derived therefrom.

 

(b)                     Notwithstanding the foregoing, none of Penske Corporation, PTLC, PAG or any of their respective Affiliates shall, at any time that (i) the aggregate Percentage Interests that the Penske Partners own exceed five percent (5%), (ii) any Penske Partner has the right to designate one or more members of the Advisory Committee, (iii) a Penske Partner is the General Partner or (iv) so long as PTL GP is the General Partner, a Penske Partner is the Managing Member of Holdings, and for a period of two (2) years after none of the conditions set forth in the foregoing clauses (i), (ii), (iii) or (iv) applies, directly compete with the Partnership (as such phrase is defined in Subsection 6.6(d) below) or acquire or possess any ownership interest (other than investments of less than two percent (2%) of any class of outstanding securities of a corporation or other entity) in any other entity which directly competes with the Partnership.

 

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(c)                      (i)  Notwithstanding the foregoing, neither GECC nor any of its Subsidiaries shall, at any time that the aggregate Percentage Interests that the GE Partners own exceeds five percent (5%) and for a period of two (2) years after the later of (x) the date upon which the GE Partners cease to own in excess of such five percent (5%) and (y) the date on which none of the GE Partners has the right to designate a member of the Advisory Committee, directly compete with the Partnership (as such phrase is defined in Subsection 6.6(d) below).

 

(ii)                                   Notwithstanding the foregoing, neither Mitsui nor any of its Subsidiaries shall, at any time that the aggregate Percentage Interests that Mitsui and its Subsidiaries, collectively, own exceeds five percent (5%) and for a period of two (2) years after the later of (x) the date upon which Mitsui and its Subsidiaries, collectively, cease to own in excess of such five percent (5%) and (y) the date on which MBK CV no longer has the right to designate a member of the Advisory Committee, directly compete with the Partnership (as such phrase is defined in Subsection 6.6(d) below).

 

(d)                     As used in this Section 6.6, the phrase “directly compete(s) with the Partnership” shall mean the active conduct and operation of a business engaged in the renting and full-service leasing (but not any other types of Leasing) and servicing of tractors, trailers and/or trucks to third party users, or in acting as a dedicated contract motor carrier, in each case in the United States of America or Canada.  For the avoidance of doubt, and without implicitly agreeing that the following activities would be subject to the provisions of Subsections 6.6(b) or 6.6(c) above, (i) Penske Corporation, PTLC and/or PAG shall not be deemed to be in breach of Subsection 6.6(b), (ii) GECC shall not be deemed to be in breach of Subsection 6.6(c)(i), and (iii) Mitsui shall not be deemed to be in breach of Subsection 6.6(c)(ii), in each case, by virtue of any of Penske Corporation, PTLC, PAG or any of their respective Affiliates, GECC or any of its Subsidiaries, or Mitsui or any of its Subsidiaries, respectively, engaging in any of the following:

 

(A)                               contracting with, arranging for, or using any third party motor or other carriers, delivery services or logistics providers (whether for the benefit of Penske Corporation, PTLC, PAG or any of their respective Affiliates, GECC or any of its Subsidiaries, or Mitsui or any of its Subsidiaries, as applicable, or on behalf of any of the respective suppliers or customers of the foregoing Persons), in each case, in connection with the delivery of raw materials, inventory, or products that, in each case, are purchased, sold, financed or brokered, respectively, by Penske Corporation, PTLC, PAG or any of their respective Affiliates, GECC or any of its Subsidiaries, or Mitsui or any of its Subsidiaries or in respect of which such Person is acting as a freight forwarder;

 

(B)                               transportation of hydrocarbons, including crude oil, liquefied natural gas, liquefied petroleum gas, compressed natural gas and oil products;

 

(C)                               conducting or operating any business primarily servicing specific infrastructure projects in which Penske Corporation, PTLC, PAG or any of their respective Affiliates, GECC or any of its Subsidiaries, or Mitsui or any of its Subsidiaries, as applicable, has investments from time to time;

 

(D)                               Leasing heavy equipment for construction or other industrial use, including dump trucks, loader cranes and aerial work platform; and

 

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(E)                                Leasing railcars, providing transportation management and transportation route planning and other logistics services for transportation by railcars.

 

(e)                      [INTENTIONALLY OMITTED]

 

(f)                       Subsection 6.6(b) above shall cease to be applicable to any Person (other than the General Partner and its Subsidiaries) at such time as it is no longer an Affiliate of Penske Corporation and shall not apply to any Person (other than the General Partner and its Subsidiaries) that purchases assets, operations or a business from Penske Corporation or one of its Affiliates, if such Person is not an Affiliate of Penske Corporation after such transaction is consummated.

 

(g)                      Subsection 6.6(c) above shall cease to be applicable to (i) any Person at such time as it is no longer a Subsidiary of GECC and shall not apply to any Person that purchases assets, operations or a business from GECC or one of its Subsidiaries, if such Person is not a Subsidiary of GECC after such transaction is consummated and (ii) any Person at such time as it is no longer a Subsidiary of Mitsui and shall not apply to any Person that purchases assets, operations or a business from Mitsui or one of its Subsidiaries, if such Person is not a Subsidiary of Mitsui after such transaction is consummated.

 

(h)                     Notwithstanding the provisions of Subsections 6.6(b) and 6.6(c) above, and without implicitly agreeing that the following activities would be subject to the provisions of Subsections 6.6(b) or 6.6(c) above, nothing in Subsection 6.6(b) or 6.6(c) above shall preclude, prohibit or restrict a Person whose conduct is restricted under Subsection 6.6(b) or 6.6(c) above (each a “Restricted Person”) from engaging in any manner in any (i) Financial Services Business, (ii) Existing Business Activities, (iii) De Minimis Business or (iv) business activity that would otherwise violate Subsection 6.6(b) or 6.6(c) above, as applicable, that is acquired from any Person (an “After-Acquired Business”) or is carried on by any Person that is acquired by or combined with a Restricted Person in each case after the Effective Time (an “After-Acquired Company”); provided, that with respect to clauses (iii) and (iv), as applicable, so long as within 18 months (or such longer period agreed to by the General Partner, the GE Representative Partner and Mitsui) after the purchase or other acquisition of the After-Acquired Business or the After-Acquired Company or the loss by a Restricted Person of De Minimis Business status for its otherwise violative business activities if the restriction in Subsection 6.6(b) or (c) above with respect to the applicable Restricted Person has not terminated during such period, such Restricted Person, following the extension to the Partnership of the First Opportunity which does not result in an acquisition transaction with the Partnership, signs a definitive agreement to dispose, and subsequently disposes of the relevant portion of the business or securities of the After-Acquired Business or the After-Acquired Company or the otherwise violative business activity; or at the expiration of such 18-month period (or such longer period agreed to by the General Partner, the GE Representative Partner and Mitsui) the business of the After-Acquired Business or the After-Acquired Company or the otherwise violative business activity complies with Subsection 6.6(b) or Subsection 6.6(c) above, as applicable. With respect to clauses (iii) and (iv), as applicable, the applicable Restricted Person shall extend to the Partnership the first opportunity to potentially acquire the relevant portion of the business or securities of the Acquired Business or the Acquired Company or the otherwise violative business activity. The Restricted Person and the Partnership agree to enter into good faith discussions, for

 

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a period of ninety (90) days after the Restricted Person notifies the Partnership of the transaction opportunity in writing, regarding the Partnership’s potential acquisition of the relevant portion of the business or securities of the Acquired Business or the Acquired Company or the otherwise violative business activity (the “First Opportunity”); provided, that the Partnership shall notify the Restricted Person as soon as practicable if it is not interested in vigorously pursuing the opportunity, which notice shall terminate the First Opportunity; provided, further that nothing herein shall (A) require the Restricted Party to Sell to the Partnership, or require the Partnership to acquire from the Restricted Party, the relevant portion of the business or securities of the Acquired Business or the Acquired Company or the otherwise violative business activity; or (B) prohibit or restrict any discussions or negotiations at any time with third parties to acquire the relevant portion of the business or securities of the Acquired Business or the Acquired Company. At any time following the expiration or termination of the First Opportunity, the Restricted Party may enter into definitive agreements to Sell, or subsequently Sell, the relevant portion of the business or securities of the Acquired Business or the Acquired Company; provided, that, if the applicable Restricted Person is an Affiliate of Penske Corporation, the terms and conditions of the Partnership’s potential acquisition shall be presented to the Advisory Committee for discussion prior to the consummation of any Sale of the relevant portion of the business or securities of the Acquired Business or the Acquired Company.

 

(i)                         Notwithstanding anything to the contrary in this Agreement, any amendments, modifications or waivers to this Section 6.6 relating to activities of (x) Penske Corporation or any of its Affiliates, or GECC or any of its Subsidiaries or Mitsui or any of its Subsidiaries shall be approved in writing by the members of the Advisory Committee designated by the Partners holding a majority of the Partnership Interests not held by such parties seeking such amendment, modification or waiver to this Section 6.6, or (y) any Partner other than Penske Corporation or any of its Affiliates, GECC or any of its Subsidiaries, or Mitsui or any of its Subsidiaries shall be approved in writing by four (4) members of the Advisory Committee (including the GE Committee Member designated by the GE Representative Partner).

 

(j)                        Definitions:

 

(1)                                 “Capital Markets Activity” means any activity undertaken in connection with efforts by any Person to raise for or on behalf of any Person capital from any public or private source.

 

(2)                                 “Default Recovery/Remarketing Activities” means (i) the exercise of any rights or remedies in connection with any Capital Markets, Financing, Insurance, Leasing, Other Financial Services or Securities Activity (whether such rights or remedies arise under any agreement relating to such activity, under applicable Law or otherwise) including any foreclosure, realization or repossession or ownership of any collateral, business assets or other security for any Financing (including the equity in any entity or business), Insurance or Other Financial Services Activity or any property subject to Leasing or (ii) the remarketing (including any possession, ownership, Insurance, maintenance, transportation, shipment, storage, refurbishment, repair, sale, offer to sale, auction, consignment, liquidation, disposal, scrapping or other remarketing activities) of any collateral, business assets or other security for any Financing (including the equity in any entity or business), Insurance or Other Financial Services Activity or any property subject to Leasing.

 

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(3)                                 “De Minimis Business” means (a) any business activity that would otherwise violate Subsection 6.6(b) or Subsection 6.6(c) above that is carried on by an After-Acquired Business or an After-Acquired Company, but only if, at the time of such acquisition or thereafter at the end of each Partnership Year following such acquisition, the operating revenues (excluding non-operating revenues) derived from business that directly competes with the Partnership (as such phrase is defined in Subsection 6.6(d) above) by such After-Acquired Business or After-Acquired Company constitute less than $100,000,000 for the most recently completed fiscal year preceding such acquisition or at the end of any Partnership Year following such acquisition, or (b) any business activity conducted by Penske Corporation or any of its Affiliates, or GECC or any of its Subsidiaries, or Mitsui or any of its Subsidiaries that constitutes Business Activities Ancillary to its principal businesses.

