Document:

Exhibit 10 (k)(i) - Promissory Note, dated January 27, 2006, is the amount
      of $1,500,000 payable to Mr. and Mrs. Spector.

    
      

      

    

    
      

      Exhibit
        10(k)(i)

      

      MARGO
        CARIBE, INC.

      (a
        Puerto Rico Corporation)

      

      

      PROMISSORY
        NOTE

      

      

      
        	
                $1,500,000

              	
                Due
                  Date: January 27, 2009 

              
	 	
                Vega
                  Alta, Puerto Rico

              

      

      

      FOR
        VALUE RECEIVED,
        MARGO
        CARIBE, INC., a corporation organized and existing under the laws of the
        Commonwealth of Puerto Rico (the “Maker”), hereby unconditionally promises to
        pay to the order of Michael J. Spector and Margaret D. Spector (collectively
        the
“Holders”), at the principal office of the maker located at Road 690, K.M. 5.8,
        Vega Alta, Puerto Rico, or at such other place as the holder hereof may from
        time to time designate in writing, the principal sum of ONE MILLION FIVE
        HUNDRED
        THOUSAND DOLLARS ($1,500,000), in lawful money of the United States of America
        in immediately available funds with interest thereon to be computed from
        the
        date of this Note until satisfaction thereof at a fluctuating rate of interest
        equal to the 90-day LIBOR Rate (as defined below) plus 1.50%. The entire
        principal balance of this Note shall be due and payable on January 27, 2009
        (the
“Maturity Date”). Interest shall be paid on a monthly basis on the first day of
        each month commencing on March 1, 2006. For purposes of this Note, “90-day LIBOR
        Rate” shall mean at any time the offered quotation for the rate (expressed as a
        percentage per annum) on deposits in United States dollars in leading banks
        in
        the London interbank market for a three-month period, as published by Bloomberg
        (or its successor) currently on the BBAM Page (or such other pages as may
        replace such pages on the financial information reporting services furnished
        electronically by Bloomberg for the purpose of displaying the rates at which
        deposits in United States dollars are offered by leading banks in the London
        interbank deposit market) at approximately 11:00 A.M. (London time) on the
        applicable interest payment date. If, on any interest payment date, the LIBOR
        Rate cannot be ascertained on the foregoing basis, such rate shall be determined
        from such other financial reporting service or information source as shall
        be
        mutually acceptable to the Maker and the Holders.

      

      The
        principal balance of this Note may be prepaid in whole or in part prior to
        the
        Maturity Date without premium or penalty.

      

      This
        Note
        shall be guaranteed by a second mortgage of the property owned by Garrochales
        Construction and Development Corporation, a wholly owned subsidiary of the
        Maker, located in Arecibo, Puerto Rico.

      

      The
        occurrence of any one or more of the following events shall constitute an
        event
        of default hereunder (Event of Default):

      

      i.    If
        the
        Maker fails to pay when due any payment of principal or interest on this
        Note
        when due;

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

      ii.   If,
        pursuant to or within the meaning of the United States Bankruptcy Code or
        any
        other federal or state law relating to insolvency or relief of debtors (a
        Bankruptcy Law), the Maker shall (i) commence a voluntary case or proceeding;
        (ii) consent to the entry of an order for relief against it in an involuntary
        case; (iii) consent to the appointment of a trustee, receiver, assignee,
        liquidator or similar official; or (iv) make an assignment for the benefit
        of
        its creditors;

      

      iii.  
          If
        a
        court of competent jurisdiction enters an order or decree under any Bankruptcy
        Law that (i) is for relief against Maker in an involuntary case, (ii) appoints
        a
        trustee, receiver, assignee, liquidator or similar official for Maker or
        substantially all of Maker’s properties, or (iii) orders the liquidation of
        Maker, and in each case the order or decree is not dismissed within 120
        days.

      

      Upon
        the
        happening of any Event of Default, the whole of (a) the principal sum of
        this
        Note, (b) interest and other sums as provided herein, and (c) all sums advanced
        and costs and expenses incurred by the Holders in connection with the Debt
        (defined below) or any part thereof, any renewal, extension, or change of
        or
        substitution for the Debt or any part thereof, or the acquisition or perfection
        of the security therefore, whether made or incurred at the request of the
        Maker
        or the Holders (all the sums referred to in (a) through (c) above shall
        collectively be referred to as the "Debt") shall, without presentment, demand,
        protest or other notice of any kind, all of which are hereby expressly waived
        by
        the Maker, become immediately due and payable at the option of the Holders.
        In
        addition to the foregoing, the Holders may exercise any and all other rights
        and
        remedies available to it under applicable law.

      

      The
        Maker
        shall pay all reasonable costs and expenses incurred by or on behalf of the
        Holders in connection with the Holders’ exercise of any or all of their rights
        and remedies under this Note, including reasonable attorneys’ fees and
        expenses.

      

      This
        Note
        may not be modified, amended, waived, extended, changed, discharged or
        terminated orally or by any act or failure to act on the part of the Maker
        or
        the Holders, but only by an agreement in writing signed by the party against
        whom enforcement of any modification, amendment, waiver, extension, change,
        discharge or termination is sought.

      

      The
        Maker
        (and the undersigned representative of the Maker) represents that it has
        full
        power, authority and legal right to execute and deliver this Note and that
        this
        Note constitutes the valid and binding obligations of the Maker.

      

      This
        Note
        is subject to and shall be construed under the laws of the Commonwealth of
        Puerto Rico. The undersigned acknowledges receipt of a true and exact copy
        of
        this Note.

      

      

      [SIGNATURE
        PAGE FOLLOWS]

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

      In
        Vega
        Alta, Puerto Rico, on this 27th day of January, 2006.

      

      
        	 	
                MARGO
                  CARIBE, INC.

              
	 	 	 
	 	 	 
	 	
                By:

              	/s/ Juan B.
                Medina                                    
                
	 	
                Name:

              	
                Juan
                  B. Medina

              
	 	
                Title:

              	
                President
                  and Chief Operating OfficerExhibit
10.1

EXECUTION
COPY

 

 

 

CREDIT
AGREEMENT

relating to a

EUR
440,000,000 364-DAY TERM LOAN FACILITY

Dated as of August 25, 2006

among

SHEFFIELD INVESTMENTS S.L.

and

THE INITIAL LENDERS NAMED HEREIN

and

CITIBANK INTERNATIONAL PLC

as Administrative Agent

 

_________________________

 

CITIGROUP GLOBAL MARKETS LIMITED

UBS SECURITIES LLC

as Joint Lead Arrangers and Joint Bookrunners

 

 

Table of Contents

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  DEFINITIONS
  AND ACCOUNTING TERMS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.1.

  	
  Certain
  Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
  1.2.

  	
  Computation
  of Time Periods

  	
   

  	
  9

  
	
   

  	
   

  	
  1.3.

  	
  Accounting
  Terms

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  AMOUNTS AND
  TERMS OF THE ADVANCES

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.1.

  	
  The Advances

  	
   

  	
  9

  
	
   

  	
   

  	
  2.2.

  	
  Making the
  Advances

  	
   

  	
  9

  
	
   

  	
   

  	
  2.3.

  	
  Repayment
  of Advances

  	
   

  	
  11

  
	
   

  	
   

  	
  2.4.

  	
  Interest on
  Advances

  	
   

  	
  11

  
	
   

  	
   

  	
  2.5.

  	
  Absence of
  Interest Period for Advances; Number of Interest Periods

  	
   

  	
  11

  
	
   

  	
   

  	
  2.6.

  	
  Interest
  Rate Determination for Advances

  	
   

  	
  11

  
	
   

  	
   

  	
  2.7.

  	
  Termination
  or Reduction of the Commitments

  	
   

  	
  12

  
	
   

  	
   

  	
  2.8.

  	
  Prepayments
  of Advances

  	
   

  	
  13

  
	
   

  	
   

  	
  2.9.

  	
  Increased
  Costs

  	
   

  	
  13

  
	
   

  	
   

  	
  2.10.

  	
  Illegality

  	
   

  	
  14

  
	
   

  	
   

  	
  2.11.

  	
  Payments
  and Computations

  	
   

  	
  15

  
	
   

  	
   

  	
  2.12.

  	
  Taxes

  	
   

  	
  16

  
	
   

  	
   

  	
  2.13.

  	
  Sharing of
  Payments, Etc.

  	
   

  	
  18

  
	
   

  	
   

  	
  2.14.

  	
  Evidence of
  Debt

  	
   

  	
  19

  
	
   

  	
   

  	
  2.15.

  	
  Use of
  Proceeds

  	
   

  	
  19

  
	
   

  	
   

  	
  2.16.

  	
  Redenomination
  of Advances

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  CONDITIONS
  TO EFFECTIVENESS AND LENDING

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.1.

  	
  Conditions
  Precedent to Effectiveness

  	
   

  	
  20

  
	
   

  	
   

  	
  3.2.

  	
  Conditions
  Precedent to Each Borrowing

  	
   

  	
  22

  
	
   

  	
   

  	
  3.3.

  	
  Conditions
  Precedent to the Extension

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.1.

  	
  Representations
  and Warranties of the Borrower

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  COVENANTS OF the
  borrower

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.1.

  	
  Affirmative
  Covenants

  	
   

  	
  26

  
	
   

  	
   

  	
  5.2.

  	
  Negative
  Covenants

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  EVENTS
  OF DEFAULT

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.1.

  	
  Events of
  Default

  	
   

  	
  27

  

 

 i
 

 

Table of Contents

(continued)

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  6.2

  	
  Lenders’ Rights upon Event of Default

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7
 	
   

  	
  THE ADMINISTRATIVE
  AGENT

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.1.

  	
  Authorization and Action

  	
   

  	
  30

  
	
   

  	
   

  	
  7.2.

  	
  Administrative Agent’s Reliance, Etc.

  	
   

  	
  30

  
	
   

  	
   

  	
  7.3.

  	
  Citibank and Affiliates

  	
   

  	
  31

  
	
   

  	
   

  	
  7.4.

  	
  Lender Credit Decision

  	
   

  	
  31

  
	
   

  	
   

  	
  7.5.

  	
  Indemnification

  	
   

  	
  31

  
	
   

  	
   

  	
  7.6.

  	
  Successor Agents

  	
   

  	
  32

  
	
   

  	
   

  	
  7.7.

  	
  Joint Lead Arrangers and Bookrunners

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.
 	
   

  	
  MISCELLANEOUS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.1.

  	
  Amendments, Etc.

  	
   

  	
  32

  
	
   

  	
   

  	
  8.2.

  	
  Notices, Etc.

  	
   

  	
  33

  
	
   

  	
   

  	
  8.3.

  	
  No Waiver; Remedies

  	
   

  	
  34

  
	
   

  	
   

  	
  8.4.

  	
  Costs and Expenses

  	
   

  	
  34

  
	
   

  	
   

  	
  8.5.

  	
  Right of Set-Off

  	
   

  	
  35

  
	
   

  	
   

  	
  8.6.

  	
  Binding Effect

  	
   

  	
  35

  
	
   

  	
   

  	
  8.7.

  	
  Assignments and Participations

  	
   

  	
  35

  
	
   

  	
   

  	
  8.8.

  	
  Release/Application of Collateral

  	
   

  	
  38

  
	
   

  	
   

  	
  8.9.

  	
  Governing Law

  	
   

  	
  39

  
	
   

  	
   

  	
  8.10.

  	
  Execution in Counterparts

  	
   

  	
  39

  
	
   

  	
   

  	
  8.11.

  	
  Jurisdiction, Etc.

  	
   

  	
  39

  
	
   

  	
   

  	
  8.12.

  	
  Confidentiality

  	
   

  	
  40

  
	
   

  	
   

  	
  8.13.

  	
  Integration

  	
   

  	
  40

  
	
   

  	
   

  	
  8.14.

  	
  USA Patriot Act Notice, Etc.

  	
   

  	
  40

  
	
   

  	
   

  	
  8.15

  	
  Judgment

  	
   

  	
  40

  

 ii
 

 

Table of Contents

(continued)

 

SCHEDULE

	
  Schedule 1

  	
   

  	
  -

  	
   

  	
  List of Applicable Lending Offices

  
	
  Schedule 2

  	
   

  	
  -

  	
   

  	
  Calculation of Mandatory Cost

  
	
  Schedule 3

  	
   

  	
  -

  	
   

  	
  Commitments

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A-1

  	
   

  	
  -

  	
   

  	
  Form of Notice of Borrowing

  
	
  Exhibit A-2

  	
   

  	
  -

  	
   

  	
  Form of Interest Period Election Notice

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  Form of Assignment and Acceptance

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Form of Bank Account Charge

  
	
  Exhibit D

  	
   

  	
  -

  	
   

  	
  Form of Note

  
	
  Exhibit E-1

  	
   

  	
  -

  	
   

  	
  Form of Opinion of Spanish Counsel for the Borrower

  
	
  Exhibit E-2

  	
   

  	
  -

  	
   

  	
  Form of Opinion of New York Counsel for the Borrower

  
	
  Exhibit E-3

  	
   

  	
  -

  	
   

  	
  Form of Opinion of English Counsel for the Borrower

  
	
  Exhibit F

  	
   

  	
  -

  	
   

  	
  Form of Opinion of New York Counsel for the
  Administrative Agent

  
	
  Exhibit G

  	
   

  	
  -

  	
   

  	
  Form of Confidentiality Agreement

  

 

 iii

 

THIS
AGREEMENT is dated as of August 25, 2006

AMONG

(1)         SHEFFIELD INVESTMENTS S.L., a company
organized under the laws of the Kingdom of Spain (the “Borrower”);

(2)         THE FINANCIAL INSTITUTIONS AND OTHER
INSTITUTIONAL LENDERS (the “Initial Lenders”) listed on the
signature pages hereof; and

(3)         CITIBANK INTERNATIONAL PLC (“Citibank”),
as administrative agent (the “Administrative Agent”) for the Lenders;
and

IT IS
AGREED as follows:

1.             DEFINITIONS AND ACCOUNTING TERMS

1.1.                              Certain
Defined Terms.  As used in this
Agreement, 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):

“Account
Bank” has the meaning specified in the Account Bank Agreement.

