Document:

Exhibit 10.1

 

EXECUTION VERSION

 

 

 

$38,000,000,000

 

364-DAY BRIDGE CREDIT AGREEMENT

 

Dated as of June 25, 2019

 

among

 

ABBVIE INC.,
 as Borrower,

 

VARIOUS FINANCIAL INSTITUTIONS,
 as Lenders,

 

and

 

MORGAN STANLEY SENIOR FUNDING, INC.,
 as Administrative Agent

 

_____________________________________

 

MUFG BANK, LTD.,
 as Syndication Agent

 

MORGAN STANLEY SENIOR FUNDING, INC.
 and
 MUFG BANK, LTD.,
 as Joint Lead Arrangers and Joint Bookrunners

 

 

TABLE OF CONTENTS

_______________________

PAGE

 

	
ARTICLE 1
    
	
DEFINITIONS AND ACCOUNTING TERMS
    
	
 
    	
 
    	
 
    
	
Section   1.01.
    	
Certain Defined   Terms
    	
1
    
	
Section   1.02.
    	
Computation of Time   Periods
    	
25
    
	
Section   1.03.
    	
Accounting Terms
    	
25
    
	
Section   1.04.
    	
Terms Generally
    	
25
    
	
Section   1.05.
    	
Divisions
    	
26
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    
	
AMOUNTS AND TERMS OF THE ADVANCES
    
	
 
    	
 
    	
 
    
	
Section   2.01.
    	
The Advances
    	
26
    
	
Section   2.02.
    	
Making the Advances
    	
26
    
	
Section   2.03.
    	
[Reserved]
    	
28
    
	
Section   2.04.
    	
Fees. (a) Commitment   Fee
    	
29
    
	
Section   2.05.
    	
Termination or   Reduction of the Commitments; Mandatory Prepayments
    	
29
    
	
Section   2.06.
    	
Repayment of   Advances
    	
31
    
	
Section   2.07.
    	
Interest on   Advances. (a) Scheduled Interest
    	
31
    
	
Section   2.08.
    	
Interest Rate   Determination
    	
32
    
	
Section   2.09.
    	
Optional Conversion   of Advances
    	
33
    
	
Section   2.10.
    	
Optional and   Mandatory Prepayments of Advances
    	
33
    
	
Section   2.11.
    	
Increased Costs
    	
34
    
	
Section   2.12.
    	
Illegality
    	
35
    
	
Section   2.13.
    	
Payments and   Computations
    	
35
    
	
Section   2.14.
    	
Taxes
    	
36
    
	
Section   2.15.
    	
Sharing of   Payments, Etc.
    	
40
    
	
Section   2.16.
    	
Use of Proceeds
    	
40
    
	
Section   2.17.
    	
Evidence of Debt
    	
40
    
	
Section   2.18.
    	
Defaulting Lenders
    	
41
    
	
Section   2.19.
    	
Mitigation
    	
42
    
	
 
    	
 
    	
 
    
	
ARTICLE 3
    
	
CONDITIONS TO EFFECTIVENESS AND LENDING; CERTAIN FUNDS PERIOD
    
	
 
    	
 
    	
 
    
	
Section   3.01.
    	
Conditions   Precedent to Effective Date
    	
42
    
	
Section   3.02.
    	
Conditions Precedent   to Pre-Closing Funding Date and/or Closing Date
    	
44
    
	
Section   3.03.
    	
Actions by Lenders   During the Certain Funds Period
    	
45
    
	
 
    	
 
    	
 
    
	
ARTICLE 4
    
	
REPRESENTATIONS AND WARRANTIES
    
	
 
    	
 
    	
 
    
	
Section   4.01.
    	
Representations and   Warranties
    	
46
    

 

i

 

	
ARTICLE 5
    
	
COVENANTS
    
	
 
    	
 
    	
 
    
	
Section   5.01.
    	
Affirmative   Covenants
    	
50
    
	
Section   5.02.
    	
Negative Covenants
    	
57
    
	
Section   5.03.
    	
Financial Covenant   Total Debt to EBITDA
    	
59
    
	
 
    	
 
    	
 
    
	
ARTICLE 6
    
	
EVENTS OF DEFAULT
    
	
 
    	
 
    	
 
    
	
Section   6.01.
    	
Events of Default
    	
59
    
	
 
    	
 
    	
 
    
	
ARTICLE 7
    
	
THE AGENTS
    
	
 
    	
 
    	
 
    
	
Section   7.01.
    	
Authorization and   Action
    	
62
    
	
Section   7.02.
    	
Administrative   Agent Individually
    	
62
    
	
Section   7.03.
    	
Duties of   Administrative Agent; Exculpatory Provisions
    	
62
    
	
Section   7.04.
    	
Reliance by   Administrative Agent
    	
63
    
	
Section   7.05.
    	
Delegation of   Duties
    	
63
    
	
Section   7.06.
    	
Resignation of   Administrative Agent
    	
64
    
	
Section   7.07.
    	
Non-Reliance on   Administrative Agent and Other Lenders
    	
64
    
	
Section   7.08.
    	
Indemnification
    	
65
    
	
Section 7.09.
    	
Other Agents
    	
65
    
	
Section   7.10.
    	
ERISA
    	
65
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    
	
[RESERVED]
    
	
 
    
	
ARTICLE 9
    
	
MISCELLANEOUS
    
	
 
    	
 
    	
 
    
	
Section   9.01.
    	
Amendments, Etc.
    	
66
    
	
Section   9.02.
    	
Notices, Etc.
    	
67
    
	
Section   9.03.
    	
No Waiver; Remedies
    	
69
    
	
Section   9.04.
    	
Costs and Expenses
    	
69
    
	
Section 9.05.
    	
Right of Setoff
    	
71
    
	
Section   9.06.
    	
Binding Effect
    	
71
    
	
Section   9.07.
    	
Assignments and   Participations
    	
71
    
	
Section   9.08.
    	
Confidentiality
    	
75
    
	
Section   9.09.
    	
Debt Syndication   during the Certain Funds Period
    	
76
    
	
Section   9.10.
    	
Governing Law
    	
76
    
	
Section   9.11.
    	
Execution in   Counterparts
    	
76
    
	
Section   9.12.
    	
Jurisdiction, Etc.
    	
77
    
	
Section   9.13.
    	
Patriot Act Notice
    	
77
    
	
Section   9.14.
    	
No Advisory or   Fiduciary Responsibility
    	
77
    
	
Section   9.15.
    	
Waiver of Jury   Trial
    	
77
    
	
Section   9.16.
    	
Conversion of   Currencies
    	
78
    
	
Section 9.17.
    	
Acknowledgment and   Consent to Bail In of EEA Financial Institutions
    	
78
    
	
Section   9.18.
    	
Nonreliance
    	
78
    
	
Section   9.19.
    	
Release of   Guaranties
    	
79
    

 

ii

 

	
SCHEDULES
    	
 
    	
 
    
	
Schedule   I
    	
–
    	
Commitments
    
	
Schedule   II
    	
–
    	
Administrative   Agent’s Office; Certain Addresses for Notices
    
	
Schedule   4.01(f)
    	
–
    	
Legal   Proceedings
    
	
Schedule   5.01(h)
    	
–
    	
Affiliate   Transactions
    
	
 
    	
 
    	
 
    
	
EXHIBITS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
–
    	
Form of   Notice of Borrowing
    
	
Exhibit B
    	
–
    	
Form of   Assignment and Assumption
    

 

iii

 

364-DAY BRIDGE CREDIT AGREEMENT

 

This 364-Day Bridge Credit Agreement (this “Agreement”) dated as of June 25, 2019 (Local Time) is among AbbVie Inc., a Delaware corporation (the “Borrower”), the Lenders (as defined below) that are parties hereto and Morgan Stanley Senior Funding, Inc., as administrative agent (in such capacity, or any successor thereto appointed pursuant to Article VII, the “Administrative Agent”) for the Lenders.

 

RECITALS

 

WHEREAS, the Borrower intends to directly or indirectly acquire pursuant to a Scheme or a Takeover Offer, as applicable, all of the outstanding shares of Allergan which are subject to the Scheme or Takeover Offer (and, in the case of a Takeover Offer, together with the Squeeze Out Procedures) (as the case may be) for cash consideration and newly issued shares of the Borrower (the “Allergan Acquisition”).

 

WHEREAS, in connection with the Allergan Acquisition, the Borrower intends to finance the payment of the cash component of the Scheme Consideration, the repayment of the Refinanced Existing Allergan Indebtedness and the payment of fees, premiums, costs and expenses (including the fees, costs and expenses payable hereunder) related to the Transactions from the following sources: (i) (x) the issuance by the Borrower or its Subsidiaries of unsecured debt securities in a public or private offering (the “New Senior Notes”) and the proceeds from borrowings by the Borrower under a senior unsecured term loan facility subject to conditions precedent to funding that are no less favorable to the Borrower than the conditions set forth herein to the funding of the Bridge Facility (the “New Term Loan Facility” and, together with the New Senior Notes, the “New Permanent Financing”) or (y) to the extent the New Permanent Financing is not consummated at or prior to the time the Allergan Acquisition is consummated, the proceeds of up to $38,000,000,000 from the borrowings under the Bridge Facility and (ii) cash on hand at the Borrower and the Consolidated Group.

 

WHEREAS, in connection with the Allergan Acquisition, the Borrower intends to consummate one or more debt exchanges to exchange certain Existing Allergan Indebtedness for additional unsecured debt securities issued by the Borrower or its Subsidiaries.

 

The transactions set forth in the preceding three paragraphs above, together with all related transactions consummated in connection therewith, are collectively referred to as the “Transactions”.

 

WHEREAS, the Lenders have agreed to provide the Bridge Facility subject to the terms and conditions set forth herein.

 

IN CONSIDERATION THEREOF the parties hereto agree as follows:

 

ARTICLE 1
 DEFINITIONS AND ACCOUNTING TERMS

 

Section 1.01.    Certain Defined Terms.

 

As used in this Agreement, including the Recitals above, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

 

“Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition by the Borrower or any of its Subsidiaries of all or 

 

 

substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition by the Borrower or any of its Subsidiaries of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person (other than a Person that is a Subsidiary), or otherwise causing any Person to become a Subsidiary of the Borrower or (c) a merger or consolidation or any other combination by the Borrower or any of its Subsidiaries with another Person (other than a Person that is a Subsidiary) provided that the Borrower (or a Person that succeeds to the Borrower pursuant to Section 5.02(b) in connection with such transaction or series of related transactions) or a Subsidiary of the Borrower (or a Person that becomes a Subsidiary of the Borrower as a result of such transaction) is the surviving entity; provided that any Person that is a Subsidiary at the time of execution of the definitive agreement related to any such transaction or series of related transactions (or, in the case of a tender offer or similar transaction, at the time of filing of the definitive offer document) shall constitute a Subsidiary for purposes of this definition even if in connection with such transaction or series of related transactions, such Person becomes a direct or indirect holding company of the Borrower.

 

“Acquisition Debt” means any Borrowed Debt of the Borrower or any of its Subsidiaries that has been issued or incurred for the purpose of financing, in whole or in part, a Material Acquisition and any related transactions or series of related transactions (including for the purpose of refinancing or replacing all or a portion of any pre-existing Borrowed Debt of the Borrower, any of its Subsidiaries or the Person(s) or assets to be acquired).

 

“Administrative Agent” has the meaning set forth in the preamble hereto.

 

“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule II, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.

 

“Administrative Questionnaire” means an administrative questionnaire in the form supplied by the Administrative Agent.

 

“Advance” means an advance made by a Lender pursuant to its Commitment to the Borrower as part of a Borrowing.

 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person.  For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Stock, by contract or otherwise.

 

“Agent Parties” has the meaning set forth in Section 9.02(d).

 

“Agents” means, collectively, the Administrative Agent, each Lead Arranger and the Syndication Agent.

 

“Agreed Form of Scheme Press Announcement” means the Scheme Press Announcement in substantially final form and in a form agreed by the Borrower and the Administrative Agent prior to the Effective Date.

 

“Agreement” has the meaning set forth in the preamble hereto.

 

“Agreement Currency” has the meaning set forth in Section 9.16.

 

2

 

“Agreement Value” means, with respect to any Hedge Agreement at any date of determination, after taking into account the effect of any legally enforceable netting agreement relating to such Hedge Agreements, (a) for any date on or after the date such Hedge Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such hedge Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Hedge Agreements.

 

“Allergan” means Allergan plc, an Irish public limited company with registered number 527629 having its registered office at Clonshaugh Business & Technology Park, Coolock, Dublin 17 E400, Ireland.

 

“Allergan Acquisition” has the meaning set forth in the recitals hereto.

 

“Allergan Acquisition Related Conditions” has the meaning set forth in Section 2.02.

 

“Allergan Group” means Allergan and its Subsidiaries.

 

“Allergan Shareholders” means the holders of the Allergan Shares.

 

“Allergan Shares” means all of the issued share capital of Allergan.

 

“Anti-Corruption Laws” has the meaning set forth in Section 4.01(s).

 

“Applicable Creditor” has the meaning set forth in Section 9.16.

 

“Applicable Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Applicable Lending Office” or similar concept in its Administrative Questionnaire or in the Assignment and Assumption pursuant to which it became a Lender, or such other office, branch, Subsidiary or affiliate of such Lender as such Lender may from time to time specify to the Borrower and the Administrative Agent.

 

“Applicable Margin” means, as of any date, a percentage per annum determined by reference to the Public Debt Rating in effect on such date as set forth below:

 

	
 
    	
 
    
	
Public Debt Rating
   (S&P/Moody’s)
    	
Applicable   Margin
    
	
Closing   Date through 
   89 days after Closing
   Date
    	
90   days after Closing 
   Date through 179 
   days after Closing 
   Date
    	
180   days after 
   Closing Date through 
   269 days after 
   Closing Date
    	
270   days after 
   Closing Date and 
   thereafter
    
	
Base
   Rate
   Advances
    	
Euro-
   currency 
   Rate 
   Advances
    	
Base
   Rate
   Advances
    	
Euro-
   currency
   Rate 
   Advances
    	
Base
   Rate
   Advances
    	
Euro-
   currency
   Rate
   Advances
    	
Base
   Rate
   Advances
    	
Euro-
   currency
   Rate
   Advances
    
	
Level   1: A+/A1 or above
    	
0.000%
    	
0.750%
    	
0.000%
    	
1.000%
    	
0.250%
    	
1.250%
    	
0.500%
    	
1.500%
    
	
Level   2: Less than Level 1 but at least A/A2
    	
0.000%
    	
0.875%
    	
0.125%
    	
1.125%
    	
0.375%
    	
1.375%
    	
0.625%
    	
1.625%
    

 

3

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Level   3: Less than Level 2 but at least A-/A3
    	
0.000%
    	
1.000%
    	
0.250%
    	
1.250%
    	
0.500%
    	
1.500%
    	
0.750%
    	
1.750%
    
	
Level   4: Less than Level 3 but at least BBB+/Baa1
    	
0.125%
    	
1.125%
    	
0.375%
    	
1.375%
    	
0.625%
    	
1.625%
    	
0.875%
    	
1.875%
    
	
Level   5: Less than Level 4 but at least BBB/Baa2
    	
0.250%
    	
1.250%
    	
0.500%
    	
1.500%
    	
0.750%
    	
1.750%
    	
1.000%
    	
2.000%
    
	
Level   6: Less than Level 5
    	
0.500%
    	
1.500%
    	
0.750%
    	
1.750%
    	
1.000%
    	
2.000%
    	
1.250%
    	
2.250%
    

 

“Applicable Percentage” means, in the case of the commitment fee paid pursuant to Section 2.04(a), as of any date, a percentage per annum determined by reference to the Public Debt Rating in effect on such date as set forth below:

 

	
 
    	
 
    
	

   Public Debt Rating
   (S&P/Moody’s)

    	

   Applicable
   Percentage

    
	
Level   1: A+/A1 or above
    	
0.05%
    
	
Level   2: Less than Level 1 but at least A/A2
    	
0.07%
    
	
Level   3: Less than Level 2 but at least A-/A3
    	
0.09%
    
	
Level   4: Less than Level 3 but at least BBB+/Baa1
    	
0.10%
    
	
Level   5: Less than Level 4 but at least BBB/Baa2
    	
0.125%
    
	
Level   6: Less than Level 5
    	
0.175%
    

 

“Approved Electronic Platform” has the meaning set forth in Section 9.02(c).

 

“Asset Sale” means the sale or other disposition of assets by the Borrower or any other member of the Consolidated Group outside the ordinary course of business (as determined in good faith by the Borrower), including issuances of Equity Interests by the Borrower’s Subsidiaries (excluding (A) asset sales or other dispositions (including issuances of Equity Interests by the Borrower’s Subsidiaries) between or among members of the Consolidated Group, (B) the sale or other disposition of cash and cash equivalents or debt investments and instruments, (C) the sale, exchange or other disposition of accounts receivable in connection with compromise, settlement or collection thereof consistent with past practices, and (D) asset sales and other dispositions (including issuance of Equity Interests by the Borrower’s Subsidiaries), the Net Cash Proceeds of which do not exceed $250,000,000 in any single transaction or related series of transactions or $500,000,000 in the aggregate (and only any amount in excess of such threshold amounts shall constitute Net Cash Proceeds)).

 

“Assignment and Assumption” means an assignment and acceptance entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit B hereto.

 

4

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the Eurocurrency Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that for the purpose of this definition, the Eurocurrency Rate for any day shall be based on the Screen Rate (or if the Screen Rate is not available for such one month Interest Period, the Interpolated Rate) at approximately 11:00 a.m. London time on such day.  Any change in the Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Eurocurrency Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Eurocurrency Rate, respectively.  If the Base Rate is being used as an alternate rate of interest pursuant to Section 2.08 hereof, then the Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.  For the avoidance of doubt, if the Base Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Base Rate Advance” means an Advance denominated in Dollars that bears interest as provided in Section 2.07(a)(i).

 

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Internal Revenue Code or (c) any Persons whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Internal Revenue Code) the assets of any such “employee benefit plan” or “plan”.

 

“Borrowed Debt” means any Debt for money borrowed, including loans, hybrid securities, debt convertible into Equity Interests and any Debt for money borrowed represented by notes, bonds, debentures or other similar evidences of Debt for money borrowed.

 

“Borrower” has the meaning set forth in the preamble hereto.

 

“Borrower Materials” has the meaning set forth in Section 5.01.

 

“Borrowing” means a borrowing consisting of simultaneous Advances of the same Type and, with respect to Eurocurrency Rate Advances, having the same Interest Period, made by each of the Lenders to the Borrower pursuant to Section 2.01.

 

“Bridge Facility” means the Commitments and any Advances made thereunder.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which banks in Ireland or in New York are authorized or required by applicable law to be closed, and if such date relates to any interest rate settings as to a Eurocurrency Rate Advance, any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank eurocurrency market.

 

“Cash Consideration” means the “Cash Consideration” under and as defined in the Transaction Agreement.

 

5

 

“CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency.

 

“Certain Funds Default” means an Event of Default arising from any of the following:

 

(a)        Section 6.01(a) (unless the Event of Default is due solely to an administrative or technical error or is in respect of any amount other than principal or fees);

 

(b)        Section 6.01(c) as it relates to the failure to perform any of the following covenants: Sections 5.01(d)(i) (it being understood that failure to maintain any good standing status or similar status in any jurisdiction shall not constitute a breach of this provision), Section 5.02(a) or Section 5.02(b) (assuming the conditions set forth in clauses (A) and (B) to Section 5.02(b)(iii) have been satisfied);

 

(c)        Section 6.01(e), but excluding, in relation to involuntary proceedings, any Event of Default caused by a frivolous or vexatious (and in either case, lacking in merit) action, proceeding or petition in respect of which no order or decree in respect of such involuntary proceeding shall have been entered; or

 

(d)        Section 6.01(i).

 

“Certain Funds Period” means the period commencing on the Effective Date and ending at the time immediately after a Mandatory Cancellation Event has occurred.

 

“Certain Funds Purposes” means:

 

(i)         where the Allergan Acquisition proceeds by way of a Scheme:

 

(a)        the payment (directly or indirectly) of the cash component of the Scheme Consideration, including by depositing of funds with the exchange agent pursuant to Section 8.1(d) of the Transaction Agreement,

 

(b)        the repayment of the Refinanced Existing Allergan Indebtedness and

 

(c)        the payment of fees, premiums, costs and expenses in respect of the Transactions.

 

(ii)        where the Allergan Acquisition proceeds by way of a Takeover Offer:

 

(a)        payment (directly or indirectly) of the cash consideration as set forth in the Offer Documents and the Squeeze Out Notice;

 

(b)        the repayment of the Refinanced Existing Allergan Indebtedness and

 

(c)        the payment of fees, premiums, costs and expenses in respect of the Transactions.

 

“Certain Funds Representations” means each of the following representations: Sections 4.01(a) (but with respect to good standing, only to the extent a breach would have a Material Adverse Effect), Section 4.01(b)(i), Section 4.01(b)(ii), Section 4.01(b)(iii), Section 4.01(d), Section 4.01(g), Section 4.01(o) (limited to the Borrower), Section 4.01(q) and 4.01(t).

 

“Clean-up Date” has the meaning set forth in Section 6.01.

 

6

 

“Closing Date” means the date on which each of the conditions set forth in Section 3.02 have been satisfied (or waived by the Required Lenders).

 

“Commitment” means as to any Lender, the commitment of such Lender to make an Advance pursuant to Section 2.01, as such commitment may be increased or reduced from time to time pursuant to the terms hereof (including by way of assignment or otherwise).  The initial amount of each Lender’s Commitment is (a) the amount set forth in the column labeled “Commitment” opposite such Lender’s name on Schedule I hereto, or (b) if such Lender has entered into any Assignment and Assumption, the amount set forth for such Lender in the Register maintained by the Administrative Agent pursuant to Section 9.07(d), as such amount may be reduced pursuant to Section 2.05.  As of the Effective Date, the aggregate amount of the Commitments is $38,000,000,000.

 

“Consolidated” refers to the consolidation of accounts in accordance with GAAP.

 

“Consolidated EBITDA” means, for any fiscal period, the Consolidated net income of the Borrower and its Subsidiaries for such period determined in accordance with GAAP plus the following, to the extent deducted in calculating such Consolidated net income: (a) Consolidated Interest Expense, (b) the provision for Federal, state, local and foreign taxes based on income, profits, revenue, business activities, capital (other than capital gain or loss) or similar measures payable by the Borrower and its Subsidiaries in each case, as set forth on the financial statements of the Consolidated Group, (c) depreciation and amortization expense, (d) any extraordinary or unusual charges, expenses or losses, (e) net after-tax losses (including all fees and expenses or charges relating thereto) on sales of assets outside of the ordinary course of business and net after-tax losses from discontinued operations, (f) any net after-tax losses (including all fees and expenses or charges relating thereto) on the retirement of debt, (g) any other nonrecurring or non-cash charges, expenses or losses (including charges, fees and expenses incurred in connection with the Transactions or any issuance of Debt or equity, acquisitions, investments, restructuring activities, asset sales or divestitures permitted hereunder, whether or not successful) (h) minority interest expense, and (i) non-cash stock option expenses, non-cash equity-based compensation and/or non-cash expenses related to stock-based compensation, and minus, to the extent included in calculating such Consolidated net income for such period, the sum of (i) any extraordinary or unusual income or gains, (ii) net after-tax gains (less all fees and expenses or charges relating thereto) on the sales of assets outside of the ordinary course of business and net after-tax gains from discontinued operations (without duplication of any amounts added back in clause (b) of this definition), (iii) any net after-tax gains (less all fees and expenses or charges relating thereto) on the retirement of debt, (iv) any other nonrecurring or non-cash income and (v) minority interest income, all as determined on a Consolidated basis.  In addition, in the event that the Borrower or any of its Subsidiaries acquired or disposed of any Person, business unit or line of business or made any investment during the relevant period (including the Allergan Acquisition), in each case involving the payment or receipt of consideration (including non-cash, contingent and deferred consideration) by the Borrower or any of its Subsidiaries with a fair market value in excess of $5,000,000,000 (as determined by the Borrower in good faith upon the consummation of such acquisition, disposition or investment), Consolidated EBITDA will be determined giving pro forma effect to such acquisition, disposition or investment as if such acquisition, disposition or investment and any related incurrence or repayment of Debt had occurred on the first day of the relevant period, taking into account any cost savings projected to be realized as a result of such acquisition, disposition or investment (x) determined by the Borrower in good faith and reasonably acceptable to the Administrative Agent or (y) to the extent permitted to be included under Regulation S-X of the SEC.

 

“Consolidated Group” means the Borrower and its Subsidiaries.

 

“Consolidated Interest Expense” means, for any fiscal period, the total interest expense of the Borrower and its Subsidiaries on a Consolidated basis determined in accordance with GAAP, including 

 

7

 

the imputed interest component of capitalized lease obligations during such period, and all commissions, discounts and other fees and charges owed with respect to letters of credit, if any, and net costs under Hedge Agreements; provided that if the Borrower or any of its Subsidiaries acquired or disposed of any Person or line of business or made any investment during the relevant period (including for the avoidance of doubt, if applicable, the Transactions and the Allergan Acquisition), Consolidated Interest Expense will be determined giving pro forma effect to any incurrence or repayment of Debt related to such acquisition, disposition or investment as if such incurrence or repayment of Debt had occurred on the first day of the relevant period.

 

“Consolidated Leverage Ratio” has the meaning set forth in Section 5.03(a).

 

“Consolidated Net Assets” means the aggregate amount of assets (less applicable reserves and other properly deductible items) after deducting therefrom all current liabilities, as set forth on the Consolidated balance sheet of the Consolidated Group most recently furnished to the Administrative Agent pursuant to Section 5.01(i)(ii) prior to the time as of which Consolidated Net Assets shall be determined (giving pro forma effect to any acquisition, disposition or investment by the Borrower or any of its Subsidiaries involving the payment or receipt of consideration (including non-cash, contingent and deferred consideration) by the Borrower or any of its Subsidiaries with a fair market value in excess of $5,000,000,000 (as determined by the Borrower in good faith upon the consummation of such acquisition, disposition or investment), and any related incurrence or repayment of Debt, that has occurred since the end of the most recent fiscal quarter included in such balance sheet as if such acquisition, disposition or investment, and any such incurrence or repayment of Debt, had occurred on the last day of such fiscal quarter).

 

“Consolidated Total Debt” means, as of any date of determination, the aggregate principal amount of Borrowed Debt of the Borrower and its Subsidiaries determined on a Consolidated basis as of such date.

 

“Continuing Director” means, with respect to the directors of the Borrower, (a) any director who was a member of the board of directors of the Borrower on the Effective Date and (b) any director who was nominated for election or elected to such board of directors with the approval of the majority of the Continuing Directors who were members of such board of directors at the time of such nomination or election.

 

“Conversion”, “Convert”, or “Converted” each refers to a conversion of Advances of one Type into Advances of the other Type pursuant to Section 2.08 or 2.09.

 

“Court Meeting” means “Court Meeting” under and as defined in the Transaction Agreement.

 

“Court Meeting Resolution” means “Court Meeting Resolution” under and as defined in the Transaction Agreement.

 

“Court Order” means “Court Order” under and as defined in the Transaction Agreement.

 

“Debt” of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than trade payables incurred in the ordinary course of such Person’s business and other than any earn-out obligation until after such obligation becomes due and payable), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such 

 

8

 

agreement in the event of default are limited to repossession or sale of such property), (e) all obligations of such Person as lessee under leases that are or should be, in accordance with GAAP, recorded as capital leases; provided, however, that, all obligations of any Person that were or would be characterized as operating lease obligations in accordance with GAAP on August 31, 2018 (whether or not such operating lease obligations were in effect on such date) shall, if so elected by the Borrower, continue to be accounted for as operating lease obligations (and not a capital lease) for purposes of this Agreement regardless of any change in GAAP following such date that would otherwise require such obligations to be characterized or recharacterized (or a prospective or retroactive basis or otherwise) as capital leases, (f) all obligations, contingent or otherwise, of such Person in respect of acceptances, letters of credit or similar extensions of credit, (g) all obligations of such Person in respect of Hedge Agreements, (h) all Debt of others referred to in clauses (a) through (g) above or clause (i) below directly guaranteed in any manner by such Person, or the payment of which is otherwise provided for by such Person, and (i) all Debt referred to in clauses (a) through (h) above secured by any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt.

 

“Debt Issuance” means the incurrence of Borrowed Debt by the Borrower or any other member of the Consolidated Group (excluding (i) Debt owed to any member of the Consolidated Group, (ii) borrowings under the Existing Credit Agreement and any refinancing thereof in an amount up to $3,000,000,000, (iii) borrowings under any new revolving facility in an amount up to $1,000,000,000, (iv) any ordinary course working capital facilities, cash management, letter of credit, factoring, surety bonds, local credit facilities or lines of credit of Foreign Subsidiaries or overdraft facilities, (v) issuances of commercial paper and refinancings thereof, (vi) purchase money indebtedness or equipment financing incurred in the ordinary course of business, (vii) capital leases incurred in the ordinary course of business, (viii) other Debt to the extent the Net Cash Proceeds of which are utilized or to be utilized to refinance any Borrowed Debt of any Consolidated Group (including, after the Closing Date, any Existing Allergan Indebtedness) to the extent the issuance or incurrence of such Debt occurs within 12 months of the maturity of the applicable Borrowed Debt being refinanced and pay any fees or other amounts in respect thereof (including any prepayment or redemption premiums and accrued interest thereon), (ix) Borrowed Debt issued by the Borrower or any of its Subsidiaries for purpose of exchanging of any Existing Allergan Indebtedness and the payment of fees or other amounts in respect thereof and (x) other Debt (other than the New Permanent Financing) in an outstanding principal amount not to exceed $1,000,000,000 in the aggregate).

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

 

“Default” means any Event of Default or any event that would constitute an Event of Default but for the requirement specified in Article VI that notice be given or time elapse or both; provided that, with respect to Section 6.01(d), no Default shall exist hereunder unless and until an Event of Default has occurred thereunder.

 

“Default Interest” has the meaning set forth in Section 2.07(b).

 

“Defaulting Lender” means, subject to Section 2.18(b), any Lender that (a) has failed to (i) fund all or any portion of its Advances on the date such Advances were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) 

 

9

 

has not been satisfied (other than Section 3.02(g)), or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund an Advance hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower, in each case, in their sole discretion), (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-In Action or (e) breaches Section 3.03 in any respect; provided that for the avoidance of doubt, a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a governmental authority. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (e) above shall be conclusive and binding as to such Lender absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.18(b)) upon delivery of written notice of such determination to the Borrower and each Lender.

 

“Disinterested Director” means, with respect to any Person and transaction, a member of the board of directors of such Person who does not have any material direct or indirect financial interest in or with respect to such transaction.

 

“Dollars” and the “$” sign each means lawful currency of the United States.

 

“Domestic Subsidiary” means any Subsidiary of the Borrower substantially all the property of which is located, or substantially all of the business of which is carried on, within the United States (excluding its territories and possessions and Puerto Rico), provided, however, that the term shall not include any Subsidiary of the Borrower which (i) is engaged principally in the financing of operations outside of the United States or in leasing personal property or financing inventory, receivables or other property or (ii) does not own a Principal Domestic Property.

 

“Domestic Subsidiary Holding Company” means any Subsidiary that is organized under the laws of the United States, any state thereof or the District of Columbia substantially all the assets of which consist of Equity Interests (and/or debt) in one or more Subsidiaries that are controlled foreign corporations, as defined under Section 957 of the Internal Revenue Code.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

10

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Effective Date” means the date on which the conditions set forth in Section 3.01 are satisfied (or waived by the Required Lenders).  The Effective Date of this Agreement is June 25, 2019.

 

“EGM” means “EGM” under and as defined in the Transaction Agreement.

 

“EGM Resolutions” means “EGM Resolutions” under and as defined in the Transaction Agreement.

 

“Eligible Assignee” means any Person that becomes an assignee pursuant to Section 9.07(a) (subject to, to the extent applicable, receiving the necessary consents required under clause (A) of the first proviso to Section 9.07(a)); provided that, during the Certain Funds Period, unless approved by the Borrower and the Administrative Agent, in each case, in their sole discretion, such Person shall also constitute: (a) a Lender; (b) an Affiliate of a Lender; (c) a commercial bank organized under the laws of the United States, or any State thereof, and having total assets in excess of $10,000,000,000; (d) a commercial bank organized under the laws of any other country that is a member of the Organization for Economic Cooperation and Development or has concluded special lending arrangements with the International Monetary Fund associated with its General Arrangements to Borrow, or a political subdivision of any such country, and having total assets in excess of $10,000,000,000, so long as such bank is acting through a branch or agency located in the country in which it is organized or another country that is described in this clause (d); and (e) each Person that is a lender under the Existing Credit Agreement on the date hereof; provided, however, that neither any Defaulting Lender (or Person who would be a Defaulting Lender upon becoming a Lender) nor the Borrower nor any Affiliate of the Borrower or any natural person shall qualify as an Eligible Assignee.

 

“Embargoed Person” means (a) any country or territory that is the target of a sanctions program administered by OFAC or (b) any Person that (i) is or is owned or controlled by one or more Persons publicly identified on the most current list of “Specially Designated Nationals and Blocked Persons” published by OFAC, (ii) is the target of a sanctions program or sanctions list (A) administered by OFAC, the European Union or Her Majesty’s Treasury, or (B) under the International Emergency Economic Powers Act, the Trading with the Enemy Act, the Iran Sanctions Act, the Comprehensive Iran Sanctions, Accountability and Divestment Act, and the Iran Threat Reduction and Syria Human Rights Act, each as amended, section 1245 of the National Defense Authorization Act for Fiscal Year 2012 or any Executive Order promulgated pursuant to any of the foregoing ((ii) (A) and (B) collectively, “Sanctions”) or (iii) resides, is organized or chartered, or has a place of business in a country or territory that is the subject of a Sanctions program administered by OFAC that prohibits dealing with the government of such country or territory (unless such Person has an appropriate license to transact business in such country or territory or otherwise is permitted to reside, be organized or chartered or maintain a place of business in such country or territory without violating any Sanctions).

 

“Environmental Action” means any action, suit, demand, demand letter, claim, notice of noncompliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any Environmental Law, Environmental Permit or Hazardous Materials or arising from alleged injury or threat of injury to health, safety or the environment, including, without limitation, (a) by any governmental or regulatory authority for enforcement, cleanup, 

 

11

 

removal, response, remedial or other actions or damages and (b) by any governmental or regulatory authority or any third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief.

 

“Environmental Law” means any federal, state, local or foreign statute, law, ordinance, rule, regulation, code, order, judgment, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including, without limitation, those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials.

 

“Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law.

 

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.

 

“Equity Issuance” means the issuance of any Equity Interests by the Borrower (excluding (A) issuances pursuant to employee stock plans or other benefit or employee incentive arrangements, any non-employee director compensation plan or pursuant to the exercise or vesting of any employee or director stock options, restricted stock, warrants or other equity awards or pursuant to dividend reinvestment programs, (B) issuances to another member of the Consolidated Group, (C) issuances as consideration for the Allergan Acquisition (including as a result of any increase in Cash Consideration after the Effective Date) or any other acquisition and (D) other issuance generating Net Cash Proceeds not to exceed $1,000,000,000 in the aggregate).

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is a member of the Borrower’s controlled group, or under common control with the Borrower, within the meaning of Section 414 of the Internal Revenue Code.

 

“ERISA Event” means:

 

(a)                               (i) the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC, or (ii) the requirements of subsection (1) of Section 4043(b) of ERISA are being met with a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following 30 days;

 

(b)                              the application for a minimum funding waiver with respect to a Plan;

 

(c)                               the provision by the administrator of any Plan of a notice of intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA);

 

(d)                              the cessation of operations at a facility of the Borrower or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA;

 

12

 

(e)                               the withdrawal by the Borrower or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA;

 

(f)                                the conditions for the imposition of a lien under Section 303(k) of ERISA shall have been met with respect to any Plan; or

 

(g)                               the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that could constitute grounds for the termination of, or the appointment of a trustee to administer, a Plan.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

 

“Eurocurrency Liabilities” has the meaning set forth in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time.

 

“Eurocurrency Rate” means, with respect to any Eurocurrency Rate Advance for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the London interbank offered rate (“LIBOR”) as administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters Screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; in each case, the “Screen Rate”) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period multiplied by (b) the Statutory Reserve Rate; provided that if the Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided, further that, if the Screen Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”), then the Eurocurrency Rate shall be the Interpolated Rate at such time; provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Eurocurrency Rate Advance” means an Advance that bears interest as provided in Section 2.07(a)(ii).

 

“Eurocurrency Rate Reserve Percentage” means, with respect to any Lender for any Interest Period for any Eurocurrency Rate Advance, the reserve percentage applicable at any time during such Interest Period under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor thereto) for determining the actual reserve requirement (including, without limitation, any emergency, supplemental or other marginal reserve requirement) for such Lender with respect to liabilities or assets consisting of or including Eurocurrency Liabilities (or with respect to any other category of liabilities that includes deposits by reference to which the interest rate on Eurocurrency Rate Advances is determined) having a term equal to such Interest Period.

 

“Events of Default” has the meaning set forth in Section 6.01.

 

“Excluded Taxes” has the meaning set forth in Section 2.14(a).

 

“Existing Credit Agreement” means the Borrower’s existing Revolving Credit Agreement, dated as of August 31, 2018, among the Borrower, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent.

 

13

 

“Existing Public Notes” means the Borrower’s (i) 2.900% Senior Notes due 2022 in an aggregate principal amount of $3,100,000,000; (ii) 4.400% Senior Notes due 2042 in an aggregate principal amount of $2,6000,000,000; (iii) 2.500% Senior Notes due 2020 in an aggregate principal amount of $3,750,000,000; (iv) 3.200% Senior Notes due 2022 in an aggregate principal amount of $1,000,000,000; (v) 3.600% Senior Notes due 2025 in an aggregate principal amount of $3,750,000,000; (vi) 4.500% Senior Notes due 2035 in an aggregate principal amount of $2,500,000,000; (vii) 4.700% Senior Notes due 2045 in an aggregate principal amount of $2,700,000,000; (viii) 2.300% Senior Notes due 2021 in an aggregate principal amount of $1,800,000,000; (ix) 2.850% Senior Notes due 2023 in an aggregate principal amount of $1,000,000,000; (x) 3.200% Senior Notes due 2026 in an aggregate principal amount of $2,000,000,000; (xi) 4.300% Senior Notes due 2036 in an aggregate principal amount of $1,000,000,000; (xii) 4.450% Senior Notes due 2046 in an aggregate principal amount of $2,000,000,000; (xiii) 0.375% Senior Notes due 2019 in an aggregate principal amount of €1,400,000,000; (xiv) 1.375% Senior Notes due 2024 in an aggregate principal amount of €1,450,000,000; (xv) 2.125% Senior Notes due 2028 in an aggregate principal amount of €750,000,000; (xvi) 3.375% Senior Notes due 2021 in an aggregate principal amount of $1,250,000,000; (xvii) 3.375% Senior Notes due 2021 in an aggregate principal amount of $1,250,000,000; (xviii) 3.750% Senior Notes due 2023 in an aggregate principal amount of $1,250,000,000; (xix) 4.250% Senior Notes due 2028 in an aggregate principal amount of $1,750,000,000; (xx) 4.875% Senior Notes due 2048 in an aggregate principal amount of $1,750,000,000, each as issued under an Indenture, dated as of November 8, 2012 (the “Indenture”) between the Borrower and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented by Supplemental Indenture No. 1, dated as of November 8, 2012, Supplemental Indenture No. 2, dated as of May 14, 2015, Supplemental Indenture No. 3, dated as of May 12, 2016, Supplemental Indenture No. 4, dated as November 17, 2016 and Supplemental Indenture No. 5, dated as September 18, 2018, each between the Borrower and the Trustee.

 

“Existing Allergan Indebtedness” means Debt of Allergan existing on the Closing Date.

 

“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version of such Sections that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any intergovernmental agreements between the United States and any other jurisdiction entered into in connection with the foregoing (including any treaty, law, regulation or other official guidance enacted in any other jurisdiction pursuant to any such intergovernmental agreement).

 

“Federal Funds Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate, provided that if the Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to zero for the purposes of this Agreement.

 

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Fee Start Date” means August 24, 2019.

 

“Foreign Subsidiary” means any Subsidiary of the Borrower that is organized under the laws of a jurisdiction other than one of the fifty states of the United States or the District of Columbia and any Domestic Subsidiary Holding Company.

 

“GAAP” has the meaning set forth in Section 1.03.

 

14

 

“Guarantee Requirements” has the meaning set forth in Section 5.01(n)(i).

 

“Guarantor” and “Guarantors” has the meaning set forth in Section 5.01(n)(i).

 

“Guaranty” and “Guaranties” has the meaning set forth in Section 5.01(n)(i).

 

“Hazardous Materials” means (a) petroleum and petroleum products, byproducts or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as “hazardous” or “toxic” or as a “pollutant” or “contaminant” under any Environmental Law.

 

“Hedge Agreements” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

“High Court” means the High Court of Ireland.

 

“Impacted Interest Period” has the meaning set forth in the definition of “Eurocurrency Rate”.

 

“Indemnified Party” has the meaning set forth in Section 9.04(b).

 

“Indenture” has the meaning set forth in the definition of “Existing Public Notes”.

 

“Information” has the meaning set forth in Section 9.08.

 

“Interest Period” means, for each Eurocurrency Rate Advance comprising part of the same Borrowing, the period commencing on the date of such Eurocurrency Rate Advance or the date of the Conversion of any Base Rate Advance into such Eurocurrency Rate Advance and ending on the last day of the period selected by the Borrower pursuant to the provisions below and, thereafter, with respect to Eurocurrency Rate Advances, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the Borrower pursuant to the provisions below.  The duration of each such Interest Period shall be one, two, three or six months (or, if approved by all Lenders, one week), as the Borrower may, upon written notice received by the Administrative Agent not later than 12:00 noon (Local Time) on the third Business Day prior to the first day of such Interest Period (or in any case at such later time as the Administrative Agent, in its reasonable discretion, may agree to), select; provided, however, that:

 

(a)                               the Borrower may not select any Interest Period that ends after the Maturity Date;

 

(b)                              whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding 

 

15

 

Business Day, provided, however, that, if such extension would cause the last day of such Interest Period to occur in the next succeeding calendar month, the last day of such Interest Period shall occur on the immediately preceding Business Day; and

 

(c)                               whenever the first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding calendar month.

 

“Internal Revenue Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and the rulings issued thereunder.

 

“Interpolated Rate” means, at any time, for any Impacted Interest Period, the rate per annum determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the Screen Rate for the longest period (for which that Screen Rate is available) that is shorter than the Impacted Interest Period and (b) the Screen Rate for the shortest period (for which that Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.

 

“Ireland” means Ireland, excluding Northern Ireland, and the word “Irish” shall be construed accordingly.

 

“Irish Companies Act” means the Companies Act, 2014 of Ireland.

 

“Judgment Currency” has the meaning set forth in Section 9.16.