 

(4)                                 “Existing Business Activities” means, with respect to Penske Corporation or any of its Affiliates, any business conducted or investment held by Penske Corporation or any of its Affiliates on the date of this Agreement; and means, with respect to GECC or any of its Subsidiaries any business conducted or investment held by GECC or any of its Subsidiaries on the date of this Agreement; and means, with respect to Mitsui or any of its Subsidiaries, any business conducted or investment held by Mitsui or any of its Subsidiaries on the date of this Agreement, or, in each case, contemplated by any existing contractual arrangements applicable to Penske Corporation or any of its Affiliates, GECC or any of its Subsidiaries or Mitsui or any of its Subsidiaries, as the case may be, on the date of this Agreement. It is acknowledged and agreed that neither the business operations conducted as of the date hereof by GE Capital Fleet Services or the commercial equipment finance businesses of GE Capital, nor any reasonable expansions of such business operations or extensions of such business operations (including by acquisition) which are reasonably and directly related to the businesses and operations of GE Capital Fleet Services or the commercial equipment finance businesses of GE Capital conducted as of the date hereof shall be deemed to directly compete with the Partnership for purposes of this Section 6.6.  In addition, it is acknowledged and agreed that the business operations conducted as of the date hereof by the North American logistics business of Mitsui (as conducted by the Transfreight Group Companies) shall not be deemed to directly compete with the Partnership for purposes of this Section 6.6 unless and until the occurrence of the closing of the definitive agreement for the acquisition by PTL of such business. It is acknowledged and agreed that the following business operations and expansions shall not be deemed to directly compete with the Partnership for purposes of this Section 6.6 (x) the business operations conducted as of the date hereof by Mitsui Bussan Logistics Inc. or its Subsidiaries, and/or any reasonable expansions of such business operations or extensions of such business (including by acquisition) which are reasonably and directly related to the business and operations of Mitsui Bussan Logistics Inc. or its Subsidiaries conducted as of the date hereof and (y) the business operations conducted as of the date hereof by TRI-NET(JAPAN)INC. or its Subsidiaries, and/or any reasonable expansions of such business operations or extensions of such business (including by acquisition) which are reasonably and directly related to the business and operations of TRI-NET(JAPAN)INC. or its Subsidiaries conducted as of the date hereof.

 

(5)                                 “Financial Services Business” means any activities undertaken principally in connection with or in furtherance of (i) any Capital Markets Activity, (ii) Financing, (iii) Leasing (other than Leasing activities that would constitute directly competing with the Partnership, as defined in Subsection 6.6(d) above), (iv) Default

 

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Recovery/Remarketing Activities, (v) Other Financial Services Activities, (vi) any Securities Activity or (vii) the sale of Insurance, the conduct of any Insurance brokerage activities or services or the provision of Insurance advisory services, business processes or software. Financial Services Business also includes any investment or ownership interest in a Person through an employee benefit or pension plan.

 

(6)                                 “Financing” means the making, entering into, purchase of, or participation in (including syndication or servicing activities) (i) secured or unsecured loans, conditional sales agreements, debt instruments or transactions of a similar nature or for similar purposes and (ii) non-voting preferred equity investments.

 

(7)                                 “Insurance” means any product or service determined to constitute insurance, assurance or reinsurance by the Laws in effect in any jurisdiction in which the restriction set forth in Subsection 6.6(b) or 6.6(c) above applies.

 

(8)                                 “Leasing” means the rental, leasing, or financing, in each case under operating leases, finance leases, capital leases, synthetic leases, leveraged leases, tax-oriented leases, non-tax-oriented leases, retail installment sales contracts, hire purchase or rental agreements, of property, whether real, personal, tangible or intangible.

 

(9)                                 “Other Financial Services Activities” means the offering, sale, distribution or provision, directly or through any distribution system or channel, of any financial products, financial services, asset management services, including investments on behalf of Penske Corporation or any of its Affiliates, GECC or any of its Subsidiaries or Mitsui or any of its Subsidiaries purely for financial investment purposes, investments for the benefit of third party and client accounts, credit card products or services, vendor financing and trade payables services, back-office billing, processing, collection and administrative services or products or services related or ancillary to any of the foregoing.

 

(10)                          “Securities Activity” means any activity, function or service (without regard to where such activity function or service actually occurs) which, if undertaken or performed (i) in the United States would be subject to the United States federal securities Laws or the securities Laws of any state of the United States or (ii) outside of the United States within any other jurisdiction in which the restrictions set forth in Subsection 6.6(b) or Subsection 6.6(c) above apply, would be subject to any Law in any such jurisdiction governing, regulating or pertaining to the sale, distribution or underwriting of securities or the provision of investment management, financial advisory or similar services.

 

6.7                               Transactions with Affiliates.

 

(a)                     Subject to Subsection 6.7(c), nothing in this Agreement shall preclude transactions between the Partnership and any Partner (including the General Partner) or an Affiliate or Affiliates of any Partner acting in and for its own account, provided that any services performed or products provided by or assets or properties sold by or to the Partner or any such Affiliates are services, products, assets and/or properties that the General Partner reasonably believes, at the time of requesting such services, products, assets and/or properties to be in the best interests of the Partnership, and further provided that the rate of compensation to be paid for

 

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any such services, products, assets and/or properties shall be comparable to the amount paid for similar services, products, assets and/or properties under similar circumstances to independent third parties in arm’s length transactions, and further provided that the members of the Advisory Committee will receive a written notice within thirty days of the date on which any such transaction is entered setting forth the material terms of any transaction or series of related transactions described above for which the aggregate amount involved in such transaction or series of transactions, which includes the U.S. dollar value of the amounts involved throughout the duration of any agreements entered into with respect to such transaction(s), is greater than $15,000,000.

 

(b)                     All bills with respect to services provided to the Partnership by a Partner or any Affiliate of a Partner shall be separately submitted and shall be supported by logs or other written data.

 

(c)                      Notwithstanding any of the foregoing provisions of this Section 6.7, the General Partner shall not have the authority to enter into any commitment or agreement regarding, or to consummate, any Affiliate Acquisition or series of related Affiliate Acquisitions in respect of which the target assets, business(es) or company(ies) have an aggregate enterprise value (for the avoidance of doubt, taking into account any direct or indirect indebtedness for borrowed money of any acquired entity or any related assets, including any such indebtedness assumed or prepaid) in excess of $15,000,000 without the approval of each Penske Committee Member and each member of the Advisory Committee that is not appointed by the Partner or Partners that are proposing to engage (or whose Affiliate or Affiliates are proposing to engage) in any such Affiliate Acquisition with the Partnership (or, in the absence of any such disinterested members of the Advisory Committee, all members of the Advisory Committee).

 

6.8                               Mitsui Participation Rights.

 

(a)                     MBK CV (so long as the Mitsui Partners own, collectively, at least a ten percent (10%) Percentage Interest) shall have the right to appoint a senior level management position selected by MBK CV and deemed as adequate by the General Partner directly reporting to the Chief Executive Officer of the Partnership (the “Mitsui Partner Designee”).

 

(b)                     MBK CV (so long as the Mitsui Partners own, collectively, at least a ten (10%) Percentage Interest) shall have the right to send annually a person selected by MBK CV to be a trainee at the Partnership (the “Mitsui Trainee”).  The Mitsui Trainee shall be assigned from time to time, at the reasonable discretion of the General Partner, to various business units within the Partnership for the purpose of gaining a deep understanding of the Partnership’s business practices and expanding his or her skills and knowledge with respect to the truck leasing, rental and logistics industries so that the Mitsui Trainee may assist the Mitsui Partners in identifying new opportunities to add value to the Partnership.

 

6.9                               Exculpation.

 

Neither the General Partner (including for purposes of this Section 6.8 any Person formerly serving as the General Partner) nor any of its Affiliates nor any of their respective holders of partnership interests, shareholders, officers, directors, employees or agents shall be

 

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liable, in damages or otherwise, to the Partnership or to any of the Limited Partners for any act or omission on its or his or her part, except for (i) any act or omission resulting from its or his or her own willful misconduct or bad faith, (ii) with respect to the General Partner only, any breach by the General Partner of its obligations as a fiduciary of the Partnership or (iii) with respect to the General Partner only, any breach by the General Partner of any of the terms and provisions of this Agreement. The Partnership shall indemnify, defend and hold harmless, to the fullest extent permitted by Law, the General Partner or any of its Affiliates or any of their respective holders of partnership interests, members, shareholders, officers, directors, employees and agents, from and against any claim or liability of any nature whatsoever arising out of or in connection with the assets or business of the Partnership, except where attributable to the willful misconduct or bad faith of such individual or entity or where relating to a breach by the General Partner of its obligations as a fiduciary of the Partnership or to a breach by the General Partner of any of the terms and provisions of this Agreement.

 

ARTICLE 7

 

COMPENSATION

 

The General Partner shall be entitled to reimbursement of all of its expenses attributable to the performance of its obligations hereunder, as provided in Article 4 hereof, to the extent permitted by Section 6.7. Subject to the Act, no amount so paid to the General Partner shall be deemed to be a distribution of Partnership assets for purposes of this Agreement.

 

ARTICLE 8

 

ACCOUNTS

 

8.1                               Books and Records.  The General Partner shall maintain complete and accurate books of account of the Partnership’s affairs at the Partnership’s principal office, including a list of the names and addresses of all Partners. Each Partner shall have the right to inspect the Partnership’s books and records (including the list of the names and addresses of Partners). Each of the Partners shall have the right to audit independently the books and records of the Partnership, any such audit being at the sole cost and expense of the Partner conducting such audit.

 

8.2                               Reports, Returns and Audits.

 

(a)                     The books of account shall be closed promptly after the end of each Partnership Year. The books and records of the Partnership shall be audited as of the end of each Partnership Year by the Auditor. Within ninety (90) days after the end of each Partnership Year, the General Partner shall make a written report to each person who was a Partner at any time during such Partnership Year which shall include financial statements comprised of at least the following: a balance sheet as of the close of the preceding Partnership Year, and statements of earnings or losses, changes in financial position and changes in Partners’ capital accounts for the Partnership Year then ended, which financial statements shall be certified by the Auditor as in accordance with Generally Accepted Accounting Principles. The report shall also contain such additional statements with respect to the status of the Partnership business as are considered

 

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necessary by any member of the Advisory Committee to advise any or all Partners properly about their investment in the Partnership. As soon as practicable after the end of each quarter in each Partnership Year, the Partnership shall deliver to PTLC, the GE Representative Partner, PAG and, so long as the Mitsui Partners, collectively, hold not less than a ten percent (10%) Percentage Interest, MBK CV, a written report which shall include forecasts for the current quarter, including forecast changes in debt balance of the Partnership.

 

(b)                     Prior to August 15 of each year, each Partner shall be provided with an information letter (containing such Partner’s Form K-1 or comparable information) with respect to its distributive share of income, gains, deductions, losses and credits for income tax reporting purposes for the previous Partnership Year, together with any other information concerning the Partnership necessary for the preparation of a Partner’s income tax return(s), and the Partnership shall provide each Partner with an estimate of the information to be set forth in such information letter by no later than April 15 of each year. With the sole exception of mathematical errors in computation, the financial statements and the information contained in such information letter shall be deemed conclusive and binding upon such Partner unless written objection shall be lodged with the General Partner within ninety (90) days after the giving of such information letter to such Partner.

 

(c)                      The Partnership shall also furnish the Partners with such periodic reports concerning the Partnership’s business and activities as are considered necessary by any member of the Advisory Committee or PAG to advise any or all Partners properly about their investment in the Partnership.

 

(d)                     The General Partner shall, in accordance with the advice of the Advisory Committee, prepare or cause to be prepared all federal, state and local tax returns of the Partnership (the “Returns”) for each year for which such Returns are required to be filed, and shall cause all such Returns to be filed in a timely manner; provided however that it shall not file any Return without first providing the GE Representative Partner and, so long as the Mitsui Partners, collectively, hold not less than a ten percent (10%) Percentage Interest, MBK CV, with a reasonable opportunity to review the Return and without first obtaining the consent of the GE Representative Partner to such filing, which consent shall not be unreasonably withheld or delayed.  To the extent permitted by Law, for purposes of preparing the Returns, the Partnership shall use the Partnership Year. Subject to Subsection 6.5(d)(iii), the General Partner may make any elections under the Code and/or applicable state or local tax Laws, and the General Partner shall be absolved from all liability for any and all consequences to any previously admitted or subsequently admitted Partners resulting from its making or failing to make any such election. Notwithstanding the foregoing, the General Partner shall make the election provided for in Section 754 of the Code with respect to the Partnership and any Partnership Subsidiary that is a partnership for federal tax purposes, if requested to do so by any Partner, without the need of approval of the Advisory Committee.  Any allocation required under Section 755 of the code as a result of a Section 754 election shall be made by the General Partner acting in good faith; provided, that any such allocation relating to or with respect the Partnership Interests transferred by the GE Partners to the Mitsui Partners shall be approved by the Mitsui Partners, such approval not to be unreasonably withheld or delayed.