“Account
Bank Agreement” means the account bank agreement between the Borrower and
Citibank, N.A., London Branch establishing the Charged Account.

“Administrative
Agent” has the meaning specified in the recital of the parties to this
Agreement.

“Administrative
Agent Account” means (a) for transactions in Euro, the account of Citibank,
maintained by Citibank, N.A., at its office in London, England, Account No.
944823, Attention Loans Agency, (b)  for
transactions in Sterling, the account of Citibank, maintained by Citibank,
N.A., at its office in London, England, Account No. 558397, Attention Loans
Agency, or (c) such other account as is designated in writing from time to time
by the Administrative Agent, the Borrower and the Lenders for such purpose.

“Advance”
has the meaning specified in Section 2.1(a).

“Agent”
means the Administrative Agent or the Collateral Agent.

“Applicable
Interest Rate Margin” means 0.25% per annum.

“Applicable
Lending Office” means, with respect to each Lender, such Lender’s lending
office set forth on Schedule 1 hereto or in the Assignment and Acceptance 

 1
 

 

pursuant to which it
became a Lender, or such other office of such Lender as such Lender may from
time to time specify to the Borrower and the Administrative Agent.

“Assignment
and Acceptance” 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.

“Availability
Date” means the date that is 30 days after the date of this Agreement or,
if such date is not a Business Day, the next succeeding Business Day.

“Bank
Account Charge” has the meaning specified in Section 3.1.

“Board”
means the Board of Governors of the Federal Reserve System of the United States
(or any successor).

“Borrower”
has the meaning specified in the recital of the parties to this Agreement.

“Borrowing”
means a borrowing consisting of simultaneous Advances made by each of the
Lenders pursuant to Section 2.2.

“Business
Day” means a day on which banks are open for business in London and the
Trans-European Automated Real-time Gross settlement Express Transfer System
(TARGET) is operating.

“Charge”
has the meaning specified in the Bank Account Charge.

“Charged
Assets” has the meaning specified in the Bank Account Charge.

“Charged
Account” has the meaning specified in the Bank Account Charge.

“Collateral”
means all collateral referred to in the Collateral Documents.

“Collateral
Agent” means Citicorp Trustee Company, Limited, in its capacity as
Collateral Agent under the Collateral Documents, and its successors and
assigns.

“Collateral
Documents” means the Bank Account Charge or any document delivered pursuant
to Section 5.1(c) intended to create a lien in favor of the Collateral Agent.

“Commitment”
means as to any Lender (i) the amount set forth opposite such Lender’s name on
Schedule 3 hereof or (ii) if such Lender has entered into an Assignment and
Acceptance, the amount set forth for such Lender in the Register maintained by
the Administrative Agent pursuant to Section 8.7(d), in each case as such
amount may be reduced pursuant to Section 2.7.

“Debt”
means, without duplication, (a) indebtedness for borrowed money or for the
deferred purchase price of property or services, whether or not evidenced by
bonds, 

 2
 

 

debentures, notes or similar instruments, (b)
obligations as lessee under leases that, in accordance with accounting
principles generally accepted in the United States, are recorded as capital
leases, and (c) obligations under direct or indirect guaranties in respect of,
and obligations (contingent or otherwise) to purchase or otherwise acquire, or
otherwise to assure a creditor against loss in respect of, indebtedness or
obligations of any other Person of the kinds referred to in clause (a) or (b)
above.

“Default”
means any event specified in Section 6.1 that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both.

“Effective
Date” has the meaning specified in Section 3.1.

“Eligible
Assignee” means (i) a commercial bank organized under the laws of the
United States, or any State thereof, and having total assets in excess of
$5,000,000,000; (ii) a commercial bank organized under the laws of any other
country which is a member of the Organization for Economic Cooperation and Development
(or any successor) (“OECD”), or a political subdivision of such country, and
having total assets in excess of $5,000,000,000; (iii) the central bank of any
country which is a member of the OECD; (iv) a commercial finance company or
finance Subsidiary of a corporation organized under the laws of a European
Union member country and having total assets in excess of $5,000,000,000; (v)
an insurance company organized under the laws of a European Union member
country and having total assets in excess of $5,000,000,000; (vi) any Lender;
(vii) an affiliate of any Lender; (viii) any other bank, commercial finance
company insurance company or other Person approved in writing by the Guarantor,
which approval shall be notified to the Administrative Agent; provided that in
each case (i) through (viii) above, such Person is (x) a European Union
resident without a permanent establishment in Spain to which payments under
this Agreement are attributable and that is not deemed resident in a tax haven
under Spanish legislation, or (y) resident in a country with an income tax
treaty with Spain pursuant to which taxation of interests applies only in the
country of residence of the lender.

“Equivalent”
in any currency, with respect to any other currency and as of any date, means
the rate at which the Administrative Agent offers to exchange such currency for
such other currency for same day settlement at its principal office in London
as of 11:00 A.M. (London time) on such date.

“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 Person that for purposes of Title IV of ERISA 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 with respect to a Plan of a reportable
event, within the meaning of Section 4043 of ERISA, unless the 30-day notice
requirement with respect thereto has been waived by the Pension Benefit
Guaranty 

 3
 

 

Corporation (or any successor) (“PBGC”), or
(ii) the requirements of subsection (1) of Section 4043(b) of ERISA (without
regard to subsection (2) of such section) are met with respect to 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 of its ERISA Affiliates in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the Borrower or any of its   ERISA Affiliates 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 set forth in Section
302(f)(1)(A) and (B) of ERISA to the creation of a lien upon property or rights
to property of the Borrower or any of its ERISA Affiliates for failure to make
a required payment to a Plan are satisfied; (g) the adoption of an amendment to
a Plan requiring the provision of security to such Plan, pursuant to Section
307 of ERISA; or (h) the termination of a Plan by the PBGC pursuant to Section
4042 of ERISA, or the occurrence of any event or condition described in Section
4042 of ERISA that constitutes grounds for the termination of, or the
appointment of a trustee to administer, a Plan.

“EURIBOR”
means an interest rate per annum equal to either:

(a)           (i) the offered rate per annum at
which deposits in Euro appear on Reuters Page EURIBOR01 (or any successor page)
as of 11:00 A.M. (Brussels time) two Business Days before the first day of an
Interest Period for a period equal to such Interest Period as determined by the
Banking Federation of the European Union or (ii) with respect to an initial
EURIBOR Interest Period beginning on the date of any redenomination of Advances
pursuant to Section 2.16, the arithmetic mean (rounded upward to the nearest
whole multiple of 1/16 of 1% per annum, if such arithmetic mean is not such a
multiple) of the rates per annum at which deposits in Euro are offered by the
principal office of each of the Reference Banks to prime banks in the European
interbank market at 11:00 A.M. (Brussels time) on the first day of such
Interest Period for an amount substantially equal to the amount that would be
the Reference Banks’ respective ratable shares of such Borrowing outstanding
during such Interest Period and for a period equal to such Interest Period, as
determined by the Administrative Agent on such date, subject, however,
to the provisions of Section 2.6, or

(b)           if EURIBOR does not appear on Reuters
Page EURIBOR01 (or any successor page), then EURIBOR will be determined by
taking the arithmetic mean (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such arithmetic mean is not such a multiple) of the
rates per annum at which deposits in Euro are offered by the principal office
of each of the Reference Banks to prime banks in the European interbank market
at 11:00 A.M. (Brussels time) two Business Days before the first day of such
Interest Period for an amount substantially equal to the amount that would be
the Reference Banks’ respective ratable shares of such Borrowing outstanding 

 4
 

 

during such Interest Period and for a period equal to
such Interest Period, as determined by the Administrative Agent, subject,
however, to the provisions of Section 2.6.

“EURIBOR
Advance” means an Advance denominated in Euro that bears interest as
provided in Section 2.4(a).

“Euro”,
“EUR” and the “€” sign each mean the single currency of the
Participating Member States.

“Existing
Facility” means the senior facilities agreement dated 14 December 1999
between, inter alios, United Biscuits Group (Investments) Limited, as Parent,
and Deutsche Bank AG London, as Agent and Security Agent and in various other
capacities (as amended, supplemented, varied and/or restated through the date
hereof).

“Extension”
means the extension of the Termination Date to the date that is 364 days from
the date of this Agreement as a result of the occurrence of the Extension Date.

“Extension
Date” has the meaning specified in Section 3.3.

“Event
of Default” has the meaning specified in Section 6.1.

“Facility” means, at any time, the aggregate amount of the
Lenders’ Commitments at such time.

“Federal
Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978, as
amended from time to time.

“Governmental
Authority” means any nation or government, any state, province, city,
municipal entity or other political subdivision thereof, and any governmental,
executive, legislative, judicial, administrative or regulatory agency,
department, authority, instrumentality, commission, board, bureau or similar
body, whether federal, state, provincial, territorial, local or foreign.

“Guarantor”
means the Person executing the Guaranty.

“Guaranty”
has the meaning specified in Section 3.3.

“Home
Jurisdiction Withholding Taxes” means withholding taxes imposed by the
jurisdiction under the laws of which the Borrower is organized or any political
subdivision thereof.

“Interest
Period” means for each Advance comprising part of the same Borrowing, the
period commencing on the date of such Advance and ending on the last day of the
period selected by the Borrower requesting such Borrowing pursuant to the
provisions below.  The duration of such
Interest Period for an Advance shall be one, two, three or six months, as the
Borrower may select upon notice received by the Administrative Agent,
substantially in the form of Exhibit A-2 hereto, not later than 

 5
 

 

11:00 A.M. (London time) on the third Business Day
prior to the first day of such Interest Period; provided, however,
that:

(a)           the Borrower may not select any
Interest Period that ends after the Termination 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
Business Day, provided that if such extension would cause the last day
of such Interest Period to occur in the next following calendar month, the last
day of such Interest Period shall occur on the immediately preceding Business
Day;

(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;

(d)           the duration of each Interest Period
for LIBOR Advances shall be one Business Day, and

(e)           each Interest Period for EURIBOR
Advances beginning prior to the Availability Date shall end on the date that is
one month after the Extension Date.

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

“Lenders”
means the Initial Lenders and each Person that shall become a Lender hereunder
pursuant to Section 8.7 for so long as such Initial Lender or Person, as
the case may be, shall be a party to this Agreement.

“LIBOR”
means an interest rate per annum equal to either:

(a)           the offered rate per annum at which
deposits in Sterling on an overnight basis appears on the appropriate British
Bankers’ Association screen (or any successor page) at or about 11:00 A.M.
(London time) on the day of an Interest Period, or

(b)           if LIBOR does not appear on such
British Bankers’ Association screen (or any successor page), then LIBOR will be
determined by taking the arithmetic mean (rounded upward to the nearest whole
multiple of 1/16 of 1% per annum, if such arithmetic mean is not such a
multiple) of the rates per annum at which deposits in Sterling on an overnight
basis are offered by the principal office of each of the Reference Banks to
prime banks in the London interbank market at or about 11:00 A.M. (London time)
on the day of such Interest Period for an amount substantially equal to the
amount that would be the Reference Banks’ respective ratable shares of such
Borrowing outstanding during such Interest Period and for a period equal to
such Interest Period, as 

 6
 

 

determined by the Administrative Agent, subject,
however, to the provisions of Section 2.6.

“LIBOR
Advance” means an Advance denominated in Sterling that bears interest as
provided in Section 2.4(b).

“Lien”
has the meaning specified in Section 5.2(a).

“Loan
Documents” means this Agreement, the Notes, prior to the Extension, the
Collateral Documents and the Account Bank Agreement, and on and after the
Extension Date, the Guaranty, in each case as amended.

“Loan
Party” means the Borrower and, on and after the Extension Date, the
Guarantor.

“Mandatory
Cost” means the percentage rate per annum calculated by the Administrative
Agent in accordance with Schedule 2.

“Margin
Stock” means margin stock, as such term is defined in Regulation U.

“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, such plan being
maintained pursuant to one or more collective bargaining agreements.

“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 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 have liability under Section 4064 or 4069 of ERISA
in the event such plan has been or were to be terminated.

“Note”
means a promissory note of the Borrower payable to the order of any Lender, in
substantially the form of Exhibit D hereto, evidencing the indebtedness of the
Borrower to such Lender resulting from the Advances made by such Lender to the
Borrower.