 

“Lead Arrangers” means Morgan Stanley Senior Funding, Inc. and MUFG Bank, Ltd.

 

“Lenders” means, collectively, (a) each bank, financial institution and other institutional lender listed on the signature pages hereof and (b) each Eligible Assignee that shall become a party hereto pursuant to Section 9.07(a), (b) and (c).

 

“LIBOR” has the meaning set forth in the definition of Eurocurrency Rate.

 

“Lien” means any lien, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property.

 

“Loan Documents” means this Agreement, any Guaranty (if any) and any amendments or notes entered into in connection herewith.

 

“Local Time” means New York City time.

 

“Long Stop Date” means June 25, 2020 (subject to extension to September 25, 2020 in accordance with the definition of “End Date” (as defined in the Transaction Agreement as in effect on the date hereof).

 

“Losses” has the meaning set forth in Section 9.04(b).

 

“Mandatory Cancellation Event” means the occurrence of any of the following conditions or events:

 

16

 

(i)                                  where the Allergan Acquisition proceeds by way of a Scheme:

 

(a)                               the Court Meeting or the EGM shall have been completed and the Court Meeting Resolution or the Required EGM Resolutions, as applicable, shall not have been approved by the requisite majorities;

 

(b)                              the High Court shall decline or refuse to sanction the Scheme, which decision has become final and non-appealable;

 

(c)                               either the Scheme lapses or it is withdrawn, unless the Borrower has elected to convert the Scheme to a Takeover Offer in accordance with Section 3.6 of the Transaction Agreement;

 

(d)                              the Scheme Circular is not dispatched within 28 days of the date of the Scheme Press Announcement (or such later date as the Takeover Panel may permit);

 

(e)                               a Court Order(s) is issued but not filed with the Registrar within 21 calendar days of its issuance; or

 

(f)                                the date which is 15 days after the Scheme Effective Date, or such later date permitted by the Takeover Panel;

 

(ii)                              where the Allergan Acquisition proceeds by way of a Takeover Offer,

 

(a)                               such Takeover Offer lapses, terminates or is withdrawn; or

 

(b)                               the Takeover Offer Document(s) is not dispatched within 28 days (or such longer period permitted by the Takeover Panel) of the date of issue of the Offer Press Announcement;

 

(iii)                          the time at which all payments made or to be made for Certain Funds Purposes have been paid in full in cleared funds; or

 

(iv)                          the Long Stop Date.

 

“Margin Stock” has the meaning provided in Regulation U of the Board of the Federal Reserve System.

 

“Material Acquisition” shall mean any Acquisition involving the payment of consideration (including non-cash, contingent and deferred consideration (including obligations under any purchase price adjustment but excluding earnout or similar payments)) by the Borrower or any of its Subsidiaries with a fair market value in excess of $5,000,000,000 (as determined by the Borrower in good faith upon consummation thereof).

 

“Material Adverse Effect” means a material adverse effect on (a) the financial condition or results of operations of the Consolidated Group, taken as a whole, (b) the rights and remedies of the Administrative Agent and the Lenders under this Agreement, taken as a whole, or (c) the ability of the Borrower to perform its payment obligations under this Agreement.

 

“Maturity Date” means the date that is 364 calendar days following the Closing Date or, if such date is not a Business Day, the immediately preceding Business Day.

 

17

 

“Moody’s” means Moody’s Investors Service, Inc. (or any successor thereof).

 

“Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions.

 

“Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any ERISA Affiliate and employees of at least one Person other than the Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which the Borrower or any ERISA Affiliate could reasonably have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated.

 

“Net Cash Proceeds” means:

 

(a)                               with respect to any sale or other disposition of assets outside the ordinary course of business by the Borrower or any other member of the Consolidated Group, the excess, if any, of (i) the cash received in connection therewith (including any cash received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) payments made to retire any Debt that is secured by such asset and that is required to be repaid in connection with the sale thereof, (B) the fees and expenses incurred by the Consolidated Group in connection therewith, (C) taxes paid or reasonably estimated to be payable by the Consolidated Group in connection with such transaction, (D) the funded escrow established pursuant to the documents governing such dispositions to secure indemnification and purchase price adjustments; provided that any amounts released from escrow shall constitute Net Cash Proceeds; and (E) the amount of reserves established by the Consolidated Group in good faith and pursuant to commercially reasonable practices for adjustment in respect of the sale price of such asset or assets in accordance with GAAP; provided that if the amount of such reserves exceeds the amounts charged against such reserves, then such excess, upon the determination thereof, shall then constitute Net Cash Proceeds; provided, further, that if no Event of Default exists and the Borrower shall deliver to the Administrative Agent a certificate of a Responsible Officer of the Borrower to the Administrative Agent promptly following receipt of any such proceeds setting forth the Consolidated Group’s intention to use any portion of such proceeds in assets useful in the business of the Consolidated Group or to acquire Equity Interests in, or all or substantially all the assets of (or all or substantially all the assets constituting a business unit, division, product line or line of business of), any Person engaged in a business of a type that the Consolidated Group would not be prohibited, pursuant to Section 5.02(c), from conducting, in each case within the Reinvestment Period, such portion of such proceeds shall not constitute Net Cash Proceeds except to the extent not, within the Reinvestment Period, so used;

 

(b)                           with respect to incurrence of Borrowed Debt by the Borrower or any other member of the Consolidated Group, the excess, if any, of (i) cash received by the Consolidated Group in connection with such incurrence, issuance, offering or placement over (ii) the sum of (A) payments made to retire any Debt that is required to be repaid in connection with such issuance, offering or placement (other than the Advances) and (B) the underwriting discounts and commissions and other fees and expenses incurred by the Borrower and its Subsidiaries in connection with such incurrence, issuance, offering or placement; and

 

(c)                               with respect to the issuance of any Equity Interests by the Borrower, the excess of (i) the cash received by the Borrower in connection with such issuance over (ii) the underwriting discounts and commissions and other fees and expenses incurred by the Consolidated Group in connection with such issuance.

 

18

 

“New Permanent Financing” has the meaning set forth in the recitals hereto.

 

“New Senior Notes” has the meaning set forth in the recitals hereto.

 

“New Term Loan Facility” has the meaning set forth in the recitals hereto.

 

“Non-Defaulting Lender” means, at any time, a Lender that is not a Defaulting Lender.

 

“Non-U.S. Lender” means any Lender that is not a U.S. Person.

 

“Notice” has the meaning set forth in Section 9.02(e).

 

“Notice of Borrowing” has the meaning set forth in Section 2.02(a).

 

“Notice of Conversion” has the meaning set forth in Section 2.09.

 

“NPL” means the National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time.

 

“NYFRB” means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any day, the Federal Funds Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. (Local Time) on such day received by the Administrative Agent from a federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates as so determined be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“OFAC” means the U.S. Treasury Department’s Office of Foreign Assets Control.

 

“Offer Conversion Notice” has the meaning given to that term in Section 5.01(k).

 

“Offer Documents” means the Takeover Offer Document and the Offer Press Announcement.

 

“Offer Press Announcement” means the formal press announcement of the Takeover Offer required to be issued in compliance with Rule 2.5 of the Takeover Rules in relation to the Takeover Offer following service of an Offer Conversion Notice.

 

“Other Connection Taxes” means, with respect to any Lender, Taxes imposed as a result of a present or former connection between such Lender and the jurisdiction imposing such Tax (other than connections arising from such Lender’s having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to, or enforced, any Loan Document, or sold or assigned an interest in any Loan Document).

 

“Other Taxes” has the meaning set forth in Section 2.14(b).

 

“Participant Register” has the meaning set forth in Section 9.07(e).

 

19

 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26, 2001.

 

“PBGC” means the Pension Benefit Guaranty Corporation (or any successor thereto).

 

“Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any political subdivision or agency thereof.

 

“Plan” means a Single Employer Plan or a Multiple Employer Plan.

 

“Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.

 

“Pre-Closing Funded Amount” has the meaning set forth in Section 2.02.

 

“Pre-Closing Funding Account” has the meaning set forth in Section 2.02.

 

“Pre-Closing Funding Date” has the meaning set forth in Section 2.02.

 

“Pre-Closing Funding Election” has the meaning set forth in Section 2.02.

 

“Previously Delivered Audited Financials” has the meaning set forth in the definition of “Previously Delivered Financial Statements”.

 

“Previously Delivered Financial Statements” means (a) audited consolidated balance sheets and related statements of (in the case of the Borrower) earnings and (in the case of the Allergan Group) operations, comprehensive income, (in the case of the Borrower) equity and (in the case of the Allergan Group) stockholders’ equity and cash flows for (in the case of the Borrower) the fiscal years ended December 31, 2017 and December 31, 2018 and (in the case of the Allergan Group) the fiscal years ended December 31, 2017 and December 31, 2018 (collectively, the “Previously Delivered Audited Financials”) and (b) unaudited consolidated balance sheets and related statements of (in the case of the Borrower) earnings and (in the case of the Allergan Group) operations, comprehensive income, (in the case of the Borrower) equity and (in the case of the Allergan Group) stockholders’ equity and cash flows for (in the case of the Borrower) the fiscal quarter ended March 31, 2019 and (in the case of the Allergan Group) the fiscal quarter ended March 31, 2019 (collectively, the “Previously Delivered Unaudited Financials”).

 

“Previously Delivered Unaudited Financials” has the meaning set forth in the definition of “Previously Delivered Financial Statements”.

 

“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent).  Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

 

20

 

“Principal Domestic Property” means any building, structure or other facility, together with the land upon which it is erected and fixtures comprising a part thereof, used primarily for manufacturing, processing, research, warehousing or distribution located in the United States (excluding its territories and possessions and Puerto Rico) owned or leased by any member of the Consolidated Group the net book value of which on the date as of which the determination is being made exceeds 2% of Consolidated Net Assets, other than any such building structure or other facility or portion of any thereof (a) which is an air or water pollution control facility financed by obligations issued by a State or local governmental unit or (b) which the Chief Executive Officer, any President, the Chief Financial Officer, the Controller or the Treasurer of the Borrower determines in good faith is not of material importance to the total business conducted, or assets owned, by the Consolidated Group taken as a whole.

 

“Projections” means any projections and any forward looking statements (including statements with respect to booked business) of the Consolidated Group furnished to the Lenders or the Administrative Agent by or on behalf of the Borrower prior to the Closing Date.

 

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

 

“Public Debt Rating” means, as of any date and subject to the provisions of the next succeeding sentence, the lowest rating that has been most recently announced by each of S&P or Moody’s, as the case may be, for any class of non-credit enhanced long-term senior unsecured debt issued by the Borrower.  For purposes of the foregoing: (a) if only one of S&P and Moody’s shall have in effect a Public Debt Rating, the Applicable Percentage and the Applicable Margin shall be determined by reference to the available rating; (b) if neither S&P nor Moody’s shall have in effect a Public Debt Rating, the Applicable Percentage and the Applicable Margin shall be set in accordance with Level 6 under the definition of Applicable Percentage or Applicable Margin, as the case may be; (c) if the ratings established by S&P and Moody’s shall fall within different levels, the Applicable Percentage and the Applicable Margin shall be based upon the higher of such ratings, except that, in the event that the lower of such ratings is more than one level below the higher of such ratings, the Applicable Percentage and the Applicable Margin shall be based upon the level immediately below the higher of such ratings; (d) if any rating established by S&P or Moody’s shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making such change; and (e) if S&P or Moody’s shall change the basis on which ratings are established, each reference to the Public Debt Rating announced by S&P or Moody’s, as the case may be, shall refer to the then equivalent rating by S&P or Moody’s, as the case may be.

 

“Public Lender” has the meaning set forth in Section 9.02(e).

 

“Qualifying Revolving Facility” means a revolving credit facility entered into by the Borrower, all or a portion of the proceeds of which will be used for Certain Funds Purposes and the commitments (or a portion thereof) under which are subject to conditions precedent to funding that are no less favorable to the Borrower than the conditions set forth herein to the funding of the Bridge Facility, as determined by the Borrower in its reasonable discretion.

 

“Qualifying Term Loan Facility” means a term loan facility entered into by the Borrower, the proceeds of which will be used for Certain Funds Purposes and that is subject to conditions precedent to funding that are no less favorable to the Borrower than the conditions set forth herein to the funding of the Bridge Facility, as determined by the Borrower in its reasonable discretion.

 

21

 

“Refinanced Existing Allergan Indebtedness” means that certain Revolving Credit and Guaranty Agreement, dated June 14, 2017, by and among Allergan and certain subsidiaries thereof, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A. as the administrative agent.

 

“Register” has the meaning set forth in Section 9.07(d).

 

“Registrar” means the means the Registrar of Companies in Dublin, Ireland, as defined in Section 2 of the Irish Companies Act.

 

“Reinvestment Period” means, with respect to any Net Cash Proceeds received in connection with any Asset Sale, the period of 9 months following the receipt of such Net Cash Proceeds; provided that, in the event that, during such 9 month period, a member of the Consolidated Group enters into a binding commitment to reinvest any Net Cash Proceeds, the Reinvestment Period with respect to such Net Cash Proceeds shall be the period of 12 months following the receipt of such Net Cash Proceeds.

 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates.

 

“Removal Effective Date” has the meaning set forth in Section 7.06(b).

 

“Required EGM Resolutions” has the meaning under and as defined in the Transaction Agreement.

 

“Required Lenders” means, at any time, Lenders holding more than 50% of the unused Commitments and aggregate outstanding principal amount of Advances at such time; provided that the Commitment of, and the Advances held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

 

“Resignation Effective Date” has the meaning set forth in Section 7.06(a).

 

“Responsible Officer” means, with respect to the Borrower, the Chief Executive Officer, the Chief Financial Officer, the Treasurer, the Controller, any Assistant Treasurer, the Secretary (or the Assistant Secretary) (with respect to the secretary certificate delivered on the Effective Date and any supplement to the incumbency certificate included therein) and the General Counsel of the Borrower (or other executive officer of the Borrower performing similar functions), each officer whose name is set forth on the incumbency certificate delivered to the Administrative Agent on the Effective Date or any update thereto certified by the Secretary, the Assistant Secretary or another Responsible Officer performing similar functions or any other officer of the Borrower responsible for overseeing or reviewing compliance with this Agreement.

 

“Return Date” has the meaning set forth in Section 2.02.

 

“S&P” means Standard & Poor’s Rating Services, a Standard & Poor’s Financial Services LLC business (or any successor thereof).

 

“Sanctions” has the meaning set forth in the definition of “Embargoed Person”.

 

“Scheme” means the “Scheme” under and as defined in the Transaction Agreement.

 

22

 

“Scheme Circular” means the “Scheme Document” under and as defined in the Transaction Agreement.

 

“Scheme Consideration” means “Scheme Consideration” under and as defined in the Transaction Agreement.

 

“Scheme Documents” means the Scheme Press Announcement and the Scheme Circular.

 

“Scheme Effective Date” means the date of delivery to the Registrar of the Court Order together with the minute required by Section 86 of the Irish Companies Act confirming the reduction of capital and such reduction of capital having become effective upon the registration of the Court Order and minute by the Registrar.

 

“Scheme Press Announcement” means the “Rule 2.5 Announcement” under and as defined in the Transaction Agreement, with respect to the Scheme.

 

“Screen Rate” has the meaning set forth in the definition of “Eurocurrency Rate”.

 

“SEC” means the Securities and Exchange Commission.

 

“Significant Subsidiary” means any Subsidiary of the Borrower that constitutes a “significant subsidiary” under Regulation S-X promulgated by the SEC.

 

“Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any ERISA Affiliate and no Person other than the Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which the Borrower or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated.

 

“Specified Allergan Debt” means the floating rate notes due March 2020 in an aggregate principal amount of $500,000,000 and the 3.0% Senior Notes due March 2020 in an aggregate principal amount of $3,500,000,000, in each case issued by Allergan Funding SCS.

 

“Squeeze Out Notice” means a notice given under Chapter 2, Part 9 of the Irish Companies Act given by the Borrower to a Allergan Shareholder who has not accepted the Takeover Offer and implementing the Squeeze Out Procedures.

 

“Squeeze Out Procedures” means the procedures set out in Chapter 2, Part 9 of the Irish Companies Act for the compulsory acquisition of any minority shareholders in an Irish company.

 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentage (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Federal Reserve Board to which the Administrative Agent is subject with respect to the Eurocurrency Rate, for eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D).  Such reserve percentage shall include those imposed pursuant to Regulation D. Eurocurrency Rate Advances shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

23

 

“Subsidiary” means, with respect to any Person, any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of the issued and outstanding Voting Stock to elect a majority of the board of directors (or similar governing body) of such entity (irrespective of whether at the time the Equity Interests of any other class or classes of such entity shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries.  For the avoidance of doubt, no member of the Allergan Group shall constitute a Subsidiary of the Borrower unless and until the occurrence of the Closing Date.

 

“Syndication Agent” means MUFG Bank, Ltd.

 

“Takeover Offer” means the “Takeover Offer” under and as defined in the Transaction Agreement.

 

“Takeover Offer Document” means the “Takeover Offer Document” under and as defined in the Transaction Agreement.

 

“Takeover Panel” means the Irish Takeover Panel.

 

“Takeover Rules” means the Irish Takeover Panel Act 1997, Takeover Rules 2013.

 

“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including back-up withholdings), assessments, fees or other like charges imposed by any governmental authority, including any interest, additions to tax or penalties applicable thereto.

 

“Transaction Agreement” means the Transaction Agreement, dated as of June 25, 2019, by and among the Borrower, Venice Subsidiary LLC, a Delaware limited liability company and Allergan.

 

“Transactions” has the meaning set forth in the recitals hereto.

 

“Trustee” has the meaning set forth in the definition of “Existing Public Notes”.

 

“Type” refers to a Base Rate Advance or a Eurocurrency Rate Advance.

 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Internal Revenue Code.

 

“Unconditional Date” means the date on which the Takeover Offer is declared or becomes unconditional in all respects.

 

“United States” and “U.S.” each means the United States of America.

 

“Voting Stock” means shares of capital stock issued by a corporation, or equivalent interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such a contingency.

 

“Withdrawal Liability” has the meaning set forth in Part I of Subtitle E of Title IV of ERISA.

 

24

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

Section 1.02.              Computation of Time Periods.  In this Agreement, in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”, the word “through” means “through and including” and each of the words “to” and “until” mean “to but excluding”.

 

Section 1.03.              Accounting Terms.  Except as otherwise expressly provided herein, all accounting terms not specifically defined herein shall be construed in accordance with, and all financial data (including financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, generally accepted accounting principles as in effect in the United States from time to time (“GAAP”) (it being agreed that (A) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to (i) any election under Accounting Standards Codification 825-10-25 (previously referred to as Statement of Financial Accounting Standards 159) (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Debt or other liabilities of a member of the Consolidated Group at “fair value”, as defined therein and (ii) any treatment of Debt in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Debt in a reduced or bifurcated manner as described therein, and such Debt shall at all times be valued at the full stated principal amount thereof and (B) notwithstanding anything to the contrary in this Section 1.03 or in any classification under GAAP of any Person, business, assets or operations in respect of which a definitive agreement for the disposition thereof has been entered into as discontinued operations, no pro forma effect shall be given to any discontinued operations (and the Consolidated EBITDA attributable to any such Person, business, assets or operations shall not be excluded for any purposes hereunder) until such disposition shall have been consummated).  If at any time any change in GAAP would affect the calculation of any covenant set forth herein and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such covenant to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such covenant shall continue to be calculated in accordance with GAAP prior to such change and (ii) the Borrower shall provide to the Administrative Agent and the Lenders, concurrently with the delivery of any financial statements or reports with respect to such covenant, statements setting forth a reconciliation between calculations of such covenant made before and after giving effect to such change in GAAP.

 

Section 1.04.              Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any definition of or reference to any statute, rule or regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject

 

25

 

to any restrictions on assignment set forth herein), (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereto and (e) unless indicated otherwise (expressly or as the context may require), each reference in this Agreement to a specific “Article”, “Section” or “clause” shall refer to the corresponding article, section or clause of this Agreement.

 

Section 1.05.              Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

 

ARTICLE 2
 AMOUNTS AND TERMS OF THE ADVANCES

 

Section 2.01.              The Advances.  If a Pre-Closing Funding Election has been made, each Lender severally and not jointly agrees, on the terms and conditions hereinafter set forth, to advance same day funds denominated in Dollars to the Administrative Agent on the Pre-Closing Funding Date in an amount requested by the Borrower and otherwise in accordance with Section 2.02, not to exceed an amount equal to such Lender’s Commitment immediately prior to the making of such advance.  If a Pre-Closing Funding Election has not been made, each Lender severally and not jointly agrees, on the terms and conditions hereinafter set forth, to make an Advance denominated in Dollars to the Borrower on the Closing Date in an amount requested by the Borrower and otherwise in accordance with Section 2.02, not to exceed an amount equal to such Lender’s Commitment immediately prior to the making of such Advance.  Subject to the second to last sentence of Section 2.02(a) below, each Lender’s Commitment shall terminate upon the making of the Advances on the Closing Date.  Advances borrowed under this Section 2.01 and paid or prepaid may not be reborrowed.

 

Section 2.02.              Making the Advances.  (a) (A) Each Borrowing shall be made on notice by the Borrower, given not later than (x) 10:00 a.m. (Local Time) on the third Business Day prior to the proposed date of Borrowing in the case of a Borrowing consisting of Eurocurrency Rate Advances or (y) 10:00 a.m. (Local Time) on the Business Day prior to the proposed date of Borrowing in the case of a Borrowing consisting of Base Rate Advances, to the Administrative Agent, which shall give to each Lender prompt notice thereof by telecopier or other electronic communication.  Each notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone, confirmed immediately in writing, including by telecopier (or other electronic communication) in substantially the form of Exhibit A hereto, specifying therein the requested (i) date of such Borrowing (which shall be a Business Day), (ii) Type of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing, (iv) initial Interest Period for such Advance, if such Borrowing is to consist of Eurocurrency Rate Advances, and (v) account or accounts in which the proceeds of the Borrowing should be credited. Each Lender shall, before 1:00 p.m. (Local Time) on the Closing Date make available for the account of its Applicable Lending Office to the Administrative Agent at the applicable Administrative Agent’s Office, in same day funds, such Lender’s ratable portion of such Borrowing.

 

(B) Notwithstanding the forgoing clause (A), if a Pre-Closing Funding Election has been made, subject solely to the satisfaction (or waiver by the Required Lenders) of the conditions set forth in Section 3.02 other than the Allergan Acquisition Related Conditions, each Lender shall, before 1:00 p.m. (Local Time) one Business Day prior to the proposed date of Borrowing set forth in the Notice of Borrowing (such date the “Pre-Closing Funding Date”), fund into the Pre-Closing Funding Account, in same day funds, such Lender’s ratable portion of such Borrowing (such amounts, the “Pre-Closing Funded

 

26

 

Amount”).  Each Lender authorizes the Administrative Agent to release all amounts deposited by the Lenders into the Pre-Closing Funding Account and make such funds available to the Borrower on the Closing Date subject solely to the satisfaction (or waiver by the Required Lenders) of each of the Allergan Acquisition Related Conditions on the Closing Date, whereupon the Administrative Agent will make such funds available to the Borrower in immediately available funds to the account or accounts specified by the Borrower to the Administrative Agent in the Notice of Borrowing; provided that, (x) the “Pre-Closing Funding Election” shall mean the election by the Borrower to cause the Pre-Closing Funded Amount to be funded to the Pre-Closing Funding Account on the Pre-Closing Funding Date, which election shall be set forth in or accompany a Notice of Borrowing delivered not later than (i) 10:00 a.m. (Local Time) on the third Business Day prior to the Pre-Closing Funding Date (in the case of Eurocurrency Rate Advances) and (ii) 10:00 a.m. (Local Time) on the Business Day prior to the Pre-Closing Funding Date (in the case of Base Rate Advances), (y) each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with each document or other matter required under Section 3.02 to be consented to or approved by or acceptable or satisfactory to a Lender, and to have confirmed satisfaction with Section 3.02(g), in each case unless the Administrative Agent shall have received notice from such Lender prior to the proposed Pre-Closing Funding Date specifying its objection thereto and (z) solely for the purpose of the foregoing authorization, receipt of the certificates pursuant to Section 3.02(d)(B), Section 3.02(e)(i)(B) and Section 3.02(e)(ii)(B) shall be deemed satisfaction of the applicable conditions set forth in Section 3.02(d)(A), Section 3.02(e)(i)(A) or Section 3.02(e)(ii)(A), as applicable, and the Administrative Agent shall be fully allowed to rely on such certificates and shall not be liable for any action taken in reliance on such certificate.  In the event the satisfaction (or waiver by Required Lenders) of the conditions set forth in Section 3.02 does not occur by 12:00 noon (Local Time) on the date that is two Business Days after the Pre-Closing Funding Date (the “Return Date”), the Pre-Closing Funded Amount shall be returned to the respective Lenders within one Business Day of the Return Date, and the Borrower shall simultaneously therewith pay interest accrued thereon from the Pre-Closing Funding Date to the Return Date, together with any amounts due thereon pursuant to Section 2.02(c), calculated as if the return of such funds was a prepayment of Advances in an equal principal amount on the Return Date; provided that, for the avoidance of doubt, to the extent the Pre-Closing Funded Amount has been returned to the Lenders in accordance with this sentence, (i) the Borrower shall not be prohibited from submitting a subsequent Notice of Borrowing in accordance with this Section 2.02 and (ii) the Commitment of each Lender shall be determined without giving effect to such Lender’s funding of the Pre-Closing Funded Amount.  The Borrower agrees that interest shall accrue on the Pre-Closing Funded Amount from and including the Pre-Closing Funding Date as if the Pre-Closing Funded Amount had been advanced to the Borrower as an Advance hereunder; provided, that if a Pre-Closing Funding Election has been made by the Borrower, no commitment fee pursuant to Section 2.05(a) shall accrue on any date on which the Pre-Closing Funded Amount is held in the Pre-Closing Funding Account.  For the avoidance of doubt, (x) the funding of the Pre-Closing Funded Amount shall not constitute an Advance to (or Borrowing by) the Borrower until such amount has been released to the Borrower on the Closing Date in accordance with this Section 2.02(a), and (y) any return of the Pre-Closing Funded Amount to the Lenders in accordance with this Section 2.02(a) shall not constitute a prepayment of an Advance.  For the purpose of this Section 2.02(a), the “Pre-Closing Funding Account” means an account in the name of (i) the Administrative Agent or an Affiliate of the Administrative Agent or (ii) a financial institution (in its capacity as escrow agent) designated by the Administrative Agent and approved by the Borrower, which account has been identified as the “Pre-Closing Funding Account” by notice in writing from the Borrower to the Lenders, and which account shall have terms reasonably satisfactory to the Administrative Agent and the Borrower and “Allergan Acquisition Related Conditions” means the conditions set forth in Sections 3.02(d), (e) and (f).

 

(b)                              Anything in Section 2.02(a) to the contrary notwithstanding, (i) the Borrower may not select Eurocurrency Rate Advances if the obligation of the Lenders to make Eurocurrency Rate Advances shall then be suspended pursuant to Section 2.08 or 2.12 and (ii) the Eurocurrency Rate Advances may

 

27

 

not be outstanding as part of more than twenty separate Borrowings (or such additional Borrowings as may be agreed by the Administrative Agent in its reasonable discretion).

 

(c)                      The Notice of Borrowing shall be revocable (if the closing of the Allergan Acquisition is delayed) and binding on the Borrower.  In the case of any Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurocurrency Rate Advances, the Borrower shall indemnify each Lender against any reasonable loss, cost or expense incurred by such Lender (including amounts pursuant to Section 2.02(a)) as a result of any failure by the Borrower to borrow on the date specified in the Notice of Borrowing (including as a result of the failure of any conditions specified in such notice to be satisfied or waived by the Borrower on such date or the applicable Notice of Borrowing being revoked) or any failure by the Borrower to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any reasonable loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on such date.

 

(d)                              Unless the Administrative Agent shall have received notice from a Lender prior to the time of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the date of such Borrowing in accordance with Section 2.02(a) and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If and to the extent that any Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and the Borrower severally agree to pay or to repay to the Administrative Agent forthwith on demand such corresponding amount and to pay interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is paid or repaid to the Administrative Agent, at (i) in the case of the Borrower, the higher of (A) the interest rate applicable at the time to Advances comprising such Borrowing and (B) the cost of funds incurred by the Administrative Agent in respect of such amount and (ii) in the case of such Lender, the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender shall pay to the Administrative Agent such corresponding principal amount, such amount so paid shall constitute such Lender’s Advance as part of such Borrowing for all purposes of this Agreement.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

(e)                               The failure of any Lender to make the Advance to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of any Borrowing.

 

(f)                                If any Lender makes available to the Administrative Agent funds for any Advance to be made by such Lender as provided herein, and such funds are not made available to the Borrower by the Administrative Agent because the applicable conditions to such Borrowing are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall promptly return such funds (in like funds as received from such Lender) to such Lender, without interest.

 

Section 2.03.              [Reserved].

 

28

 

Section 2.04.              Fees. (a) Commitment Fee.  The Borrower shall pay, or cause to be paid, to the Administrative Agent, for the account of each Lender (other than a Defaulting Lender for such time as such Lender is a Defaulting Lender), a non-refundable commitment fee calculated (in accordance with Section 2.13(c)) on a daily basis at a rate per annum equal to the Applicable Percentage for such date on the aggregate outstanding Commitments of each Lender under the Bridge Facility as of such date, accruing commencing on the Fee Start Date and payable in arrears on the Closing Date (with respect to all amounts accrued to such date) or the earlier termination of the Commitments in full.

 

(b)                     Duration Fee.  The Borrower shall pay, or cause to be paid, for the account of each Lender (other than a Defaulting Lender for such time as such Lender is a Defaulting Lender) if the Advances have not been repaid in full in cash on or prior to:

 

(i)                                  the 90th day after the Closing Date (or if such day is not a Business Day, the next Business Day), a fully earned and non-refundable duration fee equal to 0.50% of the aggregate principal amount of the Advances outstanding on such date to the Administrative Agent for the account of each Lender in accordance with its pro rata share of the Advances;

 

(ii)                              the 180th day after the Closing Date (or if such day is not a Business Day, the next Business Day), a fully earned and non-refundable duration fee equal to 0.75% of the aggregate principal amount of the Advances outstanding on such date to the Administrative Agent for the account of each Lender in accordance with its pro rata share of the Advances; and

 

(iii)                          the 270th day after the Closing Date (or if such day is not a Business Day, the next Business Day), a fully earned and non-refundable duration fee equal to 1.00% of the aggregate principal amount of the Advances outstanding on such date to the Administrative Agent for the account of each Lender in accordance with its pro rata share of Advances.

 

(c)                      Signing Fee. The Borrower shall pay, or cause to be paid, within one Business Day of the Effective Date, all fees and other amounts due and payable by the Borrower to the Administrative Agent, the Lead Arrangers and the Lenders under the Loan Documents or pursuant to any fee or similar letters relating to the Loan Documents, in each case, payable on or prior to the Effective Date and to the extent invoiced by the relevant person on or prior to the Effective Date.

 

(d)                              Additional Fees.  The Borrower shall pay to the Administrative Agent and Lead Arrangers for their account (or that of their applicable Affiliate) such fees as may from time to time be agreed between the Borrower and the Administrative Agent and/or Lead Arrangers.

 

(e)                               Calculation of Commitment.  For the avoidance of doubt, with respect to the definition of “Mandatory Cancellation Event” and the ability thereunder for the Borrower to provide notices and issue documents to facilitate a switch from a Scheme to a Takeover Offer and vice versa, the Commitment shall be deemed to be in effect until the end of the day on which the applicable notice or issuance is required to but does not occur for the purposes of calculating any fees under this Agreement or any fee letters related hereto.

 

Section 2.05.              Termination or Reduction of the Commitments; Mandatory Prepayments.

 

(a)                      Mandatory Termination or Reduction of the Commitments.

 

(i)                                  In the event that the Borrower actually receives any Net Cash Proceeds arising from any Equity Issuance or the Borrower or any other member of the Consolidated Group actually receives any Net Cash Proceeds arising from any Debt

 

29

 

Issuance (other than a Debt Issuance under any committed term loan facility that has reduced the Commitments hereunder pursuant to clause (ii) below) or Asset Sale, in each case during the period commencing on the Effective Date and ending on the Closing Date, then the Commitments then outstanding shall be automatically reduced in an amount equal to 100% of such Net Cash Proceeds on the date of receipt by the Borrower or, as applicable, any other member of the Consolidated Group of such Net Cash Proceeds.  The Borrower shall promptly notify the Administrative Agent of the receipt by the Borrower, or, as applicable, any other member of the Consolidated Group, of such Net Cash Proceeds from any Equity Issuance, Debt Issuance or Asset Sale, and such notice shall be accompanied by a reasonably detailed calculation of the Net Cash Proceeds received.  Notwithstanding the foregoing, mandatory commitment reductions with respect to Net Cash Proceeds from Debt Issuances or Asset Sales received by a Foreign Subsidiary shall not be required if and for so long as the Borrower has determined in good faith that repatriation to the Borrower of such Net Cash Proceeds would have adverse tax consequences (and, in the case of Debt Issuances, such adverse tax consequences are material) or would violate applicable local law or applicable organizational documents of such Subsidiary.

 

(ii)

 

(A)                           In the event that the Borrower or any of its Subsidiaries enters into any committed term loan facility for the purpose of financing the Transactions (including any New Term Loan Facility), automatically upon the effectiveness of the definitive documentation for such term loan facility (including any New Term Loan Facility) and, other than in respect of any New Term Loan Facility, receipt by the Administrative Agent of a notice from the Borrower that such term loan facility constitutes a Qualifying Term Loan Facility, the Commitments then outstanding shall be reduced in an amount equal to 100% of the committed amount under such New Term Loan Facility or other Qualifying Term Loan Facility on the date of receipt by the Administrative Agent of such notice.

 

(B)                            In the event that the Borrower or any of its Subsidiaries enters into any committed revolving facility, the use of proceeds of which includes financing a portion of the Transactions, automatically upon the effectiveness of the definitive documentation for such revolving facility and receipt by the Administrative Agent of a notice from the Borrower that such revolving facility constitutes a Qualifying Revolving Facility, the Commitments then outstanding shall be reduced in an amount equal to 100% of the commitments under such Qualifying Revolving Facility that are subject to conditions precedent to funding that are no less favorable to the Borrower than the conditions set forth herein to the funding of the Bridge Facility (as determined by the Borrower in its reasonable discretion) on the date of receipt by the Administrative Agent of such notice.

 

(iii)                          Unless previously terminated, the Commitments shall automatically terminate at 5:00 p.m. (Local Time) on the earlier of (i) the date on which all of the Certain Funds Purposes have been achieved without the making of any Advances and (ii) the time after a Mandatory Cancellation Event occurs; provided that in any event the Commitments shall terminate in full on the Closing Date after the proceeds of the Advances have been made available to the Borrower.

 

(iv)                          All reductions of the Commitments pursuant to Section 2.05(a)(i), (ii) and (iii) shall be made ratably to the Lenders’ individual Commitments.

 

(b)                     Optional Termination or Reduction of the Commitments.  The Borrower shall have the right, upon at least three Business Days’ prior written notice to the Administrative Agent, to terminate in

 

30

 

whole or permanently reduce ratably in part the unused portions of the Commitments of the Lenders; provided that each partial reduction shall be in an aggregate amount of not less than $25,000,000 and an integral multiple of $1,000,000 in excess thereof; provided, further that any such notice may state that such notice is conditioned upon the effectiveness of other credit facilities or the consummation of a specific transaction, in which case such notice may be revoked by the Borrower if such condition is not satisfied.

 

(c)                               Defaulting Lender Commitment Reductions.  The Borrower may terminate the unused amount of the Commitments of any Lender that is a Defaulting Lender upon not less than three Business Days’ prior written notice to the Administrative Agent (which shall promptly notify such Defaulting Lender), it being understood that notwithstanding such Commitment termination, the provisions of Section 2.18(c) will continue to apply to all amounts thereafter paid by the Borrower for the account of any Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); provided that such termination shall not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent or any Lender may have against such Defaulting Lender.

 

Section 2.06.              Repayment of Advances.  The Borrower shall repay to the Administrative Agent, for the ratable account of the Lenders on the Maturity Date, the aggregate principal amount of all Advances made to the Borrower outstanding on such date.

 

Section 2.07.              Interest on Advances. (a) Scheduled Interest.  The Borrower shall pay interest on the unpaid principal amount of the Advance made to it from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum:

 

(i)                                  Base Rate Advances.  During such periods as such Advance is a Base Rate Advance, a rate per annum equal at all times to the sum of (A) the Base Rate in effect from time to time and (B) the Applicable Margin, payable in arrears quarterly on the last Business Day of each March, June, September and December, during such periods and on the Maturity Date.

 

(ii)                              Eurocurrency Rate Advances.  During such periods as such Advance is a Eurocurrency Rate Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of (A) the Eurocurrency Rate for such Interest Period for such Advance and (B) the Applicable Margin, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such Eurocurrency Rate Advance shall be Converted or paid in full.

 

(b)                     Default Interest.  Upon the occurrence and during the continuance of an Event of Default pursuant to Section 6.01(a), the Administrative Agent shall, upon the request of the Required Lenders, require the Borrower to pay interest (“Default Interest”), which amount shall accrue as of the date of occurrence of the Event of Default, on (i) principal amounts that are overdue, payable in arrears on the dates referred to in Section 2.07(a)(i) or 2.07(a)(ii), at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on such overdue amount pursuant to Section 2.07(a)(i) or 2.07(a)(ii) and (ii) to the fullest extent permitted by law, the amount of any interest, fee or other amount payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on Base Rate Advances pursuant to Section 2.07(a)(i); provided, however, that following acceleration of the Advances pursuant to Section 6.01, Default Interest shall accrue and be payable hereunder whether or not previously required by the Administrative Agent.

 

31

 

(c)                               Additional Interest on Eurocurrency Rate Advances.  The Borrower shall pay to each Lender, so long as and to the extent such Lender shall be required under regulations of the Board of Governors of the Federal Reserve System to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities, additional interest on the unpaid principal amount of the Advance of such Lender made to the Borrower that is a Eurocurrency Rate Advance, from the date of such Advance until such principal amount is paid in full, at an interest rate per annum equal at all times to the remainder obtained by subtracting (a) the Eurocurrency Rate for the applicable Interest Period for such Advance from (b) the rate obtained by dividing such Eurocurrency Rate by a percentage equal to 100% minus the Eurocurrency Rate Reserve Percentage of such Lender for such Interest Period, payable on each date on which interest is payable on such Advance.  Such Lender shall as soon as practicable provide notice to the Administrative Agent and the Borrower of any such additional interest arising in connection with such Advance, which notice shall be conclusive and binding, absent demonstrable error.

 

Section 2.08.              Interest Rate Determination.  (a) The Administrative Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the Administrative Agent for purposes of Section 2.07(a)(i) or 2.07(a)(ii).

 

(b)                     If, prior to the commencement of any Interest Period for any Eurocurrency Rate Advances, (i) the Administrative Agent shall have determined (which determination shall be conclusive and binding absent manifest error) that adequate and reasonable means (including, without limitation, by means of an Interpolated Rate) do not exist for ascertaining the Eurocurrency Rate for Dollars and such Interest Period or (ii) the Required Lenders notify the Administrative Agent that the Eurocurrency Rate for Dollars and such Interest Period for such Advances will not adequately and fairly reflect the cost to the Required Lenders of making, funding or maintaining their respective Eurocurrency Rate Advances in Dollars for such Interest Period, the Administrative Agent shall forthwith so notify the Borrower and the Lenders.  Thereafter, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances causing such suspension no longer exist, any Eurocurrency Rate Advances requested to be made, converted or continued as or into, as applicable, Eurocurrency Rate Advances, in each case, shall (in the case of conversions or continuations, on the last day of the then existing Interest Period) be made, converted or continued as or into, as applicable, Base Rate Advances.

 

(c)                               If the Borrower shall fail to select the duration of any Interest Period for any Eurocurrency Rate Advances made to the Borrower in accordance with the provisions contained in the definition of “Interest Period” in Section 1.01, the Administrative Agent will forthwith so notify the Borrower and the Lenders and such Eurocurrency Rate Advances will automatically, on the last day of the then existing Interest Period therefor, be continued as Eurocurrency Rate Advances with a one month Interest Period.

 

(d)                              [Reserved].

 

(e)                               Upon the occurrence and during the continuance of any Event of Default, (i) each Eurocurrency Rate Advance will automatically, on the last day of the then existing Interest Period therefor, be Converted into a Base Rate Advance (unless the Required Lenders otherwise consent) and (ii) the obligation of the Lenders to make, or to Convert Advances into, Eurocurrency Rate Advances shall be suspended.

 

(f)                                Alternate Rate of Interest.  If at any time the Administrative Agent determines (which determination shall be made by notice to the Borrower and shall be conclusive and binding absent manifest error) that (i) the circumstances set forth in Section 2.08(b)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances set forth in Section 2.08(b)(i) have not arisen but either (w) the supervisor for the administrator of the Screen Rate has made a public statement that the administrator of the Screen Rate is insolvent (and there is no successor administrator

 

32

 

that will continue publication of the Screen Rate), (x) the administrator of the Screen Rate has made a public statement identifying a specific date after which the Screen Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the Screen Rate), (y) the supervisor for the administrator of the Screen Rate has made a public statement identifying a specific date after which the Screen Rate will permanently or indefinitely cease to be published or (z) the supervisor for the administrator of the Screen Rate or a governmental authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which the Screen Rate may no longer be used for determining interest rates for loans, then the Administrative Agent and the Borrower may endeavor to establish an alternate rate of interest to LIBOR that gives due consideration to the then evolving or prevailing market convention for determining a rate of interest for similar syndicated loans in the United States at such time, and may enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable (but for the avoidance of doubt, such related changes shall not include a reduction of the Applicable Margin); provided that, if such alternate rate of interest as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  Notwithstanding anything to the contrary in Section 9.01, in the case of any proposed alternative rate of interest, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five Business Days of the date that a copy of the amendment is provided to the Lenders, a written notice from the Required Lenders stating that such Required Lenders object to such amendment.  Until an alternate rate of interest shall be determined in accordance with this Section 2.08(f) (but, in the case of the circumstances described in clause (ii) of the first sentence of this Section 2.08(f), only to the extent the Screen Rate for the applicable currency and such Interest Period is not available or published at such time on a current basis), (x) any Eurocurrency Rate Advances requested to be made, converted or continued as or into, as applicable, Eurocurrency Rate Advances shall automatically (in the case of conversions or continuations, on the last day of the then existing Interest Period) be made, converted or continued as or into, as applicable, Base Rate Advances and (y) any Notice of Borrowing that requests the making of a Eurocurrency Rate Advance shall be ineffective.