 

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(e)                      The General Partner shall be the “tax matters partner” of the Partnership within the meaning of Section 6231(a)(7) of the Code (the “Tax Matters Partner”) and shall serve in any similar capacity under applicable Law. In any case in which more than one Partner is eligible under Regulations Section 301.6231(a)(7)-1(c), by reason of having been or being the General Partner, to be designated as the Tax Matters Partner for a given taxable year (each such Partner a “TMP Eligible Partner”), the Tax Matters Partner designated for such year shall be selected by unanimous agreement among all such TMP Eligible Partners for such year. In the absence of unanimous agreement, the TMP Eligible Partner that was the General Partner on the last day of such taxable year shall be designated as the Tax Matters Partner for such taxable year. The GE Representative Partner and so long as the Mitsui Partners hold, collectively, not less than a ten percent (10%) Percentage Interest, Mitsui and MBK CV (or, if MBK CV ceases to own any Partnership Interest, MBK USA CV), shall each be given at least fifteen (15) Business Days advance notice from the Tax Matters Partner of the time and place of, and the GE Representative Partner shall have the right to participate in, and MBK CV (or MBK USA CV, as applicable) shall have the right to review (but not participate in), (i) any administrative proceeding relating to the determination at the Partnership level of partnership items on which the Partners, rather than the Partnership, are taxable and (ii) any discussions with the Internal Revenue Service (or other governmental tax authority) relating to the allocations pursuant to Article 5 of this Agreement or the Corresponding Provision of any Prior Agreement.  The Tax Matters Partner shall not initiate any action or proceeding in any court in its capacity as Tax Matters Partner, extend any statute of limitation, or take any other action contemplated by Sections 6222 through 6232 of the Code (or similar state, local or foreign Laws with respect to income or income-based taxes that apply to the Partners rather than the Partnership) if such initiation, extension or other action would legally bind any other Partner or the Partnership without (x) the approval of the GE Representative Partner which approval will not be unreasonably withheld or untimely delayed and (y) so long as the Mitsui Partners hold, collectively, not less than a ten percent (10%) Percentage Interest, the review of MBK CV (or, if MBK CV ceases to own any Partnership Interest, MBK USA CV). The Tax Matters Partner shall from time to time upon request of any other Partner confer, and cause the Partnership’s tax attorneys and accountants to confer, with such other Partner and its attorneys and accountants on any matters relating to a Partnership tax return or any tax election.

 

(f)                       The Partnership shall provide such other information as may be reasonably required for the Partners or their Affiliates to timely comply with applicable financial reporting requirements or their customary financial reporting practices and the Partnership shall continue to provide substantially the same accounting assistance to the Partners or their Affiliates as the Partnership provided to them for the 2014 Partnership Year including preparing quarterly accounting closing schedules at the end of each quarter of the Partnership Year. Additionally, the Partnership shall provide such other information as may be requested in good faith by the GE Partners or their Affiliates to establish or confirm ongoing compliance with their applicable financial regulatory requirements, including any such requirements that may be applicable to the Partnership itself or any other entity in the Partnership Group by reason of its relationship with any Partner.  If any GE Partner or any Affiliate of any GE Partner determines in good faith, following consultation with counsel, that compliance with its applicable financial regulatory requirements under Section 13 of the Bank Holding Company Act of 1956, as amended, requires that the Partnership implement a particular compliance program, the Partnership shall take reasonable steps to do so, cooperating in good faith with the GE Partner. If any GE Partner requests information pursuant to the second sentence of this Subsection 8.2(f) and (i) the

 

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preparation or compilation of such information, including the format thereof, is outside the ordinary course of the Partnership’s business and (ii) the out-of-pocket cost of the preparation and delivery of such information, or a resultant change of format for the delivery thereof, exceeds $1,000,000 in any calendar year, then the GE Partners will be responsible to pay to the Partnership all such out-of-pocket costs associated with the preparation, compilation and delivery of such information to the extent in excess of $1,000,000 for such calendar year.

 

8.3                               Review Rights.  Without limiting the provisions of Section 6.5(f)(i) above, not less than twenty-one days prior to the presentation of the annual budget and business plan of the Partnership Group to the Advisory Committee, the General Partner shall provide a draft thereof to each of the GE Representative Partner and MBK CV.  During the twenty-one day period prior to the presentation of the annual budget and business plan of the Partnership Group to the Advisory Committee, each of the GE Representative Partner and MBK CV may review with the General Partner such annual budget and business plan, and may propose for consideration any recommendations thereto (which may or may not be accepted in the sole discretion of the General Partner).  In addition to the foregoing, the members of the Advisory Committee designated by the GE Representative Partner and by MBK CV may make any comments to, raise any questions or make any recommendations to the annual budget and business plan of the Partnership Group presented to the Advisory Committee at any meeting of the Advisory Committee.

 

ARTICLE 9

 

TRANSFERS AND SALES

 

9.1                               Transfer of Interests of General Partner and PTLC Consolidated Group.  Notwithstanding anything to the contrary contained in this Article 9 or any other provision of this Agreement:

 

(a)                     The General Partner shall not withdraw from the Partnership or resign as General Partner or Transfer all or any portion of its general partner Partnership Interest, except in each case (i) as provided in Subsection 1.1(c), (ii) as a consequence of a Sale mandated by Subsection 9.4(a) or (iii) with the prior written approval of the Majority Limited Partners, the GE Representative Partner and MBK CV.

 

(b)                     The General Partner shall be liable to the Partnership for any Event of Withdrawal in violation of Subsection 9.1(a) above.

 

(c)                      PTL GP may not Sell all or any portion of its Partnership Interest, except in accordance with the Holdings LLC Agreement.

 

(d)                     For so long as members of the GECC Consolidated Group hold in the aggregate not less than a ten percent (10%) Percentage Interest and for two (2) years after that is no longer the case, the PTLC Consolidated Group shall be required at all times to hold not less than a twenty-five percent (25%) Percentage Interest, except as a consequence of a Sale mandated by Subsection 9.4(a).

 

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(e)                      Any voluntary or involuntary sale, assignment, transfer or other disposition of, or any creation of a lien on, any of the equity interests in Holdings or PTL GP shall be deemed to be, and shall be treated as, a Transfer of Partnership Interests for all purposes of this Agreement; provided that any Liens granted under the PAG Security Agreement or the PTLC Security Agreement are authorized, and the granting of Liens on the equity interests, of Holdings or PTL GP (but not a Foreclosure or other exercise of remedies in respect of such Liens), that are permissible under the PAG Security Agreement or the PTLC Security Agreement, are permitted hereunder; and provided, further, that Sections 9.1 (except for this further proviso), 9.2 and 9.3 will not apply to any Sale of Collateral (as defined in the PAG Security Agreement or the PTLC Security Agreement) as authorized by such agreements or to any Third Party Sale or Equity Offering as defined in and contemplated by Article 10 of the Holdings LLC Agreement.

 

9.2                               Transfer or Sale of Limited Partner Interests.

 

(a)                     Except (i) as permitted by the further provisions of this Section 9.2, (ii) as permitted by Section 9.3, (iii) as required by Section 9.4, (iv) in accordance with Article 10 or (v) in accordance with Sections 10.2 and 10.3 of the Holdings LLC Agreement, at all times subject to Section 9.1, commencing as of the Effective Time, no Limited Partner may Transfer all or any portion of its limited partner Partnership Interest to any Person.

 

(b)                     (i) Each of GE Truck Leasing Holdco, GE Logistics Holdco and GE Tennessee may Sell all or any portion of its Partnership Interests from time to time to any member or members of the GECC Consolidated Group, (ii) PTLC may Sell all or any portion of its limited partner Partnership Interests from time to time to any member or members of the PAG Consolidated Group or to any member or members of the PTLC Consolidated Group and (iii) the Mitsui Partners may Sell all or any portion of their limited respective Partnership Interests from time to time to any member or members of the Mitsui Consolidated Group.

 

(c)                      PAG may Sell all or any portion of its Partnership Interests from time to time to any member or members of the PTLC Consolidated Group or any member or members of the PAG Consolidated Group.

 

(d)                     In the event of any Sale pursuant to Subsection 9.2(b) or 9.2(c), if the assignee in such Sale shall cease at any time for any reason (other than as a result of a change in Generally Accepted Accounting Principles after the Effective Time) to be a member of the GECC Consolidated Group, the PTLC Consolidated Group, the PAG Consolidated Group or the Mitsui Consolidated Group, as the case may be, then such assignee shall concurrently with ceasing to be a member of the applicable Consolidated Group Sell such Partnership Interests to a Person that is a member of the applicable Consolidated Group.

 

(e)                      Prior to and as a condition to any Sale pursuant to Subsection 9.2(b) or 9.2(c) the assignee shall agree in writing with the Partnership to be bound by all of the terms and conditions of this Agreement in the same manner as the assignor.

 

(f)                       PAG may, in connection with a bona fide financing from one or more third-party lenders (such lenders, or an agent or a representative therefor (a “Bona Fide

 

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Lender”)), grant a security interest in, or otherwise pledge (the “PAG Pledge”), to a Bona Fide Lender, PAG’s share in the profits and losses of the Partnership and PAG’s right to receive distributions of the Partnership solely with respect to all or any portion of its Percentage Interest as of the Effective Time in the Partnership, as such percentage has been or may be increased other than by virtue of a Transfer to PAG or any of its Subsidiaries of any additional Partnership Interest, unless the GE Representative Partner and PTLC agree otherwise (such portion of the limited partner Partnership Interests owned by PAG and so secured or pledged being referred to herein as the “PAG Pledged Interest”) but, for the avoidance of doubt, (x) shall not include any indirect interest held by PAG in or through Holdings or PTL GP and (y) notwithstanding anything else herein, PAG’s rights pursuant to this Subsection 9.2(f) shall not be Transferable to any assignee or otherwise, unless the GE Representative Partner and PTLC agree otherwise, it being understood and agreed that (i) prior to or upon any foreclosure or similar exercise of rights of the Bona Fide Lender pursuant to the terms of its security interest (a “Foreclosure”) the Bona Fide Lender (or any transferee of the PAG Pledged Interest following any Foreclosure) shall only be entitled to receive distributions of cash or other property from the Partnership in accordance with the terms of this Agreement (and after a Foreclosure only to receive allocations of the income, gains, credits, deductions, profits and losses of the Partnership attributable to such PAG Pledged Interest after the effective date of such Foreclosure in accordance with the terms of this Agreement) and shall not at any time become a Partner (and shall not have any rights with respect to governance, voting, approvals, consents, observation or other management rights with respect to the Partnership, all of which shall remain with PAG) and (ii) upon a Foreclosure, PAG’s rights with respect to governance, observation or other management rights with respect to the Partnership shall lapse and any and all voting, approval and consent rights of PAG attributable to the PAG Pledged Interest foreclosed upon shall be deemed made in proportion to the other Partners.

