Document:

EXHIBIT 4.24

 

 

SAPPI PAPIER HOLDING GmbH

 

as Issuer

 

J.P. MORGAN EUROPE LIMITED

 

as Security Agent

 

THE BANK OF NEW YORK MELLON

 

as Trustee, Transfer Agent, Registrar and Principal Paying Agent

 

and

 

THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A.

 

as Luxembourg Paying Agent, Transfer Agent and Registrar

 

 

INDENTURE

 

Dated as of July 5, 2012

 

 

83/8%  Senior Secured Notes due 2019

 

BRINGING THIS DOCUMENT OR ANY CERTIFIED COPY OF THIS DOCUMENT INTO THE REPUBLIC OF AUSTRIA AS WELL AS ANY WRITTEN CONFIRMATION (INCLUDING E-MAIL AND FAX) OR WRITTEN REFERENCE (INCLUDING E-MAIL AND FAX) TO THIS DOCUMENT MAY CAUSE THE IMPOSITION OF AUSTRIAN STAMP DUTY TAX.

 

This Indenture is entered into with the benefit of and subject to the terms of the Intercreditor Agreement (as defined herein).

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    
	
ARTICLE 1
    
	
DEFINITIONS
    
	
 
    
	
Section 1.01
    	
 
    	
Definitions
    	
1
    
	
Section 1.02
    	
 
    	
Other   Definitions
    	
32
    
	
Section 1.03
    	
 
    	
[Reserved]
    	
33
    
	
Section 1.04
    	
 
    	
Rules of   Construction
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 2
   THE NOTES
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 2.01
    	
 
    	
Form and   Dating
    	
34
    
	
Section 2.02
    	
 
    	
Execution   and Authentication
    	
35
    
	
Section 2.03
    	
 
    	
Paying   Agent, Registrars and Transfer Agents
    	
35
    
	
Section 2.04
    	
 
    	
Paying   Agent to Hold Money
    	
36
    
	
Section 2.05
    	
 
    	
Holder   Lists
    	
36
    
	
Section 2.06
    	
 
    	
Transfer   and Exchange
    	
37
    
	
Section 2.07
    	
 
    	
Replacement   Notes
    	
45
    
	
Section 2.08
    	
 
    	
Outstanding   Notes
    	
45
    
	
Section 2.09
    	
 
    	
Temporary   Notes
    	
45
    
	
Section 2.10
    	
 
    	
Cancellation
    	
45
    
	
Section 2.11
    	
 
    	
Defaulted   Interest
    	
46
    
	
Section 2.12
    	
 
    	
Further   Issues
    	
46
    
	
Section 2.13
    	
 
    	
CUSIP, ISIN   or Common Code Number
    	
46
    
	
Section 2.14
    	
 
    	
Deposit   of Moneys
    	
46
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 3
   REDEMPTION AND PREPAYMENT
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 3.01
    	
 
    	
Notices   to Trustee
    	
47
    
	
Section 3.02
    	
 
    	
Selection   of Notes to Be Redeemed
    	
47
    
	
Section 3.03
    	
 
    	
Notice   of Redemption
    	
48
    
	
Section 3.04
    	
 
    	
Effect   of Notice of Redemption
    	
49
    
	
Section 3.05
    	
 
    	
Deposit   of Purchase or Redemption Price
    	
49
    
	
Section 3.06
    	
 
    	
Notes   Redeemed in Part
    	
49
    
	
Section 3.07
    	
 
    	
Optional   Redemption
    	
49
    
	
Section 3.08
    	
 
    	
Redemption   for Changes in Taxes
    	
50
    
	
Section 3.09
    	
 
    	
[Reserved]
    	
51
    
	
Section 3.10
    	
 
    	
Mandatory   Redemption
    	
51
    
	
Section 3.11
    	
 
    	
[Reserved]
    	
51
    
	
Section 3.12
    	
 
    	
Offer   to Purchase by Application of Excess Proceeds
    	
51
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 4
   COVENANTS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 4.01
    	
 
    	
Payment   of Notes
    	
53
    
	
Section 4.02
    	
 
    	
Maintenance   of Office or Agency
    	
53
    
	
Section 4.03
    	
 
    	
Reports   and Other Information
    	
54
    
	
Section 4.04
    	
 
    	
Compliance   Certificate
    	
56
    
	
Section 4.05
    	
 
    	
[Reserved]
    	
56
    
	
Section 4.06
    	
 
    	
Stay,   Extension and Usury Laws
    	
56
    

 

i

 

	
Section 4.07
    	
 
    	
Limitations   on Restricted Payments
    	
56
    
	
Section 4.08
    	
 
    	
Dividend   and Other Payment Restrictions Affecting Restricted Subsidiaries
    	
60
    
	
Section 4.09
    	
 
    	
Limitation   on Incurrence of Indebtedness and Issuance of Preferred Stock
    	
61
    
	
Section 4.10
    	
 
    	
Asset   Sales
    	
67
    
	
Section 4.11
    	
 
    	
Transactions   with Affiliates
    	
70
    
	
Section 4.12
    	
 
    	
Liens
    	
71
    
	
Section 4.13
    	
 
    	
Additional   Intercreditor Agreement
    	
72
    
	
Section 4.14
    	
 
    	
Offer   to Repurchase Upon Change of Control
    	
72
    
	
Section 4.15
    	
 
    	
Designation   of Restricted and Unrestricted Subsidiaries
    	
74
    
	
Section 4.16
    	
 
    	
Limitation   on Issuance of Guarantees of Indebtedness by Restricted Subsidiaries
    	
74
    
	
Section 4.17
    	
 
    	
Additional   Amounts
    	
75
    
	
Section 4.18
    	
 
    	
Maintenance   of Listing
    	
77
    
	
Section 4.19
    	
 
    	
No   Impairment of Security Interests
    	
77
    
	
Section 4.20
    	
 
    	
Payments   for Consent
    	
78
    
	
Section 4.21
    	
 
    	
Suspension   of Certain Covenants when Notes Rated Investment Grade
    	
78
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 5

SUCCESSORS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 5.01
    	
 
    	
Merger,   Consolidation or Sale of Assets
    	
79
    
	
Section 5.02
    	
 
    	
Successor   Corporation Substituted
    	
81
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 6

DEFAULTS AND REMEDIES
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 6.01
    	
 
    	
Events   of Default
    	
81
    
	
Section 6.02
    	
 
    	
Acceleration
    	
83
    
	
Section 6.03
    	
 
    	
Other   Remedies
    	
84
    
	
Section 6.04
    	
 
    	
Waiver   of Past Defaults
    	
84
    
	
Section 6.05
    	
 
    	
Control   by Majority
    	
84
    
	
Section 6.06
    	
 
    	
Limitation   on Suits
    	
84
    
	
Section 6.07
    	
 
    	
Rights   of Holders of Notes to Receive Payment
    	
85
    
	
Section 6.08
    	
 
    	
Collection   Suit by Trustee
    	
85
    
	
Section 6.09
    	
 
    	
Trustee   May File Proofs of Claim
    	
85
    
	
Section 6.10
    	
 
    	
Priorities
    	
86
    
	
Section 6.11
    	
 
    	
Undertaking   for Costs
    	
86
    
	
Section 6.12
    	
 
    	
Agents
    	
86
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 7

TRUSTEE
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 7.01
    	
 
    	
Duties   of Trustee
    	
86
    
	
Section 7.02
    	
 
    	
Rights   of Trustee
    	
87
    
	
Section 7.03
    	
 
    	
Individual   Rights of Trustee
    	
89
    
	
Section 7.04
    	
 
    	
Trustee’s   Disclaimer
    	
89
    
	
Section 7.05
    	
 
    	
Notice   of Defaults
    	
89
    
	
Section 7.06
    	
 
    	
Compensation   and Indemnity
    	
89
    
	
Section 7.07
    	
 
    	
Replacement   of Trustee
    	
90
    
	
Section 7.08
    	
 
    	
Successor   Trustee by Merger, etc.
    	
91
    
	
Section 7.09
    	
 
    	
Eligibility;   Disqualification
    	
91
    

 

ii

 

	
 
    	
 
    	
ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 8.01
    	
 
    	
Option   to Effect Legal Defeasance or Covenant Defeasance
    	
91
    
	
Section 8.02
    	
 
    	
Legal   Defeasance and Discharge
    	
91
    
	
Section 8.03
    	
 
    	
Covenant   Defeasance
    	
92
    
	
Section 8.04
    	
 
    	
Conditions   to Legal or Covenant Defeasance
    	
93
    
	
Section 8.05
    	
 
    	
Deposited   Money and U.S. Government Obligations Held in Trust; Other Miscellaneous   Provisions
    	
93
    
	
Section 8.06
    	
 
    	
Repayment   to Issuer
    	
94
    
	
Section 8.07
    	
 
    	
Reinstatement
    	
94
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 9.01
    	
 
    	
Without   Consent of Holders of Notes
    	
95
    
	
Section 9.02
    	
 
    	
With   Consent of Holders of Notes
    	
96
    
	
Section 9.03
    	
 
    	
Revocation   and Effect of Consents
    	
97
    
	
Section 9.04
    	
 
    	
Notation   on or Exchange of Notes
    	
98
    
	
Section 9.05
    	
 
    	
Trustee   and the Security Agent to Sign Amendments
    	
98
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 10
   COLLATERAL AND SECURITY
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 10.01
    	
 
    	
Security   Documents
    	
98
    
	
Section 10.02
    	
 
    	
Release   of Collateral
    	
99
    
	
Section 10.03
    	
 
    	
Authorization   of Actions to Be Taken by the Trustee
    	
99
    
	
Section 10.04
    	
 
    	
Authorization   of Receipt of Funds by the Trustee Under the Collateral Documents
    	
100
    
	
Section 10.05
    	
 
    	
Termination   of Security Interest
    	
100
    
	
Section 10.06
    	
 
    	
Further   Action
    	
100
    
	
Section 10.07
    	
 
    	
[Reserved]
    	
101
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 11
   NOTE GUARANTEES
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 11.01
    	
 
    	
Guarantee
    	
101
    
	
Section 11.02
    	
 
    	
Limitation   on Guarantor Liability
    	
102
    
	
Section 11.03
    	
 
    	
Execution   and Delivery of Note Guarantee
    	
105
    
	
Section 11.04
    	
 
    	
Releases
    	
106
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 12
   SATISFACTION AND DISCHARGE
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 12.01
    	
 
    	
Satisfaction   and Discharge
    	
107
    
	
Section 12.02
    	
 
    	
Application   of Trust Money
    	
108
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE 13
   MISCELLANEOUS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 13.01
    	
 
    	
Notices
    	
108
    
	
Section 13.02
    	
 
    	
Certificate   and Opinion as to Conditions Precedent
    	
110
    
	
Section 13.03
    	
 
    	
Statements   Required in Certificate or Opinion
    	
110
    
	
Section 13.04
    	
 
    	
Rules by   Trustee and Agents
    	
111
    
	
Section 13.05
    	
 
    	
Agent   for Service; Submission to Jurisdiction; Waiver of Immunities
    	
111
    

 

iii

 

	
Section 13.06
    	
 
    	
No   Personal Liability of Directors, Officers, Employees and Shareholders
    	
111
    
	
Section 13.07
    	
 
    	
Governing   Law
    	
111
    
	
Section 13.08
    	
 
    	
No   Adverse Interpretation of Other Agreements
    	
112
    
	
Section 13.09
    	
 
    	
Successors
    	
112
    
	
Section 13.10
    	
 
    	
Severability
    	
112
    
	
Section 13.11
    	
 
    	
Counterpart   Originals
    	
112
    
	
Section 13.12
    	
 
    	
Table   of Contents, Headings, etc.
    	
112
    
	
Section 13.13
    	
 
    	
Judgment   Currency
    	
112
    
	
Section 13.14
    	
 
    	
Prescription
    	
113
    
	
Section 13.15
    	
 
    	
Place   of performance
    	
113
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
EXHIBITS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Exhibit A
    	
 
    	
FORM OF NOTE
    	
 
    
	
Exhibit B
    	
 
    	
FORM OF CERTIFICATE OF TRANSFER
    	
 
    
	
Exhibit C
    	
 
    	
FORM OF CERTIFICATE OF EXCHANGE
    	
 
    
	
Exhibit D
    	
 
    	
FORM OF NOTATION OF GUARANTEE
    	
 
    
	
Exhibit E
    	
 
    	
FORM OF SUPPLEMENTAL INDENTURE
    	
 
    
	
Exhibit F
    	
 
    	
AGREED SECURITY PRINCIPLES
    	
 
    

 

iv

 

INDENTURE dated as of July 5, 2012 by and among Sappi Papier Holding GmbH, an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), having its registered office at Brucker Strasse 21, A-8101 Gratkorn, Austria and registered with the Commercial Court of Vienna, Austria under registration number FN 167931 h, J.P. Morgan Europe Limited, as Security Agent, The Bank of New York Mellon, as Trustee, Principal Paying Agent, Registrar and Transfer Agent, and The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg Paying Agent, Registrar and Transfer Agent.

 

The Issuer, the Security Agent and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined below) of the 83/8% Senior Secured Notes due 2019 in an aggregate principal amount of US$300,000,000 (the “Initial Notes”) and the Holders of any Additional Notes (as defined below and, together with the Initial Notes, the “Notes”).

 

ARTICLE 1
 DEFINITIONS

 

Section 1.01                                Definitions.

 

“144A Global Note” means a Global Note bearing the Global Note Legend and the Private Placement Legend and deposited with the Custodian and registered in the name of Cede & Co.,. as nominee for DTC, that will be issued in an initial amount equal to the principal amount of the Notes sold in reliance on Rule 144A.

 

“2009 Refinancing” means certain refinancing transactions undertaken by the Parent in 2009, including the issuance of the 2014 Notes and the use of proceeds therefrom, the execution of the Revolving Credit Facility and the incurrence of borrowings under an OeKB facility.

 

“2011 Refinancing” means certain refinancing transactions undertaken by the Parent in 2011, including the issuance of the 2018 Notes and the 2021 Notes and the use of proceeds therefrom and the amendment and restatement of the Revolving Credit Facility.

 

“2014 Indenture” means the indenture governing the 2014 Notes, as amended, supplemented, restated or otherwise modified from time to time.

 

“2014 Note Guarantee” means the Guarantee by each guarantor thereof, of PE Paper Escrow GmbH’s obligations under the 2014 Indenture and the 2014 Notes, executed pursuant to the provisions of the 2014 Indenture.

 

“2014 Notes” means, collectively, the €350 million Senior Secured Notes due 2014 and the US$300 million Senior Secured Notes due 2014 issued by PE Paper Escrow GmbH and any additional notes issued under the 2014 Indenture.

 

“2014 Notes Issue Date” means July 29, 2009, the date on which the 2014 Notes were first issued.

 

“2017 Indenture” means the indenture governing the 2017 Notes, as amended, supplemented, restated or otherwise modified from time to time.

 

“2017 Note Guarantee” means the Guarantee by each guarantor thereof, of the Issuer’s obligations under the 2017 Indenture and the 2017 Notes, executed pursuant to the provisions of the 2017 Indenture.

 

“2017 Notes” means the US$400 million Senior Secured Notes due 2017 issued by the Issuer and any additional notes issued under the 2017 Indenture.

 

1

 

“2018 Indenture” means the indenture governing the 2018 Notes, as amended, supplemented, restated or otherwise modified from time to time.

 

“2018 Note Guarantee” means the Guarantee by each guarantor thereof, of the Issuer’s obligations under the 2018 Indenture and the 2018 Notes, executed pursuant to the provisions of the 2018 Indenture.

 

“2018 Notes” means the €250 million Senior Secured Notes due 2018 issued by the Issuer and any additional notes issued under the 2018 Indenture.

 

“2018/2021 Notes Issue Date” means April 14, 2011, the date on which the 2018 Notes and the 2021 Notes were first issued.

 

“2021 Indenture” means the indenture governing the 2021 Notes, as amended, supplemented, restated or otherwise modified from time to time.

 

“2021 Note Guarantee” means the Guarantee by each guarantor thereof, of the Issuer’s obligations under the 2021 Indenture and the 2021 Notes, executed pursuant to the provisions of the 2021 Indenture.

 

“2021 Notes” means the US$350 million Senior Secured Notes due 2021 issued by the Issuer and any additional notes issued under the 2021 Indenture.

 

“Acquired Debt” means, with respect to any specified Person:

 

(1)                                  Indebtedness of any other Person existing at the time such other Person is merged with or into or became a Restricted Subsidiary of such specified Person, whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary; and

 

(2)                                  Indebtedness secured by a Lien encumbering any asset acquired by such specified Person.

 

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

 

“Agent” means any Registrar, co-registrar, Transfer Agent, Paying Agent or additional paying agent.

 

“Agreed Security Principles” means the Agreed Security Principles set out in Exhibit F to this Indenture, as applied reasonably and in good faith by the Parent or the Issuer.

 

“Applicable Premium” means, with respect to any Note on any redemption date, the greater of:

 

(1)                                  1.0% of the principal amount of such Note; or

 

2

 

(2)                                  the excess of:

 

(a)                                  the present value at such redemption date of (i) the redemption price of such Note at June 15, 2015 (such redemption price being set forth in the table appearing in Section 3.07(c)) plus (ii) all required interest payments due on such Note through June 15, 2015 (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Rate as of such redemption date plus 50 basis points; over

 

(b)                                 the principal amount of such Note.

 

“Applicable Procedures” means, with respect to any transfer or exchange of or for Book-Entry Interests in any Global Note, the procedures of DTC that apply to such transfer or exchange.

 

“Asset Sale” means:

 

(1)                                  the sale, lease, conveyance or other disposition of any assets by the Parent or any of its Restricted Subsidiaries; provided that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Parent and its Restricted Subsidiaries taken as a whole will be governed by the provisions of Section 4.14 and Section 5.01 and not by the provisions of Section 4.10; and provided further, however, that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Issuer and its Restricted Subsidiaries taken as a whole will be governed by the provisions of Section 5.01 and not by the provisions of Section 4.10; and

 

(2)                                  the issuance of Equity Interests by any Restricted Subsidiary or the sale by the Parent or any of its Restricted Subsidiaries of Equity Interests in any of the Restricted Subsidiaries (in each case, other than directors’ qualifying shares).

 

Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale:

 

(1)                                  any single transaction or series of related transactions that involves assets having a Fair Market Value of less than US$10.0 million;

 

(2)                                  a transfer of assets or Equity Interests between or among the Parent and any Restricted Subsidiary;

 

(3)                                  an issuance of Equity Interests by a Restricted Subsidiary to the Parent or to a Restricted Subsidiary;

 

(4)                                  the sale, lease or other transfer of inventory, timber, trading stock or other assets in the ordinary course of business and any sale or other disposition of damaged, worn-out or obsolete assets or assets that are no longer useful in the conduct of the business of the Parent and its Restricted Subsidiaries;

 

(5)                                  licenses and sublicenses by the Parent or any of its Restricted Subsidiaries in the ordinary course of business;

 

(6)                                  any surrender or waiver of contract rights or settlement, release, recovery on or surrender of contract, tort or other claims in the ordinary course of business;

 

(7)                                  the granting of Liens not prohibited by Section 4.12;

 

3

 

(8)                                  the sale or other disposition of cash or Cash Equivalents;

 

(9)                                  a Restricted Payment that does not violate Section 4.07, a Permitted Investment or any transaction specifically excluded from the definition of Restricted Payment;

 

(10)                            the disposition of receivables in connection with the compromise, settlement or collection thereof in the ordinary course of business or in bankruptcy or similar proceedings and exclusive of factoring or similar arrangements;

 

(11)                            the foreclosure, condemnation or any similar action with respect to any property or other assets or a surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind;

 

(12)                            the lease or license in respect of land to a trading counterparty to whom the Parent or Restricted Subsidiary, as applicable, provides services on that land in the ordinary course of its trading;

 

(13)                            the disposition of assets to a Person who is providing services (the provision of which have been or are to be outsourced by the Parent or any Restricted Subsidiary to such Person) related to such assets;

 

(14)                            any sale, transfer, lease or other disposition of any assets or rights of a South African Restricted Subsidiary in connection with the BBBEE Act of up to €50.0 million; provided that any cash or Cash Equivalents received must be applied in accordance with Section 4.10;

 

(15)                            any sale, transfer or other disposition of Securitization Assets in connection with any Qualified Securitization Financing;

 

(16)                            any sale, transfer, lease, exchange or other disposition of timberlands and other timber assets in southern Africa; provided that any cash or Cash Equivalents received must be applied in accordance with Section 4.10;

 

(17)                            any disposition of assets or property in connection with claims under the Restitution of Land Rights Act, including any amendment, supplement, replacement or successor thereto, or laws or regulations of a similar or related nature; provided that any cash or Cash Equivalents received must be applied in accordance with Section 4.10;

 

(18)                            any sale, transfer, lease, exchange or other disposition (including pursuant to a derivative transaction) of carbon credits; provided that (a) clause (i) of Section 4.10(a) is, at the time of such transaction or at the time of payment or payments, satisfied and (b) any cash or Cash Equivalents received must be applied in accordance with Section 4.10; and

 

(19)                            any sale that is a result of a compulsorily or involuntary acquisition by any governmental authority; provided that any cash or Cash Equivalents received must be applied in accordance with Section 4.10.

 

“Authentication Order” means a written order from the Issuer signed by one duly authorized Director of the Issuer and delivered to the Trustee.

 

“Authorized Person” means any person who is designated in writing by the Issuer from time to time to give Instructions to the Registrar and Agents under the terms of this Indenture.

 

4

 

“Bank Austria Facility” means the amended and restated €25 million term loan facility agreement dated June 29, 2010 among SPH, as borrower, the Parent and certain of its Subsidiaries as original guarantors, and UniCredit Bank Austria AG, as lead arranger, agent and original lender, as amended from time to time.

 

“Bankruptcy Law” means (a) Title 11 of the U.S. Code or (b) any other law of the United States (or any political subdivision thereof), Austria (or any political subdivision thereof), Belgium (or any political subdivision thereof), England (or any political subdivision thereof), Finland (or any political subdivision thereof), Germany (or any political subdivision thereof), Hong Kong (or any political subdivision thereof), South Africa (or any political subdivision thereof), The Netherlands (or any political subdivision thereof) or the laws of any other jurisdiction or any political subdivision thereof relating to bankruptcy, insolvency, receivership, winding up, liquidation, reorganization or relief of debtors.

 

“BBBEE Act” means the Broad Based Black Empowerment Economic Act (No. 53 of 2003), including any amendment, supplement, replacement or successor thereto, and any legislation or regulation of a similar or related nature adopted in The Republic of South Africa and any notice, regulation, code of good practice or sector charter published, or any industry guidelines or scorecards established thereunder.

 

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the U.S. Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the U.S. Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.  The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding meaning.

 

“Board of Directors” means:

 

(1)                                  with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board;

 

(2)                                  with respect to a partnership, the board of directors of the general partner of the partnership;

 

(3)                                  with respect to a limited liability company, the managing member or members or any controlling committee of managing members thereof; and

 

(4)                                  with respect to any other Person, the board or committee of such Person serving a similar function.

 

“Book-Entry Interest” means a beneficial interest in a Global Note held by or through a Participant.

 

“Business Day” means a day other than a Saturday, Sunday or other day on which banking institutions in Johannesburg, London, Luxembourg, New York or Vienna or a place of payment under this Indenture are authorized or required by law to close.

 

“Capital Lease Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) prepared in accordance with IFRS, and the Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty.

 

5

 

“Capital Stock” means:

 

(1)                                 in the case of a corporation, corporate stock;

 

(2)                                 in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

 

(3)                                 in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and

 

(4)                                 any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock.

 

“Cash Equivalents” means:

 

(1)                                 direct obligations (or certificates representing an interest in such obligations) issued by, or unconditionally guaranteed by, the government of a member state of the European Union, the United States of America, South Africa, Switzerland or Canada (including, in each case, any agency or instrumentality thereof), as the case may be, the payment of which is backed by the full faith and credit of the relevant member state of the European Union, the United States of America, South Africa, Switzerland or Canada, as the case may be, and which are not callable or redeemable at the Parent’s option;

 

(2)                                 overnight bank deposits, time deposit accounts, certificates of deposit, banker’s acceptances and money market deposits with maturities (and similar instruments) of 12 months or less from the date of acquisition issued by (a) a bank or trust company which is organized under, or authorized to operate as a bank or trust company under, the laws of a member state of the European Union, the United States of America or any state thereof, South Africa, Switzerland or Canada; provided that such bank or trust company has capital, surplus and undivided profits aggregating in excess of €250 million (or the foreign currency equivalent thereof as of the date of such investment) and whose long-term debt is rated “A-3” or higher by Moody’s or “A-” or higher by S&P or the equivalent rating category of another internationally recognized rating agency or (b) a bank or trust company (including successors thereto) which, at any time since the 2014 Notes Issue Date through the Issue Date, has issued to the Parent or any Restricted Subsidiary overnight bank deposits, time deposit accounts, certificates of deposit, banker’s acceptances and money market deposits with maturities (and similar instruments) of 12 months or less from the date of acquisition;

 

(3)                                 repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clauses (1) and (2) above entered into with any financial institution meeting the qualifications specified in clause (2) above;

 

(4)                                 commercial paper having one of the two highest ratings obtainable from Moody’s or S&P and, in each case, maturing within one year after the date of acquisition; and

 

(5)                                 interests in investment companies or money market funds, in each case, at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses (1) through (4) of this definition.

 

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“Change of Control” means the occurrence of any of the following:

 

(1)                                 the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Parent and its Restricted Subsidiaries taken as a whole to any Person (including any “person” (as that term is used in Section 13(d)(3) of the U.S. Exchange Act));

 

(2)                                 the adoption of a plan relating to the liquidation or dissolution of the Parent;

 

(3)                                 the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any Person (including any “person” as defined above) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Parent, measured by voting power rather than number of shares;

 

(4)                                 the first day on which a majority of the members of the Board of Directors of the Parent are not Continuing Directors; or

 

(5)                                 the Parent consolidates with, or merges with or into, any Person, or any Person consolidates with, or merges with or into, the Parent, in any such event pursuant to a transaction in which any of the outstanding Voting Stock of the Parent or such other Person is converted into or exchanged for cash, securities or other property, other than any such transaction where the Voting Stock of the Parent outstanding immediately prior to such transaction constitutes or is converted into or exchanged for a majority of the outstanding shares of the Voting Stock of such surviving or transferee Person (immediately after giving effect to such transaction).

 

“Collateral” means the property and assets securing the Notes and the Note Guarantees as described in the Offering Memorandum and any other property and assets that become Collateral pursuant to the Collateral Documents.

 

“Collateral Documents” means the security agreements, pledge agreements, collateral assignments and related agreements, as amended, supplemented, restated, renewed, refunded, replaced, restructured, repaid, refinanced or otherwise modified from time to time, creating the security interests in the Collateral as contemplated by this Indenture.

 

“Commission” means the U.S. Securities and Exchange Commission.

 

“Consolidated EBITDA” means, with respect to any specified Person for any period, the Consolidated Net Income of such Person for such period plus the following to the extent deducted in calculating such Consolidated Net Income, without duplication:

 

(1)                                 provision for taxes based on income or profits of such Person and its Subsidiaries which are Restricted Subsidiaries for such period; plus

 

(2)                                 the Fixed Charges of such Person and its Subsidiaries which are Restricted Subsidiaries for such period; plus

 

(3)                                 depreciation, amortization (including amortization of intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non-cash charges and expenses (excluding any such non-cash charge or expense to the extent that it represents an accrual of or reserve for cash charges or expenses in any future period or amortization of a prepaid cash charge or expense that was paid in a

 

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prior period) of such Person and its Subsidiaries which are Restricted Subsidiaries for such period; plus

 

(4)                                 any expenses, charges or other costs related to any Equity Offering permitted by this Indenture or related to any Permitted Investment, acquisition, disposition or recapitalization or the incurrence of Indebtedness permitted to be incurred under Section 4.09 whether or not successful, in each case, as determined in good faith by the Parent; plus

 

(5)                                 the amount of any minority interest expense consisting of subsidiary income attributable to minority equity interests of third parties in any non-wholly owned Restricted Subsidiary in such period or any prior period, except to the extent of dividends declared or paid on, or other cash payments in respect of, Equity Interests held by such parties; minus

 

(6)                                 non-cash items increasing such Consolidated Net Income for such period (other than any non-cash items increasing such Consolidated Net Income pursuant to clauses (1) through (12) of the definition of Consolidated Net Income), other than the reversal of a reserve for cash charges in a future period in the ordinary course of business,

 

in each case, on a consolidated basis and determined in accordance with IFRS.

 

Notwithstanding the preceding, the provision for taxes based on the income or profits of, and the depreciation and amortization and other non-cash expenses of, a Restricted Subsidiary (other than the Issuer or any Guarantor) shall be added to Consolidated Net Income to compute Consolidated EBITDA only to the extent (and in the same proportion, including by reason of minority interests) that the net income (loss) of such Restricted Subsidiary was included in calculating Consolidated Net Income for the purposes of this definition and to the extent that a corresponding amount would be permitted at the date of determination to be dividended to the Parent or the Issuer by such Restricted Subsidiary without any direct or indirect consensual restriction pursuant to the terms of its charter and all agreements or instruments applicable to that Restricted Subsidiary or its stockholders (other than any restriction specified in clause (3) of the definition of “Consolidated Net Income”).

 

“Consolidated Leverage” means, as of any date of determination, the total amount of indebtedness in respect of borrowed money of the Parent and its Restricted Subsidiaries on a consolidated basis (excluding Hedging Obligations and Qualified Securitization Financings).

 

“Consolidated Leverage Ratio” means as of any date of determination, the ratio of (a) the Consolidated Leverage on such date to (b) the Consolidated EBITDA of the Parent for the four most recent full fiscal quarters ending immediately prior to such date for which internal financial statements are available. For purposes of calculating the Consolidated EBITDA for such period:

 

(1)                                 acquisitions that have been made by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, including through mergers or consolidations, or any Person or any of its Subsidiaries which are Restricted Subsidiaries acquired by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, and including all related financing transactions and including increases in ownership of Subsidiaries which are Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the date of determination, or that are to be made on the date of determination, will be given pro forma effect (as determined in good faith by a responsible accounting or financial officer of the Issuer or the Parent and may include anticipated expense and cost reduction synergies) as if they had occurred on the first day of the four-quarter reference period;

 

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(2)                                 the Consolidated EBITDA attributable to discontinued operations, as determined in accordance with IFRS, and operations or businesses (and ownership interests therein) disposed of on or prior to the date of determination (including transactions giving rise to the need to calculate such Consolidated Leverage Ratio), will be excluded;

 

(3)                                 any Person that is a Restricted Subsidiary on the date of determination will be deemed to have been a Restricted Subsidiary at all times during such four-quarter period; and

 

(4)                                 any Person that is not a Restricted Subsidiary on the date of determination will be deemed not to have been a Restricted Subsidiary at any time during such four-quarter period.

 

For purposes of this definition, whenever pro forma effect is to be given to a transaction, the pro forma calculation shall be determined in good faith by a responsible financial or accounting officer of the Issuer or the Parent and may include anticipated expense and cost reduction synergies. In determining the amount of indebtedness in respect of borrowed money outstanding on any date of determination, pro forma effect will be given to any incurrence, repayment, repurchase, defeasance or other acquisition, retirement or discharge of indebtedness in respect of borrowed money on such date. Any undrawn amounts under revolving credit Indebtedness shall be deemed not to be outstanding.