 

Section 2.09.              Optional Conversion of Advances.  The Borrower may on any Business Day, upon notice given to the Administrative Agent not later than 11:00 a.m. (Local Time) on the third Business Day prior to the date of the proposed Conversion (or in the case of a Conversion into Base Rate Advances, the Business Day prior) and subject to the provisions of Sections 2.08 and 2.12, Convert all Advances made to the Borrower of one Type comprising the same Borrowing into Advances of the other Type (such notice, a “Notice of Conversion”); provided, however, that any Conversion of Eurocurrency Rate Advances into Base Rate Advances shall be made only on the last day of an Interest Period for such Eurocurrency Rate Advances, any Conversion of Base Rate Advances into Eurocurrency Rate Advances shall be in an amount not less than the minimum amount specified in Section 2.01 and no Conversion of any Advances shall result in more separate Borrowings than permitted under Section 2.02(b).  Each such notice of a Conversion shall, within the restrictions specified above, specify (i) the date of such Conversion (which shall be a Business Day), (ii) the Advances to be Converted, and (iii) if such Conversion is into Eurocurrency Rate Advances, the duration of the initial Interest Period for each such Advance.  Each Notice of Conversion shall be irrevocable and binding on the Borrower.

 

Section 2.10.              Optional and Mandatory Prepayments of Advances.

 

(a)                               Optional Prepayments.  The Borrower may, upon written notice to the Administrative Agent stating the proposed date and aggregate principal amount of the proposed prepayment, given not later than 11:00 a.m. (Local Time) on the date (which date shall be a Business Day) of such proposed prepayment, in the case of a Borrowing consisting of Base Rate Advances, and not later than 11:00 a.m. (Local Time) at least two Business Days prior to the date of such proposed prepayment, in the case of a

 

33

 

Borrowing consisting of Eurocurrency Rate Advances (or such later time as the Administrative Agent, in its reasonable discretion, may agree to), and if such notice is given, the Borrower shall, prepay the outstanding principal amount of the Advances comprising part of the same Borrowing made to the Borrower in whole or ratably in part, and in the case of any Eurocurrency Rate Advances, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that (i) each partial prepayment shall be in an aggregate principal amount of $10,000,000 or $1,000,000 in excess thereof and (ii) if any prepayment of a Eurocurrency Rate Advance is made on a date other than the last day of an Interest Period for such Eurocurrency Rate Advance, the Borrower shall also pay any amount owing pursuant to Section 9.04(c); and provided, further, that, subject to clause (ii) of the immediately preceding proviso, any such notice may state that such notice is conditioned upon the effectiveness of other credit facilities or the consummation of a specific transaction, in which case such notice may be revoked by the Borrower if such condition is not satisfied.

 

(b)                              Mandatory Prepayments.  In the event that the Borrower actually receives any Net Cash Proceeds arising from any Equity Issuance or the Borrower or any other member of the Consolidated Group actually receives any Net Cash Proceeds arising from any Debt Issuance (other than a Debt Issuance under any committed term loan facility that has reduced the Commitments hereunder pursuant to Section 2.05(a)(ii) above) or Asset Sale, in each case after the Closing Date, then the Borrower shall prepay the Advances in an amount equal to 100% of such Net Cash Proceeds not later than three Business Days following the receipt by the Borrower or any such Subsidiary of such Net Cash Proceeds.  The Borrower shall promptly (and not later than the date of receipt thereof) notify the Administrative Agent of the receipt by the Borrower or, as applicable, any other member of the Consolidated Group, of such Net Cash Proceeds from any Equity Issuance, Debt Issuance or Asset Sale, and such notice shall be accompanied by a reasonably detailed calculation of the Net Cash Proceeds.  Each prepayment of Advances shall be applied ratably and shall be accompanied by accrued interest and fees on the amount prepaid to the date fixed for prepayment, plus, in the case of any Eurocurrency Rate Advances, any amounts due to the Lenders under Section 9.04(c).

 

Notwithstanding the foregoing, mandatory repayments with respect to Net Cash Proceeds from Debt Issuances or Asset Sales received by a Foreign Subsidiary shall not be required if and for so long as the Borrower has determined in good faith that repatriation to the Borrower of such Net Cash Proceeds would have adverse tax consequences (and, in the case of Debt Issuances, such adverse tax consequence is material) or would violate applicable local law or the applicable organizational documents of such Subsidiary.

 

Section 2.11.              Increased Costs.  (a) If, due to either (i) the introduction of or any change in or in the interpretation of any law or regulation or (ii) the compliance with any directive, guideline or request from any central bank or other governmental authority including, without limitation, any agency of the European Union or similar monetary or multinational authority (whether or not having the force of law), in each case after the date hereof (or with respect to any Lender (or the Administrative Agent), if later, the date on which such Lender (or the Administrative Agent) becomes a Lender (or the Administrative Agent)), there shall be any increase in the cost to any Lender or the Administrative Agent of agreeing to make or making, funding or maintaining Advances (excluding for purposes of this Section 2.11 any such increased costs resulting from (i) Taxes as to which such Lender is indemnified under Section 2.14, (ii) Excluded Taxes, or (iii) Other Taxes), then the Borrower shall from time to time, upon demand by such Lender or the Administrative Agent (with a copy of such demand to the Administrative Agent, if applicable), pay to the Administrative Agent for the account of such Lender (or for its own account, if applicable) additional amounts sufficient to compensate such Lender or the Administrative Agent for such increased cost.  A certificate describing such increased costs in reasonable detail delivered to the Borrower shall be conclusive and binding for all purposes, absent demonstrable error.

 

34

 

(b)                     If any Lender reasonably determines that compliance with any law or regulation or any directive, guideline or request from any central bank or other governmental authority including, without limitation, any agency of the European Union or similar monetary or multinational authority (whether or not having the force of law), in each case promulgated or given after the date hereof (or with respect to any Lender, if later, the date on which such Lender becomes a Lender), affects or would affect the amount of capital, insurance or liquidity required or expected to be maintained by such Lender or its Applicable Lending Office or any corporation controlling such Lender and that the amount of such capital, insurance or liquidity is increased by or based upon the existence of such Lender’s commitment to lend hereunder and other commitments of this type, the Borrower shall, from time to time upon demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender, additional amounts sufficient to compensate such Lender or such corporation in the light of such circumstances, to the extent that such Lender reasonably determines such increase in capital, insurance or liquidity to be allocable to the existence of such Lender’s Advances or commitment to lend hereunder.  A certificate as to such amounts submitted to the Borrower and the Administrative Agent by such Lender shall be conclusive and binding for all purposes, absent demonstrable error.

 

(c)                               Notwithstanding anything in this Section 2.11 to the contrary, for purposes of this Section 2.11, (A) the Dodd Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder or in connection therewith or in implementation thereof, and (B) all requests, rules, guidelines and directions promulgated by the Bank for International Settlements or the Basel Committee on Banking Supervision (or any similar or successor agency, or the United States or foreign regulatory authorities, in each case, pursuant to Basel III) shall be deemed to have been enacted following the date hereof (or with respect to any Lender, if later, the date on which such Lender becomes a Lender).  Notwithstanding the foregoing in this Section 2.11, no Lender shall demand compensation pursuant to this Section 2.11(c) unless such Lender is generally making corresponding demands on similarly situated borrowers in comparable credit facilities to which such Lender is a party.

 

Section 2.12.              Illegality.  Notwithstanding any other provision of this Agreement, (a) if any Lender shall notify the Administrative Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority, including without limitation, any agency of the European Union or similar monetary or multinational authority, asserts that it is unlawful, for such Lender or its Applicable Lending Office to perform its obligations hereunder to make Eurocurrency Rate Advances or to fund or maintain Eurocurrency Rate Advances hereunder, (i) each Eurocurrency Rate Advance of such Lender will automatically, upon such notification, be Converted into a Base Rate Advance and (ii) the obligation of such Lender to make Eurocurrency Rate Advances or to Convert Advances into Eurocurrency Rate Advances shall be suspended until the Administrative Agent shall notify the Borrower and such Lender that the circumstances causing such suspension no longer exist and (b) if Lenders constituting the Required Lenders so notify the Administrative Agent, (i) each Eurocurrency Rate Advance of each Lender will automatically, upon such notification, Convert into a Base Rate Advance and (ii) the obligation of each Lender to make Eurocurrency Rate Advances or to Convert Advances into Eurocurrency Rate Advances shall be suspended until the Administrative Agent shall notify the Borrower and each Lender that the circumstances causing such suspension no longer exist.

 

Section 2.13.              Payments and Computations.  (a) The Borrower shall make each payment required to be made by it under this Agreement not later than 12:00 noon (Local Time) on the day when due in Dollars to the Administrative Agent at the applicable Administrative Agent’s Office in same day funds.  The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest or commitment fees or duration fees ratably (other than amounts payable pursuant to Section 2.02(c), 2.07(c), 2.11, 2.14, 2.15 or 9.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount

 

35

 

payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 9.07(c), from and after the effective date specified in such Assignment and Assumption, the Administrative Agent shall make all payments hereunder in respect of the interest assigned thereby to the assignor for amounts which have accrued to but excluding the effective date of such assignment and to the assignee for amounts which have accrued from and after the effective date of such assignment.  All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.

 

(b)                     The Borrower hereby authorizes each Lender, if and to the extent payment owed to such Lender by the Borrower is not made when due hereunder, to charge from time to time against any or all of the Borrower’s accounts with such Lender any amount so due, unless otherwise agreed between the Borrower and such Lender.

 

(c)                               All computations of interest based on the Base Rate (to the extent based on the Prime Rate) shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, and all other computations of interest, and of commitment fees shall be made by the Administrative Agent on the basis of a year of 360 days, in each case, for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or such fees are payable.  Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent demonstrable error.

 

(d)                              Except as otherwise set forth herein, whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or commitment fee, as the case may be; provided, however, that, if such extension would cause payment of interest on or principal of Eurocurrency Rate Advances to be made in the next following calendar month, such payment shall be made on the immediately preceding Business Day.

 

(e)                               Unless the Administrative Agent shall have received written notice from the Borrower prior to the date on which any payment is due to the Lenders hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender.  If and to the extent the Borrower shall not have so made such payment in full to the Administrative Agent, each Lender shall repay to the Administrative Agent, following prompt notice thereof, forthwith on demand such amount distributed to such Lender, together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent, at the NYFRB Rate.

 

Section 2.14.              Taxes.  (a) Any and all payments by or on behalf of the Borrower under any Loan Document shall be made, in accordance with Section 2.13, free and clear of and without deduction for any and all present or future Taxes, including levies, imposts, deductions, charges and withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender and each Agent, (i) taxes imposed on (or measured by) its overall net income (however denominated), franchise taxes, and branch profits taxes, in each case only to the extent imposed by the jurisdiction under the laws of which such Lender or such Agent, as the case may be, is organized or any political subdivision thereof, by the jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof or as a result of a present or former connection between such Lender and the jurisdiction imposing such Tax (other than connections arising from such Lender having executed, delivered, become a party to, performed its obligations under,

 

36

 

received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Advance or Loan Document), (ii) any branch profits Taxes imposed by the United States, (iii) backup withholding Tax imposed by the United States on payments by the Borrower to any Lender, (iv) any Tax that is imposed by the United States by reason of such recipient’s failure to comply with Section 2.14(f) and (v) any taxes imposed under FATCA, including as a result of such recipient’s failure to comply with Section 2.14(f)(iv) (all such excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments under any Loan Document being hereinafter referred to as “Excluded Taxes”).  If the Borrower shall be required by applicable law to deduct any Taxes from or in respect of any sum payable under any Loan Document to any Lender or any Agent, (A) the Borrower shall make such deductions and (B) the Borrower shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law.  If the Borrower shall be required by applicable law to deduct any Taxes other than Excluded Taxes from or in respect of any sum payable under any Loan Document to any Lender or any Agent, the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.14) such Lender or such Agent, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made.

 

(b)                     In addition, without duplication of any other obligation set forth in this Section 2.14, the Borrower agrees to pay any present or future stamp and documentary Taxes and any other excise or property Taxes, charges or similar levies that arise from any payment made by it under any Loan Document or from the execution, delivery or registration of, or performance under, or otherwise with respect to, any Loan Document (hereinafter referred to as “Other Taxes”), except to the extent such Other Taxes are Other Connection Taxes imposed solely as a result of an assignment or the designation of a new Applicable Lending Office.

 

(c)                               Without duplication of any other obligation set forth in this Section 2.14, the Borrower shall indemnify each Lender and each Agent for the full amount of Taxes (other than Excluded Taxes) and Other Taxes (except to the extent such Other Taxes are Other Connection Taxes imposed solely as a result of an assignment or the designation of a new Applicable Lending Office) imposed on or paid by such Lender or such Agent, as the case may be, in respect of Advances made to the Borrower and any liability (including, without limitation, penalties, interest and expenses) arising therefrom or with respect thereto.  This indemnification shall be made within 30 days from the date such Lender or such Agent, as the case may be, makes written demand therefor.

 

(d)                              Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Taxes and without limiting the obligation of the Borrower to do so) and (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.07(e) relating to the maintenance of a Participant Register, in either case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant governmental authority.  A certificate describing in reasonable detail the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (d).

 

(e)                               Within 30 days after the date of any payment of Taxes or Other Taxes for which the Borrower is responsible under this Section 2.14, the Borrower shall furnish to the Administrative Agent,

 

37

 

at its address as specified pursuant to Section 9.02, the original or a certified copy of a receipt evidencing payment thereof.

 

(f)                                Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.14(f)(i), (ii) or (iv) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

Without limiting the generality of the foregoing:

 

(i)                                  any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. Federal backup withholding tax;

 

(ii)                              any Non-U.S. Lender shall, to the extent it is legally entitled to do so, shall deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), but only if such Non-U.S. Lender is legally entitled to do so, whichever of the following is applicable:

 

(A)                           executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E claiming eligibility for benefits of an income tax treaty to which the United States of America is a party;

 

(B)                            executed originals of IRS Form W-8ECI;

 

(C)                            in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Internal Revenue Code, (x) a certificate to the effect that such Non-U.S. Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Internal Revenue Code, (B) a “10-percent shareholder” of either Borrower within the meaning of section 881(c)(3)(B) of the Internal Revenue Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Internal Revenue Code and two (2) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E; or

 

(D)                           to the extent a Non-U.S. Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, a portfolio interest certificate in compliance with

 

38

 

Section 2.13(f)(ii)(C)(1), IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Non-U.S. Lender is a partnership and one or more partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender may provide a certificate in compliance with Section 2.13(f)(ii)(C)(1) on behalf of such partner or partners.

 

In addition, any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

 

(iii)                          any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies, as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. Federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made;

 

(iv)                          if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower or the Administrative Agent to comply with its obligations under FATCA, to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for the purposes of this clause 2.14(f)(iv), “FATCA” shall include any amendments made to FATCA after the date of this Agreement; and

 

(v)                              the Administrative Agent shall provide the Borrower with two duly completed copies of, if it is not a U.S. Person, IRS Form W-8ECI or W-8BEN-E with respect to payments to be received by it as a beneficial owner and IRS Form W-8IMY (together with required accompanying documentation) with respect to payments to be received by it on behalf of the Lenders, and shall update such forms periodically upon the reasonable request of the Borrower.  In the event that the Administrative Agent is a U.S. Person, the Administrative Agent shall provide the Borrower with two duly completed copies of IRS Form W-9.

 

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

 

(g)                               In the event that an additional payment is made under Section 2.14(a) or 2.14(c) for the account of any Lender and such Lender, in its sole discretion exercised in good faith, determines that it has irrevocably received a refund of any Tax paid or payable by it in respect of or calculated with

 

39

 

reference to the deduction or withholding giving rise to such additional payment, such Lender shall, to the extent that it determines that it can do so without prejudice to the retention of the amount of such refund, pay to the Borrower such amount as such Lender shall, in its reasonable discretion exercised in good faith, have determined is attributable to such deduction or withholding and will leave such Lender (after such payment) in no worse position than it would have been had the Borrower not been required to make such deduction or withholding.  Nothing contained in this Section 2.14(g) shall (i) interfere with the right of a Lender to arrange its tax affairs in whatever manner it thinks fit or (ii) oblige any Lender to disclose any information relating to its tax returns, tax affairs or any computations in respect thereof or (iii) require any Lender to take or refrain from taking any action that would prejudice its ability to benefit from any other credits, reliefs, remissions or repayments to which it may be entitled.

 

(h)                              [Reserved].

 

(i)                                  Each party’s obligations under this Section 2.14 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under the Loan Documents.

 

(j)                                  For purposes of this Section 2.14, the term “applicable law” includes FATCA.

 

Section 2.15.              Sharing of Payments, Etc.  Subject to Section 2.18 in the case of a Defaulting Lender, if any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of the Advances owing to it (other than pursuant to Section 2.02(c), 2.07(c), 2.11, 2.14 or 9.04(c)) in excess of its ratable share of payments on account of the Advances obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Advances owing to them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (a) the amount of such Lender’s required repayment to (b) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered.  The Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.15 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of setoff) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation.  The provisions of this Section 2.15 shall not be construed to apply to (A) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement as in effect from time to time or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Advances to any assignee or participant permitted hereunder.

 

Section 2.16.              Use of Proceeds.  The proceeds of the Advances shall be available, and the Borrower agrees that it shall apply such proceeds, solely towards Certain Funds Purposes.

 

Section 2.17.              Evidence of Debt.  (a) The Register maintained by the Administrative Agent pursuant to Section 9.07(d) shall include (i) the date and amount of each Borrowing made hereunder by the Borrower, the Type of Advances comprising such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the terms of each Assignment and Assumption delivered to and accepted by it, (iii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iv) the amount of any sum received by the Administrative Agent from the Borrower hereunder and each Lender’s share thereof.

 

40

 

(b)                     Entries made reasonably and in good faith by the Administrative Agent in the Register pursuant to clause (a) above shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrower to each Lender under this Agreement, absent manifest error; provided, however, that the failure of the Administrative Agent to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit, expand or otherwise affect the obligations of the Borrower under this Agreement.

 

Section 2.18.              Defaulting Lenders.

 

(a)                      Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender (it being understood that the determination of whether a Lender is no longer a Defaulting Lender shall be made as described in Section 2.18(b)):

 

 (i)                              such Defaulting Lender will not be entitled to any fees accruing during such period pursuant to Section 2.04(a);

 

(ii)                              to the fullest extent permitted by applicable law, such Lender will not be entitled to vote in respect of amendments and waivers hereunder, and the Commitment and the outstanding Advances of such Lender hereunder will not be taken into account in determining whether the Required Lenders or all of the Lenders, as required, have approved any such amendment or waiver (and the definition of “Required Lenders” will automatically be deemed modified accordingly for the duration of such period); provided that any such amendment or waiver that would increase or extend the term of the Commitment of such Defaulting Lender, extend the date fixed for the payment of principal or interest owing to such Defaulting Lender hereunder, reduce the principal amount of any obligation owing to such Defaulting Lender, reduce the amount of or the rate or amount of interest on any amount owing to such Defaulting Lender or of any fee payable to such Defaulting Lender hereunder, or alter the terms of this proviso, will require the consent of such Defaulting Lender; and

 

(iii)                          the Borrower may at its sole expense and effort, require such Defaulting Lender to assign and delegate its interests, rights and obligations under this Agreement pursuant to Section 9.07.

 

(b)                     If the Borrower and the Administrative Agent agree in writing in their discretion that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, such Lender will cease to be a Defaulting Lender and will be a Non-Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender’s having been a Defaulting Lender.

 

(c)                               Any payment of principal, interest, fees or other amounts received by the Administrative Agent hereunder for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 6.01 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.05 shall be applied at such time or times as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Advance in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this

 

41

 

Agreement, as reasonably determined by the Administrative Agent; third, as the Borrower may request, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Advances under this Agreement; fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or otherwise pursuant to this Section 2.18(c) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

 

Section 2.19.              Mitigation.  (a) Each Lender shall promptly notify the Borrower and the Administrative Agent of any event of which it has knowledge that will result in, and will use reasonable commercial efforts available to it (and not, in such Lender’s good faith judgment, otherwise disadvantageous to such Lender) to mitigate or avoid, (i) any obligation by the Borrower to pay any amount pursuant to Section 2.11 or 2.14 or (ii) the occurrence of any circumstance described in Section 2.12 (and, if any Lender has given notice of any such event described in clause (i) or (ii) above and thereafter such event ceases to exist, such Lender shall promptly so notify the Borrower and the Administrative Agent).  In furtherance of the foregoing, each Lender will designate a different funding office if such designation will avoid (or reduce the cost to the Borrower of) any event described in clause (i) or (ii) of the preceding sentence and such designation will not, in such Lender’s good faith judgment, be otherwise disadvantageous to such Lender.

 

(b)                     Notwithstanding any other provision of this Agreement, if any Lender fails to notify the Borrower of any event or circumstance which will entitle such Lender to compensation pursuant to Section 2.11 within 180 days after such Lender obtains knowledge of such event or circumstance, then such Lender shall not be entitled to compensation from the Borrower for any amount arising prior to the date which is 180 days before the date on which such Lender notifies the Borrower of such event or circumstance.

 

ARTICLE 3
 CONDITIONS TO EFFECTIVENESS AND LENDING; CERTAIN FUNDS PERIOD

 

Section 3.01.              Conditions Precedent to Effective Date.  This Agreement shall become effective on and as of the first date on which the following conditions precedent have been satisfied (with the Administrative Agent acting reasonably in assessing whether the conditions precedent have been satisfied) (or waived by the Required Lenders):

 

(a)                               The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement and the other Loan Documents signed on behalf of such party or (ii) written evidence reasonably satisfactory to the Administrative Agent (which may include .pdf or facsimile transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

 

(b)                              [Reserved.]

 

(c)                               [Reserved.]

 

42

 

(d)                              The Administrative Agent shall have received on or before the Effective Date, one or more certificates of the Borrower signed by a Responsible Officer:

 

  (i)                          Certifying that no Default or Event of Default shall have occurred or would occur and be continuing on the Effective Date;

 

 (ii)                          Certifying that the representations and warranties contained in Article 4 are true and correct in all material respects on and as of the Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except where such representations and warranties expressly relate to the Closing Date, in which case such representations and warranties shall not be required to be made on the Effective Date); and

 

(iii)                          Enclosing:

 

(A)                           Copies of the Borrower’s charter and by-laws, certified in each instance by its Secretary, Assistant Secretary or any other Responsible Officer of the Borrower; and

 

(B)                            Copies of the resolutions or similar authorizing documentation of the governing body of the Borrower authorizing the execution and delivery of the Loan Documents, certified by its Secretary or Assistant Secretary or any other Responsible Officer of the Borrower.

 

(e)                      The Administrative Agent shall have received on or before the Effective Date, each dated on or, as applicable, prior to such date:

 

  (i)                          A good standing certificate or similar certificate dated a date reasonably close to the Effective Date from the jurisdiction of formation of the Borrower;

 

 (ii)                          A customary certificate of the Secretary, Assistant Secretary or another Responsible Officer of the Borrower certifying the names and true signatures of the Borrower’s officers authorized to sign this Agreement and the other documents to be delivered by the Borrower hereunder; and

 

(iii)                          A favorable opinion letter of Kirkland & Ellis LLP in form and substance reasonably satisfactory to the Administrative Agent.  The Borrower hereby requests such counsel to deliver such opinion.

 

(f)         The Administrative Agent shall have received a copy, certified by the Borrower and signed by a Responsible Officer as true and complete, of:

 

  (i)                          the Agreed Form of Scheme Press Announcement; and

 

 (ii)                          the executed Transaction Agreement.

 

(g)        The Administrative Agent shall have received, at least 3 Business Days prior to the Effective Date, so long as requested no less than 10 Business Days prior to the Effective Date, all documentation and other information required by regulatory authorities under applicable “know your

 

43

 

customer” and anti-money laundering rules and regulations, including the Patriot Act, in each case relating to the Borrower.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date in writing promptly upon such conditions precedent being satisfied (or waived by the Required Lenders), and such notice shall be conclusive, binding and final.

 

Section 3.02.              Conditions Precedent to Pre-Closing Funding Date and/or Closing Date.  Subject to Section 2.02, each of the occurrence of the Pre-Closing Funding Date or the Closing Date, as applicable, and the obligation of each Lender to fund its Pre-Closing Funded Amount on the Pre-Closing Funding Date or to make an Advance on the Closing Date, as applicable, is subject to the satisfaction (or waiver by the Required Lenders) of the following conditions:

 

(a)                      The Effective Date shall have occurred (it being understood and agreed that the Effective Date occurred on June 25, 2019 and this condition has been satisfied).

 

(b)                              As of the Closing Date (or, if applicable, the Pre-Closing Funding Date), if the Allergan Acquisition is effected by way of a Scheme, the Administrative Agent shall have received:

 

  (i)                          a certificate of the Borrower signed by a Responsible Officer certifying:

 

(1)                              the date on which the Scheme Circular was posted to the shareholders of Allergan;

 

(2)                              the date on which the Scheme Press Announcement was issued; and

 

(3)                              the date on which the High Court has sanctioned the Scheme; and

 

 (ii)                          a copy of the Scheme Circular, certified as a true and correct copy by a Responsible Officer of the Borrower; and

 

(iii)                          a copy of the Scheme Press Announcement, certified as a true and correct copy by a Responsible Officer of the Borrower.

 

(c)                      As of the Closing Date (or, if applicable, the Pre-Closing Funding Date), if the Allergan Acquisition is effected by way of a Takeover Offer, the Administrative Agent shall have received:

 

(i)                                  a certificate of the Borrower signed by a Responsible Officer certifying:

 

(1)                              the date on which the Takeover Offer Document was posted to the shareholders of Allergan; and

 

(2)                              the date on which the Offer Press Announcement was issued; and

 

(ii)                              a copy of the Takeover Offer Document, certified as a true and correct copy by a Responsible Officer of the Borrower; and

 

(iii)                          a copy of the Offer Press Announcement, certified as a true and correct copy by a Responsible Officer of the Borrower.

 

44

 

(d)                     On the Closing Date (A) (x) no Certain Funds Default is continuing or would result from the proposed Borrowing and (y) the Certain Funds Representations are true and correct (or, if a Certain Funds Representation does not include a materiality concept, true and correct in all material respects) as of such date and (B) the Administrative Agent shall have received a certificate of the Borrower signed by a Responsible Officer certifying as to the satisfaction of the condition set forth in the foregoing clause (A);

 

(e)                               Where (i)(A) the Allergan Acquisition is effected by way of a Scheme, the Allergan Acquisition shall have been, or substantially concurrently with the occurrence of the Closing Date shall be consummated in all material respects in accordance with the terms and conditions of both the Transaction Agreement and the Scheme Documents (it being understood that substantially concurrently shall permit the payment of cash component of the Scheme Consideration being made within 14 days after the Scheme Effective Date) without giving effect to any amendment to the Scheme Documents or waiver thereof (except as permitted by Section 5.01(j)(i)) and (B) the Administrative Agent shall have received a certificate of the Borrower signed by a Responsible Officer certifying (1) as to the satisfaction of the condition set forth in the preceding clause (i)(A) and (2) attaching a copy of the Court Order, a copy of the Required EGM Resolutions, minute required by Section 86 of the Irish Companies Act to be filed with the Companies Registration Office and the Certificate of Registration in relation to the reduction in share capital involved in the Scheme, in each case, certified as a true and correct copy received from Allergan or (ii)(A) the Allergan Acquisition is effected by way of a Takeover Offer, the Takeover Offer has been, or substantially concurrently with the occurrence of the Closing Date shall be consummated in all material respects in accordance with the terms and conditions of the Transaction Agreement and the Takeover Offer Document and shall have become unconditional in all respects in accordance with the terms of the Transaction Agreement and the Takeover Offer Document (it being understood that substantially concurrently shall permit the payment of cash consideration for the tendered Allergan Shares being made within 14 days of the Unconditional Date) without giving effect to any amendment to the Takeover Offer Document or waiver thereof (except as permitted by Section 5.01(k)(i)) and (B) the Administrative Agent shall have received a certificate of the Borrower signed by a Responsible Officer certifying as to the satisfaction of the condition set forth in the preceding clause (ii)(A).

 

(f)                                All fees and other amounts then due and payable by the Borrower to the Administrative Agent, the Lead Arrangers and the Lenders under the Loan Documents or pursuant to any fee or similar letters relating to the Loan Documents shall be paid, to the extent invoiced by the relevant person at least three Business Days prior to the Pre-Closing Funding Date or the Closing Date, as applicable.

 

(g)                               As of the Pre-Closing Funding Date or the Closing Date, as applicable, solely with respect to the applicable Lender (without affecting the condition to any other Lender’s funding obligation hereunder), there shall not be in effect any applicable law or order in any jurisdiction of competent authority that permanently enjoins, prevents or prohibits the performance of its funding obligation under Section 2.01 (and the Lender agrees that it shall use commercially reasonable efforts to assign its Commitments to an Affiliate of such Lender that is not subject to such enjoinment, prevention or prohibition (to the extent not, in such Lender’s good faith judgment, otherwise disadvantageous to such Lender)).

 

(h)                              The Administrative Agent shall have received a Notice of Borrowing in accordance with Section 2.02.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date as soon as practicable upon its occurrence, and such notice shall be conclusive, binding and final.

 

Section 3.03.              Actions by Lenders During the Certain Funds Period.

 

45

 

During the Certain Funds Period and notwithstanding (i) any provision to the contrary in the Loan Documents or (ii) that any condition set out in Section 3.01 may subsequently be determined to not have been satisfied or any representation or warranty given on the Effective Date was incorrect in any respect, none of the Lenders nor the Agents shall, unless a Certain Funds Default has occurred and is continuing or would result from a proposed Borrowing, be entitled to:

 

  (i)                          cancel any of its Commitments;

 

 (ii)                          (x) rescind, terminate, repudiate, claim invalidity of or cancel the Loan Documents or the Commitments, (y) exercise any similar right or remedy or (z) make or enforce any claim under the Loan Documents it may have to the extent, in this clause (z), to do so would prevent, delay, limit or adversely impact the making of an Advance for Certain Funds Purposes;

 

(iii)                          refuse to participate in the making of an Advance (or the funding of its Pre-Closing Funded Amount on the Pre-Closing Funding Date, if applicable) for Certain Funds Purposes unless the applicable conditions set forth in Section 3.02 have not been satisfied (or waived by the Required Lenders) as of the applicable date;

 

(iv)                          exercise any right of set-off or counterclaim in respect of an Advance (or the funding of its Pre-Closing Funded Amount on the Pre-Closing Funding Date, if applicable) to the extent to do so would prevent, delay, limit or adversely impact the making of an Advance for Certain Funds Purposes; or

 

 (v)                          cancel, accelerate or cause repayment or prepayment of any amounts owing under any Loan Document;

 

provided that immediately upon the expiry of the Certain Funds Period, but subject to any limitations set forth herein, including with respect to the Borrower’s remedies prior to the Clean-up Date, all such rights, remedies and entitlements shall be available to the Lenders and the Agents notwithstanding that they may not have been used or been available for use during the Certain Funds Period.

 

ARTICLE 4
 REPRESENTATIONS AND WARRANTIES

 

Section 4.01.              Representations and Warranties.  The Borrower represents and warrants on the Effective Date and on the Closing Date, respectively, as follows:

 

(a)                      The Borrower is duly organized, validly existing and in good standing (to the extent that such concept exists) under the laws of its jurisdiction of organization.

 

(b)                              The execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents to which it is a party, (i) are within the Borrower’s organizational powers, (ii) have been duly authorized or ratified by all necessary organizational action of the Borrower and (iii) do not contravene (A) the Borrower’s charter or by-laws or (B) any law, regulation or contractual restriction binding on or affecting the Borrower, except, in the case of clause (iii)(B), as would not be reasonably expected to have a Material Adverse Effect.

 

(c)                               No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Borrower of this Agreement and the consummation of the transactions contemplated hereby.

 

46

 

(d)        This Agreement and the other Loan Documents have been duly executed and delivered by the Borrower.  This Agreement and the other Loan Documents are legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with its terms, except as affected by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and general principles of equity (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

(e)        Each of the Previously Delivered Financial Statements (to the Borrower’s knowledge as of the Effective Date with respect to the financial statements of Allergan) present fairly, in all material respects, the consolidated financial position and results of operations and cash flows of the Borrower and Allergan, as applicable, and their respective Consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, except as may be indicated in the notes thereto and subject to year-end audit adjustments and the absence of footnotes in the case of unaudited financial statements.

 

(f)        There is no action, suit, investigation, litigation or proceeding (including, without limitation, any Environmental Action), affecting the Consolidated Group pending or, to the knowledge of the Borrower, threatened before any court, governmental agency or arbitrator that would reasonably be expected to be adversely determined, and if so determined, (i) would reasonably be expected to have a Material Adverse Effect (other than the litigations disclosed pursuant to the Borrower’s Form 10-K for the fiscal year ended December 31, 2018, any litigations disclosed on Schedule 4.01(f)) and, in the case of the representation and warranty to be made on the Closing Date, the litigations disclosed pursuant to Allergan’s Form 10-K for the fiscal year ended December 31, 2018) or (ii) would adversely affect the legality, validity and enforceability of any material provision of this Agreement in any material respect.

 

(g)        Immediately following the application of the proceeds of the Advances on the Closing Date, not more than 25% of the value of the assets of the Borrower will be Margin Stock.

 

(h)

 

(i)         All written information (other than the Projections) concerning the Borrower, Allergan and their Subsidiaries and the transactions contemplated hereby or otherwise prepared by or on behalf of the Borrower and its Subsidiaries and furnished by such Persons to the Agents or the Lenders prior to the Effective Date in connection with the negotiation of, or pursuant to the terms of, this Agreement, when taken as a whole (and with respect to information regarding the Allergan Group, to the Borrower’s knowledge as of the Effective Date), was true and correct in all material respects as of the date when furnished by such Person to the Agents or the Lenders and did not, taken as a whole, when so furnished contain any untrue statement of a material fact as of any such date or omit to state a material fact necessary in order to make the statements contained therein, taken as a whole, not materially misleading in light of the circumstances under which such statements were made.  The Projections and estimates and information of a general economic nature prepared by or on behalf of the Borrower or its Subsidiaries and that have been furnished by such Person to any Lenders or the Administrative Agent prior to the Effective Date in connection with the transactions contemplated hereby were prepared in good faith based upon assumptions believed by such Person to be reasonable as of the date of such Projections (it being understood that actual results may vary materially from the Projections).

 

(ii)        Since December 31, 2018, except to the extent disclosed in any Annual Report on Form 10-K, Quarterly Report on Form 10-Q or Current Report on Form 8-K, in each case filed by the Borrower with the Securities and Exchange Commission after such date and on or prior to the Effective Date, there has not occurred any event or condition that has had or would be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

47

 

(i)      No ERISA Event has occurred or is reasonably expected to occur with respect to any Plan which would reasonably be expected to have a Material Adverse Effect.

 

(j)         As of the last annual actuarial valuation date prior to the Effective Date, the Borrower’s Pension Plan was not in at-risk status (as defined in Section 430(i)(4) of the Internal Revenue Code) and no other Plan was in at-risk status (as defined in Section 430(i)(4) of the Internal Revenue Code), and since such annual actuarial valuation date there has been no material adverse change in the funding status of any Plan that would reasonably be expected to cause such Plan to be in at-risk status (as defined in Section 430(i)(4) of the Internal Revenue Code).

 

(k)        Neither the Borrower nor any ERISA Affiliate (i) is reasonably expected to incur any Withdrawal Liability to any Multiemployer Plan or has incurred any such Withdrawal Liability that has not been satisfied in full or (ii) has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent (within the meaning of Section 4245 of ERISA) or has been determined to be in “endangered” or “critical” status (within the meaning of Section 432 of the Internal Revenue Code or Section 305 of ERISA).

 

(l)         (i) The operations and properties of the Consolidated Group comply in all respects with all applicable Environmental Laws and Environmental Permits except to the extent that the failure to so comply, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; (ii) all past non-compliance with such Environmental Laws and Environmental Permits has been resolved without any ongoing obligations or costs except to the extent that such non-compliance, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; and (iii) no circumstances exist that would be reasonably expected to (A) form the basis of an Environmental Action against a member of the Consolidated Group or any of its properties that, either individually or in the aggregate, would have a Material Adverse Effect or (B) cause any such property to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law that, either individually or in the aggregate, would have a Material Adverse Effect.

 

(m)       (i) None of the properties currently or formerly owned or operated by a member of the Consolidated Group is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or, to the best knowledge of the Borrower, is adjacent to any such property other than such properties of a member of the Consolidated Group that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; (ii) there are no, and never have been any, underground or aboveground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed of on any property currently owned or operated by any member of the Consolidated Group or, to the best knowledge of the Borrower, on any property formerly owned or operated by a member of the Consolidated Group that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect; (iii) there is no asbestos or asbestos-containing material on any property currently owned or operated by a member of the Consolidated Group that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect; and (iv) Hazardous Materials have not been released, discharged or disposed of on any property currently or formerly owned or operated by a member of the Consolidated Group or, to the best knowledge of the Borrower, on any adjoining property that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

(n)        No member of the Consolidated Group is undertaking, and no member of the Consolidated Group has completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or 

 

48

 

pursuant to the order of any governmental or regulatory authority or the requirements of any Environmental Law that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect; and all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by a member of the Consolidated Group have been disposed of in a manner that, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

(o)        No member of the Consolidated Group is an “investment company”, or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company” (each as defined in the Investment Company Act of 1940, as amended).

 

(p)        The Advances and all related obligations of the Borrower under this Agreement rank pari passu with all other unsecured obligations of the Borrower that are not, by their terms, expressly subordinate to the obligations of the Borrower hereunder.

 

(q)        The proceeds of the Advances will be used in accordance with Section 2.16.

 

(r)        No member of the Consolidated Group or any of their respective officers or directors (a) have violated or is in violation of, in any material respects, or has engaged in any conduct or dealings that would be sanctionable under any applicable material anti- money laundering law or any Sanctions or (b) is an Embargoed Person; provided that if any member of the Consolidated Group (other than the Borrower) becomes an Embargoed Person pursuant to clause (b)(iii) of the definition thereof as a result of a country or territory becoming subject to any applicable Sanctions program after the Effective Date, such Person shall not be an Embargoed Person so long as (x) the Borrower is taking reasonable steps to either obtain an appropriate license for transacting business in such country or territory or to cause such Person to no longer reside, be organized or chartered or have a place of business in such country or territory and (y) such Person’s residing, being organized or chartered or having a place of business in such country or territory would not be reasonably expected to have a Material Adverse Effect.  The Consolidated Group have adopted and maintain policies and procedures designed to ensure compliance and are reasonably expected to continue to ensure compliance with Sanctions.

 

(s)        No member of the Consolidated Group is in violation, in any material respects, of any applicable law, relating to anti-corruption (including the FCPA and the United Kingdom Bribery Act of 2010) (“Anti-Corruption Laws”) or counter-terrorism (including United States Executive Order No. 13224 on Terrorist Financing, effective September 24, 2011, the USA PATRIOT ACT, the United Kingdom Terrorism Act of 2000, the United Kingdom Anti-Terrorism, Crime and Security Act of 2011, the United Kingdom Terrorism (United Nations Measures) Order of 2006, the United Kingdom Terrorism (United Nations Measures) Order of 2009 and the United Kingdom Terrorist Asset-Freezing etc.  Act of 2010).  The Consolidated Group have adopted and maintain policies and procedures designed to ensure compliance and are reasonably expected to continue to ensure compliance with Anti-Corruption Laws.

 

(t)         The Borrower (a) will not use the proceeds of any Advances, and (b) will ensure and will cause each other member of the Consolidated Group to ensure, and, to their knowledge, their respective officers, employees, directors and agents (in their capacity as officers, employees, directors or agents, respectively, of the Borrower or another member of the Consolidated Group), will ensure, that the proceeds of any Advances will not be used by such Persons, in each case of clause (a) and (b), (i) to fund any activities or business of or with any Embargoed Person, or in any country or territory, that at the time of such funding is the target of any Sanctions, (ii) in any other manner that would result in a violation of any Sanctions by the Agents, Lenders, the Borrower or any member of the Consolidated Group or (iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws.

 

49

 

(u)        As of the Closing Date, (a) the release of the Scheme Press Announcement (if the Allergan Acquisition is consummated by way of a Scheme), and the posting of the Scheme Documents (if the Allergan Acquisition is consummated by way of a Scheme) or the Takeover Offer Document (if the Allergan Acquisition is consummated by way of a Takeover Offer), as applicable, has been duly authorized or ratified by the Borrower and (b) each of the obligations of the Borrower under the Takeover Offer Document or Scheme Document (as applicable) constitutes the legal, valid and binding obligation of the Borrower, except as may be limited by (i) bankruptcy, insolvency, examination or other similar laws affecting the rights and remedies of creditors generally and (ii) general principals of equity.

 

(v)        As of the Closing Date, (a) if the Allergan Acquisition is consummated by way of a Scheme, the Scheme Documents, taken as a whole, (i) do not contain any statement by or on behalf of the Borrower which is materially untrue or omit any material information in light of the circumstances in which they are delivered which makes any statement by or on behalf of the Borrower materially misleading and (ii) taken as a whole, contain all the material terms of the Scheme and (b) if the Allergan Acquisition is consummated by way of a Takeover Offer, the Offer Documents, taken as a whole, (i) do not contain any statement by or on behalf of the Borrower which is materially untrue or omit any material information in light of the circumstances in which they are delivered which makes any statement by or on behalf of the Borrower materially misleading and (ii) taken as a whole, contain all the material terms of the Takeover Offer.

 

ARTICLE 5
  COVENANTS

 

Section 5.01.    Affirmative Covenants.  So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will:

 

(a)      Compliance with Laws, Etc.  Comply, and cause each member of the Consolidated Group to comply, with all applicable laws, rules, regulations and orders (such compliance to include, without limitation, compliance with ERISA and Environmental Laws), except to the extent that the failure to so comply, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

(b)        Payment of Taxes, Etc.  Pay and discharge, or cause to be paid and discharged, before the same shall become delinquent, all taxes, assessments and governmental charges levied or imposed upon a member of the Consolidated Group or upon the income, profits or property of a member of the Consolidated Group, in each case except to the extent that (i) the amount, applicability or validity thereof is being contested in good faith and by proper proceedings or (ii) the failure to pay such taxes, assessments and charges, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

(c)        Maintenance of Insurance.  Maintain, and cause each member of the Consolidated Group to maintain, insurance with responsible and reputable insurance companies or associations (or pursuant to self-insurance arrangements) in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which any member of the Consolidated Group operates.

 

(d)        Preservation of Existence, Etc.  Do, or cause to be done, all things necessary to preserve and keep in full force and effect its (i) existence and (ii) rights (charter and statutory) and franchises; provided, however, that the Borrower may consummate any merger or consolidation permitted under Section 5.02(b); and provided, further that the Borrower shall not be required to preserve any such right or franchise if the management of the Borrower shall determine that the preservation thereof is no longer 

 

50

 

desirable in the conduct of the business of the Borrower and that the loss thereof is not disadvantageous in any material respect to the Lenders.