 

(g)                      The Mitsui Partners may, in connection with the Mitsui Co-Obligation Fee, Payment and Security Agreement entered into by the Mitsui Partners as of the date hereof (the “Mitsui Co-Obligation Fee, Payment and Security Agreement”), grant a security interest in, or otherwise pledge (the “Mitsui Pledge”) to GECC or any Affiliate thereof, the Mitsui Partners’ share in the profits and losses of the Partnership and the Mitsui Partners’ rights to receive distributions of the Partnership solely with respect to all or any portion of their limited partner Partnership Interests that are pledged pursuant to the terms of the Mitsui Co-Obligation Fee, Payment and Security Agreement as of the Effective Time (such portion of the limited partner Partnership Interests owned by the Mitsui Partners and so secured or pledged being referred to herein as the “Mitsui Pledged Interest”). Notwithstanding anything else herein, none of Sections 9.1, 9.2 (except this sentence) or 9.3 shall apply to any Sale of the Mitsui Pledged Interest as authorized by the Mitsui Co-Obligation Fee, Payment and Security Agreement.

 

9.3                               Right of First Offer.

 

(a)                     No Partner shall Transfer all or any portion of such Partner’s Partnership Interest except (i) as permitted by Section 9.2, (ii) as further permitted in this Section 9.3, (iii) as required by Section 9.4, (iv) in accordance with Article 10 or (v) in accordance with Sections 10.2 and 10.3 of the Holdings LLC Agreement, at all times subject to Section 9.1, or, for avoidance of doubt, Subsection 1.1(c).

 

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(b)                     For purposes of this Section 9.3, members of the GECC Consolidated Group, members of the PTLC Consolidated Group, members of the PAG Consolidated Group and members of the Mitsui Consolidated Group shall each be deemed a single Partner.

 

(c)                      No Partner may Sell all or any portion of its Partnership Interest, unless (i) such portion of its Partnership Interest constitutes a Percentage Interest of at least five percent (5%) unless such Partner is selling all of its then-held Partnership Interests, taken as a whole, immediately prior to the consummation of such Sale and (ii) the consideration for such Sale consists solely of cash and/or a promissory note; provided, however, that if a promissory note shall form a portion of the consideration being offered by a third-party offeror, such note must (A) be issued by the party which proposes to acquire the Partnership Interest, (B) bear an interest rate not less than the then-current market rate for a note of such creditworthiness, terms and conditions and tenor and (iii) not represent more than fifty percent (50%) of the total amount of the consideration being offered for such Partnership Interest. In the event that (I) a Partner (other than (i) PTL GP or (ii) PTLC, in each case with respect to its general partner interest), proposes to Sell all or any portion of its Partnership Interest (an “Initiated Offer”), or (II) a Partner shall have received an offer from a third party to acquire such Partner’s Partnership Interest (or such portion thereof) that the Partner proposes to accept (a “Third-Party Proposed Sale”), then in either such event such Partner (the “Offering Partner”) shall first offer (the “Offer”) in writing (which Offer shall set forth the price and all other material terms of such proposed Sale, and, in the case of a Third-Party Proposed Sale, have attached to it a copy of such third party’s written offer to purchase) to sell its Partnership Interest (or such portion thereof) (individually or collectively, the “Offered Interest”) to the other Partners other than PTL GP (the “Offeree Partners”) at the price and on the other financial terms specified in the Offer and on substantially the same terms (other than price and the other financial terms) as are set forth in the Purchase and Sale Agreement dated as of March 26, 2009 pursuant to which PTLC Holdings Co., LLC purchased a Partnership Interest from GE Logistics Holdco. A copy of such Offer shall also be provided to the General Partner at the same time as it is provided to the other Partners.

 

(d)                     Within sixty (60) days (or such longer period as the Offering Partner and the Offeree Partners may agree) after the date of the Offer each Offeree Partner must provide notice to the Offering Partner and the General Partner (the “Response Notice”) that such Offeree Partner either (1) agrees to purchase its proportion, based on its Percentage Interests relative to the aggregate Percentage Interests held by all Offeree Partners (taking into account the interests held indirectly through PTL GP), of the Offered Interest at the offering price and on the other terms set forth in the Offer or at such other price and on such other terms as the Partners may agree or (2) declines to accept the Offer; provided that, if the Offering Partner is also proposing to Sell Member Interests concurrently to the same purchaser or affiliated group of purchasers, each Offeree Partner must either (x) agree to purchase its proportion of Member Interests and Partnership Interests, collectively, based on its Percentage Interest relative to the aggregate Percentage Interests held by all Offeree Partners for Partnership Interests as of the date of the Offer (taking into account the interests held indirectly through PTL GP), or (y) decline to accept the Offer for the offered Partnership Interests and Member Interests collectively, and the terms “Offer” and “Offered Interest” shall be deemed to include such offered Partnership Interests and Member Interests collectively.

 

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(e)                      If the Response Notices of the Offeree Partners constitute an acceptance, collectively, for the entire Offered Interest, the parties will consummate the Sale of the Offered Interest at the time and in the manner set forth in Subsection 9.3(g) and 9.5(a). Unless otherwise agreed by the accepting Offeree Partners (the “Accepting Partners”), the right to purchase the Offered Interest will be allocated among the Offeree Partners pro rata based on the relative Percentage Interests held by all Offeree Partners for Partnership Interests as of the date of the Offer. If the Response Notices of the Offeree Partners do not constitute an acceptance, collectively, for the entire Offered Interest, then at the end of the sixty (60) day period (as it may be extended pursuant to Subsection 9.3(d) above) (or, if earlier, when all Response Notices have been received) set forth in Subsection 9.3(d), the Offering Partner shall provide written notice to the Accepting Partners pursuant to which the Accepting Partners shall have the option to elect to purchase, for a period of thirty (30) days following the date of such notice, all (but not less than all) of the portion of the Offered Interest that the non-Accepting Partners did not elect to purchase, in proportion to the relative Percentage Interests (disregarding the Percentage Interests of the non-Accepting Partners) of such Accepting Partners (or on such other basis as the Accepting Partners determine) and on substantially the same terms and conditions described in Subsection 9.3(c).

 

(f)                       If (i) none of the Offeree Partners delivers a Response Notice (or the Offeree Partners otherwise decline to purchase all of the Offered Interest) within the sixty (60) day period (as it may be extended pursuant to Subsection 9.3(d) above) set forth in Subsection 9.3(d) or (ii) after the end of the thirty (30) day period set forth in Subsection 9.3(e), the Accepting Partners have not elected to purchase all of the Offered Interest, then in each case the Offeree Partners will be deemed to have declined to exercise their rights under this Section 9.3 and the Offering Partner shall, with respect to the Offered Interest only, have the right, if an Initiated Offer, to, at the Offering Partner’s sole expense, not violative of Law or Section 9.5(b), launch a confidential marketing process (which may include the engagement of financial advisors and other advisors to conduct a customary auction sale process in which potential buyers are required to enter into confidentiality agreements contemplated by clause (e) of Section 6.4(i)), and, if an Initiated Offer or a Third Party Proposed Sale, enter into negotiations with a third party or enter into a definitive agreement, to Sell the Offered Interest in respect of an Offer at the same or a higher price and upon terms and conditions that are no less favorable in the aggregate to the Offering Partner than as set forth in the Offer (other than those representations, warranties, covenants, indemnities and other agreements customary for similar transactions) for a period of one-hundred eighty (180) days, which period may be extended as agreed upon by the Offering Partner and the Offeree Partners.

 

(g)                      If an Offeree Partner or Partners shall have accepted the Offer in accordance with Subsections 9.3(d) and (e), then the Offering Partner shall Sell the Offered Interest to the Accepting Partners (or to such nominees of the Accepting Partners as the Accepting Partners may specify in writing to the Offering Partner not less than three (3) Business Days prior to the closing of such purchase and Sale) and the Sale of the Offered Interest to the Accepting Partners (or such nominees, as the case may be) shall be consummated within ninety (90) days thereafter, which period shall if all other conditions to closing have been satisfied except for required regulatory approvals (and those conditions that by their terms are to be satisfied at closing), be extended, unless the Offering Partner and the Accepting Partners otherwise agree in writing, for as long as reasonably necessary in order to obtain such regulatory

 

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approvals (until such time as it is determined that such approvals will not be obtained), at the principal office of the Partnership or such other location as the Offering Partner and the Accepting Partners (or their nominees) may agree, at which time the Offering Partner shall Sell to the Accepting Partners (or their nominees) the Offered Interest, free and clear of all Liens, claims, options to purchase and other restrictions of any nature whatsoever, except those set forth in this Agreement, against payment in cash of the purchase price therefor; provided, however, that in the event that the Accepting Partners (or their nominees) shall be purchasing the Offered Interest at the price set forth in the Offer pertaining thereto, and the terms of such Offer shall state that the third-party offeror offered to acquire the Offered Interest for consideration consisting of cash and (subject to the proviso to Subsection 9.3(c) above) a promissory note, then the Accepting Partners (or their nominees) shall pay to the Offering Partner the purchase price for the Offered Interest in cash, in an amount equal to the sum of (i) the amount of the purchase price which would have been paid in cash by the third-party offeror as set forth in the Offer, plus (ii) the principal amount of the promissory note which would have been delivered by the third-party offeror as set forth in the Offer.

 

(h)                     In the event that any proposed Sale of a Partnership Interest to a third party shall not have been consummated within the 90 days after the execution of the underlying definitive agreement referred to in Subsection 9.3(f) (which period shall, if all other conditions to closing have been satisfied except for required regulatory approvals (and those conditions that by their terms are to be satisfied at closing), automatically be extended for as long as reasonably necessary in order to obtain such regulatory approvals (until such time as it is determined that such approvals will not be obtained), any such proposed Sale, or any further proposed Sale, of such Partnership Interest shall again be subject to the provisions of this Section 9.3.

 

(i)                         Upon any Sale or exchange by PTLC and/or any of its Affiliates of one-hundred percent (100%) of the Partnership Interest then held by PTLC and its Affiliates (whether to the GE Representative Partner or any of its Affiliates or to one or more third parties), GE Tennessee (or an assignee of Partnership Interests held at the Effective Time by members of the GECC Consolidated Group which assignee shall have assumed the obligations under this Subsection 9.3(i)) shall pay or cause to be paid to PTLC, in cash, an amount equal to the lesser of (i) $5,000,000 and (ii) the amount equal to the amount of federal income tax that would be due and payable by PTLC and/or its Affiliates, as the case may be, in respect of such Sale or exchange, determined as if the maximum marginal rate for corporations with respect to ordinary income or capital gains, as the case may be, as in effect in the year such Sale or exchange takes place, applied to such transaction, on the excess of (A) the gain recognized by PTLC and/or its Affiliates upon such Sale or exchange over (B) the excess of (1) the aggregate amount of the losses and deductions allocated to PTLC and/or any of its Affiliates from the inception of the Partnership through the date of such Sale or exchange pursuant to Section 5.2, 5.3, 5.4 and 5.6 of this Agreement or the Corresponding Provisions of any Prior Agreement over (2) the aggregate amount of the income and gains allocated to PTLC and/or any of its Affiliates from the date of inception of the Partnership through the date of such Sale or exchange pursuant to Sections 5.2, 5.3, 5.4 and 5.6 of this Agreement or the Corresponding Provisions of any Prior Agreement (the excess of such losses and deductions over such income and gains is sometimes hereinafter referred to as “Net Losses”). For purposes of computing the amount of such federal income tax that would be due and payable in respect of such Sale or exchange, (x) both the Net Losses and the gain recognized by PTLC and/or its Affiliates upon such Sale or exchange shall be deemed to

 

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have arisen in the same taxable year, and (y) all losses, deductions and credits allocated to PTLC and/or its Affiliate under Sections 5.2, 5.3, 5.4 and 5.6 of this Agreement shall be taken into account and no limitations shall apply or be deemed to apply to the use of such losses, deductions and credits. Such calculation shall initially be made by PTLC and shall be confirmed in writing to GE Tennessee (or the assuming assignee as aforesaid) by the Auditor before any payment shall be required to be made by or on behalf of GE Tennessee (or such assignee) under this Subsection 9.3(i).