“Notice
of Borrowing” has the meaning specified in Section 2.2(a).

“Other
Taxes” has the meaning specified in Section 2.12(c).

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

 7
 

 

“Party”
means, with respect to any agreement or other document, a party to such
agreement or document (including, if no other agreement or document is
specified, this Agreement).

“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.

“Redenomination
Date” has the meaning specified in Section 2.16.

“Reference
Banks” means the Initial Lenders.

“Register”
has the meaning specified in Section 8.7(d).

“Regulation
A” means Regulation A of the Board, as in effect from time to time.

“Regulation
U” means Regulation U of the Board, as in effect from time to time.

“Required
Lenders” means at any time Lenders holding at least 50.1% of the aggregate
Commitments at such time.

“Secured
Obligation” has the meaning specified in Clause 1.1 of the Bank Account
Charge.

“Secured
Parties” means the Agents and the Lenders.

“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.

“Sterling”
and the “₤” sign each means the lawful currency of the United
Kingdom of Great Britain and Northern Ireland.

“Subsidiary”
of any Person means any corporation of which (or in which) more than 50% of the
outstanding capital stock having voting power to elect a majority of the Board
of Directors of such corporation (irrespective of whether at the time capital
stock of any other class or classes of such corporation 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.

“Taxes”
has the meaning specified in Section 2.12(a).

 8
 

 

“Termination
Date” means the earlier of (a) the date that is twenty days after the date
of the initial Borrowing hereunder, or, if the Extension shall have occurred on
or prior to such date, the date that is 364 days after the date of this
Agreement, and (b) the date of termination in whole of the Commitments pursuant
to Section 2.7 or 6.2.

1.2.                              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” and the words “to” and “until” each mean “to but excluding.”

1.3.                              Accounting
Terms.  All accounting terms not
specifically defined herein shall be construed in accordance with relevant generally accepted accounting principles.

2.             AMOUNTS AND TERMS OF THE ADVANCES

2.1.                              The
Advances.  (a)  Obligation to Make Advances.  Each Lender severally agrees, on the terms
and conditions hereinafter set forth, to make up to
four advances, in addition to any deemed Advance pursuant to Section 2.16, to
the Borrower (each an “Advance” and collectively, with any deemed
Advances made pursuant to Section 2.16, the “Advances”) from time to
time on any Business Day during the period from the Effective Date until the
Availability Date, in an aggregate amount not to exceed such Lender’s
Commitment at such time (calculated, with respect to LIBOR Advances, at the
Sterling Equivalent in Euro at such time).

(b)                                      Amount
of Borrowings.  Each Borrowing shall
be in an aggregate amount of no less than €5,000,000 (or if applicable, the
Equivalent in Sterling).

(c)                                       Type
of Advances.  Each Borrowing shall
consist of (i) on and prior to the Extension Date, LIBOR Advances or (ii) on
and subsequent to the Extension Date, EURIBOR Advances, made on the same day by
the Lenders ratably according to their respective Commitments.  Amounts borrowed under this
Section 2.1(c) and repaid or prepaid may not be reborrowed.

2.2.                              Making
the Advances.  (a)  Notice of Borrowing.  Each Borrowing shall be made on notice by the
Borrower by facsimile to the Administrative Agent,
which shall give to each Lender prompt notice thereof by facsimile or other
electronic communication; such notice by the Borrower to be given not later
than (x) in the case of a Borrowing proposed to be made prior to the Extension
Date, 1:00 P.M. (London time) on the Business Day prior to the date of the
proposed Borrowing, (y) in the case of a Borrowing proposed to be made on the
Extension Date, 9:00 A.M. (London time) on date of the proposed Borrowing, and
(z) in the case of a Borrowing proposed to be made thereafter, 10:00 A.M.
(Brussels time) on the second Business Day prior to the date of the proposed
Borrowing.  Each such notice of a
Borrowing (a “Notice of Borrowing”) shall be by facsimile, such notice
to be in substantially the form of Exhibit A-1 hereto, specifying therein the
requested:

(i)            date of such Borrowing, and

 9
 

 

(ii)           aggregate amount and currency of such
Borrowing.

(b)                                      Funding
Advances.  Each Lender shall, before
2:00 P.M. (London time) on the date of such Borrowing, make available for the
account of its Applicable Lending Office to the Administrative Agent at the
Administrative Agent’s Account, in same day funds, such Lender’s ratable
portion of such Borrowing.  After receipt
of such funds by the Administrative Agent and upon fulfillment of the
applicable conditions set forth in Article 3, the Administrative Agent will
make such funds available to the Borrower as specified in the applicable Notice
of Borrowing.

(c)                                       Irrevocable
Notice.  Each Notice of Borrowing of
the Borrower shall be irrevocable and binding on the Borrower.  The Borrower shall indemnify each Lender
against any loss, cost or expense incurred by such Lender as a result of any
failure to fulfill on or before the date specified in such Notice of Borrowing
for such Borrowing the applicable conditions set forth in Article 3, including,
without limitation, any 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)                                      Lender’s
Ratable Portion.  Unless the
Administrative Agent shall have received notice from a Lender prior to 2:00
P.M. (London time) on the day 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 2.2(b) and the Administrative Agent may, in reliance
upon such assumption, make available to the Borrower proposing such Borrowing
on such date a corresponding amount.  If
and to the extent that such Lender shall not have so made such ratable portion
available to the Administrative Agent such Lender and the Borrower severally
agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is
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 cost
of funds incurred by the Administrative Agent in respect of such amount.

If such Lender shall repay to the Administrative Agent
such corresponding amount, such amount so repaid shall constitute such Lender’s
Advance as part of such Borrowing for purposes of this Agreement.

(e)                                       Independent
Lender Obligations.  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 

 10
 

 

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.

2.3.                              Repayment
of Advances.  The Borrower shall
repay to the Administrative Agent for the ratable account of the Lenders on the Termination Date the unpaid principal
amount of the Advances then outstanding.

2.4.                              Interest
on Advances.  Subject to Section
2.6(c), the Borrower shall pay interest on the unpaid principal amount of each Advance owing by the Borrower to each Lender from
the date of such Advance until such principal amount shall be paid in full, at
the following rates per annum:

(a)                                       EURIBOR
Advances.  During such periods as
such Advance is a EURIBOR Advance, a rate per annum equal at all times during
each Interest Period for such Advance to the sum of (x) EURIBOR for such
Interest Period for such Advance plus (y) the Applicable Interest Rate
Margin plus (z) Mandatory Cost, if any, payable in arrears on the last
day of such Interest Period and on the date such EURIBOR Advance shall be paid
in full.

(b)                                      LIBOR
Advances.  During such periods as
such Advance is a LIBOR Advance, a rate per annum equal at all times during
each Interest Period for such Advance to the sum of (x) LIBOR for such Interest
Period for such Advance plus (y) the Applicable Interest Rate Margin plus
(z) Mandatory Cost, if any, payable in arrears on the last day of such Interest
Period and on the date such LIBOR Advance shall be paid in full; provided,
that notwithstanding the foregoing, interest accrued on each LIBOR Advance on
or prior to the date that is the earlier of the Termination Date and the
Redenomination Date shall be payable in arrears on such date (and subject, in
the case of a redenomination of Advances, to being capitalized pursuant to
Section 2.16).

2.5.                              Absence
of Interest Period for Advances; Number of Interest Periods.  (a)  If
the Borrower shall fail to select the duration of any
Interest Period for any Advances beginning on or after the Availability Date in
accordance with the provisions contained in the definition of the term “Interest
Period,” the Administrative Agent will forthwith so notify the Borrower and the
Lenders and the Interest Period for such Advances will automatically, on the
last day of the then existing Interest Period therefor, be one month.

(b)                                      The
Borrower may not select more than two simultaneous Interest Periods for
Advances for any period beginning on the date that is one month after the
Extension Date.

2.6.                              Interest
Rate Determination for Advances. 
(a)  Methods to Determine
EURIBOR and LIBOR.  The
Administrative Agent shall determine EURIBOR and
LIBOR by using the methods described in the definition of the terms “EURIBOR”
and “LIBOR,” respectively, and shall give prompt notice to the Borrower and
Lenders of each such EURIBOR or LIBOR.

 11
 

 

(b)                                      Role
of Reference Banks.  In the event
that EURIBOR or LIBOR cannot be determined by the method described in clause
(a) of the definitions “EURIBOR” or “LIBOR,” respectively, each Reference Bank
agrees to furnish to the Administrative Agent timely information for the
purpose of determining EURIBOR or LIBOR, as the case may be, in accordance with
the method described in clause (b) of the definitions thereof.  If any one or more of the Reference Banks shall
not furnish such timely information to the Administrative Agent for the purpose
of determining EURIBOR or LIBOR, the Administrative Agent shall determine such
interest rate on the basis of timely information furnished by the remaining
Reference Banks.

(c)                                       Market
Disruption. (i) If the applicable Reuters Page or British Bankers’
Association screen is unavailable and no Reference Banks furnish timely
information to the Administrative Agent for determining EURIBOR for any EURIBOR
Advances or LIBOR for any LIBOR Advances, as the case may be, or (ii) the
Lenders owed or required to lend at least 50.1% of the aggregate principal
amount of the Facility notify the Administrative Agent that EURIBOR or LIBOR
for any Interest Period will not adequately reflect the cost to such Lenders of
making, funding or maintaining their respective Advances for such Interest
Period (each, a “Market Disruption Event”) then the rate of interest on
each Lender’s share of that Advance for the Interest Period shall be the rate
per annum which is the sum of (x) the Applicable Interest Rate Margin plus
(y) the rate notified to the Administrative Agent and the Borrower by that
Lender in a certificate (which sets out the details of the computation of the
relevant rate and shall be prima  facie non-binding evidence of
the same) as soon as practicable and in any event before interest is due to be
paid in respect of that Interest Period, to be that which expresses as a
percentage rate per annum the cost to that Lender of funding its participation
in that Advance from whatever source it may reasonably select plus  (z) Mandatory Cost, if any, applicable to
that Lender’s participation in the Advance.

(d)                                      If
a Market Disruption Event occurs and the Administrative Agent or the Borrower
so requires:

(i)            the Administrative Agent and the Borrower
shall enter into negotiations (for a period of not more than thirty days) with
a view to agreeing on a substitute basis for determining the interest rate; and

(ii)           any alternative basis agreed upon
pursuant to clause (i) above shall, with the prior consent of all the Lenders
and the Borrower, be binding on all such parties hereto.

2.7.                              Termination
or Reduction of the Commitments.  (a)
On the Availability Date, after giving effect to any Borrowings made on or before such date, and from time to time
thereafter upon each repayment or prepayment of the Advances, the aggregate
Commitments of the Lenders shall be automatically and permanently reduced, on a
pro rata basis, by an amount equal to the amount by which the aggregate
Commitments immediately prior to such reduction exceed the aggregate unpaid
principal amount of the Advances then outstanding.

 12

 

(b)         The Borrower may, upon at least three
Business Days’ notice to the Administrative Agent, terminate in whole or reduce
in part the unused portions of the Commitment; provided,
however, that each partial reduction thereof shall be in an
aggregate amount of at least €20,000,000.

2.8.                              Prepayments
of Advances.  (a)  Mandatory
Prepayments.  If, on the date of a
redenomination of Advances made pursuant to Section
2.16, after giving effect to such redenomination the Administrative Agent
notifies the Borrower that the aggregate principal amount of the Advances
exceeds the aggregate amount of the Lenders’ Commitments on such date, the
Borrower shall on such date prepay an amount of Advances equal to the amount of
such excess.

(b)                                      Optional
Prepayments.  The Borrower may, upon at
least three Business Days’ notice to the Administrative Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given the Borrower shall, prepay the outstanding principal amount of
the Advances comprising part of the same Borrowing in whole or ratably in part;
provided, however, that each partial prepayment shall be in an
aggregate principal amount of no less than €20,000,000 (or its Equivalent in
Euro in the case of a LIBOR Advance), as the case may be, or the remaining
balance if less than €20,000,000 (or its Equivalent in Euro in the case of a
LIBOR Advance).

(c)                                       Each
prepayment made pursuant to this Section 2.8 shall be made together with any
unpaid interest accrued to the date of such prepayment on the principal amounts
prepaid and any additional amounts which the Borrower shall be obligated to
reimburse to the Lenders in respect thereof pursuant to Section 8.4(b).

2.9.                              Increased
Costs.  (a)  Costs from Change in Law or Authorities.  If, due to either (i) the introduction of or
any change (other than any change by way of
imposition or increase of reserve requirements to the extent such change is
included in Mandatory Cost) in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any
central bank or other governmental authority (whether or not having the force
of law), there shall be any increase in the cost to any Lender of agreeing to
make or making, funding or maintaining Advances (excluding for purposes of this
Section 2.9 any such increased costs resulting from (i) Taxes or Other Taxes
(as to which Section 2.12 shall govern) and, (ii) changes in the basis of
taxation of overall net income or overall gross income by the jurisdiction or
state under the laws of which such Lender is organized, or has its Applicable
Lending Office or any political subdivision thereof, then the Borrower of the
affected Advances 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 for such increased cost; provided, however,
that before making any such demand, each Lender agrees to use reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if the making
of such a designation would avoid the need for, or reduce the amount of, such
increased cost and would not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to such Lender. 
A certificate as to the amount of 

 13
 

 

such increased cost,
submitted to the Borrower and the Administrative Agent by such Lender, shall be
conclusive and binding for all purposes, absent manifest error.