 

(e)        Visitation Rights.  At any reasonable time and from time to time during normal business hours (but not more than once annually if no Event of Default has occurred and is continuing), upon reasonable notice to the Borrower, permit the Administrative Agent or any of the Lenders, or any agents or representatives thereof, to examine and make copies of and abstracts from the records and books of account, and visit the properties, of the Consolidated Group, and to discuss the affairs, finances and accounts of the Consolidated Group with any of the members of the senior treasury staff of the Borrower.

 

(f)        Keeping of Books.  Keep, and cause each of its Subsidiaries to keep, proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and business of the Consolidated Group, in all material respects, and sufficient to permit the preparation of financial statements in accordance with GAAP.

 

(g)        Maintenance of Properties, Etc.  Cause all of its properties that are used or useful in the conduct of its business or the business of any member of the Consolidated Group to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment, and cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Borrower may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times, except, in each case, where the failure to do so would not reasonably be expected to result in a Material Adverse Effect.

 

(h)        Transactions with Affiliates.  Conduct, and cause each member of the Consolidated Group to conduct, all material transactions otherwise permitted under this Agreement with any of their Affiliates (excluding the members of the Consolidated Group) on terms that are fair and reasonable and no less favorable to the Borrower or such Subsidiary than it would obtain in a comparable arm’s-length transaction with a Person not an Affiliate; provided that the provisions of this Section 5.01(h) shall not apply to the following:

 

(i)         the payment of dividends or other distributions (whether in cash, securities or other property) with respect to any Equity Interests in a member of the Consolidated Group, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in such Person or any option, warrant or other right to acquire any such Equity Interests in such Person;

 

(ii)        payment of, or other consideration in respect of, compensation to, the making of loans to and payment of fees and expenses of and indemnities to officers, directors, employees or consultants of a member of the Consolidated Group and payment, or other consideration in respect of, directors’ and officers’ indemnities;

 

(iii)       transactions pursuant to any agreement to which a member of the Consolidated Group is a party on the date hereof and set forth on Schedule 5.01(h);

 

(iv)       transactions with joint ventures for the purchase or sale of property or other assets and services entered into in the ordinary course of business and in a manner consistent with past practices;

 

(v)        transactions ancillary to or in connection with the Transactions;

 

51

 

(vi)       transactions approved by a majority of Disinterested Directors of the Borrower or of the relevant member of the Consolidated Group in good faith; or

 

(vii)      any transaction in respect of which the Borrower delivers to the Administrative Agent (for delivery to the Lenders) a letter addressed to the board of directors of the Borrower (or the board of directors of the relevant member of the Consolidated Group) from an accounting, appraisal or investment banking firm that is (a) in the good faith determination of the Borrower qualified to render such letter and (b) reasonably satisfactory to the Administrative Agent, which letter states that such transaction is on terms that are no less favorable to the Borrower or the relevant member of the Consolidated Group, as applicable, than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate.

 

(i)      Reporting Requirements.  Furnish to the Administrative Agent for further distribution to the Lenders:

 

(i)         as soon as available and in any event within 50 days after the end of each of the first three quarters of each fiscal year of the Borrower, a Consolidated balance sheet of the Consolidated Group as of the end of such quarter and Consolidated statements of earnings and cash flows of the Consolidated Group for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, duly certified by the Chief Financial Officer, the Controller or the Treasurer of the Borrower as having been prepared in accordance with GAAP (subject to the absence of footnotes and year end audit adjustments);

 

(ii)        as soon as available and in any event within 100 days after the end of each fiscal year of the Borrower, a copy of the annual audit report for such year for the Consolidated Group, containing a Consolidated balance sheet of the Consolidated Group as of the end of such fiscal year and Consolidated statements of earnings and cash flows of the Consolidated Group for such fiscal year, in each case accompanied by an unqualified opinion or an opinion reasonably acceptable to the Required Lenders by Ernst & Young LLP or other independent public accountants of recognized national standing;

 

(iii)       simultaneously with each delivery of the financial statements referred to in subclauses (i) and (ii) of this Section 5.01(i), a certificate of the Chief Financial Officer, the Controller or the Treasurer of the Borrower that no Default or Event of Default has occurred and is continuing (or if such event has occurred and is continuing the actions being taken by the Borrower to cure such Default or Event of Default), including, if such covenant is tested at such time, setting forth in reasonable detail the calculations necessary to demonstrate compliance with Section 5.03;

 

(iv)       as soon as possible and in any event within five days after any Responsible Officer of the Borrower shall have obtained actual knowledge of the occurrence of each Default continuing on the date of such statement, a statement of the Chief Financial Officer, the Controller or the Treasurer of the Borrower setting forth details of such Default and the action that the Borrower has taken and proposes to take with respect thereto;

 

(v)        promptly after the sending or filing thereof, copies of all reports that the Borrower sends to any of its securityholders, in their capacity as such, and copies of all reports and registration statements that members of the Consolidated Group file with the SEC or any national securities exchange;

 

52

 

(vi)       promptly after a Responsible Officer of the Borrower obtains knowledge of the commencement thereof, notice of all actions, suits, investigations, litigations and proceedings before any court, governmental agency or arbitrator affecting the Consolidated Group of the type described in Section 4.01(f)(ii); and

 

(vii)      such other information respecting the Consolidated Group as any Lender through the Administrative Agent may from time to time reasonably request.

 

Information required to be delivered pursuant to subsections (i), (ii) and (v) of Section 5.01(i) above shall be deemed to have been delivered if such information, or one or more annual or quarterly or other reports or proxy statements containing such information, shall have been posted and available on the website of the SEC at http://www.sec.gov (and a confirming electronic correspondence is delivered or caused to be delivered by the Borrower to the Administrative Agent providing notice of such availability).  The Borrower hereby acknowledges that the Administrative Agent and/or the Lead Arrangers will make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on DebtDomain or another similar secure electronic system.

 

(j)      Scheme Undertakings.  From the Effective Date to the Closing Date, or, if earlier, until the Borrower has elected to switch to a Takeover Offer pursuant to Section 3.6 of the Transaction Agreement:

 

(i)         Terms of the Scheme.  The Borrower will ensure that (A) any variation of the terms and conditions of the Scheme Circular from the terms and conditions of the Agreed Form of Scheme Press Announcement delivered to the Administrative Agent on the Effective Date and (B) any amendment or waiver of any terms and conditions in the Scheme or any Scheme Document shall not, in each case of clauses (A) and (B), be materially adverse to the interests of the Lenders in their capacities as such, taken as a whole, unless the Administrative Agent (but not any Lender) has approved such variation, amendment or waiver in writing (which approval may be in the form of an email confirmation from the Administrative Agent (or its counsel on its behalf) and shall not be unreasonably withheld, delayed or conditioned) or such variations, amendments or waivers are required by the Takeover Panel, the Takeover Rules, the SEC or the High Court or under any applicable law or regulation; provided that the Borrower shall not increase the Cash Consideration for the Allergan Shares pursuant to the Scheme from the Cash Consideration set forth in the Transaction Agreement as in effect on the Effective Date; except that (x) an increase of Cash Consideration by less than 10% shall be permitted (and any increase in the Cash Consideration for the Allergan Shares by 10% or more shall require the consent of the Administrative Agent (but not any Lender)) and (y) any increase in Cash Consideration is permitted to the extent such increase is funded entirely (directly or indirectly) by the subscription for Equity Interests in the Borrower, or by the incurrence of any Debt that would not constitute a Debt Issuance, or cash on hand at the Borrower or any member of the Consolidated Group and any increase in any non-cash consideration shall not be deemed to be adverse to the interests of the Lenders.

 

(ii)        Dispatch of Scheme Circular. The Borrower will use reasonable endeavors to procure that the Scheme Circular is dispatched to the Allergan shareholders as soon as reasonably practicable after approval by the Takeover Panel and the SEC, to the extent such approval is required.

 

(iii)       Progress of Scheme.  The Borrower will use commercially reasonable efforts to keep the Administrative Agent reasonably informed as to any material developments in relation to the Scheme and promptly on request provide the Administrative Agent with material 

 

53

 

information as to the progress of the Scheme and with any material information (subject to applicable legal and regulatory restrictions on disclosure thereof) in relation to the Scheme and will notify the Administrative Agent promptly following it becoming aware that the Court Order has been issued.

 

(iv)       Implementation of the Scheme.  The Borrower shall:

 

(A)      not take any action (and procure, so far as it is legally able to do so, that no person, acting in concert with it takes any action) which would compel it (or any person acting in concert with it) to make a mandatory offer to shareholders of Allergan under Rule 9 of the Takeover Rules;

 

(B)      comply in all material respects with its obligations under the Scheme and the Scheme Documents; and

 

(C)      comply in all material respects with its obligations under the Irish Companies Act and the Takeover Rules, subject to any applicable waivers by the Takeover Panel.

 

(k)     Takeover Undertakings.  At any time after the Borrower has elected to convert the Scheme to a Takeover Offer pursuant to Section 3.6 of the Transaction Agreement, which election shall be immediately notified to the Administrative Agent by a written notice (“Offer Conversion Notice”):

 

(i)         Terms of the Takeover Offer Document: The Borrower will ensure that (A) any variation of the terms and conditions of the Takeover Offer Document from the terms and conditions of the Agreed Form of Scheme Press Announcement delivered to the Administrative Agent on the Effective Date and (B) any amendment or waiver of any terms and conditions in the Takeover Offer or the Takeover Offer Document shall not, in each case of clauses (A) and (B), be materially adverse to the interests of the Lenders in their capacities as such, taken as a whole, unless the Administrative Agent (but not any Lender) has approved such variation, amendment or waiver  in writing (which approval may be in the form of an email confirmation from the Administrative Agent (or its counsel on its behalf) and shall not be unreasonably withheld, delayed or conditioned) or such variations, amendments or waivers are required by the Takeover Panel, the Takeover Rules, the SEC or the High Court or under any applicable law or regulation; provided that (1) the Borrower shall not increase the cash consideration for the Allergan Shares in a Takeover Offer from the Cash Consideration set forth in the Transaction Agreement as in effect on the Effective Date; except that (x) an increase of cash consideration for the Allergan Shares in a Takeover Offer by less than 10% shall be permitted (and any increase in the cash consideration for the Allergan Shares in a Takeover Offer by 10% or more shall require the consent of the Administrative Agent (but not any Lender)), (y) any increase in cash consideration in a Takeover Offer shall be permitted to the extent such increase is funded entirely (directly or indirectly) by the subscription for Equity Interests in the Borrower, or by the incurrence of any Debt that would not constitute a Debt Issuance or cash on hand at the Borrower or any member of the Consolidated Group and any increase in any non-cash consideration or any decrease in the cash consideration in a Takeover Offer shall not be deemed to be adverse to the interests of the Lenders to the extent, in the case of any decrease, that any such reduction in the cash consideration shall have been allocated to a reduction of the commitments under the Bridge Facility and (2) any change to the Takeover Offer that would reduce the minimum acceptance level of Allergan Shares to which the Takeover Offer relates to less than 80% shall be deemed materially adverse to the interests of the Lenders and the Administrative Agent.

 

54

 

(ii)        Issue of the Takeover Offer Document: The Borrower shall use commercially reasonable efforts to dispatch the Takeover Offer Document as soon as reasonably practicable after approval by the Takeover Panel and the SEC.

 

(iii)       Progress of the Takeover Offer: The Borrower shall keep the Administrative Agent reasonably informed as to the progress of the Takeover Offer and any market purchases of Allergan Shares made, and provide the Administrative Agent with such material information (subject to applicable legal and regulatory restrictions on disclosure thereof) in respect of the Takeover Offer as the Administrative Agent may reasonably request.

 

(iv)       Implementation of the Takeover Offer: The Borrower shall:

 

(A)      not take any action (and procure, so far as it is legally able to do so, that no person acting in concert with it takes any action) which would compel it to make a mandatory offer to shareholders of Allergan under Rule 9 of the Takeover Rules;

 

(B)      comply in all material respects with its obligations under the Takeover Offer and the Takeover Offer Document;

 

(C)      comply in all material respects with its obligations under the Irish Companies Act and the Takeover Rules, subject to any applicable waivers by the Takeover Panel;

 

(D)      not declare the Takeover Offer unconditional unless (i) it has achieved an acceptance level of at least 80% of each class of Allergan Shares to which the Takeover Offer relates and (ii) the Borrower has become entitled under the Squeeze Out Procedures to issue a Squeeze Out Notice; and

 

(E)      not (unless the Unconditional Date shall have occurred) extend the Takeover Offer beyond 81 days from the date on which the Takeover Offer Document are published, unless required to do so by the Takeover Rules, the Takeover Panel, any applicable law or regulation, any applicable stock exchange or any applicable governmental or other regulatory authority.

 

(v)        Completion of Purchase of Remaining Shares in Allergan. Within 14 days of the date on which the Borrower has (i) by virtue of the Takeover Offer acquired, or unconditionally contracted to acquire, not less than 80% in value of the Allergan Shares and (ii) become entitled under the Squeeze Out Procedures to issue a Squeeze Out Notice, the Borrower shall:

 

(A)      give notice to all the remaining Allergan Shareholders that it intends to acquire their shares pursuant to the Squeeze Out Procedures;

 

(B)      subsequently purchase such shares as soon as reasonably possible; and

 

(C)      comply with the provisions of the Squeeze Out Procedures in all material respects.

 

(l)      Take Private Procedure. To the extent the Allergan Acquisition is consummated by way of a Scheme and the Guarantee Requirements will apply to Allergan or any Subsidiary of Allergan established in Ireland, the Borrower shall submit all required documents to the Registrar to procure the re-registration of Allergan as a private company pursuant to Part 20 of the Irish Companies Act within 30 

 

55

 

days after the Closing Date (or such longer period reasonably acceptable to the Administrative Agent).  To the extent the Allergan Acquisition is consummated by way of a Takeover Offer and the Guarantee Requirements will apply to Allergan or any Subsidiary of Allergan established in Ireland, the Borrower shall submit all required documents to the Registrar to procure the re-registration of Allergan as a private company pursuant to Part 20 of the Irish Companies Act within 30 days after it has acquired all shares of Allergan (or such longer period reasonably acceptable to the Administrative Agent).

 

(m)       Sanctions and FCPA.  The Borrower (a) shall not use the proceeds of any Advances, and (b) shall ensure and shall cause each other member of the Consolidated Group to ensure, and, to their knowledge, their respective officers, employees, directors and agents (in their capacity as officers, employees, directors or agents, respectively, of the Borrower or another member of the Consolidated Group), shall ensure, that the proceeds of any Advances shall not be used by such Persons, in each case of clause (a) and (b), (i) to fund any activities or business of or with any Embargoed Person, or in any country or territory, that at the time of such funding is the target of any Sanctions, (ii) in any other manner that would result in a violation of any Sanctions by the Agents, Lenders, the Borrower or any member of the Consolidated Group or (iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws.

 

(n)        Guaranties.

 

(i)         From the date that is 90 days after the Closing Date, the payment and performance of the obligations of the Borrower under this Agreement shall be guaranteed by each direct or indirect existing or future wholly-owned Subsidiary of the Borrower that guarantees (A) any Borrowed Debt of Allergan or any of its Subsidiaries (other than the Specified Allergan Debt and other than any intercompany Borrowed Debt owed to another member of the Consolidated Group), so long as the aggregate principal amount of such guaranteed Borrowed Debt issued by any such Person exceeds $3,000,000,000 or (B) (x) the Borrower’s obligations under the Existing Credit Agreement, (y) the Borrower’s obligations under the Existing Public Notes and/or (z) the Borrower’s obligations under any other Borrowed Debt, that is outstanding for clauses (x) - (z) in an aggregate committed (with respect to clause (x) above) and principal (with respect to clauses (y) and (z) above) amount of at least $2,000,000,000, in each case pursuant to one or more guaranty agreements in form and substance reasonably acceptable to the Administrative Agent and the Borrower and governed by the laws of the State of New York, as the same may be amended, modified or supplemented from time to time (individually a “Guaranty” and collectively the “Guaranties”; and each such Subsidiary executing and delivering a Guaranty, a “Guarantor” and collectively the “Guarantors”); provided that no such Guaranty by a Foreign Subsidiary shall be required under this Section 5.01(n) to the extent the provision of such Guaranty would (1) give rise to a material adverse tax consequence to the Borrower or any of its direct or indirect Subsidiaries or any of its shareholders (including any tax consequences resulting from the application of Section 956 of the Internal Revenue Code) or (2) otherwise be prohibited by applicable law (or, with respect to any temporary restrictions, including limitations imposed under financial assistance rules or similar local laws, unless and until such temporary restrictions have been removed) or requires the approval or consent of any governmental authority or any other Person that is not a member of the Consolidated Group or that would cause a default or event of default (or similar events) under the Debt of such Subsidiary; provided, further that (i) the relevant Guarantor shall use reasonable efforts to overcome any such prohibition or restriction and (ii) to the extent the provision of any Guaranty would be limited (though not prohibited) under the laws of any application jurisdiction, such Guaranty shall only be provided subject to such limitations (in each case of this clause (i), as determined in good faith by the Borrower in consultation with the Administrative Agent) (the

 

56

 

guarantee requirements above, after giving effect to all limitations set forth therein, the “Guarantee Requirements”).

 

(ii)        In the event any Subsidiary of the Borrower is required to become a Guarantor hereunder pursuant to the Guarantee Requirements, within 90 days after the earliest date on which such requirement becomes applicable (or such longer period reasonably acceptable to the Administrative Agent), the Borrower shall cause such Subsidiary to execute and deliver to the Administrative Agent a Guaranty and the Borrower shall also deliver to the Administrative Agent, or cause such Subsidiary to deliver to the Administrative Agent, at the Borrower’s cost and expense, such other customary certificates and opinions of the type delivered on the Effective Date pursuant to Section 3.01(d), to the extent reasonably required by the Administrative Agent in connection therewith.

 

(iii)       A Guarantor, upon delivery of written notice to the Administrative Agent by a Responsible Officer of the Borrower certifying that, after giving effect to any substantially concurrent transactions, including any repayment of Debt, release of a guaranty or any sale or other disposition, the Guarantee Requirements no longer apply to such Person, shall be automatically released from its obligations (including its Guaranty) hereunder without further required action by any Person.  The Administrative Agent, at the Borrower’s expense, shall execute and deliver to the Borrower or the applicable Guarantor any documents or instruments as the Borrower or such Guarantor may reasonably request to evidence the release of such Guaranty.

 

(o)     Accounting Changes.  The Borrower will not change its fiscal year-end from December 31 of each calendar year; provided that the Borrower may, upon written notice to the Administrative Agent, change its fiscal year to any other fiscal year reasonably acceptable to the Administrative Agent, in which case, the Borrower and the Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary to reflect such change in fiscal year.

 

Section 5.02.    Negative Covenants.  So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will not:

 

(a)      Liens, Etc.  Incur, issue, assume or guarantee, or permit any Domestic Subsidiary to incur, issue, assume or guaranty, at any time, any Borrowed Debt secured by a Lien on any Principal Domestic Property of the Borrower or any Domestic Subsidiary, or any shares of stock or Borrowed Debt of any Domestic Subsidiary (other than Margin Stock), without effectively providing that the Advances outstanding at such time (together with, if the Borrower shall so determine, any other Borrowed Debt of the Borrower or such Domestic Subsidiary existing at such time or thereafter created that is not subordinate to the Advances) shall be secured equally and ratably with (or prior to) such secured Borrowed Debt, so long as such secured Borrowed Debt shall be so secured, unless, after giving effect thereto, the aggregate amount of all such secured Borrowed Debt would not exceed 15% of Consolidated Net Assets as determined at the time of the incurrence of such Lien; provided, however, that this Section 5.02(a) shall not apply to, and there shall be excluded from secured Borrowed Debt in any computation under this Section 5.02(a), Borrowed Debt secured by:

 

(i)         Liens on property of, or on any shares of stock or Borrowed Debt of, any Person existing at the time such Person becomes a member of the Consolidated Group;

 

(ii)        Liens in favor of the Borrower or any member of the Consolidated Group;

 

(iii)       Liens on property of the Borrower or any member of the Consolidated Group in favor of the United States or any State thereof, or any department, agency or instrumentality or 

 

57

 

political subdivision of the United States or any State thereof, or in favor of any other country, or any political subdivision thereof, to secure partial, progress, advance or other payments pursuant to any contract or statute;

 

(iv)       Liens for Taxes not yet delinquent or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

 

(v)        Liens on property (including that of Allergan and its Subsidiaries), shares of stock or Borrowed Debt existing at the time of acquisition thereof (including acquisition through merger or consolidation) or to secure the payment of all or any part of the purchase price or construction or improvement cost thereof or to secure any Debt incurred prior to, at the time of, or within 180 days after, the acquisition of such property or shares or Borrowed Debt or the completion of any such construction or improvement for the purpose of financing all or any part of the purchase price or construction or improvement cost thereof;

 

(vi)       Liens existing on the Effective Date;

 

(vii)      Liens incurred in connection with pollution control, industrial revenue or similar financing;

 

(viii)     survey exceptions and such matters as an accurate survey would disclose, easements, trackage rights, leases, licenses, special assessments, rights of way covenants, conditions, restrictions and declarations on or with respect to the use of real property, servicing agreements, development agreements, site plan agreements and other similar encumbrances incurred in the ordinary course of business and title defects or irregularities that are of a minor nature and that, in the aggregate, do not interfere in any material respect with the ordinary conduct of the business of the Consolidated Group, taken as a whole; and

 

(ix)       any extension, renewal or replacement (or successive extensions, renewals or replacements), as a whole or in part, of any Borrowed Debt secured by any Lien referred to in subclauses (i) through (vii) of this Section 5.02(a); provided that (i) such extension renewal or replacement Lien shall be limited to all or a part of the same property, shares of stock or Debt that secured the Lien extended, renewed or replaced (plus improvements on such property) and (ii) the Borrowed Debt secured by such Lien at such time is not increased.

 

(b)     Mergers, Etc.  Merge or consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (other than Margin Stock) (whether now owned or hereafter acquired) to, any Person, or permit any member of the Consolidated Group to do so, except that:

 

(i)         any member of (x) the Consolidated Group other than the Borrower may merge or consolidate with or into, or (y) the Consolidated Group may dispose of assets to, in each case, any other member of the Consolidated Group;

 

(ii)        the Borrower may merge with any other Person so long as (A) the Borrower is the surviving entity or (B) the surviving entity shall assume, by agreement reasonably satisfactory in form and substance to the Required Lenders, all of the rights and obligations of the Borrower under this Agreement and the other Loan Documents (it being understood that notwithstanding the foregoing, the consummation of the Transactions shall not be prohibited by this Section 5.02(b) or otherwise pursuant hereto);

 

58

 

(iii)       any member of the Consolidated Group (other than the Borrower) may merge or consolidate with or into another Person, convey, transfer, lease or otherwise dispose of all or any portion of its assets so long as (A) the consideration received in respect of such merger, consolidation, conveyance, transfer, lease or other disposition, if in excess of $500,000,000, is at least equal to the fair market value of such assets (as determined by the Borrower in good faith at the time of such transaction) and (B) no Material Adverse Effect would reasonably be expected to result from such merger, consolidation, conveyance, transfer, lease or other disposition (as determined by the Borrower in good faith at the time of such transaction);

 

provided, in the cases of clause (ii) hereof, that no Default (or, during the Certain Funds Period, no Certain Funds Default) shall have occurred and be continuing at the time of such proposed transaction or would result therefrom.

 

(c)        Change in Nature of Business.  Make any material change in the nature of the business of the Consolidated Group, taken as a whole, from that carried out by the Borrower and its Subsidiaries (other than Allergan and its Subsidiaries) on the Effective Date and by Allergan and its Subsidiaries on the Closing Date; it being understood that this Section 5.02(c) shall not prohibit (i) the Transactions or (ii) members of the Consolidated Group from conducting any business or business activities incidental or related to such business as carried on as of the Effective Date (in the case of the Borrower and its Subsidiaries other than Allergan and its Subsidiaries) or as of the Closing Date (in the case of Allergan and its Subsidiaries) or any business or activity that is reasonably similar or complementary thereto or a reasonable extension, development or expansion thereof or ancillary thereto.

 

Section 5.03.    Financial Covenant. Total Debt to EBITDA.  Beginning on the last day of the first fiscal quarter ending after the Closing Date and on the last day of each fiscal quarter ending thereafter, the Borrower will not permit, as of the last day of any such fiscal quarter, the ratio of (x) Consolidated Total Debt at such time to (y) Consolidated EBITDA of the Borrower (the “Consolidated Leverage Ratio”) for the four consecutive fiscal quarter period ending as of such date to exceed 4.75:1.00.

 

At any time after the definitive agreement for any Material Acquisition shall have been executed (or, in the case of a Material Acquisition in the form of a tender offer or similar transaction, after the offer shall have been launched) and prior to the consummation of such Material Acquisition (or termination of the definitive documentation in respect thereof), any Acquisition Debt (and the proceeds of such Acquisition Debt) shall be excluded from the definition of Consolidated Leverage Ratio; provided that (x) the definitive documentation relating to such Acquisition Debt shall contain “special mandatory redemption” or escrow provisions (or other similar provisions) or otherwise require such indebtedness to be redeemed or prepaid if such Material Acquisition is not consummated by a date specified in such definitive documentation and (y) if the definitive agreement (or, in the case of a tender offer or similar transaction, the definitive offer document) for such Material Acquisition is terminated in accordance with its terms prior to the consummation of such Material Acquisition or such Material Acquisition is otherwise not consummated by the date specified in the definitive documentation relating to such Acquisition Debt, such Acquisition Debt is so redeemed or prepaid by the date that it is required to be redeemed or prepaid in such circumstances pursuant to the terms of such Acquisition Debt.

 

ARTICLE 6
 EVENTS  OF DEFAULT

 

Section 6.01.    Events of Default.  If any of the following events (“Events of Default”) shall occur and be continuing:

 

59

 

(a)        The Borrower shall fail (i) to pay any principal of any Advance when the same becomes due and payable or (ii) to pay any interest on any Advance or make any payment of fees or other amounts payable under this Agreement within five Business Days after the same becomes due and payable; or

 

(b)        Any representation or warranty made by the Borrower herein or in any other Loan Document or by or on behalf of the Borrower in connection with this Agreement or in any certificate or other document furnished pursuant to or in connection with this Agreement, if any, in each case shall prove to have been incorrect in any material respect when made or deemed made; or

 

(c)        (i) The Borrower shall fail to perform or observe any term, covenant or agreement contained in Section 5.01(d)(i), 5.01(i)(iv), 5.01(n), 5.02(a), 5.02(b), 5.02(c), 5.03 or 9.11(b), (ii) the Borrower shall fail to perform or observe any term, covenant or agreement under Section 5.01(j), 5.01(k) or 5.01(l) and a written notice in respect thereof has been delivered to the Borrower by the Administrative Agent on or prior to the Closing Date, or (iii) the Borrower shall fail to perform or observe any other term, covenant or agreement contained in this Agreement, if any, in each case on its part to be performed or observed if such failure shall remain unremedied for 30 days after written notice thereof shall have been given to the Borrower by the Administrative Agent; or

 

(d)        The Borrower or any Significant Subsidiary shall fail to pay any principal of or premium or interest on any Debt that is outstanding in a principal amount, or, in the case of any Hedge Agreement, having an Agreement Value, of at least $200,000,000 (or, after the Closing Date, $500,000,000) in the aggregate (but excluding Debt outstanding hereunder) of the Borrower or such Significant Subsidiary, when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or the Borrower shall default in its obligations under any agreement or instrument relating to any such Debt, which default shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such default is to accelerate, or to permit the acceleration of, the maturity of such Debt; provided further that, such failure above shall not have been remedied and is not waived by the holders of such Debt prior to the termination of the Commitments hereunder and the acceleration of the Advances or the exercise of other remedies pursuant to this Section 6.01; or

 

(e)        The Borrower or any Significant Subsidiary shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower or any Significant Subsidiary seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any Debtor Relief Law, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), such proceeding shall remain undismissed or unstayed for a period of 60 days; or

 

(f)        Any one or more judgments or orders for the payment of money in excess of $200,000,000 (or, after the Closing Date, $500,000,000) shall be rendered against a member of the Consolidated Group and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) within 60 days after the entry, issue, or levy thereof, such judgment or order has not been paid or discharged or stayed pending appeal, or, after the expiration of any such stay, such judgment or order has not been paid or discharged; provided, however, that, for purposes of determining whether an Event of Default has occurred under this Section 6.01(f), the amount of any such judgment or order shall be reduced to the extent that (A) such judgment or order is covered by a valid and binding policy of insurance between the defendant and the insurer covering payment thereof and (B) such insurer, which 

 

60

 

shall be rated at least “A” by A.M. Best Company, has been notified of, and has not disputed the claim made for payment of, such judgment or order; or

 

(g)        (i) Any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as amended), directly or indirectly, of Voting Stock of the Borrower (or other securities convertible into or exchangeable for such Voting Stock) representing 50% or more of the combined voting power of all Voting Stock of the Borrower (on a fully diluted basis) or (ii) a majority of the members of the board of directors of the Borrower shall cease to be Continuing Directors; or

 

(h)        One or more of the following shall have occurred or is reasonably expected to occur, which in each case would reasonably be expected to result in a Material Adverse Effect: (i) any ERISA Event; (ii) the partial or complete withdrawal of the Borrower or any ERISA Affiliate from a Multiemployer Plan; or (iii) the “endangered” or “critical” status or termination of a Multiemployer Plan;

 

(i)         (1) All or a material portion of this Agreement shall cease to be valid and enforceable against the Borrower as found in a final, nonappealable judgment by a court of competent jurisdiction (except to the extent it is terminated in accordance with its terms and except to the extent such claim is made by an Agent or a Lender), unless the Borrower promptly reaffirms in writing its obligations hereunder or (2) the Borrower shall so assert in writing; or

 

(j)         (1) All or a material portion of the Guaranties, at any time after the execution and delivery thereof and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the obligations of the Borrower under this Agreement (other than contingent obligations that survive the termination of this Agreement), cease to be in full force and effect, unless the applicable Guarantor promptly re-affirms in writing its obligations under the Guaranties; or (2) the Borrower or any Guarantor contests in writing the validity or enforceability of any Guaranty;

 

then, and in any such event (subject in all aspects to Section 3.03), the Administrative Agent (i) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare the Advances, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, (but for the avoidance of doubt, always subject to Section 3.03) that in the event of an Event of Default under Section 6.01(e), (A) the Commitment of each Lender shall automatically be terminated and (B) the Advances, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower.

 

Notwithstanding anything in this Agreement to the contrary, for a period commencing on the Closing Date and ending on the date falling 120 days after the Closing Date (the “Clean-up Date”), notwithstanding any other provision of any Loan Document, any breach of covenants, misrepresentation or other default which arises with respect to the Allergan Group will be deemed not to be a breach of representation or warranty, a breach of covenant or an Event of Default, as the case may be, if:

 

(i)         it is capable of remedy and reasonable steps are being taken to remedy it;

 

61

 

(ii)        the circumstances giving rise to it have not knowingly been procured by or approved by the Borrower; and

 

(iii)       it is not reasonably likely to have a Material Adverse Effect on the Borrower and its Subsidiaries, on a consolidated basis.

 

If the relevant circumstances are continuing on or after the Clean-up Date, there shall be a breach of representation or warranty, breach of covenant or Event of Default, as the case may be, notwithstanding the above.

 

ARTICLE 7
 THE AGENTS

 

Section 7.01.    Authorization and Action.  Each Lender hereby irrevocably appoints Morgan Stanley Senior Funding, Inc. (or an Affiliate thereof designated by it) to act on its behalf as the Administrative Agent hereunder and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article VII (other than (x) Section 7.10, to the extent set forth therein, (y) the third sentence of Section 7.04 and (z) Section 7.06) are solely for the benefit of the Administrative Agent and the Lenders, and the Borrower shall not have rights as a third party beneficiary of any of such provisions (other than the third sentence of Section 7.04).

 

Section 7.02.    Administrative Agent Individually.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity as a Lender.  Such Person and its Affiliates may accept deposits from, own securities of, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with any member of the Consolidated Group or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

 

Section 7.03.    Duties of Administrative Agent; Exculpatory Provisions.

 

(a)      The Administrative Agent’s duties hereunder and under the other Loan Documents are solely ministerial and administrative in nature, and the Administrative Agent shall not have any duties or obligations except those expressly set forth herein or in any other Loan Document.  Without limiting the generality of the foregoing, the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers but shall be required to act or refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written direction of the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in any other Loan Document); provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent or any of its Affiliates to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law.

 

(b)        The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders 

 

62

 

as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 9.01 or Section 6.01) or (ii) in the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not to have knowledge of any Default or Event of Default unless and until the Borrower or any Lender shall have given notice to the Administrative Agent describing such Default or Event of Default.

 

(c)        Neither the Administrative Agent nor any other Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty, representation or other information made or supplied in or in connection with this Agreement, any other Loan Document or any information memorandum delivered in connection with the syndication of this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or the adequacy, accuracy and/or completeness of the information contained therein, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article III or elsewhere herein, other than (but subject to the foregoing clause (ii)) to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

(d)        Nothing in this Agreement or any other Loan Document shall require the Administrative Agent or any of its Related Parties to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender, and each Lender confirms to the Administrative Agent that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Administrative Agent or any of its Related Parties.

 

Section 7.04.    Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining satisfaction of any condition hereunder to the occurrence of the Effective Date, the making of any Advance or the occurrence of the Closing Date that by its terms must be fulfilled to the satisfaction of a Lender, each Lender shall be deemed to have consented to, approved or accepted such condition unless (i) an officer of the Administrative Agent responsible for the transactions contemplated hereby shall have received notice to the contrary from such Lender prior to the occurrence of the Effective Date, the making of such Advance or the occurrence of the Closing Date, as applicable, and (ii) in the case of a condition to the making of an Advance, such Lender shall not have made available to the Administrative Agent such Lender’s ratable portion of such Borrowing.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

Section 7.05.    Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder by or through any one or more sub agents appointed by the Administrative Agent.  The Administrative Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  Each such sub agent and the Related Parties of the Administrative Agent and each such sub agent shall be entitled to the benefits of all provisions of this Article VII and Section 9.04 (as though such sub-agents were the “Administrative Agent” under this Agreement) as if set forth in full herein with respect thereto.

 

63

 

Section 7.06.    Resignation of Administrative Agent.

 

(a)      The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right (with the consent of the Borrower, provided that no consent of the Borrower shall be required if an Event of Default pursuant to Section 6.01(a) or (e) has occurred and is continuing), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders (and with the consent of the Borrower, provided that no consent of the Borrower shall be required if an Event of Default has occurred and is continuing), appoint a successor Administrative Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

 

(b)        If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, such Person shall automatically and without the taking of any action by any Person, be removed as Administrative Agent on the date that is 30 days following the date such Person became a Defaulting Lender (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”).  In connection therewith, the Required Lenders, in consultation with the Borrower, shall appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment on or prior to the Removal Effective Date, then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

 

(c)        With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder and under the other Loan Documents.  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article VII and Section 9.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

 

Section 7.07.    Non-Reliance on Administrative Agent and Other Lenders.  Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time 

 

64

 

to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

 

Section 7.08.    Indemnification.  The Lenders agree to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower), ratably according to the respective principal amounts of the Advances made by each of them (or, if no Advances are at the time outstanding, ratably according to the respective amounts of their Commitments), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Administrative Agent under this Agreement, in each case, acting in the capacity of Administrative Agent; provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s gross negligence or willful misconduct.  Without limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, to the extent that the Administrative Agent is not promptly reimbursed for such expenses by the Borrower.

 

Section 7.09.    Other Agents.  None of the Lenders identified on the facing page or signature pages of this Agreement as a “syndication agent”, “arranger” or “bookrunner” shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such.  Without limiting the foregoing, none of the Lenders so identified shall have or be deemed to have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

 

Section 7.10.    ERISA.

 

(a)      Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true:

 

(i)         such Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, or the Commitments, or this Agreement,

 

(ii)        the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the 

 

65

 

Commitments and this Agreement, and the conditions for exemptive relief thereunder are and will continue to be satisfied in connection therewith,

 

(iii)       (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Advances, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement, or

 

(iv)       such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

 

(b)     In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

 

ARTICLE 8
 [RESERVED]

 

ARTICLE 9
 MISCELLANEOUS

 

Section 9.01.    Amendments, Etc.

 

(a)      Subject to Section 2.08(f), no amendment or waiver of any provision of this Agreement, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Required Lenders and the Borrower and acknowledged by the Administrative Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall, unless in writing, do any of the following:

 

(i)         [reserved];

 

(ii)        increase or extend the Commitments of a Lender or subject a Lender to any additional obligations, unless signed by such Lender;

 

(iii)       reduce the principal of, or stated rate of interest on, the Advances, the stated rate at which any fees hereunder are calculated or any other amounts payable hereunder, unless signed by each Lender directly and adversely affected thereby; provided that only the consent of the

 

66

 

Required Lenders shall be necessary to amend the definition of “Default Interest” or to waive any obligation of the Borrower to pay Default Interest;

 

(iv)       postpone any date fixed for any payment of principal of, or interest on, the Advances or any fees or other amounts payable hereunder, unless signed by each Lender directly and adversely affected thereby;

 

(v)        change the percentage of the Commitments or of the aggregate unpaid principal amount of the Advances, or the number of Lenders, that, in each case, shall be required for the Lenders or any of them to take any action hereunder or amend the definition of “Required Lenders”, unless signed by all Lenders;

 

(vi)       change Section 2.06, Section 2.13(a) or Section 2.15, in each case in a manner that would affect the ratable sharing of payments required thereby without the written consent of each Lender directly and adversely affected thereby;

 

(vii)      amend this Section 9.01, unless signed by all Lenders; or

 

(viii)     to the extent any Guaranty is then in effect, release all or substantially all of the value of the Guaranties (except as such release is otherwise provided for in this Agreement or in the other Loan Documents) without the written consent of each Lender;

 

and provided, further that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement.  Notwithstanding the foregoing, the Administrative Agent and the Borrower may amend any Loan Document to correct any errors, mistakes, omissions, defects or inconsistencies, or to effect administrative changes that are not adverse to any Lender, and such amendment shall become effective without any further consent of any other party to such Loan Document other than the Administrative Agent and the Borrower.  This Agreement may be amended from time to time without the consent of any other Lenders to award additional titles to certain Lenders, as determined pursuant to separate agreement between the Borrower and the Lead Arrangers.

 

Section 9.02.    Notices, Etc.  (a) All notices and other communications provided for hereunder shall be in writing (including telecopier) and mailed, telecopied or delivered, if to the Borrower or the Administrative Agent, to the address, telecopier number or if applicable, electronic mail address, specified for such Person on Schedule II; or, as to the Borrower or the Administrative Agent, at such other address as shall be designated by such party in a written notice to the other parties and, as to each other party, at such other address as shall be designated by such party in a written notice to the Borrower and the Administrative Agent.  All such notices and communications shall, when mailed or telecopied, be effective three Business Days after being deposited in the mails, postage prepaid, or upon confirmation of receipt (except that if electronic confirmation of receipt is received at a time that the recipient is not open for business, the applicable notice or communication shall be effective at the opening of business on the next business day of the recipient), respectively, except that notices and communications to the Administrative Agent pursuant to Article II, III or VII shall not be effective until received by the Administrative Agent.  Delivery by telecopier or other electronic communication of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof.

 

67

 

(b)     Electronic Communications.  Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.

 

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor.

 

(c)      The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make any notice and other communications available to the Lenders by posting the notices and other communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”).

 

(d)        THE APPROVED ELECTRONIC PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE APPROVED ELECTRONIC PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Borrower, any Lender or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

(e)        Each Lender agrees that notice to it (as provided in the next sentence) (a “Notice”) specifying that any communication has been posted to the Approved Electronic Platform shall constitute effective delivery of such information, documents or other materials to such Lender for purposes of this Agreement.  Each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) 

 

68

 

accurate wire instructions for such Lender.  Furthermore, each “public-side” Lender (i.e., Lenders that do not wish to receive material non-public information with respect to the Borrower and its Subsidiaries or any of their respective securities) (each a “Public Lender”) agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Approved Electronic Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable law, including United States federal and state securities laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Approved Electronic Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States federal or state securities laws.

 

(f)        If any notice required under this Agreement is permitted to be made, and is made, by telephone, actions taken or omitted to be taken in reliance thereon by the Administrative Agent or any Lender shall be binding upon the Borrower notwithstanding any inconsistency between the notice provided by telephone and any subsequent writing in confirmation thereof provided to the Administrative Agent or such Lender; provided that any such action taken or omitted to be taken by the Administrative Agent or such Lender shall have been in good faith and in accordance with the terms of this Agreement.

 

(g)        With respect to notices and other communications hereunder from the Borrower to any Lender, the Borrower shall provide such notices and other communications to the Administrative Agent, and the Administrative Agent shall promptly deliver such notices and other communications to any such Lender in accordance with subsection (b) above or otherwise.

 

(h)        Each of the Lenders and the Borrower agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store notices or other communications on the Approved Electronic Platform in accordance with the Administrative Agent’s generally applicable document retention procedures and policies.

 

Section 9.03.    No Waiver; Remedies.  No failure on the part of any Lender or the Administrative Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by applicable law.

 

Section 9.04.    Costs and Expenses.  (a) The Borrower agrees to pay, upon demand, all reasonable and documented out-of-pocket costs and expenses of each Agent in connection with the preparation, execution, delivery, administration, modification and amendment of this Agreement and the other documents to be delivered hereunder, including, (i) all due diligence, syndication (including printing and distribution), duplication and messenger costs and (ii) the reasonable and documented fees and expenses of a single primary counsel (and a local counsel in each relevant jurisdiction) for the Agents and the Lenders with respect thereto and with respect to advising the Agents as to their respective rights and responsibilities under this Agreement.  The Borrower further agrees to pay, upon demand, all reasonable and documented out-of-pocket costs and expenses of the Agents and the Lenders, if any, in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement and the other documents to be delivered hereunder, including, but limited, in the case of fees and expenses of counsel to reasonable and documented fees and expenses of a single primary counsel and an additional single local counsel in any local jurisdictions for the Agents and the Lenders and, in the case of an actual or perceived conflict of interest where the Administrative Agent notifies the Borrower of the existence of such conflict, one additional counsel, in connection with the enforcement of rights under this Agreement.