 

“Consolidated Net Income” means, with respect to any specified Person for any period, the aggregate of the net income (loss) of such Person and its Subsidiaries which are Restricted Subsidiaries for such period, on a consolidated basis (excluding the net income (loss) of any Unrestricted Subsidiary), determined in accordance with IFRS and without any reduction in respect of preferred stock dividends; provided that:

 

(1)                                 any goodwill or other intangible asset impairment charges will be excluded;

 

(2)                                 the net income (loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting will be included only to the extent of the amount of dividends or similar distributions paid in cash to the specified Person or a Restricted Subsidiary which is a Subsidiary of the Person;

 

(3)                                 solely for the purpose of determining the amount available for Restricted Payments under Section 4.07(a)(vii)(A), any net income (loss) of any Restricted Subsidiary (other than the Issuer or any Guarantor) will be excluded if such Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of distributions by such Restricted Subsidiary, directly or indirectly, to the Parent or the Issuer (or any Guarantor that holds the Equity Interests of such Restricted Subsidiary, as applicable) by operation of the terms of such Restricted Subsidiary’s charter or any agreement, instrument, judgment, decree, order, statute or governmental rule or regulation applicable to such Restricted Subsidiary or its shareholders other than (a) restrictions that have been waived or otherwise released, (b) restrictions pursuant to the Notes or this Indenture, the 2017 Notes or the 2017 Indenture, the New OeKB Facility or the Revolving Credit Facility, (c) restrictions pursuant to the 2014 Notes or the 2014 Indenture, the 2018 Notes or the 2018 Indenture, or the 2021 Notes or the 2021 Indenture, (d) contractual restrictions in effect on the Issue Date with respect to the Restricted Subsidiary and other restrictions with respect to such Restricted Subsidiary that taken as a whole, are not materially less favorable to the Holders of the Notes than such restrictions in effect on the Issue Date under the Revolving Credit Facility, and (e) any restriction listed under clauses (i), (ii), (iii), (iv), (ix) or, to the extent it relates to restrictions listed under the foregoing clauses, clause (xv) of Section 4.08(b); except that the Parent’s equity in the net income of any such Restricted Subsidiary for such period will be included in such Consolidated Net Income up to the aggregate amount of cash or Cash Equivalents actually distributed

 

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or that could have been distributed by such Restricted Subsidiary during such period to the Parent or another Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend to another Restricted Subsidiary (other than the Issuer or any Guarantor), to the limitation contained in this clause); and

 

(4)                                 any net gain (or loss) realized upon the sale or other disposition of any asset or operations of the Parent or any Restricted Subsidiaries (including pursuant to any sale leaseback transaction) which is not sold or otherwise disposed of in the ordinary course of business (as determined in good faith by the Parent) or in connection with the sale or disposition of securities will be excluded;

 

(5)                                 any extraordinary, exceptional or unusual gain, loss or charge or any profit or loss on the disposal of property, investments and businesses, asset impairments, financial impacts of natural disasters (including fire, flood and storm and related events) and non-cash gains or losses on the price fair value adjustment of plantations (net of tax effects), or any charges or reserves in respect of any restructuring, redundancy, integration or severance or any expenses, charges, reserves or other costs related to acquisitions, the Refinancing, the 2009 Refinancing, the 2011 Refinancing, any other incurrence of Indebtedness permitted to be incurred under Section 4.09 or any BBBEE Act transaction will be excluded;

 

(6)                                 any non-cash compensation charge or expense arising from any grant of stock, stock options or other equity-based awards will be excluded;

 

(7)                                 all deferred financing costs written off and premium paid or other expenses incurred directly in connection with any early extinguishment of Indebtedness and any net gain (loss) from any write-off or forgiveness of Indebtedness will be excluded;

 

(8)                                 any one time non-cash charges or any increases in amortization or depreciation resulting from purchase accounting, in each case, in relation to any acquisition of another Person or business or resulting from any reorganization or restructuring involving the Parent or its Subsidiaries will be excluded;

 

(9)                                 any ineffectiveness recognized in earnings related to qualifying hedge transactions in respect of Hedging Obligations will be excluded;

 

(10)                          any cash payments to the Parent or any Restricted Subsidiary in respect of (i) carbon credit sales, (ii) alternative fuel tax credits or sales or (iii) programs of a similar or related nature will be included;

 

(11)                          any increase in charges associated with employee benefits as a result of changes to IAS 19 Employee Benefits or any similar accounting pronouncement will be excluded; and

 

(12)                          the cumulative effect of a change in accounting principles will be excluded.

 

“Consolidated Net Tangible Assets” means, as of any date of determination, the total amount of assets of the Issuer on a consolidated basis, including deferred pension costs, after deducting therefrom:

 

(i)                                     all current liabilities (excluding any indebtedness or obligations under capital leases classified as a current liability);

 

(ii)                                  all goodwill, trade names, trademarks, patents, unamortized debt discount and financing costs and all similar intangible assets; and

 

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(iii)                               appropriate adjustments on account of minority interests of other Persons holding stock in any Subsidiary of the Issuer;

 

all as set forth in the Issuer’s and its Subsidiaries’ most recent consolidated balance sheet internally available (but, in any event, as of a date within 150 days of the date of determination) and computed in accordance with IFRS.

 

“Consolidated Senior Secured Leverage” means, as of any date of determination, the total amount of Senior Secured Indebtedness of the Parent and its Restricted Subsidiaries on a consolidated basis (excluding Hedging Obligations and Qualified Securitization Financings).

 

“Consolidated Senior Secured Leverage Ratio” means as of any date of determination, the ratio of (a) the Consolidated Senior Secured Leverage on such date to (b) the Consolidated EBITDA of the Parent for the four most recent full fiscal quarters ending immediately prior to such date for which internal financial statements are available.  For purposes of calculating the Consolidated EBITDA for such period:

 

(1)                                 acquisitions that have been made by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, including through mergers or consolidations, or any Person or any of its Subsidiaries which are Restricted Subsidiaries acquired by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, and including all related financing transactions and including increases in ownership of Subsidiaries which are Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the date of determination, or that are to be made on the date of determination, will be given pro forma effect (as determined in good faith by a responsible accounting or financial officer of the Issuer or the Parent and may include anticipated expense and cost reduction synergies) as if they had occurred on the first day of the four-quarter reference period;

 

(2)                                 the Consolidated EBITDA attributable to discontinued operations, as determined in accordance with IFRS, and operations or businesses (and ownership interests therein) disposed of on or prior to the date of determination (including transactions giving rise to the need to calculate such Consolidated Senior Secured Leverage Ratio), will be excluded;

 

(3)                                 any Person that is a Restricted Subsidiary on the date of determination will be deemed to have been a Restricted Subsidiary at all times during such four-quarter period; and

 

(4)                                 any Person that is not a Restricted Subsidiary on the date of determination will be deemed not to have been a Restricted Subsidiary at any time during such four-quarter period.

 

For purposes of this definition, whenever pro forma effect is to be given to a transaction, the pro forma calculation shall be determined in good faith by a responsible financial or accounting officer of the Issuer or the Parent and may include anticipated expense and cost reduction synergies.  In determining the amount of Indebtedness outstanding on any date of determination, pro forma effect will be given to any incurrence, repayment, repurchase, defeasance or other acquisition, retirement or discharge of Indebtedness on such date; provided, however, that the pro forma calculation of Consolidated Senior Secured Leverage shall not give effect to any Senior Secured Indebtedness incurred on the date of determination to be secured by a Lien pursuant to clause (1), (2) or (4) of the definition of Permitted Collateral Liens.  Any undrawn amounts under revolving credit Indebtedness shall be deemed not to be outstanding.

 

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“Contingent Obligations” means, with respect to any Person, any obligation of such Person guaranteeing in any manner, whether directly or indirectly, any operating lease, dividend or other obligation that, in each case, does not constitute Indebtedness (“primary obligations”) of any other Person (the “primary obligor”), including any obligation of such Person, whether or not contingent:

 

(1)                                 to purchase any such primary obligation or any property constituting direct or indirect security therefor;

 

(2)                                 to advance or supply funds:

 

(a)                                 for the purchase or payment of any such primary obligation; or

 

(b)                                 to maintain the working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor; or

 

(3)                                 to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation against loss in respect thereof.

 

“continuing” means, with respect to any Default or Event of Default, that such Default or Event of Default has not been cured or waived.

 

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Parent who:

 

(1)                                 was a member of such Board of Directors on the Issue Date; or

 

(2)                                 was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election.

 

“Credit Facilities” means one or more debt facilities, instruments or arrangements incurred by the Issuer, any Guarantor, Permitted Obligor or any Finance Subsidiary (including the Revolving Credit Facility, the New OeKB Facility, the Bank Austria Facility or commercial paper facilities and overdraft facilities) or commercial paper facilities, overdraft facilities, indentures, trust deeds, debentures, fiscal agency agreements or note purchase agreements, in each case, with banks, other institutions, insurance companies, funds or investors, providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such institutions or to special purpose entities formed to borrow from such institutions against such receivables), letters of credit, notes, commercial paper, debentures, overdrafts or other corporate debt instruments or other Indebtedness, in each case, as amended, restated, modified, renewed, refunded, replaced, restructured, refinanced, repaid, increased or extended in whole or in part from time to time (and whether in whole or in part and whether or not with the original administrative agent and lenders or another administrative agent or agents or trustees or other banks or institutions and whether provided under the Revolving Credit Facility, the New OeKB Facility or the Bank Austria Facility or one or more other credit or other agreements, indentures, financing agreements or otherwise) and in each case including all agreements, instruments and documents executed and delivered pursuant to or in connection with the foregoing (including any notes and letters of credit issued pursuant thereto and any Guarantee and collateral agreement, patent and trademark security agreement, mortgages or letter of credit applications and other Guarantees, pledges, agreements, security agreements and collateral documents). Without limiting the generality of the foregoing, the term ‘‘Credit Facilities’’ shall include any agreement or instrument (1) changing the maturity of any Indebtedness incurred thereunder or contemplated thereby, (2) adding Subsidiaries of the Parent as additional borrowers, issuers or guarantors thereunder, (3) increasing the amount of Indebtedness incurred thereunder or available to be borrowed thereunder or (4) otherwise altering the terms and conditions thereof.

 

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“Currency Exchange Protection Agreement” means, in respect of any Person, any foreign exchange contract, currency swap agreement, currency option, cap, floor, ceiling or collar or agreement or other similar agreement or arrangement designed to protect such Person against fluctuations in currency exchange rates as to which such Person is a party.

 

“Custodian” means, with respect to the Global Notes, The Bank of New York Mellon in New York, New York, and any and all successors thereto appointed as Custodian hereunder and having become such pursuant to the applicable provision of this Indenture.

 

“Default” means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default.

 

“Definitive Registered Note” means a certificated Note in a principal amount of $200,000 and integral multiples of $1,000 above $200,000 registered in the name of the Holder thereof and issued in accordance with Sections 2.06, 2.07 and 2.09, substantially in the form of Exhibit A hereto and bearing the Private Placement Legend, except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means, with respect to the Notes issuable or issued in whole or in part in global form, DTC, including any and all successors thereto appointed as Depositary hereunder and having become such pursuant to the applicable provision(s) of this Indenture.

 

“Designated Indebtedness” means any Indebtedness in an aggregate principal amount of at least US$25.0 million (including the amount of all undrawn commitments and matured and contingent reimbursement obligations pursuant to letters of credit thereunder) that is designated as Designated Indebtedness by delivery to the Trustee of an Officer’s Certificate.

 

“Director” means a member of the Board of Directors.

 

“Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case, at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that the Notes mature.  Notwithstanding the preceding sentence, (i) only the portion of Capital Stock which so matures or is mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such date will be deemed to be Disqualified Stock and (ii) any Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock have the right to require the issuer thereof to repurchase such Capital Stock upon the occurrence of a change of control or an asset sale (howsoever defined or referred to) will not constitute Disqualified Stock if the terms of such Capital Stock provide that the issuer thereof may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07.  For purposes hereof, the amount of Disqualified Stock which does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were purchased on any date on which Indebtedness shall be required to be determined pursuant to this Indenture, and if such price is based upon, or measured by, the Fair Market Value of such Disqualified Stock, such Fair Market Value to be determined as set forth herein.

 

“dollar”, “US$” or “$” means the lawful currency of the United States of America.

 

“Dollar Equivalent” means, with respect to any monetary amount in a currency other than dollar, at any time of determination thereof, the amount of dollar obtained by converting such currency other than dollar involved in such computation into dollar at the spot rate for the purchase of dollar with the applicable currency other than dollar as published in the Financial Times in the “Currency Rates” section (or, if the Financial Times is no longer published, or if such information is

 

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no longer available in the Financial Times, such source as may be selected in good faith by the Parent) on the date of such determination.  Except as expressly provided otherwise, whenever it is necessary to determine whether the Issuer, the Parent or any of its Restricted Subsidiaries have complied with any covenant or other provision in this Indenture or if there has occurred an Event of Default and an amount is expressed in a currency other than dollar, such amount will be treated as the Dollar Equivalent determined as of the date such amount is initially determined in such non-dollar currency.

 

“DTC” means The Depository Trust Company, a limited purpose trust company organized under New York law.

 

“Equity Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock).

 

“Equity Offering” means a public or private sale either (1) of Equity Interests of the Parent by the Parent (other than Disqualified Stock and other than offerings registered on Form S-8 (or any successor form) under the Securities Act or any similar offering in other jurisdictions) or (2) of Equity Interests of a direct or indirect parent entity of the Parent to the extent that the net proceeds therefrom are contributed to the equity capital of the Parent or any of its Restricted Subsidiaries.

 

“Euro MTF” means the Euro MTF market, the alternative market of the Luxembourg Stock Exchange.

 

“European Union” means the European Union, including any country which is as of the Issue Date, or becomes after the Issue Date, a member of the European Union.

 

“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress of either party, determined in good faith by an Officer.

 

“Finance Subsidiary” means a wholly owned subsidiary that is formed for the purpose of borrowing funds or issuing securities and lending the proceeds to the Issuer or a Guarantor and that conducts no business other than as may be reasonably incidental to, or related to, the foregoing.

 

“Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the ratio of the Consolidated EBITDA of such Person for such period to the Fixed Charges of such Person for such period.  In the event that the specified Person or any of its Subsidiaries which are Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise discharges any Indebtedness or issues, repurchases or redeems preferred stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made occurs (the “Calculation Date”), then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect (as determined in good faith by a responsible accounting or financial officer of the Issuer or the Parent) to such incurrence, assumption, guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase or redemption of preferred stock, and the use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter reference period; provided, however, that the pro forma calculation of Fixed Charges shall not give effect to (i) any Indebtedness incurred on the Calculation Date pursuant to Section 4.09(b) or (ii) the discharge on the Calculation Date of any Indebtedness to the extent that such discharge results from the proceeds of Indebtedness incurred pursuant to Section 4.09(b).

 

In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

 

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(1)                                 acquisitions that have been made by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, including through mergers or consolidations, or any Person or any of its Subsidiaries which are Restricted Subsidiaries acquired by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, and including all related financing transactions and including increases in ownership of Subsidiaries which are Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the Calculation Date, or that are to be made on the Calculation Date, will be given pro forma effect (as determined in good faith by a responsible accounting or financial officer of the Issuer or the Parent and may include anticipated expense and cost reduction synergies) as if they had occurred on the first day of the four-quarter reference period;

 

(2)                                 the Consolidated EBITDA attributable to discontinued operations, as determined in accordance with IFRS, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded;

 

(3)                                 the Fixed Charges attributable to discontinued operations, as determined in accordance with IFRS, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded, but only to the extent that the obligations giving rise to such Fixed Charges will not be obligations of the specified Person or any of its Subsidiaries which are Restricted Subsidiaries following the Calculation Date;

 

(4)                                 any Person that is a Restricted Subsidiary on the Calculation Date will be deemed to have been a Restricted Subsidiary at all times during such four-quarter period;

 

(5)                                 any Person that is not a Restricted Subsidiary on the Calculation Date will be deemed not to have been a Restricted Subsidiary at any time during such four-quarter period; and

 

(6)                                 if any Indebtedness bears a floating rate of interest, the interest expense on such Indebtedness will be calculated as if the rate in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligation applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the Calculation Date in excess of 12 months, or, if shorter, at least equal to the remaining term of such Indebtedness).

 

“Fixed Charges” means, with respect to any specified Person for any period, the sum, without duplication, of:

 

(1)                                 the consolidated interest expense (net of interest income) of such Person and its Subsidiaries which are Restricted Subsidiaries for such period, whether paid or accrued, including, without limitation, amortization of debt discount (but not debt issuance costs, commissions, fees and expenses), non-cash interest payments (but excluding any non-cash interest expense attributable to the movement in the mark to market valuation of Hedging Obligations or other derivative instruments), the interest component of all payments associated with Capital Lease Obligations, commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings (but excluding, in each case, all deferred financing costs written off and premium paid or other expenses incurred directly in connection with any repurchase or early extinguishment of Indebtedness); plus

 

(2)                                 the consolidated interest expense of such Person and its Subsidiaries which are Restricted Subsidiaries that was capitalized during such period; plus

 

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(3)                                 any interest on Indebtedness of another Person that is guaranteed by such Person or one of its Subsidiaries which are Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its Subsidiaries which are Restricted Subsidiaries, to the extent such Guarantee or Lien is called upon; plus

 

(4)                                 net payments and receipts (if any) pursuant to interest rate Hedging Obligations (excluding amortization of fees) with respect to Indebtedness; plus

 

(5)                                 the product of (a) all dividends, whether paid or accrued and whether or not in cash, on any series of preferred stock of any Restricted Subsidiary, other than dividends on Equity Interests payable to the Parent or a Restricted Subsidiary, times (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined national, state and local statutory tax rate of such Person, expressed as a decimal, as estimated in good faith by a responsible accounting or financial officer of the Issuer or the Parent.

 

Notwithstanding any of the foregoing, Fixed Charges shall not include any payments on any operating leases, including without limitation any payments on any lease, concession or license of property (or Guarantee thereof) which would be considered an operating lease under (i) IFRS or (ii) IFRS as in effect on the Issue Date.

 

“Global Note Legend” means the legend set forth in Section 2.06(f)(ii), which is required to be placed on all Global Notes issued under this Indenture.

 

“Global Notes” means, individually and collectively, the 144A Global Note and the Regulation S Global Note, substantially in the form of Exhibit A hereto, bearing the Global Note Legend, issued in accordance with Sections 2.01, 2.06(b), 2.06(d) or 2.06(e).

 

“Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection or deposit in the ordinary course of business, of all or any part of any Indebtedness (whether arising by agreements to keep-well, to take or pay or to maintain financial statement conditions, pledges of assets or otherwise).

 

“Guarantors” means the Parent and any Restricted Subsidiary that executes a Note Guarantee in accordance with the provisions of this Indenture, and their respective successors and assigns, in each case, until the Note Guarantee of such Person has been released in accordance with the provisions of this Indenture.

 

“Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under:

 

(1)                                 interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements;

 

(2)                                 other agreements or arrangements designed to manage interest rates or interest rate risk; and

 

(3)                                 other agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates, including Currency Exchange Protection Agreements, or commodity prices.

 

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

 

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“IFRS” means International Financial Reporting Standards promulgated by the International Accounting Standards Board or any successor board or agency and, except as otherwise specified, as in effect on the date of any calculation or determination required hereunder.

 

“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables and accrued liabilities arising in the ordinary course of business that are not more than 120 days past due and Guarantees thereof):

 

(1)                                 in respect of borrowed money;

 

(2)                                 evidenced by bonds, notes, debentures or similar instruments for which such Person is responsible or liable;

 

(3)                                 representing reimbursement obligations in respect of letters of credit, bankers’ acceptances or similar instruments (except to the extent such reimbursement obligations relate to trade payables and such obligations are satisfied within 30 days of incurrence);

 

(4)                                 representing Capital Lease Obligations (subject to clause (1) of the next succeeding paragraph);

 

(5)                                 representing the balance deferred and unpaid of the purchase price of any property or services due more than one year after such property is acquired or such services are completed; and

 

(6)                                 representing net obligations under any Hedging Obligations (the amount of any such obligations to be equal at any time to the termination value of such agreement or arrangement giving rise to such obligation that would be payable by such person at such time);

 

if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability on a balance sheet (excluding the footnotes thereto) of the specified Person prepared in accordance with IFRS.  In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person) and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person.

 

The term “Indebtedness” shall not include:

 

(1)                                 any lease of property which would be considered an operating lease under (i) IFRS or (ii) IFRS as in effect on the Issue Date;

 

(2)                                 Contingent Obligations in the ordinary course of business;

 

(3)                                 in connection with the purchase by the Parent or any Restricted Subsidiary of any business, any post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the performance of such business after the closing; or

 

(4)                                 for the avoidance of doubt, any contingent obligations in respect of workers’ compensation claims, early retirement or termination obligations, pension fund obligations or contributions or similar claims, obligations or contributions or social security or wage Taxes.

 

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The amount of Indebtedness of any Person at any time in the case of a revolving credit or similar facility shall be the total amount of funds borrowed and then outstanding under such facility.

 

“Indenture” means this Indenture, as it may be amended, modified or supplemented from time to time.

 

“Indirect Participant” means a Person who holds a Book-Entry Interest in a Global Note through a Participant.

 

“Instructions” means any written notices, directions or instructions received by the Registrar and Agents from an Authorized Person or from a person reasonably believed by the Registrar and Agents to be an Authorized Person.

 

“Intercreditor Agreement” means the agreement among the Security Agent, the trustee for the 2014 Notes, the trustee for the 2017 Notes, the trustee for the 2018 Notes, the trustee for the 2021 Notes, the agent for the Bank Austria Facility, the agent for the Revolving Credit Facility, the Trustee and the other parties named therein, as amended from time to time.

 

“Investment Grade Status” shall occur when the Notes are rated Baa3 or better by Moody’s and BBB- or better by S&P (or, if either such entity ceases to rate the Notes, the equivalent investment grade credit rating from any other “nationally recognized statistical rating organization” as defined in section 3(a)(62) of the U.S. Exchange Act selected by the Issuer as a replacement agency).

 

“Investments” means, with respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other obligations, but excluding advances or extensions of credit to customers or suppliers made in the ordinary course of business), advances or capital contributions (excluding commission, travel and similar advances to officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as Investments on a balance sheet (excluding the footnotes) prepared in accordance with IFRS.  If the Parent or any Restricted Subsidiary sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary, the Parent will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of the Parent’s Investments in such Restricted Subsidiary that were not sold or disposed of in an amount determined as provided in Section 4.07(c).  Except as otherwise provided in this Indenture, the amount of an Investment will be determined at the time the Investment is made and without giving effect to subsequent changes in value.

 

“Issue Date” means July 5, 2012.

 

“JSE” means an exchange formerly known as the Johannesburg Stock Exchange and operated by JSE Limited.

 

“Issuer” means Sappi Papier Holding GmbH until a successor replaces it in accordance with the provisions of this Indenture, after which, “Issuer” shall mean such successor.

 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement or any lease in the nature thereof.

 

“Losses” means any and all claims, losses, liabilities, damages, costs, expenses and judgments (including legal fees and expenses) sustained by either party.

 

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“Management Advances” means loans or advances made to, or Guarantees with respect to loans or advances made to, directors, officers, employees or consultants of any Parent or any Restricted Subsidiary:

 

(1)                                 in respect of travel, entertainment or moving related expenses incurred in the ordinary course of business;

 

(2)                                 in respect of moving related expenses incurred in connection with any closing or consolidation of any facility or office; or

 

(3)                                 in the ordinary course of business and (in the case of this clause (3)) not exceeding US$5.0 million in the aggregate outstanding at any time.

 

“Manufacturing Facility” means any mill, manufacturing plant or other manufacturing facility including, in each case, the equipment therein.

 

“Market Capitalization” means an amount equal to (i) the total number of issued and outstanding shares of Capital Stock of the Parent on the date of the declaration of the relevant dividend or on the date of the declaration or formal approval of the relevant distribution or other payment, as applicable, multiplied by (ii) the arithmetic mean of the closing prices per share of such Capital Stock on the JSE for the 30 consecutive trading days immediately preceding the date of the declaration of such dividend or the date of the declaration or formal approval of the relevant distribution or other payment, as applicable.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Net Offering Proceeds” with respect to any issuance or sale of Capital Stock, means the cash proceeds of such issuance or sale, net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other fees and charges actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result of such issuance or sale (after taking into account any available tax credit or deductions and any tax sharing arrangements).

 

“Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received by the Parent or any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of:

 

(1)                                 the direct costs relating to such Asset Sale, including, without limitation, legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale;

 

(2)                                 all distributions and other payments required to be made to minority interest holders (other than the Parent or any Subsidiary) in Subsidiaries or joint ventures as a result of such Asset Sale;

 

(3)                                 taxes paid or payable as a result of the Asset Sale;

 

(4)                                 any reserve for adjustment or indemnification obligations in respect of the sale price of such asset or assets established in accordance with IFRS; and

 

(5)                                 all payments made on any Indebtedness which is secured by any assets subject to such Asset Sale, in accordance with the terms of any Lien upon such assets, or which must by its terms, or in order to obtain a necessary consent to such Asset Sale, or by applicable law, be repaid out of the proceeds from such Asset Sale.

 

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“New OeKB Facility” means the facility agreement for an amount of up to the lower of €142.0 million and the euro equivalent of US$170.0 million on the date of funding to be entered into on or before September 29, 2012 among SPH or another Restricted Subsidiary, as borrower, Parent and certain of Parent’s Subsidiaries, as guarantors, UniCredit Bank Austria AG, as mandated lead arranger and agent, and certain financial institutions to be listed therein as lenders, as amended, restated, supplemented, waived, replaced (whether or not upon termination, and whether with the original lenders or otherwise), restructured, repaid, refunded, refinanced or otherwise modified from time to time, including any agreement extending the maturity thereof, refinancing, replacing or otherwise restructuring all or any portion of the Indebtedness under such agreement or agreement or any successor or replacement agreement or agreements or increasing the amount loaned or issued thereunder (subject to compliance with Section 4.09) or altering the maturity thereof.

 

“Non-Recourse Debt” means Indebtedness as to which neither the Parent nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable as a guarantor or otherwise.

 

“Non-U.S. Person” means a Person who is not a U.S. Person.

 

“Note Guarantee” means the Guarantee by each Guarantor of the Issuer’s obligations under this Indenture and the Notes, executed pursuant to the provisions of this Indenture.

 

“Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness.

 

“Offering” means the offering of the Initial Notes by the Issuer.

 

“Offering Memorandum” means the final Offering Memorandum, dated June 20, 2012, relating to the offer of the Initial Notes.

 

“Officer” means, the Chief Executive Officer, the Chief Financial Officer of the Parent or a responsible accounting or financial officer of the Parent or the Issuer.

 

“Officer’s Certificate” means a certificate signed on behalf of either the Parent or the Issuer by an Officer.

 

“Opinion of Counsel” means an opinion in writing from and signed by legal counsel that meets the requirements of Section 13.03 and which opinion is reasonably acceptable to the Trustee.  The counsel may be an employee of or counsel to the Issuer, the Parent or any Restricted Subsidiary.

 

“outstanding” means, in relation to the Notes as of any date of determination, all the Notes issued other than:

 

(1)                                 Notes which have been redeemed pursuant to this Indenture;

 

(2)                                 Notes in respect of which the date for redemption in accordance with this Indenture has occurred and the redemption moneys including premium, if any, and all interest and Additional Amounts, if any, payable thereon have been duly paid to the Trustee or to the Principal Paying Agent in the manner provided herein (and where appropriate notice to that effect has been given to the relative Holders) and remain available for payment against presentation of the relevant Notes;

 

(3)                                 Notes which have been purchased and cancelled in accordance with Sections 4.10 or Section 4.14;

 

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(4)                                 mutilated or defaced Notes which have been surrendered and cancelled and in respect of which replacements have been issued in accordance with Section 2.07;

 

(5)                                 (for the purpose only of ascertaining the principal amount of the Notes outstanding and without prejudice to the status for any other purpose of the relevant Notes) Notes which are alleged to have been lost, stolen or destroyed and in respect of which replacements have been issued; and

 

(6)                                 any Global Note to the extent that it shall have been exchanged for another Global Note or for Definitive Registered Notes pursuant to its provisions;

 

provided that for each of the following purposes, namely:

 

(1)                                 the right to vote of any Holders in respect of any direction, waiver or consent delivered in accordance with the terms of this Indenture; and

 

(2)                                 the determination of how many and which Notes are for the time being outstanding for the purposes of Sections 6.01 through 6.06 (inclusive), 6.11, 7.08 and 9.02,

 

Notes (if any) which at such date of determination are held by or on behalf of the Issuer or any Affiliate of the Issuer shall be deemed not to remain outstanding, except that, in determining whether the Trustee will be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Notes concerning which a Responsible Officer of the Trustee has received written notice are so owned will be so disregarded.

 

“Parent” means Sappi Limited and its successors and assigns.

 

“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary.

 

“Permitted Business” means (a) any businesses, services or activities engaged in by the Parent or any of the Restricted Subsidiaries on the Issue Date and (b) any businesses, services and activities engaged in by the Parent or any of the Restricted Subsidiaries that are related, complementary, incidental, ancillary or similar to any of the foregoing or are extensions or developments of any thereof.

 

“Permitted Collateral Liens” means:

 

(1)                                 Liens on the Collateral to secure (A) any 2014 Notes outstanding on the Issue Date after application of the proceeds of the Notes (and the 2014 Note Guarantees with respect to such notes); (B) the 2018 Notes issued on the 2018/2021 Notes Issue Date (and the 2018 Notes Guarantees with respect to such notes); (C) the 2021 Notes issued on the 2018/2021 Notes Issue Date (and the 2021 Note Guarantees with respect to such notes); and (D) the Notes and the 2017 Notes (and the Note Guarantees and the 2017 Note Guarantees) issued on the Issue Date and, in each of (A), (B), (C) and (D) any Permitted Refinancing Indebtedness in respect thereof that is Designated Indebtedness (and Permitted Refinancing Indebtedness in respect of such Permitted Refinancing Indebtedness that is Designated Indebtedness), provided that each of the parties thereto will have entered into the Intercreditor Agreement; and provided further that the Collateral securing such Indebtedness secures the Notes or the Note Guarantees on a senior or pari passu basis;

 

(2)                                 Liens on the Collateral to secure Indebtedness under Credit Facilities that is Designated Indebtedness permitted by clause (1) of the definition of Permitted Debt, provided that the Collateral securing such Indebtedness also secures the Notes or the

 

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Note Guarantees on a senior or pari passu basis; provided further that each of the parties thereto will have entered into the Intercreditor Agreement;

 

(3)                                 Liens on the Collateral to secure Indebtedness of the Issuer or a Guarantor that is Designated Indebtedness; provided that on the date of such incurrence and after giving pro forma effect thereto the Consolidated Senior Secured Leverage Ratio would have been no more than 2.5 to 1.0; provided further that the Collateral securing such Indebtedness secures the Notes on a senior or pari passu basis; and provided further that each of the parties thereto will have entered into the Intercreditor Agreement;

 

(4)                                 Liens on the Collateral to secure Indebtedness permitted by Section 4.09(a) or Section 4.09(b)(xxiii), provided that the assets and properties securing such Indebtedness will also secure the Notes on a senior or pari passu basis, provided further, that the aggregate amount of such Indebtedness secured by Liens under this clause (4) does not at any time exceed the greater of US$175.0 million and 3.0% of Total Assets;

 

(5)                                 Liens on the Collateral securing the Parent’s or any Restricted Subsidiary’s obligations under Hedging Obligations other than Hedging Obligations in respect of commodity prices permitted by Section 4.09(b)(viii) provided that each of the parties thereto will have entered into the Intercreditor Agreement;

 

(6)                                 Liens on the Collateral arising by operation of law or that are described in one or more of clauses (4), (5), (6), (7), (8), (9), (18), (19), (22), (23) and (35) of the definition of “Permitted Liens”; and

 

(7)                                 any extension, renewal or replacement, in whole or in part, of any Lien described in the foregoing clauses (1) through (6) above, provided that any such extension, renewal or replacement will be no more restrictive in any material respect than the Lien so extended, renewed or replaced and will not extend in any material respect to any additional property or assets and the Collateral securing such Lien secures the Notes or the Note Guarantees on a pari passu basis;

 

provided that, in the case of each of clauses (1), (2), (3), (4) and (7) the assets and properties, if any, securing Indebtedness incurred under the Revolving Credit Facility also secure the Notes and the Note Guarantees on a senior or pari passu basis; and provided further, that, to the extent the Revolving Credit Facility require the Parent or any Subsidiary to grant security in respect of the shares of a Guarantor, no such security shall be required if such security could be reasonably expected to give rise to or result in:  (A) personal liability for the officers, directors or shareholders of such Restricted Subsidiary, (B) any violation of applicable law that cannot be avoided or otherwise prevented through measures reasonably available to such Restricted Subsidiary or (C) any significant cost, expense, liability or obligation (including with respect to any Taxes) other than reasonable out-of-pocket expenses and other than reasonable expenses incurred in connection with any governmental or regulatory filings required as a result of, or any measures pursuant to clause (B) undertaken in connection with such Lien, which cannot be avoided through measures reasonably available to the Restricted Subsidiary.