(b)                                      Reduction
in Lender’s Rate of Return.  In the
event that, after the date hereof, the implementation of or any change in any
law or regulation, or any guideline or directive (whether or not having the
force of law) or the interpretation or administration thereof by any central
bank or other authority charged with the administration thereof, imposes,
modifies or deems applicable any capital adequacy or similar requirement
(including, without limitation, a request or requirement which affects the
manner in which any Lender allocates capital resources to its commitments,
including its obligations hereunder) and as a result thereof, in the sole
opinion of such Lender, the rate of return on such Lender’s capital as a
consequence of its obligations hereunder is reduced to a level below that which
such Lender could have achieved but for such circumstances, but reduced to the
extent that Borrowings are outstanding from time to time, then in each such
case, upon demand from time to time the Borrower shall pay to such Lender such
additional amount or amounts as shall compensate such Lender for such reduction
in rate of return; provided that, in the case of each Lender, such
additional amount or amounts shall not exceed 0.15 of 1% per annum of such
Lender’s Commitment.  A certificate of
such Lender as to any such additional amount or amounts shall be conclusive and
binding for all purposes, absent manifest error.  Except as provided below, in determining any
such amount or amounts each Lender may use any reasonable averaging and
attribution methods.  Notwithstanding the
foregoing, each Lender shall take all reasonable actions to avoid the
imposition of, or reduce the amounts of, such increased costs, provided
that such actions, in the reasonable judgment of such Lender, will not be
otherwise disadvantageous to such Lender, and, to the extent possible, each
Lender will calculate such increased costs based upon the capital requirements
for its Commitment hereunder and not upon the average or general capital
requirements imposed upon such Lender.

2.10.                        Illegality.  Notwithstanding any other provision of this
Agreement, 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 asserts that it is unlawful, for such Lender or its Applicable
Lending Office to perform its obligations hereunder to make Advances or to fund
or maintain Advances, then the obligation of such Lender to make such Advances
shall be suspended until the Administrative Agent shall notify the Borrower and
the Lenders that the circumstances causing such suspension no longer exist and
the relevant aggregate Commitments shall be temporarily reduced by the amount
of such Lender’s share of the Commitments affected by such illegality for the
duration of the suspension with respect to such Advances; provided, however,
that each Lender agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such a designation would allow such
Lender or its Applicable Lending Office to continue to perform its obligations
to make Advances or to continue to fund or maintain Advances and would not, in
the judgment of such Lender, be otherwise disadvantageous to such Lender.

 14
 

 

2.11.                        Payments
and Computations.  (a)  Time and Distribution of Payments.  The Borrower shall make each payment hereunder, without set-off or counterclaim, not later
than 11:00 A.M. (London time) on the day when due to the Administrative Agent
at the Administrative Agent’s Account in same day funds.  The Administrative Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest ratably (other than amounts payable pursuant to Section
2.9, 2.12 or 8.4(b)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment of any other
amount 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.  From and after the effective
date of an Assignment and Acceptance pursuant to Section 8.7, the
Administrative Agent shall make all payments hereunder in respect of the
interest assigned thereby to the Lender assignee thereunder, and the parties to
such Assignment and Acceptance shall make all appropriate adjustments in such payments
for periods prior to such effective date directly between themselves.

(b)                                      Computation
of Interest.  All computations of
interest shall be made by the Administrative Agent on the basis of a year of
360 days for EURIBOR Advances and 365 days for LIBOR Advances, 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 are payable.  Each determination by the Administrative
Agent of an interest rate hereunder shall be conclusive and binding for all
purposes, absent manifest error.

(c)                                       Payment
Due Dates.  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, as the case may be; provided, however, that if such
extension would cause payment of interest on or principal of EURIBOR Advances
or LIBOR Advances to be made in the next following calendar month, such payment
shall be made on the immediately preceding Business Day.

(d)                                      Presumption
of Borrower Payment.  Unless the
Administrative Agent receives 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 has not made such payment in full to the Administrative Agent, each
Lender shall repay to the Administrative Agent 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 cost of funds incurred by
the Administrative Agent in respect of such amount.

(e)                                       Default
Interest.  Upon the occurrence and
during the continuance of an Event of Default, the Borrower shall pay interest
on the unpaid principal amount of each Advance 

 15
 

 

owing to each
Lender, payable in arrears on the dates referred to in Section 2.4 or Section
2.11, at a rate per annum equal at all times to 1% per annum above the rate per
annum required to be paid on such Advance.

2.12.                        Taxes.  (a) Any and all payments by the Borrower
hereunder shall be made, in accordance with Section 2.11, free and clear of and without deduction for any and all
present or future taxes, levies, imposts, deductions, charges or withholdings,
and all liabilities with respect thereto, excluding, (i) in the case of each
Lender and each Agent, taxes imposed on its net income and franchise taxes
imposed on it , in each case, by the jurisdiction under the laws of which such
Lender or Agent (as the case may be), is organized or any political subdivision
thereof, (ii) in the case of each Lender, taxes imposed on its overall net
income and franchise taxes imposed on it , in each case, by the jurisdiction of
such Lender’s Applicable Lending Office or any political subdivision thereof,
and (iii) in the case of each Lender and each Agent, taxes imposed on its net
income,  franchise taxes imposed on it
and any tax imposed by means of withholding, in each case, to the extent such
tax is imposed solely as a result of a present or former connection (other than
the execution, delivery and performance of this Agreement or a Note or the
receipt of any payment, or the enforcement of any rights, under this Agreement
or a Note ) between such Lender or Agent (as the case may be) and the taxing
jurisdiction (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities in respect of payments hereunder being
hereinafter referred to as “Taxes”).

(b)                                      If
the Borrower shall be required by law to deduct any Taxes from or in respect of
any sum payable hereunder to any Lender or Agent, (i) 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)
such Lender or Agent (as the case may be), receives an amount equal to the sum
it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law.

(c)                                       In
addition, the Borrower shall pay any present or future stamp or documentary
taxes or any other excise, transfer or property taxes, charges or similar
levies that arise from any payment made hereunder or from the execution,
delivery or registration of, performing under, or otherwise with respect to,
this Agreement (hereinafter referred to as “Other Taxes”).

(d)                                      The
Borrower shall indemnify each Lender and each Agent for and hold it harmless
against the full amount of Taxes or Other Taxes (including, without limitation,
Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.12) paid by such Lender or Agent (as the case may be), and any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto, whether or not such Taxes or Other Taxes were correctly
or legally asserted.  This
indemnification shall be made within 30 days from the date such Lender or Agent
(as the case may be), makes written demand therefor.

 16
 

 

(e)                                       Within
30 days after the date of any payment of Taxes, the applicable Loan Party shall
furnish to the relevant Agent at its address referred to in Section 8.2, the
original or a certified copy of a receipt evidencing such payment.  If the Borrower determines that no Taxes are
payable in respect thereof, the Borrower shall, at the request of the relevant
Agent, furnish or cause the payor to furnish, such Agent and each Lender an
opinion of counsel reasonably acceptable to such Agent stating that such
payment is exempt from Taxes.

(f)                                         Each
Lender shall provide each of the Agents and the Borrower with two original
Internal Revenue Service Forms W-9, W-8BEN or W-8ECI, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service certifying
that such Lender is exempt from or entitled to a reduced rate of United States
federal withholding taxes on payments pursuant to this Agreement as reasonably
requested in writing by the Borrower or the relevant Agent but only to the extent
that it is lawfully able to do so.

(g)                                      Each
Lender, on or prior to the date of its execution and delivery of this Agreement
in the case of each Initial Lender and on the date of the Assignment and
Acceptance pursuant to which it becomes a Lender in the case of each other
Lender, shall provide each of the Agents and the Borrower with any form or
certificate that is required by any taxing authority certifying that such
Lender is exempt from or entitled to a reduced rate of Home Jurisdiction
Withholding Taxes on payments pursuant to this Agreement (including, if
applicable, a certificate of residency for tax purposes duly issued by the
competent tax authority of the country of residence of such Lender so that
payments can be made by the Borrower without withholding tax being imposed), it
being understood that the Certificates of Residence in the United Kingdom
previously provided by the Initial Lenders to the Borrower and the Agents
satisfy this requirement as to them. Thereafter, each such Lender shall provide
additional certificates (i) to the extent a form or certificate previously
provided has become inaccurate or invalid or has otherwise ceased to be
effective or (ii) as requested in writing by the Borrower or the relevant
Agent.  Unless the Borrower has received
forms or other documents satisfactory to them indicating that payments
hereunder are not subject to Home Jurisdiction Withholding Taxes or are subject
to Home Jurisdiction Withholding Taxes at a rate reduced by an applicable tax
treaty, the Borrower shall withhold taxes from such payments at the applicable
statutory rate in the case of payments to or for any Lender.

(h)                                      Any
Lender claiming any additional amounts payable pursuant to this Section 2.12
agrees to use reasonable efforts (consistent with its internal policy and legal
and regulatory restrictions), at the reasonable request of the Borrower, to
select or change the jurisdiction of its Applicable Lending Office if the
making of such a selection or change would avoid the need for, or reduce the
amount of, any such additional amounts that may thereafter accrue and would
not, in the reasonable judgment of such Lender, be otherwise economically
disadvantageous to such Lender.

(i)                                          No
additional amounts will be payable pursuant to this Section 2.12 with respect
to (i) any Home Jurisdiction Withholding Taxes that would not have been payable
had the Lender provided the relevant forms or other documents pursuant to
Section 2.12 (g); 

 17
 

 

or (ii) in the
case of an Assignment and Acceptance by a Lender to an Eligible Assignee, any
Home Jurisdiction Withholding Taxes that exceed the amount of such Taxes that
are imposed prior to such Assignment and Acceptance, unless such Assignment and
Acceptance resulted from the demand of the Borrower.

(j)                                          If
any Lender or Agent, as the case may be, obtains a refund of any Tax for which
payment has been made pursuant to this Section 2.12, which refund in the sole
good faith judgment of such Lender or Agent, as the case may be, (and without
any obligation to disclose its tax records) is allocable to such payment made
under this Section 2.12, the amount of such refund (together with any interest
received thereon and reduced by reasonable costs incurred in obtaining such
refund) promptly shall be paid to the applicable Loan Party (but only to the
extent of indemnity payments made, or additional amounts paid, by the Borrower
under this Section 2.12 with respect to the Taxes giving rise to such refund),
net of all reasonable and documented out-of-pocket expenses of the Agent or
such Lender, as the case may be, and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund);
provided, however, that the applicable Loan Party, upon the request of the
Agent or such Lender, accompanied by a written explanation setting forth in
reasonable detail the basis therefor, agrees to promptly repay the amount paid
over to the Loan Party to the Agent or such Lender in the event the Agent or
such Lender is required to repay such refund to such Governmental
Authority.  This paragraph shall not be
construed to require the Administrative Agent or any Lender to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to the Loan Party or any other Person.

2.13.                        Sharing
of Payments, Etc.  If any Lender
shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Advances owing to it (other than pursuant to Sections 2.9, 2.12
or 8.4(b)) 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 made by 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 (i) the amount of such Lender’s required repayment to (ii) 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, provided  further, that, so long as the obligations
under this Agreement and the Notes shall not have been accelerated, any excess
payment received by any Lender shall be shared on a pro rata basis only with
other Lenders.  The Borrower agrees that
any Lender so purchasing a participation from another Lender pursuant to this
Section 2.13 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.

 18
 

 

2.14.                        Evidence
of Debt.  (a)  Lender Records; Notes.  Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing
the indebtedness of the Borrower to such Lender resulting from each Advance
owing to such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder in respect
of Advances.  The Borrower shall, upon
notice by any Lender to the Borrower (with a copy of such notice to the
Administrative Agent) to the effect that a Note is required or appropriate in
order for such Lender to evidence (whether for purposes of pledge, enforcement
or otherwise) the Advances owing to, or to be made by, such Lender, promptly
execute and deliver to such Lender a Note payable to the order of such Lender
in a principal amount up to the Commitment of such Lender.

(b)                                      Record
of Borrowings, Payables and Payments. 
The Register maintained by the Administrative Agent pursuant to Section
8.7(d) shall include a control account, and a subsidiary account for each
Lender, in which accounts (taken together) shall be recorded as follows:

(i)            the date and amount of each
Borrowing made hereunder, the Type of Advances comprising such Borrowing and
the Interest Period applicable thereto;

(ii)           the terms of each Assignment and
Acceptance 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.

(c)                                       Evidence
of Payment Obligations.  Entries made
in good faith by the Administrative Agent in the Register pursuant to Section
2.14(b), and by each Lender in its account or accounts pursuant to Section
2.14(a), 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,
in the case of the Register, each Lender and, in the case of such account or accounts,
such Lender, under this Agreement, absent manifest error; provided, however,
that the failure of the Administrative Agent or such Lender to make an entry,
or any finding that an entry is incorrect, in the Register or such account or
accounts shall not limit or otherwise affect the obligations of the Borrower
under this Agreement.