 

(j)                        Notwithstanding anything to the contrary set forth in this Section 9.3, (i) the provisions of this Subsection 9.3 shall not restrict or otherwise apply to the Sale of Partnership Interests (x) effected pursuant to the IPO or (y) after the IPO that are effected pursuant to (I) a public offering under an effective registration statement or (II) Rule 144 under the Securities Act and (ii) no Transfer permitted under this Section 9.3 shall be offered or consummated in the absence of an effective registration statement covering the applicable Partnership Interest under the Securities Act, unless such Transfer is exempt from registration under the Securities Act.

 

9.4                               Certain Changes of Control.

 

(a)                     In the event that (i) Penske Corporation, at any time and for any reason, either (A) shall have ceased to own, directly or indirectly, at least fifty-one percent (51%) of the outstanding common stock or other voting securities of Penske Transportation Holdings Corp. and (1) in an election of directors for which proxies are not solicited under the Exchange Act, Penske Corporation and/or its Affiliates by vote of their own shares and shares for which they have obtained proxies from other shareholders, shall be unable to elect at least half of the directors of Penske Transportation Holdings Corp., or (2) in an election of directors for which proxies are solicited under the Exchange Act, proxies for management nominees and the vote of Penske Corporation and/or its Affiliates and other persons shall not have resulted in the election of management nominee directors who aggregate at least half of the directors elected, or (B) shall have ceased to own, directly or indirectly, at least twenty-five percent (25%) of the outstanding common stock or other voting securities of Penske Transportation Holdings Corp., or (ii) Penske Transportation Holdings Corp., at any time and for any reason, shall have ceased to own, directly or indirectly, and have voting control over at least eighty percent (80%) of the outstanding common stock or other voting securities of the PTLC Consolidated Group member or members then holding Partnership Interests (excluding PTL GP and Holdings from the PTLC Consolidated Group for this determination), then from and after the occurrence of any of the events specified in clauses (i)(A), (i)(B) and (ii) above, the GE Partners or any nominee(s) thereof shall have the right, but not the obligation (which right shall expire one hundred eighty (180) days from the date on which the GE Partners shall have received the notice referred to in the last sentence of this Subsection 9.4(a)), to purchase pro rata (determined by reference to the relative Percentage Interests then held by each them) from such holders and any of the members of the PAG Consolidated Group then holding Partnership Interests, one-hundred percent (100%) of their respective Partnership Interests and one-hundred percent (100%) of their respective Member Interests at a purchase price, payable in cash, to be determined as of the date the GE Partners shall advise PTLC, PAG and the Mitsui Partners of the GE Partners’ or its nominee(s)’s decision to acquire one-hundred percent (100%) of the Partnership Interests and one-hundred percent (100%) of the Member Interests held by the PTLC Consolidated Group and the PAG

 

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Consolidated Group pursuant to this Subsection 9.4(a) by means of the appraisal procedure set forth in Subsection 9.4(e) herein plus any additional amount payable pursuant to the provisions of Subsection 9.3(i). PTLC shall give prompt written notice to the GE Partners of the occurrence of any of the events specified in clauses (i)(A), (i)(B) or (ii) of this Subsection 9.4(a).

 

(b)                     In the event that GECC at any time and for any reason shall have ceased to own, directly or indirectly, and have voting control over eighty percent (80%) of the outstanding common stock or other voting securities of the GECC Consolidated Group member or members then holding Partnership Interests, then from and after the occurrence of such events, PTLC or any nominee(s) thereof shall have the right, but not the obligation (which right shall expire one hundred eighty (180) days from the date on which PTLC shall have received the notice referred to in the last sentence of this Subsection 9.4(b)), to purchase from such holders one-hundred percent (100%) of their respective Partnership Interests and one-hundred percent (100%) of their respective Member Interests at a purchase price, payable in cash, to be determined as of the date PTLC shall advise such holders of its or its nominee(s)’s decision to acquire one-hundred percent (100%) of their respective Partnership Interests and one-hundred percent (100%) of their respective Member Interests pursuant to this Subsection 9.4(b) by means of the appraisal procedure set forth in Subsection 9.4(e). The GE Partners shall give prompt written notice to PTLC of the occurrence of any of the events specified in this Subsection 9.4(b).

 

(c)                      In the event that Mitsui at any time and for any reason shall have ceased to own, directly or indirectly, and have voting control over eighty percent (80%) of the outstanding common stock or other voting securities of the Mitsui Consolidated Group member or members then holding Partnership Interests, then from and after the occurrence of such events, PTLC (or the members of the PTLC Consolidated Group then holding Partnership Interests (the “PTLC Beneficiary”), the GE Partners or any nominee(s) thereof shall have the right, but not the obligation (which right shall expire one hundred eighty (180) days from the date on which the PTLC Beneficiary and the GE Partners shall have received the notice referred to in the last sentence of this Subsection 9.4(c)), to purchase from such holders their pro rata portion (based upon the relative ownership of the Partnership Interests by the PTLC Beneficiary (which pro rata portion, solely for purposes of this Subsection 9.4(c) and Subsection 9.4(e), shall include the Partnership Interests owned by PAG) and the GE Partners) of the respective Partnership Interests of such Persons, or one-hundred percent (100%) of the respective Partnership Interests of such Persons if either the PTLC Beneficiary or the GE Partners, as applicable, does not elect to purchase its pro rata portion of such Partnership Interests, at a purchase price, payable in cash, to be determined as of the earlier date that either of the PTLC Beneficiary or the GE Partners shall advise such holders of its or its nominee(s)’s decision to acquire its pro rata portion of the respective Partnership Interests of such Persons, or one-hundred percent (100%) of the respective Partnership Interests of such Persons, if either the PTLC Beneficiary or the GE Partners, as applicable, do not elect to purchase their pro rata portion of such Partnership Interests, pursuant to this Subsection 9.4(c), by means of the appraisal procedure set forth in Subsection 9.4(e). The Mitsui Partners shall give prompt written notice to the PTLC Beneficiary and the GE Partners of the occurrence of any of the events specified in this Subsection 9.4(c).

 

(d)                     In the event that any Penske Partner proposes to Transfer any portion of such Penske Partner’s Partnership Interest and, after giving effect to such Transfer (and any related series of Transfers by any Penske Partners) the Penske Partners and the Mitsui Partners

 

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cease to own, collectively (directly or indirectly), more than a fifty percent (50%) Percentage Interest (the “Triggering Transfer”), then in connection with such Triggering Transfer, the Mitsui Partners and the GE Partners will have the right to require the Transferring Penske Partner to cause the proposed transferee to purchase from the Mitsui Partners or the GE Partners (as applicable) a portion of the Partnership Interests of the Mitsui Partners or the GE Partners (as applicable) equal to (i) the Percentage Interest that the Mitsui Partners or the GE Partners (as applicable), directly or indirectly, own prior to giving effect to such transfer multiplied by (ii) the Partnership Interests being purchased in total, at the same purchase price and on the same terms and conditions as those applicable to the Transferring Penske Partner.

 

(e)                      If (A) the GE Partners or any nominee(s) thereof shall have elected in writing within the period specified in Subsection 9.4(a) to purchase one-hundred percent (100%) of the Partnership Interests and one-hundred percent (100%) of the Member Interests held by the PTLC Consolidated Group and the PAG Consolidated Group or (B) PTLC or any nominee(s) thereof shall have elected in writing within the period specified in Subsection 9.4(b) to purchase one-hundred percent (100%) of the Partnership Interests and one-hundred percent (100%) of the Member Interests held by the GECC Consolidated Group or (C) the PTLC Beneficiary, the GE Partners or any nominee(s) thereof shall have elected in writing within the period specified in Subsection 9.4(c) to purchase their pro rata portion of the Partnership Interests held by the Mitsui Consolidated Group, or one-hundred percent (100%) of the respective Partnership Interests of such Persons if either the PTLC Beneficiary or the GE Partners, as applicable, does not elect to purchase its pro rata portion of such Partnership Interests (based upon the relative ownership of the Partnership Interests by the PTLC Beneficiary and the GE Partners) (the Partnership Interests and Member Interests to be purchased hereinafter referred to as the “Purchased Interest”), then (x) in the case of any exercise by the GE Partners of their option to acquire one hundred percent (100%) of the Partnership Interests and one hundred percent of the Member Interests held by the PTLC Consolidated Group and the PAG Consolidated Group, the Mitsui Partners shall be entitled to require the GE Partners to purchase one-hundred percent (100%) of the Partnership Interests held by the Mitsui Partners (at the same purchase price and on the same terms and conditions as the Partnership Interests held by the PTLC Consolidated Group and the PAG Consolidated Group) by delivering written notice thereof within 30 days of the final determination of the fair market value of the Purchased Interests in accordance with the procedures set forth in Subsection 9.4(e)(y) below, and (y) each of the PTLC Consolidated Group, the GE Consolidated Group (except with respect to any exercise by the PTLC Beneficiary, the GE Partners or any nominee of an election pursuant to Subsection 9.4(c)) and, solely in the case of an election pursuant to Subsection 9.4(c), each of the PTLC Consolidated Group and/or the GECC Consolidated Group, as applicable, and the Mitsui Consolidated Group shall engage, at its own expense, an investment banking firm or valuation firm (which term includes accounting firms) of recognized national standing and experience in matters of this type, to appraise the Purchased Interest. Such firms shall determine the fair market value of the Purchased Interest as of the date of the GE Partners’ or PTLC’s, as applicable, notice referred to above. In reaching their determinations, such firms shall not take into account any “control premium” or “non-controlling discount” attributable to the Purchased Interest or the illiquid nature of an investment in the Purchased Interest. If the difference between the amount of the higher of such determinations and the amount of the lower of such determinations is not more than an amount equal to ten percent (10%) of the amount of the higher of such determinations, then the determinations of all such firms shall be averaged. If the difference between the

 

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respective amounts of such determinations is greater than an amount equal to ten percent (10%) of the amount of the higher of such determinations, then, in lieu of averaging such determinations, such firms shall jointly select an independent investment banking or valuation firm (which term includes accounting firms) of recognized national standing and experience in matters of this type, in each case, to determine the fair market value of the Purchased Interest, which determination shall not take into account any “control premium”, “non-controlling discount” or the illiquid nature of an investment therein as aforesaid. The costs and expenses of any such independent investment banking or valuation firm shall be borne equally by the GE Partners and the PTLC Beneficiary (except with respect to any exercise by the PTLC Beneficiary, the GE Partners or any nominee of an election pursuant to Subsection 9.4(c)) and, solely in the case of an election pursuant to Subsection 9.4(c), the PTLC Beneficiary and/or the GE Partners, as applicable, and the Mitsui Partners. Each applicable Partner agrees to use its reasonable best efforts to cause the appraising firms to complete their appraisals pursuant to this Subsection 9.4(e) as promptly as practicable. Upon the determination of the fair market value of the Purchased Interest by such independent firm, the two highest determinations of the fair market value of the Purchased Interest shall be averaged, which amount shall be the purchase price referred to in Subsection 9.4(a), 9.4(b) or 9.4(c).  For the avoidance of doubt, if the Mitsui Partners elect to require the GE Partners to purchase one-hundred percent (100%) of the Partnership Interests held by the Mitsui Partners, such purchase and sale shall be at the same purchase price and on the same terms and conditions as the corresponding purchase and sale of the Partnership Interests of the Partnership Interests of the PTLC Consolidated Group and the PAG Consolidated Group.

 

9.5                               Certain General Provisions.

 

(a)                     Any amounts payable in cash by any party pursuant to Subsection 9.3 or Subsection 9.4 shall be effected by means of wire transfer of immediately available funds to such account or accounts in the United States as the payee shall specify not less than one (1) Business Day prior to the date on which such payment is to occur.