 

“Permitted Investments” means:

 

(1)                                 any Investment in the Parent or in a Restricted Subsidiary; provided that any Investment in the form of cash by the Issuer or any of its Restricted Subsidiaries directly in a South African Restricted Subsidiary must be made in the form of intercompany Indebtedness and the receivable under such Indebtedness must be assigned to secure the obligations under the Notes and may secure the obligations

 

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under other Indebtedness that is required to be secured by such Lien on a pari passu or junior basis;

 

(2)                                 any Investment in cash and Cash Equivalents;

 

(3)                                 any Investment by the Parent or any Restricted Subsidiary in a Person, if as a result of such Investment:

 

(a)                                 such Person becomes a Restricted Subsidiary; or

 

(b)                                 such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Parent or a Restricted Subsidiary;

 

(4)                                 any Investment made as a result of the receipt of non-cash consideration or deemed non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 4.10;

 

(5)                                 any acquisition of assets or Capital Stock solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Parent;

 

(6)                                 any Investments received in compromise or resolution of (A) obligations of trade creditors or customers that were incurred in the ordinary course of business of the Parent or any of its Restricted Subsidiaries, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or (B) litigation, arbitration or other disputes;

 

(7)                                 any Investment in a Securitization Subsidiary or any Investment by a Securitization Subsidiary in any other Person in connection with a Qualified Securitization Financing, including Investments of funds held in accounts permitted or required by the arrangements governing such Qualified Securitization Financing or any related Indebtedness;

 

(8)                                 Investments in receivables owing to the Parent or any Restricted Subsidiary created or acquired in the ordinary course of business;

 

(9)                                 Investments represented by Hedging Obligations, which obligations are permitted by Section 4.09(b)(viii);

 

(10)                          Investments in the Notes, the 2017 Notes, the 2014 Notes, the 2018 Notes, the 2021 Notes, the SPH Bonds due 2032, the South African Notes and any other Indebtedness of the Parent or any Restricted Subsidiary;

 

(11)                          any Guarantee of Indebtedness permitted to be incurred by Section 4.09;

 

(12)                          any Investment existing on, or made pursuant to binding commitments existing on, the Issue Date and any Investment consisting of an extension, modification or renewal of any Investment existing on, or made pursuant to a binding commitment existing on, the Issue Date; provided that the amount of any such Investment may be increased (a) as required by the terms of such Investment as in existence on the Issue Date or (b) as otherwise permitted under this Indenture;

 

(13)                          Investments acquired after the Issue Date as a result of the acquisition by the Parent or any Restricted Subsidiary of another Person, including by way of a merger, amalgamation or consolidation with or into the Parent or any of its Restricted

 

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Subsidiaries after the Issue Date in a transaction that is not prohibited by Section 5.01 to the extent that such Investments were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation;

 

(14)                          Management Advances;

 

(15)                          any Investments in the Jiangxi Chenming Paper Co. Ltd. joint venture, in an aggregate amount when taken together with all other Investments made pursuant to this clause (15) after the Issue Date that are at the time outstanding not to exceed US$30.0 million;

 

(16)                          Investments in consortia, joint ventures and similar arrangements formed in connection with the BBBEE Act, including the Lereko Property Consortium transactions in an aggregate amount when taken together with all other Investments made pursuant to this clause (16) that are at the time outstanding not to exceed US$50.0 million; and

 

(17)                          other Investments in any Person having an aggregate Fair Market Value (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (17) that are at the time outstanding not to exceed the greater of US$300.0 million and 4.25% of Total Assets, provided, that if an Investment is made pursuant to this clause in a Person that is not a Restricted Subsidiary and such Person subsequently becomes a Restricted Subsidiary or is subsequently designated a Restricted Subsidiary pursuant to Section 4.07, such Investment, if applicable, shall thereafter be deemed to have been made pursuant to clause (1) or (3) of the definition of “Permitted Investments” and not this clause.

 

“Permitted Liens” means:

 

(1)                                 Liens in favor of the Parent or any of the Restricted Subsidiaries;

 

(2)                                 Liens on property of a South African Restricted Subsidiary (other than ordinary shares of Sappi Southern Africa (Proprietary) Ltd) to secure Indebtedness of South African Restricted Subsidiaries permitted by Section 4.09;

 

(3)                                 Liens on property (including Capital Stock) of a Person existing at the time such Person becomes a Restricted Subsidiary or is merged with or into or consolidated with the Parent or any Restricted Subsidiary; provided that such Liens were in existence prior to the contemplation of such Person becoming a Restricted Subsidiary or such merger or consolidation, were not incurred in contemplation thereof and do not extend to any assets other than those of the Person that becomes a Restricted Subsidiary or is merged with or into or consolidated with the Parent or any Restricted Subsidiary;

 

(4)                                 Liens to secure the performance of statutory obligations, trade contracts, insurance, surety or appeal bonds, workers compensation obligations, leases, performance bonds or other obligations of a like nature incurred in the ordinary course of business (including Liens to secure letters of credit issued to assure payment of such obligations);

 

(5)                                 Liens to secure Indebtedness permitted by Section 4.09(b)(iv) covering only the assets acquired with or financed by such Indebtedness;

 

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(6)                                 Liens existing on the Issue Date;

 

(7)                                 Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded;

 

(8)                                 Liens imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’ Liens, in each case, incurred in the ordinary course of business;

 

(9)                                 survey exceptions, easements or reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real property that were not incurred in connection with Indebtedness and that do not in the aggregate materially adversely impair their use in the operation of the business of such Person and any condemnation or eminent domain proceedings or compulsory purchase order affecting real property;

 

(10)                          Liens created for the benefit of (or to secure) the Notes (or the Note Guarantees);

 

(11)                          Liens securing Indebtedness under Hedging Obligations, which obligations are permitted by Section 4.09(b)(viii);

 

(12)                          Liens to secure any Permitted Refinancing Indebtedness (excluding Liens to secure Permitted Refinancing Indebtedness initially secured pursuant to clause (21) of this definition) permitted to be incurred under this Indenture; provided, however, that:

 

(a)                                 the new Lien is limited to all or part of the same property and assets that secured or, under the written agreements pursuant to which the original Lien arose, could secure the original Lien (plus improvements and accessions to, such property or proceeds or distributions thereof); and

 

(b)                                 the Indebtedness secured by the new Lien is not increased to any amount greater than the sum of (x) the outstanding principal amount, or, if greater, committed amount, of the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged with such Permitted Refinancing Indebtedness and (y) an amount necessary to pay any fees and expenses, including premia, related to such renewal, refunding, refinancing, replacement, defeasance or discharge;

 

(13)                          Liens on insurance policies and proceeds thereof, or other deposits, to secure insurance premium financings;

 

(14)                          filing of Uniform Commercial Code financing statements under U.S. state law (or similar filings under applicable jurisdiction) in connection with operating leases in the ordinary course of business;

 

(15)                          bankers’ Liens, rights of setoff or similar rights and remedies as to deposit accounts, Liens arising out of judgments or awards not constituting an Event of Default and notices of lis pendens and associated rights related to litigation being contested in good faith by appropriate proceedings and for which adequate reserves have been made;

 

(16)                          Liens on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness;

 

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(17)                          Liens on specific items of inventory or other goods (and the proceeds thereof) of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created in the ordinary course of business for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

 

(18)                          Leases, licenses, subleases and sublicenses of assets in the ordinary course of business;

 

(19)                          Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of assets entered into in the ordinary course of business;

 

(20)                          Liens on Securitization Assets and related assets incurred in connection with any Qualified Securitization Financing;

 

(21)                          Liens incurred by the Parent or any Restricted Subsidiary with respect to obligations that do not exceed US$175.0 million at any one time outstanding.

 

(22)                          (i) mortgages, liens, security interests, restrictions, encumbrances or any other matters of record that have been placed by any developer, landlord or other third party on property over which the Parent or any Restricted Subsidiary has easement rights or on any real property leased by the Parent or any Restricted Subsidiary and subordination or similar agreements relating thereto and (ii) any condemnation or eminent domain proceedings or compulsory purchase order affecting real property;

 

(23)                          Liens on property or assets under construction (and related rights) in favor of a contractor or developer or arising from progress or partial payments by a third party relating to such property or assets;

 

(24)                          Liens securing or arising by reason of any netting or set-off arrangement entered into in the ordinary course of banking or other trading activities;

 

(25)                          Liens (including put and call arrangements) on Capital Stock or other securities of any Unrestricted Subsidiary that secure Indebtedness of such Unrestricted Subsidiary;

 

(26)                          pledges of goods, the related documents of title and/or other related documents arising or created in the ordinary course of the Parent or any Restricted Subsidiary’s business or operations as Liens only for Indebtedness to a bank or financial institution directly relating to the goods or documents on or over which the pledge exists;

 

(27)                          Liens over cash paid into an escrow account pursuant to any purchase price retention arrangement as part of any permitted disposal by the Parent or a Restricted Subsidiary on condition that the cash paid into such escrow account in relation to a disposal does not represent more than 15% of the net proceeds of such disposal;

 

(28)                          limited recourse Liens in respect of the ownership interests in, or assets owned by, any joint ventures which are not Restricted Subsidiaries securing obligations of such joint ventures;

 

(29)                          Liens on any proceeds loan made by the Parent or any Restricted Subsidiary in connection with any future incurrence of Indebtedness permitted under this Indenture and securing that Indebtedness;

 

(30)                          Liens created on any asset of the Parent or a Restricted Subsidiary established to hold assets of any stock option plan or any other management or employee benefit or

 

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incentive plan or unit trust of the Parent or a Restricted Subsidiary securing any loan to finance the acquisition of such assets;

 

(31)                          Liens over treasury stock of the Parent or a Restricted Subsidiary purchased or otherwise acquired for value by the Parent or such Restricted Subsidiary pursuant to a stock buy-back scheme or other similar plan or arrangement;

 

(32)                          Liens on assets or property of a Restricted Subsidiary that is not a Guarantor securing Indebtedness of any Restricted Subsidiary that is not a Guarantor or a Guarantee of any such Indebtedness by the Parent;

 

(33)                          Liens on property at the time the Parent or a Restricted Subsidiary acquired the property; provided that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such acquisition and do not extend to any other property owned by the Parent or any Restricted Subsidiary;

 

(34)                          Liens securing or relating to industrial revenue, pollution control or other tax exempt bonds;

 

(35)                          Liens on escrowed proceeds for the benefit of the related holders of debt securities or other Indebtedness (or the underwriters or arrangers thereof) or on cash set aside at the time of incurrence of any Indebtedness or government securities purchased with such cash, in either case to the extent such cash or government securities prefund the payment of interest on such Indebtedness and are held in an escrow account or similar arrangement to be applied for such purpose;

 

(36)                          any limited recourse Lien to secure Indebtedness incurred in connection with any project financing; provided that the assets or revenues which are subject to that Lien are:

 

(a)                                 assets which are the subject of the applicable project; or

 

(b)                                 claims, revenues or proceeds which arise from the use or operation, failure to meet specifications, failure to complete, expropriation, sale or loss of or damage to, those assets; and

 

(37)                          any extension, renewal, refinancing or replacement, in whole or in part, of any Lien described in the foregoing clauses (1) through (36) (but excluding clauses (5), (21), and (23)); provided that any such Lien is limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written arrangements under which the original Lien arose, could secure) the Indebtedness being refinanced.

 

“Permitted Obligor” means any Restricted Subsidiary that is an obligor under the Revolving Credit Facility, the Bank Austria Facility, the New OeKB Facility or any refinancing Indebtedness in respect thereof that is not required to Guarantee the Notes pursuant to Section 4.16.

 

“Permitted Refinancing Indebtedness” means any Indebtedness of the Parent or any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, exchange, defease or discharge other Indebtedness of the Parent or any of its Restricted Subsidiaries (other than intercompany Indebtedness (other than any proceeds loan)); provided that:

 

(1)                                 the aggregate principal amount (or accreted value, if applicable, or if issued with original issue discount, aggregate issue price) of such Permitted Refinancing

 

27

 

Indebtedness does not exceed the principal amount (or accreted value, if applicable, or if issued with original issue discount, aggregate issue price) of the Indebtedness renewed, refunded, refinanced, replaced, exchanged, defeased or discharged (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premia, incurred in connection therewith);

 

(2)                                 such Permitted Refinancing Indebtedness has (a) a final maturity date that is either (i) no earlier than the final maturity date of the Indebtedness being renewed, refunded, refinanced, replaced, exchanged, defeased or discharged or (ii) after the final maturity date of the Notes and (b) has a Weighted Average Life to Maturity that is equal to or greater than the Weighted Average Life to Maturity of the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged; provided, however that only clause (a)(ii) of this paragraph (2) shall apply to any Permitted Refinancing Indebtedness in respect of the SPH Bonds due 2032.

 

(3)                                 if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged is expressly, contractually, subordinated in right of payment to the Notes or the Note Guarantees, as the case may be, such Permitted Refinancing Indebtedness is subordinated in right of payment to the Notes or the Note Guarantees, as the case may be, on terms at least as favorable to the Holders of the Notes or the Note Guarantees, as the case may be, as those contained in the documentation governing the Indebtedness being renewed, refunded, refinanced, replaced, exchanged, defeased or discharged; and

 

(4)                                 if the Issuer or any Guarantor was the obligor on the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged, such Indebtedness is incurred either by the Issuer, a Finance Subsidiary or by a Guarantor.

 

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.

 

“Principal Property” means any Manufacturing Facility that (i) is owned by the Issuer or a Subsidiary of the Issuer, (ii) has a gross book value (without deduction of any applicable depreciation reserves) on a date as of which the determination is being made of more than 3% of the Consolidated Net Tangible Assets of the Issuer and (iii) has not been determined in good faith by the Board of Directors of the Issuer not to be materially important to the total business conducted by the Issuer and its Subsidiaries, taken as a whole.

 

“Private Placement Legend” means the legend set forth in Section 2.06(f)(i) to be placed on all Notes issued under this Indenture except where otherwise permitted by the provisions of this Indenture.

 

“QIB” means a “qualified institutional buyer” as defined in Rule 144A.

 

“Qualified Securitization Financing” means any financing pursuant to which the Parent or any of its Restricted Subsidiaries may sell, convey or otherwise transfer to any other Person or grant a security interest in, any accounts receivable (and related assets) in any aggregate principal amount equivalent to the Fair Market Value of such accounts receivable (and related assets) of the Parent or any of its Restricted Subsidiaries; provided that (a) the covenants, events of default and other provisions applicable to such financing shall be customary for such transactions and shall be on market terms (as determined in good faith by the Parent’s board of directors of senior management) at the time such financing is entered into, (b) the interest rate applicable to such financing shall be a market interest rate (as determined in good faith by the Parent’s board of directors or senior management) at the time such financing is entered into and (c) such financing shall be non-recourse to

 

28

 

the Parent or any of its Restricted Subsidiaries except to a limited extent customary for such transactions.

 

“Refinancing” has the meaning given to such term in the Offering Memorandum.

 

“Regulation S” means Regulation S promulgated under the U.S. Securities Act.

 

“Regulation S Definitive Note” means a Definitive Registered Note sold in reliance on Regulation S.

 

“Regulation S Global Note” means a Global Note bearing the Global Note Legend and the Private Placement Legend and deposited with the Custodian and registered in the name of Cede & Co., as nominee for DTC, that will be issued in an initial amount equal to the principal amount of the Notes initially resold in reliance on Regulation S.

 

“Responsible Officer,” when used with respect to the Trustee, means any director, vice president, assistant vice president, trust officer or any other officer within the Corporate Trust department of the Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers, and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

 

“Restricted Definitive Note” means a Definitive Registered Note bearing the Private Placement Legend.

 

“Restricted Investment” means an Investment other than a Permitted Investment.

 

“Restricted Period” means the 40-day distribution compliance period, as defined in Regulation S.

 

“Restricted Subsidiary” means any Subsidiary of the Parent that is not an Unrestricted Subsidiary, including the Issuer.

 

“Revolving Credit Facility” means the credit agreement for an amount of up to €350.0 million entered into on August 27, 2009 and amended and restated on April 28, 2011 among SPH and Sappi International SA, as borrowers, the Parent and certain of the Parent’s Subsidiaries, as guarantors, and certain financial institutions, as amended, restated, supplemented, waived, replaced (whether or not upon termination, and whether with the original lenders or otherwise), restructured, repaid, refunded, refinanced or otherwise modified from time to time, including any agreement or indenture extending the maturity thereof, refinancing, replacing or otherwise restructuring all or any portion of the Indebtedness under such agreement or agreements or any successor or replacement agreement or agreements or increasing the amount loaned or made available thereunder (subject to compliance with Section 4.09) or altering the maturity thereof.

 

“Rule 144A” means Rule 144A promulgated under the U.S. Securities Act.

 

“Rule 144A Definitive Note” means a Definitive Registered Note sold in reliance on Rule 144A.

 

“Rule 144A Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

 

“Rule 903” means Rule 903 promulgated under the U.S. Securities Act.

 

29

 

“Rule 904” means Rule 904 promulgated under the U.S. Securities Act.

 

“S&P” means Standard & Poor’s Ratings Group.

 

“Securitization Assets” means any accounts receivable, inventory, royalty or revenue streams from sales of inventory (including, in each case, related assets and proceeds) subject to a Qualified Securitization Financing.

 

“Securitization Fees” means distributions or payments made directly or by means of discounts with respect to any participation interest issued or sold in connection with, and other fees paid to a Person that is not the Parent or a Restricted Subsidiary in connection with any Qualified Securitization Financing.

 

“Securitization Repurchase Obligation” means any obligation of a seller of Securitization Assets in a Qualified Securitization Financing to repurchase Securitization Assets arising as a result of a breach of a representation, warranty or covenant or otherwise, including as a result of a receivable or portion thereof becoming subject to any asserted defense, dispute, off-set or counterclaim of any kind as a result of any action taken by, any failure to take action by or any other event relating to the seller.

 

“Securitization Subsidiary” means a Subsidiary of the Parent (or another Person formed for the purposes of engaging in a Qualified Securitization Financing in which the Parent or any Subsidiary of the Parent makes an Investment and to which the Parent or any Subsidiary of the Parent transfers Securitization Assets and related assets) which engages in no activities other than in connection with the financing of Securitization Assets of the Parent or its Subsidiaries, all proceeds thereof and all rights (contractual and other), collateral and other assets relating thereto, and any business or activities incidental or related to such business, and which is designated by the Board of Directors of the Parent as a Securitization Subsidiary.

 

“Security Agent” means J.P. Morgan Europe Limited until a successor security agent replaces it in accordance with the applicable provisions of the Intercreditor Agreement and the Collateral Documents, after which, “Security Agent” shall mean such successor.

 

“Senior Secured Indebtedness” means, as of any date of determination, the principal amount of any Indebtedness for borrowed money that is secured by a Lien.

 

“Significant Subsidiary” means, at the date of determination, any Restricted Subsidiary that together with its Subsidiaries which are Restricted Subsidiaries (i) for the most recent fiscal year, accounted for more than 10% of the consolidated revenues of the Parent or (ii) as of the end of the most recent fiscal year, was the owner of more than 10% of the consolidated assets of the Parent.

 

“South African Notes” means any debt securities issued by the Parent or any South African Restricted Subsidiary from time to time.

 

“South African Restricted Subsidiary” means a Restricted Subsidiary that is organized under the laws of the Republic of South Africa or is a Subsidiary thereof and is not a Guarantor.

 

“SPH” means Sappi Papier Holding GmbH.

 

“SPH Bonds due 2032” means the SPH 7.50% Guaranteed Notes due 2032.

 

“Stated Maturity” means, with respect to any instalment of interest or principal on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the Issue Date, and will not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof.

 

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“Subsidiary” means, with respect to any specified Person:

 

(1)                                 any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(2)                                 any partnership or limited liability company of which (a) more than 50% of the capital accounts, distribution rights, total equity and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, whether in the form of membership, general, special or limited partnership interests or otherwise, and (b) such Person or any Subsidiary of such Person is a controlling general partner or otherwise controls such entity.

 

“Subsidiary Guarantor” means a Subsidiary of the Parent that provides a Note Guarantee.

 

“Tax” means any tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and any other additional amounts related thereto, and, for the avoidance of doubt, including any withholding or deduction for or on account of Tax).  “Taxes” and “Taxation” shall be construed to have corresponding meanings.

 

“Total Assets” means the total consolidated assets of Sappi Limited, as shown on the most recent balance sheet (excluding the footnotes thereto) of Sappi Limited prepared in accordance with IFRS.

 

“Treasury Rate” means, as of any redemption date, the yield to maturity as of such redemption date of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two business days prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from the redemption date to June 15, 2015; provided, however, that if the period from the redemption date to June 15, 2015, is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used.

 

“Trustee” means The Bank of New York Mellon until a successor trustee replaces it in accordance with the applicable provisions of this Indenture, after which, “Trustee” shall mean such successor.

 

“Unrestricted Definitive Note” means a Definitive Registered Note that does not bear and is not required to bear the Private Placement Legend.

 

“Unrestricted Subsidiary” means any Subsidiary of the Parent (other than the Issuer or any successor to the Issuer) that is designated by the Board of Directors of the Parent or Issuer as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors but only to the extent that such Subsidiary:

 

(1)                                 has no Indebtedness other than Non-Recourse Debt;

 

(2)                                 except as permitted by Section 4.11, is not party to any agreement, contract, arrangement or understanding with the Parent or any Restricted Subsidiary unless the

 

31

 

terms of any such agreement, contract, arrangement or understanding are no less favorable to the Parent or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Parent; and

 

(3)                                 is a Person with respect to which neither the Parent nor any Restricted Subsidiary has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results.

 

“U.S. Dollars” or “US$” or “$” means and/or refers to the lawful currency of the United States.

 

“U.S. Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated pursuant thereto.

 

“U.S. Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and for the payment of which the United States pledges its full faith and credit.

 

“U.S. Person” means a U.S. person as defined in Regulation S.

 

“U.S. Securities Act” means the U.S. Securities Act of 1933 and the rules and regulations of the Commission promulgated thereunder, as amended.

 

“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person.

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing:

 

(1)                                 the sum of the products obtained by multiplying (a) the amount of each then remaining instalment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Indebtedness, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by

 

(2)                                 the then outstanding principal amounts of such Indebtedness.

 

Section 1.02                             Other Definitions.

 

	
 
    	
Term
    	
 
    	
Defined in Section
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
“Additional Amounts”
    	
 
    	
4.17
    
	
 
    	
“Additional Notes”
    	
 
    	
2.12
    
	
 
    	
“Affiliate Transaction”
    	
 
    	
4.11
    
	
 
    	
“Asset Sale Offer”
    	
 
    	
4.10
    
	
 
    	
“Authentication Agent”
    	
 
    	
2.02
    
	
 
    	
“Authentication
    	
 
    	
2.02
    
	
 
    	
“Authorized Agent”
    	
 
    	
13.05
    
	
 
    	
“Change of Control Offer”
    	
 
    	
4.14
    
	
 
    	
“Change of Control Payment”
    	
 
    	
4.14
    
	
 
    	
“Change of Control Payment   Date”
    	
 
    	
4.14
    
	
 
    	
“Covenant Defeasance”
    	
 
    	
8.03
    
	
 
    	
“Events of Default”
    	
 
    	
6.01
    
	
 
    	
“Excess Proceeds”
    	
 
    	
4.10
    

 

32

 

	
 
    	
“incur”
    	
 
    	
4.09
    
	
 
    	
“Legal Defeasance”
    	
 
    	
8.02
    
	
 
    	
“Offer Amount”
    	
 
    	
3.12
    
	
 
    	
“Offer Period”
    	
 
    	
3.12
    
	
 
    	
“Paying Agent”
    	
 
    	
2.03
    
	
 
    	
“Payment Default”
    	
 
    	
6.01
    
	
 
    	
“Permitted Debt”
    	
 
    	
4.09
    
	
 
    	
“Principal Paying Agent”
    	
 
    	
2.03
    
	
 
    	
“Purchase Date”
    	
 
    	
3.12
    
	
 
    	
“Register”
    	
 
    	
2.03
    
	
 
    	
“Registrar”
    	
 
    	
2.03
    
	
 
    	
“Restricted Payments”
    	
 
    	
4.07
    
	
 
    	
“Suspension Debt”
    	
 
    	
4.12
    
	
 
    	
“Suspension Period”
    	
 
    	
4.21
    
	
 
    	
“Tax Jurisdiction”
    	
 
    	
4.17
    
	
 
    	
“Tax Redemption Date”
    	
 
    	
3.08
    
	
 
    	
“Transfer Agent”
    	
 
    	
2.03
    

 

Section 1.03                             [Reserved].

 

Section 1.04                             Rules of Construction.

 

Unless the context otherwise requires:

 

(a)                                 a term has the meaning assigned to it;

 

(b)                                 an accounting term not otherwise defined has the meaning assigned to it in accordance with IFRS;

 

(c)                                  “or” is not exclusive;

 

(d)                                 words in the singular include the plural, and in the plural include the singular;

 

(e)                                  provisions apply to successive events and transactions;

 

(f)                                   references to sections of or rules under the U.S. Securities Act shall be deemed to include substitute, replacement of successor sections or rules adopted by the Commission from time to time;

 

(g)                                  all references to the principal, premium, interest or any other amount payable pursuant to this Indenture shall be deemed also to refer to any Additional Amounts which may be payable hereunder in respect of payments of principal, premium, interest and any other amounts payable pursuant to this Indenture or any undertakings given in addition thereto or in substitution therefor pursuant to this Indenture and express reference to the payment of Additional Amounts in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express reference is not made;

 

(h)                                 except as otherwise provided, whenever an amount is denominated in euro, it shall be deemed to include the Euro Equivalent amounts denominated in other currencies, and, whenever an amount is denominated in dollars, it shall be deemed to include the Dollar Equivalent amounts denominated in other currencies; and

 

(i)                                     unsecured or unguaranteed Indebtedness shall not be deemed to be subordinate or junior to secured Indebtedness or guaranteed Indebtedness merely by virtue of its nature as unsecured or unguaranteed Indebtedness.

 

33

 

ARTICLE 2

THE NOTES

 

Section 2.01                             Form and Dating.

 

(a)                                 General.

 

The Notes and the Trustee’s certificates of authentication will be substantially in the form of Exhibit A  hereto.  The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage and as provided herein.  The Issuer shall approve the form of the Notes and any notation, legend or endorsement thereon.  Each Note will be dated the date of its authentication.  The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Indenture and the Issuer, the Guarantors, the Trustee and the Security Agent, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.  However, to the extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling.

 

(b)                                 Global Notes.

 

Notes issued in global form will be substantially in the form of Exhibit A hereto (including the Global Note Legend thereon and a “Schedule of Exchanges of Interests in the Global Note” substantially in the form of Schedule A attached thereto).  Each Global Note will represent such of the outstanding Notes as will be specified therein and each shall provide that it represents the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions and purchases and cancellations.  Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06 hereof.

 

(c)                                  144A Global Notes and Regulation S Global Notes.

 

Notes sold within the United States to QIBs pursuant to Rule 144A under the U.S. Securities Act shall be issued initially in the form of a 144A Global Note, which shall be deposited with the Custodian for DTC and registered in the name of Cede & Co., the nominee of DTC, duly executed by the Issuer and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the 144A Global Note may from time to time be increased or decreased by adjustments made on Schedule A to each such Global Note, as hereinafter provided.

 

Notes offered and sold in reliance on Regulation S shall be issued initially in the form of a Regulation S Global Note, which shall be deposited with the Custodian for DTC and registered in the name of Cede & Co., the nominee of DTC, duly executed by the Issuer and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the Regulation S Global Note may from time to time be increased or decreased by adjustments made on Schedule A to each such Global Note, as hereinafter provided.

 

(d)                                 Definitive Registered Notes.

 

Definitive Registered Notes issued upon transfer of a Book-Entry Interest or a Definitive Registered Note, or in exchange for a Book-Entry Interest or a Definitive Registered Note, shall be issued in accordance with this Indenture.

 

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Notes issued in definitive registered form will be substantially in the form of Exhibit A hereto (excluding the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” in the form of Schedule A attached thereto).

 

(e)                                  Book-Entry Provisions.

 

The Applicable Procedures shall be applicable to Book-Entry Interests in the Global Notes that are held by Participants through DTC.

 

(f)                                   Denomination.

 

The Notes shall be in denominations of $200,000 and integral multiples of $1,000 above $200,000.

 

Section 2.02                             Execution and Authentication.

 

(a)                                 Two members of the Issuer’s Board of Directors shall sign the Notes for the Issuer by manual or facsimile signature.

 

(b)                                 If a member of the Issuer’s Board of Directors whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note shall nevertheless be valid.

 

(c)                                  A Note shall not be valid until authenticated by the manual or facsimile signature of the authorized signatory of the Trustee.  The signature shall be conclusive evidence that the Note has been authenticated under this Indenture.  Notwithstanding the foregoing, if any Note shall have been authenticated and delivered hereunder but never issued and sold by the Issuer, the Issuer may deliver such Note to the Trustee for cancellation as provided for in Section 2.10 hereof.

 

(d)                                 The Trustee will, upon receipt of a written order of the Issuer signed by an authorized representative (an “Authentication Order”), authenticate or cause the Authentication Agent to authenticate the Notes for original issue that may be validly issued under this Indenture, including any Additional Notes.  The aggregate principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of Notes authorized for issuance by the Issuer pursuant to one or more Authentication Orders, except as provided in Section 2.07 hereof.  The Trustee may appoint one or more authentication agents (the “Authentication Agent”) acceptable to the Issuer to authenticate Notes.  Such an agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.

 

Section 2.03                             Paying Agent, Registrars and Transfer Agents.

 

The Issuer will maintain one or more paying agents (each, a “Paying Agent”) for the Notes in each of (i) the City of London, (ii) the Borough of Manhattan, City of New York (the “Principal Paying Agent”), and (iii) Luxembourg, for so long as the Notes are listed on the Official List of the Luxembourg Stock Exchange and admitted for trading on the Euro MTF and the rules of the Luxembourg Stock Exchange so require.  The Issuer will ensure that it maintains a Paying Agent in a member state of the European Union that will not be obliged to withhold or deduct tax pursuant to the European Union Directive 2003/48/EC or any other directive implementing the conclusions of the ECOFIN Council meeting of 26 and 27 November 2000 on the taxation of savings income, or any law implementing, or complying with or introduced in order to conform to, such directive.  The initial Paying Agents will be The Bank of New York Mellon in London and New York and The Bank of New York Mellon (Luxembourg) S.A. in Luxembourg.