2.15.                        Use of
Proceeds.  The proceeds of the
Advances shall be available (and the Borrower agrees that it shall use such proceeds) solely to purchase the stock of United Biscuits
Iberia S.L., including purchase price adjustments, any repayment of
intercompany debt in connection with such purchase and for a deemed Advance
hereunder on the Extension Date, provided that prior to the Extension the
Borrower shall maintain the proceeds of the Advances on deposit in the bank
account pledged to the Secured Parties under the Bank Account Charge.

 19
 

 

2.16.                        Redenomination
of Advances.  On the Extension Date,
(i)  the accrued and unpaid interest on
the Advances owing to each Lender on such date shall
be converted into a LIBOR Advance owing to such Lender, as if an additional
Borrowing were made by the Lenders to the Borrower on such date in an aggregate
principal amount equal to the amount of such accrued interest, and (ii)
immediately thereafter, each LIBOR Advance shall be redenominated into a
EURIBOR Advance at an exchange rate equal to the Equivalent in Euro of such
LIBOR Advance on such date (and the Borrower shall make any prepayment required
by Section 2.8(a)); provided that if the conditions to the Extension are
fulfilled subsequent to 10:00A.M. (Brussels time) on the Extension Date, the
conversion of interest and redenomination described in clauses (i) and (ii) of
this Section 2.16 will occur on the Business Day immediately subsequent to the
Extension Date (such date on which such redenomination occurs, the “Redenomination
Date”); and provided  further that any Advances made on the
Extension Date other than the deemed Advances referred to in clause (i) above
and Advances made as EURIBOR Advances shall be redenominated into EURIBOR
Advances on the Business Day immediately subsequent to the Extension Date at
the rate at which the Administrative Agent offers to exchange Sterling for Euro
for next day settlement at its principal office in London as of 11:00 A.M.
(London Time) on the Extension Date.

3.             CONDITIONS TO EFFECTIVENESS AND LENDING

3.1.                              Conditions
Precedent to Effectiveness.  The
obligation of the Lenders to make Advances under this Agreement shall become effective on and as of the first date (the “Effective
Date”) prior to September 15, 2006 on which the following conditions
precedent have been satisfied:

(a)                                       The
Borrower shall have notified the Administrative Agent in writing as to the
proposed Effective Date.

(b)                                      On
the Effective Date, the following statements shall be true and the
Administrative Agent shall have received for the account of each Lender a
certificate signed by a duly authorized signatory of the Borrower, dated the
Effective Date, stating that:

(i)            the representations and warranties
contained in Section 4.1 are correct on and as of the Effective Date, and

(ii)           no event has occurred and is
continuing that constitutes a Default or Event of Default.

(c)                                       The
Administrative Agent shall have received on or before the Effective Date the
following, each dated on or prior to such day (except as otherwise noted
below), in form and substance satisfactory to the Administrative Agent:

(i)            A bank account charge in
substantially the form of Exhibit C hereto (the “Bank Account
Charge”), duly executed by the Borrower, together with:

 20
 

 

(A)                              Evidence
that the Charged Account has been opened with the Account Bank;

(B)                                A
Notice of Charged Account to the Account Bank, duly executed by the Borrower as
chargor;

(C)                                An
Acknowledgement of Charged Account to the Collateral Agent; duly executed by
the Account Bank.

(ii)           Evidence that the lenders under that
certain credit agreement dated as of 14 December, 1999, as amended and restated
pursuant to a seventh supplemental agreement dated 23 September, 2004 between,
amongst others, Regentrealm Limited, as borrower, Deutsche Bank AG London, as
lender, arranger, agent, security agent, sole book runner and documentation
agent, and other lenders party thereto, have consented to the consummation of
the transactions contemplated by the Loan Documents.

(iii)          Certified copies of:

(A)                              constitutional
deed and up-dated by-laws of the Borrower; and

(B)                                public
deed amending certain Articles of the by-laws of the Borrower in order to,
among other things, change its managing structure from a sole administrator to
3 joint and several administrators, authorized by the Notary of Barcelona Mr.
Miquel Tarragona Coromina on 14 July 2006 under number 3688 of his official
record, registered with the Mercantile Registry of Barcelona on 4 August 2006,
where it is expressly stated that the joint and several administrators have
accepted their appointment and Mr. Joan Casaponsa Sitjas, Mr. Anthony Jenkins
and Ms. Montserrat Serra Puntí are appointed as joint and several administrators.

(iv)          A certificate of a duly authorized
signatory of the Borrower, attesting as to the solvency of the Borrower.

(v)           Favorable opinions of counsel
relating to the Borrower substantially in the form of Exhibits E-1, E-2 and E-3
hereto.

(vi)          A favorable opinion of Shearman &
Sterling LLP, counsel for the Administrative Agent, substantially in the form
of Exhibit F hereto.

(vii)         A letter duly executed by the Process
Agent accepting its appointment as agent for the service of process, in form
and substance satisfactory to the Lenders.

(d)                                      The
Borrower shall have paid all accrued fees and reasonable expenses of the
Administrative Agent and the Lenders with respect to this Agreement for which
the 

 21
 

 

Administrative
Agent shall have made reasonable demand in accordance with Section 8.4(a) on or
prior to the Effective Date, unless payment of such amounts has otherwise been
arranged to the satisfaction of the Administrative Agent.

(e)                                       This
Agreement shall have been executed by the Borrower, the Administrative Agent
and each Initial Lender.

The Administrative Agent shall notify the Borrower,
the Guarantor and the Initial Lenders of the date which is the Effective Date
upon satisfaction of all of the conditions precedent set forth in this Section
3.1.

3.2.                              Conditions
Precedent to Each Borrowing.  The
obligation of each Lender to make an Advance on the occasion of each Borrowing is subject to the conditions precedent
that

(a)                                       the
Effective Date shall have occurred;

(b)                                      
on the date of such Borrowing the following statements shall be true, and the
acceptance by the Borrower of the proceeds of such Borrowing shall be a
representation by the Borrower, as the case may be, that:

(i)            the representations and warranties
contained in Section 4.1 and in the other Loan Documents are correct on and as
of the date of such Borrowing, before and after giving effect to such Borrowing
and to the application of the proceeds therefrom, as though made on and as of
such date; and

(ii)           after giving effect to the
application of the proceeds of all Borrowings on such date (together with any
other resources of the Borrower applied together therewith) no event has
occurred and is continuing, or would result from such Borrowing, that
constitutes a Default or Event of Default; and

(c)                                       with
respect to the initial Borrowing only, the Borrower shall have delivered to the
Administrative Agent a copy of the Operating Financial Number (Numero de Operación Financiera) from the Bank of Spain.

3.3.                              Conditions
Precedent to the Extension.  The
Extension shall occur on and as of the first date (the “Extension Date”)
prior to the Termination Date on which the following
conditions precedent have been satisfied:

(a)                                       The
Borrower and the Guarantor shall have notified each Lender and the
Administrative Agent in writing as to the proposed Extension Date.

(b)                                      The
Administrative Agent shall have received on or before such date the following,
each dated on or prior to such day (except as otherwise noted below), in form
and substance satisfactory to the Administrative Agent and each Initial Lender:

(i)            A guaranty or other form of credit
enhancement in each case on terms satisfactory to the Initial Lenders (in their
sole discretion) (the “Guaranty”), duly 

 22
 

 

executed by a
Guarantor that is satisfactory to the Initial Lenders (in their sole
discretion), in favor of the Administrative Agent on behalf of the Secured
Parties.

(ii)           A certificate of the Secretary or an
Assistant Secretary of the Guarantor certifying that the Board of Directors of
the Guarantor has authorized the Guaranty, and the names and true signatures of
the officers of the Guarantor authorized to sign the Guaranty and the other
documents to be delivered hereunder.

(iii)          Favorable opinions of internal
Virginia and external New York counsel to the Guarantor in form and substance
satisfactory to the Administrative Agent acting reasonably.

(c)                                       The
Guarantor shall have paid all accrued fees and reasonable expenses of the
Administrative Agent and the Lenders with respect to the Guaranty for which the
Administrative Agent shall have made reasonable demand to the extent then due
and payable pursuant to any agreement between the Guarantor, the Administrative
Agent and/or the Initial Lenders or their affiliates relating to the Guaranty
on or prior to the Extension Date.

The Administrative Agent shall promptly notify the
Borrower, the Guarantor, the Lenders and the Collateral Agent of the date which
is the Extension Date upon satisfaction of all of the conditions precedent set
forth in this Section 3.3.  For purposes
of determining compliance with the conditions specified in this Section 3.3,
each Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to the Lenders unless
an officer of the Administrative Agent responsible for the transactions
contemplated by this Agreement shall have received notice from such Lender
prior to the date that the Borrower, by notice to the Lenders, designates as
the proposed Extension Date, specifying its objection thereto.

4.             REPRESENTATIONS AND WARRANTIES

4.1.                              Representations
and Warranties of the Borrower.  The
Borrower represents and warrants as follows:

(a)                                       It
is duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization.

(b)                                      The
execution, delivery and performance of the Loan Documents to which it is or is
to be a party are within its corporate powers, have been duly authorized by all
necessary corporate action, and do not contravene (i) its charter, by-laws or
similar constitutional instruments or (ii) in any material respect, any law,
rule, regulation or order of any court or governmental agency or any
contractual restriction binding on or affecting it.

(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 

 23
 

 

and
performance by it of the Loan Documents to which it is or is to be a party, other
than those referred to in the Collateral Document which have been obtained or
made, and other than the Operating Financial Number (Numero de
Operación Financiera) to be obtained from the Bank of Spain.

(d)                                      This
Agreement and the Bank Account Charge is, and each of the Notes to be delivered
by it when delivered hereunder will be, the legal, valid and binding obligation
of the Borrower enforceable against the Borrower in accordance with its terms,
subject to the effect of any applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other laws affecting creditors’
rights generally and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity
or at law) and an implied covenant of good faith and fair dealing.

(e)                                       There
is no pending or threatened action or proceeding affecting it or any of its
Subsidiaries before any court, governmental agency or arbitrator (a “Proceeding”)
that affects or purports to affect the legality, validity or enforceability of
the Loan Documents.

(f)                                         None
of the proceeds of any Advance will be used, directly or indirectly, for the
purpose of purchasing or carrying any Margin Stock or for the purpose of
reducing or retiring any indebtedness which was originally incurred to purchase
or carry any Margin Stock or for any other purpose that would constitute the
Advances as a “purpose credit” within the meaning of Regulation U and, in each
case, would constitute a violation of Regulation U.

(g)                                      At
all times prior to the Extension Date, all filings and other actions necessary
or desirable to perfect and protect the security interest in the Collateral
created under the Collateral Documents have been duly made or taken and are in
full force and effect, and the Collateral Documents create in favor of the
Collateral Agent for the benefit of the Secured Parties a valid and, together
with such filings and other actions, perfected first priority security interest
in the Collateral, securing the payment of the Secured Obligations, and all
filings and other actions necessary or desirable to perfect and protect such
security interest have been duly taken. 
At all times prior to the Extension Date, the Borrower is the legal and
beneficial owner of the Collateral free and clear of any Lien, except for the
liens and security interests created under the Loan Documents.

(h)                                      The
Borrower is a wholly-owned direct or indirect Subsidiary of, prior to the
Extension Date, United Biscuits Investments B.V., on the Extension Date,
Deluxestar Limited, and, on and subsequent to the Extension Date, the
Guarantor.

(i)                                          The
Loan Documents are in proper legal form under the law of the Kingdom of Spain
for the enforcement thereof against the Loan Parties under the law of the
Kingdom of Spain; and to ensure the legality, validity, enforceability or
admissibility in evidence of the Loan Documents in the Kingdom of Spain it is
not necessary that any Loan Document or any other document be registered, filed
or recorded with any court or other authority in the Kingdom of Spain or that
any stamp or similar tax be paid on or in respect of any Loan Document, other
than a sworn translation of the Loan Documents.

 24
 

 

(j)                                          The
Spanish courts would recognize the choice of New York law or English law (as
the case may be) as the governing law of the Loan Documents in accordance with,
and subject to the limitations set forth in, the Rome Convention dated June 19,
1980 on the law applicable to contractual obligations.  When applying New York law or English law (as
the case may be) as the law governing the Loan Documents, the courts of Spain,
by virtue of the Rome Convention:  (i)
may give effect to the mandatory rules of law of another country with which the
situation has a close connection, if and insofar as, under the law of such
country, those rules must be applied whatever the law applicable to the Loan
Documents; (ii) will apply the law of Spain in a situation where it is
mandatory irrespective of the law otherwise applicable to the Loan Documents;
(iii) may refuse to apply New York or English law (as the case may be) in
relation to the Loan Documents if such application violates the public policy (orden publico) of Spain, or if submission to New York Law or
English law (as the case may be) is deemed to have been made with the aim of
avoiding the application of mandatory Spanish laws or legal requirements; and
(iv) shall have regard to the law of the country in which performance takes
place in relation to the manner of performance and the steps to be taken in the
event of defective performance.