 

69

 

(b)        The Borrower agrees to indemnify and hold harmless each Agent and each Lender and each of their Related Parties (each, an “Indemnified Party”) from and against any and all claims, damages, losses, penalties, liabilities and expenses (provided that the Borrower’s obligations to the Indemnified Parties in respect of fees and expenses of counsel shall be limited to the reasonable fees and expenses of one counsel for all Indemnified Parties, taken together, (and, if reasonably necessary, one local counsel in any relevant jurisdiction) and, solely in the case of an actual or potential conflict of interest, of one additional counsel for all Indemnified Parties, taken together (and, if reasonably necessary, one local counsel in any relevant jurisdiction) (all such claims, damages, losses, penalties, liabilities and reasonable expenses being, collectively, the “Losses”) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of, or in connection with the preparation for a defense of, any investigation, litigation or proceeding arising out of, related to or in connection with (i) this Agreement, any of the transactions contemplated hereby or the actual or proposed use of the proceeds of the Advances or (ii) the actual or alleged presence of Hazardous Materials on any property of the Consolidated Group or any Environmental Action relating in any way to the Consolidated Group, in each case whether or not such investigation, litigation or proceeding is brought by the Borrower, its directors, shareholders or creditors or an Indemnified Party or any other Person or whether any Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated, except to the extent Losses (A) are found in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnified Party or any of its Affiliates (including any breach of its obligations under this Agreement), (B) result from any dispute between an Indemnified Party and one or more other Indemnified Parties (other than against an Agent acting in such a role) or (C) result from the claims of one or more Lenders solely against one or more other Lenders (and not claims by one or more Lenders against any Agent acting in its capacity as such except, in the case of Losses incurred by any Agent or any Lender as a result of such claims, to the extent such Losses are found in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence, bad faith or willful misconduct (including any breach of its obligations under this Agreement)) not attributable to any actions of a member of the Consolidated Group and for which the members of the Consolidated Group otherwise have no liability.  The Borrower further agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract, tort or otherwise) to the Borrower, its Subsidiaries or any of their shareholders or creditors for or in connection with this Agreement or any of the transactions contemplated hereby or the actual or proposed use of the proceeds of the Advances, except to the extent such liability is found in a final nonappealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence, bad faith or willful misconduct (including any breach of its obligations under this Agreement).  In no event, however, shall any Indemnified Party be liable on any theory of liability for any special, indirect, consequential or punitive damages (including, without limitation, any loss of profits, business or anticipated savings).  Notwithstanding the foregoing, this Section 9.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

(c)        If any payment of principal of, or Conversion of, any Eurocurrency Rate Advance is made by the Borrower to or for the account of a Lender other than on the last day of the Interest Period for such Advance, as a result of (i) a payment or Conversion pursuant to Section 2.06, 2.08(e), 2.10 or 2.12, (ii) acceleration of the maturity of the Advances pursuant to Section 6.01, (iii) a payment by an Eligible Assignee to any Lender other than on the last day of the Interest Period for such Advance upon an assignment of the rights and obligations of such Lender under this Agreement pursuant to Section 9.07 as a result of a demand by the Borrower pursuant to Section 9.07(a) or (iv) for any other reason, the Borrower shall, upon demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional reasonable losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion or as a result of any inability to Convert or exchange in the case of Section 

 

70

 

2.08 or 2.12, including, without limitation, any reasonable loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance.

 

(d)        Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in Sections 2.11, 2.14 and 9.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder.

 

Section 9.05.    Right of Setoff.  Subject to Section 3.03, upon (a) the occurrence and during the continuance of any Event of Default and (b) the making of the request or the granting of the consent specified by Section 6.01 to authorize the Administrative Agent to declare the Advances due and payable pursuant to the provisions of Section 6.01, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender or such Affiliate to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement, whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured.  Each Lender agrees promptly to notify the Borrower after any such setoff and application is made by such Lender; provided that the failure to give such notice shall not affect the validity of such setoff and application.  The rights of each Lender and its Affiliates under this Section 9.05 are in addition to other rights and remedies (including, without limitation, other rights of setoff) that such Lender and its Affiliates may have.

 

Section 9.06.    Binding Effect.  This Agreement shall become effective upon the satisfaction (or waiver by Required Lenders) of the conditions set forth in Section 3.01 and, thereafter, shall be binding upon and inure to the benefit of, and be enforceable by, the Borrower, the Administrative Agent and each Lender and their respective successors and permitted assigns, except that the Borrower shall have no right to assign its rights hereunder or any interest herein without the prior written consent of each Lender, and any purported assignment without such consent shall be null and void. No Lender shall have the right to assign all or a portion of its rights and obligations under this Agreement in violation of Section 9.07, and any such purported assignment in violation of Section 9.07 shall be null and void.

 

Section 9.07.    Assignments and Participations.  (a) (1) Each Lender shall not assign all or any portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing to it) except that each Lender may and (2) within five days after demand by the Borrower (with a copy of such demand to the Administrative Agent) to (i) any Defaulting Lender, (ii) any Lender that has made a demand for payment pursuant to Section 2.11 or 2.14, (iii) any Lender that has asserted pursuant to Section 2.08(b) or 2.12 that it is impracticable or unlawful for such Lender to make Eurocurrency Rate Advances or (iv) any Lender that fails to consent to an amendment or waiver hereunder for which consent of all Lenders (or all affected Lenders or all adversely affected Lenders) is required and, with respect to any amendment or waiver requiring the consent of all Lenders, as to which the Required Lenders shall have given their consent, such Lender shall, in each case of clauses (1) and (2) above, assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing to it); provided, however, that:

 

(A)      such assignment shall be made with the consent of the Borrower and the Administrative Agent, which consents shall not be unreasonably withheld or delayed (it being agreed that notwithstanding anything herein, during the Certain Funds Period, (x) the Borrower may withhold such consent in its sole discretion unless such assignment is from a Lender to one or more of its Affiliate(s) (in which case such 

 

71

 

consent shall not be unreasonably withheld or delayed by the Borrower) and (y) the Administrative Agent may withhold such consent in its sole discretion in connection with an assignment pursuant to clause (1) above); provided that, in the case of the Borrower only, such consent (A) shall not be required while an Event of Default (or during the Certain Funds Period, a Certain Funds Default) has occurred and is continuing, (B) other than during the Certain Funds Period, shall be deemed given if the Borrower shall not have objected within 10 Business Days following its receipt of notice of such assignment and (C) other than during the Certain Funds Period, such consent shall not be required in the case of an assignment to any other Lender or an Affiliate of any Lender; provided, further that, in each case above, notice thereof shall have been given to the Borrower and the Administrative Agent;

 

(B)      each such assignment shall be of a constant, and not a varying, percentage of all rights and obligations under this Agreement;

 

(C)      except in the case of an assignment to a Person that, immediately prior to such assignment, was a Lender or an assignment of all of a Lender’s rights and obligations under this Agreement, the amount of the Commitment of the assigning Lender being assigned pursuant to each such assignment (determined as of the date of the Assignment and Assumption with respect to such assignment) shall in no event be less than $25,000,000 or an integral multiple of $5,000,000 in excess thereof;

 

(D)      [reserved];

 

(E)      each such assignment made as a result of a demand by the Borrower pursuant to this Section 9.07(a)(2) shall be either an assignment of all of the rights and obligations of the assigning Lender under this Agreement or an assignment of a portion of such rights and obligations made concurrently with another such assignment or other such assignments that, in the aggregate, cover all of the rights and obligations of the assigning Lender under this Agreement;

 

(F)      no Lender shall be obligated to make any such assignment as a result of a demand by the Borrower pursuant to this Section 9.07(a)(2), (1) unless and until such Lender shall have received one or more payments in an aggregate amount at least equal to the aggregate outstanding principal amount of the Advances owing to such Lender, together with accrued interest thereon to the date of payment of such principal amount, and from the Borrower or one or more Eligible Assignees in an aggregate amount equal to all other amounts accrued to such Lender under this Agreement (including, without limitation, any amounts owing under Sections 2.11, 2.14 or 9.04(c)) and (2) unless and until the Borrower shall have paid (or caused to be paid) to the Administrative Agent a processing and recordation fee of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and

 

(G)      the parties to each such assignment (other than, except in the case of a demand by the Borrower pursuant to this Section 9.07(a)(2), the Borrower) shall execute and deliver to the Administrative Agent, for its acceptance and recording in the Register, an Assignment and Assumption and, if such assignment does not occur as a result of a demand by the Borrower pursuant to this Section 9.07(a) (in which case the Borrower shall pay the fee required by subclause (F)(3) of this Section 9.07(a)), a processing and 

 

72

 

recordation fee of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment and provided, further that in the event that, in connection with a demand by the Borrower pursuant to this Section 9.07(a)(2), the assignor shall not execute and deliver the relevant Assignment and Assumption within one Business Day of the Borrower’s request, such assignor shall be deemed to have executed and delivered such Assignment and Assumption.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

 

Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment and Assumption, (x) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Assumption, have the rights and obligations of a Lender hereunder and (y) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Assumption, relinquish its rights and be released from its obligations under this Agreement, except that such assigning Lender shall continue to be entitled to the benefit of Section 9.04(a) and (b) with respect to matters arising out of the prior involvement of such assigning Lender as a Lender hereunder (and, in the case of an Assignment and Assumption covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto).

 

(b)     By executing and delivering an Assignment and Assumption, the Lender assignor thereunder and the assignee thereunder confirm to and agree with each other and the other parties hereto as follows:

 

(i)         other than as provided in such Assignment and Assumption, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or document furnished pursuant hereto;

 

(ii)        such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower or the performance or observance by the Borrower of any of its obligations under this Agreement or any other instrument or document furnished pursuant hereto;

 

(iii)       such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 4.01(e) and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Assumption;

 

(iv)       such assignee will, independently and without reliance upon any Agent, such assigning Lender or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement;

 

(v)        such assignee confirms that it is an Eligible Assignee;

 

(vi)       such assignee appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement as 

 

73

 

are delegated to the Administrative Agent by the terms hereof, together with such powers and discretion as are reasonably incidental thereto; and

 

(vii)      such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender.

 

(c)        Upon its receipt of an Assignment and Assumption executed by an assigning Lender and an assignee representing that it is an Eligible Assignee, the Administrative Agent shall, if such Assignment and Assumption has been completed and is in substantially the form of Exhibit B hereto, (i) accept such Assignment and Assumption, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower.

 

(d)        The Administrative Agent, acting solely for this purpose as the agent of the Borrower, shall maintain at its address referred to in Section 9.02(a) a copy of each Assignment and Assumption delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount (and stated interest) of the Advances owing to, each Lender from time to time (the “Register”).  The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agents and the Lenders shall treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice.

 

(e)        Each Lender may sell participations to one or more banks or other entities (other than the Borrower or any of its Affiliates or any natural person) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing to it) without the consent of the Administrative Agent or the Borrower; provided, however, that:

 

(i)         such Lender’s obligations under this Agreement (including, without limitation, its Commitment) shall remain unchanged;

 

(ii)        such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations;

 

(iii)       such Lender shall remain the Lender of any such Advance for all purposes of this Agreement;

 

(iv)       the Borrower, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement; and

 

(v)        no participant under any such participation shall have any right to approve any amendment or waiver of any provision of this Agreement, or any consent to any departure by the Borrower herefrom or therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or stated rate of interest on, the Advances or the stated rate at which any fees or any other amounts payable hereunder are calculated (other than any amendment to the definition of “Default Interest” or to waive any obligation of the Borrower to pay Default Interest), in each case to the extent subject to such participation, or postpone any date fixed for any payment of principal of, or interest on, the Advances or any fees or any other amounts payable hereunder, in each case to the extent subject to such participation.

 

74

 

Each Lender shall promptly notify the Borrower after any sale of a participation by such Lender pursuant to this Section 9.07(e); provided that the failure of such Lender to give notice to the Borrower as provided herein shall not affect the validity of such participation or impose any obligations on such Lender or the applicable participant.

 

Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in the Advances or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(f)      Any Lender may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section 9.07, disclose to the assignee or participant or proposed assignee or participant, any information relating to the Borrower furnished to such Lender by or on behalf of the Borrower; provided that, prior to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any Information received by it from such Lender as more fully set forth in Section 9.08; provided further that, each Lender acknowledges, and shall cause each assignee, participant or proposed assignee or participant to acknowledge, that such disclosure is restricted by the Takeover Rules and the Takeover Panel and that Section 9.08 is subject to those restrictions.

 

(g)        Notwithstanding any other provision set forth in this Agreement, any Lender may at any time create a security interest in all or any portion of its rights under this Agreement (including, without limitation and the Advances owing to it) to secure obligations of such Lender, including, without limitation, any pledge or assignment to secure obligations in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System or any central bank having jurisdiction over such Lender.

 

Section 9.08.    Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process (provided that the Administrative Agent or such Lender, as applicable, agrees that it will, to the extent practicable and other than with respect to any audit or examination conducted by bank accountants or any governmental bank regulatory authority exercising examination or regulatory authority, notify the Borrower promptly thereof, unless such notification is prohibited by law, rule or regulation), (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this 

 

75

 

Agreement or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 9.08, to (i) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective party (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap or derivative or similar transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (iii) any rating agency, or (iv) the CUSIP Service Bureau or any similar organization, (g) with the consent of the Borrower or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower.  In addition, the Agents may disclose the existence and terms of this Agreement and the identity of the parties hereto (including titles) to market data collectors and service providers to the Agents in connection with the administration of this Agreement, the other Loan Documents, and the Commitments.  Each Lender acknowledges that its ability to disclose information concerning the Transactions is restricted by the Takeover Rules and the Takeover Panel and that Section 9.08 is subject to those restrictions.

 

For purposes of this Section 9.08, “Information” means this Agreement and the other Loan Documents and all information received from the Consolidated Group relating to the Consolidated Group or any of their respective businesses and the Allergan Group and any of its businesses, other than any such information that is available to the Administrative Agent or any Lender on a non-confidential basis prior to disclosure by the Consolidated Group.

 

Section 9.09.    Debt Syndication during the Certain Funds Period.  Each of the Lenders and the Agents confirms that it is aware of, and agrees to comply in all respects with, the terms and requirements of the Takeover Panel and Takeover Rules in relation to debt syndication during an offer period under the Takeover Rules.

 

Section 9.10.    Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, except that, as applicable, whether the Allergan Acquisition has been consummated in accordance with the terms and conditions of both the Transaction Agreement and the Scheme Documents or the Takeover Offer has been consummated in accordance with the terms and conditions of the Transaction Agreement and shall have become unconditional in accordance with the terms of the Takeover Offer Document shall, to the extent required by the laws of Ireland, be governed by, and construed in accordance with, the laws of Ireland.

 

Section 9.11.    Execution in Counterparts.  (a) This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement by telecopier, facsimile or in a .pdf or similar file shall be effective as delivery of a manually executed counterpart of this Agreement.

 

(b)     Notwithstanding any other provision of this Agreement to the contrary, upon the Administrative Agent’s request, the Borrower agrees to promptly execute and deliver such amendments to this Agreement as shall be necessary to implement any modifications to this Agreement pursuant to any separate letter agreements between the Borrower and the Lead Arrangers during the period permitted therein (and notwithstanding anything to the contrary herein (including Section 9.01), such amendment shall only require the consent of the Administrative Agent and the Borrower).

 

76

 

Section 9.12.    Jurisdiction, Etc.  (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court sitting in New York County or any federal court of the United States of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding shall be heard and determined in any such New York State court or, to the extent permitted by law, in any such federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

(b)     Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New York State or federal court.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(c)        Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.02.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

Section 9.13.    Patriot Act Notice.  Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower and any Guarantor, which information includes the name and address of the Borrower and such Guarantor, as applicable, and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower or such Guarantor in accordance with the Patriot Act.  The Borrower shall provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Administrative Agent or any Lenders in order to assist the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act.

 

Section 9.14.    No Advisory or Fiduciary Responsibility.  In its capacity as an Agent or a Lender, (a) no Agent or Lender has any responsibility except as set forth herein and (b) no Agent or Lender shall be subject to any fiduciary duties or other implied duties (to the extent permitted by law to be waived).  The Borrower agrees that it will not take any position or bring any claim against any Agent or any Lender that is contrary to the preceding sentence.

 

In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof), the Borrower acknowledges and agrees that: (i) the arranging and other services regarding this Agreement provided by the Agents and the Lenders are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Agents and the Lenders, on the other hand; (ii) each Agent and each Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor or agent for the Borrower or any of its Affiliates, or any other Person; and (iii) the Agents, the Lenders and each of their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and no Agent or Lender has any obligation to disclose any of such interests to the Borrower or its Affiliates.

 

Section 9.15.    Waiver of Jury Trial.  Each of the Borrower, the Administrative Agent and the Lenders hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or the actions of 

 

77

 

the Administrative Agent, any Lender or the Borrower in the negotiation, administration, performance or enforcement thereof.

 

Section 9.16.    Conversion of Currencies.  If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures in the relevant jurisdiction the first currency could be purchased with such other currency on the Business Day immediately preceding the day on which final judgment is given.

 

The obligations of the Borrower in respect of any sum due to any party hereto or any holder of the obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be discharged only to the extent that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss.  The obligations of the Borrower contained in this Section 9.16 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder.

 

Section 9.17.    Acknowledgment and Consent to Bail In of EEA Financial Institutions.  Notwithstanding anything to the contrary in this Agreement or in any other agreement, arrangement or understanding among the parties hereto, each party hereto acknowledges that any liability of any EEA Financial Institution arising under this Agreement, to the extent such liability is unsecured, may be subject the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)      the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)        the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)         a reduction in full or in part or cancellation of any such liability;

 

(ii)        a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institutions, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement; or

 

(iii)       the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

 

Section 9.18.    Nonreliance.  Each of the Lenders hereby represents that it is not relying on or looking to any Margin Stock as collateral in the extension or maintenance of the credit provided for herein.

 

78

 

Section 9.19.    Release of Guaranties.  The Lenders irrevocably authorize and direct the release of any Guarantor from its obligations under its Guaranty automatically as set forth in Section 5.01(n) and authorize and direct the Administrative Agent to, at the Borrower’s expense, execute and deliver to the applicable Guarantor such documents or instruments as the Borrower or such Guarantor may reasonably request to evidence the release of such Guaranty.

 

[Signature Pages Follow]

 

79

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

	
 
    	
 
    	
ABBVIE INC., as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Tabetha Skarbek
    
	
 
    	
 
    	
 
    	
Name:
    	
Tabetha Skarbek
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President and Treasurer
    

 

[Signature Page to 364-Day Bridge Credit Agreement – Project Picasso]

 

 

	
 
    	
 
    	
MORGAN STANLEY SENIOR FUNDING, INC., as   Administrative Agent and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Anish Shah
    
	
 
    	
 
    	
 
    	
Name:
    	
Anish Shah
    
	
 
    	
 
    	
 
    	
Title:
    	
Authorized Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
MUFG BANK, LTD., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jack Lonker
    
	
 
    	
 
    	
 
    	
Name:
    	
Jack Lonker
    
	
 
    	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to 364-Day Bridge Credit Agreement – Project Picasso]Exhibit 4.7 

 

 

 

BANCO BILBAO VIZCAYA ARGENTARIA, S.A.,

as Issuer

 

THE BANK OF NEW YORK MELLON, acting through its London Branch,

as Trustee, Transfer Agent and Paying Agent

 

THE BANK OF NEW YORK MELLON,

as Security Registrar

 

 

 

 

 

INDENTURE

 

 

 

Dated as of June 25, 2019

 

Senior Non-Preferred Debt Securities

 

 

 

 

 

 

 

 

    

     

    

 

 Reconciliation and tie between

Trust Indenture Act of 1939

and this Indenture

 

	 	
        Trust Indenture Act Section

        

	 	
        Indenture Section

        

	§310	(a)(1)	 	6.08
	 	(a)(2)	 	6.08
	 	(a)(3)	 	Not Applicable
	 	(a)(4)	 	Not Applicable
	 	(a)(5)	 	6.08
	 	(b)	 	6.14
	§311	(a)	 	6.12
	 	(b)	 	6.12
	§312	(a)	 	7.01, 7.02
	 	(b)	 	7.02
	 	(c)	 	7.02
	§313	(a)	 	7.03
	 	(b)	 	7.03
	 	(c)	 	7.03
	 	(d)	 	7.03
	§314	(a)	 	7.04, 10.05
	 	(b)	 	Not Applicable
	 	(c)(1)	 	1.02
	 	(c)(2)	 	1.02
	 	(c)(3)	 	Not Applicable
	 	(d)	 	Not Applicable
	 	(e)	 	1.02
	§315	(a)	 	6.01, 6.02
	 	(b)	 	6.03
	 	(c)	 	6.01, 6.02
	 	(d)	 	6.01, 6.02
	 	(e)	 	5.14
	§316	(a)(last sentence)	 	1.01 (“Outstanding”)
	 	(a)(1)(A)	 	5.12
	 	(a)(1)(B)	 	5.13
	 	(a)(2)	 	Not Applicable
	 	(b)	 	5.08
	 	(c)	 	1.04
	§317	(a)(1)	 	5.03
	 	(a)(2)	 	5.04
	 	(b)	 	10.03
	§318	(a)	 	1.08

____________________

Note: This reconciliation
and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

Attention should also be directed to Section 318(c)
of the Trust Indenture Act, which provides that the provisions of Sections 310 to and including 317 are a part of and govern every
qualified indenture, whether or not physically contained therein.

 

     

     

    

TABLE OF CONTENTS

____________________

	 	 
	 	
        PAGE

        

	ARTICLE 1	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 
	 	 
	Section 1.01. Definitions	1
	Section 1.02. Compliance Certificates and Opinions	7
	Section 1.03. Form of Documents Delivered to Trustee	7
	Section 1.04. Acts of Holders; Meetings; Record Dates	8
	Section 1.05. Notices, etc., to Trustee and Company	9
	Section 1.06. Notice to Holders of Securities; Waiver	9
	Section 1.07. Language of Notices	9
	Section 1.08. Conflict with Trust Indenture Act	9
	Section 1.09. Effect of Headings and Table of Contents	9
	Section 1.10. Successors and Assigns	9
	Section 1.11. Separability Clause	9
	Section 1.12. Benefits of Indenture	9
	Section 1.13. Governing Law	10
	Section 1.14. Legal Holidays	10
	Section 1.15. Counterparts	10
	Section 1.16. Appointment of Agent for Service; Submission to Jurisdiction	10
	Section 1.17. Waiver of Jury Trial	10
	 	 
	ARTICLE 2	 
	SECURITIES FORMS	 
	 	 
	Section 2.01. Forms Generally	10
	Section 2.02. Form of Trustee’s Certificate of Authentication	11
	Section 2.03. Securities in Global Form	11
	Section 2.04. Forms of Legends for Global Securities	11
	 	 
	ARTICLE 3	 
	THE SECURITIES	 
	 	 
	Section 3.01. Amount Unlimited; Issuable in Series	11
	Section 3.02. Currency; Denominations	13
	Section 3.03. Execution, Authentication, Delivery and Dating	13
	Section 3.04. Temporary Securities	14
	Section 3.05. Registration, Transfer and Exchange	14
	Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities	15
	Section 3.07. Payment of Interest and Certain Additional Amounts; Rights to Interest and Certain Additional Amounts Preserved	16
	Section 3.08. Persons Deemed Owners	17
	Section 3.09. Cancellation	17
	Section 3.10. Computation of Interest	17
	 	 
	ARTICLE 4	 
	SATISFACTION AND DISCHARGE OF INDENTURE	 
	 	 
	Section 4.01 Satisfaction and Discharge	17
	 	 
	ARTICLE 5	 
	REMEDIES	 
	 	 
	Section 5.01. Event of Default	18
	Section 5.02. Acceleration of Maturity; Rescission and Annulment	18
	Section 5.03. Collection of Indebtedness and Suits for Enforcement by Trustee	19
	Section 5.04. Trustee May File Proofs of Claim	19

 

     

     

    

 

	Section 5.05. Trustee May Enforce Claims without Possession of Securities	20
	Section 5.06. Application of Money Collected	20
	Section 5.07. Limitations on Suits	20
	Section 5.08. Unconditional Right of Holders to Receive Principal and any Premium, Interest and Additional Amounts	20
	Section 5.09. Restoration of Rights and Remedies	21
	Section 5.10. Rights and Remedies Cumulative	21
	Section 5.11. Delay or Omission Not Waiver	21
	Section 5.12. Control by Holders of Securities	21
	Section 5.13. Waiver of Past Defaults	21
	Section 5.14. Undertaking for Costs	21
	 	 
	ARTICLE 6	 
	THE TRUSTEE	 
	 	 
	Section 6.01. Certain Duties and Responsibilities	21
	Section 6.02. Certain Rights of Trustee	22
	Section 6.03. Notice of Defaults	23
	Section 6.04. Not Responsible for Recitals or Issuance of Securities	23
	Section 6.05. May Hold Securities	23
	Section 6.06. Money Held in Trust	23
	Section 6.07. Compensation and Reimbursement	23
	Section 6.08. Corporate Trustee Required; Eligibility	24
	Section 6.09. Resignation and Removal; Appointment of Successor	24
	Section 6.10. Acceptance of Appointment by Successor	25
	Section 6.11. Merger, Conversion, Consolidation or Succession to Business	25
	Section 6.12. Preferential Collection of Claims Against Company	25
	Section 6.13. Appointment of Authenticating Agent	25
	Section 6.14. Disqualification; Conflicting Interests	26
	Section 6.15. Tax Compliance	26
	 	 
	ARTICLE 7	 
	HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY	 
	 	 
	Section 7.01. Company to Furnish Trustee Names and Addresses of Holders	27
	Section 7.02. Preservation of Information; Communications to Holders	27
	Section 7.03. Reports by Trustee	27
	Section 7.04. Reports by Company	27
	 	 
	ARTICLE 8	 
	CONSOLIDATION, MERGER AND SALES; ASSUMPTION; SUBSTITUTION AND MODIFICATION	 
	 	 
	Section 8.01. Company May Consolidate, etc.	28
	Section 8.02. Non-Spanish Successor Person	28
	Section 8.03. Assumption of Obligations	28
	Section 8.04. Substitution and Modification	29
	 	 
	ARTICLE 9	 
	SUPPLEMENTAL INDENTURES	 
	 	 
	Section 9.01. Supplemental Indentures without Consent of Holders	29
	Section 9.02. Supplemental Indentures with Consent of Holders	30
	Section 9.03. Execution of Supplemental Indentures	31
	Section 9.04. Effect of Supplemental Indentures	31
	Section 9.05. Reference in Securities to Supplemental Indentures	31
	Section 9.06. Conformity with Trust Indenture Act	31
	 	 
	ARTICLE 10	 
	COVENANTS	 
	 	 
	Section 10.01. Payment of Principal and Any Premium, Interest and Additional Amounts	31
	Section 10.02. Maintenance of Office or Agency	31
	Section 10.03. Money for Securities Payments to Be Held in Trust	31
	Section 10.04. Additional Amounts	32
	Section 10.05. Statement as to Default	33
	Section 10.06. Corporate Existence	33
	Section 10.07. Waiver of Certain Covenants	33

 

     

     

    

	 	 
	ARTICLE 11	 
	REDEMPTION OF SECURITIES	 
	 	 
	Section 11.01. Applicability of Article	33
	Section 11.02. Election to Redeem; Notice to Trustee	34
	Section 11.03. Selection by Trustee of Securities to Be Redeemed	34
	Section 11.04. Notice of Redemption	34
	Section 11.05. Deposit of Redemption Price	35
	Section 11.06. Securities Payable on Redemption Date	35
	Section 11.07. Securities Redeemed in Part	35
	Section 11.08. Redemption for Taxation or Listing Reasons	35
	Section 11.09. Redemption for Eligible Liabilities Event	36
	 	 
	ARTICLE 12	 
	[Reserved]	36
	 	 
	ARTICLE 13	 
	RANKING OF THE SECURITIES	 
	 	 
	Section 13.01. Ranking of the Securities	36
	Section 13.02. Waiver of Right of Set-Off	36
	Section 13.03. Trustee to Effectuate Ranking	37
	Section 13.04. Trustee Not Fiduciary for Creditors of Senior Preferred Obligations	37
	Section 13.05. Rights of Trustee as Creditor of Senior Preferred Obligations; Preservation of Trustee’s Rights	37
	Section 13.06. Article Applicable to Paying Agents	37
	 	 
	ARTICLE 14	 
	[Reserved]	37
	 	 
	ARTICLE 15	 
	EXERCISE OF SPANISH BAIL-IN POWER	 
	 	 
	Section 15.01. Agreement with Respect to the Exercise of Spanish Bail-in Power	37
	Section 15.02. BRRD Liabilities	38
	 	 

     

     

    

INDENTURE, dated as of June 25, 2019, between
Banco Bilbao Vizcaya Argentaria, S.A., a sociedad anónima organized under the laws of the Kingdom of Spain (hereinafter
called the “Company”), having its principal executive office located at Calle Azul 4, Madrid, Spain, and The
Bank of New York Mellon, a New York banking corporation duly organized and existing under the laws of the State of New York, having
its principal corporate trust office located at 240 Greenwich Street, New York, New York 10286, United States, and acting (except
with respect to its role as Security Registrar) through its London Branch at One Canada Square, London E14 5AL, United Kingdom
(in its capacity as trustee, the “Trustee”, which term includes any successor Trustee).

 

RECITALS

 

The Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance from time to time of its senior non-preferred unsubordinated unsecured
debentures, notes or other evidences of indebtedness (hereinafter called the “Securities”), unlimited as to
principal amount, to bear such rates of interest, to mature at such time or times, to be issued in one or more series and to have
such other provisions as shall be fixed as hereinafter provided.

 

All things necessary to make this Indenture
a valid agreement of the Company, in accordance with its terms, have been done.

 

This Indenture is subject to the provisions
of the Trust Indenture Act of 1939, as amended, and the rules and regulations of the U.S. Securities and Exchange Commission promulgated
thereunder that are required to be part of this Indenture and, to the extent applicable, shall be governed by such provisions.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises
and the purchase of the Securities by the Holders (as herein defined) thereof, it is mutually covenanted and agreed, for the equal
and proportionate benefit of all Holders of the Securities of any series thereof as follows:

 

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

 

Section 1.01. Definitions. Except
as otherwise expressly provided in or pursuant to this Indenture or unless the context otherwise requires, for all purposes of
this Indenture:

 

(a) the terms defined in this Article have
the meanings assigned to them in this Article, and include the plural as well as the singular;

 

(b) all other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

 

(c) all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with International Financial Reporting Standards as issued by the
International Accounting Standards Board;

 

(d) the words “herein”,
“hereof”, “hereto” and “hereunder” and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section or other subdivision;

 

(e) the word “or” is
always used inclusively (for example, the phrase “A or B” means “A or B or both”, not “either A or
B but not both”);

 

(f) the term “including”
means “including without limitation;” and

 

(g) any reference to an “Article”
or a “Section” refers to an Article or Section of this Indenture.

 

References to any act or statute or any
provision of any act or statute shall be deemed also to refer to any statutory modification or re-enactment thereof or any statutory
instrument, order or regulation made in accordance therewith or under such modification or re-enactment.

 

Certain terms used principally in certain
Articles hereof are defined in those Articles.

 

“Act”, when used with
respect to any Holder, has the meaning specified in Section 1.04.

 

“Additional Amounts”
means any additional amounts which are payable under Section 10.04 by the Company in respect of certain taxes withheld from
payments of interest to Holders.

 

    1 

     

    

“Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control”, when used with respect to any specified Person,
means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Amounts Due”, with
respect to the Securities of a series, means the principal amount of or outstanding amount (if applicable), together with any accrued
but unpaid interest, Additional Amounts and premium (if any) due on the Securities of such series. References to such amounts will
include amounts that have become due and payable, but which have not been paid, prior to the exercise of the Spanish Bail-in Power
(as defined herein) by the Relevant Spanish Resolution Authority (as defined herein). References to such amounts will also include
amounts held in trust by the Company, any Paying Agent or the Trustee pursuant to Section 10.03.

 

“Applicable Banking Regulations”
means at any time the laws, regulations, requirements, guidelines and policies relating to capital adequacy, resolution and/or
solvency then applicable to the Company and/or the Group including, without limitation to the generality of the foregoing, CRD
V (as defined herein), the BRRD (as defined herein), the SRM Regulation (as defined herein) and those laws, regulations, requirements,
guidelines and policies relating to capital adequacy, resolution and/or solvency then in effect in the Kingdom of Spain (whether
or not such regulations, requirements, guidelines or policies have the force of law and whether or not they are applied generally
or specifically to the Company and/or the Group).

 

“Authenticating Agent”
means, when used with respect to the Securities of any series, any Person authorized by the Trustee pursuant to Section 6.13
to act on behalf of the Trustee to authenticate Securities of such series.

 

“Authorized Newspaper”
means a newspaper, in an official language of the place of publication or in the English language, customarily published on each
day that is a Business Day in the place of publication, whether or not published on days that are Legal Holidays in the place of
publication, and of general circulation in each place in connection with which the term is used or in the financial community of
each such place. Where successive publications are required to be made in Authorized Newspapers, the successive publications may
be made in the same or in different newspapers in the same city meeting the foregoing requirements and in each case on any day
that is a Business Day in the place of publication.

 

“Board of Directors”
means either the board of directors of the Company or any committee or Person duly authorized to act generally or in any particular
respect for the Company hereunder.

 

“Board Resolution” means
a copy of one or more resolutions certified by the Secretary or an Assistant Secretary or any Person duly authorized by the Company
to have been duly adopted by the relevant Board of Directors or an authorized committee thereof and to be in full force and effect
on the date of such certification.

 

“BRRD” means Directive
2014/59/EU of the European Parliament and the Council of the European Union of May 15 establishing the framework for the recovery
and resolution of credit institutions and investment firms or such other directive as may come into effect in place thereof, as
implemented into Spanish law by Law 11/2015 (as defined herein) and RD 1012/2015 (as defined herein), as amended, replaced or supplemented
from time to time (including as amended by Directive 2019/879 of the European Parliament and the Council of May 20, 2019) and including
any other relevant implementing or developing regulatory provisions.

 

“BRRD Liability” means
any liability, commitment, duty, responsibility, amount payable or contingency or other obligation arising from, or related to,
this Indenture which may be subject to the exercise of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority.

 

“Business Day” means,
except as may otherwise be provided in the form of Securities of any particular series pursuant to the provisions of this Indenture,
any day, other than Saturday or Sunday, that is neither a Legal Holiday nor a day on which banking institutions are authorized
or required by law, regulation or executive order to close in (except as may otherwise be provided herein) the City of New York,
London, Madrid or the relevant Place of Payment.

 

“Commission” means the
U.S. Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934, as
amended, or, if at any time after the execution of this Indenture such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

 

“Company” means the
Person named as the “Company” in the first paragraph of this Indenture until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person,
and any other obligor upon the Securities.

 

“Company Request” and
“Company Order” mean, respectively, a written request or order, as the case may be, signed in the name of the
Company by any member of the Board of Directors, the President, a Vice President, the Treasurer, an Assistant

 

    2 

     

    

Treasurer, the Secretary, an Assistant Secretary or other representative
of the Company, in each case empowered to do so by a Board Resolution, and delivered to the Trustee or the Paying Agent, as the
case may be.

 

“Corporate Trust Office”
means the corporate trust office of the Trustee at which, at any particular time, its corporate trust business is principally administered,
which, with respect to The Bank of New York Mellon, acting through its London Branch, is currently located at One Canada Square,
London E14 5AL, United Kingdom, and the Indenture shall be administered (except with respect to the role of Security Registrar)
at such corporate trust office, or such other location as notified by the Trustee to the Company from time to time, or, if a different
Trustee is appointed for a particular series of Securities, the address set forth in the supplemental indenture naming the Trustee
for that particular series of Securities.

 

“Corporation” includes
corporations, companies and, except for purposes of Article 8, associations and business trusts.

 

“CRD V” means any or
any combination of the CRD Directive (as defined below), the CRR (as defined below) and any CRD Implementing Measures (as defined
below).

 

“CRD Directive” means
Directive 2013/36/EU of the European Parliament and of the Council of June 26 on access to the activity of credit institutions
and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives
2006/48/EC and 2006/49/EC, as amended, replaced or supplemented from time to time (including as amended by Directive 2019/878 of
the European Parliament and the Council of May 20, 2019).

 

“CRD Implementing Measures”
means any regulatory capital rules implementing or developing the CRD Directive or the CRR which may from time to time be introduced,
including, but not limited to, delegated or implementing acts (regulatory technical standards) adopted by the European Commission,
national laws and regulations, and regulations and guidelines issued by the Regulator (as defined below), the European Banking
Authority or any other relevant authority, which are applicable to the Company (on a standalone basis) or the Group (on a consolidated
basis), including, without limitation, Law 10/2014 of June 26, on regulation, oversight and solvency of credit institutions
(Ley 10/2014, de 26 de junio, de ordenación, supervisión y solvencia de entidades de crédito), as amended,
replaced or supplemented from time to time, and any other regulation, circular or guidelines implementing or developing Law 10/2014,
as amended, replaced or supplemented from time to time.

 

“CRR” means Regulation
(EU) No. 575/2013 of the European Parliament and of the Council of June 26, on the prudential requirements for credit
institutions and investment firms, as amended, replaced or supplemented from time to time (including as amended by Regulation 876/2019
of the European Parliament and the Council of May 20, 2019).

 

“Currency”, with respect
to any payment, deposit or other transfer in respect of the principal of or any premium or interest on or any Additional Amounts
with respect to any Security, means Dollars, unless otherwise expressly provided.

 

“Defaulted Interest”
has the meaning specified in Section 3.07.

 

“Dollars” or “$”
means a dollar or other equivalent unit of legal tender for payment of public or private debts in the United States of America.

 

“Early Intervention”
means, with respect to any Person, that any Relevant Spanish Resolution Authority or the European Central Bank shall have announced
or determined that such Person has or shall become the subject of an “early intervention” (actuación temprana)
as such term is defined in Law 11/2015 and in the SRM Regulation.

 

“Eligible Liabilities Amount”
means the amount of eligible liabilities of the Company or the Group for the purposes of Article 45 of the BRRD or Applicable Banking
Regulations or any other regulations applicable in the Kingdom of Spain from time to time.

 

“Eligible Liabilities Event”
means, with respect to the Securities of a series, a change (or any pending change which the Regulator considers sufficiently certain)
in Spanish law or Applicable Banking Regulations on or after the issue date of such Securities or any official application or interpretation
thereof, that results (or is likely to result) in such Securities not being (or ceasing to be) fully eligible for inclusion in
the Eligible Liabilities Amount; provided that an Eligible Liabilities Event shall not occur where such ineligibility for
inclusion of such Securities in the Eligible Liabilities Amount is due to the remaining maturity of such Securities being less
than any period prescribed by any applicable eligibility criteria under the Applicable Banking Regulations (or any other regulations
applicable in the Kingdom of Spain from time to time) which was effective on the issue date of such Securities.

 

“Event of Default” has
the meaning specified in Section 5.01.

 

“Foreign Currency” means
any currency, currency unit or composite currency, including, without limitation, the euro, issued by the government of one or
more countries other than the United States or by any confederation or association of such governments.

 

    3 

     

    

“Global Security” means
a Security evidencing all or part of the Securities of a series, bearing the legend set forth in Section 2.04 (or such legend
as may be specified as contemplated in Section 3.01 for such Securities), authenticated and delivered to or on behalf of the
Holder and registered in the name of the Holder or its nominee.

 

“Group” means the Company
and its consolidated subsidiaries.

 

“Holder” means a Person
in whose name a Security is registered in the Security Register.

 

“Indenture” means this
instrument as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof and, with respect to any Security, by the terms and provisions of such Security established
pursuant to Section 3.01 (as such terms and provisions may be amended pursuant to the applicable provisions hereof).

 

“Insolvency Law” means
Spanish Law 22/2003 of July 9, on Insolvency (Ley 22/2003, de 9 de julio, concursal), as amended, replaced or supplemented
from time to time.

 

“Interest Payment Date”,
with respect to any Security, means the Stated Maturity of an installment of interest on such Security.

 

“Law 11/2015” means
Spanish Law 11/2015 of June 18, on the Recovery and Resolution of Credit Institutions and Investment Firms (Ley 11/2015
de 18 de junio, de recuperación y resolución de entidades de crédito y empresas de servicios de inversión),
as amended, replaced or supplemented from time to time.

 

“Legal Holiday”, with
respect to any Place of Payment or other location, means a Saturday, a Sunday or a day on which banking institutions in such Place
of Payment or other location are not authorized or required to be open.

 

“Maturity”, with respect
to any Security, means the date on which the principal of such Security or an installment of principal becomes due and payable
as provided in or pursuant to this Indenture, whether at the Stated Maturity or by declaration of acceleration, notice of redemption
or repurchase or otherwise, and includes the Redemption Date.

 

“OECD” means the Organization
for Economic Co-operation and Development.

 

“Office” or “Agency”,
with respect to any Securities, means an office or agency of the Company maintained or designated in a Place of Payment for such
Securities pursuant to Section 10.02 or any other office or agency of the Company maintained or designated for such Securities
pursuant to Section 10.02 or, to the extent designated or required by Section 10.02 in lieu of such office or agency,
the Corporate Trust Office of the Trustee.

 

“Officer’s Certificate”
means a certificate signed by the Chairman or the Vice Chairman of the Board of Directors, the Secretary or an Assistant Secretary
of the Board of Directors, the President, a Vice President, the Treasurer, an Assistant Treasurer or any other Person duly authorized
by the Company and that, if required by the Trust Indenture Act, complies with the requirements of Section 314(e) of the Trust
Indenture Act.

 

“Opinion of Counsel”
means a written opinion of counsel, who may be an employee of or counsel for the Company or other counsel who shall be reasonably
acceptable to the Trustee, that, if required by the Trust Indenture Act, complies with the requirements of Section 314(e)
of the Trust Indenture Act.

 

“ordinary claims” means
the class of claims with respect to unsecured, non-privileged and unsubordinated obligations (créditos ordinarios)
of the Company which, upon the insolvency (concurso de acreedores) of the Company and pursuant to the Insolvency Law and
other applicable laws relating to or affecting the enforcement of creditors’ rights in the Kingdom of Spain, rank (i) junior
to privileged claims (créditos privilegiados) (which shall include, among other claims, any claims in respect of
deposits for the purposes of Additional Provision 14.1 of Law 11/2015 and any secured claims), and claims against the insolvency
estate (créditos contra la masa) and (ii) senior to subordinated claims (créditos subordinados).

 

“Original Issue Discount Security”
means a Security issued pursuant to this Indenture which provides for declaration of an amount less than the principal face amount
thereof to be due and payable upon acceleration pursuant to Section 5.02.

 

“Outstanding”, when
used with respect to any Securities, means, as of the date of determination, all such Securities theretofore authenticated and
delivered under this Indenture, except:

 

(i) any such Security theretofore
cancelled by the Trustee or the Security Registrar or delivered to the Trustee or the Security Registrar for cancellation;

 

(ii) any such Security for
whose payment at the Maturity thereof money in the necessary amount has been theretofore deposited pursuant hereto with the Trustee
or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall
act as its own Paying Agent) for the Holders of such Securities,

 

    4 

     

    

provided that, if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made;

 

(iii) any such Security which
has been paid pursuant to Section 3.06(c) or in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, unless there shall have been presented to the Trustee proof satisfactory to it that such
Security is held by a protected purchaser in whose hands such Security is a valid obligation of the Company; and

 

(iv) any such Security subject
to the exercise of the Spanish Bail-in Power which results in the redemption, cancellation, or the conversion into another security
or other securities, of all Amounts Due on such Security or such Security otherwise ceasing to be outstanding;

 

provided, however, that in determining whether the Holders
of the requisite principal amount of Outstanding Securities of a series have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, (i) the principal amount of an Original Issue Discount Security that may be counted in
making such determination and that shall be deemed to be Outstanding for such purposes shall be equal to the amount of the principal
thereof that pursuant to the terms of such Original Issue Discount Security would be declared (or shall have been declared to be)
due and payable upon a declaration of acceleration thereof pursuant to Section 5.02 at the time of such determination, (ii) the
principal amount of a Security denominated in a Foreign Currency shall be the Dollar equivalent, determined on the date of original
issuance of such Security, of the principal amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent
on the date of original issuance of such Security of the amount determined in (i) above) of such Security, and (iii) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor, shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in making any
such determination or relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee knows to be so owned shall be so disregarded. Securities so owned which shall have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee (A) the
pledgee’s right so to act with respect to such Securities and (B) that the pledgee is not the Company or any other obligor
upon the Securities or an Affiliate of the Company or of such other obligor.