 

The Issuer will also maintain one or more registrars (each, a “Registrar”) with offices in each of (i) the City of London, (ii) the Borough of Manhattan, City of New York, and (iii) Luxembourg, for so long as the Notes are listed on the Official List of the Luxembourg Stock Exchange and

 

35

 

admitted for trading on the Euro MTF and the rules of the Luxembourg Stock Exchange so require.  The Issuer will also maintain a transfer agent (each, a “Transfer Agent”) in each of the City of London, the Borough of Manhattan, City of New York and Luxembourg.  The initial Registrar will be The Bank of New York Mellon in London and New York and The Bank of New York Mellon (Luxembourg) S.A. in Luxembourg.  The initial Transfer Agent will be The Bank of New York Mellon.  The Registrar and the Transfer Agent in New York and the Transfer Agent in Luxembourg will maintain a register reflecting ownership of Definitive Registered Notes (as defined herein) outstanding from time to time and will make payments on and facilitate transfer of Definitive Registered Notes (as defined herein) on behalf of the Issuer.  The Registrar and/or the Transfer Agent (as the case may be) will promptly inform the Issuer of any changes to the Register.  In the case of discrepancy between the Register and the register kept by, and at the registered office of, the Issuer, the registrations in the register held by, and at the registered office of, the Issuer shall prevail for Luxembourg law purposes.  Each Transfer Agent shall perform the functions of a transfer agent.

 

Upon notice to the Trustee, the Issuer may change any Paying Agent, Registrar or Transfer Agent; provided, however, that in no event may the Issuer appoint a Principal Paying Agent in any member state of the European Union where the Principal Paying Agent would be obliged to withhold or deduct tax in connection with any payment made by it in relation to the Notes unless the Principal Paying Agent would be so obliged if it were located in all other member states.  For so long as the Notes are listed on the Official List of the Luxembourg Stock Exchange and admitted for trading on the Euro MTF and the rules of the Luxembourg Stock Exchange so require, the Issuer will publish a notice of any change of Paying Agent, Registrar or Transfer Agent in a newspaper having a general circulation in Luxembourg or, to the extent and in the manner permitted by such rules, post such notice on the official website of the Luxembourg Stock Exchange in accordance with Section 13.01.

 

Section 2.04                             Paying Agent to Hold Money.

 

Each Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal of, interest, premium and Additional Amounts, if any, on the Notes, and shall notify the Trustee of any Default by the Issuer in making any such payment.  While any such Default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.  The Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying Agent (if other than the Issuer, the Parent or a Subsidiary) shall have no further liability for the money.  Upon any insolvency, bankruptcy or reorganization proceedings relating to the Issuer (including, without limitation, its bankruptcy, voluntary or judicial liquidation, composition with creditors, reprieve from payment, controlled management, fraudulent conveyance, general settlement with creditors, reorganization or similar laws affecting the rights of creditors generally), the Trustee shall serve as Paying Agent for the Notes.

 

Section 2.05                             Holder Lists.

 

The Registrar shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of all Holders.  If the Trustee or the Principal Paying Agent is not the Registrar, the Issuer shall furnish or cause the Registrar to furnish, to the Trustee and each Paying Agent at least seven Business Days before each interest payment date and at such other times as the Trustee or the Principal Paying Agent may request in writing, a list of the names and addresses of the Holders of Notes in such form and as of such date as the Trustee or the Principal Paying Agent may reasonably require.

 

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Section 2.06                             Transfer and Exchange.

 

(a)                                 Transfer and Exchange of Global Notes.

 

A Global Note may not be transferred except as a whole by a Depositary to a Custodian or a nominee of such Custodian, by a Custodian or a nominee of such Custodian to such Depositary or to another nominee or Custodian of such Depositary, or by such Custodian or Depositary or any such nominee to a successor Depositary or Custodian or a nominee thereof.

 

All Global Notes will be exchanged by the Issuer for Definitive Registered Notes:

 

(i)                                     if DTC notifies the Issuer that it is unwilling or unable to continue to act as Depositary and a successor Depositary is not appointed by the Issuer within 120 days;

 

(ii)                                  in whole, but not in part, if the Issuer or DTC so request following a Default under this Indenture; or

 

(iii)                               if the holder of a Book-Entry Interest requests such exchange in writing delivered through DTC following a Default by the Issuer under this Indenture and enforcement action is being taken under this Indenture.

 

Upon the occurrence of any of the preceding events in clauses (i) through (iii) above, the Issuer shall issue or cause to be issued Definitive Registered Notes in such names as the relevant Depositary shall instruct the Trustee.

 

Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.09 hereof.  A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a).  Book-Entry Interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b) or (c) below.

 

(b)                                 General Provisions Applicable to Transfer and Exchange of Book-Entry Interests in the Global Notes.

 

The transfer and exchange of Book-Entry Interests shall be effected through the relevant Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures.

 

In connection with all transfers and exchanges of Book-Entry Interests (other than transfers of Book-Entry Interests in connection with which the transferor takes delivery thereof in the form of a Book-Entry Interest in the same Global Note), the Trustee must receive:  (i) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to debit from the transferor a Book-Entry Interest in an amount equal to the Book-Entry Interest to be transferred or exchanged; (ii) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a Book-Entry Interest in another Global Note in an amount equal to the Book-Entry Interest to be transferred or exchanged; and (iii) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited or debited with such increase or decrease, if applicable.

 

In connection with a transfer or exchange of a Book-Entry Interest for a Definitive Registered Note, the Trustee and the Registrar must receive:  (i) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to debit from the transferor a Book-Entry Interest in an amount equal to the Book-Entry Interest to be transferred or exchanged; (ii) a written order from a Participant directing the Registrar to cause to be issued a Definitive Registered Note in an amount equal to the Book-Entry Interest to be transferred or exchanged; and (iii) instructions containing information regarding the Person in whose

 

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name such Definitive Registered Note shall be registered to effect the transfer or exchange referred to above.

 

In connection with any transfer or exchange of Definitive Registered Notes, the Holder of such Notes shall present or surrender to the Registrar the Definitive Registered Notes duly endorsed or accompanied by a written instruction of transfer in a form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing.  In addition, in connection with a transfer or exchange of a Definitive Registered Note for a Book-Entry Interest, the Trustee must receive a written order directing the Depositary to credit the account of the transferee in an amount equal to the Book-Entry Interest to be transferred or exchanged.

 

Upon satisfaction of all of the requirements for transfer or exchange of Book-Entry Interests in Global Notes contained in this Indenture, the Trustee or the Registrar, as specified in this Section 2.06, shall endorse the relevant Global Note(s) with any increase or decrease and instruct the Depositary to reflect such increase or decrease in its systems.

 

Transfers of Book-Entry Interests shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the U.S. Securities Act.  Transfers and exchanges of Book-Entry Interests for Book-Entry Interests also shall require compliance with either subparagraph (b)(i)or (b)(ii) below, as applicable, as well as subparagraph (b)(iii) below, if applicable.

 

(i)                                     Transfer of Book-Entry Interests in the Same Global Note.  Book-Entry Interests in a Global Note may be transferred to Persons who take delivery thereof in the form of a Book-Entry Interest in a Global Note, in accordance with the transfer restrictions set forth in the Private Placement Legend; provided, however, that prior to the expiration of the Restricted Period, Book-Entry Interests in the Regulation S Global Notes will be limited to persons that have accounts with DTC or persons who hold interests through DTC, and any sale or transfer of such interest to U.S. persons shall not be permitted during the Restricted Period unless such resale or transfer is made pursuant to Rule 144A.  No written orders or instructions shall be required to be delivered to the Trustee to effect the transfers described in this Section 2.06(b)(i).

 

(ii)                                  All Other Transfers and Exchanges of Book-Entry Interests in Global Notes.  A Holder may transfer or exchange a Book-Entry Interest in Global Notes in a transaction not subject to Section 2.06(b)(i) above only if the Trustee receives either:

 

(A)                               both:

 

(1)                                 a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing such Depositary to credit or cause to be credited a Book-Entry Interest in another Global Note in an amount equal to the Book-Entry Interest to be transferred or exchanged; and

 

(2)                                 instructions given by the Depositary in accordance with the Applicable Procedures containing information regarding the Participant’s account to be credited with such increase; or

 

(B)                               both:

 

(1)                                 a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing such Depositary to cause to be issued a Definitive Registered Note in an amount equal to the Book-Entry Interest to be transferred or exchanged; and

 

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(2)                                 instructions given by the Depositary to the Registrar containing information specifying the identity of the Person in whose name such Definitive Registered Note shall be registered to effect the transfer or exchange referred to in (1) above, the principal amount of such securities and the CUSIP, ISIN, Common Code or other similar number identifying the Notes,

 

provided that any such transfer or exchange is made in accordance with the transfer restrictions set forth in the Private Placement Legend.

 

(iii)                               Transfer of Book-Entry Interests to Another Global Note.  A Book-Entry Interest in any Global Note may be transferred to a Person who takes delivery thereof in the form of a Book-Entry Interest in another Global Note if the transfer complies with the requirements of Section 2.06(b)(ii) above and the Trustee receives the following:

 

(A)                               if the transferee will take delivery in the form of a Book-Entry Interest in a 144A Global Note, then the transferor must deliver either a certificate in the form of Exhibit B  hereto, including the certifications in item (1) thereof; and

 

(B)                               if the transferee will take delivery in the form of a Book-Entry Interest in a Regulation S Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof.

 

(c)                                  Transfer or Exchange of Book-Entry Interests in Global Notes for Definitive Registered Notes.  If any Holder of a Book-Entry Interest in a Global Note proposes to exchange such Book-Entry Interest for a Definitive Registered Note or to transfer such Book-Entry Interest to a Person who takes delivery thereof in the form of a Definitive Registered Note, then, upon receipt by the Trustee and the Registrar of the following documentation:

 

(i)                                     in the case of a transfer on or before the expiration of the Restricted Period by a Holder of a Book-Entry Interest in a Regulation S Global Note, the Trustee shall have received a certificate to the effect set forth in Exhibit B hereto, including the certifications in either item (1) or item (2) thereof;

 

(ii)                                  in the case of a transfer after the expiration of the Restricted Period by a Holder of a Book-Entry Interest in a Regulation S Global Note, the transfer complies with Section 2.06(b) above;

 

(iii)                               in the case of a transfer by a Holder of a Book-Entry Interest in a Rule 144A Global Note to a QIB in reliance on Rule 144A, the Trustee shall have received a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

 

(iv)                              in the case of a transfer by a Holder of a Book-Entry Interest in a Rule 144A Global Note in reliance on Regulation S, the Trustee shall have received a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; or

 

(v)                                 in the case of a transfer by a Holder of a Book-Entry Interest in a Rule 144A Global Note in reliance on Rule 144, the Trustee shall have received a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3) thereof,

 

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(l) below, and the Issuer shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Registered Note in the appropriate principal amount.  Any Definitive Registered Note issued in exchange for a Book-Entry Interest in a Global Note pursuant to this Section 2.06(c) shall be registered by the Registrar in

 

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such name or names and in such authorized denomination or denominations as the Holder of such Book-Entry Interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant.  The Registrar shall deliver such Definitive Registered Notes to the Persons in whose names such Notes are so registered.  Any Definitive Registered Note issued in exchange for a Book-Entry Interest in a Global Note pursuant to this Section 2.06(c) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained therein.

 

(d)                                 Transfer and Exchange of Definitive Registered Notes for Book-Entry Interests in the Global Notes.  If any Holder of a Definitive Registered Note proposes to exchange such Note for a Book-Entry Interest in a Global Note or to transfer such Definitive Registered Notes to a Person who takes delivery thereof in the form of a Book-Entry Interest in a Global Note, then, upon receipt by the Trustee and the Registrar of the following documentation:

 

(i)                                     if the Holder of such Definitive Registered Note proposes to exchange such Note for a Book-Entry Interest in a Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2) thereof;

 

(ii)                                  if such Definitive Registered Note is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

 

(iii)                               if such Definitive Registered Note is being transferred in reliance on Regulation S or Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) or (3) thereof, as applicable;

 

(iv)                              if such Definitive Registered Note is being transferred to the Issuer or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3) thereof; and

 

the Trustee will cancel the Definitive Registered Note, and the Trustee will increase or cause to be increased the aggregate principal amount of, in the case of clause (i) above, the appropriate Global Note, in the case of clause (ii) above, the appropriate 144A Global Note, in the case of clause (iii) above, the appropriate Global Note, and in the case of clause (iv) above, the appropriate Global Note.

 

(e)                                  Transfer and Exchange of Definitive Registered Notes for Definitive Registered Notes.

 

Upon request by a Holder of Definitive Registered Notes, and such Holder’s compliance with the provisions of this Section 2.06(e), the Transfer Agent or the Registrar will register the transfer or exchange of Definitive Registered Notes of which registration the Issuer will be informed of by the Transfer Agent or the Registrar (as the case may be).  Prior to such registration of transfer or exchange, the requesting Holder must present or surrender to the Transfer Agent or the Registrar the Definitive Registered Notes duly endorsed and accompanied by a written instruction of transfer in a form satisfactory to the Transfer Agent or the Registrar duly executed by such Holder or its attorney, duly authorized to execute the same in writing.  In the event that the Holder of such Definitive Registered Notes does not transfer the entire principal amount of Notes represented by any such Definitive Registered Note, the Transfer Agent or the Registrar will cancel or cause to be cancelled such Definitive Registered Note and the Issuer (who has been informed of such cancellation) shall execute and the Trustee or the Authentication Agent shall authenticate and deliver to the requesting Holder and any transferee Definitive Registered Notes in the appropriate principal amounts.  In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e).

 

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Any Definitive Registered Note may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Definitive Registered Note if the Registrar receives the following:

 

(i)                                     if the transfer will be made pursuant to Rule 144A, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; and

 

(ii)                                  if the transfer will be made in reliance on Regulation S, then the transferor must deliver a certificate in the form of Exhibit B  hereto, including the certifications in item (2) thereof.

 

(f)                                   Legends.  The following legends shall appear on the face of all Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture.

 

(i)                                     Private Placement Legend:  Each Global Note and each Definitive Registered Note (and all Notes issued in exchange therefor or in substitution thereof) shall bear the applicable legend in substantially the following form:

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER FOR THE BENEFIT OF THE ISSUER AND THE GUARANTORS AND ANY OF THEIR SUCCESSORS IN INTEREST (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION, (2) AGREES THAT IT WILL NOT PRIOR TO THE DATE WHICH IS [IN THE CASE OF RULE 144A NOTES: ONE YEAR] [IN THE CASE OF REGULATION S NOTES: 40 DAYS] (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY [RULE 144] [REGULATION S] UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER) AFTER THE LATER OF THE DATE OF ORIGINAL ISSUE AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THE NOTES (OR ANY PREDECESSOR THERETO) (THE “RESALE RESTRICTION TERMINATION DATE”) RESELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE OR A BENEFICIAL INTEREST IN THIS NOTE EXCEPT (A) TO THE ISSUER, THE GUARANTORS OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON THAT THE SELLER, AND ANY PERSON ACTING ON ITS BEHALF, REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION COMPLYING WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF SUCH CASES IN COMPLIANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED THAT THE ISSUER, THE TRUSTEE AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION

 

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COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S UNDER THE US SECURITIES ACT OR PURSUANT TO CLAUSE (D) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THAT AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE ISSUER, THE TRUSTEE AND THE REGISTRAR IS COMPLETED AND DELIVERED BY THE TRANSFEROR. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTIONS. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION”, “UNITED STATES”, AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

 

(ii)                                  Global Note Legend.  Each Global Note shall bear a legend in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE TRANSFERRED OR EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE AND (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.10 OF THE INDENTURE.”

 

(g)          Exchanges of Book-Entry Interests in Global Notes for Restricted Definitive Notes.  A Holder of a Book-Entry Interest in a Global Note may exchange such Book-Entry Interest for a Restricted Definitive Note if the exchange or transfer complies with the requirements of Section 2.06(b) above and the Trustee receives a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1) thereof.

 

Upon receipt of such certificates and the orders and instructions required by Section 2.06(b), above the Trustee shall (i) instruct the Custodian to deliver, or cause to be delivered, the relevant Global Note to the Trustee for endorsement and upon receipt thereof, decrease Schedule A to the relevant Global Note by the principal amount of such exchange; (ii) thereafter, return the Global Note to the Custodian together with all information regarding the Participant accounts to be debited in connection with such exchange; and (iii) deliver to the Registrar instructions received by it that contain information regarding the Person in whose name Definitive Registered Notes shall be registered to effect such exchange.  The Registrar shall cause all Definitive Registered Notes issued in exchange for a Book-Entry Interest in a Global Note pursuant to this Section 2.06(g) to bear the Private Placement Legend.

 

The Issuer shall issue and, upon receipt of an Authentication Order from the Issuer in accordance with Section 2.02 hereof, the Authentication Agent shall authenticate, one or more Definitive Registered Notes in an aggregate principal amount equal to the aggregate principal amount of Book-Entry Interests so exchanged and in the names set forth in the instructions received by the Registrar.

 

(h)                                 Exchanges of Book-Entry Interests in Global Notes for Unrestricted Definitive Notes.  To the extent permitted by the Depositary, a holder of a Book-Entry Interest in a Global Note may

 

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exchange such Book-Entry Interest for an Unrestricted Definitive Note only if the Trustee receives a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1) thereof.

 

Upon receipt of such certificates and the orders and instructions required by Section 2.06(b), the Trustee shall (i) instruct the Custodian to deliver, or cause to be delivered, the relevant Global Note to the Trustee for endorsement and upon receipt thereof, decrease Schedule A to the relevant Global Note by the principal amount of such exchange; (ii) thereafter, return the Global Note to the Custodian together with all information regarding the Participant accounts to be debited in connection with such exchange; and (iii) deliver to the Registrar instructions received by it that contain information regarding the Person in whose name Definitive Registered Notes shall be registered to effect such transfer.

 

The Issuer shall issue and, upon receipt of an Authentication Order from the Issuer in accordance with Section 2.02 hereof, the Authentication Agent shall authenticate, one or more Definitive Registered Notes in an aggregate principal amount equal to the aggregate principal amount of Book-Entry Interests so exchanged and in the names set forth in the instructions received by the Registrar.  Any Definitive Registered Note issued in exchange for a Book-Entry Interest pursuant to this Section 2.06(h) shall not bear the Private Placement Legend.

 

(i)                                     Exchanges of Restricted Definitive Registered Notes for Book-Entry Interests in Global Notes.  Any Holder of a Restricted Definitive Note may exchange such Note for a Book-Entry Interest in a Global Note if such exchange complies with Section 2.06(b) above, such exchange takes place after the expiration of the Restricted Period and the Registrar receives a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2) thereof.

 

Upon satisfaction of the foregoing conditions, the Registrar shall (i) cancel such Note pursuant to Section 2.10 hereof; (ii) record such exchange on the Register; (iii) instruct the Custodian to deliver the applicable Global Note; (iv) endorse Schedule A to such Global Note to reflect the increase in principal amount resulting from such exchange; and (v) thereafter, return the Global Note to the Custodian together with all information regarding the Participant accounts to be credited in connection with such exchange.

 

(j)            Transfer of Restricted Definitive Notes for Definitive Registered Notes.

 

Any Holder of a Restricted Definitive Note may transfer such Note to a Person who takes delivery thereof in the form of Definitive Registered Notes if the transfer complies with Section 2.06(b) above and the Registrar a certificate to the effect set forth in Exhibit B hereto, including the certifications in either item (1), (2) or (3) thereof; provided that, in the case of a transfer after the expiration of the Restricted Period by a Holder of a Regulation S Definitive Note, no additional documentation is required.

 

Upon the receipt of any Definitive Registered Note, the Registrar shall cancel such Note pursuant to Section 2.10 hereof and complete and deliver to the Issuer the applicable Definitive Registered Note.  The Issuer shall execute and the Authentication Agent shall authenticate and deliver such Definitive Registered Note to such Person(s) as the Holder of the surrendered Definitive Registered Note shall designate.

 

(k)                                 Transfer of Unrestricted Definitive Notes.  Any Holder of an Unrestricted Definitive Note may transfer such Note to a Person who takes delivery thereof in the form of Definitive Registered Notes if the transfer complies with Section 2.06(b) above.

 

(l)                                     Cancellation and/or Adjustment of Global Notes.  At such time as all Book-Entry Interests in a particular Global Note have been exchanged for Definitive Registered Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each

 

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such Global Note shall be returned to or retained and cancelled by the Trustee in accordance with Section 2.10 hereof.  At any time prior to such cancellation, if any Book-Entry Interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a Book-Entry Interest in another Global Note or for Definitive Registered Notes, the principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or the Custodian, at the direction of the Trustee, to reflect such reduction; and if the Book-Entry Interests is being exchanged for or transferred to a Person who will take delivery thereof in the form of a Book-Entry Interests in another Global Note, such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Custodian at the direction of the Trustee to reflect such increase.

 

(m)                             General Provisions Relating to Transfers and Exchanges.

 

(i)                                     To permit registrations of transfers and exchanges, the Issuer shall execute and the Trustee shall authenticate Global Notes and Definitive Registered Notes upon receipt of an Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request.

 

(ii)                                  No service charge shall be made by the Issuer or the Registrar to a Holder of a Book-Entry Interest in a Global Note, a Holder of a Global Note or a Holder of a Definitive Registered Note for any registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any stamp duty, stamp duty reserve, documentary or other similar tax or governmental charge that may be imposed in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.09, 3.06, 4.10, Section 4.14 and 9.04 hereof).

 

(iii)                               No Transfer Agent or Registrar shall be required to register the transfer of or exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part.

 

(iv)                              All Global Notes and Definitive Registered Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Registered Notes shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Registered Notes surrendered upon such registration of transfer or exchange.

 

(v)                                 The Issuer shall not be required to register the transfer into its register kept at its registered office of any Definitive Registered Notes:  (A) for a period of 15 calendar days prior to any date fixed for the redemption of the Notes under Section 3.03 hereof; (B) for a period of 15 calendar days immediately prior to the date fixed for selection of Notes to be redeemed in part; (C) for a period of 15 calendar days prior to the record date with respect to any interest payment date; or (D) which the Holder has tendered (and not withdrawn) for repurchase in connection with a Change of Control Offer or an Asset Sale Offer.  Any such transfer will be made without charge to the Holder, other than any taxes, duties and governmental charges payable in connection with such transfer.

 

(vi)                              The Trustee, any Agent and the Issuer may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of, interest, and premium and Additional Amounts, if any, on such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuer shall be affected by notice to the contrary.

 

(vii)                           All certifications, certificates and Opinions of Counsel required to be submitted to the Issuer, the Trustee or the Registrar pursuant to this Section 2.06 to effect a

 

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registration of transfer or exchange may be submitted initially by electronic mail or facsimile with originals to be delivered promptly thereafter to the Trustee.

 

Section 2.07                             Replacement Notes.

 

(a)                                 If any mutilated Note is surrendered to the Registrar, the Trustee or the Issuer and the Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, the Issuer shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if the Trustee’s requirements are met.  If required by the Trustee or the Issuer, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Issuer to protect the Issuer, the Trustee, any Agent and any authentication agent from any loss that any of them may suffer if a Note is replaced.  The Issuer may charge the Holder for its expenses in replacing a Note, including reasonable fees and expenses of counsel.  In the event of any such mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due and payable, the Issuer in its discretion may pay such Note instead of issuing a new Note in replacement thereof.

 

(b)                                 Every replacement Note is an additional obligation of the Issuer and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder.

 

(c)                                  The provisions of this Section 2.07 are exclusive and preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or wrongfully taken Notes.

 

Section 2.08                             Outstanding Notes.

 

The Notes outstanding at any time shall be the Notes that fall within the definition of “outstanding” contained in Section 1.01 hereof.

 

Section 2.09                             Temporary Notes.

 

(a)                                 Until certificates representing Notes are ready for delivery, the Issuer may prepare and the Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes.  Temporary Notes shall be substantially in the form of definitive Notes but may have variations that the Issuer considers appropriate for temporary Notes and as such shall be reasonably acceptable to the Trustee.  Without unreasonable delay, the Issuer shall prepare and the Trustee shall authenticate definitive Notes in exchange for temporary Notes.

 

(b)                                 Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

 

Section 2.10                             Cancellation.

 

The Issuer at any time may deliver Notes to the Trustee for cancellation.  The Registrar, each Paying Agent and any Transfer Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment.  The Trustee or, at the direction of the Trustee, the Registrar or the Paying Agent (other than the Issuer or a Subsidiary) and no one else shall cancel Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall destroy canceled Notes (subject to the record retention requirement of the U.S. Exchange Act).  Certification of the destruction of all canceled Notes shall be delivered to the Issuer following a written request from the Issuer.  The Issuer may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation.  The Issuer undertakes to promptly inform the Luxembourg Stock Exchange (as long as the Notes are admitted to trading on the Euro MTF and listed on the Official List of the Luxembourg Stock Exchange) on any such cancellation.

 

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Section 2.11                             Defaulted Interest.

 

If the Issuer defaults in a payment of interest on the Notes, it shall pay the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, which special record date shall be the fifteenth day next preceding the date fixed by the Issuer, in each case at the rate provided in the Notes and in Section 4.01 hereof.  The Issuer shall notify the Trustee as soon as practicable in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment.  The Issuer shall fix or cause to be fixed each such special record date and payment date, provided that no such special record date shall be less than 10 calendar days prior to the related payment date for such defaulted interest.  At least 15 calendar days before the special record date, the Issuer (or, upon the written request of the Issuer, the Trustee in the name and at the expense of the Issuer) shall deliver to the Holders in accordance with Section 13.01 hereof a notice that states the special record date, the related payment date and the amount of such interest to be paid.  The Issuer undertakes to promptly inform the Luxembourg Stock Exchange (as long as the Notes are admitted to trading on the Euro MTF and listed on the Official List of the Luxembourg Stock Exchange) of any such special record date.

 

Section 2.12                             Further Issues.

 

(a)                                 The Notes may be issued in one or more series.  All Notes of any one series shall be substantially identical except as to denomination.

 

(b)                                 Subject to compliance with Section 4.09 hereof, the Issuer may from time to time issue further notes (the “Additional Notes”) as part of a new or existing series of Notes ranking pari passu with such Notes and with substantially the same terms as to status, redemption and otherwise as such Notes (save for payment of interest accruing prior to the issue date of such Additional Notes or for the first payment of interest following the issue date of such Additional Notes).  The Additional Notes will be consolidated and treated as a single class (following the expiry of any relevant distribution compliance period) for all purposes under this Indenture, including, without limitation, waivers, amendments, redemptions, and offers to purchase, except as otherwise specified in respect to each series of Notes.

 

(c)                                  Whenever it is proposed to create and issue any Additional Notes, the Issuer shall give to the Trustee not less than 3 Business Days’ notice in writing of its intention so to do stating the amount of Additional Notes proposed to be created and issued.

 

Section 2.13                             CUSIP, ISIN or Common Code Number.

 

The Issuer in issuing the Notes may use a “CUSIP”, “ISIN” or “Common Code” number and, if so, such CUSIP, ISIN or Common Code number shall be included in notices of redemption or exchange as a convenience to Holders; provided, however, that any such notice may state that no representation is made as to the correctness or accuracy of the CUSIP, ISIN or Common Code number printed in the notice or on the Notes, and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption or exchange shall not be affected by any defect in or omission of such numbers.

 

The Issuer will promptly notify the Trustee of any change in the CUSIP, ISIN or Common Code number.

 

Section 2.14                             Deposit of Moneys

 

No later than 10:00 a.m. (New York time), on the Business Day prior to each Interest Payment Date, the maturity date of the Notes and each payment date relating to an Asset Sale Offer or a Change of Control Offer or a Tax Redemption Date, and on the Business Day immediately

 

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following any acceleration of the Notes pursuant to Section 6.02 hereof, the Issuer shall deposit with the Paying Agent, in immediately available funds, money in U.S. Dollars sufficient to make cash payments, if any, due on such day or date, as the case may be.  Subject to receipt of such funds as provided by this Section 2.14 by the designated Paying Agent, such Paying Agent shall remit such payment in a timely manner to the Holders on such day or date, as the case may be, to the Persons and in the manner set forth in paragraph 2 of the Notes.  The Issuer shall promptly notify the Trustee and the Paying Agent of its failure to so act.

 

ARTICLE 3

REDEMPTION AND PREPAYMENT

 

Section 3.01                             Notices to Trustee.

 

If the Issuer elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it shall deliver to the Trustee in accordance with Section 13.01 hereof, at least 30 days but not more than 60 days before a redemption date, an Officer’s Certificate setting forth:

 

(i)                                     the Section of this Indenture pursuant to which the redemption shall occur;

 

(ii)                                  the redemption date and the record date;

 

(iii)                               the principal amount of Notes to be redeemed;

 

(iv)                              the redemption price; and

 

(v)                                 the CUSIP, ISIN or Common Code numbers of the Notes, as applicable.

 

Section 3.02                             Selection of Notes to Be Redeemed.

 

If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any time, the Trustee will select the Notes for redemption or purchase on a pro rata basis or, in the case of Notes issued in global form, based on a method that most nearly approximates a pro rata selection as the Trustee in its sole discretion deems fair and appropriate, unless otherwise required by law or applicable stock exchange requirements.  The Trustee will not be liable for selections made by it in accordance with this Section 3.02.

 

No Notes of $200,000 or less shall be purchased or redeemed in part.

 

Notices of purchase or redemption shall be given to each Holder pursuant to Sections 3.03 and 13.01.

 

If any Note is to be redeemed in part only, the notice of redemption that relates to that Note will state the portion of the principal amount of that Note that is to be redeemed.  A new Note in principal amount equal to the unredeemed portion of the original Note will be issued in the name of the Holder of Notes upon cancellation of the original Note.  Notes called for redemption become due on the date fixed for redemption.  On and after the redemption date, interest ceases to accrue on Notes or portions of Notes called for redemption.

 

In relation to Definitive Registered Notes, a new Note in principal amount equal to the unpurchased or unredeemed portion of any Note purchased or redeemed in part will be issued in the name of the Holder thereof upon cancellation of the original Note.  On or after any purchase or redemption date, unless the Issuer defaults in payment of the purchase or redemption price, interest shall cease to accrue on Notes or portions thereof tendered for purchase or called for redemption.

 

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Section 3.03                             Notice of Redemption.

 

(a)                                 At least 30 days but not more than 60 days before a redemption date, the Issuer shall deliver, pursuant to Section 13.01 hereof, a notice of redemption to each Holder whose Notes are to be redeemed, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or the satisfaction and discharge of this Indenture pursuant to Articles 8 or 12 hereof.  So long as any Notes are admitted to trading on the Euro MTF and listed on the Official List of the Luxembourg Stock Exchange and the rules and regulations of the Luxembourg Stock Exchange so require, any such notice to the Holders of the relevant Notes shall also be published in a newspaper having a general circulation in Luxembourg (which is expected to be d’Wort) or, to the extent and in the manner permitted by such rules, posted on the official website of the Luxembourg Stock Exchange and, in connection with any redemption, the Issuer will forthwith notify the Luxembourg Stock Exchange of any change in the principal amount of Notes outstanding.  Notices of redemption may be conditional.

 

(b)                                 The notice shall identify the Notes to be redeemed and corresponding CUSIP, ISIN or Common Code numbers, as applicable, and shall state:

 

(i)                                     the redemption date and the record date;

 

(ii)                                  the redemption price and the amount of accrued interest, if any, and Additional Amounts, if any to be paid;

 

(iii)                               if any Global Note is being redeemed in part, the portion of the principal amount of such Global Note to be redeemed and that, after the redemption date upon surrender of such Global Note, the principal amount thereof will be decreased by the portion thereof redeemed pursuant thereto;

 

(iv)                              if any Definitive Registered Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed, and that, after the redemption date, upon surrender of such Note, a new Definitive Registered Note or Definitive Registered Notes in principal amount equal to the unredeemed portion thereof shall be issued in the name of the Holder thereof upon cancellation of the Definitive Registered Note;

 

(v)                                 the name and address of the Paying Agent(s) to which the Notes are to be surrendered for redemption;

 

(vi)                              that Notes called for redemption must be surrendered to the relevant Paying Agent to collect the redemption price, plus accrued and unpaid interest, if any, and Additional Amounts, if any;

 

(vii)                           that, unless the Issuer defaults in making such redemption payment, interest, and Additional Amounts, if any, on Notes called for redemption cease to accrue on and after the redemption date;

 

(viii)                        the paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed; and

 

(ix)                              that no representation is made as to the correctness or accuracy of the CUSIP, ISIN or Common Code numbers, if any, listed in such notice or printed on the Notes.