(k)                                       The
submission to the jurisdiction of the New York courts will be valid and binding
on the Borrower pursuant to the Spanish Supreme Court bilateral interpretation
of article 22. 2 of the Spanish Organic Law 6/1985, dated 1 July, of Judiciary
Power (Ley Organica 6/1985, de 1 de julio, del poder judicial) (hereinafter, the “Organic Law of
Judiciary Power”) provided that:  (i)
where rendering the judgment no exclusive jurisdiction of Spanish courts or the
courts of a Member State of Council Regulation (EC) No 44/2001 of 22 December
2000 on Jurisdiction and the Recognition and Enforcement of Judgments on Civil
and Commercial Matters (as defined therein) or the courts of a State party to
the 1968 Rome Convention or 1988 Lugano Convention on jurisdiction and
recognition of judgments in civil and commercial matters was infringed; (ii)
the submission was freely agreed by the Borrower (for which purposes the
balance between the position of the parties is taken into account); and (iii)
there is a reasonable connection between the courts to which the Borrower
submits itself and the subject matter. Should any of the parties to this
Agreement bring proceedings before a court in Spain, a Spanish court may decide
that pursuant to Article 22.3 of the Organic Law of Judiciary Power it is
competent to hear proceedings even though the other party or parties do not
appear before it, or appears and contests its jurisdiction based on this
Agreement being submitted to the jurisdiction of the courts of the State of New
York, United States of America.

(l)                                          Under
Spanish procedural law, process must be served personally on each
defendant.  The Spanish Supreme Court,
taking into account the circumstances of the case, could understand that
service of process on an agent appointed by the Borrower has infringed Spanish
public policy or the rights of defense of the Borrower.  Should this be the case, the judgment
rendered in the United States of America would not be recognized in Spain.

 25

 

5.             COVENANTS OF THE BORROWER

5.1.                              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 in all
material respects, with all applicable laws, rules, regulations and orders
(such compliance to include, without limitation, complying with ERISA and
paying before the same become delinquent all taxes, assessments and
governmental charges imposed upon it or upon its property except to the extent
contested in good faith), noncompliance with which would materially adversely
affect the financial condition or operations of the Borrower.

(b)                                      Reporting
Requirements.  Furnish to the
Lenders:

(i)            as soon as possible and in any event
within five days after the occurrence of each Event of Default and each Default
continuing on the date of such statement, a statement of an authorized
signatory of the Borrower setting forth the details of such Event of Default or
Default and the action which the Borrower has taken and proposes to take with
respect thereto;

(ii)           such other information respecting the
condition or operations, financial or otherwise, of the Borrower as any Lender
through the Administrative Agent may from time to time reasonably request.

(c)                                       Further
Assurances.  Prior to the Extension
Date, promptly upon request by any Agent, or any Lender through the
Administrative Agent, do, execute, acknowledge, deliver, record, re-record,
file, re-file, register and re-register any and all such further acts, creating,
registering, perfecting, maintaining or protecting the Bank Account Charge or
any of the Charged Assets, facilitating the realization of any Charged Asset or
the exercise of any right, power or discretion vested in the Collateral Agent,
any Receiver or any Delegate (each as defined in the Bank Account Charge),
execution (including by sealing) of any transfer, assignment, mortgage, charge
or lien or any document required to enable the Collateral Agent or its nominee
to obtain legal title to any Charged Assets in circumstances in which it is
entitled to obtain legal title under the Bank Account Charge or the giving of
any notice, order or directive, notices of assignment, transfers, certificates,
assurances and other instruments as any Agent, or any Lender through the
Administrative Agent, may reasonably require from time to time in order to
(A) carry out more effectively the purposes of the Loan Documents,
(B) to the fullest extent permitted by applicable law, subject the
Collateral to the Liens now or hereafter intended to be covered by any of the
Collateral Documents, (C) perfect and maintain the validity, effectiveness
and priority of any of the Collateral Documents and any of the Liens intended
to be created thereunder and (D) assure, convey, grant, assign, transfer,
preserve, protect and confirm more effectively unto the Secured Parties the
rights granted or now or hereafter intended to be granted to the Secured
Parties under any Loan Document or under any other instrument executed in
connection with any Loan Document to which any Loan Party or any of its
Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do
so.

 26
 

 

5.2.                              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.  Prior to the Extension Date,
create or suffer to exist, any lien, security interest or other charge or
encumbrance (other than operating leases and licensed intellectual property),
or any other type of preferential arrangement (“Liens”), upon or with
respect to any of its properties, whether now owned or hereafter acquired, or
assign, any right to receive income, in each case to secure or provide for the
payment of any Debt of any Person, other than the Liens on the Collateral in
favor of the Secured Parties and Liens (other than Liens on the Collateral) to
secure obligations under the Existing Facility.

(b)                                      Mergers,
Etc.  (i) Prior to the Extension
Date, consolidate with or merge into, or convey or transfer its properties and
assets substantially as an entirety to, any Person; and (ii) subsequent to the
Extension Date, consolidate with or merge into, or convey or transfer its
properties and assets substantially as an entirety to, any Person, unless, in
the case of clause (ii) above, (x) immediately after giving effect thereto, no
Default or Event of Default would exist, and (y) the surviving corporation of
any merger or consolidation shall have assumed all of the Borrower’s
obligations under the Loan Documents (including without limitation  the covenants set forth in Article 5) by the
execution and delivery of an instrument in form and substance satisfactory to
the Required Lenders.

6.             EVENTS OF DEFAULT

6.1.                              Events
of Default.  Each of the following
events (each an “Event of Default”) shall constitute an Event of
Default:

(a)                                       The
Borrower shall fail to pay any principal of any Advance when the same becomes
due and payable; or the Borrower shall fail to pay interest on any Advance or
any other amount payable under the Loan Documents within ten days after the
same becomes due and payable; or

(b)                                      Any
representation or warranty made or deemed to have been made by the Borrower (or
any of its directors) in connection with any Loan Document shall prove to have
been incorrect in any material respect when made or deemed to have been made;
or

(c)                                       The
Borrower shall fail to perform or observe (i) any term, covenant or agreement
contained in Section 5.2(b), (ii) any term, covenant or agreement contained in
Section 5.2(a) if such failure shall remain unremedied for 15 days after
written notice thereof shall have been given to the Borrower by the
Administrative Agent or any Lender or (iii) any other term, covenant or
agreement contained in this Agreement or the other Loan Documents 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 any Lender; or

(d)                                      The
Borrower shall fail to pay any principal of or premium or interest on any Debt
which is outstanding in a principal amount of at least $100,000,000 in the
aggregate 

 27
 

 

(but excluding
Debt arising under this Agreement) of the Borrower, 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 unless adequate provision for any such payment has been made in form and
substance satisfactory to the Required Lenders; or any Debt of the Borrower
which is outstanding in a principal amount of at least $100,000,000 in the
aggregate (but excluding Debt arising under this Agreement) shall be declared
to be due and payable, or required to be prepaid (other than by a scheduled
required prepayment), redeemed, purchased or defeased, or an offer to prepay,
redeem, purchase or defease such Debt shall be required to be made, in each
case prior to the stated maturity thereof unless adequate provision for the
payment of such Debt has been made in form and substance satisfactory to the
Required Lenders; or

(e)                                       The
Borrower 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 seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver,
trustee, 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), either such proceeding shall remain undismissed or
unstayed for a period of 60 days or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief
against it or the appointment of a receiver, trustee, custodian or other
similar official for it or for any of its property constituting a substantial
part of the property of the Borrower and its Subsidiaries taken as a whole)
shall occur; or the Borrower shall take any corporate action to authorize any
of the actions set forth above in this subsection (e); or

(f)                                         Any
judgment or order for the payment of money in excess of $100,000,000 shall be
rendered against the Borrower and there shall be any period of 60 consecutive
days during which a stay of enforcement of such unsatisfied judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; provided
that such 60-day stay period shall be extended for a period not to exceed an
additional 120 days if (i) the Borrower is contesting such judgment or
enforcement of such judgment in good faith, unless, with respect only to
judgments or orders rendered outside the United States, such action is not
reasonably required to protect its respective assets from levy or garnishment,
and (ii) no assets with a fair market value in excess of $100,000,000 of the
Borrower have been levied upon or garnished to satisfy such judgment; provided,
further, that such 60-day stay period shall be further extended for any
judgment or order rendered outside the United States until such time as the
conditions in clause (i) or (ii) are no longer satisfied; or

 28
 

 

(g)                                      The
Borrower or any ERISA Affiliate shall incur, or shall be reasonably likely to
incur, liability in excess of $500,000,000 in the aggregate as a result of one
or more of the following:  (i) the
occurrence of any ERISA Event; (ii) the partial or complete withdrawal of the
Borrower or any ERISA Affiliate from a Multiemployer Plan; or (iii) the
reorganization or termination of a Multiemployer Plan; provided, however,
that no Default or Event of Default under this Section 6.1(g) shall be deemed
to have occurred if the Borrower or any ERISA Affiliate shall have made
arrangements satisfactory to the PBGC or the Required Lenders to discharge or
otherwise satisfy such liability (including the posting of a bond or other
security); or

(h)                                      At
any time prior to the Extension Date, (i) the Bank Account Charge shall for any
reason cease to be valid and binding on the Borrower or the Borrower shall so
state in writing, or (ii) the Collateral Documents after delivery thereof
pursuant to Section 3.1 or 5.1(c) shall for any reason (other than
pursuant to the terms thereof) cease to create a valid and perfected first
priority lien on and security interest in the Collateral purported to be
covered thereby in favor of the Secured Parties, or the amount of the
Collateral shall fail to equal at least 100% of the principal amount of
Advances (excluding any deemed Advance made pursuant to Section 2.16)
outstanding; or

(i)                                          At
any time on or after the Extension Date, the Guaranty shall for any reason
cease to be valid and binding on the Guarantor or the Guarantor shall so state
in writing, or an “Event of Default” as defined in the Guaranty shall have
occurred and be continuing.

6.2.                              Lenders’
Rights upon Event of Default.  If an
Event of Default occurs or is continuing, then the Administrative Agent shall at the request, or may with the consent, of
the Required Lenders, by notice to the Borrower:

(a)                                       declare
the obligation of each Lender to make further Advances to be terminated,
whereupon the same shall forthwith terminate, and

(b)                                      declare
all the Advances then outstanding, all interest thereon and all other amounts
payable under this Agreement to be forthwith due and payable, whereupon the
Advances then outstanding, 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, that in the event of an actual or deemed entry of an order for
relief with respect to the Borrower under the Federal Bankruptcy Code, (i) the
obligation of each Lender to make Advances shall automatically be terminated
and (ii) the Advances then outstanding, 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.

 29
 

 

7.             THE ADMINISTRATIVE AGENT

7.1.                              Authorization
and Action.  (a)  Each Lender hereby 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 are delegated to the Administrative Agent by the terms hereof and of the
other Loan Documents, together with such powers and discretion as are reasonably
incidental thereto.  As to any matters
not expressly provided for by the Loan Documents (including, without
limitation, enforcement or collection of the Notes), the Administrative Agent
shall not be required to exercise any discretion or take any action, but shall
be required to act or to refrain from acting (and shall be fully protected in
so acting or refraining from acting) upon the instructions of the Required
Lenders, and such instructions shall be binding upon all Lenders and all
holders of Notes; provided, however, that the Administrative
Agent shall not be required to take any action that exposes it to personal
liability or that is contrary to this Agreement or applicable law.  The Administrative Agent agrees to give to
each Lender prompt notice of each notice given to it by the Borrower as
required by the terms of the Loan Documents or at the request of the Borrower,
and any notice provided pursuant to Section 5.1(b)(i).

7.2.                              Administrative
Agent’s Reliance, Etc.  Neither the
Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with the Loan
Documents, except for its or their own gross negligence or willful
misconduct.  Without limitation of the
generality of the foregoing, the Administrative Agent:

(a)                                       may
treat the Lender that made any Advance as the holder of the Debt resulting
therefrom until the Administrative Agent receives and accepts an Assignment and
Acceptance entered into by such Lender, as assignor, and an Eligible Assignee,
as assignee, as provided in Section 8.7;

(b)                                      may
consult with legal counsel (including counsel for the Borrower), independent
public accountants and other experts selected by it and shall not be liable for
any action taken or omitted to be taken in good faith by it in accordance
with  the advice of such counsel,
accountants or experts;

(c)                                       makes
no warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with the Loan Documents;

(d)                                      shall
not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of the Loan Documents
on the part of the Borrower or to inspect the property (including the books and
records) of the Borrower;

(e)                                       shall
not be responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any
other instrument or document furnished pursuant hereto; and

 30
 

 

(f)                                         shall
incur no liability under or in respect of the Loan Documents by acting upon any
notice, consent, certificate or other instrument or writing (which may be by facsimile)
believed by it to be genuine and signed or sent by the proper party or parties.