 

(b)                     Notwithstanding anything to the contrary set forth in Subsection 9.2, 9.3 or 9.4, in the event that the acquisition by a Person of a Partnership Interest pursuant to any such provision would result in the Partnership ceasing to enjoy the status of a limited partnership under Delaware Law, then such Person shall not effect such acquisition, but such Person may effect the acquisition through an Affiliate of such Person or member of such Person’s consolidated group if such acquisition eliminates the cessation of the Partnership’s enjoying the status of a limited partnership under Delaware Law.

 

(c)                      The Limited Partners agree, upon request of the General Partner, to execute such certificates or other documents and perform such acts as the General Partner reasonably deems appropriate to preserve the status of the Partnership as a limited partnership, upon or after the completion of any Transfer of any Partnership Interest, under Delaware Law.

 

(d)                     Notwithstanding anything to the contrary in this Agreement, (i) in the event of the consummation of any Sale by any GE Partner of all or any portion of its Partnership Interests in accordance with this Article 9, the transferring GE Partner may Sell (A) the rights of the GE Representative Partner under Subsections 6.4(a) and 6.4(e) to designate and replace a

 

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member of the Advisory Committee that it is then entitled to so designate and replace or (B) the rights to designate and replace the GE Representative Partner under Section 6.4(e), provided that such Sale is accompanied by the Sale to the same third party of the right of the GE Representative Partner under Subsections 6.4(a) and 6.4(e) to designate and replace a member of the Advisory Committee; or (ii) in the event of any Sale of a Partnership Interest permitted by this Agreement, the transferring GE Partner or PTLC may Sell its purchase rights under Subsection 9.4(a) or Subsections 9.4(b) and (c), respectively. For the avoidance of doubt, the GE Representative Partner may Sell its right to designate and replace a member of the Advisory Committee to another member of the GECC Consolidated Group, subject to Subsection 9.2(d).

 

(e)                      Any transferee of a Partnership Interest that (i) acquires a Percentage Interest of at least ten percent (10%), (ii) has the right to designate and replace a member of the Advisory Committee pursuant to this Agreement or (iii) has the right to direct the vote of a member of the Advisory Committee shall be required to enter into a noncompetition covenant on substantially the same terms as the restrictions on GECC and its Subsidiaries set forth in Subsection 6.6(c).

 

(f)                       Notwithstanding anything to the contrary set forth in this Agreement, in the event of any Sale of a Partnership Interest permitted by this Agreement, the transferor Partner shall not cease to be a Partner or be deemed to have withdrawn as a Partner, until the transferee of such Partnership Interest shall have been admitted as a Partner pursuant to Section 9.10 below.

 

9.6                               Allocation of Profits, Losses and Distributions Subsequent to Sale.  All Profits, Losses, or any other items of income, gain, loss, deduction, or credit of the Partnership attributable to any Partnership Interest acquired by reason of any Sale of such Partnership Interest (i) that are allocable, in accordance with Subsection 5.5(c) to the portion of the Partnership Year ending on the effective date of the Sale shall be allocated, and any distributions made with respect thereto shall be distributed, to the transferor, and (ii) that are allocable, in accordance with Subsection 5.5(c), to subsequent periods shall be allocated, and any distributions made with respect thereto shall be distributed, to the transferee. Notwithstanding anything to the contrary in this Agreement, (x) GE Capital Memco, LLC, a Delaware limited liability company and a former Limited Partner of the Partnership shall be entitled to receive (and the Partnership shall pay directly to it), in respect of the Percentage Interest held by it prior to the date hereof, all distributions made pursuant to Subsection 5.1(b) for the 2014 Subject Year payable in respect of such Percentage Interest, and (y) the Mitsui Partners shall be entitled to receive, in respect of their Percentage Interests, all distributions for the 2015 Subject Year that are unpaid as of the Effective Time, if any, and any future distributions in respect of any prior Subject Year other than distributions made pursuant to Subsection 5.1(b) for the 2014 Subject Year.

 

9.7                               Death, Incompetence, Bankruptcy, Liquidation or Withdrawal of a Limited Partner.  The death, incompetence, Bankruptcy, liquidation or withdrawal of a Limited Partner shall not cause (in and of itself) a dissolution of the Partnership, but the rights of such a Limited Partner to share in the Profits and Losses of the Partnership, to receive distributions and to assign its Partnership Interest pursuant to this Article 9, on the happening of such an event, shall devolve on its beneficiary or other successor, executor, administrator, guardian or other legal representative for the purpose of settling its estate or administering its property, and

 

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the Partnership shall continue as a limited partnership. Such successor or personal representative, however, shall become a substituted limited partner only upon compliance with the requirements of Section 9.10 with respect to a transferee of a Partnership Interest. The estate of a Bankrupt Limited Partner shall be liable for all the obligations of the Limited Partner.

 

9.8                               Satisfactory Written Assignment Required.  Anything herein to the contrary notwithstanding, both the Partnership and the General Partner shall be entitled to treat the transferor of a Partnership Interest as the absolute owner thereof in all respects, and shall incur no liability for distributions of cash or other property made in good faith to it, until such time as a written assignment or other evidence of the consummation of a Sale that conforms to the requirements of this Article 9 and is reasonably satisfactory to the General Partner has been received by and recorded on the books of the Partnership, at which time the Sale shall become effective for purposes of this Agreement.

 

9.9                               Transferee’s Rights.  Any purported Transfer of a Partnership Interest which is not in compliance with this Agreement shall be null and void and of no force or effect whatsoever. A permitted transferee of any Partnership Interest pursuant to Section 9.1, 9.2, 9.3, 9.4 or 9.7 hereof shall be entitled to receive, in accordance with Section 9.6, allocations of Profits, Losses, or other items of income, gain, loss, deduction, or credit of the Partnership attributable to such Partnership Interest and allocable to periods after the effective date of the Sale, and distributions of cash or other property from the Partnership made with respect to periods after the effective date of the Sale, subject, in each case, to the last sentence of Section 9.6, but shall not become a Partner unless and until admitted pursuant to Section 9.10 hereof.

 

9.10                        Transferees Admitted as Partners.  The assignee or transferee of any Partnership Interest shall be admitted as a Partner only upon the satisfaction of the following conditions:

 

(a)                     A duly executed and acknowledged written instrument of Sale, in a form reasonably acceptable to the General Partner, and either a copy of this Agreement duly executed by the transferee or an instrument of assumption in form and substance reasonably satisfactory to the General Partner setting forth the transferee’s agreement to be bound by the provisions of this Agreement have been delivered to the Partnership.

 

(b)                     The transferee has paid any fees and reimbursed the Partnership for any expenses paid by the Partnership in connection with the Sale and admission.

 

The effective date of an admission of an assignee of a Partner and the withdrawal of the transferring Partner, if any, shall be the first day which is the last Business Day of a calendar month to occur following the satisfaction of the foregoing conditions, except as otherwise may be agreed by all the Partners in writing.

 

9.11                        Change of Control Rights.  In addition to any other approval required under the Act, any Change of Control of the Partnership (excluding, for the avoidance of doubt, the changes contemplated by Subsection 1.1(c)) shall be subject to approval by MBK CV (so long as the Mitsui Partners, collectively, own at least a ten percent (10%) Percentage Interest) and

 

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the GE Representative Partner (so long as the GE Representative Partner and its Affiliates collectively own at least a ten percent (10%) Percentage Interest).

 

ARTICLE 10

 

EXIT/ IPO RIGHT

 

10.1                        IPO Notice.

 

(a)                     On or after December 31, 2017, any Exercising Partner will have the right to deliver a written demand to the General Partner and the other Partners that an IPO (the “IPO Notice”) be effected in accordance with the provisions of this Article 10 and, if applicable, to effect the registration of all or any portion of the Exercising Partner’s Securities (which may include any of such Partner’s Affiliates identified in such IPO Notice) in such IPO. Except as expressly provided below, each of the other Partners agrees to use all reasonable best efforts to effect such IPO. Upon receipt of such IPO Notice, promptly and in any event within the sixty (60) day period thereafter, the Exercising Partner and the Non-Exercising Partner (and their respective advisors) will meet from time to time at mutually agreeable times and locations to attempt to decide jointly in good faith on an appropriate transaction structure for such IPO. In such meetings, the Exercising Partner and the Non-Exercising Partner (and their respective advisors) will review, analyze and discuss the economic and tax impacts of potential transaction structures and will consider a transaction structure similar to the Barnes & Noble transaction (commonly referred to as an “UPREIT structure”) and appropriate opinion(s) (if any) of a nationally recognized law firm or accounting firm with respect to potential transaction structures.  In addition to the foregoing, the Exercising Partner and the Non-Exercising Partner shall consult with MBK CV regarding the structuring of any IPO and shall consider in good faith any suggestions of MBK CV in connection therewith.

 

(b)                     If the Exercising Partner, the Non-Exercising Partner and MBK CV are unable to agree on a transaction structure for such IPO within such sixty (60) day period (or such longer period as they may mutually agree), the Exercising Partner will have the right, within the thirty (30) day period following such sixty (60) day period, to deliver a written demand to the General Partner and the other Partners that such IPO shall utilize the transaction structure set forth in such notice (the “IPO Demand Notice”). Within sixty (60) days thereafter, the Non-Exercising Partner will have the right to object to such IPO Demand Notice by delivering a written notice to such effect to the Exercising Partner and the other Partners based solely on the Non-Exercising Partner’s conclusion that the consummation of such IPO (utilizing the transaction structure set forth in the IPO Demand Notice) could be reasonably expected to result in material adverse tax impacts on the Non-Exercising Partner or its Parent Company as well as the basis for such objection (with such basis set forth in reasonable detail in writing if practicable) (the “IPO Rebuttal”). If an IPO Rebuttal is received, for the thirty (30) day period following receipt thereof, the Exercising Partner will have the opportunity to (i) object to such IPO Rebuttal on the basis that the proposed transaction structure set forth therein would not constitute such a material adverse tax impact and/or (ii) propose an alternate transaction structure(s) for the IPO that would not result in material adverse tax impacts on the Non-Exercising Partner or its Parent Company (the “Alternative Structure” or “Alternative Structures”). If a valid Alternative Structure is proposed within such thirty (30) day period (or

 

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such longer period as the Exercising Partner and the Non-Exercising Partner may mutually agree), then the IPO Consummation Obligation will continue by utilizing such Alternative Structure, provided that the Alternative Structure would not have material adverse tax impacts on the Non-Exercising Partner or its Parent Company. The Partners hereby agree that in no event will indemnification be required for any potential adverse tax impacts arising in connection with the consummation of an IPO or the utilization of any transaction structure.

 

(c)                      Subject to Subsections 10.1(a) and 10.1(b), commencing one year from the date of the initial IPO Notice, the General Partner and the Partnership shall take all reasonable best efforts to pursue an IPO to be consummated as soon as practicable thereafter (the “IPO Consummation Obligation”). The time period for commencement or consummation of the IPO pursuant to the IPO Consummation Obligation may be delayed upon receipt of a manually signed approval of a duly authorized officer of the Exercising Partner to such effect.