 

(c)                                  At the Issuer’s request, the Trustee shall give the notice of redemption in the Issuer’s name and at its expense in accordance with Section 13.01 hereof; provided, however, that the Issuer shall have delivered to the Trustee, at least 45 days prior to the redemption date, an Officer’s

 

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Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in Section 3.03(b) above.

 

Section 3.04                             Effect of Notice of Redemption.

 

Once notice of redemption is given in accordance with Section 3.03 and Section 13.01, Notes called for redemption become due and payable on the redemption date at the redemption price stated in the notice.  A notice of redemption may be conditional.  On and after a redemption date, interest shall cease to accrue on such Notes or portion of them called for redemption.

 

Section 3.05                             Deposit of Purchase or Redemption Price.

 

(a)                                 No later than 10:00 a.m. (New York time) on the Business Day prior to the purchase or redemption date, the Issuer shall deposit with the Principal Paying Agent (or, if requested by the Trustee, the Trustee) money in U.S. Dollars sufficient to pay the redemption price of, and accrued interest, premium and Additional Amounts (if any) on, all Notes to be redeemed on that date.  The Trustee or Principal Paying Agent shall promptly return to the Issuer any money deposited with the Trustee or Principal Paying Agent, as applicable, by the Issuer in excess of the amounts necessary to pay the redemption or purchase price of, and accrued interest on, all Notes to be purchased or redeemed.

 

(b)                                 If the Issuer complies with the provisions of Section 3.05(a) above, on and after the redemption or purchase date, interest shall cease to accrue on the Notes or the portions of Notes called for redemption or purchase.  If a Note is redeemed or purchased on or after a record date for the payment of interest but on or prior to the related interest payment date, then any accrued and unpaid interest shall be paid to the Person in whose name such Note was registered at the close of business on such record date.  If any Note called for redemption or purchase shall not be so paid upon surrender for redemption or purchase because of the failure of the Issuer to comply with the Section 3.05(a) above, interest shall be paid on the unpaid principal, from the redemption or purchase date until such principal is paid, and to the extent lawful on any interest not so paid, in each case at the rate provided in the Notes and Section 4.01 hereof.

 

Section 3.06                             Notes Redeemed in Part.

 

Upon surrender of a Definitive Registered Note that is redeemed or purchased in part, the Issuer shall issue and, upon the Issuer’s written request, the Trustee shall authenticate for (and in the name of) the Holder at the expense of the Issuer a new Note equal in principal amount to the unredeemed or unpurchased portion of the Note surrendered; provided that any Definitive Registered Note shall be in a minimum principal amount of $200,000 and in integral multiples of $1,000 in excess thereof.

 

Section 3.07                             Optional Redemption.

 

(a)                                 At any time prior to June 15, 2015, the Issuer may on one or more occasions redeem up to 35% of the aggregate principal amount of the Notes issued under this Indenture, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 108.375% of the principal amount of the Notes redeemed, plus accrued and unpaid interest and Additional Amounts, if any, to the date of redemption (subject to the rights of holders of the Notes on the relevant record date to receive interest on the relevant interest payment date), with the net cash proceeds of an Equity Offering; provided that:

 

(i)                                     at least 65% of the aggregate principal amount of the Notes issued under this Indenture (excluding Notes held by the Parent and its Subsidiaries) remain outstanding immediately after the occurrence of such redemption; and

 

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(ii)                                  the redemption occurs within 90 days of the date of the closing of such Equity Offering.

 

(b)                                 At any time prior to June 15, 2015 the Issuer may on one or more occasions redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice delivered to each Holder pursuant to Section 3.03 and Section 13.01 at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the Applicable Premium as of the date of redemption, and accrued and unpaid interest and Additional Amounts, if any, to the date of redemption, subject to the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date.

 

(c)                                  Except pursuant to subsections (a) and (b) of this Section 3.07 and Section 3.08, the Notes will not be redeemable at the Issuer’s option prior to June 15, 2015.  On or after June 15, 2015, the Issuer may on any one or more occasions redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice delivered to each Holder pursuant to Section 3.03 and Section 13.01 at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest and Additional Amounts, if any, on the Notes redeemed, to the applicable date of redemption, if redeemed during the twelve-month period beginning on June 15 of the years indicated below, subject to the rights of holders of Notes on the relevant record date to receive interest on the relevant interest payment date:

 

	
Year
    	
 
    	
Redemption
   Price
    	
 
    
	
2015 
    	
 
    	
106.281
    	
%
    
	
2016 
    	
 
    	
104.188
    	
%
    
	
2017 
    	
 
    	
102.094
    	
%
    
	
2018 and thereafter 
    	
 
    	
100.000
    	
%
    

 

(d)                                 Unless the Issuer defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

 

(e)                                  Any redemption and notice may, in the Issuer’s discretion, be subject to the satisfaction of one or more conditions precedent.

 

Section 3.08                             Redemption for Changes in Taxes.

 

The Issuer may redeem the Notes, in whole but not in part, at its discretion at any time upon giving not less than 30 nor more than 60 days’ prior notice to the Holders of the Notes (which notice will be irrevocable and given in accordance with the procedures described in Section 3.03 and Section 13.01, at a redemption price equal to the principal amount thereof, together with accrued and unpaid interest, if any, to the date fixed by the Issuer for redemption (a “Tax Redemption Date”) and all Additional Amounts (if any) then due and which will become due on the Tax Redemption Date as a result of the redemption or otherwise (subject to the right of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date and Additional Amounts (if any) in respect thereof), if on the next date on which any amount would be payable in respect of the Notes, the Issuer or any Guarantor (including any successor entity) is or would be required to pay Additional Amounts, and the Issuer or Guarantor cannot avoid any such payment obligation by taking reasonable measures available to it, and the requirement arises as a result of:

 

(i)                                     any change in, or amendment to, the laws or treaties (or any regulations, or rulings promulgated thereunder) of the relevant Tax Jurisdiction affecting taxation which change or amendment becomes effective on or after the Issue Date (or, if the relevant Tax Jurisdiction has changed since the Issue Date, the date on which the then current Tax Jurisdiction became the applicable Tax Jurisdiction under this Indenture); or

 

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(ii)                                  any change in, or amendment to, the existing official position or the introduction of an official position regarding the application, administration or interpretation of such laws, treaties, regulations or rulings (including a holding, judgment or order by a court of competent jurisdiction or a change in published practice), which change, amendment, application or interpretation becomes effective on or after the Issue Date (or, if the relevant Tax Jurisdiction has changed since the Issue Date, the date on which the then current Tax Jurisdiction became the applicable Tax Jurisdiction under this Indenture).

 

The Issuer will not give any such notice of redemption earlier than 90 days prior to the earliest date on which the Issuer or Guarantor, as the case may be, would be obligated to make such payment or withholding if a payment in respect of the Notes were then due.  Prior to the publication or, where relevant, mailing of any notice of redemption of the Notes pursuant to the foregoing and in accordance with Section 3.03, the Issuer or Guarantor, as the case may be, will deliver to the Trustee an Opinion of Counsel to the effect that there has been such change or amendment and otherwise in compliance with Section 13.03 which would entitle the Issuer to redeem the Notes hereunder.  In addition, before the Issuer publishes or mails a notice of redemption of the Notes pursuant to the foregoing and in accordance with Section 3.03, the Issuer or Guarantor, as the case may be, will deliver to the Trustee an Officer’s Certificate to the effect that it cannot avoid its obligation to pay Additional Amounts by taking reasonable measures available to it.

 

The Trustee will accept and shall be entitled to rely on such Officer’s Certificate and Opinion of Counsel as sufficient evidence of the existence and satisfaction of the conditions precedent as described above, in which event it will be conclusive and binding on the Holders of the Notes.  For the avoidance of doubt, the implementation of European Council Directive 2003/48/EC or any other directive implementing the conclusions of the ECOFIN Council meeting of 26 and 27 November 2000 on the taxation of savings income or any law implementing or complying with or introduced in order to conform to such directive, will not be a change or amendment for such purposes.

 

Section 3.09                             [Reserved]

 

Section 3.10                             Mandatory Redemption.

 

The Issuer shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes.

 

Section 3.11                             [Reserved]

 

Section 3.12                             Offer to Purchase by Application of Excess Proceeds.

 

(a)                                 In the event that, pursuant to Section 4.10, the Issuer is required or permitted to commence an Asset Sale Offer, it will follow the procedures specified in this Section 3.12.

 

(b)                                 The Issuer (or the Parent on the Issuer’s behalf) may at any time and will within 30 Business Days after the date on which the Excess Proceeds exceed US$25 million commence each Asset Sale Offer by delivering the notice required pursuant to Section 3.12(d).  The Asset Sale Offer shall remain open for a period of 20 Business Days following its commencement except to the extent that a longer period is required by applicable law (the “Offer Period”).  No later than five Business Days after the termination of the Offer Period (the “Purchase Date”), the Issuer shall purchase the principal amount of Notes required to be purchased pursuant to Section 4.10 (the “Offer Amount”) or, if less than the Offer Amount has been tendered, all Notes tendered in response to the Asset Sale Offer.  Payment for any Notes so purchased shall be made in the same manner as interest payments are made.

 

(c)                                  If the Purchase Date is on or after a record date for the payment of interest and on or before the related payment date, any accrued and unpaid interest shall be paid to the Person in whose

 

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name a Note is registered at the close of business on such record date, and no interest shall be payable to Holders who tender Notes pursuant to the Asset Sale Offer.

 

(d)                                 Upon the commencement of an Asset Sale Offer, the Issuer shall deliver a notice to the Trustee and each of the Holders pursuant to Section 13.01.  The notice shall contain instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer.  The Asset Sale Offer shall be made to all Holders.  The notice, which shall govern the terms of the Asset Sale Offer, shall state:

 

(i)                                     that the Asset Sale Offer is being made pursuant to this Section 3.12 and the length of time the Asset Sale Offer shall remain open;

 

(ii)                                  the Offer Amount, the purchase price and the Purchase Date;

 

(iii)                               that any Note not tendered or accepted for payment shall continue to accrue interest;

 

(iv)                              that, unless the Issuer defaults in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer shall cease to accrue interest after the Purchase Date;

 

(v)                                 that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in integral multiples of $1,000 only (provided that Notes of $200,000 or less may only be redeemed in whole and not in part);

 

(vi)                              that Holders electing to have a Note purchased pursuant to any Asset Sale Offer shall be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, or transfer by book-entry transfer through the facilities of the Depositary, to the account of the Issuer, or the Paying Agent specified in the notice at least one Business Day before the Purchase Date;

 

(vii)                           that Holders shall be entitled to withdraw their election if the Issuer, the Depositary or the Paying Agent, as the case may be, receives, not later than the expiration of the Offer Period, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have such Note purchased;

 

(viii)                        that, if the aggregate principal amount of Notes and other pari passu Indebtedness surrendered by Holders exceeds the Offer Amount, the Issuer will select the Notes and other pari passu Indebtedness to be purchased as provided in Section 4.10 (with such adjustments as may be deemed appropriate by the Issuer so that only Notes in denominations of` $1,000, or integral multiples thereof, will be purchased (provided that Notes of $200,000 or less may only be redeemed in whole and not in part)); and

 

(ix)                              that Holders whose Definitive Registered Notes were purchased only in part shall be issued new Definitive Registered Notes equal in principal amount to the unpurchased portion of the Notes.

 

(e)                                  On or before the Purchase Date, the Issuer shall, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and shall deliver to the Trustee an Officer’s Certificate stating that such Notes or portions thereof were accepted for payment by the Issuer in accordance with the terms of this Section 3.12.  The Paying Agent shall promptly (but in any case not later than five days after the Purchase Date) deliver to each tendering Holder in the manner specified in the Notes an amount equal to the

 

52

 

purchase price of the Notes tendered by such Holder and accepted by the Issuer for purchase.  In connection with any purchase of Global Notes pursuant hereto, the Trustee shall endorse such Global Notes to reflect the decrease in principal amount of such Global Note resulting from such purchase.  In connection with any partial purchase of Definitive Registered Notes, the Issuer shall promptly issue a new Definitive Registered Note, and the Trustee, upon written request from the Issuer, shall authenticate and mail or deliver such new Definitive Registered Note to the tendering Holder, in a principal amount equal to any unpurchased portion of the Definitive Registered Note surrendered.  Any Note tendered but not accepted shall be promptly mailed or delivered by the Issuer to the Holder thereof.  The Issuer shall publicly announce and inform the Luxembourg Stock Exchange (for as long as the Notes (if any) are admitted to trading on the Euro MTF and listed on the Official List of the Luxembourg Stock Exchange) of the results of the Asset Sale Offer on the Purchase Date.

 

(f)                                   Other than as specifically provided in this Section 3.12, any purchase pursuant to this Section 3.12 shall be made pursuant to the provisions of Sections 3.01 through 3.06.

 

ARTICLE 4

COVENANTS

 

Section 4.01                             Payment of Notes.

 

No later than 10:00 a.m. (New York time) on the Business Day prior to a payment date, the Issuer shall pay or cause to be paid the principal of, interest, premium and Additional Amounts, if any, on the Notes in the manner provided in the Notes.  Principal, interest, premium and Additional Amounts, if any, shall be considered paid on the date due if the Issuer holds, in an account with the Paying Agent, if other than the Issuer or a Subsidiary thereof, by 10:00 a.m. (New York time) on the Business Day prior to the due date, money deposited by the Issuer in immediately available funds and designated for and sufficient to pay all principal, interest, premium and Additional Amounts, if any, then due.

 

Principal of, interest, premium and Additional Amounts, if any, on Global Notes will be payable at the corporate trust office or agency of the Principal Paying Agent maintained in the City of London for such purposes, at the corporate trust office or agency of the Paying Agent maintained in the Borough of Manhattan, City of New York, for such purposes and, for as long as any Notes are admitted to trading on the Euro MTF and listed on the Official List of the Luxembourg Stock Exchange, at the office of the Paying Agent appointed in Luxembourg.  All payments on the Global Notes will be made by transfer of immediately available funds to an account of the Holder of the Global Notes in accordance with instructions given by that Holder.

 

Principal of, interest, premium and Additional Amounts, if any, on any Definitive Registered Notes will be payable at the corporate trust office or agency of any Paying Agent in any location required to be maintained for such purposes pursuant to Section 2.03.  In addition, interest on Definitive Registered Notes may be paid by check mailed to the person entitled thereto as shown on the Register for such Definitive Registered Notes.

 

The Issuer shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then applicable interest rate on the Notes to the extent lawful.  The Issuer shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace period) at the same rate to the extent lawful.

 

Section 4.02                             Maintenance of Office or Agency.

 

Subject to Section 5.01, the Issuer shall maintain the offices and agencies specified in Section 2.03.  The Issuer shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Issuer shall fail to maintain any such required

 

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office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the corporate trust office of the Trustee.

 

The Issuer may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Issuer of its obligation to maintain an office or agency in the Borough of Manhattan, the City of New York, the City of London and Luxembourg for such purposes.  The Issuer shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

 

The Issuer hereby designates the corporate trust office of the Trustee (the address of which is specified in Section 13.01) as one such office or agency of the Issuer in accordance with Section 2.03.

 

Section 4.03                             Reports and Other Information.

 

(a)                                 So long as any Notes are outstanding, the Issuer, will furnish to the Trustee:

 

(i)                                     within 120 days after the end of the Parent’s fiscal year beginning with the fiscal year ending September 30, 2012, annual reports containing the following information with a level of detail that is substantially comparable and similar in scope to the Offering Memorandum (with appropriate revisions, as reasonably determined by the Parent to reflect segment reporting):  (1) audited consolidated balance sheet of the Parent as of the end of the two most recent fiscal years and audited consolidated income statements and statements of cash flow of the Parent for the three most recent fiscal years, including complete footnotes to such financial statements and the report of the independent auditors on the financial statements; (2) pro forma income statement and balance sheet information of the Parent, together with explanatory footnotes, for any material acquisitions, dispositions or recapitalizations (but only to the extent that such pro forma financial information has been required to be disclosed for such acquisitions, dispositions, or recapitalizations by the JSE Limited or other regulatory authority) that have occurred since the beginning of the most recently completed fiscal year as to which such annual report relates (unless such pro forma information has been provided in a previous report pursuant to clause 2 or 3 below); (3) an operating and financial review of the audited financial statements, including a discussion of the results of operations (including a discussion by business segment), financial condition and liquidity and capital resources, and a discussion of material commitments and contingencies and critical accounting policies; (4) a description of the business, management and shareholders of the Parent, material affiliate transactions and material debt instruments; and (5) risk factors and material recent developments; provided that any item of disclosure that complies in all material respects with the requirements applicable under Form 20-F under the U.S. Exchange Act for annual reports with respect to such item will be deemed to satisfy the Parent’s obligations under this clause (i) with respect to such item;

 

(ii)                                  within 60 days following the end of each of the first three fiscal quarters in each fiscal year of the Parent beginning with the fiscal quarter ending July 1, 2012, quarterly reports containing the following information:  (1) an unaudited condensed consolidated balance sheet as of the end of such quarter and unaudited condensed statements of income and cash flow for the quarterly and year to date periods ending on the unaudited condensed balance sheet date, and the comparable prior year periods for the Parent, together with condensed footnote disclosure; (2) pro forma income statement and balance sheet information of the Parent, together with explanatory footnotes, for any material acquisitions, dispositions or recapitalizations (but only to the extent that such pro forma financial information has been required to be disclosed for such acquisitions, dispositions, or recapitalizations by the JSE Limited or other regulatory authority) that have occurred since the beginning of the most recently completed fiscal quarter as to which such quarterly report relates; (3) an operating

 

54

 

and financial review of the unaudited financial statements (including a discussion by business segment), including a discussion of the consolidated financial condition and results of operations of the Parent and any material change between the current quarterly period and the corresponding period of the prior year; and (4) material recent developments; provided that (for so long as the JSE Listing Requirements require interim reports) any item of disclosure that complies in all material respects with the requirements applicable under the JSE Listing Requirements for interim reports with respect to such item will be deemed to satisfy the Parent’s obligations under this clause (ii) with respect to such item; and

 

(iii)                               promptly after the occurrence of any material acquisition, disposition or restructuring of the Parent and the Restricted Subsidiaries, taken as a whole, or any senior executive officer changes at the Parent or change in auditors of the Parent or any other material event that the Parent announces publicly, a report containing a description of such event (but only to the extent that such acquisition, disposition, restructuring, change or event has been required to be publicly announced or disclosed by the JSE Limited Listing Requirements for so long as the Parent is subject thereto).

 

(b)                                 The annual report required by the preceding paragraph will include summary condensed consolidating, income statement and balance sheet information in respect of the Guarantors and the non-Guarantors; provided, however, that this requirement shall not be applicable during a Suspension Period.  In addition, if the Parent has designated any of its Subsidiaries as Unrestricted Subsidiaries and such Subsidiaries are Significant Subsidiaries, then the quarterly and annual financial information required by the preceding paragraph will include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, of the financial condition and results of operations of the Parent and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Parent.

 

(c)                                  All financial statements shall be prepared in accordance with IFRS.  Except as provided for above, no report need include separate financial statements for the Parent or Subsidiaries of the Parent or any disclosure with respect to the results of operations or any other financial or statistical disclosure not of a type included in the Offering Memorandum.

 

(d)                                 In addition, for so long as any Notes remain outstanding and if the Parent is neither subject to Section 13 or 15(d) of the U.S. Exchange Act, nor exempt from reporting pursuant to Rule 12g3-2(b) under the U.S. Exchange Act, the Parent has agreed that it will furnish to the holders of the Notes and to prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the U.S. Securities Act.

 

(e)                                  Contemporaneously with the furnishing of each such report discussed above, the Parent will also (a) file a press release with the appropriate internationally recognized wire services in connection with such report or (b) post such report on the Parent’s website.  For so long as the Parent is subject to the reporting requirements of Section 13(a) or 15(d) of the U.S. Exchange Act, or elects to comply with such provisions, the Parent will, for so long as it continues to file the reports required by Section 13(a) with the Commission, make available to the Trustee the annual reports, information, documents and other reports that the Parent is required to file with the Commission pursuant to such Section 13(a) or 15(d).  The Parent will also make available copies of all reports required by clauses (i) through (iii) of Section 4.03(a), if and so long as the Notes are listed on the Official List of the Luxembourg Stock Exchange and admitted for trading on the Euro MTF and the rules of the Luxembourg Stock Exchange so require, at the offices of the Paying Agent in Luxembourg or, to the extent and in the manner permitted by such rules, post such reports on the official website of the Luxembourg Stock Exchange.

 

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Section 4.04                                Compliance Certificate.

 

(a)                                  The Issuer shall deliver to the Trustee, within 90 days after the end of each fiscal year (without the need for any request by the Trustee) and (at any time) within 14 days of a request by the Trustee therefor, an Officer’s Certificate stating that a review of the activities of the Issuer, the Parent and its Subsidiaries during the preceding fiscal year or, as the case may be, during the 12-month period ending on the date of such request, has been made under the supervision of the signing Officer who would normally have knowledge of any default, with a view to determining whether each of the Issuer and the Parent and its Subsidiaries has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to such Officer signing such certificate, that to the best of his or her knowledge each of the Issuer and the Parent and its Subsidiaries is not (and has not been since the date of the last such certificate, or if none, since the Issue Date) in Default in the performance or observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Issuer and/or the Parent is taking or proposes to take with respect thereto).

 

(b)                                 The Issuer shall, so long as any of the Notes are outstanding, deliver to the Trustee, promptly, in any case within 30 days, upon any Officer becoming aware of any Default or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Issuer is taking or proposes to take with respect thereto.

 

Section 4.05                                [Reserved].

 

Section 4.06                                Stay, Extension and Usury Laws.

 

Each of the Issuer and the Guarantors covenants (to the extent that it may lawfully do so) that they shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and each of the Issuer and any Guarantor (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been enacted.

 

Section 4.07                                Limitations on Restricted Payments

 

(a)                                  The Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly:

 

(i)                                     declare or pay any dividend or make any other payment or distribution on account of the Parent’s or any of its Restricted Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Parent or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Parent’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity as holders (other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Parent or any of its Restricted Subsidiaries and other than dividends or distributions payable to the Parent or a Restricted Subsidiary);

 

(ii)                                  purchase, redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation involving the Parent) any Equity Interests of the Parent or any direct or indirect parent entity of the Parent;

 

(iii)                               make any principal payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness of the Parent, the Issuer or

 

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any Guarantor that is expressly contractually subordinated to the Notes or to any Note Guarantee (excluding any intercompany Indebtedness between or among the Parent and any of its Restricted Subsidiaries), except (1) a payment of principal at the Stated Maturity thereof or (2) the purchase, repurchase or other acquisition of Indebtedness purchased in anticipation of satisfying a sinking fund obligation, principal installment or scheduled maturity, in each case due within one year of the date of such purchase, repurchase or other acquisition; or

 

(iv)                              make any Restricted Investment,

 

(all such payments and other actions set forth in these clauses (i) through (iv) above being collectively referred to as “Restricted Payments”), unless, at the time of any such Restricted Payment:

 

(v)                                 no Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment;

 

(vi)                              the Parent would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least US$1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a); and

 

(vii)                           such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Parent and its Restricted Subsidiaries since the 2014 Notes Issue Date (and not returned or rescinded) (excluding Restricted Payments permitted by clauses (ii), (iii), (iv), (vi), (vii), (xi) and (xiv) of Section 4.07(b)), is less than the sum, without duplication, of:

 

(A)                              50% of the Consolidated Net Income of the Parent for the period (taken as one accounting period) from June 29, 2009 to the end of the Parent’s most recently ended fiscal quarter for which internal financial statements are available at the time of such Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit); plus

 

(B)                                100% of the aggregate net cash proceeds and the Fair Market Value of property or assets received by the Parent since the 2014 Notes Issue Date as a contribution to its common equity capital or from the issue or sale of Equity Interests of the Parent (other than Disqualified Stock) or from the issue or sale of convertible or exchangeable Disqualified Stock of the Parent or convertible or exchangeable debt securities of the Parent, in each case that have been converted into or exchanged for Equity Interests of the Parent (other than Equity Interests (or Disqualified Stock or debt securities) sold to a Subsidiary of the Parent); plus

 

(C)                                to the extent that any Restricted Investment that was made after the 2014 Notes Issue Date was or is, as the case may be, (a) sold or otherwise cancelled, liquidated or repaid, or (b) made in an entity that subsequently became or becomes, as the case may be, a Restricted Subsidiary, 100% of the aggregate net cash proceeds received by the Parent or Restricted Subsidiary or in the case of non-cash consideration, the Fair Market Value of the property or assets received by the Parent or Restricted Subsidiary or the Parent’s Restricted Investment as of the date such entity became or becomes, as the case may be, a Restricted Subsidiary or such Restricted Investment is sold or otherwise cancelled, liquidated or repaid; plus

 

(D)                               to the extent that any Unrestricted Subsidiary of the Parent designated as such after the Issue Date is redesignated as a Restricted Subsidiary after the Issue Date, the Fair Market Value of the property or assets received by the Parent

 

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or Restricted Subsidiary or the Parent’s Restricted Investment in such Subsidiary as of the date of such redesignation to the extent such investments reduced the Restricted Payments capacity under this clause (vii) and were not previously repaid or otherwise reduced; plus

 

(E)                                 100% of any dividends or distributions received by the Parent or a Restricted Subsidiary after the 2014 Notes Issue Date from an Unrestricted Subsidiary, to the extent that such dividends or distributions were not otherwise included in the Consolidated Net Income of the Parent for such period.

 

(b)                                 The provisions of Section 4.07(a) will not prohibit:

 

(i)                                     the payment of any dividend or the consummation of any redemption within 60 days after the date of declaration of the dividend or giving of the redemption notice, as the case may be, if at the date of declaration or notice, the dividend or redemption payment would have complied with the provisions of this Indenture;

 

(ii)                                  the making of any Restricted Payment in exchange for, or out of or with the net cash proceeds of the substantially concurrent sale (other than to a Subsidiary of the Parent) of, Equity Interests of the Parent (other than Disqualified Stock) or from the substantially concurrent contribution of common equity capital to the Parent; provided that the amount of any such net cash proceeds that are utilized for any such Restricted Payment will be excluded from Section 4.07(a)(vii)(B) and will not be considered to be net cash proceeds from an Equity Offering for purposes of Section 3.07(a);

 

(iii)                               the repurchase, redemption, defeasance or other acquisition or retirement for value of Indebtedness of the Parent or any Restricted Subsidiary that is contractually subordinated to the Notes or to any Note Guarantee with the net cash proceeds from an incurrence of Permitted Refinancing Indebtedness;

 

(iv)                              the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Parent or any Restricted Subsidiary held by any current or former officer, director, employee or consultant of the Parent or any of its Restricted Subsidiaries pursuant to any equity subscription agreement, stock option agreement, restricted stock grant, shareholders’ agreement or similar agreement; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed US$5.0 million in any calendar year (with unused amounts in any calendar year being carried over to the next succeeding two years); and provided, further, that such amount in any calendar year period may be increased by an amount not to exceed the cash proceeds from the sale of Equity Interests of the Parent or a Restricted Subsidiary received by the Parent or a Restricted Subsidiary during such calendar year period, in each case to members of management, directors or consultants of the Parent, any of its Restricted Subsidiaries or any of its direct or indirect parent companies to the extent the cash proceeds from the sale of Equity Interests have not otherwise been applied to the making of Restricted Payments pursuant to Section 4.07(a)(vii)(B) or 4.07(b)(ii);

 

(v)                                 the repurchase of Equity Interests deemed to occur upon the exercise of stock options to the extent such Equity Interests represent a portion of the exercise price of those stock options;

 

(vi)                              the declaration and payment of regularly scheduled or accrued dividends to holders of any class or series of Disqualified Stock of the Parent or any preferred stock of any Restricted Subsidiary issued on or after the Issue Date in accordance with Section 4.09;

 

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(vii)                           payments of cash, dividends, distributions, advances or other Restricted Payments by the Parent or any of its Restricted Subsidiaries to allow the payment of cash in lieu of the issuance of fractional shares upon (1) the exercise of options or warrants or (2) the conversion or exchange of Capital Stock of any such Person;

 

(viii)                        advances or loans to any future, present or former officer, director, employee or consultant of the Parent or a Restricted Subsidiary to pay for the purchase or other acquisition for value of Capital Stock of the Parent or a Restricted Subsidiary, or any obligation under a forward sale agreement, deferred purchase agreement or deferred payment arrangement pursuant to any management equity plan or stock option plan or any other management or employee benefit or incentive plan or other agreement or arrangement, provided that the total aggregate amount of Restricted Payments made under this clause (viii) does not exceed US$5.0 million in any calendar year and US$25.0 million in the aggregate since the Issue Date;

 

(ix)                                advances or loans to any management equity plan or stock option plan or any other management or employee benefit or incentive plan or unit trust or the trustees of any such plan or trust, provided that the total aggregate amount of Restricted Payments made under this clause (ix) does not exceed US$6.0 million in any calendar year;

 

(x)                                   the payment of any dividend (or, in the case of any partnership or limited liability company, any similar distribution) by a Restricted Subsidiary to the holders of its Equity Interests (other than the Parent or any Restricted Subsidiary) on no more than a pro rata basis;

 

(xi)                                payment of any Securitization Fees and purchases of Securitization Assets pursuant to a Securitization Repurchase Obligation in connection with a Qualified Securitization Financing;

 

(xii)                             the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Parent or any South African Restricted Subsidiary pursuant to transactions in connection with the BBBEE Act;

 

(xiii)                          so long as no Default or Event of Default has occurred and is continuing, the declaration or payment by the Parent of dividends or the making of any other payments or distributions on account of the Parent’s Equity Interests, in an amount per annum not to exceed 6% of the Parent’s Market Capitalization, provided that on a pro forma basis after giving effect to such dividends, payments or distributions the Consolidated Leverage Ratio does not exceed 4.0 to 1.0; or

 

(xiv)                         so long as no Default or Event of Default has occurred and is continuing, other Restricted Payments in an aggregate amount not to exceed US$50.0 million since the Issue Date.

 

(c)                                  The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Parent or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.  Unsecured Indebtedness shall not be deemed to be subordinate or junior to Secured Indebtedness by virtue of its nature as unsecured Indebtedness, and no Indebtedness will be deemed to be subordinate or junior to any other Indebtedness solely by virtue of being secured with different collateral or by virtue of being secured on a junior priority basis or by virtue of the application of waterfall or other payment ordering provisions affecting different tranches of Indebtedness under Credit Facilities.

 

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Section 4.08                                Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

(a)                                  The Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to:

 

(i)                                     pay dividends or make any other distributions on its Capital Stock to the Parent or any Restricted Subsidiary, or with respect to any other interest or participation in, or measured by, its profits, or pay any Indebtedness owed to the Parent or any Restricted Subsidiary;

 

(ii)                                  make loans or advances to the Parent or any Restricted Subsidiary; or

 

(iii)                               sell, lease or transfer any of its properties or assets to the Parent or any Restricted Subsidiary,

 

provided that (x) the priority of any preferred stock in receiving dividends or liquidating distributions prior to dividends or liquidating distributions being paid on common stock and (y) the subordination of (including the application of any standstill period to) loans or advances made to the Parent or any Restricted Subsidiary to other Indebtedness incurred by the Parent or any Restricted Subsidiary, shall not be deemed to constitute such an encumbrance or restriction.