7.3.                              Citibank
and Affiliates.  With respect to its
Commitment and the Advances made by it, Citibank shall have the same rights and powers under this Agreement as any other
Lender and may exercise the same as though it were not an Agent; and the term “Lender”
or “Lenders” shall, unless otherwise expressly indicated, include Citibank in
its individual capacity.  Citibank and
its affiliates may accept deposits from, lend money to, act as trustee under
indentures of, accept investment banking engagements from and generally engage
in any kind of business with, any Loan Party, any of its Subsidiaries and any
Person who may do business with or own securities of any Loan Party or any such
Subsidiary, all as if Citibank was not an Agent and without any duty to account
therefor to the Lenders.

7.4.                              Lender
Credit Decision.  Each Lender
acknowledges that it has, independently and without reliance upon any Agent or any Joint Lead Arranger and Bookrunner, or any other
Lender, 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 any Agent, any Joint Lead Arranger and
Bookrunner, 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.

7.5.                              Indemnification.  The Lenders agree to indemnify the
Administrative Agent (to the extent not reimbursed by the Borrower),
from and against such Lender’s ratable share (determined as provided below) of
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or 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 any Loan Document
or any action taken or omitted by the Administrative Agent under any Loan
Document (collectively, the “Indemnified Costs”), provided that
no Lender shall be liable for any portion of the Indemnified Costs 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 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 reimbursed for such expenses by the
Borrower.  In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs,
this Section 7.5 applies whether any such investigation, litigation or
proceeding is brought by the Administrative Agent, any Lender or a third
party.  For purposes of this
Section 7.5, the Lenders’ respective ratable shares of any amount shall be
determined, at any time, according to their respective aggregate Commitments.

 31
 

 

7.6.                              Successor
Agents.  The Administrative Agent may
resign at any time by giving written notice thereof to the Lenders and the Borrower and may be removed at any time with or
without cause by the Required Lenders. 
Upon any such resignation or removal, the Required Lenders shall have
the right to appoint a successor Administrative Agent.  If no successor Administrative Agent shall
have been so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent’s giving of
notice of resignation or the Required Lenders’ removal of the retiring
Administrative Agent, then the retiring Administrative Agent may, on behalf of
the Lenders, appoint a successor Administrative Agent, which shall be a
commercial bank organized under the laws of the United States of America or of
any State thereof, or under the laws of England, and having a combined capital
and surplus of at least $500,000,000.  Upon
the acceptance of any appointment as Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, discretion,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under
this Agreement.  After any retiring
Administrative Agent’s resignation or removal hereunder as Administrative
Agent, the provisions of this Article 7 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was the Administrative
Agent under this Agreement.

7.7.                              Joint
Lead Arrangers and Bookrunners. 
Certain entities have been designated as Joint Lead Arrangers and Bookrunners, under this Agreement, but the use of such
titles does not impose on any of them any duties or obligations greater than
those of any other Lender.

8.             MISCELLANEOUS

8.1.                              Amendments,
Etc.  No amendment or waiver of any
provision of any Loan Document, nor consent to any departure by any Loan Party therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Required
Lenders, or by the Administrative Agent acting with the consent of the Required
Lenders, 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
and signed by all the Lenders affected thereby, do any of the following:  (a) waive any of the conditions specified in
Sections 3.1, 3.2 and 3.3, (b) increase the Commitments of the Lenders or
subject the Lenders to any additional obligations, (c) reduce the principal of,
or interest on, the Advances or any fees or other amounts payable hereunder,
(d) extend the Termination Date or postpone any date fixed for any payment of
principal of, or interest on, the Advances or any fees or other amounts payable
hereunder, (e) change the percentage of the Commitments, or the number of
Lenders, that shall be required for the Lenders or any of them to take any
action hereunder, (f) release the Guarantor from any of its obligations under
the Guaranty, (g) release any portion of the Collateral or change the amount of
the Collateral required to be pledged in favor of the Secured Parties
hereunder, or (h) amend this Section 8.1; and provided  further
that no amendment, waiver or consent shall affect the rights or duties of the
Administrative 

 32
 

 

Agent under any Loan
Document or any Advance unless in writing and signed by the Administrative
Agent in addition to the Lenders required above to take such action.

8.2.                              Notices,
Etc.  (a) Addresses.  All notices and other communications provided
for hereunder shall be in writing (including
facsimile communication) and mailed, telecopied, or delivered, as follows:

if to the Borrower :

Sheffield Investments S.L.

Calle El Raiguer 12

Pol. Ind. El Raiguer

08170 Montornes del Valles

Barcelona, Spain

Attention:  Dept. Legal

Fax number:  +34 93 571 9143;

if to the Guarantor, as specified in the Guaranty;

if to any Initial Lender, at its Applicable Lending
Office specified opposite its name on Schedule 1 hereto;

if to any other Lender, at its Applicable Lending
Office specified in the Assignment and Acceptance pursuant to which it became a
Lender;

if to Citibank, as
Administrative Agent:

Citibank
International PLC

5th Floor, Citigroup Centre,

Canary Wharf

London E14 5LB

Attention: Loans Agency

Fax no: 44 20 8636 3824/5; 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.

(b)                                      Effectiveness
of Notices.  All such notices and
communications shall, when mailed or telecopied, be effective when deposited in
the mail or telecopied, respectively, except that notices and communications to
the Administrative Agent pursuant to Article 2, 3 or 7 shall not be effective
until received by the Administrative Agent. 
Delivery by facsimile 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.

 33
 

 

8.3.                              No
Waiver; Remedies.  No failure on the
part of any Lender or any Agent to exercise, and no delay in exercising, any right under any Loan Document 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 law.

8.4.                              Costs
and Expenses.  (a)  Agent; Enforcement.  The Borrower agrees to pay on demand all
reasonable costs and expenses in connection with the
preparation, execution, delivery, administration (excluding any cost or
expenses for administration related to the overhead of each Agent),
modification and amendment of the Loan Documents and the documents to be
delivered thereunder, including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent with respect
thereto and with respect to advising the Administrative Agent as to its rights
and responsibilities under the Loan Documents, and all costs and expenses of
the Lenders and the Administrative Agent, if any (including, without
limitation, reasonable counsel fees and expenses of the Lenders and the
Administrative Agent), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of the Loan Documents and the
other documents to be delivered thereunder.

(b)                                      Prepayment
of Advances.  If any payment of
principal of Advance is made other than on the last day of the Interest Period
for such Advance or at its maturity, as a result of a payment pursuant to
Section 2.8, acceleration of the maturity of the Advances pursuant to Section
6.2 or for any other reason, or if an assignment of an Advance is made other
than on the last day of the Interest Period for such Advance as a result of a
demand by the Borrower pursuant to Section 8.7(a), the Borrower shall, upon
demand by any Lender (with a copy of such demand to the Administrative Agent),
pay to the Administrative Agent, as applicable, for the account of such Lender
any amounts required to compensate such Lender for any additional losses, costs
or expenses which it may reasonably incur as a result of such payment,
including, without limitation, any 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.

(c)                                       Indemnification.  The Borrower agrees to indemnify and hold
harmless the Administrative Agent and each Lender and each of their respective
affiliates, control persons, directors, officers, employees, attorneys and
agents (each, an “Indemnified Party”) from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and disbursements of counsel) which may be incurred
by or asserted against any Indemnified Party, in each case in connection with
or arising out of, or in connection with the preparation for or defense of, any
investigation, litigation, or proceeding (i) related to any transaction or
proposed transaction (whether or not consummated) in which any proceeds of any
Borrowing are applied or proposed to be applied, directly or indirectly, by the
Borrower, whether or not such Indemnified Party is a party to such transaction
or (ii) related to the Borrower’s entering into this Agreement, or to any
actions or omissions of the Borrower, or any of its officers, directors,
employees or agents in connection therewith, in each case whether or 

 34
 

 

not an
Indemnified Party is a party thereto and whether or not such investigation,
litigation or proceeding is brought by the Borrower or any other Person; provided,
however, that the Borrower shall not be required to indemnify any such
Indemnified Party from or against any portion of such claims, damages, losses,
liabilities or expenses that is found in a final, non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of such Indemnified Party.

(d)                                      Survival.  Without prejudice to the survival of any
other agreement of the Borrower hereunder, the agreements and obligations of
the Borrower contained in Section 2.2(c), 2.9, 2.12 and Section 8.4(b) shall
survive the payment in full of principal and interest hereunder.

8.5.                              Right
of Set-Off.  Upon (i) the occurrence
and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by
Section 6.2 to authorize the Administrative Agent to declare the Advances due
and payable pursuant to the provisions of Section 6.2, each Lender is hereby
authorized at any time and from time to time, to the fullest extent permitted
by 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 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 the Loan Documents, whether or not such Lender shall have made
any demand under the Loan Documents and although such obligations may be
unmatured.  Each Lender shall promptly notify
the Borrower after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of each Lender
and its affiliates under this Section 8.5 are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Lender and its affiliates may have.

8.6.                              Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the Borrower, the Agents, and each Lender and their respective successors and assigns,
except that the Borrower shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the
Lenders.

8.7.                              Assignments
and Participations.  (a)  Assignment of Lender Obligations.  After the Extension Date or during the continuance of an Event of Default, each Lender may, and
if demanded by the Borrower upon at least five Business Days notice to such
Lender and the Administrative Agent will, assign to one or more Persons all or
a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitments and the Advances owing
to it), subject to the following:

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

(ii)           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 Acceptance with respect to such assignment)
shall in no event be less than 

 35
 

 

€10,000,000
(subject to reduction at the sole discretion of the Borrower) and shall be an
integral multiple of €1,000,000;

(iii)          each such assignment shall be to an
Eligible Assignee;

(iv)          each such assignment made as a result
of a demand by the Borrower pursuant to this Section 8.7(a) shall be arranged
by the Borrower after consultation with the Administrative Agent and 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 which together cover all of the rights and obligations of the
assigning Lender under this Agreement;

(v)           no Lender shall be obligated to make
any such assignment as a result of a demand by the Borrower pursuant to this
Section 8.7(a) unless and until such Lender shall have received payment of an
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 all other amounts payable to such
Lender under this Agreement (including without limitation amounts payable under
Section 8.4(b)); and

(vi)          the parties to each such assignment
shall execute and the assigning Lender shall, not less than five Business Days
prior to the effectiveness of any Assignment and Acceptance, deliver to the
Administrative Agent which shall give prompt notice thereof to the Borrower by
facsimile or other electronic communication, for the Administrative Agent’s
acceptance and recording in the Register, an Assignment and Acceptance,
together with a processing and recordation fee of €1,500, provided that,
if such assignment is made as a result of a demand by the Borrower under this
Section 8.7(a), the Borrower shall pay or cause to be paid such €1,500 fee.

Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and
Acceptance, (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 Acceptance, have the rights and obligations of a Lender
hereunder and (y) the assigning Lender thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (other than those provided
under Section 8.4) and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance 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), other than Section 8.12.

(b)                                      Assignment
and Acceptance.  By executing and
delivering an Assignment and Acceptance, the assigning Lender 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 Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or 

 36
 

 

representations
made in or in connection with any Loan Document or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to
be created under or in connection with, any Loan Document 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 any Loan Party or the performance or observance by
any Loan Party of any of its obligations under any Loan Document or any other
instrument or document furnished pursuant hereto; (iii) such assignee confirms
that it has received a copy of the Loan Documents, together with such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon the Administrative
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
represents that (A) the source of any funds it is using to acquire the
assigning Lender’s interest or to make any Advance is not and will not be plan
assets as defined under the regulations of the Department of Labor of any Plan
subject to Title I of ERISA or Section 4975 of the Code or (B) the assignment
or Advance is not and will not be a non-exempt prohibited transaction as
defined in Section 406 of ERISA; (vii) 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 are delegated to
the Administrative Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (viii) 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)                                       Administrative
Agent’s Acceptance. Upon its receipt of an Assignment and Acceptance executed
by an assigning Lender and an assignee representing that it is an Eligible
Assignee, together with any Note or Notes subject to such assignment, the
Administrative Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit B hereto, (i) accept such
Assignment and Acceptance, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrower.

(d)                                      Register.  The Administrative Agent shall maintain at
its address referred to in Section 8.2 a copy of each Assignment and Acceptance
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 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 may 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.

 

 37

 

(e)                                       Sale
of Participation.  Each Lender may
sell participations to one or more Eligible Assignees in or to all or a portion
of its rights and obligations under the Loan Documents (including, without
limitation, all or a portion of its Commitment, the Advances owing to it and
any Note or Notes held by it), subject to the following:

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

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

(iii)          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 the Loan Documents,
and

(iv)          no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of the Loan Documents, or any consent to any departure by the
Borrower therefrom, except to the extent that such amendment, waiver or consent
would reduce the principal of, or interest on, the Advances or any fees or
other amounts payable hereunder, 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 other amounts payable hereunder, in
each case to the extent subject to such participation.

(f)                                         Disclosure
of Information.  Any Lender may, in
connection with any assignment or participation or proposed assignment or
participation pursuant to this Section 8.7, disclose to the assignee or
participant or proposed assignee or participant, any information relating to
any Loan Party furnished to such Lender by or on behalf such Loan Party; provided
that, prior to any such disclosure, the assignee or participant or proposed
assignee or participant shall agree to preserve the confidentiality of any
confidential information relating to the Loan Parties received by it from such
Lender by signing a confidentiality agreement substantially in the form
attached hereto as Exhibit G.