 

“Paying Agent” means,
when used with respect to the Securities of any series, any Person authorized by the Company to pay the principal of, or any premium
or interest on, or any Additional Amounts with respect to, the Securities of such series on behalf of the Company.

 

“Person” means any individual,
Corporation, limited liability company, partnership, joint venture, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

 

“Place of Payment”,
with respect to any Security, means the place or places where the principal of, or any premium or interest on, or any Additional
Amounts with respect to, such Security are payable as provided in or pursuant to this Indenture.

 

“Predecessor Security”
of any particular Security means every previous Security evidencing all or a portion of the same indebtedness as that evidenced
by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.06
in exchange for or in lieu of a lost, destroyed, mutilated or stolen Security shall be deemed to evidence the same indebtedness
as the lost, destroyed, mutilated or stolen Security.

 

“Qualifying Securities”
means, with respect to a series of Securities which is subject to any substitution or modification pursuant to Section 8.04,
at any time, any securities issued by the Company that:

 

(i) contain terms which comply
with the then current requirements for inclusion in the Eligible Liabilities Amount as provided under Applicable Banking Regulations,
as applicable;

 

(ii) have the same denomination
and aggregate outstanding principal amount, the same currency in which payments shall be payable, the same rate of interest and
terms for the determination of any applicable rate of interest, the same date of maturity and the same dates for payment of interest
as such series of Securities immediately prior to any substitution or modification pursuant to Section 8.04;

 

(iii) have the same or higher
ranking as is applicable to such series of Securities on the issue date of such series of Securities pursuant to Article 13;

 

(iv) preserve any existing
rights under the Securities to any accrued interest which has not been paid in respect of the period from (and including) the Interest
Payment Date last preceding the date of any substitution or modification pursuant to Section 8.04; and

 

(v) are listed or admitted
to trading on any stock exchange as selected by the Company, if such series of Securities were listed or admitted to trading on
a stock exchange immediately prior to the relevant substitution or modification pursuant to Section 8.04.

 

    5 

     

    

“RD 1012/2015” means
Spanish Royal Decree 1012/2015 of November 6, by virtue of which Law 11/2015 is developed and Royal Decree 2606/1996 of December 20
on credit entities’ deposit guarantee fund is amended, as amended, replaced or supplemented from time to time.

 

“Redemption Date”, with
respect to any Security or portion thereof to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.

 

“Redemption Price”,
with respect to any Security or portion thereof to be redeemed, means the price at which it is to be redeemed as determined by
or pursuant to this Indenture. Except as otherwise provided in the relevant Security, the Redemption Price of a Security to be
redeemed means its principal amount, together with accrued interest, if any, thereon to but not including the Redemption Date.

 

“Regular Record Date”
for the interest payable on any Security on any Interest Payment Date therefor means the date, if any, specified in or pursuant
to this Indenture as the “Regular Record Date”.

 

“Regulator” means the
European Central Bank, the Bank of Spain or the Relevant Spanish Resolution Authority, as applicable, or such other or successor
authority having primary bank supervisory authority, in each case, with respect to prudential or resolution matters in relation
to the Company and/or the Group from time to time.

 

“Relevant Spanish Resolution Authority”
means the Spanish Fund for the Orderly Restructuring of Banks (Fondo de Restructuración Ordenada Bancaria), the European
Single Resolution Mechanism and, as the case may be, according to Law 11/2015, RD 1012/2015 and the SRM Regulation, the Bank of
Spain and the Spanish Securities Market Commission (CNMV) or any other entity with the authority to exercise the Spanish Bail-in
Power from time to time.

 

“Resolution” means,
with respect to any Person, that any Relevant Spanish Resolution Authority shall have announced or determined that such Person
has or shall become the subject of a “resolution” (resolución) as such term is defined in Law 11/2015
and the SRM Regulation.

 

“Responsible Officer”
means any officer of the Trustee in its Corporate Trust Office having direct responsibility for the administration of this Indenture
and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.

 

“Security” or “Securities”
means any note or notes, bond or bonds, debenture or debentures, or any other evidences of indebtedness, as the case may be, authenticated
and delivered under this Indenture; provided, however, that, if at any time there is more than one Person acting as Trustee
under this Indenture, “Securities”, with respect to any such Person, shall mean Securities authenticated and delivered
under this Indenture, exclusive, however, of Securities of any series as to which such Person is not Trustee.

 

“Security Register”
and “Security Registrar” have the respective meanings specified in Section 3.05.

 

“Senior Non-Preferred Obligations”
(créditos ordinarios no preferentes) means the obligations of the Company with respect to (i) the payment of
principal under the Securities and (ii) all other ordinary claims, present and future, which, upon the insolvency (concurso
de acreedores) of the Company are expressed to rank within the ordinary claims but junior to Senior Preferred Obligations.

 

“Senior Preferred Obligations”
means the obligations of the Company with respect to all ordinary claims, present and future, other than Senior Non-Preferred Obligations.

 

“Spanish Bail-in Power”
means any write-down, conversion, transfer, modification, cancellation or suspension power existing from time to time under: (i) any
law, regulation, rule or requirement applicable from time to time in the Kingdom of Spain, relating to the transposition or development
of the BRRD, including, but not limited to (a) Law 11/2015, (b) RD 1012/2015 and (c) the SRM Regulation; or (ii) any
other law, regulation, rule or requirement applicable from time to time in the Kingdom of Spain pursuant to which (a) obligations
or liabilities of banks, investment firms or other financial institutions or their affiliates can be reduced, cancelled, modified,
transferred or converted into shares, other securities, or other obligations of such Persons or any other Person (or suspended
for a temporary period or permanently) or (b) any right in a contract governing such obligations may be deemed to have been
exercised.

 

“Special Record Date”
for the payment of any Defaulted Interest on any Security means a date fixed by the Trustee pursuant to Section 3.07.

 

“SRM Regulation” means
Regulation (EU) No. 806/2014 of the European Parliament and the Council of July 15 establishing uniform rules and a uniform
procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism
and a Single Resolution Fund and amending Regulation (EU) No. 1093/2010, as amended, replaced or supplemented from time to
time (including as amended by Regulation 2019/877 of the European Parliament and the Council of May 20, 2019).

 

    6 

     

    

“Stated Maturity” means,
with respect to the principal of, or an installment of principal of or interest on, or any Additional Amount with respect to, a
Security, the date established by or pursuant to this Indenture as the fixed date on which the relevant amount is due and payable.

 

“Subsidiary” means any
entity over which the Company may have, directly or indirectly, control in accordance with Article 42 of the Spanish Commercial
Code (Código de Comercio) as approved by Royal Decree of August 22, 1885, as amended, replaced or supplemented
from time to time and/or Applicable Banking Regulations.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended, and any reference herein to the Trust Indenture Act or a particular provision
thereof shall mean such Act or provision, as the case may be, as amended, replaced or supplemented from time to time by rules or
regulations adopted by the Commission under or in furtherance of the purposes of such Act or provision, as the case may be.

 

“Trustee” means the
Person named as the “Trustee” in the first paragraph of this instrument until a successor trustee shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean the Person who is
then the Trustee hereunder, or, if a different Trustee is appointed for a particular series of Securities, the Trustee named in
the relevant indenture supplemental hereto as the Trustee for that particular series of Securities and if at any time there is
more than one such Person, “Trustee” shall mean and include each such Person; and “Trustee” as used with
respect to the Securities of any series shall mean the Trustee with respect to the Securities of such series; provided that the
Trustee shall not be the Company or any other obligor of the Securities or any Affiliate of the Company or such other obligor.

 

“United States”, except
as otherwise provided herein or in any Security, means the United States of America (including the states thereof and the District
of Columbia), and its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern
Mariana Islands).

 

“U.S. Depository” or
“Depository” means, with respect to any Security issuable or issued in the form of one or more Global Securities,
the Person designated as U.S. Depository or Depository by the Company in or pursuant to this Indenture, which Person must be, to
the extent required by applicable law or regulation, a clearing agency registered under the Securities Exchange Act of 1934, as
amended, and, if so provided with respect to any Security, any successor to such Person. If at any time there is more than one
such Person, “U.S. Depository” or “Depository” shall mean, with respect to any Securities, the qualifying
entity which has been appointed with respect to such Securities.

 

“U.S. Government Obligations”
means securities which are (i) direct obligations of the United States in which the principal of or any premium or interest
on such Security or any Additional Amounts in respect thereof shall be payable, in each case where the payment or payments thereunder
are supported by the full faith and credit of the United States or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States where the timely payment or payments thereunder are unconditionally
guaranteed as a full faith and credit obligation by the United States, which, in the case of (i) or (ii), are not callable
or redeemable at the option of the issuer or issuers thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of or
other amount with respect to any such U.S. Government Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation
or the specific payment of interest on or principal of or other amount with respect to the U.S. Government Obligation evidenced
by such depository receipt.

 

“Vice President” when
used with respect to the Company or the Trustee, means any vice president or similar officer, whether or not designated by a number
or a word or words added before or after the title “Vice President”.

 

Section 1.02. Compliance Certificates
and Opinions. Except as otherwise expressly provided in this Indenture, upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate
stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied
with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied
with, except that in the case of any such application or request as to which the furnishing of such documents or any of them is
specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate
or opinion need be furnished.

 

Section 1.03. Form of Documents
Delivered to Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any specified
Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters
and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in
one or several documents.

 

Any certificate or opinion of an officer
of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, legal
advisors, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are

 

    7 

     

    

erroneous. Any such certificate or opinion of, or representations
by, legal advisors may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations
by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession
of the Company, unless such legal advisors know, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous.

 

Where any Person is required to make, give
or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture
or any Security, they may, but need not, be consolidated and form one instrument.

 

Section 1.04. Acts of Holders;
Meetings; Record Dates. (a) Except as otherwise provided under this Indenture or the Trust Indenture Act, any request,
demand, authorization, direction, notice, consent, waiver or other action provided by or pursuant to this Indenture to be given
or taken by Holders of Securities of a series may be embodied in and evidenced by one or more written instruments of substantially
similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject
to Section 315 of the Trust Indenture Act) conclusive in favor of the Trustee, the Company and any agent of the Trustee or
the Company, if made in the manner provided in this Section.

 

(b) The fact and date of the execution
by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate
of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity
other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The
fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be
proved in any other manner which the Trustee deems sufficient.

 

(c) The Company may set any day as a record
date for the purpose of determining the Holders of Outstanding Securities of a series entitled to give, make or take any request,
demand, authorization, direction, notice, consent, waiver or other action (including an Act) provided or permitted by this Indenture
to be given, made or taken by Holders of Securities of such series; provided that the Company may not set a record date for, and
the provisions of this Section 1.04(c) shall not apply with respect to, the giving or making of any notice, declaration, request
or direction referred to in Section 1.04(d). If any record date is set pursuant to this Section 1.04(c), the Holders
of Outstanding Securities of the relevant series on such record date, and no other Holders, shall be entitled to take the relevant
action, whether or not such Holders remain Holders after such record date; provided that no such action shall be effective hereunder
unless taken on or prior to the applicable Expiration Date (as defined below) by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this Section 1.04(c) shall be construed to prevent the Company from
setting a new record date for any action for which a record date has previously been set pursuant to this Section 1.04(c)
(whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of no effect),
and nothing in this Section 1.04(c) shall be construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Securities of the relevant series on the date such action is taken. Promptly after any record date
is set pursuant to this Section 1.04(c), the Company, at its own expense, shall cause notice of such record date, the proposed
action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of Securities of
the relevant series in the manner set forth in Section 1.06.

 

(d) The Trustee may set any day as a record
date for the purpose of determining the Holders of Outstanding Securities of any series entitled to join in the giving or making
of: (i) any declaration of acceleration referred to in Section 5.02; (ii) any request to institute proceedings referred
to in Section 5.07(ii); or (iii) any direction referred to in Section 5.12, in each case with respect to Securities
of such series. If any record date is set pursuant to this Section 1.04(d), the Holders of Outstanding Securities of such
series on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction,
whether or not such Holders remain Holders after such record date; provided that no such action shall be effective hereunder unless
taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this Section 1.04(d) shall be construed to prevent the Trustee from setting a new record
date for any action for which a record date has previously been set pursuant to this Section 1.04(d) (whereupon the record
date previously set shall automatically and with no action by any Person be cancelled and of no effect), and nothing in this Section 1.04(d)
shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities
of the relevant series on the date such action is taken. Promptly after any record date is set pursuant to this Section 1.04(d),
the Trustee, at the expense of the Company, shall cause notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Company in writing and to each Holder of Securities of the relevant series in the manner set
forth in Section 1.06.

 

(e) With respect to any record date set
pursuant to this Section with respect to the Securities of a series, the party or parties hereto which set such record date may
designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier
or later day; provided that no such change shall be effective unless notice of the proposed new Expiration Date is given to the
other party or parties hereto in writing, and to each Holder of Securities of the relevant series in the manner set forth in Section 1.06,
on or prior to the existing Expiration Date. Notwithstanding the foregoing, no Expiration Date shall be designated later than the
180th day after the applicable record date and, if an Expiration Date is not designated, with

 

    8 

     

    

respect to any record date set pursuant to this Section, the
party or parties hereto which set such record date shall be deemed to have designated the 180th day after such record date as the
Expiration Date with respect thereto.

 

(f) The ownership, principal amount and
serial numbers of Securities held by any Person, and the date of the commencement and the date of the termination of holding the
same, shall be proved by the Security Register.

 

(g) Any request, demand, authorization,
direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security
and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done or suffered to be done by the Trustee, any Security Registrar, any Paying Agent or the Company in reliance
thereon, whether or not notation of such request, demand, authorization, direction, notice, consent, waiver or other Act is made
upon such Security.

 

Section 1.05. Notices, etc., to
Trustee and Company. (a) Any request, demand, authorization, direction, notice, consent, waiver or record of an Act of
Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, the Trustee
by any Holder, or any request, demand, authorization, direction, notice, consent or waiver by the Company, shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office.

 

(b) Any record of an Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, the Company by the
Trustee or any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to the Company addressed to the attention of Financial Department at Calle Azul 4, 28050
Madrid, Spain (finance.department@bbva.com), or at any other address previously furnished in writing to the Trustee by the
Company.

 

Section 1.06. Notice to Holders
of Securities; Waiver. (a) Except as otherwise expressly provided in or pursuant to this Indenture, where this Indenture
provides for notice to Holders of Securities of any event, such notice shall be sufficiently given to Holders of Securities if
in writing and mailed, first-class postage prepaid, to each Holder of a Security affected by such event, at its address as it appears
in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of
such notice. Notwithstanding the foregoing, any notice given to the Holder of a Global Security shall be sufficiently given if
such notice is given in accordance with the applicable procedures of the relevant Depository.

 

(b) Any notice which is given in the manner
provided in this Section 1.06 shall be conclusively presumed to have been duly given or provided, whether or not such Holder
actually receives the notice. Without limiting the generality of the foregoing, in any case where notice to Holders of Securities
is given by mail as provided by this Section 1.06, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Security shall affect the sufficiency of such notice with respect to other Holders of Securities.
In the case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give
such notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification
for every purpose hereunder.

 

(c) Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event,
and such waiver shall be the equivalent of such notice. Waivers of notice by Holders of Securities shall be filed with the Trustee,
but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

Section 1.07. Language of Notices.
Any request, demand, authorization, direction, notice, consent, election or waiver required or permitted under this Indenture shall
be in the English language, except that, if the Company so elects, any published notice may be in an official language of the country
of publication.

 

Section 1.08. Conflict with Trust
Indenture Act. If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture Act that is required
under such Act to be a part of and govern this Indenture, the provision of the Trust Indenture Act shall control. If any provision
hereof modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded, the provision of the
Trust Indenture Act shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be.

 

Section 1.09. Effect of Headings
and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only and shall
not affect the construction hereof.

 

Section 1.10. Successors and Assigns.
All covenants and agreements in this Indenture made by the Company shall bind its successors and assigns, whether so expressed
or not.

 

Section 1.11. Separability Clause.
In case any provision in this Indenture or any Security shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 1.12. Benefits of Indenture.
Nothing in this Indenture or any Security, express or implied, shall give to any Person, other than the parties hereto, any Security
Registrar, any Paying Agent and their successors hereunder and the Holders of Securities, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

 

    9 

     

    

Section 1.13. Governing Law. This
Indenture and the Securities (except as set forth herein and therein) shall be governed by and construed in accordance with the
laws of the State of New York applicable to agreements made or instruments entered into and, in each case, performed in said state,
except that the authorization and execution by the Company of this Indenture, the authorization, issuance and execution by the
Company of the Securities, the Securities as set forth therein and Sections 13.01, 13.02 and 15.01 hereof shall be governed by
and construed in accordance with the common laws of the Kingdom of Spain.

 

Section 1.14. Legal Holidays.
In any case where any Interest Payment Date, Stated Maturity or Maturity of any Security shall not be a Business Day, then (notwithstanding
any other provision of this Indenture or any Security other than a provision in any Security that specifically states that such
provision shall apply in lieu hereof) payment need not be made at such Place of Payment on such date, but such payment may be made
on the next succeeding day that is a Business Day with the same force and effect as if made on the Interest Payment Date or at
the Stated Maturity or Maturity, and no interest shall accrue on the amount payable on such date or at such time for the period
from and after such Interest Payment Date, Stated Maturity or Maturity, as the case may be.

 

Section 1.15. Counterparts. This
Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one
and the same instrument.

 

Section 1.16. Appointment of Agent
for Service; Submission to Jurisdiction. (a) The Company hereby designates and appoints Banco Bilbao Vizcaya Argentaria,
S.A., New York Branch, 1345 Avenue of the Americas, 45th Floor, New York, New York 10105 as its authorized agent (the “Authorized
Agent”) upon which process may be served in any suit or proceeding, other than a Bail-in Dispute (as defined in Section
1.16(c)), in any U.S. federal or state court in the Borough of Manhattan, The City of New York arising out of or relating to the
Securities or this Indenture, but for that purpose only, and agrees that service of process upon said Authorized Agent shall be
deemed in every respect effective service of process upon it in any such suit or proceeding in any U.S. federal or state court
in the Borough of Manhattan, The City of New York, New York. Such appointment shall be irrevocable so long as any of the Securities
remain Outstanding until the appointment of a successor by the Company and such successor’s acceptance of such appointment.
Upon such acceptance, the Company shall notify the Trustee of the name and address of such successor. The Company further agrees
to take any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary
to continue such designation and appointment of said Authorized Agent in full force and effect so long as any of the Securities
shall be Outstanding. The Trustee shall not be obligated and shall have no responsibility with respect to any failure by the Company
to take any such action.

 

(b) Except as provided in Section 1.16(c),
the Company hereby irrevocably submits to the non-exclusive jurisdiction of any U.S. federal or state court in the Borough of Manhattan,
The City of New York in any suit or proceeding arising out of or relating to the Securities or this Indenture, and irrevocably
waives, to the extent it may effectively do so, any objection it may have now or hereafter to the laying of the venue of any such
suit or proceeding.

 

(c) Notwithstanding anything to the contrary
in the Securities or this Indenture, the Spanish courts shall have exclusive jurisdiction in respect of any suit or proceeding
arising out of or relating to the Securities or this Indenture arising out of, relating to or in connection with the exercise of
the Spanish Bail-in Power by the Relevant Spanish Resolution Authority (a “Bail-in Dispute”) and accordingly
each of the Company, the Trustee, each Holder and beneficial owner of any Securities and each Paying Agent, transfer agent, Authenticating
Agent and Security Registrar submits, to the extent it may effectively do so, to the exclusive jurisdiction of the Spanish courts
in relation to any Bail-in Dispute. Each of the Company, the Trustee, each Holder and beneficial owner of any Securities and each
Paying Agent, transfer agent, Authenticating Agent and Security Registrar further irrevocably waives, to the extent it may effectively
do so, any objection to the Spanish courts on the grounds that they are an inconvenient or inappropriate forum in respect of any
Bail-in Dispute.

 

Section 1.17. Waiver of Jury Trial.
Each of the parties hereto and each Holder and beneficial owner of A Security by its acceptance
thereof hereby irrevocably waives any and all right to trial by jury in any action, proceeding or counterclaim arising out of or
relating to this Indenture or the Securities or any transaction related hereto or thereto to the fullest extent permitted by applicable
law.

 

ARTICLE 2 

SECURITIES FORMS

 

Section 2.01. Forms Generally.
Each Security issued pursuant to this Indenture shall be in such form as shall be established by or pursuant to a Board Resolution
or an Officer’s Certificate or in one or more indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by or pursuant to this Indenture or any indenture supplemental
hereto and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Security as evidenced by their execution of such Security.

 

The Securities shall be issuable in registered
form without coupons. Unless otherwise provided in or pursuant to this Indenture, the Securities shall not be issuable upon the
exercise of warrants.

 

    10 

     

    

Definitive Securities shall be printed,
lithographed or engraved or produced by any combination of these methods on a steel engraved border or steel engraved borders or
may be produced in any other manner, all as determined by the officers of the Company executing such Securities, as evidenced by
their execution of such Securities.

 

Section 2.02. Form of Trustee’s
Certificate of Authentication. Subject to Section 6.13, the Trustee’s certificate of authentication shall be in
substantially the following form:

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

	 	
        The Bank of New York Mellon,
        acting through its London Branch, as         Trustee

        
	 
	 	 	 
	 	 	 
	 	By:	 	 
	 	 	Authorized Officer	 

 

Section 2.03. Securities in Global
Form. The Securities may be issuable in global form, substantially in the form set forth in Exhibits B and C hereto or in
such other form established by or pursuant to a Board Resolution or an Officer’s Certificate or in one or more indentures
supplemental hereto. If Securities of a series shall be issuable in global form, any such Security may provide that it or any
number of such Securities shall represent the aggregate amount of all Outstanding Securities of such series (or such lesser amount
as is permitted by the terms thereof) from time to time endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be increased or reduced to reflect exchanges of interests in the Global Security
for Securities issued in definitive form on the books and records of the Security Registrar. Any endorsement of any Global Security
to reflect the amount, or any increase or decrease in the amount, or changes in the rights of Holders of Outstanding Securities
represented thereby shall be made in such manner and by such Person or Persons as shall be specified therein or in the Company
Order to be delivered pursuant to Section 3.03 or Section 3.04 with respect thereto. Subject to the provisions of Section 3.03
and, if applicable, Section 3.04, the Trustee shall deliver and redeliver any Global Security in permanent form in the manner
and upon instructions given by the Person specified therein or in the applicable Company Order. If a Company Order pursuant to
Section 3.03 or Section 3.04 has been, or simultaneously is, delivered, any instructions by the Company with respect
to a Global Security shall be in writing but need not be accompanied by or contained in an Officer’s Certificate and need
not be accompanied by an Opinion of Counsel.

 

Notwithstanding the provisions of Section 3.07,
unless otherwise specified as contemplated by Section 3.01, payment of principal of and any premium and interest on any Global
Security in permanent form shall be made to the Person or Persons specified in the Global Security.

 

Notwithstanding the provisions of Section 3.08
and except as provided in the preceding paragraph, the Company, the Trustee and any agent of the Company or the Trustee shall treat
as the Holder of such principal amount of Outstanding Securities represented by a permanent Global Security in registered form,
the Holder of such permanent Global Security in registered form.

 

Section 2.04. Forms of Legends
for Global Securities. Unless otherwise specified as contemplated by Section 3.01 for the Securities evidenced thereby,
every Global Security authenticated and delivered hereunder which is deposited with The Depository Trust Company shall bear legends
in substantially the following form:

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY
TRUST COMPANY (THE “DEPOSITORY”) TO A NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

ARTICLE 3 

THE SECURITIES

 

Section 3.01. Amount Unlimited;
Issuable in Series. The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture
is unlimited. The Securities may be issued in one or more series.

 

    11 

     

    

With respect to any Securities to be authenticated
and delivered hereunder, there shall be established or issued in or pursuant to a Board Resolution or an Officer’s Certificate,
or established in one or more indentures supplemental hereto, prior to the issuance of any Securities of a series,

 

(a) the title of such Securities and series
in which such Securities shall be included;

 

(b) any limit on the aggregate principal
amount of the Securities of such title or the Securities of such series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of, other Securities
of such series pursuant to Sections 3.04, 3.05, 3.06, 9.05 or 11.07 or the terms of such Securities and except for any Securities
that, pursuant to Section 3.03, are deemed never to have been authenticated and delivered hereunder);

 

(c) the price or prices (expressed as a
percentage of the aggregate principal amount thereof) at which such Securities will be issued;

 

(d) if any of such Securities are to be
issuable in global form, when any of such Securities are to be issuable in global form and (i) whether beneficial owners of
interests in any such Global Security may exchange such interests for Securities of the same series and of like tenor and of any
authorized form and denomination, and the circumstances under which any such exchanges may occur, if other than in the manner specified
in Section 3.05, (ii) the name of the Depository or the U.S. Depository, as the case may be, with respect to any Global Security
and (iii) the form of any legend or legends that shall be borne by any such Global Security in addition to or in lieu of that
set forth in Section 2.04;

 

(e) the date or dates, or the method or
methods, if any, by which such date or dates shall be determined, on which the principal, or any portion of the principal amount,
of such Securities is payable and, if other than the full principal amount thereof, the portion, or the method or methods by which
such portion is determined, of the principal amount of such Securities payable on such date or dates;

 

(f) the rate or rates (which may be fixed
or variable) at which such Securities will bear interest, if any, or the method or methods, if any, by which such rate or rates
are to be determined, the date or dates, if any, from which such interest shall accrue or the method or methods, if any, by which
such date or dates are to be determined, the Interest Payment Dates, if any, on which such interest shall be payable and the Regular
Record Date, if any, for the interest payable on Securities on any Interest Payment Date, whether and under what circumstances
Additional Amounts on such Securities or any of them shall be payable, the notice, if any, to Holders regarding the determination
of interest on a floating rate Security and the manner of giving such notice, and the basis upon which interest shall be calculated
if other than that of a 360-day year of twelve 30-day months;

 

(g) if in addition to or other than the
Borough of Manhattan, The City of New York, the place or places where the principal of, any premium and interest on or any Additional
Amounts with respect to such Securities shall be payable, any of such Securities may be surrendered for registration of transfer,
any of such Securities may be surrendered for exchange and notices or demands to or upon the Company in respect of such Securities
and this Indenture may be served; the extent to which, or the manner in which, any interest payment on a Global Security on an
Interest Payment Date will be paid and the manner in which any principal of or premium, if any, on any Global Security will be
paid;

 

(h) whether any of such Securities are
to be redeemable at the option of the Company and, if so, the period or periods within which, the price or prices at which and
the other terms and conditions upon which such Securities may be redeemed, in whole or in part, at the option of the Company and
the terms and provisions of such optional redemption;

 

(i) the denominations in which any of such
Securities shall be issuable;

 

(j) whether any of the Securities will
be issued as Original Issue Discount Securities;

 

(k) if other than the principal amount
thereof, the portion of the principal amount of any of such Securities that shall be payable upon declaration of acceleration of
the Maturity thereof pursuant to Section 5.02 or the method by which such portion is to be determined;

 

(l) if other than Dollars, the Foreign
Currency in which payment of the principal of, any premium or interest on or any Additional Amounts with respect to any of such
Securities shall be payable and the manner of determining the equivalent thereof in Dollars for any purpose, including for purposes
of the definition of “Outstanding” in Section 1.01;

 

(m) if the principal of, any premium or
interest on or any Additional Amounts with respect to, any of such Securities are to be payable, at the election of the Company
or a Holder thereof or otherwise, in a Currency other than that in which such Securities are stated to be payable, the period or
periods within which, and the other terms and conditions upon which, such election may be made, and the time and manner of determining
the exchange rate between the Currency in which such Securities are denominated or stated to be payable and the Currency in which
such Securities or any of them are to be so payable;

 

(n) whether the amount of payments of principal
of, any premium or interest on or any Additional Amounts with respect to, such Securities may be determined with reference to an
index, formula or other method or methods (which index, formula or method or methods may be based, without limitation, on one or
more Currencies, commodities, equity indices or other indices), and, if so, the terms and conditions upon which and the manner
in which such amounts shall be determined and paid or payable;

 

(o) any deletions from (which may be in
its entirety), modifications of or additions to the Event(s) of Default or covenants of the Company with respect to any of such
Securities, whether or not such Event(s) of Default or covenants are consistent with

 

    12 

     

    

the Event of Default or covenants set forth herein and any change
in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable
pursuant to Section 5.02;

 

(p) if any of such Securities are to be
issuable upon the exercise of warrants, the time, manner and place for such Securities to be authenticated and delivered;

 

(q) if any of such Securities are to be
issuable in global form and are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary
Security) only upon receipt of certain certificates or other documents or satisfaction of other conditions, then the form and terms
of such certificates, documents or conditions;

 

(r) the identity of the Trustee(s) and,
if not the Trustee, the identity of each Security Registrar, Paying Agent or Authenticating Agent with respect to such Securities;

 

(s) the “Stated Intervals”
and the “Record Date” for purposes of Sections 312(a) (in the case of non-interest bearing Securities) and 316(c),
respectively, of the Trust Indenture Act;

 

(t) any other terms of such Securities
which the Company may establish in accordance with Article 9;

 

(u) the deed of issuance (escritura
de emisión), if required, which shall be in the Spanish language, related to that series of Securities; and

 

(v) any deletions from (which may be in
its entirety), modifications of or additions to the provisions of Section 10.04.

 

All Securities of any one series shall
be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such Board Resolution
or in any indenture supplemental hereto pertaining to such Securities. The terms of the Securities of any series may provide, without
limitation, that the Securities shall be authenticated and delivered by the Trustee on original issue from time to time upon written
order of persons designated in the Officer’s Certificate or supplemental indenture and that such persons are authorized to
determine, consistent with such Officer’s Certificate or any applicable supplemental indenture, such terms and conditions
of the Securities of such series as are specified in such Officer’s Certificate or supplemental indenture. All Securities
of any one series need not be issued at the same time and, unless otherwise so provided by the Company, a series may be reopened
for issuances of additional Securities of such series or to establish additional terms of such series of Securities.

 

If any of the terms of the Securities of
any series shall be established by action taken by or pursuant to a Board Resolution, the Board Resolution shall be delivered to
the Trustee at or prior to the delivery of the Company Order pursuant to Section 3.03 for the authentication and delivery
of such Securities.

 

Section 3.02. Currency; Denominations.
Unless otherwise provided in or pursuant to this Indenture, the principal of, any premium and interest on and any Additional
Amounts with respect to the Securities shall be payable in Dollars. Unless otherwise provided in or pursuant to this Indenture,
Securities denominated in Dollars shall be issuable in registered form without coupons. Securities shall be issuable in such denominations
as are established with respect to such Securities in or pursuant to this Indenture.

 

Section 3.03. Execution, Authentication,
Delivery and Dating. Securities shall be executed on behalf of the Company by one of the representatives of the Company entitled
to do so by Board Resolution or by any member of the Board of Directors. The signature of any of these authorized representatives
on the Securities may be manual or facsimile.

 

At any time and from time to time after
the execution and delivery of this Indenture, the Company may deliver Securities, executed by the Company, to the Trustee for authentication
and, provided that the Board Resolution, Officer’s Certificate or supplemental indenture or indentures with respect
to such Securities referred to in Section 3.01 and a Company Order for the authentication and delivery of such Securities
have been delivered to the Trustee, the Trustee in accordance with the Company Order and subject to the provisions hereof and of
such Securities shall authenticate and deliver such Securities. In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to
Sections 315(a) through 315(d) of the Trust Indenture Act) shall be fully protected in relying upon,

 

(a) an Opinion of Counsel to the effect
that:

 

(i) the form or forms and terms
of such Securities, if any, have been established in conformity with the provisions of this Indenture;

 

(ii) all conditions precedent
to the authentication and delivery of such Securities have been complied with and that such Securities, when completed by appropriate
insertion and executed and delivered by the Company to the Trustee for authentication pursuant to this Indenture and authenticated
and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with
their terms, subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other similar laws affecting
the enforcement of creditors’ rights generally, and subject to general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law) and will entitle the Holders thereof to the benefits of this Indenture; such Opinion
of Counsel need express no opinion as to the availability of equitable remedies; and

 

    13 

     

    

(iii) such Securities have
been duly authorized, executed and delivered by the Company;

 

(iv) this Indenture has been
qualified under the Trust Indenture Act; and

 

(b) an Officer’s Certificate stating
that, to the best knowledge of the Persons executing such certificate, no event which is, or after notice or lapse of time would
become, an Event of Default with respect to any of the Securities shall have occurred and be continuing.

 

If all the Securities of any series are
not to be issued at one time, it shall not be necessary to deliver an Opinion of Counsel and an Officer’s Certificate at
the time of issuance of each Security, but such opinion and certificate, with appropriate modifications, shall be delivered at
or before the time of issuance of the first Security of such series. After any such first delivery, any separate request by the
Company that the Trustee authenticate Securities of such series for original issue will be deemed to be a certification by the
Company that all conditions precedent provided for in this Indenture relating to authentication and delivery of such Securities
continue to have been complied with.

 

The Trustee shall not be required to authenticate
or to cause an Authenticating Agent to authenticate any Securities if the issue of such Securities pursuant to this Indenture will
affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise be in a manner
which is not reasonably acceptable to the Trustee or if the Trustee, being advised by counsel, determines that such action may
not lawfully be taken.

 

Each Security shall be dated the date of
its authentication.

 

No Security shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose, unless there appears on such Security a certificate of authentication
substantially in the form provided for in Section 2.02 or 6.13 executed by or on behalf of the Trustee by the manual signature
of one of its authorized officers or by the Authenticating Agent. Such certificate upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and delivered hereunder.

 

Notwithstanding the foregoing, if any Security
shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 3.09, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.

 

Section 3.04. Temporary Securities.
Pending the preparation of definitive Securities, the Company may execute and deliver to the Trustee and, upon Company Order,
the Trustee shall authenticate and deliver, in the manner provided in Section 3.03, temporary Securities in lieu thereof which
are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued, in registered form. Such temporary Securities may be in global
form.

 

Except in the case of temporary Global
Securities, which shall be exchanged in accordance with the provisions thereof, if temporary Securities are issued, the Company
shall cause definitive Securities to be prepared without unreasonable delay. After the preparation of definitive Securities of
the same series and containing terms and provisions that are identical to those of any temporary Securities, such temporary Securities
shall be exchangeable for such definitive Securities upon surrender of such temporary Securities at an Office or Agency for such
Securities, without charge to any Holder thereof. Upon surrender for cancellation of any one or more temporary Securities, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive
Securities of authorized denominations of the same series and containing identical terms and provisions. Unless otherwise provided
in or pursuant to this Indenture with respect to a temporary Global Security, until so exchanged the temporary Securities of any
series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series.

 

Section 3.05. Registration, Transfer
and Exchange. (a) The Company shall cause to be kept a register (the “Security Register”) at an Office
or Agency for such series in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of the Securities of such series and of transfers of the Securities of such series. Such Office or Agency shall be
the “Security Registrar” for that series of Securities. In the event that the Trustee shall not be the Security
Registrar, it shall have the right to examine the Security Register at all reasonable times. The Bank of New York Mellon is hereby
initially appointed as Security Registrar for each series of Securities.. Unless otherwise provided with respect to a particular
series of Securities, there shall be only one Security Register for each series of Securities.

 

(b) Upon surrender for registration of
transfer of any Security of any series at any Office or Agency for such series, the Company shall execute and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series
denominated as authorized in or pursuant to this Indenture, of a like aggregate principal amount bearing a number not contemporaneously
outstanding and containing identical terms and provisions.

 

(c) At the option of the Holder, Securities
of any series may be exchanged for other Securities of the same series containing identical terms and provisions, in any authorized
denominations, and of a like aggregate principal amount, upon surrender of the Securities to be exchanged at any Office or Agency
for such series. Whenever any Securities are so surrendered for exchange, the

 

    14 

     

    

Company shall execute and the Trustee shall authenticate and
deliver the Securities which the Holder making the exchange is entitled to receive.

 

(d) Each Global Security authenticated
under this Indenture shall be registered in the name of the Depository designated for such Global Security or a nominee thereof
and delivered to such Depository or a nominee thereof or custodian therefor, and each such Global Security shall constitute a single
Security for all purposes of this Indenture. Notwithstanding any other provision of this Section, unless and until it is exchanged
in whole or in part for definitive registered securities, a Global Security may not be transferred except as a whole by the Depository
to a nominee of such Depository or by a nominee of such Depository to such Depository or by such Depository. Except as otherwise
provided in or pursuant to this Indenture, any Global Security shall be exchangeable for definitive Securities only if (i) the
Depository is at any time unwilling, unable or ineligible to continue as Depository or has ceased to be a clearing agency registered
under the Securities Exchange Act of 1934, as amended, and, in either case, a successor depository is not appointed by the Company
within 60 days of the date the Company is so informed in writing, (ii) the Company executes and delivers to the Trustee a
Company Order to the effect that it has elected to cause the issuance of definitive registered Securities, (iii) an Event
of Default has occurred and is continuing with respect to the Securities, or (iv) there shall exist such circumstances, if
any, in addition to or in lieu of the foregoing as have been specified for this purpose as contemplated by Section 3.01. If
the beneficial owners of interests in a Global Security are entitled to exchange such interests for definitive Securities, then
without unnecessary delay but in any event not later than the earliest date on which such interests may be so exchanged, the Company
shall deliver to the Trustee definitive Securities in such form and denominations as are required by or pursuant to this Indenture,
and of the same series, containing identical terms and in aggregate principal amount equal to the principal amount of such Global
Security, executed by the Company. On or after the earliest date on which such interests may be so exchanged, such Global Security
shall be surrendered from time to time by the U.S. Depository or such other Depository as shall be specified in the Company Order
with respect thereto, and in accordance with instructions given to the Trustee and the U.S. Depository or such other Depository,
as the case may be (which instructions shall be in writing but need not be contained in or accompanied by an Officer’s Certificate
or be accompanied by an Opinion of Counsel), as shall be specified in the Company Order with respect thereto to the Trustee, as
the Company’s agent for such purpose, to be exchanged, in whole or in part, for definitive Securities as described above
without charge. The Trustee shall authenticate and make available for delivery, in exchange for each portion of such surrendered
Global Security, a like aggregate principal amount of definitive Securities of the same series of authorized denominations and
of like tenor as the portion of such Global Security to be exchanged, as shall be specified by the beneficial owner thereof; provided,
however, that no such exchanges may occur during a period beginning at the opening of business 15 days before any selection
of Securities of the same series to be redeemed and ending on the relevant Redemption Date. Promptly following any such exchange
in part, such Global Security shall be returned by the Trustee to such Depository or the U.S. Depository, as the case may be, or
such other Depository or U.S. Depository referred to above in accordance with the instructions of the Company referred to above.
If a Security is issued in exchange for any portion of a Global Security after the close of business at the Office or Agency for
such Security where such exchange occurs on or after (i) any Regular Record Date for such Security and before the opening
of business at such Office or Agency on the next Interest Payment Date, or (ii) any Special Record Date for such Security
and before the opening of business at such Office or Agency on the related proposed date for payment of interest or Defaulted Interest,
as the case may be, interest shall not be payable on such Interest Payment Date or proposed date for payment, as the case may be,
in respect of such Security, but shall be payable on such Interest Payment Date or proposed date for payment, as the case may be,
only to the Person to whom interest in respect of such portion of such Global Security shall be payable in accordance with the
provisions of this Indenture.

 

(e) All Securities issued upon any registration
of transfer or exchange of Securities shall be the valid obligations of the Company evidencing the same debt and entitling the
Holders thereof to the same benefits under this Indenture as the Securities surrendered upon such registration of transfer or exchange.

 

(f) Every Security presented or surrendered
for registration of transfer or for exchange or redemption shall (if so required by the Company or the Security Registrar for such
Security) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security
Registrar for such Security duly executed by the Holder thereof or his attorney duly authorized in writing.

 

(g) No service charge shall be made for
any registration of transfer or exchange, or redemption of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge and any other expenses (including the fees and expenses of the Trustee) that may
be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 3.04,
9.05 or 11.07 not involving any transfer.

 

(h) Except as otherwise provided in or
pursuant to this Indenture, the Company shall not be required (i) to issue, register the transfer of or exchange any Securities
during a period beginning at the opening of business 15 days before the day of the selection for redemption of Securities of like
tenor and the same series under Section 11.03 and ending at the close of business on the day of such selection, or (ii) to
register the transfer of or exchange any Security so selected for redemption in whole or in part, except in the case of any Security
to be redeemed in part, the portion thereof not to be redeemed.

 

Section 3.06. Mutilated, Destroyed,
Lost and Stolen Securities. (a) If any mutilated Security is surrendered to the Trustee, subject to the provisions of
this Section 3.06, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security
of the same series containing identical terms and of like principal amount and bearing a number not contemporaneously outstanding,
appertaining to the surrendered Security.

 

(b) If there be delivered to the Company
and to the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security, and (ii) such
security or indemnity as may be required by them to save each of them and any agent of either of

 

    15 

     

    

them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a protected purchaser, the Company shall execute and, upon the Company’s
request, the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Security, a new Security of the same series containing identical terms and of like principal amount and bearing a number not contemporaneously
outstanding.

 

(c) Notwithstanding the foregoing provisions
of this Section 3.06, in case any mutilated, destroyed, lost or stolen Security has become or is about to become due and payable,
the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

(d) Upon the issuance of any new Security
under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

(e) Every new Security issued pursuant
to this Section in lieu of any mutilated, destroyed, lost or stolen Security, shall constitute a separate obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities of such series, if any, duly
issued hereunder.

 

(f) The provisions of this Section, as
amended or supplemented pursuant to this Indenture with respect to particular Securities or generally, shall be exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

 

Section 3.07. Payment of Interest
and Certain Additional Amounts; Rights to Interest and Certain Additional Amounts Preserved. (a) Unless otherwise provided
in or pursuant to this Indenture, any interest on and any Additional Amounts with respect to any Security which shall be payable,
and are punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name such Security
(or one or more Predecessor Securities) is registered as of the close of business on the Regular Record Date for such interest.