 

(b)                                 However, the preceding restrictions will not apply to encumbrances or restrictions existing under or by reason of:

 

(i)                                     agreements governing Indebtedness and Credit Facilities as in effect on the Issue Date and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings are not materially more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those contained in those agreements on the Issue Date;

 

(ii)                                  this Indenture, the Notes and the Note Guarantees, the 2017 Indenture, the 2017 Notes and the 2017 Note Guarantees, the New OeKB Facility, the 2014 Indenture, the 2014 Notes the 2014 Note Guarantees, the 2018 Indenture, the 2018 Notes and the 2018 Note Guarantees, the 2021 Indenture, the 2021 Notes and the 2021 Note Guarantees, the Revolving Credit Facility, the Bank Austria Facility, the Intercreditor Agreement and the Collateral Documents;

 

(iii)                               agreements governing other Indebtedness permitted to be incurred under the provisions of Section 4.09 and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the restrictions therein are not materially less favorable to the holders of the Notes than is customary in comparable financings (as determined in good faith by the Parent) or the Parent determines at the time of the incurrence of such Indebtedness that such encumbrances or restrictions will not adversely affect, in any material respect, the Issuer’s ability to make principal or interest payments on the Notes;

 

(iv)                              applicable law, rule, regulation or order or the terms of any license, authorization, concession or permit;

 

(v)                                 any instrument governing Indebtedness or Capital Stock of a Person acquired by the Parent or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection with or in

 

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contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness was permitted to be incurred by the terms of this Indenture;

 

(vi)                              customary non-assignment and similar provisions in contracts, leases and licenses entered into in the ordinary course of business;

 

(vii)                           purchase money obligations for property acquired in the ordinary course of business and Capital Lease Obligations that impose restrictions on the property purchased or leased of the nature described in Section 4.08(a)(iii);

 

(viii)                        any agreement for the sale or other disposition of the Capital Stock or all or substantially all of the property and assets of a Restricted Subsidiary that restricts distributions by that Restricted Subsidiary pending its sale or other disposition;

 

(ix)                                Permitted Refinancing Indebtedness; provided that the restrictions contained in the agreements governing such Permitted Refinancing Indebtedness are not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced;

 

(x)                                   Liens permitted to be incurred under the provisions of Section 4.12 that limit the right of the debtor to dispose of the assets subject to such Liens;

 

(xi)                                provisions limiting the disposition or distribution of assets or property in joint venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements and other similar agreements (including agreements entered into in connection with a Restricted Investment), which limitation is applicable only to the assets that are the subject of such agreements;

 

(xii)                             restrictions on cash or other deposits or net worth imposed by customers or suppliers or required by insurance, surety or bonding companies or imposed by leases, in each case, under contracts entered into in the ordinary course of business;

 

(xiii)                          any encumbrance or restriction of a Securitization Subsidiary effected in connection with a Qualified Securitization Financing; provided, however, that such restrictions apply only to such Securitization Subsidiary;

 

(xiv)                         Hedging Obligations; and

 

(xv)                            any agreement that extends, renews, refinances or replaces the agreements containing the encumbrances or restrictions in the foregoing Section 4.08(b)(i)—(xiv), or in this clause (xv); provided that the terms and conditions of any such encumbrances or restrictions are no more restrictive in any material respect than those under or pursuant to the agreement so extended, renewed, refinanced or replaced.

 

Section 4.09                                Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock

 

(a)                                  The Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt), and the Parent will not and will not permit the Issuer or any Subsidiary Guarantor to, issue any Disqualified Stock and will not permit any of its Restricted Subsidiaries (other than the Issuer) to issue any shares of preferred stock; provided, however, that the Parent may incur

 

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Indebtedness (including Acquired Debt) or issue Disqualified Stock, the Issuer, the Subsidiary Guarantors and any Finance Subsidiary may incur Indebtedness (including Acquired Debt) and issue Disqualified Stock and the Subsidiary Guarantors and any Finance Subsidiary may issue preferred stock, if the Fixed Charge Coverage Ratio for the Parent’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock or such preferred stock is issued, as the case may be, would have been at least 2.0 to 1.0, in each case determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock or the preferred stock had been issued, as the case may be, and the application of proceeds therefrom had occurred, at the beginning of such four-quarter period.

 

(b)                                 Section 4.09(a) will not prohibit the incurrence of any of the following items of Indebtedness (collectively, “Permitted Debt”):

 

(i)                                     the incurrence by the Issuer, any Guarantor, a Finance Subsidiary and any Permitted Obligor of additional Indebtedness under Credit Facilities in an aggregate principal amount at any one time outstanding under this clause (i) not to exceed €1.3 billion, plus in the case of any refinancing of any Indebtedness permitted under this clause (i) or any portion thereof, the aggregate amount of fees, underwriting discounts, premia and other costs and expenses incurred in connection with such refinancing, less the aggregate amount of all Net Proceeds of Asset Sales applied by the Parent or any of its Restricted Subsidiaries since the Issue Date to repay any term Indebtedness under a Credit Facility or to repay any revolving credit Indebtedness under a Credit Facility and effect a corresponding commitment reduction thereunder, in each case incurred pursuant to this clause (i), pursuant to Section 4.10; provided, however, in no event shall any such reduction reduce the availability under this clause (i) to less than €1.15 billion at any one time outstanding;

 

(ii)                                  Indebtedness of the Parent or any Restricted Subsidiary outstanding on the Issue Date after giving effect to the use of proceeds of the Notes and the 2017 Notes;

 

(iii)                               the incurrence by the Issuer and the Guarantors of Indebtedness represented by the Notes issued on the Issue Date and the related Note Guarantees and the 2017 Notes issued on the Issue Date and the related 2017 Note Guarantees and any “parallel debt” obligations under the Intercreditor Agreement or the Collateral Documents;

 

(iv)                              Indebtedness or Disqualified Stock of the Parent or the Issuer, Disqualified Stock of any Subsidiary Guarantor and Indebtedness or preferred stock of any Restricted Subsidiary represented by Capital Lease Obligations, mortgage or project financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the purchase price, lease expense, rental payments or cost of design, construction, installation or improvement of property, plant or equipment or other assets (including Capital Stock) used in the business of the Parent or any of its Restricted Subsidiaries, in an aggregate principal amount, including all Permitted Refinancing Indebtedness, Disqualified Stock and preferred stock incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness, Disqualified Stock and preferred stock incurred pursuant to this clause (iv), not to exceed US$200.0 million at any time outstanding;

 

(v)                                 Permitted Refinancing Indebtedness or Disqualified Stock of the Parent, the Issuer or any Subsidiary Guarantor and Permitted Refinancing Indebtedness or preferred stock of any Restricted Subsidiary in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge any Indebtedness, Disqualified Stock and preferred stock (other than intercompany Indebtedness) that was permitted by this Indenture to be incurred by the Parent, Issuer, Subsidiary Guarantor or Restricted Subsidiary, as the case may be, under 4.09(a) or clauses (ii), (iii), (v) or (xiv) of Section 4.09(b);

 

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(vi)                              the incurrence by the Parent or any Restricted Subsidiary of intercompany Indebtedness owing to the Parent or any Restricted Subsidiary; provided, however, that:

 

(A)                              if the Issuer or any Guarantor is the obligor on such Indebtedness and the payee is not the Issuer or a Guarantor, such Indebtedness must be unsecured and ((i) except in respect of the intercompany current liabilities incurred in the ordinary course of business in connection with the cash management operations of the Parent and its Restricted Subsidiaries and (ii) only to the extent legally permitted (the Parent and its Restricted Subsidiaries having completed all procedures required in the reasonable judgment of directors of officers of the obligee or obligor to protect such Persons from any penalty or civil or criminal liability in connection with the subordination of such Indebtedness) expressly subordinated to the prior payment in full in cash of all Obligations then due with respect to the Notes, in the case of the Issuer, or the Note Guarantee, in the case of a Guarantor;

 

(B)                                if a South African Restricted Subsidiary is the obligor on such Indebtedness, such intercompany Indebtedness complies with the requirements of clause (1) of the definition of Permitted Investments; and

 

(C)                                (1) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Parent or a Restricted Subsidiary and (2) any sale or other transfer of any such Indebtedness to a Person that is not either the Parent or a Restricted Subsidiary, will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Parent or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (vi);

 

(vii)                           the issuance by any Restricted Subsidiary to the Parent or to any of its Restricted Subsidiaries of preferred stock; provided,  however, that:

 

(A)                              any subsequent issuance or transfer of Equity Interests that results in any such preferred stock being held by a Person other than the Parent or a Restricted Subsidiary; and

 

(B)                                any sale or other transfer of any such preferred stock to a Person that is not either the Parent or a Restricted Subsidiary,

 

will be deemed, in each case, to constitute an issuance of such preferred stock by such Restricted Subsidiary that was not permitted by this clause (vii);

 

(viii)                        the incurrence by the Parent or any Restricted Subsidiary of Hedging Obligations in the ordinary course of business and not for speculative purposes;

 

(ix)                                the Guarantee by the Parent or any Restricted Subsidiary of Indebtedness of the Parent or any Restricted Subsidiary to the extent that the guaranteed Indebtedness was permitted to be incurred by another provision of this Section 4.09; provided that if the Indebtedness being guaranteed is subordinated to or pari passu with the Notes or a Note Guarantee, then the Guarantee must be subordinated or pari passu, as applicable, to the same extent as the Indebtedness guaranteed; and provided further, that this clause (ix) will not permit (A) the Guarantee by any Restricted Subsidiary other than Sappi International S.A. of (1) the SPH Bonds due 2032 or (2) any Indebtedness incurred under clause (v) of this paragraph, the proceeds of which are used to renew, refund, refinance, replace, defease or discharge the SPH Bonds due 2032 or any Permitted Refinancing Indebtedness in respect thereof unless such Indebtedness is secured by the Collateral; (B) the Guarantee by the Issuer or any of its Restricted Subsidiaries of Indebtedness of (1) any South African Restricted Subsidiary or (2) any Guarantee provided by Sappi Limited in respect of the Indebtedness of a

 

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South African Restricted Subsidiary (other than, in each case, for Guarantees of payments to customers to be made by any South African Restricted Subsidiary), or (C) the Guarantee by any South African Restricted Subsidiary of any Indebtedness of the Issuer or any of its Restricted Subsidiaries;

 

(x)                                   the incurrence by the Parent or any of its Restricted Subsidiaries of Indebtedness in respect of workers’ compensation claims, self-insurance obligations, captive insurance companies, bankers’ acceptances, performance and surety bonds in the ordinary course of business;

 

(xi)                                the incurrence by the Parent or any of its Restricted Subsidiaries of Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within ten (10) Business Days;

 

(xii)                             Indebtedness represented by Guarantees of any Management Advances;

 

(xiii)                          Indebtedness incurred in a Qualified Securitization Financing;

 

(xiv)                         Indebtedness of any Person outstanding on the date on which such Person becomes a Restricted Subsidiary or is merged, consolidated, amalgamated or otherwise combined with (including pursuant to any acquisition of assets and assumption of related liabilities) the Parent or any Restricted Subsidiary (other than Indebtedness incurred to provide all or any portion of the funds used to consummate the transaction or series of related transactions pursuant to which such Person became a Restricted Subsidiary or was otherwise acquired by the Parent or a Restricted Subsidiary); provided, however, with respect to this clause (xiv), that at the time of the acquisition or other transaction pursuant to which such Indebtedness was deemed to be incurred (a) the Parent would have been able to incur US$1.00 of additional Indebtedness pursuant to Section 4.09(a) after giving effect to the incurrence of such Indebtedness pursuant to this clause (xiv) or (b) the Fixed Charge Coverage Ratio would not be less than it was immediately prior to giving effect to such acquisition or other transaction;

 

(xv)                            Indebtedness arising from agreements of the Parent or a Restricted Subsidiary providing for customary indemnification, obligations in respect of earnouts or other adjustments of purchase price or, in each case, similar obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business or assets or Person or any Equity Interests of a Subsidiary, provided that, in the case of a disposition, the maximum liability of the Parent and its Restricted Subsidiaries in respect of all such Indebtedness shall at no time exceed the gross proceeds, including the Fair Market Value of non-cash proceeds (measured at the time received and without giving effect to any subsequent changes in value), actually received by the Parent and its Restricted Subsidiaries in connection with such disposition;

 

(xvi)                         Indebtedness of the Parent and its Restricted Subsidiaries in respect of joint ventures in an aggregate principal amount at any time outstanding not to exceed US$50.0 million plus the amount of such Indebtedness outstanding on the Issue Date;

 

(xvii)                      the incurrence by any South African Restricted Subsidiary of Indebtedness in an aggregate principal amount at any time outstanding, including all Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause (xvii), not to exceed ZAR7.5 billion and guarantees by a South African Restricted Subsidiary in respect of such Indebtedness;

 

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(xviii)                   Indebtedness of the Parent and its Restricted Subsidiaries in respect of (1) letters of credit, surety, performance or appeal bonds, completion guarantees, judgment, advance payment, customs, VAT or other tax guarantees or similar instruments issued in the ordinary course of business of such Person and not in connection with the borrowing of money, including letters of credit or similar instruments in respect of self-insurance and workers compensation obligations, and (2) any customary cash management, cash pooling or netting or setting off arrangements; provided, however, that upon the drawing of such letters of credit or other instrument, such obligations are reimbursed within 30 days following such drawing;

 

(xix)                           Guarantees by the Parent or any Restricted Subsidiary granted to any trustee of any management equity plan or stock option plan or any other management or employee benefit or incentive plan or unit trust scheme, so long as the aggregate principal amount of all such Indebtedness incurred in any calendar year shall not exceed US$6.0 million;

 

(xx)                              Any counter indemnity or similar obligations of the Parent or any Restricted Subsidiary in respect of bills of exchange or similar instruments, so long as the aggregate principal amount of all bills of exchange benefiting from such counter-indemnities or obligations shall not exceed €30.0 million outstanding at any one time in the aggregate;

 

(xxi)                           Indebtedness represented by guarantees of pension fund obligations of the Parent or any Restricted Subsidiary required by law or regulation;

 

(xxii)                        (1) Indebtedness of the Parent or any Restricted Subsidiary arising from transactions under or in connection with the BBBEE Act so long as the aggregate principal amount of all such Indebtedness does not exceed US$50.0 million outstanding at any one time in the aggregate (excluding any Indebtedness incurred pursuant to clause (2)) and (2) Guarantees of Indebtedness made in connection with the BBBEE Act to facilitate the purchase of Equity Interests of the Parent or any South African Restricted Subsidiary or in respect of put/call arrangements under which the Parent will acquire Equity Interests of the Parent or any South African Restricted Subsidiary (or a Person that owns Equity Interests of the Parent or any South African Restricted Subsidiary); and

 

(xxiii)                     Indebtedness or Disqualified Stock of the Parent and Indebtedness, Disqualified Stock or preferred stock of any Restricted Subsidiary in an aggregate principal amount at any time outstanding, including all Indebtedness, Disqualified Stock and preferred stock incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness, Disqualified Stock and preferred stock incurred pursuant to this clause (xxiii), not to exceed the greater of US$175.0 million and 3.0% of Total Assets.

 

Neither the Issuer nor any Guarantor will incur any Indebtedness (including Permitted Debt) that is contractually subordinated in right of payment to any other Indebtedness of the Issuer or such Guarantor unless such Indebtedness is also contractually subordinated in right of payment to the Notes and the applicable Note Guarantee on substantially identical terms; provided, however, that no Indebtedness will be deemed to be contractually subordinated in right of payment to any other Indebtedness of the Issuer or any Guarantor solely by virtue of being unsecured by virtue of being secured with different collateral or by virtue of being secured on a junior priority basis or by virtue of the application of waterfall or other payment ordering provisions affecting different tranches of Indebtedness under Credit Facilities.

 

For purposes of determining compliance with Section 4.09:

 

(1)                                  in the event that an item of Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in clauses (i) through (xxiii) above, or is entitled to be incurred pursuant to Section 4.09(a),

 

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the Issuer, in its sole discretion, will be permitted to classify such item of Indebtedness on the date of its incurrence and will only be required to include the amount and type of such Indebtedness in one of such clauses and will be permitted on the date of such incurrence to divide and classify an item of Indebtedness in more than one of the types of Indebtedness described in Section 4.09(a) or 4.09(b), or, except with respect to Indebtedness incurred under clause (i) or clause (xvii) of the definition of Permitted Debt, which may not be reclassified, from time to time to reclassify all or a portion of such item of Indebtedness, in any manner that complies with Section 4.09.

 

(2)                                 Indebtedness under the Revolving Credit Facility and the Bank Austria Facility outstanding on the Issue Date will initially be deemed to have been incurred on such date in reliance on the exception provided by clause (i) of the definition of Permitted Debt and may not be reclassified.  Indebtedness incurred by South African Restricted Subsidiaries outstanding on the Issue Date (other than Hedging Obligations) will initially be deemed to have been incurred on such date in reliance on the exception provided by clause (xvii)of the definition of Permitted Debt and may not be reclassified;

 

(3)                                 if obligations in respect of letters of credit, bankers’ acceptances or other similar instruments are incurred pursuant to any Credit Facility and are being treated as incurred pursuant to clause (i), (iv) or (xxiii) of Section 4.09(b) or Section 4.09(a) and the letters of credit, bankers’ acceptances or other similar instruments relate to other Indebtedness, then such other Indebtedness shall not be included; and

 

(4)                                 if, due to a change in IFRS as in effect as of the Issue Date, any item of Indebtedness classified in one of the categories of Permitted Debt described in clauses (i) through (xxiii) of Section 4.09(b) ceases to be eligible under IFRS to be so classified, the Issuer, in its sole discretion, will be permitted to continue to classify such item of Indebtedness under such clause.

 

The accrual of interest or preferred stock dividends, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness, the reclassification as Indebtedness of preferred stock or operating leases, or of commitments or obligations not previously treated as Indebtedness, in each case due to a change in accounting principles, and the payment of dividends on preferred stock or Disqualified Stock in the form of additional shares of the same class of preferred stock or Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of preferred stock or Disqualified Stock for purposes of this Section 4.09. For purposes of determining compliance with any US dollar-denominated, ZAR-denominated or euro-denominated restriction on the incurrence of Indebtedness, the US dollar-equivalent, ZAR-equivalent or euro-equivalent, as applicable, principal amount of Indebtedness denominated in a different currency shall be utilized, calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred; provided, however, that (i) if such Indebtedness denominated in a non-US dollar, non-ZAR or non-euro currency is subject to a Currency Exchange Protection Agreement with respect to US dollars, ZAR, or euro, as applicable, the amount of such Indebtedness expressed in US dollars, ZAR or euro, as applicable, will be calculated so as to take account of the effects of such Currency Exchange Protection Agreement; and (ii) the US dollar-equivalent, ZAR-equivalent or euro-equivalent, as applicable, of the principal amount of any such Indebtedness outstanding on the Issue Date shall be calculated based on the relevant currency exchange rate in effect on the Issue Date. For purposes of determining compliance with any US dollar-denominated, ZAR-denominated or euro-denominated restrictions on the incurrence of Indebtedness in instances in which both the refinancing Indebtedness and the Indebtedness being refinanced are incurred under the

 

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same such restriction, the principal amount of any refinancing Indebtedness incurred in the same currency as the Indebtedness being refinanced will be the US dollar-equivalent, ZAR-equivalent or euro-equivalent, as applicable, of the Indebtedness refinanced determined on the date such Indebtedness was originally incurred, except that to the extent that:

 

(1)                                 such US dollar-equivalent, ZAR-equivalent or euro-equivalent, as applicable, was determined based on a Currency Exchange Protection Agreement, in which case the refinancing Indebtedness will be determined in accordance with the preceding sentence; and

 

(2)                                 the principal amount of the refinancing Indebtedness exceeds the principal amount of the Indebtedness being refinanced, in which case the US dollar-equivalent, ZAR-equivalent or euro-equivalent, as applicable, of such excess, as appropriate, will be determined on the date such refinancing Indebtedness is being incurred.

 

Notwithstanding any other provision of Section 4.09, the maximum amount of Indebtedness that the Parent or any Restricted Subsidiary may incur pursuant to Section 4.09 shall not be deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values.

 

(c)                                  The amount of any Indebtedness outstanding as of any date will be:

 

(i)                                     in the case of any Indebtedness issued with original issue discount, the amount of the liability in respect thereof determined in accordance with IFRS;

 

(ii)                                  the principal amount of the Indebtedness, in the case of any other Indebtedness; and

 

(iii)                               in respect of Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser of:

 

(A)                               the Fair Market Value of such assets at the date of determination; and

 

(B)                               the amount of the Indebtedness of the other Person.

 

In addition, the principal amount of any Disqualified Stock of the Parent or a Restricted Subsidiary, or preferred stock of a Restricted Subsidiary, outstanding as of any date will be equal to the greater of the maximum mandatory redemption or repurchase price (not including, in either case, any redemption or repurchase premium) or the liquidation preference thereof.

 

Section 4.10                             Asset Sales.

 

(a)                                 The Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, consummate an Asset Sale unless:

 

(i)                                     the Parent (or the Restricted Subsidiary, as the case may be) receives consideration at the time of the Asset Sale at least equal to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of; and

 

(ii)                                  at least 75% of the consideration received in the Asset Sale by the Parent or such Restricted Subsidiary is in the form of cash or Cash Equivalents.  For purposes of this provision, each of the following will be deemed to be cash:

 

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(A)                               any liabilities, as recorded on the balance sheet of the Parent or any Restricted Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the Notes or any Note Guarantee), that are assumed by the transferee of any such assets and as a result of which the Parent and its Restricted Subsidiaries are no longer obligated with respect to such liabilities or are indemnified against further liabilities;

 

(B)                               any securities, notes or other obligations received by the Parent or any such Restricted Subsidiary from such transferee that are converted by the Parent or such Restricted Subsidiary into cash or Cash Equivalents within 120 days following the closing of the Asset Sale, to the extent of the cash or Cash Equivalents received in that conversion;

 

(C)                               any Capital Stock or assets of the kind referred to in clauses (iii) or (v) of Section 4.10(b);

 

(D)                               Indebtedness of any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of such Asset Sale, to the extent that the Parent and each other Restricted Subsidiary are released from any Guarantee of such Indebtedness in connection with such Asset Sale; and

 

(E)                                consideration consisting of Indebtedness of the Issuer or any Guarantor (other than Indebtedness that is by its terms subordinated to the Notes or any Note Guarantee) received from Persons who are not the Parent or any Restricted Subsidiary.

 

(b)                                 Within 365 days after the receipt of any Net Proceeds from an Asset Sale, the Parent (or the applicable Restricted Subsidiary, as the case may be) may apply such Net Proceeds (at the option of the Parent or Restricted Subsidiary):

 

(i)                                     to purchase the Notes pursuant to an offer to all holders of Notes; provided that, all Holders shall be offered the same offer price for the Notes, plus accrued and unpaid interest to (but not including) the date of purchase (a “Notes Offer”);

 

(ii)                                  to purchase, prepay or redeem or repay Indebtedness which is pari passu in right of payment with the Notes or any of the Note Guarantees and secured in whole or part by the Collateral and, subject to the proviso below, if the Indebtedness repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto;

 

(iii)                               to acquire all or substantially all of the assets of, or any Capital Stock of, another Permitted Business, if, after giving effect to any such acquisition of Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary;

 

(iv)                              to make a capital expenditure;

 

(v)                                 to acquire other assets (other than Capital Stock) that are used or useful in a Permitted Business;

 

(vi)                              to the extent such Net Proceeds derive from an Asset Sale in respect of an asset which immediately prior to such Asset Sale did not constitute Collateral, to repurchase, prepay, redeem or repay Indebtedness and, subject to the proviso below, if the Indebtedness repaid is revolving credit indebtedness, to correspondingly reduce commitments with respect thereto, of a Restricted Subsidiary which is not a Guarantor, or Indebtedness of the Issuer or a Guarantor that is by its terms not subordinated to the Notes or the applicable Note Guarantee;

 

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(vii)                           enter into a binding commitment to apply the Net Proceeds pursuant to clause (iii), (v) or (vi) above; provided that such binding commitment shall be treated as a permitted application of the Net Proceeds from the date of such commitment until the earlier of (x) the date on which such acquisition or expenditure is consummated, and (y) the 180th day following the expiration of the aforementioned 365 day period; or

 

(viii)                        any combination of the foregoing.

 

provided, however, (x) if the Indebtedness repaid pursuant to clauses (ii) and (vi) above is revolving credit indebtedness, the commitments with respect thereto shall not be required to be cancelled to the extent the aggregate principal amount of repayments of revolving credit indebtedness made pursuant to such clauses since the Issue Date does not exceed US$100 million and (y) if the assets sold constitute Collateral, subject to the Agreed Security Principles, the Parent shall pledge or shall cause the applicable Restricted Subsidiary to pledge any acquired Capital Stock or assets (to the extent such assets were of a category of assets included in the Collateral as of the Issue Date) referred to in clause (iii) or (v) above in favor of the Notes on a first-ranking basis (subject to pre-existing Liens and Permitted Collateral Liens).

 

(c)                                  Pending the final application of any Net Proceeds, the Parent (or the applicable Restricted Subsidiary) may temporarily reduce revolving credit borrowings or otherwise invest the Net Proceeds in any manner that is not prohibited by this Indenture.

 

(d)                                 Any Net Proceeds from Asset Sales that are not used as provided in Section 4.10(b) will constitute “Excess Proceeds.”

 

(e)                                  The Issuer may also at any time, and the Issuer will within 30 Business Days after the Excess Proceeds exceed US$25.0 million, make an offer (an “Asset Sale Offer”) to all Holders of the Notes and may make an offer to all Holders of other Indebtedness that is pari passu with the Notes or any Note Guarantees with respect to offers to purchase, prepay or redeem with the proceeds of sales of assets to purchase, prepay or redeem the maximum principal amount of Notes and such other pari passu Indebtedness (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premia, incurred in connection therewith) that may be purchased, prepaid or redeemed out of the Excess Proceeds.  The offer price for the Notes in any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued and unpaid interest and Additional Amounts, if any, to the date of purchase, prepayment or redemption, subject to the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date, and will be payable in cash.  If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Parent may use those Excess Proceeds for general corporate purposes and any other purpose not otherwise prohibited by this Indenture.  If the aggregate principal amount of Notes and other pari passu Indebtedness tendered into (or to be prepaid or redeemed in connection with) such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes and such other pari passu Indebtedness to be purchased on a pro rata basis (or in the manner described in Section 3.02 and Section 13.01), based on the amounts tendered or required to be prepaid or redeemed.  Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset to zero.

 

(f)                                   The Issuer will comply with the requirements of Rule 14e-1 under the U.S. Exchange Act and any other applicable securities laws and regulations to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer or a Notes Offer.  To the extent that the provisions of any securities laws or regulations conflict with the Asset Sale Offer or Notes Offer provisions of this Indenture, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Asset Sale Offer or Notes Offer provisions of this Indenture by virtue of such compliance.

 

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Section 4.11                             Transactions with Affiliates.

 

(a)                                 The Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, make any payment to or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of the Parent (each, an “Affiliate Transaction”) involving aggregate payments or consideration in excess of US$2.5 million, unless:

 

(i)                                     the Affiliate Transaction is on terms that are no less favorable to the Parent or the relevant Restricted Subsidiary than those that would have been obtained in a comparable transaction by the Parent or such Restricted Subsidiary with a Person who is not an Affiliate; and

 

(ii)                                  the Parent delivers to the Trustee:

 

(A)                               with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of US$15.0 million, a resolution of the Board of Directors of the Parent set forth in an Officer’s Certificate certifying that such Affiliate Transaction complies with Section 4.11 and that such Affiliate Transaction has been approved by a majority of the disinterested members of the Board of Directors of the Parent; and, in addition,

 

(B)                               with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of US$25.0 million, an opinion of an accounting, appraisal or investment banking firm of international standing, or other recognized independent expert of international standing with experience appraising the terms and conditions of the type of transaction or series of related transactions for which an opinion is required, stating that the transaction or series of related transactions is (1) fair from a financial point of view taking into account all relevant circumstances or (2) on terms not less favorable than might have been obtained in a comparable transaction at such time on an arm’s length basis from a Person who is not an Affiliate.

 

(b)                                 The following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of Section 4.11(a):

 

(i)                                     any employment agreement, collective bargaining agreement, consulting agreement, employee benefit arrangements with any employee, consultant, officer or director of the Parent or any Restricted Subsidiary, including under any stock option, stock appreciation rights, stock incentive or similar plans, entered into in the ordinary course of business;

 

(ii)                                  transactions between or among the Parent and/or its Restricted Subsidiaries;

 

(iii)                               transactions with a Person (other than an Unrestricted Subsidiary of the Parent) that is an Affiliate of the Parent solely because the Parent owns, directly or through a Restricted Subsidiary, an Equity Interest in, or controls, such Person;

 

(iv)                              payment of reasonable and customary fees and reimbursements of expenses (pursuant to indemnity arrangements or otherwise) of officers, directors, employees or consultants of the Parent or any of its Restricted Subsidiaries;

 

(v)                                 any issuance of Equity Interests (other than Disqualified Stock) of the Parent to Affiliates of the Parent;

 

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(vi)                              Restricted Payments that do not violate the provisions of Section 4.07 or any transaction specifically excluded from the definition of “Restricted Payment;”

 

(vii)                           Permitted Investments (other than Permitted Investments described in clauses (iii), (xiii) and (xvii) of the definition thereof);

 

(viii)                        transactions pursuant to, or contemplated by, any agreement in effect on the Issue Date and transactions pursuant to any amendment, modification or extension to such agreement, so long as such amendment, modification or extension, taken as a whole, is not materially more disadvantageous to the holders of the Notes than the original agreement as in effect on the Issue Date;

 

(ix)                              Management Advances and any waiver or transaction with respect thereto;

 

(x)                                 transactions with customers, clients, suppliers, or purchasers or sellers of goods or services, in each case in the ordinary course of business and otherwise in compliance with the terms of this Indenture that are fair to the Parent or the Restricted Subsidiaries, in the reasonable determination of the members of the Board of Directors of the Issuer or the Parent or the senior management thereof, or are on terms at least as favorable as might reasonably have been obtained at such time from a Person who is not an Affiliate; and

 

(xi)                              any transaction effected as part of a Qualified Securitization Financing.

 

Section 4.12                             Liens.

 

(a)                                 The Parent will not and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or otherwise cause or suffer to exist or become effective any Lien of any kind securing Indebtedness on any of their property or assets, now owned or hereafter acquired, except (1) in the case of any property or asset that does not constitute Collateral, Permitted Liens; and (2) in the case of any property or asset that constitutes Collateral, Permitted Collateral Liens and, only to the extent contemplated in Section 4.10, pre-existing Liens.

 

(b)                                 During any Suspension Period, the Issuer may elect by written notice to the Trustee and the holders of the Notes to be subject to the alternative covenant in this Section 4.12(b) in lieu of Section 4.12(a). Under this alternative covenant, the Parent will not and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or otherwise cause or suffer to exist or become effective any Lien on any Principal Property securing any indebtedness for borrowed money (“Suspension Debt”) or interest on any Suspension Debt (or any liability of the Parent or any of its Restricted Subsidiaries under any guarantee or endorsement or other instrument under which the Parent or any of its Restricted Subsidiaries is contingently liable, either directly or indirectly, for Suspension Debt or interest on Suspension Debt), other than Permitted Liens pursuant to clauses (1), (3), (4), (6), (7), (8), (9), (14), (17), (18), (19), (20), (22), (23), (24), (26), (33), (34), (35), (36), clause (12) (but only to the extent the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged with such Permitted Refinancing Indebtedness was secured pursuant to the aforementioned clauses of the definition of “Permitted Liens”) and clause (37) (with respect to Liens described in the foregoing clauses) of the definition of “Permitted Liens”, without also at the same time or prior to that time securing all payments due under this Indenture and the Notes on an equal and ratable basis with (or prior to) the Suspension Debt so secured until such time as such Suspension Debt is no longer secured by such Lien. Notwithstanding the foregoing, during a Suspension Period, the Parent and its Restricted Subsidiaries will be permitted to create, incur, assume or otherwise cause or suffer to exist or become effective Liens on any Principal Property to secure Suspension Debt or interest on any Suspension Debt (or any liability of the Parent or any of its Restricted Subsidiaries under any guarantee or endorsement or other instrument under which the Parent or any of its Restricted Subsidiaries is contingently liable, either directly or indirectly, for Suspension Debt or interest on Suspension Debt), and renew, extend or replace such Liens, without securing the Notes, if the amount

 

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of Suspension Debt outstanding at the time secured by the Liens on any Principal Property created, incurred or assumed after the date on which the Parent and its Restricted Subsidiaries become subject to this alternative covenant and otherwise prohibited by this Indenture does not exceed 15% of Consolidated Net Tangible Assets.