 

(d)                     If an IPO is consummated pursuant to this Section 10.1, all of the Partners shall have the right to participate pro rata in such IPO in accordance with their respective Percentage Interests. Notwithstanding the immediately preceding sentence, if the IPO is consummated on or before June 18, 2019 (i.e., the date of maturity of the Company Bonds (as defined in the Holdings LLC Agreement)), or on a later date on which the Company Bonds continue to be outstanding, and the GE Partners, the Mitsui Partners or the Penske Partners desire to participate as selling equityholders in the IPO (the “Selling Interests”), then, with respect to the Selling Interests, the GE Partners, the Mitsui Partners and the Penske Partners will have the right to demand that the Partnership give first priority to:  (i) in the case of the Penske Partners, Partnership Interests held by the Penske Partners with a value of up to $350,700,000 (i.e., 50.1% of the $700,000,000 aggregate principal amount of the Company Bonds), (ii) in the case of the GE Partners, Partnership Interests held by the GE Partners with a value of up to the GE Priority Amount, and (iii) in the case of the Mitsui Partners, Partnership Interests held by the Mitsui Partners with a value of up to the Mitsui Priority Amount.

 

(e)                      For the avoidance of doubt, the transactions contemplated by this Section 10.1 shall not be subject to Sections 9.2 and 9.3.

 

(f)                       In the event that an IPO is abandoned or otherwise not consummated pursuant to this Section 10.1, and a transaction structure proposed for such IPO had been subject to the review and discussion process in Subsections 10.1(a) and 10.1(b), during which it was agreed or determined that such transaction structure would not have material adverse tax impacts on the Non-Exercising Partner or its Parent Company (an “Approved IPO Structure”), either Exercising Partner will have the right to deliver an IPO Notice with respect to such Approved IPO Structure and the Non-Exercising Partner will have the right, within the sixty (60) day period following the delivery of such IPO Notice, to deliver an IPO Rebuttal based solely on its conclusion that such Approved IPO Structure could reasonably be expected to result in material adverse tax impacts on the Non-Exercising Partner or its Parent Company when compared to the tax impacts existing at the time such transaction structure was previously determined not to have material adverse tax impacts on the Non-Exercising Partner or its Parent Company. If such IPO Rebuttal is delivered, then the Exercising Partner and the Non-Exercising Partner shall then follow the procedures set forth in Subsection 10.1(b) with respect to such IPO Notice. If no such

 

73

 

IPO Rebuttal is timely delivered to the Exercising Partner, then the IPO Consummation Obligation will continue by utilizing such Approved IPO Structure.

 

(g)                      In the event that an IPO is abandoned or otherwise not consummated pursuant to this Section 10.1, and (i) the last transaction structure proposed by the Exercising Partner and discussed under Subsections 10.1(a) and (b) would have had material adverse tax impacts on the Non-Exercising Partner or its Parent Company, (ii) an Approved IPO Structure did not exist, or (iii) the Exercising Partner desires to pursue a transaction other than an Approved IPO Structure, then, notwithstanding the first sentence of Subsection 10.1(a), neither the Exercising Partner nor the non-Exercising Partner will have the right to deliver a new IPO Notice until on or after the first anniversary of the date of the most recent IPO Notice. Such IPO Notice will be subject to the process set forth in Subsections 10.1(a) and 10.1(b), except that the sixty (60) day periods therein shall be thirty (30) day periods for any such subsequent IPO Notice.

 

(h)                     No Exercising Partner shall have the right to deliver an IPO Notice during the pendency of discussions pursuant to this Section 10.1 concerning a previously delivered IPO Notice.

 

(i)                         For the avoidance of doubt, the Exercising Partner, the Non-Exercising Partner and the Mitsui Partners agree that in connection with any IPO, such Partners shall agree on a mutually acceptable structure therefor, including by making amendments to this Agreement to reflect appropriate governance rights for the Partners in a public company structure at such time; provided, however, that any such governance rights included in this Agreement at the time of such IPO shall not be materially and disproportionately detrimental to the Mitsui Partners relative to the other Limited Partners (taking into account the Percentage Interests held by the Limited Partners).

 

10.2                        Partnership Restructuring in connection with IPO.  Subject to Subsection 10.1(a), commencing one year from the date of receipt of the IPO Notice by the General Partner, the GE Partners and PTLC shall meet to discuss restructuring the Partnership in order to effect an IPO with the most favorable tax treatment possible and each of the General Partner, the GE Partners and PTLC shall use reasonable best efforts to devise and effect such restructuring.

 

10.3                        IPO Alternative.  Upon receipt of the IPO Notice, the GE Partners or Penske Partners, as applicable, will have the option to simultaneously seek a purchaser of the Partnership Interests and Member Interests held by the Exercising Partner. If such interests are not purchased pursuant to a purchase agreement executed and delivered to the Partnership by another Person at a price acceptable to the Exercising Partner(s) in its sole discretion by the first anniversary of the date of the IPO Notice, then the Exercising Partner or other Partners will have the right to participate in the IPO in accordance with the Registration Rights Agreement. Any Sale of Partnership Interests pursuant to this Section 10.3 shall not be subject to the provisions of Article 9.

 

74

 

ARTICLE 11

 

DISSOLUTION

 

11.1                        Events of Dissolution.  The Partnership shall continue until December 31, 2030, or such later date as PTLC, the GE Representative Partner (so long as the GE Representative Partner and its Affiliates collectively own at least a ten percent (10%) Percentage Interest) and MBK CV (so long as the Mitsui Partners, collectively, own at least a ten percent (10%) Percentage Interest) may agree, unless sooner dissolved upon the earliest to occur of the following events, which shall cause an immediate dissolution of the Partnership:

 

(a)                     the sale, exchange or other disposition of all or substantially all of the Partnership’s assets;

 

(b)                     the withdrawal, resignation, filing of a certificate of dissolution or revocation of the charter or Bankruptcy of the General Partner or the occurrence of any other event which causes the General Partner to cease to be a general partner of the Partnership under the Act, except as contemplated by Section 1.1 (each an “Event of Withdrawal”); provided, however, that upon the occurrence of an Event of Withdrawal of the General Partner, the Partnership shall not be dissolved and its business shall not be required to be wound up if within 90 days after such Event of Withdrawal all the Limited Partners then holding a majority of the Partnership Interests (exclusive of any Partnership Interest then held by members of the PTLC Consolidated Group) agree in writing to continue the business of the Partnership and to the appointment, effective as of the occurrence of such Event of Withdrawal, of one or more successor general partners of the Partnership, each of whom is hereby authorized to continue the business of the Partnership; or

 

(c)                      such earlier date as PTLC, the GE Representative Partner (so long as the GE Representative Partner and its Affiliates collectively own at least a ten percent (10%) Percentage Interest) and MBK CV (so long as the Mitsui Partners, collectively, own at least a ten percent (10%) Percentage Interest) elect.

 

11.2                        Final Accounting.  Upon the dissolution of the Partnership and the failure to continue the Partnership as provided in Section 11.1 hereof, a proper accounting shall be made by the Partnership’s Auditor from the date of the last previous accounting to the date of dissolution.

 

11.3                        Liquidation.  Upon the dissolution of the Partnership and the failure to continue the Partnership as provided in Section 11.1 hereof, the General Partner or, if there is no General Partner, a person approved by PTLC, the GE Representative Partner (so long as the GE Representative Partner and its Affiliates collectively own at least a ten percent (10%) Percentage Interest) and MBK CV (so long as the Mitsui Partners, collectively, own at least a ten percent (10%) Percentage Interest), shall act as liquidator to wind up the Partnership. The liquidator shall have full power and authority to sell, assign and encumber any or all of the Partnership’s assets and to wind up and liquidate the affairs of the Partnership in an orderly and business-like manner. All proceeds from liquidation shall be distributed in the following orders of priority: (a) to the payment and discharge of the debts and liabilities of the Partnership

 

75

 

(other than liabilities for distributions to Partners) and expenses of liquidation, (b) to the setting up of such reserves as the liquidator may reasonably deem necessary for any contingent liability of the Partnership (other than liabilities for distributions to Partners), and (c) the balance to the Partners in accordance with their Capital Accounts after adjustment to reflect all Profit and Loss for the Partnership Year in which such liquidation occurs.

 

11.4                        Cancellation of Certificate.  Upon the completion of the distribution of Partnership assets as provided in Section 11.3 hereof, the Partnership shall be terminated and the person acting as liquidator shall cause the cancellation of the Certificate and shall take such other actions as may be necessary or appropriate to terminate the Partnership.

 

ARTICLE 12

 

INVESTMENT REPRESENTATIONS

 

12.1                        Investment Purpose.  Each Limited Partner represents and warrants to the Partnership and to each other Partner that it has acquired its limited partner interest in the Partnership for its own account, for investment only and not with a view to the distribution thereof, except to the extent provided in or contemplated by this Agreement.

 

12.2                        Investment Restriction.  Each Partner recognizes that (a) the limited partner interests in the Partnership have not been registered under the Securities Act in reliance upon an exemption from such registration, and agrees that it will not Transfer its limited partner interest in the Partnership (i) in the absence of an effective registration statement covering such limited partner interest under the Securities Act, unless such offer or Transfer is exempt from registration for any proposed sale, and (ii) except in compliance with all applicable provisions of this Agreement, and (b) the restrictions on transfer imposed by this Agreement may severely affect the liquidity of an investment in limited partner interests in the Partnership.

 

ARTICLE 13

 

NOTICES

 

13.1                        Method of Notice.  Any notice or request hereunder may be given to any Partner at their respective addresses/ numbers set forth below or at such other address/ number as may hereafter be specified in a notice designated as a notice of change of address under this Section. Any notice or request hereunder may be given by (a) hand delivery, (b) overnight courier, (c) registered or certified mail, return receipt requested, or (d) electronic transmission or facsimile (or such other e-mail address or number as may hereafter be specified in a notice designated as a notice of change of address), with electronic confirmation of its receipt and subsequently confirmed by registered or certified mail or overnight courier. Any notice or other communication required or permitted pursuant to this Agreement shall be deemed given (i) when personally delivered to any officer of the party to whom it is addressed, (ii) on the earlier of actual receipt thereof or five (5) Business Days following posting thereof by certified or registered mail, postage prepaid, (iii) upon actual receipt thereof when sent by a recognized overnight delivery service or (iv) upon actual receipt thereof when sent by electronic transmission or by facsimile to the address or number set forth below with electronic

 

76

 

confirmation of its receipt, in each case, addressed to each party at its address set forth below or at such other address as has been furnished in writing by a party to the other by like notice, provided, that in order for an electronic transmission to constitute proper notice hereunder, such electronic transmission must specifically reference this Section 13.1 and state that it is intended to constitute notice hereunder:

 

	
(1)
    	
If to PTLC at:
    	
Penske Truck Leasing   Corporation
   2675 Morgantown Road,
   Reading, Pennsylvania 19607
   Attention:  Senior Vice President —   General Counsel
   Facsimile:  610-775-6330
   E-mail Address:    david.battisti@penske.com
    
	
 
    	
 
    	
 
    
	
 
    	
with a copy to:
    	
Penske Truck Leasing   Corporation
   2675 Morgantown Road,
   Reading, Pennsylvania 19607
   Attention:  Senior Vice President —   Finance
   Facsimile:  610-775-5064
   E-mail Address:  frank.cocuzza@penske.com
    
	
 
    	
 
    	
 
    
	
 
    	
and a copy to
    	
Penske Corporation
   2555 Telegraph Road,
   Bloomfield Hills, MI 48302
   Attention:  Executive Vice President   and General Counsel
   Facsimile:  248-648-2135
   E-mail Address:    larry.bluth@penskecorp.com
    
	
 
    	
 
    	
 
    
	
(2)
    	
If to PTL GP at:
    	
c/o Penske Truck Leasing   Corporation
   2675 Morgantown Road,
   Reading, Pennsylvania 19607
   Attention:  Senior Vice President —   General Counsel
   Facsimile:  610-775-6330
   E-mail Address:    david.battisti@penske.com
    
	
 
    	
 
    	
 
    
	
 
    	
with a copy to:
    	
c/o Penske Truck Leasing   Corporation
   2675 Morgantown Road,
   Reading, Pennsylvania 19607
   Attention:  Senior Vice President —   Finance
   Facsimile:  610-775-5064
   E-mail Address:    frank.cocuzza@penske.com
    

 

77

 

	
 
    	
and a copy to
    	
Penske Corporation
   2555 Telegraph Road,
   Bloomfield Hills, MI 48302
   Attention:  Executive Vice President   and General Counsel
   Facsimile:  248-648-2135
   E-mail Address:    larry.bluth@penskecorp.com
    
	
 
    	
 
    	
 
    
	
(3)
    	
If to PAG at:
    	
Penske Automotive   Group, Inc.
   2555 Telegraph Road
   Bloomfield Hills, Michigan 48302
   Attention:  General Counsel
   Facsimile:  248-648-2515
   E-mail Address:    sspradlin@penskeautomotive.com
    
	
 
    	
 
    	
 
    
	
 
    	
with a copy to:
    	
Penske Automotive   Group, Inc.
   2555 Telegraph Road,
   Bloomfield Hills, Michigan 48302
   Attention:  Chief Financial Officer
   Facsimile:  248-648-2515
   E-mail Address:    dave.jones@penskeautomotive.com
    
	
 
    	
 
    	
 
    
	
(4)
    	
If to GE Truck Leasing
    	
GE Capital Truck Leasing   Holding Corp.
    