 

The Company shall, before 10:00 a.m. (New
York time) on each due date of the principal or (and premium, if any) or interest or any other amounts due on any Securities, deposit
with a Paying Agent a sum in immediately available funds sufficient to pay the principal (and premium, if any) or interest or any
other amounts due or so becoming due, such sum to be held in trust by the Paying Agent for the benefit of the Persons entitled
to such principal, premium or interest or any other amounts due and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee and the Paying Agent of its action or failure so to act. Subject to actual receipt of such funds as
provided by this Section by the designated Paying Agent, such Paying Agent shall make payments on the Securities in accordance
with the provisions of this Indenture.

 

(b) Unless otherwise provided in or pursuant
to this Indenture, any interest on and any Additional Amounts with respect to any Security which shall be payable, but shall not
be punctually paid or duly provided for, on any Interest Payment Date for such Security (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the Holder thereof on the relevant Regular Record Date by virtue of having been such Holder;
and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (i) or (ii) below:

 

(i) The Company may elect to
make payment of any Defaulted Interest to the Person in whose name such Security (or a Predecessor Security thereof) shall be registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on such Security
and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit on or prior to the date of the proposed payment, such money when so deposited to be held in trust for
the benefit of the Person entitled to such Defaulted Interest as in this Clause provided. Thereupon, the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than ten days prior to
the date of the proposed payment and not less than ten days after the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first class
postage prepaid, to the Holder of such Security (or a Predecessor Security thereof) at its address as it appears in the Security
Register not less than ten days prior to such Special Record Date. The Trustee shall, at the instruction of the Company, in the
name and at the expense of the Company, cause a similar notice to be published at least once in an Authorized Newspaper of general
circulation in the Borough of Manhattan, The City of New York, but such publication shall not be a condition precedent to the establishment
of such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having
been mailed as aforesaid, such Defaulted Interest shall be paid to the Person in whose name such Security (or a Predecessor Security
thereof) shall be registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the
following Clause (ii).

 

(ii) The Company may make payment
of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which
such Security may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this Clause, such payment shall be deemed practicable by the Trustee.

 

    16 

     

    

(c) If so provided in the form of Securities
of any particular series pursuant to the provisions of this Indenture, at the option of the Company, interest on Securities that
bear interest may be paid by mailing a check to the address of the Person entitled thereto as such address shall appear in the
Security Register or by transfer to an account maintained by the payee with a bank located in the United States.

 

(d) Subject to the foregoing provisions
of this Section and Section 3.05, each Security delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by
such other Security.

 

Section 3.08. Persons Deemed Owners.
(a) Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name such Security is registered in the Security Register as the owner of
such Security for the purpose of receiving payment of principal of, any premium and (subject to Section 3.07) interest on
and any Additional Amounts with respect to such Security and for all other purposes whatsoever, whether or not any payment with
respect to such Security shall be overdue, and neither the Company nor the Trustee or any agent of the Company or the Trustee shall
be affected by notice to the contrary.

 

(b) No holder of any beneficial interest
in any Global Security held on its behalf by a Depository shall have any rights under this Indenture with respect to such Global
Security, and such Depository may be treated by the Company, the Trustee, and any agent of the Company or the Trustee as the owner
of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall impair, as between the
Depository and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights
of the Depository as Holder of any Security. None of the Company, the Trustee, any Paying Agent or the Security Registrar will
have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership
interests of a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

 

Section 3.09. Cancellation. All
Securities surrendered for payment, redemption, registration of transfer or exchange shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee, and any such Securities, as well as Securities surrendered directly to the Trustee
for any such purpose, shall be cancelled promptly by the Trustee. The Company may at any time deliver to the Trustee for cancellation
any Securities previously authenticated and delivered hereunder, and all Securities so delivered shall be cancelled promptly by
the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by or pursuant to this Indenture. All cancelled Securities held by the Trustee shall be cancelled
by the Trustee in accordance with its customary practice, unless by a Company Order the Company directs their return to it.

 

Section 3.10. Computation of Interest.
Except as otherwise provided in or pursuant to this Indenture, interest on the Securities shall be computed on the basis of
a 360-day year of twelve 30-day months.

 

ARTICLE 4 

SATISFACTION AND DISCHARGE OF INDENTURE

 

Section 4.01. Satisfaction and
Discharge. (a) Subject to compliance with the Applicable Banking Regulations and, if required, the prior consent of the
Regulator, upon the direction of the Company by a Company Order, this Indenture shall cease to be of further effect with respect
to any series of Securities specified in such Company Order (except as to any surviving rights of registration of transfer or exchange
or conversion of Securities of such series herein expressly provided for and any right to receive Additional Amounts), and the
Trustee, on receipt of a Company Order, at the expense of the Company, shall execute proper instruments acknowledging satisfaction
and discharge of this Indenture as to such series, when

 

(i) either

 

(A) all Securities of such
series theretofore authenticated and delivered (other than (y) Securities of such series which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 3.06 and (z) Securities of such series for whose payment
money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company
or discharged from such trust, as provided in Section 10.03) have been delivered to the Trustee for cancellation; or

 

(B) all Securities of such
series not theretofore delivered to the Trustee for cancellation have become due and payable, and the Company has deposited or
caused to be deposited with the Trustee as trust funds in trust for such purpose, money in an amount sufficient to pay and discharge
the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, including the principal of,
any premium and interest on, and any Additional Amounts with respect to, such Securities, to the date of such deposit;

 

(ii) the Company has paid or
caused to be paid all other sums payable hereunder by the Company with respect to the Outstanding Securities of such series; and

 

(iii) the Company has delivered
to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of this Indenture as to such series have been complied with.

 

    17 

     

    

(b) In addition, upon the exercise of the
Spanish Bail-in Power with respect to a series of Securities which results in the redemption, cancellation, or the conversion into
other securities, of all the Amounts Due on the Securities of such series or such Securities otherwise ceasing to be outstanding,
the Indenture shall be deemed satisfied and discharged as to such series of Securities and such Securities shall thereafter be
deemed to be not “Outstanding”.

 

(c) In the event there are Securities of
two or more series hereunder, the Trustee shall be required to execute an instrument acknowledging satisfaction and discharge of
this Indenture only if requested to do so with respect to Securities of such series as to which it is Trustee and if the other
conditions thereto are met.

 

(d) Notwithstanding the satisfaction and
discharge of this Indenture with respect to any series of Securities, the obligations of the Company to the Trustee under Sections
6.06 and 6.07 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of clause (a)(i) of this
Section, the obligations of the Trustee under Sections 3.05, 3.06 and the last paragraph of Section 10.03 shall survive.

 

ARTICLE 5 

REMEDIES

 

Section 5.01. Event of Default.
“Event of Default”, wherever used herein with respect to Securities of any series, means (whatever the reason
for such Event of Default and whether it shall be voluntary or be effected by operation of law or pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or governmental body) that, except as set forth in
the last paragraph of this Section 5.01, an order shall have been made by any competent court commencing insolvency proceedings
(procedimiento concursal) against the Company or an order of any competent court or administrative agency shall have been
made or a resolution shall have been passed by the Company for the dissolution or winding up of the Company (except (i) in
the case of a reconstruction, consolidation, amalgamation or merger carried out in compliance with the requirements set forth in
Section 8.01 (in this case, even without being approved by an Act of the Holders of the Securities of such series) or (ii) in
any such case for the purpose of a reconstruction or a consolidation or an amalgamation or a merger which has been approved by
an Act of the Holders of the Securities of such series).

 

Notwithstanding any other provision in
this Indenture, any Resolution or Early Intervention with respect to the Company shall not, in and of itself and without regard
to any other fact or circumstance, constitute a default or an Event of Default under the immediately preceding paragraph or any
other provision of this Indenture with respect to the Securities of any series. In addition, neither (i) a reduction or cancellation,
in part or in full, of the Amounts Due on the Securities of any series or the conversion thereof into another security or obligation
of the Company or another Person, in each case as a result of the exercise of the Spanish Bail-in Power by the Relevant Spanish
Resolution Authority with respect to the Company, nor (ii) the exercise of the Spanish Bail-in Power by the Relevant Spanish
Resolution Authority with respect to the Securities of any series, shall constitute an Event of Default or default under this Indenture
or the Securities of any series or otherwise constitute non-performance of a contractual obligation, or entitle the Holders of
the Securities of any such series to any remedies, which are hereby expressly waived. In addition, no repayment or payment of Amounts
Due on the Securities of any series shall become due and payable or be paid after the exercise of the Spanish Bail-in Power by
the Relevant Spanish Resolution Authority if, and to the extent that, such amounts have been reduced, converted, cancelled, amended
or altered as a result of such exercise.

 

Section 5.02. Acceleration of Maturity;
Rescission and Annulment. (a) If an Event of Default with respect to Securities of any series at the time Outstanding
occurs and is continuing, then the principal, or such lesser amount as may be provided for in the Securities of such series, of
such Outstanding Securities or Security, as the case may be, shall be deemed to have been declared, and shall become, immediately
and automatically due and payable. For the avoidance of doubt, only an Event of Default (rather than any breach or default under
the Indenture or the Securities of any series) may give rise to a declaration of acceleration pursuant to this Section 5.02.

 

(b) At any time after such a declaration
of acceleration with respect to Securities or Security, as the case may be, of any series has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of not
less than a majority in principal amount of the Outstanding Securities of such series, may by Act, rescind and annul such declaration
and its consequences if:

 

(i) the Company has paid or
deposited with the Trustee a sum of money sufficient to pay:

 

(A) all overdue installments
of any interest on and Additional Amounts with respect to all Securities of such series,

 

(B) the principal of and any
premium on any Securities of such series which have become due otherwise than by such declaration of acceleration and interest
thereon and any Additional Amounts with respect thereto at the rate or rates borne by or provided for in such Securities,

 

(C) to the extent that payment
of such interest or Additional Amounts is lawful, interest upon overdue installments of any interest and Additional Amounts at
the rate or rates borne by or provided for in such Securities, and

 

    18 

     

    

(D) all sums paid or advanced
by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel
and all other amounts due to the Trustee under Section 6.07; and

 

(ii) all Event(s) of Default
with respect to Securities of such series shall have been cured or waived as provided in Section 5.13.

 

(c) No such rescission shall affect any
subsequent default or impair any right consequent thereon.

 

Section 5.03. Collection of Indebtedness
and Suits for Enforcement by Trustee. (a) The Company covenants that if:

 

(i) default is made in the
payment of any installment of interest on or any Additional Amounts with respect to any Security when such interest or Additional
Amounts shall have become due and payable and such default continues for a period of 21 days, or

 

(ii) default is made in the
payment of the principal of or any premium on any Security at its Maturity and such default is not remedied, in the case of a default
in the payment of the principal, within 14 days and, in the case of a default in the payment of any premium, within 30 days,

 

the Company shall, upon demand of the Trustee, pay to the Trustee,
for the benefit of the Holders of such Securities, the whole amount of money then due and payable with respect to such Securities,
with interest upon the overdue principal, any premium and, to the extent that payment of such interest shall be legally enforceable,
upon any overdue installments of interest and Additional Amounts at the rate or rates borne by or provided for in such Securities,
and, in addition thereto, such further amount of money as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and all other amounts
due to the Trustee under Section 6.07.

 

(b) If the Company fails to pay the money
it is required to pay the Trustee pursuant to the preceding paragraph forthwith upon the demand of the Trustee, the Trustee, acting
upon an Act of the Holders of Securities of such series or in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the money so due and unpaid, and may prosecute such proceeding to judgment or final decree,
and may enforce the same against the Company or any other obligor upon such Securities, and collect the monies adjudged or decreed
to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever
situated.

 

(c) If an Event of Default with respect
to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights
and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture
or such Securities or in aid of the exercise of any power granted herein or therein, or to enforce any other proper remedy.

 

No remedy against the Company other than
as provided in this Article 5 shall be available to the Holders, whether for the recovery of amounts owing to the Holders in respect
of the Securities of any series or under this Indenture or in respect of any breach by the Company of any of its other obligations
under or in respect of the Securities of any series or under this Indenture.

 

Section 5.04. Trustee May File
Proofs of Claim. (a) In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other similar judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or such other obligor or their creditors, the Trustee (irrespective of whether the principal
of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand on the Company for the payment of any overdue principal, premium, interest or Additional
Amounts) shall be entitled and empowered, by intervention in such proceeding or otherwise,

 

(i) to file and prove a claim
for the whole amount, or such lesser amount as may be provided for in the Securities of such series, of the principal and any premium,
interest and Additional Amounts owing and unpaid in respect of the Securities and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents or counsel and of the Holders of Securities) allowed in such judicial proceeding,
and

 

(ii) to collect and receive
any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder and beneficial owner
of Securities to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders of Securities, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel and any other amounts due to the Trustee under Section 6.07.

 

(b) Nothing herein contained shall be deemed
to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder or beneficial owner of a Security
any plan of reorganization, arrangement, adjustment or composition affecting the

 

    19 

     

    

Securities or the rights of any Holder or beneficial owner thereof,
or to authorize the Trustee to vote in respect of the claim of any Holder or beneficial owner of a Security in any such proceeding.

 

Section 5.05. Trustee May Enforce
Claims without Possession of Securities. All rights of action and claims under this Indenture or any of the Securities may
be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery or judgment, after provision for the payment of the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, shall be for the ratable benefit of each and every Holder of a Security in respect of which
such judgment has been recovered.

 

Section 5.06. Application of Money
Collected. Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date
or dates fixed by the Trustee and, in case of the distribution of such money on account of principal, or any premium, interest
or Additional Amounts, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:

 

FIRST: To the payment of all amounts due
to the Trustee and any predecessor Trustee under Section 6.07;

 

SECOND: To the payment of the amounts then
due and unpaid upon the Securities for principal and any premium, interest and Additional Amounts in respect of which or for the
benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the aggregate
amounts due and payable on such Securities for principal and any premium, interest and Additional Amounts, respectively;

 

THIRD: The balance, if any, to the Company
or any other Person or Persons entitled thereto.

 

Section 5.07. Limitations on Suits.
No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 

(i) such Holder has previously
given written notice to the Trustee of a continuing Event of Default with respect to the Securities of such series;

 

(ii) the Holders of not less
than 25% in principal amount of the Outstanding Securities of such series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder with respect to such series of Securities
and such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred
in compliance with such request;

 

(iii) the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

(iv) no direction inconsistent
with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount
of the Outstanding Securities of such series;

 

it being understood and intended that no one or more of such
Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture or any Security
to affect, disturb or prejudice the rights of any other such Holders or Holders of Securities of any other series, or to obtain
or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all such Holders.

 

Section 5.08. Unconditional Right
of Holders to Receive Principal and any Premium, Interest and Additional Amounts. Except as set forth in the immediately following
paragraph, notwithstanding any other provision in this Indenture and in any Security, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal of, any premium and (subject to Section 3.07)
interest on, and any Additional Amounts with respect to, such Security on or after the respective Stated Maturity or Maturities
therefor specified in such Security (or, in the case of redemption, on or after the Redemption Date) and to institute suit for
the enforcement of any such payment, and such right shall not be impaired or affected without the consent of such Holder, except
that Holders of not less than 75% in principal amount of Outstanding Securities of a series may consent by Act, on behalf of the
Holders of all Outstanding Securities of such series, to the postponement of the Stated Maturity of any installment of interest
for a period not exceeding three years from the original Stated Maturity of such installment (which original Stated Maturity shall
have been fixed, for the avoidance of doubt, prior to any previous postponements of such installment).

 

The Securities of any series may be subject
to the exercise of the Spanish Bail-in Power, and no Holder of any Security shall have any claim against the Company in connection
with or arising out of any such exercise. No repayment or payment of Amounts Due on the Securities of any series will become due
and payable or be paid after the exercise of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority if, and to
the extent that, such amounts have been reduced, converted, cancelled, amended or altered as a result of such exercise.

 

    20 

     

    

Section 5.09. Restoration of Rights
and Remedies. If the Trustee or any Holder of a Security has instituted any proceeding to enforce any right or remedy under
this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case the Company, the Trustee and each such Holder shall, subject to any determination
in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies
of the Trustee and each such Holder shall continue as though no such proceeding had been instituted, to the extent permitted by
applicable law.

 

Section 5.10. Rights and Remedies
Cumulative. Subject to the limitations on remedies provided for in the last paragraph of Section 5.03, except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section 3.06, no right or remedy herein conferred upon or reserved to the Trustee or to each and every Holder of a Security
is intended to be exclusive of any other right or remedy, and every right and remedy, to the extent permitted by law, shall be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not, subject as aforesaid, prevent
the concurrent assertion or employment of any other appropriate right or remedy, to the extent permitted by applicable law.

 

Section 5.11. Delay or Omission
Not Waiver. No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon
any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein, except as otherwise provided in applicable law. Every right and remedy given by this Article or by law to the Trustee
or to any Holder of a Security may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by
such Holder, as the case may be.

 

Section 5.12. Control by Holders
of Securities. The Holders of a majority in principal amount of the Outstanding Securities of the relevant series, by Act,
shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred on the Trustee with respect to the Securities of such series, provided that:

 

(i) such direction shall not
be in conflict with any rule of law or with this Indenture or with the Securities of any series,

 

(ii) the Trustee may take any
other action deemed proper by the Trustee which is not inconsistent with such direction, and

 

(iii) such direction is not
unduly prejudicial to the rights of the other Holders of Securities of such series not joining in such action.

 

Section 5.13. Waiver of Past Defaults.
(a) Subject to Section 5.02(b)(i)(D), the Holders of not less than a majority in principal amount of the Outstanding
Securities of any series on behalf of the Holders of all the Securities of such series may, by Act, waive any past default hereunder
with respect to such series and its consequences, except a default:

 

(i) in the payment of the principal
of or any premium, or interest on, or any Additional Amounts with respect to, any Security of such series, or

 

(ii) in respect of a covenant
or provision hereof which under Article 9 cannot be modified or amended without the consent of the Holder of each Outstanding Security
of such series affected.

 

(b) Upon any such waiver, such default
shall cease to exist, and any Event of Default arising therefrom (if applicable) shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

 

Section 5.14. Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay
the costs of such suit, and may assess reasonable costs against any such party litigant, in the manner and to the extent provided
in the Trust Indenture Act; provided that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court
to require such an undertaking or to make such an assessment in any suit instituted by the Company.

 

ARTICLE 6

THE TRUSTEE

 

Section 6.01. Certain Duties and
Responsibilities. The duties and responsibilities of the Trustee shall be as specifically set forth in this Indenture and the
Trust Indenture Act and no implied covenants nor obligations shall be read into this Indenture against the Trustee, except as otherwise
required by the Trust Indenture Act. Whether or not herein or therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions
of this Section. If a default or Event of Default has occurred or is continuing, the Trustee shall exercise such of the rights
and powers vested in it by the Indenture, and use the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of its own affairs.

 

    21 

     

    

Section 6.02. Certain Rights of
Trustee. Except as set forth in this Article, no provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act or its own willful misconduct.

 

Subject to Sections 315(a) through 315(d)
of the Trust Indenture Act:

 

(a) the Trustee may rely and shall be protected
in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, or other paper or document reasonably believed by it to be genuine and to have
been signed or presented by the proper party or parties;

 

(b) any request or direction of the Company
mentioned herein shall be sufficiently evidenced by a Company Request or a Company Order (in each case, other than delivery of
any Security, to the Trustee for authentication and delivery pursuant to Section 3.03 which shall be sufficiently evidenced
as provided therein) and any resolution of the Board of Directors of the Company may be sufficiently evidenced by a Board Resolution;

 

(c) whenever in the administration of this
Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence shall be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officer’s Certificate;

 

(d) the Trustee may consult with counsel
and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(e) the Trustee shall be under no obligation
to exercise any of the rights or powers vested in it by or pursuant to this Indenture at the request or direction of any of the
Holders of Securities of any series pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

 

(f) the Trustee shall not be bound to make
any investigation or inquiry into (i) the performance of the Company of any of its covenants set forth in this Indenture and
(ii) the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, other paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine, during business hours and upon reasonable notice, the books, records
and premises of the Company, personally or by agent or attorney; provided that the Trustee shall not be entitled to such information
which the Company is prevented from disclosing as a matter of law or contract;

 

(g) the Trustee shall not be charged with
knowledge of the occurrence of any default or an Event of Default, and such knowledge shall not be imparted to the Trustee, unless
a Responsible Officer of the Trustee has received written notice of such default or Event of Default from the Company or any Holder
of an Outstanding Security of the relevant series and such notice references the specific default or Event of Default under the
Securities of such series and this Indenture, and is given in the manner required by Section 1.05 hereof;

 

(h) the Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee
shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

 

(i) no provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder, or the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment
of such funds or adequate indemnity against such risk or liability is not reasonably assured to it;

 

(j) the rights, privileges, protections,
immunities and benefits given to the Trustee pursuant to this Indenture, including, without limitation, the indemnification of
the Trustee pursuant to Section 6.07(a)(iii), are extended to, and shall be enforceable by, the Trustee, the Security Registrar,
transfer agent, Paying Agent and each other agent, custodian and other Person employed to act hereunder, provided, that
each such Person shall be deemed to have acknowledged, accepted and agreed to be bound, and will be bound, by Article 15 hereof,
on the same terms as the Trustee, with respect to any BRRD Liability of the Company to any such Person;

 

(k) under no circumstances will the Trustee
be liable to the Company for any special, indirect, punitive or consequential loss (being loss of business, goodwill, opportunity
or profit) even if advised of the possibility of such loss or damage;

 

(l) the Trustee may request that the Company
deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time
to take specified actions pursuant to this Indenture;

 

(m) the permissive rights of the Trustee
enumerated herein shall not be construed as duties;

 

(n) the Trustee will not be liable if prevented
or delayed in performing any of its obligations by reason of any present or future law applicable to it, by any governmental or
regulatory authority or by any circumstance beyond its control;

 

(o) the Trustee shall not be liable with
respect to any action it takes or omits to take in good faith and reasonably and actually believed by it to be authorized or within
the rights or powers conferred upon it pursuant to Section 5.12;

 

(p) in no event shall the Trustee be responsible
or liable for any failure or delay in the performance of its obligations hereunder arising out of, or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work

 

    22 

     

    

stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God; it being understood that the Trustee shall use reasonable best efforts
which are consistent with generally accepted practices in the banking industry to resume performance as soon as practicable under
the circumstances; and

 

(q) following the occurrence of an Event
of Default, the Trustee shall be entitled to require all agents (including the Paying Agent) to act pursuant to its instruction.

 

Section 6.03. Notice of Defaults.
Within 90 days after the occurrence of any default hereunder known to the Trustee with respect to the Securities of any series,
the Trustee shall transmit by mail to all Holders of Securities of such series entitled to receive reports pursuant to Section 7.03(c),
notice of such default hereunder, unless such default shall have been cured or waived; provided, however, that the Trustee
shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee
of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the best
interest of the Holders of Securities of such series. For the purpose of this Section, the term “default” means
any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such
series.

 

Section 6.04. Not Responsible for
Recitals or Issuance of Securities. The recitals contained herein and in the Securities, except the Trustee’s and any
Authenticating Agent’s certificates of authentication, shall be taken as the statements of the Company and neither the Trustee
nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the Securities, except that the Trustee represents that it is duly authorized to execute
and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it
in a Statement of Eligibility and Qualification on Form T-1 supplied to the Company are true and accurate, subject to the qualifications
set forth therein. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company
of the Securities or the proceeds thereof.

 

Section 6.05. May Hold Securities.
The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other Person that may be an agent of
the Trustee or the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject
to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company with the same rights it would have if
it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other Person.

 

Section 6.06. Money Held in Trust.
Except as provided in Section 10.03, money held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law and shall be held uninvested. The Trustee shall be under no liability for interest on any
money received by it hereunder.

 

Section 6.07. Compensation and
Reimbursement. (a) The Company agrees:

 

(i) to pay to the Trustee from
time to time reasonable compensation for all services rendered by the Trustee hereunder as agreed between the Company and the Trustee
(which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

 

(ii) except as otherwise expressly
provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses
and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to the Trustee’s
negligence or bad faith; and

 

(iii) to indemnify the Trustee
(which for the purposes of this Section 6.07(a)(iii) shall include its officers, directors, employees and agents acting on
behalf of the Trustee) for, and to hold it harmless against, any loss, liability or expense (other than taxes based upon, measured
by or determined by the income of the Trustee) incurred without negligence or bad faith on its part, arising out of or in connection
with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent
that any such loss, liability or expense may be attributable to its negligence or bad faith.

 

The Trustee shall notify the Company in
writing of the commencement of any action or claim in respect of which indemnification may be sought promptly after a Responsible
Officer of the Trustee becomes aware of such commencement (provided that the failure to make such notification shall not affect
the Trustee’s rights hereunder) and the Company shall be entitled to participate therein. The Trustee shall not be authorized
to settle a claim without the written consent of the Company, which consent shall not be unreasonably withheld or delayed.

 

(b) As security for the performance of
the obligations of the Company under this Section, the Trustee shall have a lien prior to the Securities of any series upon all
property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of, and premium
or interest on or any Additional Amounts with respect to Securities.

 

(c) Any compensation or expense incurred
by the Trustee after a default specified by Section 5.01 is intended to constitute an expense of administration under any
then applicable bankruptcy or insolvency law. “Trustee” for purposes of this Section 6.07 shall include any predecessor
Trustee but the negligence or bad faith of any Trustee shall not affect the rights of any other Trustee under this Section 6.07.
The provisions of this Section 6.07 shall survive the resignation or removal of the Trustee and the termination or, if applicable,
the satisfaction or discharge, of this Indenture including any termination under any bankruptcy law

 

    23 

     

    

and (without prejudice to Section 15.02 of this Indenture
if, and to the extent applicable, as set out therein) any exercise of the Spanish Bail-in Power with respect to the Securities
of any series.

 

(d) In addition, and without prejudice
to the rights provided to the Trustee under any of the provisions of this Indenture, when the Trustee incurs expenses or renders
services after an Event of Default specified in Section 5.01 hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended, to the extent permitted under applicable law, to constitute
expenses of administration under any bankruptcy law.

 

(e) For the avoidance of doubt, any and
all amounts due and owing to the Trustee under this Section 6.07 shall be payable within 6 (six) days of the date on which
the Trustee can demand payment hereunder for purposes of this Indenture and for purposes of Article 42(1)(e) and Article 46 of
Law 11/2015.

 

Section 6.08. Corporate Trustee
Required; Eligibility. There shall at all times be a Trustee hereunder that is a Corporation, organized and doing business
under the laws of the United States or of any state or territory or of the District of Columbia (or a corporation or other person
permitted to act as Trustee by the Commission), eligible under Sections 310(a)(1), 310(a)(5) and 310(b) of the Trust Indenture
Act to act as trustee under an indenture qualified under the Trust Indenture Act and that has a combined capital and surplus (computed
in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000 subject to supervision or examination
by a U.S. federal or state authority. If at any time the Trustee shall cease to be eligible in accordance with the provisions of
this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

 

Section 6.09. Resignation and Removal;
Appointment of Successor. (a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant
to this Article shall become effective until the acceptance of appointment by the successor Trustee pursuant to Section 6.10.

 

(b) The Trustee may resign at any time
with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument of acceptance
by a successor Trustee required by Section 6.10 shall not have been delivered to the Trustee within 30 days after the giving
of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to such series.

 

(c) The Trustee may be removed at any time
with respect to the Securities of any series by Act of the Holders of a majority in principal amount of Outstanding Securities
of such series.

 

(d) If at any time:

 

(i) the Trustee shall fail
to comply with the obligations imposed upon it under Section 310(b) of the Trust Indenture Act with respect to Securities
of any series after written request therefor by the Company or any Holder of a Security of such series who has been a bona fide
Holder of a Security of such series for at least six months, or

 

(ii) the Trustee shall cease
to be eligible under Section 6.08 and shall fail to resign after written request therefor by the Company or any such Holder,
or

 

(iii) the Trustee shall become
incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed
or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,

 

then, in any such case, (A) the Company, by or pursuant
to a Company Order, may remove the Trustee with respect to all Securities or the Securities of such series, or (B) subject
to Section 315(e) of the Trust Indenture Act, any Holder of a Security who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee with respect to all Securities of such series and the appointment of a successor Trustee or Trustees
with respect to such series of Securities.

 

(e) If the Trustee shall resign, be removed
or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities
of one or more series, the Company, by or pursuant to a Company Order, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable requirements of Section 6.10. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such
series, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable
requirements of Section 6.10, become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series
shall have been so appointed by the Company or the Holders of Securities and accepted appointment in the manner required by Section 6.10,
any Holder of a Security who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

 

(f) The Company shall give notice of each
resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee
with respect to the Securities of any series by instructing such successor Trustee to mail written notice of such event by first
class mail, postage prepaid, to the Holders of Securities, if any, of such series

 

    24 

     

    

as their names and addresses appear in the Security Register.
Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its
Corporate Trust Office.

 

Section 6.10. Acceptance of Appointment
by Successor.

 

(a) Upon the appointment hereunder of any
successor Trustee with respect to all Securities, such successor Trustee so appointed shall execute, acknowledge and deliver to
the Company and the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested
with all the rights, powers, trusts and duties hereunder of the retiring Trustee but, on the request of the Company or such successor
Trustee, such retiring Trustee, upon payment of its charges, shall execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and, subject to Section 10.03, shall duly assign, transfer
and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder, subject nevertheless to its
claim, if any, provided for in Section 6.07.

 

(b) Upon the appointment hereunder of any
successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and such
successor Trustee shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment
and which (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in,
such successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (ii) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and (iii) shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of
the same trust, that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts
hereunder administered by any other such Trustee and that no Trustee shall be responsible for any notice given to, or received
by, or any act or failure to act on the part of any other Trustee hereunder, and, upon the execution and delivery of such supplemental
indenture, the resignation or removal of the retiring Trustee shall become effective to the extent provided therein, such retiring
Trustee shall have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations
vested in the Trustee under this Indenture with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates other than as hereinafter expressly set forth, and such successor Trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities
of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or such successor
Trustee, such retiring Trustee, upon payment of its charges with respect to the Securities of that or those series to which the
appointment of such successor relates and subject to Section 10.03 shall duly assign, transfer and deliver to such successor
Trustee, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder
with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, subject to its
claim, if any, provided for in Section 6.07.

 

(c) Upon request of any Person appointed
hereunder as a successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section,
as the case may be.

 

(d) No Person shall accept its appointment
hereunder as a successor Trustee with respect to the Securities of a series unless at the time of such acceptance such successor
Trustee shall be qualified and eligible under this Article.

 

Section 6.11. Merger, Conversion,
Consolidation or Succession to Business. Any Corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any Corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any Corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor
of the Trustee hereunder, provided such Corporation shall be otherwise qualified and eligible under this Article, without the execution
or filing of any paper or any further act on the part of any of the parties hereto other than the provision of written notice to
the Company. In case any Securities shall have been authenticated but not delivered by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.

 

Section 6.12. Preferential Collection
of Claims Against Company. If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon
the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor).

 

Section 6.13. Appointment of Authenticating
Agent. (a) The Trustee may appoint one or more Authenticating Agents acceptable to the Company with respect to one or
more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of that or those
series issued upon original issue, exchange, registration of transfer, partial redemption or pursuant to Section 3.06, and
Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of

 

    25 

     

    

authentication executed on behalf of the Trustee by an Authenticating
Agent. Notwithstanding any other provision of this Indenture, the Securities shall be issued and authenticated in New York.

 

(b) Each Authenticating Agent shall be
acceptable to the Company and, except as provided in or pursuant to this Indenture, shall at all times be a Corporation that would
be permitted by the Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture Act, is authorized
under applicable law and by its charter to act as an Authenticating Agent and has a combined capital and surplus (computed in accordance
with Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000. If at any time an Authenticating Agent shall cease
to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect
specified in this Section.

 

(c) Any Corporation into which an Authenticating
Agent may be merged or converted or with which it may be consolidated, or any Corporation resulting from any merger, conversion
or consolidation to which such Authenticating Agent shall be a party, or any Corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall be the successor of such Authenticating Agent hereunder, provided
such Corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.

 

(d) An Authenticating Agent may resign
at any time by giving written notice thereof to the Trustee and the Company. The Trustee may at any time terminate the agency of
an Authenticating Agent by giving written notice thereof to such Authenticating Agent and the Company.

 

Upon receiving such a notice of resignation or upon such a termination,
or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of Securities, if any, of the series with respect to which
such Authenticating Agent shall serve, as their names and addresses appear in the Security Register. Any successor Authenticating
Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

 

(e) The Company agrees to pay to each Authenticating
Agent from time to time reasonable compensation for its services under this Section.

 

(f) The provisions of Sections 3.08, 6.04
and 6.05 shall be applicable to each Authenticating Agent.

 

(g) If an Authenticating Agent is appointed
with respect to one or more series of Securities pursuant to this Section, the Securities of such series may have endorsed thereon,
in addition to or in lieu of the Trustee’s certificate of authentication, an alternate certificate of authentication in the
following form:

 

This is one of the Securities of the series
designated herein referred to in the within-mentioned Indenture.

 

	 	
        The Bank of New York Mellon,
        acting through its London Branch, as         Trustee

        
	 
	 	 	 
	 	 	 
	 	By:	 	 
	 	 	As Authenticating Agent	 
	 	 	 	 
	 	By:	 	 
	 	 	Authorized Signatory	 

 

If all of the Securities of any series
may not be originally issued at one time, and if the Trustee does not have an office capable of authenticating Securities upon
original issuance located in a Place of Payment where the Company wishes to have Securities of such series authenticated upon original
issuance, the Trustee, if so requested in writing (which writing need not be accompanied by or contained in an Officer’s
Certificate by the Company), shall appoint in accordance with this Section an Authenticating Agent having an office in a Place
of Payment designated by the Company with respect to such series of Securities.

 

Section 6.14. Disqualification;
Conflicting Interests. If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture. To the extent permitted by the Trust Indenture Act the Trustee shall
not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Securities of more
than one series.

 

Section 6.15. Tax Compliance.
In order to enable the Trustee and the Paying Agent to comply with applicable tax laws (inclusive of rules, regulations and interpretations
promulgated by competent authorities) in effect from time to time, including, without limitation FATCA (as defined herein) (“Applicable
Tax Law”) that the Company, Trustee or Paying Agent is subject to, the Company agrees (i) to cooperate in good faith
with the Trustee and the Paying Agent by providing information, to the extent within the Company’s possession, and to the
extent permitted by applicable law, about the parties and/or Securities (including any modification to the terms of such Securities)
that is reasonably necessary for such entity to determine whether it has tax related obligations under Applicable Tax Law and (ii) that
the Trustee and each Paying Agent shall be entitled to make any withholding

 

    26 

     

    

or deduction from payments to the extent necessary to comply
with Applicable Tax Law. For the avoidance of doubt, neither the Trustee nor any Paying Agent shall have any obligation to gross
up any payment hereunder or pay any additional amount or otherwise indemnify a Holder as a result of such withholding tax. The
terms of this section shall survive the termination of this Indenture or the resignation or removal of the Trustee or any Paying
Agent.

 

ARTICLE 7

HOLDERS LISTS AND REPORTS BY TRUSTEE AND
COMPANY

 

Section 7.01. Company to Furnish
Trustee Names and Addresses of Holders. In accordance with Section 312(a) of the Trust Indenture Act, the Company shall
for so long as any Securities of any series are Outstanding furnish or cause to be furnished to the Trustee:

 

(a) semi-annually with respect to such
Securities upon such dates as are set forth in or pursuant to the Board Resolution or indenture supplemental hereto authorizing
such series, a list, in each case in such form as the Trustee may reasonably require, of the names and addresses of Holders as
of the applicable date, and

 

(b) at such other times as the Trustee
may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished.

 

Notwithstanding the foregoing, the Company
need not furnish or cause to be furnished to the Trustee pursuant to this Section 7.01 the names and addresses of Holders
of Securities with respect to which the Trustee is the Security Registrar.

 

Section 7.02. Preservation of Information;
Communications to Holders. (a) The Trustee shall comply with the obligations imposed upon it pursuant to Section 312
of the Trust Indenture Act.

 

(b) Every Holder of Securities, by receiving
and holding the same, agrees with the Company and the Trustee that neither the Company, the Trustee, any Paying Agent, any Security
Registrar or any agent of any of them shall be held accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders of Securities in accordance with Section 312(c) of the Trust Indenture Act, regardless of the
source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under Section 312(b) of the Trust Indenture Act.

 

Section 7.03. Reports by Trustee.
(a) Within 60 days after May 15 of each year commencing with the first May 15 following the first issuance of
Securities pursuant to Section 3.01, if required by Section 313(a) of the Trust Indenture Act, the Trustee shall transmit,
pursuant to Section 313(c) of the Trust Indenture Act, a brief report dated as of such May 15 with respect to any of
the events specified in said Section 313(a) which may have occurred since the later of the immediately preceding May 15
and the date of this Indenture.

 

(b) The Trustee shall transmit the reports
required by Section 313(b) of the Trust Indenture Act at the times specified therein.

 

(c) Reports pursuant to this Section shall
be transmitted in the manner and to the Persons required by Sections 313(c) and 313(d) of the Trust Indenture Act.

 

Section 7.04. Reports by Company.
The Company, pursuant to Section 314(a) of the Trust Indenture Act, shall for so long as any Securities of any series
are Outstanding:

 

(a) file with the Trustee, within 15 days
after the Company files the same with the Commission, copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe)
which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934, as amended;

 

(b) file with the Trustee and the Commission,
in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents
and reports with respect to compliance by the Company, with the conditions and covenants of this Indenture as may be required from
time to time by such rules and regulations; and

 

(c) transmit within 30 days after the filing
thereof with the Trustee, in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act, such summaries
of any information, documents and reports required to be filed by the Company pursuant to paragraphs (a) and (b) of this Section
as may be required by rules and regulations prescribed from time to time by the Commission.

 

Delivery of reports, information and documents
to the Trustee pursuant to this Section is for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein, including compliance by the Company with any of its covenants hereunder,
as to which the Trustee is entitled to rely exclusively on Officer’s Certificates.

 

    27 

     

    

ARTICLE 8

CONSOLIDATION, MERGER AND SALES; ASSUMPTION;
SUBSTITUTION AND MODIFICATION

 

Section 8.01. Company May Consolidate,
etc. Nothing contained in this Indenture or in any of the Securities shall prevent any reconstruction, consolidation, amalgamation
or merger of the Company with or into any other Person or Persons (whether or not affiliated with the Company), or successive reconstructions,
consolidations, amalgamations or mergers in which the Company or the successor or successors of the Company shall be a party or
parties, or shall prevent any sale, transfer, conveyance or lease of the property of the Company as an entirety or substantially
as an entirety, to any other Person (whether or not affiliated with the Company); provided that any Person formed by any
reconstruction, consolidation, amalgamation or merger, or any transferee or lessee of the Company’s assets shall expressly
(except where such assumption is automatic by operation of law) assume the due and punctual payment of the principal of (and premium,
if any), interest and Additional Amounts, if any, on all Securities in accordance with the provisions of such Securities and this
Indenture, and the performance of every covenant of this Indenture on the part of the Company to be performed or observed.

 

Upon any such assumption, the acquiring,
resulting or successor Person shall succeed to, and be substituted for, and may exercise every right and power of, the Company
under this Indenture with respect to any such Securities with the same effect as if such Person had been named as the Company in
this Indenture, and the Company or any legal and valid successor Person which shall theretofore have become such in the manner
prescribed herein, shall be released from all liability as obligor upon any such Securities.

 

Section 8.02. Non-Spanish Successor
Person. In the event of any reconstruction, consolidation, amalgamation, merger, sale, transfer, conveyance or lease permitted
by Section 8.01 and Section 5.01 above or any assumption of obligations permitted by Section 8.03 where the acquiring,
resulting or successor Person is not incorporated or tax resident in the Kingdom of Spain, Additional Amounts under the Securities
will thereafter be payable in respect of taxes imposed by such acquiring, resulting or successor Person’s jurisdiction of
incorporation or tax residence (subject to exceptions equivalent to those that apply to the obligation to pay Additional Amounts
pursuant to Section 10.04 in respect of taxes imposed by the laws of the Kingdom of Spain) rather than taxes imposed by the
Kingdom of Spain. Additional Amounts with respect to payments of interest or principal due prior to the date of such reconstruction,
consolidation, amalgamation, merger, sale, transfer, conveyance, lease or assumption will be payable only in respect of taxes imposed
by the Kingdom of Spain. If the acquiring, resulting or successor Person is not incorporated or tax resident in the Kingdom of
Spain, it will also be entitled to redeem the Securities in the circumstances described in Section 11.08(a), except that (i)
references to the Kingdom of Spain shall be deemed to refer to such acquiring, resulting or successor Person’s jurisdiction
of incorporation or tax residence, and (ii) the relevant change, amendment, application or interpretation must become effective
subsequent to the date of any reconstruction, consolidation, amalgamation, merger, sale, transfer, conveyance or lease permitted
by Section 8.01 and Section 5.01 or the assumption of obligations permitted by Section 8.03, as the case may be.

 

Section 8.03. Assumption of Obligations.
With respect to the Securities of any series, unless otherwise specified in accordance with Section 3.01, any holding company
of the Company or any wholly-owned subsidiary of the Company (for purposes of this Section 8.03 only, a “successor
entity”) may without the consent of any Holder assume the obligations of the Company (or of any Person which shall have
previously assumed the obligations of the Company) for the due and punctual payment of the principal, interest, Additional Amounts
and premium (if any) on any series of Securities in accordance with the provisions of such Securities and this Indenture and the
performance of every covenant of this Indenture and such series of Securities on the part of the Company to be performed or observed,
provided that:

 

(a) the successor entity shall, except
where such assumption is automatic by operation of law, expressly assume such obligations by an amendment to this Indenture, executed
by the Company and such successor entity, if applicable, and delivered to the Trustee, in a form satisfactory to the Trustee;

 

(b) immediately after giving effect to
such assumption of obligations, no Event of Default and no event which, after notice or lapse of time or both, would become an
Event of Default, shall have occurred and be continuing;

 

(c) the Company shall have delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such assumption complies with this Article
and that all conditions precedent herein provided for relating to such assumption have been complied with; and

 

(d) immediately prior to such assumption,
the successor entity shall have ratings for long-term senior debt assigned by Standard & Poor’s Ratings Services
or Moody’s Investors Service, Inc. (or their respective successors) which are the same as, or higher than, the credit rating
for long-term senior debt of the Company (or, if applicable, the previous successor entity) assigned by Standard & Poor’s
Ratings Services or Moody’s Investors Service, Inc. (or their respective successors).

 

Upon any such assumption, the successor
entity shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with
respect to any such Securities with the same effect as if such successor entity had been named as the Company in this Indenture,
and the Company or any legal and valid successor Person which shall

 

    28 

     

    

theretofore have become such in the manner prescribed herein,
shall be released from all liability as obligor upon any such Securities.