 

Section 4.13                             Additional Intercreditor Agreement.

 

(a)                                 At the request of the Issuer, at the time of, or prior to, the incurrence of any Indebtedness secured by, or that is permitted to share the Collateral, the Issuer, the relevant Guarantors, the Trustee and the Security Agent shall enter into an additional intercreditor agreement on terms substantially similar to the Intercreditor Agreement or an amendment to the Intercreditor Agreement (which amendment in the good faith judgment of the Issuer does not adversely affect the rights of the Holders of the Notes in any material respect), it being understood that an increase in the amount of Indebtedness being subject to the terms of the Intercreditor Agreement or additional intercreditor agreement will be deemed to be on substantially similar terms to the Intercreditor Agreement and will be deemed not to adversely affect the rights of the Holders of the Notes and will be permitted by this covenant if, in each case, the incurrence of such Indebtedness and any Lien in its favor is permitted by Sections 4.09 and 4.12; provided that such Intercreditor Agreement or additional intercreditor agreement will not impose any personal obligations on the Trustee or the Security Agent or adversely affect the rights, duties, liabilities or immunities of the Trustee under this Indenture or the Intercreditor Agreement.

 

(b)                                 At the direction of the Issuer and without the consent of the Holders of the Notes, the Trustee and the Security Agent shall from time to time enter into one or more amendments to the Intercreditor Agreement to: (1) cure any ambiguity, omission, defect or inconsistency of such agreement, (2) increase the amount or types of Indebtedness covered by such agreement that may be incurred by the Issuer or a Guarantor that is subject to such agreement (including with respect to the Intercreditor Agreement or any additional intercreditor agreement, the addition of provisions relating to new Indebtedness ranking junior in right of payment to the Notes), (3) add Restricted Subsidiaries to the Intercreditor Agreement or an additional intercreditor agreement, (4) further secure the Notes (including Additional Notes), (5) make provision for equal and ratable pledges of the Collateral to secure additional Notes, (6) implement any Permitted Collateral Liens, (7) amend the Intercreditor Agreement or any additional intercreditor agreement in accordance with the terms thereof or (8) make any other change to any such agreement that does not adversely affect the holders of the Notes in any material respect.

 

(c)                                  In relation to the Intercreditor Agreement or any additional intercreditor agreement, the Trustee (and Security Agent, if applicable) shall consent on behalf of the holders of the Notes to the payment, repayment, purchase, repurchase, defeasance, acquisition, retirement or redemption of any obligations subordinated to the Notes thereby; provided, however, that such transaction would comply with Section 4.07.

 

(d)                                 Each Holder of a Note, by accepting such Note, shall be deemed to have agreed to and accepted the terms and conditions of each Intercreditor Agreement and additional intercreditor agreement, and any amendments thereto, and the Trustee or the Security Agent shall not be required to seek the consent of any Holders of the Notes to perform its obligations under and in accordance with this Section 4.13 and shall be authorized by holders of the Notes to enter into any one or more additional intercreditor agreements or amendments to the Intercreditor Agreement as contemplated above.

 

Section 4.14                             Offer to Repurchase Upon Change of Control.

 

(a)                                 If a Change of Control occurs, each Holder of Notes will have the right to require the Issuer to repurchase all or any part (equal to US$200,000 or an integral multiple of US$1,000 in excess thereof) of that Holder’s Notes pursuant to an offer (“Change of Control Offer”) on the terms

 

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set forth in this Indenture.  In a Change of Control Offer, the Issuer will offer a payment in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest and Additional Amounts, if any, on the Notes repurchased to the date of purchase (the “Change of Control Payment”), subject to the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date.  Within 30 days following any Change of Control, the Issuer will mail a notice to each Holder of the Notes at such Holder’s registered address or otherwise deliver a notice in accordance with the procedures described under Section 3.03 and Section 13.01, stating that a Change of Control Offer is being made and offering to repurchase Notes on the date (the “Change of Control Payment Date”) specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed or delivered, pursuant to the procedures required by this Indenture and described in such notice.  The Issuer will comply with the requirements of Rule 14e-1 under the U.S. Exchange Act and any other applicable securities laws and regulations to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Offer.  To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions of this Indenture, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Indenture by virtue of such compliance.

 

(b)                                 On the Change of Control Payment Date, the Issuer will, to the extent lawful:

 

(i)                                     accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer;

 

(ii)                                  deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and

 

(iii)                               deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased by the Issuer.

 

(c)                                  The Paying Agent will promptly mail (or cause to be delivered) to each holder of Notes properly tendered the Change of Control Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any.  The Issuer will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

 

(d)                                 The provisions of this Section 4.14 that require the Issuer to make a Change of Control Offer following a Change of Control will be applicable whether or not any other provisions of this Indenture are applicable.  Except as described above with respect to a Change of Control, this Indenture does not permit the holders of the Notes to require that the Issuer repurchase or redeem the Notes in the event of a takeover, recapitalization or similar transaction.

 

(e)                                  The Issuer will not be required to make a Change of Control Offer upon a Change of Control if (1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Issuer and purchases all Notes properly tendered and not withdrawn under the Change of Control Offer, or (2) a notice of redemption has been given pursuant to this Indenture as described in Section 3.07, unless and until there is a default in payment of the applicable redemption price.  Notwithstanding anything to the contrary contained herein, a Change of Control Offer may be made in advance of a Change of Control, conditioned upon the consummation of such Change of Control, if a definitive agreement is in place for the Change of Control at the time the Change of Control Offer is made.

 

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(f)                                   The provisions under this Indenture relating to the Issuer’s obligation to make an offer to repurchase the Notes as a result of a Change of Control may be waived or modified with the consent of the holders of a majority in principal amount of the Notes prior to the occurrence of the Change of Control.

 

(g)                                  If and for so long as the Notes are listed on the Official List of the Luxembourg Stock Exchange and admitted for trading on the Euro MTF and the rules of the Luxembourg Stock Exchange so require, the Issuer will publish notices relating to the Change of Control Offer in a leading newspaper of general circulation in Luxembourg (expected to be the Luxemburger Wort) or, to the extent and in the manner permitted by such rules, post such notices on the official website of the Luxembourg Stock Exchange at www.bourse.lu.

 

Section 4.15                             Designation of Restricted and Unrestricted Subsidiaries.

 

(a)                                 The Board of Directors of the Parent may designate any Restricted Subsidiary (other than the Issuer or any successor to the Issuer) to be an Unrestricted Subsidiary if that designation would not cause a Default.  If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the Parent and its Restricted Subsidiaries in the Subsidiary designated as an Unrestricted Subsidiary will be deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under Section 4.07 or under one or more clauses of the definition of Permitted Investments, as determined by the Parent.  That designation will only be permitted if the Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.  The Parent may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation would not cause a Default.

 

(b)                                 Any designation of a Subsidiary of the Parent as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee a copy of a resolution of the Board of Directors of the Parent giving effect to such designation and an Officer’s Certificate certifying that such designation complied with the preceding conditions and was permitted by Section 4.07.  If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary as of such date and, if such Indebtedness is not permitted to be incurred as of such date under Section 4.09, the Parent will be in Default of such covenant.  The Board of Directors of the Parent may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of any outstanding Indebtedness of such Unrestricted Subsidiary, and such designation will only be permitted if (1) such Indebtedness is permitted under the covenant described under Section 4.09, calculated on a pro forma basis as if such designation had occurred at the beginning of the applicable reference period; and (2) no Default or Event of Default would be in existence following such designation.

 

Section 4.16                             Limitation on Issuance of Guarantees of Indebtedness by Restricted Subsidiaries.

 

(a)                                 The Parent will not cause or permit any Restricted Subsidiary (which is not a Guarantor), directly or indirectly, to guarantee, assume or in any other manner become liable with respect to any Indebtedness of any Restricted Subsidiary under the Revolving Credit Facility or the New OeKB Facility or any refinancing Indebtedness in respect thereof, unless such Restricted Subsidiary simultaneously executes and delivers a supplemental indenture to this Indenture providing for a Note Guarantee on the same terms as the other Note Guarantees by the Guarantors except that:

 

(i)                                     such Note Guarantee need not be secured unless the guarantee under the Revolving Credit Facility, the New OeKB Facility or any refinancing Indebtedness in respect thereof is secured;

 

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(ii)                                  if such Indebtedness is by its terms expressly subordinated to the Notes or any Guarantee, any such assumption, guarantee or other liability of such Restricted Subsidiary with respect to such Indebtedness shall be subordinated to such Restricted Subsidiary’s Note Guarantee at least to the same extent as such Indebtedness is subordinated to the Notes or any other Guarantee;

 

(iii)                               no Note Guarantee shall be required if such Guarantee could reasonably be expected to give rise to or result in (A) personal liability for the officers, directors or shareholders of such Restricted Subsidiary, (B) any violation of applicable law that cannot be avoided or otherwise prevented through measures reasonably available to such Restricted Subsidiary or (C) any significant cost, expense, liability or obligation (including with respect to any Taxes) other than reasonable out-of-pocket expenses and other than reasonable expenses incurred in connection with any governmental or regulatory filings required as a result of, or any measures pursuant to clause (B) undertaken in connection with such Guarantee, which cannot be avoided through measures reasonably available to the Restricted Subsidiary; and

 

(iv)                              each such Note Guarantee will be limited as necessary to recognize certain defenses generally available to guarantors (including those that relate to fraudulent conveyance or transfer, voidable preference, financial assistance, corporate purpose, capital maintenance or similar laws, regulations or defenses affecting the rights of creditors generally) or other considerations under applicable law.

 

Section 4.17                             Additional Amounts.

 

(a)                                 All payments made by or on behalf of the Issuer under or with respect to the Notes (whether or not in the form of Definitive Registered Notes) or any of the Guarantors with respect to its Note Guarantee will be made free and clear of and without withholding or deduction for, or on account of, any present or future Taxes unless the withholding or deduction of such Taxes is then required by law.  If any deduction or withholding for, or on account of, any Taxes imposed or levied by or on behalf of any jurisdiction in which the Issuer or any Guarantor (including any successor entity) is then incorporated, engaged in business or resident for tax purposes or any political subdivision thereof or therein or any jurisdiction from or through which payment is made by or on behalf of the Issuer or any Guarantor (including, without limitation, the jurisdiction of any Paying Agent) (each, a “Tax Jurisdiction”) will at any time be required to be made from any payments made by or on behalf of the Issuer under or with respect to the Notes or any of the Guarantors with respect to any Note Guarantee, including, without limitation, payments of principal, redemption price, purchase price, interest or premium, the Issuer or the relevant Guarantor, as applicable, will pay such additional amounts (the “Additional Amounts”) as may be necessary in order that the net amounts received and retained in respect of such payments by each holder (including Additional Amounts) after such withholding, deduction or imposition will equal the respective amounts that would have been received and retained in respect of such payments in the absence of such withholding or deduction; provided, however, that no Additional Amounts will be payable with respect to:

 

(i)                                     any Taxes that would not have been imposed but for the holder or the Beneficial Owner of the Notes being a citizen or resident or national of, incorporated in or carrying on a business, in the relevant Tax Jurisdiction in which such Taxes are imposed or having any other present or former connection with the relevant Tax Jurisdiction other than the mere acquisition, holding, enforcement or the receipt of payment in respect of the Notes or with respect to any Note Guarantee;

 

(ii)                                  any Note presented for payment (where presentation is required) more than 30 days after the relevant payment is first made available for payment to the holder (except to the extent that the holder would have been entitled to Additional Amounts had the Note been presented on the last day of such 30 day period);

 

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(iii)                               any estate, inheritance, gift, sale, transfer, personal property or similar Taxes;

 

(iv)                              any Taxes withheld, deducted or imposed on a payment to an individual and that are required to be made pursuant to European Council Directive 2003/48/EC or any other directive implementing the conclusions of the ECOFIN Council meeting of 26 and 27 November 2000 on the taxation of savings income, or any law implementing or complying with or introduced in order to conform to, such directive;

 

(v)                                 any Note presented for payment by or on behalf of a holder of Notes who would have been able to avoid such withholding or deduction by presenting the relevant Note to another Paying Agent;

 

(vi)                              any Taxes payable other than by deduction or withholding from payments under, or with respect to, the Notes or with respect to any Note Guarantee;

 

(vii)                           any Taxes to the extent such Taxes are imposed or withheld by reason of the failure of the holder or Beneficial Owner of Notes, following the Issuer’s written request addressed with reasonable prior written notice to the holder or Beneficial Owner, to comply with any certification, identification, information or other reporting requirements (to the extent such holder or Beneficial Owner is legally eligible to do so), whether required by statute, treaty, regulation or administrative practice of a Tax Jurisdiction, as a precondition to exemption from, or reduction in the rate of deduction or withholding of, Taxes imposed by the Tax Jurisdiction (including, without limitation, a certification that the holder or Beneficial Owner is not resident in the Tax Jurisdiction); or

 

(viii)                        any combination of items (i) through (vii) above;

 

nor will any Additional Amounts be paid with respect to any Taxes imposed on any payment of principal or interest on the Note or payments under the Note Guarantees in respect thereof to any holder who is either a fiduciary of a Beneficial Owner or a partnership to the extent such principal or interest payment would be required (under the tax laws of the jurisdiction of the Issuer or, if applicable, the tax laws of the jurisdiction of a Guarantor) to be included in the taxable income of either the Beneficial Owner (in the case of a fiduciary) or a partner (in the case of a partnership) if such Beneficial Owner or partner would not have been entitled to such Additional Amounts had such Beneficial Owner or partner been the holder of such Note.

 

(b)                                 In addition to the foregoing, the Issuer and the Guarantors will also pay and indemnify the holder for any present or future stamp, court or documentary taxes, or any other excise or property taxes, charges or similar levies or Taxes which are levied by any Tax Jurisdiction on the execution, delivery, registration or enforcement of any of the Notes, this Indenture, any Note Guarantee, or any Collateral Documents.

 

(c)                                  If the Issuer or any Guarantor, as the case may be, becomes aware that it will be obligated to pay Additional Amounts with respect to any payment under or with respect to the Notes or any Note Guarantee, each of the Issuer or the relevant Guarantor, as the case may be, will deliver to the Trustee on a date that is at least 30 days prior to the date of that payment (unless the obligation to pay Additional Amounts arises less than 45 days prior to that payment date, in which case the Issuer or the relevant Guarantor shall notify the Trustee promptly thereafter) an Officer’s Certificate stating the fact that Additional Amounts will be payable and the amount estimated to be so payable.  The Officer’s Certificates must also set forth any other information reasonably necessary to enable the Paying Agents to pay Additional Amounts to holders on the relevant payment date.  The Trustee shall be entitled to rely solely on such an Officer’s Certificate as conclusive proof that such payments are necessary.

 

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(d)                                 Upon written request the Issuer or the relevant Guarantor will provide to the Trustee copies of receipts or, if such receipts are not obtainable, other documentation reasonably satisfactory to the Trustee evidencing the payment of any Taxes so deducted or withheld.  Upon request, copies of those receipts or other documentation, as the case may be, will be made available by the Trustee to the holders of the Notes.

 

(e)                                  Whenever in this Indenture there is mentioned, in any context, the payment of amounts based upon the principal amount of the Notes or of principal, interest or of any other amount payable under, or with respect to, any of the Notes, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof.

 

Section 4.18                             Maintenance of Listing.

 

The Issuer will use its commercially reasonable efforts to maintain the listing of the Notes on the Official List of the Luxembourg Stock Exchange for so long as such Notes are outstanding; provided that if at any time the Issuer determines that it will not maintain such listing, it will obtain prior to the delisting of the Notes from the Official List of the Luxembourg Stock Exchange, and thereafter use its commercially reasonable efforts to maintain, a listing of such Notes on another recognized stock exchange or exchange regulated market in Western Europe.

 

Section 4.19                             No Impairment of Security Interests.

 

(a)                                 The Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, take or knowingly or negligently omit to take, any action which action or omission might or would have the result of materially impairing the security interest with respect to the Collateral (it being understood that the incurrence of Liens on the Collateral permitted by the definition of Permitted Collateral Liens shall under no circumstances be deemed to materially impair the security interest with respect to the Collateral) for the benefit of the Trustee and the holders of the Notes, and the Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, grant to any Person other than the Security Agent, for the benefit of the Trustee and the holders of the Notes and the other beneficiaries described in the Collateral Documents and the Intercreditor Agreement, any interest whatsoever in any of the Collateral.

 

(b)                                 Notwithstanding Section 4.19(a) (1) nothing in this provision shall restrict the discharge or release of the Collateral in accordance with this Indenture, the Collateral Documents and the Intercreditor Agreement and (2) the Parent and its Restricted Subsidiaries may incur Permitted Collateral Liens.

 

(c)                                  At the direction of the Issuer and without the consent of the holders of the Notes, the Trustee and the Security Agent may from time to time enter into one or more amendments to the Collateral Documents to: (i) cure any ambiguity, omission, defect or inconsistency therein, (ii) provide for Permitted Collateral Liens, (iii) comply with the terms of the Intercreditor Agreement, (iv) add to the Collateral, (v) evidence the succession of another Person to the Issuer or a Guarantor and the assumption by such successor of the obligations under this Indenture, the Notes, the applicable Note Guarantee and the Collateral Documents, in each case, in accordance with Section 5.01, (vi) provide for the release of property and assets constituting Collateral from the Lien of the Collateral Documents or the release of the Guarantee of a Guarantor, in each case, in accordance with (and if permitted by) the terms of this Indenture, (vii) conform the Collateral Documents to the description in the Offering Memorandum, (viii) evidence and provide for the acceptance of the appointment of a successor Trustee or Security Agent or (ix) make any other change thereto that does not adversely affect the holders of the Notes in any material respect; provided, however, that except for the reasons specified in clauses (i) through (ix), no Collateral Document may be amended, extended, renewed, restated, supplemented or otherwise modified or replaced (including by releasing and retaking a Lien over the Collateral), unless contemporaneously with such amendment, extension, replacement

 

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(including by releasing and retaking a Lien over the Collateral), restatement, supplement, modification or renewal, the Issuer delivers to the Trustee either (A) a solvency opinion, in form and substance reasonably satisfactory to the Trustee, or a certificate of the Board of Directors of the Parent, confirming the solvency of the Parent and its Subsidiaries, taken as a whole, after giving effect to any transactions related to such amendment, extension, renewal, supplement, modification or replacement or (B) an opinion of counsel, in form and substance reasonably satisfactory to the Trustee (subject to customary exceptions and qualifications), confirming that, after giving effect to any transactions related to such amendment, extension, renewal, restatement, supplement, modification or replacement (including by releasing and retaking a Lien over the Collateral), the Lien or Liens securing the Notes created under the Collateral Documents so amended, extended, renewed, restated, supplemented, modified or replaced are, to the extent applicable, valid and perfected Liens not otherwise subject to any limitation, imperfection or new hardening period, in equity or at law, that such Lien or Liens were not otherwise subject to immediately prior to such amendment, extension, renewal, restatement, supplement, modification or replacement.  In the event that the Issuer complies with Section 4.19, the Trustee and the Security Agent shall (subject to customary protections and indemnifications) consent to such amendment, extension, renewal, restatement, supplement, modification or replacement with no need for instructions from the Holders of the Notes.

 

Section 4.20                             Payments for Consent.

 

The Parent will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Notes unless such consideration is offered to all the Holders of the Notes and is paid to all the Holders of the Notes that so consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement.

 

Notwithstanding the foregoing, the Parent and its Restricted Subsidiaries shall be permitted, in any offer or payment of consideration for, or as an inducement to, any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Notes, to exclude holders of the Notes in any jurisdiction where (a) the solicitation of such consent, waiver or amendment, including in connection with an exchange offer or offer to purchase for cash, or (b) the payment of the consideration therefor (x) would require the Parent or any of its Restricted Subsidiaries to file a registration statement, prospectus or similar document under any applicable securities laws (including, but not limited to, the United States federal securities laws and the laws of the European Union or its member states), which the Parent in its sole discretion determines (acting in good faith) would be materially burdensome (it being understood that it would not be materially burdensome to file the consent documents used in other jurisdictions, any substantially similar documents or any summary thereof with the securities or financial services authorities in such jurisdiction if such filing is not subject to any separate substantive review by such authorities); or (y) such solicitation would otherwise not be permitted under applicable law in such jurisdiction.

 

Section 4.21                             Suspension of Certain Covenants when Notes Rated Investment Grade

 

If on any date following the Issue Date (i) the Notes have achieved Investment Grade Status; and (ii) no Default or Event of Default has occurred and is continuing on such date, then, beginning on that day and continuing until such time, if any, at which the Notes cease to have Investment Grade Status (such period, the “Suspension Period”) as a result of the release of Collateral or otherwise, Sections 4.07 through 4.11, Section 4.15, Section 4.19, clause (iv) of Section 5.01(a) and clause (iv) of Section 5.01(b) will no longer be applicable to the Notes and any related default provisions of this Indenture will cease to be effective and will not be applicable to the Parent and its Restricted Subsidiaries.

 

Such covenants and any related default provisions will again apply according to their terms from the first day after the Suspension Period ends. Such covenants will not, however, be of any

 

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effect with regard to the actions of the Parent and the Restricted Subsidiaries properly taken during the continuance of the Suspension Period; provided that (1) with respect to the Restricted Payments made after the end of the Suspension Period, the amount of Restricted Payments will be calculated as though Section 4.07 had been in effect prior to, but not during, the Suspension Period, (2) all Indebtedness incurred, or Disqualified Stock or preferred stock issued, during the Suspension Period will be classified as having been incurred or issued pursuant to Section 4.09(b)(ii) and (3) all Liens incurred during the Suspension Period pursuant to Section 4.12(b) will be deemed to have existed on the Issue Date and to have been incurred pursuant to clause (6) of the definition of “Permitted Liens”. Upon the occurrence of a Suspension Period, the amount of Excess Proceeds shall be reset to zero.

 

ARTICLE 5
 SUCCESSORS

 

Section 5.01                             Merger, Consolidation or Sale of Assets.

 

(a)                                 The Parent will not, directly or indirectly (1) consolidate or merge with or into another Person (whether or not the Parent is the surviving corporation), or (2) sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the properties or assets of the Parent and its Subsidiaries which are Restricted Subsidiaries taken as a whole, in one or more related transactions, to another Person, unless:

 

(i)                                     either (1) the Parent is the surviving corporation; or (2) the Person formed by or surviving any such consolidation or merger (if other than the Parent) or to which such sale, assignment, transfer, conveyance, lease or other disposition has been made is an entity organized or existing under the laws of any member state of the European Union, Switzerland, South Africa, Canada, any state of the United States or the District of Columbia;

 

(ii)                                  the Person formed by or surviving any such consolidation or merger (if other than the Parent) or the Person to which such sale, assignment, transfer, conveyance, lease or other disposition has been made assumes all the obligations of the Parent under the Notes, the Note Guarantee, this Indenture, the Intercreditor Agreement and the Collateral Documents;

 

(iii)                               immediately after such transaction, no Default or Event of Default exists;

 

(iv)                              the Parent or the Person formed by or surviving any such consolidation or merger (if other than the Parent), or to which such sale, assignment, transfer, conveyance, lease or other disposition has been made would, on the date of such transaction after giving pro forma effect thereto and any related financing transactions, as if the same had occurred at the beginning of the applicable four-quarter period (1) be permitted to incur at least US$1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a) or (2) have a Fixed Charge Coverage Ratio not less than it was immediately prior to giving effect to such transaction; and

 

(v)                                 the Parent delivers to the Trustee an Officer’s Certificate and Opinion of Counsel, in each case, stating that such consolidation, merger or transfer comply with this Section 5.01(a).

 

(b)                                 The Issuer will not, directly or indirectly (1) consolidate or merge with or into another Person (whether or not the Issuer is the surviving corporation), or (2) sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the properties or assets of the Issuer and its Subsidiaries which are Restricted Subsidiaries taken as a whole, in one or more related transactions, to another Person, unless:

 

(i)                                     either (1) the Issuer is the surviving corporation; or (2) the Person formed by or surviving any such consolidation or merger (if other than the Issuer) or to which such sale,

 

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assignment, transfer, conveyance, lease or other disposition has been made is an entity organized or existing under the laws of any member state of the European Union, Switzerland, South Africa, Canada, any state of the United States or the District of Columbia;

 

(ii)                                  the Person formed by or surviving any such consolidation or merger (if other than the Issuer) or the Person to which such sale, assignment, transfer, conveyance, lease or other disposition has been made assumes all the obligations of the Issuer under the Notes, this Indenture, the Intercreditor Agreement and the Collateral Documents;

 

(iii)                               immediately after such transaction, no Default or Event of Default exists;

 

(iv)                              the Issuer or the Person formed by or surviving any such consolidation or merger (if other than the Issuer), or to which such sale, assignment, transfer, conveyance, lease or other disposition has been made would, on the date of such transaction after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the applicable four-quarter period (i) be permitted to incur at least US$1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a) or (ii) have a Fixed Charge Coverage Ratio not less than it was immediately prior to giving effect to such transaction; and

 

(v)                                 the Issuer delivers to the Trustee an Officer’s Certificate and Opinion of Counsel, in each case, stating that such consolidation, merger or transfer comply with this Section 5.01(b).

 

(c)                                  A Guarantor (other than a Guarantor whose Note Guarantee is to be released in accordance with the terms of the Note Guarantee and Article 11 hereof) will not, directly or indirectly:  (1) consolidate or merge with or into another Person (whether or not such Guarantor is the surviving corporation), or (2) sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the properties or assets of such Guarantor and its Subsidiaries which are Restricted Subsidiaries taken as a whole, in one or more related transactions, to another Person, unless:

 

(i)                                     either (1) such Guarantor is the surviving corporation; or (2) the Person formed by or surviving any such consolidation or merger (if other than such Guarantor) or to which such sale, assignment, transfer, conveyance, lease or other disposition has been made is an entity organized or existing under the laws of any member state of the European Union, Switzerland, South Africa, Canada, Hong Kong, any state of the United States or the District of Columbia;

 

(ii)                                  the Person formed by or surviving any such consolidation or merger (if other than such Guarantor) or the Person to which such sale, assignment, transfer, conveyance, lease or other disposition has been made assumes all the obligations of such Guarantor under the Notes, the Note Guarantee, this Indenture, the Intercreditor Agreement and the Collateral Documents;

 

(iii)                               immediately after giving pro forma effect to such transaction (and treating any Indebtedness which becomes an obligation of the surviving corporation as a result of such transaction as having been incurred by the surviving corporation at the time of such transaction), no Default or Event of Default exists; or

 

(iv)                              the Parent delivers to the Trustee an Officer’s Certificate and Opinion of Counsel, in each case, stating that such consolidation, merger or transfer comply with this Section 5.01(c).

 

(d)                                 This Section 5.01 will not apply to any sale, assignment, transfer, conveyance, lease or other disposition of assets, or consolidation or merger among the Issuer and the Guarantors or

 

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among any Guarantors; provided that, if the Issuer is not the surviving entity, the relevant Guarantor will assume the obligations of the Issuer under this Indenture, the Intercreditor Agreement and (to the extent applicable), the Collateral Documents. Section 5.01(a)(iii) and (iv), Section 5.01(b)(iii) and Section 5.01(c)(iii) hereof will not apply to any merger or consolidation of the Parent, the Issuer or any Guarantors with or into an Affiliate solely for the purpose of reincorporating the Parent, the Issuer or such Guarantor in another jurisdiction.

 

Section 5.02                             Successor Corporation Substituted.

 

Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the properties or assets of the Issuer or the Parent, any other Guarantor or their respective Restricted Subsidiaries, in a transaction that is subject to, and that complies with the provisions of, Section 5.01, the successor Person formed by such consolidation or into or with which the Issuer, the Parent or any other Guarantor, as applicable, is merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition, the provisions of this Indenture referring to the “Parent”, the “Issuer” or the “Guarantor”, as applicable, shall refer instead to the successor Person and not to the Parent, the Issuer or the Guarantor, as applicable), and may exercise every right and power of the predecessor Parent, the Issuer or the Guarantor, as applicable, under this Indenture with the same effect as if such successor Person had been named as the Parent, the Issuer or Guarantor, as applicable, herein and the predecessor Issuer, Parent or Guarantor, as applicable, shall be discharged from all obligations under the Notes, the Note Guarantees, this Indenture and the Collateral Documents, as applicable; provided, however, that the predecessor Parent shall not be relieved from the obligation to pay the principal of and interest on the Notes except in the case of a sale, conveyance, transfer or lease of all of the assets of or a consolidation or merger of the Parent in a transaction that is subject to, and that complies with the provisions of, Section 5.01.

 

ARTICLE 6
 DEFAULTS AND REMEDIES

 

Section 6.01                             Events of Default and Remedies.

 

Each of the following is an “Event of Default” under this Indenture:

 

(i)                                     default for 30 days in the payment when due of interest or Additional Amounts, if any, with respect to, the Notes;

 

(ii)                                  default in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on, the Notes;

 

(iii)                               failure by the Issuer to make a Change of Control Offer or Asset Sale Offer or to purchase Notes in accordance with Section 4.10 or Section 4.14 or failure by the Issuer or the relevant Guarantor for 30 days after written notice to the Parent by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, voting as a single class, to comply with any other provision described in Section 4.10 or Section 4.14;

 

(iv)                              failure by the Parent, the Issuer or relevant Guarantor to comply with Section 5.01;

 

(v)                                 failure by the Parent, the Issuer or relevant Guarantor for 60 days after written notice to the Parent by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, voting as a single class, to comply with any of the agreements in this Indenture (other than a default in performance, or breach, or a

 

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covenant or agreement which is specifically dealt with in clauses (i), (ii), (iii) or (iv) of this Section 6.01), the Notes or the Note Guarantee;

 

(vi)                              default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Parent or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Parent or any of its Restricted Subsidiaries), whether such Indebtedness or Guarantee exists on, or is created after, the Issue Date, if that default:

 

(A)                               is caused by a failure to pay principal of such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or

 

(B)                               results in the acceleration of such Indebtedness prior to its express maturity,

 

and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated aggregates US$25.0 million or more;

 

(vii)                           failure by the Parent or any Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, to pay final judgments entered by a court or courts of competent jurisdiction aggregating in excess of US$25.0 million (exclusive of any amounts that an insurance company has acknowledged liability for), which final judgments shall not have been discharged or waived and there shall have been a period of 60 consecutive days during which a stay of enforcement of such judgment or order, by reason of an appeal, waiver or otherwise, shall not have been in effect;

 

(viii)                        any security interest created by the Collateral Documents ceases to be in full force and effect (except as permitted by the terms of this Indenture, the Intercreditor Agreement or the Collateral Documents or pursuant to limitations on enforceability, validity or effectiveness imposed by applicable law) with respect to Collateral having a Fair Market Value in excess of US$5.0 million or an assertion by the Parent or any of its Restricted Subsidiaries, in any pleading in any court of competent jurisdiction, that any Collateral having a Fair Market Value in excess of US$5.0 million is not subject to a valid, perfected security interest (except in accordance with the terms of this Indenture, the Intercreditor Agreement or the Collateral Documents or pursuant to limitations on enforceability, validity or effectiveness imposed by applicable law);

 

(ix)                              except as permitted by this Indenture (including with respect to any limitations) or pursuant to limitations on enforceability, validity or effectiveness imposed by applicable law, any Note Guarantee of the Parent or a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or the Parent or any Guarantor which is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, or any Person acting on behalf of any such Guarantor, denies or disaffirms its obligations under its Note Guarantee;

 

(x)                                 the Issuer, the Parent or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

 

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(A)                               commences a voluntary case;

 

(B)                               consents to the entry of an order for relief against it in an involuntary case;

 

(C)                               consents to the appointment of a custodian of it or for all or substantially all of its property;

 

(D)                               makes a general assignment for the benefit of its creditors; or

 

(E)                                admits in writing its inability to pay its debts generally as they become due; and

 

(xi)                              a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A)                               is for relief against the Parent, the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary in an involuntary case;

 

(B)                               appoints a custodian or administrator of the Parent, the Issuer, or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property of the Parent, the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; or

 

(C)                               orders the liquidation of the Parent, the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary;

 

and the order or decree remains unstayed and in effect for 60 consecutive days.