	
 
    	
Leasing Holdco at:
    	
901 Main Avenue 3rd Floor
   Norwalk, Connecticut 06851
   Attention:  Dennis Murray, President
   Facsimile:  203-823-4502
   Email Address:  Dennis.Murray@ge.com
    
	
 
    	
 
    	
 
    
	
 
    	
with a copy to
    	
GE Capital Truck Leasing   Holding Corp.
   c/o General Electric Capital Corporation
   901 Main Avenue, 6th Floor
   Norwalk, Connecticut 06851
   Attention:  Executive Counsel —   Mergers & Acquisitions
   Facsimile:  (203) 286-2181
   Email:  mark.landis@ge.com
    
	
 
    	
 
    	
 
    
	
(5)
    	
If to GE Logistics
    	
Logistics Holding Corp.
    
	
 
    	
Holdco at:
    	
1209 Orange Street
   Wilmington, Delaware 19808
    

 

78

 

	
 
    	
with a copy to
    	
Logistics Holding Corp.
   c/o General Electric Capital Corporation
   901 Main Avenue, 6th Floor
   Norwalk, Connecticut 06851
   Attention:  Executive Counsel —   Mergers & Acquisitions
   Facsimile:  (203) 286-2181
   Email:  mark.landis@ge.com
    
	
 
    	
 
    	
 
    
	
(6)
    	
If to GE Tennessee at:
    	
General Electric Credit   Corporation of Tennessee
   2 Bethesda Metro Center, Suite 600
   Bethesda, Maryland 20814
   Attention:  Deneen Sanders
   Facsimile:  (312) 602-3937
   Email:  Deneen.Sanders@ge.com
    
	
 
    	
 
    	
 
    
	
 
    	
with a copy to
    	
General Electric Credit Corporation   of Tennessee
   c/o General Electric Capital Corporation
   901 Main Avenue, 6th Floor
   Norwalk, Connecticut 06851
   Attention:  Executive Counsel —   Mergers & Acquisitions
   Facsimile:  (203) 286-2181
   Email:  mark.landis@ge.com
    
	
 
    	
 
    	
 
    
	
(7)
    	
If to MBK CV at:
    	
MBK Commercial Vehicles Inc.
   c/o Mitsui & Co., Ltd.

Nippon Life Marunouchi Garden Tower

1-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

Attention: Fumiaki Miyamoto

General Manager

First Motor Vehicles Div.

Facsimile: +81 3-3285-9005
    
	
 
    	
 
    	
 
    
	
 
    	
with a copy to
    	
Debevoise &   Plimpton LLP
   919 Third Avenue
   New York, NY 10022
   Attention:  Ezra Borut, Esq.
   Facsimile:  212-909-6836
   Email:  eborut@debevoise.com
    
	
 
    	
 
    	
 
    
	
(8)
    	
If to MBK USA CV at:
    	
MBK USA Commercial Vehicles Inc.
   c/o Mitsui & Co., Ltd.

Nippon Life Marunouchi   Garden Tower
    

 

79

 

	
 
    	
 
    	
1-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

Attention: Fumiaki Miyamoto

General Manager

First Motor Vehicles Div.

Facsimile: +81 3-3285-9005
    
	
 
    	
 
    	
 
    
	
 
    	
with a copy to
    	
Debevoise & Plimpton LLP
   919 Third Avenue
   New York, NY 10022
   Attention:  Ezra Borut, Esq.
   Facsimile:  212-909-6836
   Email:  eborut@debevoise.com
    

 

13.2                        Computation of Time.  In computing any period of time under this Agreement, the day of the act, event or default from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is not a Saturday, Sunday or non-Business Day.

 

ARTICLE 14

 

GENERAL PROVISIONS

 

14.1                        Entire Agreement.  This Agreement constitutes the entire agreement with respect to the subject matter hereof prospectively from the Effective Time. For preclusion of doubt, this Agreement does not modify or amend any rights or obligations of the Partnership or any Partners with respect to events or circumstances arising or existing prior to the Effective Time, which matters will continue to be governed by the agreement of limited partnership of the Partnership in effect at the applicable time, and does not waive or release any claim of a Partner or the Partnership with respect to any event or circumstance arising or existing prior to the Effective Time.

 

14.2                        Amendment; Waiver.  The written approval of all of the Partners shall be required with respect to any amendment of this Agreement that would have either a disproportionate or a material adverse effect on the rights or obligations of any Partner; all other amendments shall require the approval of the General Partner and Majority Limited Partners. For the avoidance of doubt, distributions and allocations to the Partners are deemed material for the purposes of the preceding sentence. No rights under this Agreement shall be waived except by an instrument in writing signed by the party sought to be charged with such waiver. The General Partner shall give written notice to all Partners promptly after any amendment has become effective.

 

14.3                        Governing Law.  This Agreement shall be construed and enforced in accordance with and governed by the Laws of the State of Delaware, without giving effect to the provisions, policies or principles thereof relating to choice or conflict of Laws.

 

80

 

14.4                        Binding Effect.  Except as provided otherwise herein, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors and permitted assigns.

 

14.5                        Separability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

14.6                        Headings.  The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

14.7                        No Third-Party Rights.  Nothing in this Agreement shall be deemed to create any right in any person not a party hereto (other than the permitted successors and permitted assigns of a party hereto) and this Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of any third party (except as aforesaid).

 

14.8                        Waiver of Partition.  Each Partner, by requesting and being granted admission to the Partnership, is deemed to waive until termination of the Partnership any and all rights that it may have to commence or maintain any action for partition of the Partnership’s assets.

 

14.9                        Nature of Interests.  All Partnership property, whether real or personal, tangible or intangible, shall be deemed to be owned by the Partnership as an entity, and none of the Partners shall have any direct ownership of such property.

 

14.10                 Counterpart Execution.  This Agreement may be executed in any number of counterparts, each of which shall be an original instrument and all of which, when taken together, shall constitute one and the same Agreement. Delivery of an executed signature page of this Agreement by email, PDF or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

 

[Signature Page Follows]

 

81

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written, effective as of the Effective Time.

 

	
 
    	
GENERAL   PARTNER:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PTL   GP, LLC
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
LJ   VP Holdings LLC,
    	
 
    
	
 
    	
 
    	
its   sole member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   Penske Truck Leasing Corporation,
    
	
 
    	
 
    	
its   sole managing member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Hard
    
	
 
    	
 
    	
 
    	
Name:   
    	
Brian   Hard
    
	
 
    	
 
    	
 
    	
Title:
    	
President
    
									

 

 

	
 
    	
LIMITED   PARTNER:
    
	
 
    	
 
    
	
 
    	
PENSKE   TRUCK LEASING
    
	
 
    	
CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Brian Hard
    
	
 
    	
 
    	
Name:   
    	
Brian   Hard
    
	
 
    	
 
    	
Title:
    	
President
    

 

 

	
 
    	
LIMITED   PARTNER:
    
	
 
    	
 
    
	
 
    	
PENSKE   AUTOMOTIVE GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   David Jones
    
	
 
    	
 
    	
Name:   
    	
David   Jones
    
	
 
    	
 
    	
Title:
    	
EVP &   CFO
    

 

 

	
 
    	
LIMITED   PARTNER:
    
	
 
    	
 
    
	
 
    	
GE   CAPITAL TRUCK LEASING
    
	
 
    	
HOLDING   CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Dennis M. Murray
    
	
 
    	
 
    	
Name:   
    	
Dennis   M. Murray
    
	
 
    	
 
    	
Title:
    	
Authorized   Person
    

 

 

	
 
    	
LIMITED   PARTNER:
    
	
 
    	
 
    
	
 
    	
LOGISTICS   HOLDING CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Dennis M. Murray
    
	
 
    	
Name:
    	
Dennis   M. Murray
    
	
 
    	
Title:
    	
Authorized   Person
    
				

 

 

	
 
    	
LIMITED   PARTNER:
    
	
 
    	
 
    
	
 
    	
GENERAL   ELECTRIC CREDIT
    
	
 
    	
CORPORATION   OF TENNESSEE
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Dennis M. Murray
    
	
 
    	
 
    	
Name:   
    	
Dennis   M. Murray
    
	
 
    	
 
    	
Title:
    	
Authorized   Person
    

 

 

	
 
    	
LIMITED   PARTNER:
    
	
 
    	
 
    
	
 
    	
MBK   COMMERCIAL VEHICLES INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Rui Nakatani
    
	
 
    	
 
    	
Name:   
    	
Rui   Nakatani
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    

 

 

	
 
    	
LIMITED   PARTNER:
    
	
 
    	
 
    
	
 
    	
MBK   USA COMMERCIAL VEHICLES INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Rui Nakatani
    
	
 
    	
 
    	
Name:   
    	
Rui   Nakatani
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    

 

 

Schedule A

 

Effective at the Close of Business of the Partnership on March 18, 2015

 

	
Name
    	
 
    	
Percentage Interest
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
General Partner
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
PTL GP, LLC
    	
 
    	
10.79
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Limited Partners
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Penske Truck Leasing Corporation
    	
 
    	
32.23
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Penske Automotive Group, Inc.
    	
 
    	
7.08
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
GE Capital Truck Leasing Holding Corp.
    	
 
    	
29.27
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Logistics Holding Corp.
    	
 
    	
0.24
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
General Electric Credit Corporation of Tennessee
    	
 
    	
0.39
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
MBK Commercial Vehicles Inc.
    	
 
    	
16.00
    	
%(1)
    
	
 
    	
 
    	
 
    	
 
    
	
MBK USA Commercial   Vehicles Inc.
    	
 
    	
4.00
    	
%(2)
    

 

(1)  Note: Certain of the Partnership Interests included in, and represented by, MBK CV’s Percentage Interest are pledged, as of the Effective Time, pursuant to the terms of the Mitsui Co-Obligation Fee, Payment and Security Agreement.

 

(2)  Note: Certain of the Partnership Interests included in, and represented by, MBK USA CV’s Percentage Interest are pledged, as of the Effective Time, pursuant to the terms of the Mitsui Co-Obligation Fee, Payment and Security Agreement.

 

 

Schedule B

 

Current Members of Advisory Committee

 

	
Penske   Committee Members:
    	
 
    	
Roger   S. Penske 
   Brian Hard 
   Roger S. Penske, Jr.
    
	
 
    	
 
    	
 
    
	
GE   Committee Member:
    	
 
    	
Trevor   Schauenberg
    
	
 
    	
 
    	
 
    
	
Mitsui   Committee Member:
    	
 
    	
Takeshi   Mitsui

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