 

Section 8.04. Substitution and
Modification. Notwithstanding any other provision in this Indenture (including Article 9 hereof), if an Eligible Liabilities
Event occurs and is continuing, the Company may substitute all (but not only some) of the Securities of any series or modify the
terms of all (but not only some) of the Securities of such series, without any requirement for the consent or approval of the Holders
of the Securities of such series, so that they are substituted for, or their terms are modified to, become, or remain, Qualifying
Securities, subject to: (i) having given not less than 30 nor more than 90 days’ notice to the Holders of such series
in accordance with Section 1.06 and to the Trustee (which notice shall be irrevocable and shall specify the date for substitution
or, as applicable, modification), (ii) the prior consent of the Regulator if required pursuant to Applicable Banking Regulations,
and (iii) any variation in the terms of the Securities resulting from such modification or, if the Securities are substituted,
any difference between the terms of such Securities and those of the Qualifying Securities for which such Securities are substituted,
not being materially prejudicial to the interests of the Holders of such Securities and the Company having delivered an Officer’s
Certificate to the Trustee to that effect not less than five Business Days prior to (a) in the case of a substitution of the
Securities, the issue date of the relevant Qualifying Securities for which such Securities are substituted or (b) in the case
of a modification of the terms and conditions of the Securities, the date such modification becomes effective.

 

For the purposes of the immediately preceding
paragraph, in the case of a modification of the terms and conditions of the Securities, any variation in the ranking of the relevant
Securities as set out in Section 13.01 resulting from any such modification or, in the case of a substitution of the Securities,
any difference between the ranking of such Securities as set out in Section 13.01 and that of the Qualifying Securities for
which such Securities are substituted, shall be deemed not to be prejudicial to the interests of the Holders of such Securities
where the ranking of the Securities or, if the Securities are substituted, of the Qualifying Securities for which such Securities
are substituted, following such substitution or modification, as the case may be, is at least the same ranking as was applicable
to such Securities under Section 13.01 on the issue date of such Securities.

 

For the purposes of the second immediately
preceding paragraph, the notice to be delivered by the Company shall specify the relevant details of the manner in which the relevant
substitution or modification shall take effect and where the Holders of such series can inspect or obtain copies of the new terms
and conditions of the Securities of such series or, if such Securities are substituted, of the Qualifying Securities for which
such Securities are substituted. Such substitution or modification will be effected without any cost or charge to such Holders.

 

If the Securities of a series are substituted
in accordance with this Section 8.04, such Securities shall cease to bear interest from (and including) the date of substitution
thereof.

 

Each Holder and beneficial owner of the
Securities of any series shall, by virtue of its acquisition of the Securities of any series or any beneficial interest therein,
be deemed to accept the substitution or modification of the terms of the Securities of such series as set forth in this Section 8.04
and to grant to the Company and the Trustee full power and authority to take any action and/or to execute and deliver any document
in the name and/or on behalf of such Holder or beneficial owner, as the case may be, which is necessary or convenient to complete
the substitution or modification of the terms of the Securities of such series, as applicable. Each Holder and beneficial owner
of the Securities of any series, by virtue of its acquisition of the Securities of any series or any beneficial interest therein,
to the extent permitted by the Trust Indenture Act, waives any and all claims, in law and/or in equity, against the Trustee for,
agrees not to initiate a suit against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action
that the Trustee takes, or abstains from taking, in either case in connection with the substitution or modification of the terms
of the Securities upon the occurrence of an Eligible Liabilities Event.

 

ARTICLE 9

SUPPLEMENTAL INDENTURES

 

Section 9.01. Supplemental Indentures
without Consent of Holders. Without the consent of any Holders of a series of Securities, the Company and the Trustee, at any
time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for
any of the following purposes:

 

(a) to evidence the succession of another
Person to the Company, and the assumption by any such successor of the covenants of the Company herein and in the Securities; or

 

(b) to add to the covenants of the Company
for the benefit of the Holders of all or any series of Securities (as shall be specified in such supplemental indenture or indentures)
or to surrender any right or power herein conferred upon the Company, provided that such Securities do not cease to be fully
eligible for inclusion in the Eligible Liabilities Amount as a result thereof and subject further to compliance with the Applicable
Banking Regulations; or

 

(c) to establish the form or terms of Securities
of any series as permitted by Sections 2.01 and 3.01; or

 

(d) to evidence and provide for the acceptance
of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change any
of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder
by more than one Trustee, pursuant to the requirements of Section 6.10; or

 

(e) to cure any ambiguity or to correct
or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture which shall not adversely affect the interests of
the Holders of Securities of any series in any material respect; or

 

    29 

     

    

(f) to add to, delete from or revise the
conditions, limitations and restrictions on the terms or purposes of issue, authentication and delivery of Securities, as herein
set forth; or

 

(g) to supplement any of the provisions
of this Indenture to such extent as shall be necessary to permit the discharge of any series of Securities; provided that
any such action shall not adversely affect the interests of any Holder of a Security of such series or any other Security in any
material respect; or

 

(h) to add any additional Event(s) of Default
for the benefit of the Holders of all or any series of Securities; or

 

(i) to secure the Securities, provided
such Securities do not cease to be fully eligible for inclusion in the Eligible Liabilities Amount as a result thereof and subject
further to compliance with the Applicable Banking Regulations; or

 

(j) to delete, amend or supplement any
provision contained herein or in any supplemental indenture, provided that no such amendment or supplement shall materially
adversely affect the interests of the Holders of any Securities then Outstanding immediately prior thereto; or

 

(k) to delete, amend or supplement any
provision contained herein or in any supplemental indenture as a result of, and to the extent necessary to effect, the substitution
or modification of any series of Securities pursuant to Section 8.04; or

 

(l) to delete, amend or supplement any
provision contained herein or in any supplemental indenture as a result of, and to the extent required by, the exercise of the
Spanish Bail-in Power by the Relevant Spanish Resolution Authority.

 

Section 9.02. Supplemental Indentures
with Consent of Holders. (a) With the consent, as evidenced in an Act or Acts, as the case may be, of the Holders of not
less than a majority in principal amount of the Outstanding Securities of each such series affected by such supplemental indenture
voting as a class, the Company and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders of Securities of such series under this Indenture and of waiving future compliance with respect
to the Indenture; provided, however, that no such supplemental indenture, without the consent of the Holder of each Outstanding
Security affected thereby, shall

 

(i) change the Stated Maturity
of the principal of, or any premium or installment of interest on or any Additional Amounts with respect to, any Security, or reduce
the principal amount thereof or the rate of interest thereon (except that Holders of not less than 75% in principal amount of Outstanding
Securities of a series may consent by Act, on behalf of the Holders of all of the Outstanding Securities of such series, to the
postponement of the Stated Maturity of any installment of interest for a period not exceeding three years from the original Stated
Maturity of such installment (which original Stated Maturity shall have been fixed, for the avoidance of doubt, prior to any previous
postponements of such installment)) or any Additional Amounts with respect thereto, or any premium payable upon the redemption
thereof or otherwise, or change the obligation of the Company to pay Additional Amounts pursuant to Section 10.04 (except
as contemplated by Section 3.07 and permitted by Section 9.01(a)), or reduce the amount of the principal of an Original
Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02
or the amount thereof provable in bankruptcy pursuant to Section 5.04, or change the redemption provisions, or change the
Place of Payment, Currency in which the principal of, any premium or interest on, or any Additional Amounts with respect to any
Security is payable, or impair the right to institute suit for the enforcement of any such payment on or with respect to any Security
on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or

 

(ii) reduce the percentage
in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture
or certain defaults hereunder and their consequences) provided for in this Indenture, or reduce the requirements for a quorum or
voting, or

 

(iii) modify any of the provisions
of this Section or Section 5.13, except to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby, or

 

(iv) change in any manner adverse
to the interests of the Holders of Outstanding Securities of any series the terms and conditions of the obligations of the Company
in respect of the due and punctual payment of the principal thereof (and premium, if any) and interest, if any, thereon,

 

except in each case with respect to any modification or amendment
of the Indenture pursuant to a supplemental indenture which is entered into either as a result of, and to the extent required by,
the exercise of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority or the substitution or modification of any
series of Securities pursuant to Section 8.04 (in which cases neither the consent nor the affirmative vote of any Holder of
an Outstanding Security affected shall be required).

 

(b) A supplemental indenture which changes
or eliminates any covenant or other provision of this Indenture which shall have been included expressly and solely for the benefit
of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect
to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities
of any other series.

 

(c) It shall not be necessary for any Act
of Holders of Securities under this Section to approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

 

    30 

     

    

Section 9.03. Execution of Supplemental
Indentures. As a condition to executing, or accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby of the trust created by this Indenture, the Trustee shall be entitled to receive,
in addition to the documents required by Section 1.02, and (subject to Section 315 of the Trust Indenture Act) shall
be fully protected in relying upon, an Opinion of Counsel and Officer’s Certificate, each stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into
any such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.04. Effect of Supplemental
Indentures. Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance
therewith and such supplemental indenture shall form a part of this Indenture for all purposes and every Holder of a Security of
a series affected thereby theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. In the event
of any conflict between the terms and conditions of this Indenture and the terms and conditions of the relevant supplemental indenture,
the terms and conditions of the relevant supplemental indenture shall prevail.

 

Section 9.05. Reference in Securities
to Supplemental Indentures. Securities of any series authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the
Company and such Securities may be authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.

 

Section 9.06. Conformity with Trust
Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust
Indenture Act as then in effect.

 

ARTICLE 10

COVENANTS

 

Section 10.01. Payment of Principal
and Any Premium, Interest and Additional Amounts. The Company covenants and agrees for the benefit of the Holders of the Securities
of each series that it will (subject to Section 3.07, Article 13 and Article 14) duly and punctually pay the principal of,
any premium and interest on and any Additional Amounts with respect to, the Securities of such series in accordance with, and except
as provided in, the terms thereof and this Indenture.

 

Section 10.02. Maintenance of Office
or Agency. The Company shall maintain in each Place of Payment for any series of Securities an Office or Agency where Securities
of such series may be presented or surrendered for payment, where Securities of such series may be surrendered for registration
of transfer or exchange, and where notices and demands to or upon the Company in respect of the Securities of such series relating
thereto and this Indenture may be served.

 

The Company may also from time to time
designate one or more other Offices or Agencies where the Securities of one or more series may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation
or rescission shall in any manner relieve the Company of its obligation to maintain an Office or Agency in each Place of Payment
for Securities of any series for such purposes. The Company shall give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other Office or Agency. The Company hereby designates as the Place
of Payment for each series the Borough of Manhattan, The City of New York, and initially appoints The Bank of New York Mellon,
located at 240 Greenwich Street, New York, NY 10286, United States for such purpose. Pursuant to Section 3.01(h), the Company
may subsequently appoint a place or places in the Borough of Manhattan, The City of New York where such Securities may be payable.
The Company initially appoints The Bank of New York Mellon, acting through its London Branch, as Paying Agent and transfer agent
and The Bank of New York Mellon, acting through its corporate trust office in New York, as the Security Registrar.

 

Unless otherwise specified with respect
to any Securities pursuant to Section 3.01, if and so long as the Securities of any series (i) are denominated in a Foreign
Currency or (ii) may be payable in a Foreign Currency, or so long as it is required under any other provision of this Indenture,
then the Company will maintain with respect to each such series of Securities, or as so required, at least one exchange rate agent.

 

Section 10.03. Money for Securities
Payments to Be Held in Trust. If the Company shall at any time act as the Company’s Paying Agent with respect to any
series of Securities, it shall, on or before each due date for payment of the principal of, any premium or interest on or Additional
Amounts with respect to, any of the Securities of such series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum in the currency or currencies, currency unit or units or composite currency or currencies in which the Securities
of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series) sufficient
to pay the principal or any premium, interest or Additional Amounts so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as herein provided, and shall promptly notify the Trustee of its action or failure so to act.

 

    31 

     

    

Whenever the Company shall have one or
more Paying Agents for any series of Securities, it shall, on or prior to each due date for payment of the principal of, any premium
or interest on or any Additional Amounts with respect to, any Securities of such series, deposit with any Paying Agent a sum (in
the currency or currencies, currency unit or units or composite currency or currencies described in the preceding paragraph) sufficient
to pay the principal or any premium, interest or Additional Amounts so becoming due, such sum to be held in trust for the benefit
of the Persons entitled thereto, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of
its action or failure so to act. The obligation of the Company to pay any such amount shall be satisfied upon the deposit referred
to in this paragraph. Receipt of the relevant sum by the Paying Agent shall discharge the Company’s obligations in respect
of the relevant payment.

 

The Company shall cause each Paying Agent
for any series of Securities (unless such Paying Agent is the Trustee) to execute and deliver to the Trustee an instrument in which
such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent shall:

 

(i) hold all sums held by it
for the payment of the principal of, any premium or interest on or any Additional Amounts with respect to, Securities of such series
in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of
as provided in or pursuant to this Indenture;

 

(ii) give the Trustee notice
of any default by the Company (or any other obligor upon the Securities of such series) in the making of any payment of principal,
any premium or interest on or any Additional Amounts with respect to the Securities of such series; and

 

(iii) at any time during the
continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust
by such Paying Agent.

 

The Company may at any time and for any
purpose pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying
Agent, such sums to be held by the Trustee upon the same terms as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability
with respect to such sums.

 

If, prior to the payment to Holders of
any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal
of, any premium or interest on or any Additional Amounts with respect to, any Security of any series the Relevant Spanish Resolution
Authority exercises its Spanish Bail-in Power with respect to such series of Securities, such money shall be discharged from such
trust and (if then deposited with the Trustee or any Paying Agent) shall be paid to the Company, on Company Request.

 

Except as otherwise provided herein or
pursuant hereto, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment
of the principal of, any premium or interest on or any Additional Amounts with respect to, any Security of any series and remaining
unclaimed at the end of two years after such principal or any such premium or interest or any such Additional Amounts has become
due and payable shall be paid to the Company, on Company Request, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security shall thereafter look only to the Company for any payment which such Holder may be entitled
to collect, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation in the Borough of Manhattan, The City of New York,
New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days
from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company.

 

Section 10.04. Additional Amounts.
The provisions of this Section 10.04 shall be applicable to the Securities of each series except as specifically deleted or
modified in or pursuant to the supplemental indenture or Board Resolution creating such series of Securities or in the Officer’s
Certificate for such series of Securities. Except as otherwise provided herein, the Company hereby further agrees that any amounts
to be paid by the Company with respect to each Security shall be paid without withholding or deduction for or on account of any
and all present or future taxes or duties of whatever nature (“Taxes”) unless such withholding or deduction is required
by law. In the event any such withholding or deduction is imposed or levied in respect of payment of interest (but not principal
or premium) by or on behalf of the Kingdom of Spain or any political subdivision or authority thereof or therein having the power
to tax, the Company will pay to the Holder such Additional Amounts as may be necessary in order that the net amount received by
the Holder of such Security under this Indenture, after such withholding or deduction, shall equal the amount of interest, if any,
which would have been receivable by such Holder in the absence of such withholding or deduction; provided, however, that
the foregoing obligation to pay Additional Amounts will not apply:

 

(a) to, or to a third party on behalf of,
a Holder who is liable for such Taxes by reason of such Holder (or the beneficial owner of the Security for whose benefit such
Holder holds such Security) having some connection with the Kingdom of Spain other than the mere holding of the Security (or such
beneficial interest) or the mere crediting of the Security to its securities account with the relevant Depository;

 

(b) in the case of a Security presented
for payment (where presentation is required) more than 30 days after the Relevant Date (as defined below) except to the extent
that the Holder would have been entitled to Additional Amounts on presenting the same for payment on such thirtieth day assuming
that day to have been a Business Day in such place of presentment;

 

    32 

     

    

(c) in respect of any Tax, assessment or
other governmental charge that would not have been imposed but for the failure by the Holder or beneficial owner of the Security
to comply with certification, information or other reporting requirements concerning the nationality, residence or identity of
the Holder or beneficial owner of that Security, if compliance is required by statute or by regulation of the Kingdom of Spain
or of any political subdivision or taxing authority thereof or therein as a precondition to reduction of or relief or exemption
from the tax, assessment or other governmental charge;

 

(d) in respect of any Security presented
for payment (where presentation is required) by or on behalf of a Holder who would be able to avoid such withholding or deduction
by presenting the relevant Security to another Paying Agent; or

 

(e) in the event that the Securities are
redeemed pursuant to Section 11.08(b) hereof.

 

Additional Amounts will also not be paid
with respect to any payment on any Security to any Holder who is a fiduciary, partnership, limited liability company or Person
other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Kingdom of
Spain (or any political subdivision thereof) to be included in the income, for Spanish tax purposes, of a beneficiary or settlor
with respect to such fiduciary, member of such partnership, interest holder in that limited liability company or beneficial owner
who would not have been entitled to such Additional Amounts had it been a Holder of such Security.

 

No Additional Amounts will be paid by the
Company, the Trustee or any Paying Agent on account of any withholding or deduction from a payment on, or in respect of, the Securities
where such withholding or deduction is imposed pursuant to any agreement with the U.S. Internal Revenue Service in connection with
Sections 1471-1474 of the U.S. Internal Revenue Code and the U.S. Treasury regulations thereunder (“FATCA”),
any intergovernmental agreement between the United States and the Kingdom of Spain or any other jurisdiction with respect to FATCA,
or any law, regulation or other official guidance enacted in any jurisdiction implementing, or relating to, FATCA or any intergovernmental
agreement.

 

For the purposes of (b) above, the
“Relevant Date” means, in respect of any payment, the date on which any payment first becomes due and payable,
but if the full amount of the moneys payable has not been received by the Paying Agent on or prior to such due date, it means the
first date on which the full amount of such moneys having been so received and being available for payment to Holders, notice to
that effect shall have been duly given to the Holders in accordance with this Indenture.

 

Whenever in this Indenture there is mentioned,
in any context, the payment of interest on, or in respect of, any Security of any series, such mention shall be deemed to include
mention of the payment of Additional Amounts provided by the terms of such series established hereby or pursuant hereto to the
extent that, in such context, Additional Amounts are, were or would be payable in respect thereof pursuant to such terms, and express
mention of the payment of Additional Amounts (if applicable) in any provision hereof shall not be construed as excluding Additional
Amounts in those provisions hereof where such express mention is not made.

 

Section 10.05. Statement as to
Default. For so long as any Securities of any series are Outstanding, the Company will deliver to the Trustee, within 120 days
after the end of its fiscal years ending after the date hereof, a brief certificate, complying with Section 314(e) of the
Trust Indenture Act, from one or more authorized representatives of the Company, stating whether or not, to the best knowledge
of the signer or signers thereof, the Company is in default in the performance and observance of any of the terms, provisions,
covenants or conditions of this Indenture (such compliance to be determined without regard to any period of grace or requirement
of notice provided hereunder).

 

Section 10.06. Corporate Existence.
Subject to Article 8, the Company shall do or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence; provided, however, that the foregoing shall not obligate the Company to preserve any such
right or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct of its business
and that the loss thereof is not disadvantageous in any material respect to any Holder.

 

Section 10.07. Waiver of Certain
Covenants. Except as otherwise specified as contemplated by Section 3.01 for Securities of such series, the Company may,
with respect to the Securities of any series, omit in any particular instance to comply with any term, provision or condition set
forth in any covenant provided pursuant to Section 9.01(b) or Section 9.01(c) for the benefit of the Holders of Securities
of such series or any term, provision or condition set forth in an indenture supplemental hereto, if before the time for such compliance
the Holders of at least a majority in principal amount of the Outstanding Securities of such series shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with such term, provision or condition, but no such
waiver shall extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, provision or
condition shall remain in full force and effect.

 

ARTICLE 11

REDEMPTION OF SECURITIES

 

Section 11.01. Applicability of
Article. Redemption of Securities of any series at the option of the Company as permitted or required by the terms of such
Securities shall be made in accordance with the terms of such Securities and (except as otherwise

 

    33 

     

    

provided herein or pursuant hereto) this Article. In addition,
any such redemption shall be in compliance with the Applicable Banking Regulations and, if required, the Company shall have obtained
the prior consent of the Regulator.

 

Section 11.02. Election to Redeem;
Notice to Trustee. The election of the Company to redeem any Securities shall be evidenced by a Board Resolution or approved
by a person authorized to make such election pursuant to a Board Resolution. In case of any redemption at the election of the Company
of (a) less than all of the Securities of any series or (b) all of the Securities of any series, with the same interest
rate, Stated Maturity and other terms, the Company shall, at least 30 days prior to the Redemption Date fixed by the Company (unless
a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal amount
(or in the case of Original Issue Discount Security, the original issue amount) of Securities of such series to be redeemed. In
the case of any redemption of Securities prior to the expiration of any restrictions on redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officer’s Certificate evidencing
compliance with such restriction. The Trustee may conclusively assume that any redemption is in compliance with Applicable Banking
Regulations and that if the prior consent of the Regulator is required for any redemption, such consent has been obtained.

 

Section 11.03. Selection by Trustee
of Securities to Be Redeemed. If less than all of the Securities of any series with the same interest rate, Stated Maturity
and other terms are to be redeemed, the particular Securities to be redeemed shall be selected not more than 45 days prior to the
Redemption Date by the Trustee from the Outstanding Securities of such series not previously called for redemption, by lot and
may provide for the selection for redemption of portions of the principal amount (or in the case of an Original Issue Discount
Security, the original issue amount) of Securities of such series; provided, however, that no such partial redemption shall
reduce the portion of the principal amount (or in the case of an Original Issue Discount Security, the original issue amount) of
a Security of such series not redeemed to less than the minimum denomination for a Security of such series established herein or
pursuant hereto.

 

The Trustee shall promptly notify the Company
and the Security Registrar (if other than itself) in writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless
the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities
redeemed or to be redeemed only in part, to the portion of the principal of such Securities which has been or is to be redeemed.

 

Section 11.04. Notice of Redemption.
Notice of redemption shall be given in the manner provided in Section 1.06, not less than 30 nor more than 90 days prior
to the Redemption Date, unless a shorter period is specified in the Securities to be redeemed, to the Holders of Securities to
be redeemed. Failure to give notice by mailing in the manner herein provided to the Holder of any Securities designated for redemption
as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the
redemption of any other Securities or portion thereof.

 

Any notice that is mailed to the Holder
of any Securities in the manner herein provided shall be conclusively presumed to have been duly given, whether or not such Holder
actually receives the notice.

 

All notices of redemption shall state:

 

(i) the Redemption Date,

 

(ii) the Redemption Price,

 

(iii) if less than all Outstanding
Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the principal amount (or
in the case of an Original Issue Discount Security, the original issue amount)) of the particular Security or Securities to be
redeemed,

 

(iv) in case any Security is
to be redeemed in part only, the notice which relates to such Security shall state that on and after the Redemption Date, upon
surrender of such Security, the Holder of such Security will receive, without charge, a new Security or Securities of authorized
denomination, containing identical terms and provisions, for the principal amount thereof remaining unredeemed,

 

(v) that, on the Redemption
Date, the Redemption Price shall become due and payable upon each such Security or portion thereof to be redeemed, and, if applicable,
that interest thereon shall cease to accrue on and after said date,

 

(vi) the place or places where
such Securities maturing after the Redemption Date, are to be surrendered for payment of the Redemption Price and any accrued interest
and Additional Amounts pertaining thereto, and

 

(vii) the CUSIP number or the
Euroclear Bank. S.A./N.V. and Clearstream Banking, société anonyme, reference number of such Securities, if
any (or any other numbers used by a Depository to identify such Securities).

 

Except as otherwise provided herein, notice
of redemption published as contemplated by Section 1.06 need not identify particular Securities to be redeemed.

 

    34 

     

    

Notice of redemption of Securities to be
redeemed at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the
name and at the expense of the Company.

 

If the Company has elected to redeem the
Securities of any series but prior to the payment of the Redemption Price to Holders the Relevant Spanish Resolution Authority
exercises its Spanish Bail-in Power with respect to such series of Securities, the relevant redemption notice shall be automatically
rescinded and shall be of no force and effect, there shall be no redemption and consequently no payment of the Redemption Price
(and any accrued interest and Additional Amounts payable under this Article 11) will be due and payable.

 

Section 11.05. Deposit of Redemption
Price. On any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) any accrued interest on and Additional
Amounts with respect thereto, all the Securities or portions thereof which are to be redeemed on that date.

 

Section 11.06. Securities Payable
on Redemption Date. Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption
Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest. Upon surrender
of any such Security for redemption in accordance with said notice, maturing after the Redemption Date, such Security shall be
paid by the Company at the Redemption Price, together with any accrued interest and Additional Amounts to the Redemption Date;
provided, however, that installments of interest on Securities whose Stated Maturity is on or prior to the Redemption Date
shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business
on the Regular Record Dates therefor according to their terms and the provisions of Section 3.07.

 

If any Security called for redemption shall
not be so paid upon surrender thereof for redemption, the principal and any premium, until paid, shall bear interest from the Redemption
Date at the rate prescribed therefor in the Security.

 

Section 11.07. Securities Redeemed
in Part. Any Security which is to be redeemed only in part shall be surrendered at any Office or Agency for such Security (with,
if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or
Securities of the same series, containing identical terms and provisions, of any authorized denomination as requested by such Holder
in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered.
If a Global Security is so surrendered, the Company shall execute and the Trustee shall authenticate and deliver to the U.S. Depository
or other Depository for such Global Security as shall be specified in the Company Order with respect thereto to the Trustee, without
service charge, a new Global Security in a denomination equal to and in exchange for the unredeemed portion of the principal of
the Global Security so surrendered.

 

Section 11.08. Redemption for Taxation
or Listing Reasons. (a) Unless otherwise provided in the Securities of any series, all or part of the Securities of any
series may be redeemed at the Redemption Price in accordance with the terms of this Article 11 at the option of the Company if,
as the result of any change in or any amendment to the laws or regulations of the Kingdom of Spain (including any treaty to which
the Kingdom of Spain is a party) or any political subdivision or any authority or agency thereof or therein having power to tax,
or any change in the application or official interpretation of such laws or regulations, which change, amendment, application or
interpretation becomes effective on or after the issue date of the Securities of such series, either (i) the Company would
become obligated to pay Additional Amounts in making any payments under the Securities with respect thereto as a result of any
taxes, levies, imposts or other governmental charges imposed (whether by way of withholding or deduction or otherwise) by or for
the account of the Kingdom of Spain or any political subdivision or authority thereof or therein having the power to tax, or (ii) the
Company would not be entitled to claim a deduction in computing tax liabilities in the Kingdom of Spain in respect of any interest
to be paid on the next Interest Payment Date on such series of Securities or the value of such deduction to the Company would be
materially reduced; provided that, in the case of (i) above, no such notice to the Trustee of the redemption shall
be given earlier than 90 days prior to the earliest date on which the Company would be obligated to deduct or withhold tax or pay
such Additional Amounts were a payment in respect of the Securities then due.

 

Prior to any notice of redemption of such
Securities pursuant to Section 11.04, the Company shall provide the Trustee with (i) an Officer’s Certificate of
the Company stating that the Company is entitled to effect such redemption and setting forth in reasonable detail a statement of
circumstances showing that the conditions precedent to the right of the Company to redeem such Securities pursuant to this Section
have been satisfied; and (ii) an Opinion of Counsel to the effect that any of the circumstances referred to in the preceding
paragraph prevail.

 

(b) Unless otherwise provided in the Securities
of any series, if the Securities of a series are not listed on an organized market in an OECD country by the date that is 45 days
prior to the applicable first Interest Payment Date on the Securities of such series, the Company may, at its option and having
given no less than 15 days’ notice (ending on a day which is no later than the Business Day immediately preceding such first
Interest Payment Date) to the Holders of Securities of such series of Securities in accordance with Section 11.04 (which notice
will be irrevocable), redeem all (but not less than all) of the Outstanding Securities

 

    35 

     

    

of such series at the Redemption Price; provided that from
and including the issue date of such Securities to and including such Interest Payment Date, the Company will use its reasonable
efforts to obtain or maintain such listing, as applicable.

 

Section 11.09. Redemption for Eligible
Liabilities Event. Unless otherwise provided in the Securities of any series, all (but not less than all) of the Securities
of any series may be redeemed at the Redemption Price in accordance with the terms of this Article 11 at the option of the Company
if an Eligible Liabilities Event occurs on or after the issue date of such Securities.

 

Prior to any notice of redemption of such
Securities pursuant to Section 11.04, the Company shall provide the Trustee with (i) an Officer’s Certificate of
the Company stating that the Company is entitled to effect such redemption and setting forth in reasonable detail a statement of
circumstances showing that the conditions precedent to the right of the Company to redeem such Securities pursuant to this Section 11.09
have been satisfied; and (ii) an Opinion of Counsel to the effect that the circumstances referred to in the preceding paragraph
prevail.

 

ARTICLE 12

 

[Reserved] 

 

ARTICLE 13

RANKING OF SECURITIES

 

Section 13.01. Ranking of the Securities.
The Securities shall be direct, unconditional, unsubordinated and unsecured obligations of the Company and, upon the insolvency
(concurso de acreedores) of the Company, in accordance with and to the extent permitted by the Insolvency Law and other
applicable laws relating to or affecting the enforcement of creditors’ rights in the Kingdom of Spain (including, without
limitation, Additional Provision 14.2 of Law 11/2015), the payment obligations of the Company under the Securities with respect
to claims for principal (which claims will constitute ordinary claims) will rank:

 

(i) junior to any (a) privileged
claims (créditos privilegiados) (which shall include, among other claims, any claims in respect of deposits for the
purposes of Additional Provision 14.1 of Law 11/2015), (b) claims against the insolvency estate (créditos contra la masa)
and (c) Senior Preferred Obligations;

 

(ii) pari passu without
any preference or priority among themselves and with all other Senior Non-Preferred Obligations; and

 

(iii) senior to all subordinated
obligations of, or claims against, the Company (créditos subordinados), present and future,

 

such that any claim for principal in respect of the Securities
will be satisfied, as appropriate, only to the extent that all claims ranking senior to it have first been satisfied in full and
then pro rata with any claims ranking pari passu with it, in each case as provided above.

 

Claims of Holders in respect of interest
on the Securities of any series accrued but unpaid as of the commencement of any insolvency proceeding in respect of the Company
shall constitute subordinated claims (créditos subordinados) against the Company ranking in accordance with the provisions
of the Insolvency Law (including, without limitation, junior to claims on account of principal in respect of contractually subordinated
obligations of the Company, unless otherwise provided by the Insolvency Law or other applicable laws relating to or affecting the
enforcement of creditors’ rights in the Kingdom of Spain). No further interest on the Securities of any series shall accrue
from the date of declaration of the insolvency of the Company.

 

Prior to any voluntary or necessary declaration
of insolvency of the Company under the Insolvency Law or any voluntary or mandatory Company liquidation or similar procedure, the
Company may be subject to an Early Intervention or Resolution or to any other exercise of the Spanish Bail-in Power and the Securities
of any series may be subject to the exercise of the Spanish Bail-in Power, in which case no Holder of any Security shall have any
claim against the Company in connection with or arising out of any such exercise of the Spanish Bail-in Power.

 

Section 13.02. Waiver of Right
of Set-Off. Subject to applicable law, neither any Holder or beneficial owner of the Securities of any series nor the Trustee
acting on behalf of the Holders of the Securities of such series may exercise, claim or plead any right of set-off, compensation
or retention in respect of any amount owed to it by the Company in respect of, or arising under, or in connection with, the Securities
of such series or this Indenture and each Holder and beneficial owner of the Securities of such series, by virtue of its holding
of any Securities of such series or any interest therein, and the Trustee acting on behalf of the Holders of the Securities of
such series, shall be deemed to have waived all such rights of set-off, compensation or retention. If, notwithstanding the above,
any amounts due and payable to any Holder or beneficial owner of a Security of any series or any interest therein by the Company
in respect of, or arising under, the Securities of such series are discharged by set-off, such Holder or beneficial owner shall,
subject to applicable law, immediately pay an amount equal to the amount of such discharge to the Company (or, if any voluntary
or involuntary liquidation of the Company shall have occurred, the liquidator or administrator of the Company, as the case may
be) and, until such time as payment is made, shall hold an amount equal to such amount in trust

 

    36 

     

    

(where possible) or otherwise for the Company (or the liquidator
or administrator of the Company, as the case may be) and, accordingly, any such discharge shall be deemed not to have taken place.

 

Section 13.03. Trustee to Effectuate
Ranking. Each Holder and beneficial owner of a Security by his acceptance thereof, to the extent permitted by Spanish law,
authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the ranking
of the Securities provided in this Article 13 and appoints the Trustee his attorney-in-fact for any and all such purposes, including,
if required, to grant any private or public documents on such Holder’s or beneficial owner’s behalf.

 

Section 13.04. Trustee Not Fiduciary
for Creditors of Senior Preferred Obligations. With respect to the creditors of Senior Preferred Obligations, the Trustee undertakes
to perform or to observe only such of its covenants and obligations as are specifically set forth in this Indenture, and no implied
covenants or obligations with respect to the creditors of Senior Preferred Obligations shall be read into this Indenture against
the Trustee. Unless otherwise provided in applicable law, the Trustee shall not be deemed to owe any fiduciary duty to the creditors
of Senior Preferred Obligations and shall not be liable to any such holders or creditors if it shall in good faith mistakenly pay
over or distribute to Holders of Securities of the series or to the Company or to any other Person cash, property or securities
to which any creditors of Senior Preferred Obligations shall be entitled by virtue of this Article 13 or otherwise.

 

Section 13.05. Rights of Trustee
as Creditor of Senior Preferred Obligations; Preservation of Trustee’s Rights. To the extent permitted by applicable
law, the Trustee in its individual capacity shall be entitled to all the rights set forth in this Article 13 with respect to any
claims of creditors of Senior Preferred Obligations which may at any time be held by it, to the same extent as any other creditor
of Senior Preferred Obligations, and nothing in this Indenture or the Trust Indenture Act shall deprive the Trustee of any of its
rights as such holder.

 

Nothing in this Article shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 6.07.

 

Section 13.06. Article Applicable
to Paying Agents. At all times when a Paying Agent other than the Trustee shall have been appointed by the Company and be then
acting hereunder, the term “Trustee” as used in this Article 13 shall in such case (unless the context otherwise requires)
be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article 13 in addition to or in place of the Trustee; provided, however, that Section 13.05
shall not apply to the Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.

 

ARTICLE 14

 

[Reserved] 

 

ARTICLE 15

EXERCISE OF SPANISH BAIL-IN POWER

 

Section 15.01. Agreement with Respect
to the Exercise of Spanish Bail-in Power. (a) Notwithstanding any other term of the Securities of any series, the Indenture
or any other agreements, arrangements, or understandings between the Company and any Holder of the Securities of any series, by
its acquisition of the Securities of any series, each Holder (which, for the purposes of this Article 15, includes each holder
of a beneficial interest in the Securities of any series) acknowledges, accepts, consents to and agrees to be bound by: (i) the
exercise and effects of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority, which may be imposed with or without
any prior notice with respect to the Securities of any series, and may include and result in any of the following, or some combination
thereof: (a) the reduction or cancellation of all, or a portion, of the Amounts Due on the Securities of any series; (b) the
conversion of all, or a portion, of the Amounts Due on the Securities of any series into shares, other securities or other obligations
of the Company or another Person (and the issue to or conferral on the Holder of any such shares, securities or obligations), including
by means of an amendment, modification or variation of the terms of the Securities; (c) the cancellation of the Securities
of any series; (d) the amendment or alteration of the maturity of the Securities of any series or amendment of the amount
of interest payable on the Securities of any series, or the date on which the interest becomes payable, including by suspending
payment for a temporary period; and (ii) the variation of the terms of the Securities of any series or the rights of the Holders
thereunder or under the Indenture, if necessary, to give effect to the exercise of the Spanish Bail-in Power by the Relevant Spanish
Resolution Authority.

 

(b) By its acquisition of the Securities
of any series, each Holder acknowledges and agrees that neither a reduction or cancellation, in part or in full, of the Amounts
Due on the Securities of any series or the conversion thereof into another security or obligation of the Company or another Person,
in each case as a result of the exercise of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority with respect
to the Company, nor the exercise of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority with respect to the
Securities of a series shall: (i) give rise to a default or event of default for purposes of Section 315(b) (Notice of
Defaults) and Section 315(c) (Duties of the Trustee in Case of Default) of the Trust Indenture Act; or (ii) be a default
or an Event of Default with respect to the Securities or under this Indenture. By its acquisition of the Securities of any series,
each Holder further acknowledges and agrees that no repayment or payment of Amounts Due on the

 

    37 

     

    

Securities of any series shall become due and payable or be
paid after the exercise of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority if, and to the extent that, such
amounts have been reduced, converted, cancelled, amended or altered as a result of such exercise.

 

(c) By its acquisition of the Securities
of any series, each Holder, to the extent permitted by the Trust Indenture Act, waives any and all claims, in law and/or in equity,
against the Trustee for, agrees not to initiate a suit against the Trustee in respect of, and agrees that the Trustee shall not
be liable for, any action that the Trustee takes, or abstains from taking, in either case in accordance with the exercise of the
Spanish Bail-in Power by the Relevant Spanish Resolution Authority with respect to the Securities of such series. Additionally,
by its acquisition of the Securities of any series, each Holder acknowledges and agrees that, upon the exercise of the Spanish
Bail-in Power by the Relevant Spanish Resolution Authority with respect to the Securities of such series: (i) the Trustee
shall not be required to take any further directions from the Holders with respect to any portion of the Securities of such series
that is written down, converted to equity and/or cancelled under Section 5.12 of this Indenture; and (ii) this Indenture
shall not impose any duties upon the Trustee whatsoever with respect to the exercise of the Spanish Bail-in Power by the Relevant
Spanish Resolution Authority; provided, however, that notwithstanding the exercise of the Spanish Bail-in Power by the Relevant
Spanish Resolution Authority with respect to the Securities of a series, so long as any Securities of such series remain Outstanding,
there shall at all times be a trustee for the Securities of such series in accordance with the Indenture, and the resignation and/or
removal of the Trustee and the appointment of a successor trustee shall continue to be governed by this Indenture, including to
the extent no additional supplemental indenture or amendment is agreed upon in the event the Securities of such series remain Outstanding
following the completion of the exercise of the Spanish Bail-in Power.

 

(d) By its acquisition of the Securities
of any series, each Holder shall be deemed to have authorized, directed and requested the relevant Depository (including, if applicable,
The Depository Trust Company) and any direct participant therein or other intermediary through which it holds such Securities to
take any and all necessary actions, if required, to implement the exercise of the Spanish Bail-in Power with respect to the Securities
as it may be imposed, without any further action or direction on the part of such Holder.

 

(e) Upon the exercise of the Spanish Bail-in
Power by the Relevant Spanish Resolution Authority with respect to the Securities of any series, the Company or the Relevant Spanish
Resolution Authority (as the case may be) shall provide a written notice to the Depository as soon as practicable regarding such
exercise of the Spanish Bail-in Power for purposes of notifying the Holders of such Securities. The Company shall also deliver
a copy of such notice to the Trustee for information purposes.

 

(f) If the Company has elected to redeem
the Securities of any series but prior to the payment of the Redemption Price to Holders the Relevant Spanish Resolution Authority
exercises its Spanish Bail-in Power with respect to such series of Securities the relevant redemption notice shall be automatically
rescinded and shall be of no force and effect, there shall be no redemption and consequently no payment of the Redemption Price
(and any accrued interest and Additional Amounts payable under Article 11) will be due and payable.

 

(g) Upon the exercise of the Spanish Bail-in
Power with respect to a series of Securities which results in the redemption, cancellation, or the conversion into other securities,
of all the Amounts Due on the Securities of such series or such Securities otherwise ceasing to be outstanding, the Indenture shall
be deemed satisfied and discharged as to such series of Securities and such Securities shall thereafter be deemed to be not “Outstanding”.

 

(h) Each Holder that acquires Securities
of any series in the secondary market or otherwise shall be deemed to acknowledge and agree to be bound by and consent to the same
provisions specified in this Indenture to the same extent as the Holders that acquire the Securities upon their initial issuance,
including, without limitation, with respect to this Article 15.

 

Section 15.02. BRRD Liabilities.
Notwithstanding and to the exclusion of any other term of this Indenture or any other agreements, arrangements, or understandings
between the Company and the Trustee, the Trustee acknowledges and accepts that a BRRD Liability arising under this Indenture may
be subject to the exercise of the Spanish Bail-in Power by the Relevant Spanish Resolution Authority, and acknowledges, accepts,
consents to and agrees to be bound by:

 

(a) the exercise and effects of the Spanish
Bail-in Power by the Relevant Spanish Resolution Authority in relation to any BRRD Liability of the Company to the Trustee, which
may be imposed with or without any prior notice and (without limitation) may include and result in any of the following, or some
combination thereof:

 

(i) the reduction of all, or
a portion, of such BRRD Liability or outstanding amounts due thereon;

 

(ii) the conversion of all,
or a portion, of such BRRD Liability or outstanding amounts due thereon into shares, other securities or other obligations of the
Company or another Person, and the issue to or conferral on the Trustee of any such shares, securities or obligations, including
by means of an amendment, modification or variation of the terms of any BRRD Liability;

 

(iii) the cancellation of such
BRRD Liability or outstanding amounts due thereon; and/or

 

(iv) the amendment or alteration
of any interest, if applicable, on such BRRD Liability or outstanding amounts due thereon, and the maturity or the dates on which
any payments on such BRRD Liability or outstanding amounts are due, including by suspending payment for a temporary period; and

 

(b) the variation of the terms of such
BRRD Liability or outstanding amounts due thereon and/or this Indenture, if necessary, to give effect to the exercise of the Spanish
Bail-in Power by the Relevant Spanish Resolution Authority.

 

    38 

     

    

The terms of this Article 15 shall survive
the payment in full of the Securities, the satisfaction and discharge of this Indenture with respect to any series of Securities
(where such satisfaction or discharge is allowed by the terms of the relevant series of Securities), the resignation or removal
of the Trustee and the termination for any reason of this Indenture.

 

* * *

    39 

     

    

 

This instrument may be executed in any
number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

IN WITNESS WHEREOF, the parties hereto
have caused this Indenture to be duly executed all as of the day and year first above written.

 

		
        BANCO BILBAO VIZCAYA ARGENTARIA, S.A.,
        

as Company

    	 
	 	 	 
	 	 	 
	 	By:	/s/ Antonio Borraz Peralta	 
	 	 	Name:  Antonio Borraz Peralta	 
	 	 	Title:    Global Head of ALM	 
	 	 	 	 
		THE
    BANK OF NEW YORK MELLON, acting through its London Branch, as Trustee, transfer agent and Paying Agent

	 
	 	 	 
	 	 	 
	 	By:	/s/ Marilyn Chau	 
	 	 	Name:  Marilyn Chau	 
	 	 	Title:    Vice President	 
	 	 	 	 
	 	 	 	 
		THE BANK
    OF NEW YORK MELLON, 
 as Security Registrar

	 
	 	 	 
	 	 	 
	 	By:	/s/ Marilyn Chau	 
	 	 	Name:  Marilyn Chau	 
	 	 	Title:    Vice President	 

 

    40

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]