(g)                                      Regulation
A Security Interest.  Notwithstanding
any other provision set forth in any Loan Document, any Lender may at any time
create a security interest in all or any portion of its rights under the Loan
Documents (including, without limitation, the Advances owing to it and any Note
or Notes held by it) in favor of any Federal Reserve Bank in accordance with
Regulation A.

8.8.                              Release/Application
of Collateral.  (a)  Upon
the effectiveness of the Guaranty and occurrence of the Extension in accordance with the terms of the Loan Documents, the
Administrative Agent shall promptly instruct the Collateral Agent to release
the Liens on the Collateral created under the Collateral Documents.

(b)                                      If
the Advances become due and payable prior to the release of Liens on the
Collateral described above, the Administrative Agent shall instruct the
Collateral Agent to cause the funds on deposit in the Charged Account to be
transferred to the 

 38
 

 

Administrative
Agent’s Account for the payment of interest and repayment of the Advances.

8.9.                              Governing
Law.  This Agreement and the Notes
shall be governed by, and construed in accordance with, the laws of the State of New York.

8.10.                        Execution
in Counterparts.  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 facsimile or other electronic communication shall be effective as
delivery of a manually executed counterpart of this Agreement.

8.11.                        Jurisdiction,
Etc.  (a)  Submission to Jurisdiction; Service of
Process.  Each of the parties hereto
hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York state
court or Federal court of the United States of America sitting in New York
City, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to the Loan Documents, 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 may be heard and determined in any such New York state court or, to
the extent permitted by law, in such Federal court.  The Borrower hereby agrees that service of
process in any such action or proceeding brought in any such New York state
court or in such Federal court may be made upon CT Corporation System (the “Process
Agent”), with an office on the date hereof at 111 Eighth Avenue, 13th
Floor, New York, New York 10011, United States (or such other address in the
United States as notified to the Administrative Agent by the Process Agent from
time to time, and the Borrower hereby irrevocably appoints the Process Agent
its authorized agent to accept such service of process, and agrees that the
failure of the Process Agent to give any notice of any such service shall not
impair or affect the validity of such service or of any judgment rendered in
any action or proceeding based thereon. The Borrower hereby further irrevocably
consents to the service of process in any action or proceeding in such courts
by the mailing thereof by any parties hereto by registered or certified mail,
postage prepaid, to the Borrower at its address specified pursuant to Section
8.2.  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.  Nothing in this
Agreement shall affect any right that any party may otherwise have to serve
legal process in any other manner permitted by law or to bring any action or
proceeding relating to the Loan Documents or the Notes in the courts of any
jurisdiction.

(b)                                      Waivers.  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 the Loan Documents
in any New York state or Federal court. 
Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the 

 39
 

 

defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

8.12.                        Confidentiality.  Neither the Administrative Agent nor any
Lender shall disclose any confidential information relating
to any Loan Party to any other Person without the consent of such Loan Party,
other than (a) to the Administrative Agent’s or such Lender’s affiliates and
their officers, directors, employees, agents and advisors, and then, in each
such case, only on a confidential basis, (b) to actual or prospective assignees
and participants in accordance with Section 8.7(f), (c) as required by any law,
rule or regulation or judicial process, and (d) as requested or required by any
state, federal or foreign authority or examiner regulating banks or banking or
other financial institutions. 
Notwithstanding any other provision in this Agreement, the Administrative
Agent and the Lenders hereby confirm that the Borrower (and any employee,
officer, representative or agent thereof) shall not be limited from disclosing
the U.S. tax treatment or U.S. tax structure of the transactions contemplated
under the Loan Documents.

8.13.                        Integration.  The Loan Documents represent the agreement of
the Loan Parties, the Agents and the Lenders with respect
to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Loan Party or
Lender relative to the subject matter hereof not expressly set forth or
referred to in the Loan Documents other than the matters referred to in any fee
letter, between the Guarantor and the Initial Lenders, and Section 8.4(a) and
except for Confidentiality Agreements entered into by each Lender in connection
with this Agreement.

8.14.                        USA
Patriot Act Notice, Etc.  The
Administrative Agent and each Lender hereby notifies the Borrower that pursuant
to the requirements of the USA Patriot Act (Title
III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”),
it is required to obtain, verify and record information that identifies the
Loan Parties, which information includes the name and address of each Loan
Party and other information that will allow such Lender to identify the Loan
Parties in accordance with the Patriot Act or any similar “know your customer”
or other similar checks under all applicable laws and regulations.

8.15.                        Judgment.  (a)  If
for the purposes of obtaining judgment in any court it is necessary to convert
a sum due hereunder in Sterling into Euro, or to
convert a sum due hereunder in Euro into Sterling, the parties hereto agree, to
the fullest extent that they may effectively do so, that the rate of exchange
used shall be the Equivalent thereof on the Business Day succeeding that on
which final judgment is given.

(b)                                      The
obligation of the Borrower in respect of any sum due from it in Euro or
Sterling (each a “Primary Currency”) to any Lender or any Agent
hereunder shall, notwithstanding any judgment in any other currency, be
discharged only to the extent that on the Business Day following receipt by
such Lender or such Agent (as the case may be), of any sum adjudged to be so
due in such other currency, such Lender or such Agent (as the case may be) may
in accordance with normal banking procedures purchase the applicable Primary
Currency with such other currency; if the amount of the applicable Primary
Currency so purchased is less than such sum due to such Lender or such Agent 

 40
 

 

(as the case
may be) in the applicable Primary Currency, the Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify such Lender or
such Agent (as the case may be) against such loss, and if the amount of the
applicable Primary Currency so purchased exceeds such sum due to any Lender or
such Agent (as the case may be) in the applicable Primary Currency, such Lender
or such Agent (as the case may be) agrees to remit to the applicable Borrower
such excess.

 41

 

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.

	
  

  	
  SHEFFIELD INVESTMENTS S.L.,

  as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Montserrat Serra Punti

  
	
   

  	
  Name: Montserrat Serra Punti

  
	
   

  	
  Title: Individual Director

  
	
   

  	
  (“administradora
  solidaria”)

  

 

 

 

	
  

  	
  CITIBANK INTERNATIONAL PLC,

  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Gibbs

  
	
   

  	
  Name: Paul Gibbs

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  CITIBANK INTERNATIONAL PLC,

  as Initial Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Gibbs

  
	
   

  	
  Name: Paul Gibbs

  
	
   

  	
  Title: Vice President

  

 

 

 

	
  

  	
  UBS LIMITED

  as Initial Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Graham Vance

  
	
   

  	
  Name: Graham Vance

  
	
   

  	
  Title: Executive Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew Jolly

  
	
   

  	
  Name: Matthew Jolly

  
	
   

  	
  Title: Executive Director

  

 

 

SCHEDULE 1

List of Applicable Lending Offices

	
  Name of Initial Lender

  	
  Domestic
  Lending Office

  	
  Eurocurrency
  Lending Office

  
	
   

  	
   

  	
   

  
	
  Citibank International plc

  	
  UK Loans Processing Unit

  5th Floor

  33 Canada Square

  London E14 5LB

  United Kingdom

   

  	
  UK Loans Processing Unit

  5th Floor

  33 Canada Square

  London E14 5LB

  United Kingdom

   

  
	
   

  	
  Attn: Citibank Intl plc, Loans Processing
  Unit

  T: +44 (0)20 7508 6308/1838/6107

  F: +44 (0)20 7942 7512

  	
  Attn: Citibank Intl plc, Loans Processing
  Unit

  T: +44 (0)20 7508 6308/1838/6107

  F: +44 (0)20 7942 7512

  
	
   

  	
   

  	
   

  
	
  UBS Limited

  	
  Banking Products Services

  1 Finsbury Avenue

  London EC2M 2PP

  United Kingdom

  T: +44 20 7568 0445/0442/0502/5607

  F: +44 20 7568 3978 / 5664

   

  	
  Banking Products Services

  1 Finsbury Avenue

  London EC2M 2PP

  United Kingdom

  T: +44 20 7568 0445/0442/0502/5607

  F: +44 20 7568 3978 / 5664

   

  
	
   

  	
  With a copy to: Alan Greenhow/Tina Elliott

  	
  With a copy to: Alan Greenhow/Tina Elliott

  
	
   

  	
  Banking Products Services

  1 Finsbury Avenue,

  London EC2M 2PP

  United Kingdom

   

  	
  Banking Products Services

  1 Finsbury Avenue,

  London EC2M 2PP

  United Kingdom

   

  
	
   

  	
  T: +44 20 7568 7122

      
  +44 20 7568 1298

  F: +44 20 7568 4664

  	
  T: +44 20 7568 7122

      
  +44 20 7568 1298

  F: +44 20 7568 4664

  

 

 SCHEDULE 1

 

SCHEDULE 2

CALCULATION OF THE MANDATORY COST

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

2.                                 On the first day
of each Interest Period (or as soon as possible thereafter) the Administrative
Agent shall calculate, as a percentage rate, a rate (the “Additional
Cost Rate”) for each Lender, in accordance with the paragraphs set
out below.  The Mandatory Cost will be
calculated by the Administrative Agent as a weighted average of the Lenders’
Additional Cost Rates (weighted in proportion to the percentage participation
of each Lender in the relevant Loan) and will be expressed as a percentage rate
per annum.

3.                                 The Additional
Cost Rate for any Lender lending from an Applicable Lending Office in a
Participating Member State will be the percentage notified by that Lender to
the Administrative Agent.  This
percentage will be certified by that Lender in its notice to the Administrative
Agent to be its reasonable determination of the cost (expressed as a percentage
of that Lender’s participation in all Loans made from that Applicable Lending
Office) of complying with the minimum reserve requirements of the European
Central Bank in respect of loans made from that Applicable Lending Office.

4.                                 The Additional
Cost Rate for any Lender lending from a Applicable Lending Office in the United
Kingdom will be calculated by the Administrative Agent as follows:

(a)                                      in relation to a
Sterling Advance:

	
  AB + C(B - D) + E  ́ 0.01

  	
   

  	
  per cent. per annum

  
	
  100 - (A + C)

  	
   

  

 

(b)                                     in relation to an
Advance in any currency other than Sterling:

	
  E  ́ 0.01

  	
   

  	
  per cent. per annum

  
	
  300

  	
   

  

 

Where:

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

B                             is the percentage rate of interest (excluding
the Applicable Interest Rate Margin and the Mandatory Cost and, if applicable,
the additional rate of interest specified in Section 2.11(e) (Default interest)) payable for the relevant Interest Period
on the Advance.

 SCHEDULE 2-1
 

 

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

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

E                              is designed to compensate Lenders for amounts
payable under the Fees Rules and is calculated by the Administrative Agent as
being the average of the most recent rates of charge supplied by the Reference
Banks to the Administrative Agent pursuant to paragraph 7 below and expressed
in pounds per £1,000,000.

5.                                 For the purposes
of this Schedule:

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

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

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

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

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

7.                                 If requested by
the Administrative Agent, each Reference Bank shall, as soon as practicable
after publication by the Financial Services Authority, supply to the
Administrative Agent, the rate of charge payable by that Reference Bank to the
Financial Services Authority pursuant to the Fees Rules in respect of the
relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs
applicable to that Reference Bank for that financial year) and expressed in
pounds per £1,000,000 of the Tariff Base of that Reference Bank.

8.                                 Each Lender shall
supply any information required by the Administrative Agent for the purpose of
calculating its Additional Cost Rate.  In
particular, but without limitation, each Lender shall supply the following information
on or prior to the date on which it becomes a Lender:

(a)                                      the jurisdiction
of its Applicable Lending Office; and

 SCHEDULE 2-2
 

 

(b)                                     any other
information that the Administrative Agent may reasonably require for such
purpose.

Each Lender shall promptly
notify the Administrative Agent of any change to the information provided by it
pursuant to this paragraph.

9.                                 The percentages
of each Lender for the purpose of A and C above and the rates of charge of each
Reference Bank for the purpose of E above shall be determined by the
Administrative Agent based upon the information supplied to it pursuant to
paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies
the Administrative Agent to the contrary, each Lender’s obligations in relation
to cash ratio deposits and Special Deposits are the same as those of a typical
bank from its jurisdiction of incorporation with a Applicable Lending Office in
the same jurisdiction as its Applicable Lending Office.

10.                           The
Administrative Agent shall have no liability to any person if such determination
results in an Additional Cost Rate which over or under compensates any Lender
and shall be entitled to assume that the information provided by any Lender or
Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in
all respects.

11.                           The
Administrative Agent shall distribute the additional amounts received as a
result of the Mandatory Cost to the Lenders on the basis of the Additional Cost
Rate for each Lender based on the information provided by each Lender and each
Reference Bank pursuant to paragraphs 3, 7 and 8 above.

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

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

 SCHEDULE 2-3

 

SCHEDULE 3

COMMITMENTS

	
  INITIAL LENDER

  	
   

  	
  EUR

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citibank International plc

  	
   

  	
  €

  	
  220,000,000

  	
   

  
	
  UBS Limited

  	
   

  	
  €

  	
  220,000,000

  	
   

  
	
  

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  €

  	
  440,000,000

  	
   

  

 

 SCHEDULE 3

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