 

Section 6.02                             Acceleration.

 

(a)                                 In the case of an Event of Default specified in clause (x) or (xi) of Section 6.01, with respect to the Parent or the Issuer, all outstanding Notes will become due and payable immediately without further action or notice.  If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately and may instruct the Security Agent to enforce any Collateral pursuant to the terms of the Intercreditor Agreement.

 

(b)                                 In the event of a declaration of acceleration of the Notes because an Event of Default described in clause (vi) of Section 6.01 has occurred and is continuing, the declaration of acceleration of the Notes shall be automatically annulled if the event of default or payment default triggering such Event of Default pursuant to clause (vi) shall be remedied or cured, or waived by the holders of the Indebtedness that gave rise to such Event of Default, or such Indebtedness shall have been discharged in full, within 30 days after the declaration of acceleration with respect thereto and if (a) the annulment of the acceleration of the Notes would not conflict with any judgment or decree of a court of competent jurisdiction and (b) all existing Events of Default, except nonpayment of principal, premium, interest, or Additional Amounts, if any, on the Notes that became due solely because of the acceleration of the Notes, have been cured or waived.

 

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Section 6.03                             Other Remedies.

 

If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of, interest, premium and Additional Amounts, if any, on the Notes or to enforce the performance of any provision of this Indenture.

 

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent permitted by law.

 

Section 6.04                             Waiver of Past Defaults.

 

The Holders of not less than a majority in aggregate principal amount of the Notes outstanding may, on behalf of the holders of all outstanding Notes, waive any past Default under this Indenture and its consequences, except a continuing Default in the payment of the principal of, premium, if any, any Additional Amounts or interest on any Note held by a non-consenting holder (which may only be waived with the consent of Holders of the Notes holding at least 90% of the aggregate principal amount of the Notes outstanding under this Indenture) and except as set forth in the fourth paragraph of Section 9.02.

 

Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Prior to taking any action hereunder, the Trustee shall be entitled to indemnification or other security satisfactory to it in its sole discretion against all losses, liabilities and expenses caused by taking or not taking such action.

 

Section 6.05                             Control by Majority.

 

Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal liability.

 

Section 6.06                             Limitation on Suits.

 

Subject to the provisions of this Indenture relating to the duties of the Trustee, in case an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or powers under this Indenture at the request or direction of any Holders of the Notes unless such Holders have offered to the Trustee indemnity or security satisfactory to the Trustee against any loss, liability or expense.  Except (subject to Article 9 hereof) to enforce the right provided under Section 6.07 to receive payment of principal, premium, if any, or interest or Additional Amounts when due, no Holder of a Note may pursue any remedy with respect to this Indenture or the Notes unless:

 

(i)                                     such Holder of a Note gives the Trustee notice that an Event of Default is continuing;

 

(ii)                                  the Holders of at least 25% in aggregate principal amount of the then outstanding Notes make a request to the Trustee to pursue the remedy;

 

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(iii)                               such Holder of a Note offers the Trustee indemnity or security satisfactory to the Trustee against any loss, liability or expense;

 

(iv)                              the Trustee does not comply with such request within 60 days after the receipt of the request and the offer of security or indemnity; and

 

(v)                                 during such 60-day period, the Holders of a majority of the aggregate principal amount of the then outstanding Notes do not give the Trustee a direction inconsistent with the request.

 

A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority over another Holder of a Note.

 

Section 6.07                             Rights of Holders of Notes to Receive Payment.

 

Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal of, interest and premium, Additional Amounts, if any, on the Note, on or after the respective due dates expressed in the Note (including in connection with an offer to purchase), or to bring proceedings for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of Holders of not less than 90% of the then outstanding aggregate principal amount of the Notes.

 

Section 6.08                             Collection Suit by Trustee.

 

If an Event of Default specified in Section 6.01 occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Issuer for the whole amount of principal of, interest and premium then owing, Additional Amounts, if any, on the Notes and interest on overdue principal and, to the extent lawful, Additional Amounts, interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09                             Trustee May File Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Issuer, a Guarantor or any other obligor upon the Notes, their creditors or property and shall be entitled and empowered to collect, receive and distribute any money or other property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.06.  To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.06 out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

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Section 6.10                             Priorities.

 

Subject to the terms of the Intercreditor Agreement, all moneys received by the Trustee under this Indenture shall be held by the Trustee in trust to apply them (subject to any legal privilege (if any) pursuant to any applicable Bankruptcy Law or any other applicable law):

 

First:  to the Trustee, its agents and attorneys for amounts due under Section 7.06, including payment of all compensation, expense and liabilities incurred, and all advances, if any, made, by the Trustee and the costs and expenses of collection;

 

Second:  to Holders of Notes for amounts due and unpaid on the Notes, on the principal of, or premium, interest, Additional Amounts, if any, on the Notes, pari passu and ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes, on the principal of, premium, interest, Additional Amounts, if any, respectively; and

 

Third:  to the Issuer, the Parent or to such party as a court of competent jurisdiction shall direct.

 

The Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this Section 6.10.

 

Section 6.11                             Undertaking for Costs.

 

In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a suit by the Trustee.

 

Section 6.12                             Agents

 

The Trustee shall be entitled to require all Paying Agents to act under its direction following the occurrence and continuance of a Default or Event of Default.

 

ARTICLE 7
 TRUSTEE

 

Section 7.01                             Duties of Trustee.

 

(a)                                 If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 

(b)                                 Except during the continuance of an Event of Default:

 

(i)                                     the duties of the Trustee shall be determined solely by the express provisions of this Indenture and the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(ii)                                  in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this

 

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Indenture.  However, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(c)                                  The Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that:

 

(i)                                     this Section 7.01(c) does not limit the effect of Section 7.01(b);

 

(ii)                                  the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(iii)                               the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05.

 

(d)                                 Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

 

(e)                                  No provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability.  The Trustee shall be under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder shall have offered to the Trustee security and/or indemnity satisfactory to it against any loss, liability or expense.

 

(f)                                   The Trustee shall not be liable for interest on any money received by it or to make any investments except as the Trustee may agree in writing with the Issuer.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

Section 7.02                             Rights of Trustee.

 

(a)                                 The Trustee may conclusively rely upon and will be protected in acting or refraining from acting upon, whether in its original, facsimile or other electronic form, any document reasonably believed by it to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or matter stated in the document (regardless of whether any such document is subject to any monetary or other limit).

 

(b)                                 Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel or both.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel, as the case may be.  The Trustee may consult with professional advisors (including counsel) and the advice or written advice of such professional adviser or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(c)                                  The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care, nor for the negligence of the Security Agent.

 

(d)                                 The Trustee shall not be liable for any action it takes or omits to take in good faith that it reasonably believes to be authorized or within the rights or powers conferred upon it by this Indenture.

 

(e)                                  Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Issuer shall be sufficient if signed by an Officer of the Issuer.

 

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(f)                                   The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holders shall have offered to the Trustee security and/or indemnity (deemed to be sufficient in the Trustee’s sole discretion) against the losses, liabilities and expenses that might be incurred by it in compliance with such request or direction.

 

(g)                                  The Trustee shall have no duty to inquire as to the performance of the covenants of the Issuer and/or its Restricted Subsidiaries in Article 4.  In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of Default except:  (i) any Event of Default occurring pursuant to Section 6.01(i) or 6.01(ii) (provided it is acting as Paying Agent); and (ii) any Default or Event of Default of which a Responsible Officer in the Corporate Trust office of the Trustee shall have received written notification.  Delivery of reports, information and documents to the Trustee under Section 4.03 is for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s compliance with any of their covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

 

(h)                                 The Trustee shall not have any obligation or duty to monitor, determine or inquire as to compliance, and shall not be responsible or liable for compliance with restrictions on transfer, exchange, redemption, purchase or repurchase, as applicable, of minimum denominations imposed under this Indenture or under applicable law or regulation with respect to any transfer, exchange, redemption, purchase or repurchase, as applicable, of any interest in any Notes.

 

(i)                                     The rights, privileges, protections, immunities and benefits given to the Trustee, including its right to be indemnified and/or secured, are extended to, and shall be enforceable by The Bank of New York Mellon in each of its capacities hereunder and by The Bank of New York Mellon (Luxembourg) S.A. and each agent, custodian and other person employed to act hereunder.  Absent willful misconduct or gross negligence, each Paying Agent, Registrar and Transfer Agent shall not be liable for acting in good faith on instructions believed by it to be genuine and from the proper party.

 

(j)                                    In the event the Trustee receives inconsistent or conflicting requests and indemnity from two or more groups of Holders, each representing less than a majority in aggregate principal amount of the Notes then outstanding, pursuant to the provisions of this Indenture, the Trustee, in its sole discretion, may determine what action, if any, will be taken and shall not incur any liability for its failure to act until such inconsistency or conflict is, in its reasonable opinion, resolved.

 

(k)                                 In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by acts of war or terrorism involving the United States, the United Kingdom or any member state of the European Monetary Union or any other national or international calamity or emergency (including natural disasters or acts of God), it being understood that the Trustee shall use commercially reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

(l)                                     The Trustee is not required to give any bond or surety with respect to the performance or its duties or the exercise of its powers under this Indenture or the Notes.

 

(m)                             The permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

 

(n)                                 The Trustee will not be liable to any person if prevented or delayed in performing any of its obligations or discretionary functions under this Indenture by reason of any present or future law applicable to it, by any governmental or regulatory authority or by any circumstances beyond its control.

 

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(o)                                 The Trustee shall not be liable for any consequential loss (being loss of business, goodwill, opportunity or profit of any kind) of the Issuer, the Parent, any Restricted Subsidiary or any other Person (or, in each case, any successor thereto), even if advised of it in advance and even if foreseeable.

 

(p)                                 The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer personally or by agent or attorney.

 

(q)                                 The Trustee may request that the Issuer deliver an Officer’s Certificate setting forth the names of the individuals and/or titles of officers authorized (and specimen signatures) at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded.

 

Section 7.03                             Individual Rights of Trustee.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or any Affiliate of the Issuer with the same rights it would have if it were not Trustee.  However, in the event that the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days or resign.  Any Agent may do the same with like rights and duties.  The Trustee is also subject to Section 7.09.

 

Section 7.04                             Trustee’s Disclaimer.

 

The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Notes, any Note Guarantee, the Intercreditor Agreement (or any additional intercreditor agreement entered into in accordance with the terms of the Intercreditor Agreement or this Indenture), the Collateral, or the Collateral Documents, it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.  The Trustee shall be entitled to assume without inquiry that the Issuer has performed in accordance with all the provisions in this Indenture, unless notified to the contrary.

 

Section 7.05                             Notice of Defaults.

 

Subject to Section 7.02(g), if a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of Notes a notice of the Default or Event of Default within 90 days after it occurs.  The Trustee may withhold from holders of the Notes notice of any continuing Default or Event of Default if it determines that withholding notice is in their interest, except a Default or Event of Default relating to the payment of principal, interest or Additional Amounts or premium, if any.

 

Section 7.06                             Compensation and Indemnity.

 

(a)                                 The Issuer and each Guarantor, jointly and severally, shall pay to the Trustee from time to time compensation for its acceptance of this Indenture and services hereunder in accordance with the Trustee’s signed fee letter.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Issuer and each Guarantor, jointly and severally, shall reimburse the Trustee promptly upon request for all disbursements, advances (if any) and

 

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expenses incurred or made by it in addition to the compensation for its services.  Such expenses shall include the compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

(b)                                 The Issuer and each Guarantor shall indemnify the Trustee (which for purposes of this Section 7.06 shall include its officers, directors, employees and agents) against any and all losses, liabilities or expenses incurred by it arising out of, or in connection with, the acceptance or administration of its duties under this Indenture, any Supplemental Indenture the Notes, any Intercreditor Agreement, any Collateral Agreement or in any other role performed by The Bank of New York Mellon under said documents, including the costs and expenses of enforcing this Indenture against the Issuer and any Guarantor (including this Section 7.06) and defending itself against any claim (whether asserted by the Issuer or any Guarantor or any Holder or any other person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be attributable to its willful misconduct, negligence or bad faith.  The Trustee shall notify the Issuer promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the Issuer shall not relieve the Issuer or any Guarantor of its obligations hereunder.  The Issuer or such Guarantor shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the Issuer shall pay the fees and expenses of such counsel.  Neither the Issuer nor any Guarantor need pay for any settlement made without its consent, which consent shall not be unreasonably withheld.

 

(c)                                  The obligations of the Issuer and the Guarantors under this Section 7.06 shall survive the satisfaction and discharge of this Indenture, and the resignation or removal of the Trustee hereunder.

 

(d)                                 To secure the Issuer’s and the Guarantors’ payment obligations in this Section 7.06, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal of, interest, premium, Additional Amounts, if any, on particular Notes.  Such Lien shall survive the satisfaction and discharge of this Indenture.

 

(e)                                  When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01 occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law.

 

For the avoidance of doubt, the rights, privileges, protections, immunities and benefits given, to the Trustee in this Section 7.06, including its right to be indemnified, are extended to, and shall be enforceable by The Bank of New York Mellon, as the Trustee and in each of its other capacities hereunder, and by each agent (including The Bank of New York Mellon (Luxembourg) S.A.), the Custodian and other Person employed by the Trustee to act hereunder.

 

Section 7.07                             Replacement of Trustee.

 

(a)                                 A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.07.

 

(b)                                 The Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Issuer.  The Holders of a majority in aggregate principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Issuer in writing.  The Issuer may remove the Trustee if:

 

(i)                                     the Trustee fails to comply with Section 7.09;

 

(ii)                                  the Trustee is adjudged bankrupt or insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

 

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(iii)                               a custodian or public officer takes charge of the Trustee or its property; or

 

(iv)                              the Trustee becomes incapable of acting.

 

(c)                                  If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Issuer shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the Holders of a majority in aggregate principal amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Issuer.

 

(d)                                 If a successor Trustee does not take office within 60 calendar days after the retiring Trustee gives notice of resignation or is removed, the retiring Trustee, the Issuer, or the Holders of at least 10% in aggregate principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee at the expense of the Issuer.

 

(e)                                  If the Trustee, after written request by any Holder who has been a Holder for at least six months, fails to comply with Section 7.09, such Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

 

(f)                                   A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuer.  Thereupon, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of its succession to the Holders.  The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, provided all sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.06.  Notwithstanding replacement of the Trustee pursuant to this Section 7.07, the Issuer’s obligations under Section 7.06 shall continue for the benefit of the retiring Trustee.

 

Section 7.08                             Successor Trustee by Merger, etc.

 

If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee.

 

Section 7.09                             Eligibility; Disqualification.

 

There shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $50 million as set forth in its most recent published annual report of condition.

 

ARTICLE 8
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01                             Option to Effect Legal Defeasance or Covenant Defeasance.

 

The Issuer may at any time, at its option evidenced by a resolution of its Board of Directors set forth in an Officer’s Certificate, elect to have either Section 8.02 or 8.03 be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article 8.

 

Section 8.02                             Legal Defeasance and Discharge.

 

(a)                                 Upon the Issuer’s exercise under Section 8.01 of the option applicable to this Section 8.02, the Issuer and each of the Guarantors, subject to the satisfaction of the conditions set forth in Section 8.04, will be deemed to have been discharged from their obligations with respect to all

 

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outstanding Notes (including the Note Guarantee) issued under this Indenture and to have cured all then existing Events of Default on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Issuer and the Guarantors shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes (including the Note Guarantee) and with respect to the Guarantors the Collateral Documents to which it is party, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 and the other Sections of this Indenture referred to in clauses (a)(i) and (ii) below, and to have satisfied all their other obligations under this Indenture and the Notes, the Note Guarantees, and with respect to the Guarantors the Collateral Documents to which it is party (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:

 

(i)                                     the rights of Holders of outstanding Notes to receive payments in respect of the principal of, or interest (including Additional Amounts and premium, if any), on such Notes when such payments are due from the trust referred to in Section 8.04;

 

(ii)                                  the Issuer’s obligations with respect to such Notes under Article 2 and Section 4.02;

 

(iii)                               the rights, powers, trusts, duties and immunities of the Trustee, and the Issuer’s and the Guarantors’ obligations in connection therewith; and

 

(iv)                              this Article 8;

 

(b)                                 Subject to compliance with this Article 8, the Issuer may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03.

 

Section 8.03                             Covenant Defeasance.

 

Upon the Issuer’s exercise under Section 8.01 of the option applicable to this Section 8.03, the Issuer and the Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.04, be released from their respective obligations under the covenants contained in Article 4 (other than Sections 4.01 and 4.04) and Section 5.01(other than Section 5.01(b)(i), (ii) and (iii)) with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means that the Issuer and the Guarantors may, with respect to the outstanding Notes and Note Guarantee and with respect to the Guarantors the Collateral Documents to which it is party, omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01, but, except as specified above, the remainder of this Indenture and such Notes, Note Guarantee and Collateral Documents shall be unaffected thereby.  In addition, upon the Issuer’s exercise under Section 8.01 of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04, the Events of Default set forth in Section 6.01 (except those relating to payments on the Notes or, solely with respect to the Issuer, clause (x) of Section 6.01) shall not constitute Events of Default.

 

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Section 8.04                             Conditions to Legal or Covenant Defeasance.

 

In order to exercise either Legal Defeasance or Covenant Defeasance with respect to the Notes issued under this Indenture:

 

(i)                                     the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of the holders of the Notes, cash in U.S. Dollars, non-callable U.S. Government Obligations or a combination of cash in U.S. Dollars and non-callable U.S. Government Obligations, in amounts as will be sufficient, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants, to pay the principal of, or interest (including Additional Amounts and premium, if any) on the outstanding Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the Issuer must specify whether the Notes are being defeased to such stated date for payment or to a particular redemption date;

 

(ii)                                  in the case of an election under Section 8.02, the Issuer must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee of United States counsel confirming that (a) the Issuer has received from, or there has been published by, the U.S. Internal Revenue Service a ruling or (b) since the Issue Date, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel will confirm that, the Holders of the outstanding Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Legal Defeasance and will be subject to tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

(iii)                               in the case of an election under Section 8.03, the Issuer must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee of United States counsel confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Covenant Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

(iv)                              the Issuer must deliver to the Trustee an Officer’s Certificate stating that the deposit was not made by the Issuer with the intent of preferring the Holders of the Notes over the other creditors of the Issuer with the intent of defeating, hindering, delaying or defrauding any creditors of the Issuer or others; and

 

(v)                                 the Issuer must deliver to the Trustee an Officer’s Certificate and an Opinion of Counsel reasonably acceptable to the Trustee, subject to customary assumptions and qualifications, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.05                             Deposited Money and U.S. Government Obligations Held in Trust; Other Miscellaneous Provisions.

 

(a)                                 Subject to Section 8.06, all money and non-callable U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as Paying Agent) as the Trustee may determine, to the Holders of the Notes of all sums due and to become due thereon in respect of principal, interest, premium or Additional Amounts, if any, but such money need not be segregated from other funds except to the extent required by law.

 

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(b)                                 The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or U.S. Government Obligations deposited pursuant to Section 8.04 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

 

(c)                                  Notwithstanding anything in this Article 8 to the contrary, the Trustee shall deliver or pay to the Issuer from time to time upon the request of the Issuer any money or non-callable U.S. Government Obligations held by it as provided in Section 8.04 which, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(i)), are in excess of the amount thereof that would then be required to be deposited to effect a Legal Defeasance or Covenant Defeasance, as applicable, of the type and scope originally effected by the Issuer pursuant to this Article 8.

 

(d)                                 If the funds deposited with the Trustee to effect Legal Defeasance or Covenant Defeasance are insufficient to pay the principal of, premium, if any, and interest on the Notes when due because of any acceleration occurring after an Event of Default, then the Issuer and the Guarantors shall remain liable for such payments.

 

Section 8.06                             Repayment to Issuer.

 

Any money deposited with the Trustee or any Paying Agent, or then held by the Issuer, in trust for the payment of the principal of, interest, premium or Additional Amounts, if any, on any Note and remaining unclaimed for two years after such principal, interest (and Additional Amounts or premium, if any), has become due and payable shall be paid to the Issuer on its request or (if then held by the Issuer) shall be discharged from such trust; and the Holder of such Note shall thereafter look only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuer as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may, at the expense of the Issuer, give notice to the Holders in accordance with Section 13.01 that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Issuer.

 

Section 8.07                             Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any U.S. Dollars or non-callable U.S. Government Obligations in accordance with Section 8.02 or 8.03, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuer’s obligations under this Indenture and the Notes and the Guarantors’ obligations under the Note Guarantees and any Collateral Documents to which it is party shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03, as the case may be; provided, however, that, if the Issuer makes any payment of principal of, interest, premium or Additional Amounts, if any, on any Note following the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

 

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ARTICLE 9
 AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01                             Without Consent of Holders of Notes.

 

Notwithstanding Section 9.02 of this Indenture, the Issuer, the Guarantors, the Trustee and the Security Agent may amend or supplement this Indenture, the Notes or the Note Guarantees, any Collateral Document and the Intercreditor Agreement without the consent of any Holder of Notes:

 

(i)                                     to cure any ambiguity, defect, inconsistency or error;

 

(ii)                                  to provide for uncertificated Notes in addition to or in place of certificated Notes;

 

(iii)                               to provide for the assumption of the Issuer’s or a Guarantor’s obligations to the Holders of the Notes and Note Guarantees pursuant to a transaction governed by Section 5.01;

 

(iv)                              to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under this Indenture of any such Holder in any material respect;

 

(v)                                 to conform the text of this Indenture, the Note Guarantees, the Collateral Documents or the Notes to any provision of the “Description of Notes” section of the Offering Memorandum, to the extent that such provision in that “Description of Notes” was intended to be a verbatim recitation of a provision of this Indenture, the Note Guarantees, the Collateral Documents or the Notes;

 

(vi)                              to enter into additional or supplemental Collateral Documents;

 

(vii)                           to release Collateral in accordance with the terms of this Indenture and the Collateral Documents or to release any Note Guarantee in accordance with the terms of this Indenture;

 

(viii)                        to provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture as of the Issue Date;

 

(ix)                              to allow any Guarantor to execute a supplemental indenture and/or a Note Guarantee with respect to the Notes;

 

(x)                                 to provide for uncertificated Notes in addition to or in place of certificated Notes (provided that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of Title 26 the U.S. Code, in a manner such that the uncertified Notes are described in Section 163(f)(2)(B) of the U.S. Code);

 

(xi)                              to evidence and provide the acceptance of the appointment of a successor Trustee under this Indenture; or

 

(xii)                           to add additional parties to the Intercreditor Agreement or any Collateral Documents to the extent permitted under this Indenture and thereunder.

 

Upon the request of the Issuer and upon receipt by the Trustee of the documents described in Section 7.02(b), the Trustee and the Security Agent will join with the Issuer and the Guarantors in the execution of any amended or supplemental indenture or other document authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may

 

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be therein contained, but the Trustee and the Security Agent will not be obligated to enter into such amended or supplemental indenture or other document that affects its own rights, duties or immunities under this Indenture.

 

Section 9.02                             With Consent of Holders of Notes.

 

Except as provided otherwise in Section 9.01 and Section 9.02, the Issuer, the Guarantors, the Trustee and the Security Agent may amend or supplement this Indenture (including, without limitation, Section 4.10 and Section 4.14), the Notes, the Note Guarantees, the Intercreditor Agreement or the Collateral Documents with the consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding (including, without limitation, Additional Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes), and subject to Section 6.04 and Section 6.07 hereof, any existing Default or Event of Default (other than a continuing Default or Event of Default in the payment of the principal of, interest and premium and Additional Amounts, if any, on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture, the Notes, the Note Guarantees, the Intercreditor Agreement or the Collateral Documents may be waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes (including, without limitation, Additional Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes); provided that, if any amendment, waiver or other modification will only affect one series of the Notes, only the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes of such series shall be required.

 

Upon the request of the Issuer, and upon receipt by the Trustee of the documents described in Section 7.02(b), the Trustee and the Security Agent will join with the Issuer and the Guarantors in the execution of such amended or supplemental indenture or other document unless such amended or supplemental indenture or other document directly affects the Trustee’s own rights, duties or immunities under this Indenture, in which case the Trustee may in its discretion, but will not be obligated to, enter into such amended or supplemental indenture or other document.

 

It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient if such consent approves the substance thereof.

 

After an amendment, supplement or waiver under this Section 9.02 becomes effective, the Issuer will mail or otherwise deliver to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Issuer to mail or otherwise deliver such notice, or any defect therein, will not, however, in any way impair or affect the validity of any such amended or supplemental indenture or waiver.  Subject to Sections 6.04 and 6.07, the Holders of a majority in aggregate principal amount of the Notes then outstanding, voting as a single class, may waive compliance in a particular instance by the Issuer with any provision of this Indenture, the Notes, any Note Guarantee, the Intercreditor Agreement (or any additional intercreditor agreement entered into in accordance with the terms of this Indenture) or the Collateral Documents.  However, unless consented to by the Holders of at least 90% of the aggregate principal amount of then outstanding Notes (including, without limitation, Additional Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes), without the consent of each Holder affected, an amendment, supplement or waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

 

(i)                                     reduce the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver;

 

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(ii)                                  reduce the principal of or change the fixed maturity of any Note or alter or waive any of the provisions with respect to the redemption of the Notes (except with respect to Sections 4.10 and 4.14 hereof);

 

(iii)                               reduce the rate of or change the time for payment of interest, including default interest, on any Note;

 

(iv)                              impair the right of any Holder of Notes to receive payment of principal of and interest on such Holder’s Notes on or after the due dates thereof or to institute suit for the enforcement of any payment on or with respect to such Holder’s Notes or any Note Guarantee in respect thereof;

 

(v)                                 waive a Default or Event of Default in the payment of principal of, or interest, Additional Amounts or premium, if any, on, the Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the then outstanding Notes and a waiver of the Payment Default that resulted from such acceleration);

 

(vi)                              make any such Note payable in money other than that stated in the Notes (except to the extent the currency stated in the Notes has been succeeded or replaced pursuant to applicable laws);

 

(vii)                           make any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders of the Notes to receive payments of principal of, or interest, Additional Amounts or premium, if any, on, the Notes;

 

(viii)                        waive a redemption payment with respect to any Note (other than a payment required by Sections 4.10 or 4.14);

 

(ix)                              release any Guarantor from any of its obligations under its Note Guarantee or this Indenture, except in accordance with the terms of this Indenture and the Intercreditor Agreement (or any additional intercreditor agreement entered into in accordance with the terms of this Indenture);

 

(x)                                 release the Lien on Collateral granted for the benefit of the Holders of the Notes, except in accordance with the terms of the Collateral Documents, this Indenture and the Intercreditor Agreement, or

 

(xi)                              make any change in the preceding amendment and waiver provisions.

 

Notwithstanding the immediately preceding paragraph of this Section 9.02, any Note Guarantee or Lien on the Collateral will be released in connection with any sale or other disposition of property or assets (including Capital Stock) that does not violate Section 4.07 or Section 4.10 of this Indenture (as such provision or covenant may be amended from time to time with the consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding and in the case of any such amendment, the consent of at least a majority in aggregate principal amount of the Notes then outstanding will suffice for such release).

 

Section 9.03                             Revocation and Effect of Consents.

 

Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note.  However, any such Holder of a Note or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before

 

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the date of the amendment, supplement or waiver becomes effective.  An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder.

 

Section 9.04                             Notation on or Exchange of Notes.

 

The Trustee may place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated.  The Issuer, in exchange for Notes, may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment, supplement or waiver.

 

Failure to make the appropriate notation or issue a new Note will not affect the validity and effect of such amendment, supplement or waiver.

 

Section 9.05                             Trustee and the Security Agent to Sign Amendments.

 

The Trustee and the Security Agent will sign any amended or supplemental indenture or other document authorized pursuant to this Article 9; provided that the Trustee may, but shall not be obligated to execute any such amendment, supplement or other document which affects the Trustee’s and Security Agent’s own rights, duties, liabilities or immunities under this Indenture.  In executing any amended or supplemental indenture or other document, the Trustee and the Security Agent will be entitled to receive and (subject to Section 7.01) will be fully protected in relying upon, in addition to the documents required by Section 13.02 (i) indemnity deemed satisfaction to it in its sole discretion; and (ii) an Officer’s Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental indenture or other document is authorized or permitted by this Indenture and that such amendment is the legal, valid and binding obligation of the Issuer (and any Guarantor) enforceable against them in accordance with its terms, subject to customary exceptions, and complies with the provisions of this Indenture.

 

ARTICLE 10
 COLLATERAL AND SECURITY

 

Section 10.01                      Security Documents.

 

The due and punctual payment of the principal of, interest, Additional Amounts and premium, if any, on the Notes and any Note Guarantee when and as the same shall be due and payable, whether on an interest payment date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest on the overdue principal of and interest and Additional Amounts (to the extent permitted by law), if any, on the Notes and any Note Guarantee and performance of all other obligations of the Issuer and any Guarantor to the Holders of Notes, the Trustee and the Security Agent under this Indenture, the Notes and any Note Guarantee, according to the terms hereunder or thereunder, are secured as provided in the Collateral Documents and the Intercreditor Agreement.  Each Holder of Notes, by its acceptance thereof, consents and agrees to the terms of the Collateral Documents and the Intercreditor Agreement and any additional intercreditor agreement (including, without limitation, the provisions providing for foreclosure and release of Collateral and authorizing the Security Agent to enter into any Collateral Document on its behalf) as the same may be in effect or may be amended from time to time in accordance with its terms and authorizes and directs the Security Agent to enter into the Collateral Documents and the Intercreditor Agreement and any additional intercreditor agreement and to perform its obligations and exercise its rights thereunder in accordance therewith.  The Issuer will deliver to the Trustee copies of all documents delivered to the Security Agent pursuant to the Collateral Documents, and the Issuer and the Parent will, and the Parent will cause each of its Restricted Subsidiaries to, do or cause to be done all such acts and things as may be required, or which the Security Agent from time to time may reasonably request, to assure and confirm to the Trustee that the Security Agent holds, for the benefit of the Trustee and the Holders, duly created, enforceable and perfected Liens as contemplated hereby and by the Collateral Documents and the Intercreditor Agreement, so as to render the same available for the security and benefit of this

 

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Indenture and of the Notes and any Note Guarantee secured hereby, according to the intent and purposes herein expressed.  The Issuer and any Guarantor will each take, and will cause their respective Restricted Subsidiaries to take (including as may be requested by the Trustee) any and all actions reasonably required to cause the Collateral Documents and the Intercreditor Agreement to create and maintain, as security for the Obligations of the Issuer and any Guarantor hereunder, in respect of the Collateral, valid and enforceable perfected Liens in and on such Collateral ranking in right and priority of payment as set forth in the Intercreditor Agreement and subject to no other Liens other than as permitted by the terms of this Indenture and the Intercreditor Agreement.

 

Section 10.02                      Release of Collateral.

 

Collateral may be released from the Liens and security interests created by the Collateral Documents at any time or from time to time in accordance with the provisions of the Collateral Documents, the Intercreditor Agreement and this Indenture.  In addition, and subject to the terms and conditions of the relevant Collateral Documents and the Intercreditor Agreement, upon the request of the Issuer pursuant to an Officer’s Certificate and Opinion of Counsel certifying that all conditions precedent hereunder have been met and (at the sole cost and expense of the Issuer) the Trustee, who may rely exclusively on such Officer’s Certificate and Opinion of Counsel, shall, if so requested by the Security Agent or the Issuer or otherwise required by the Intercreditor Agreement, authorize the release of Collateral from the security created by the Collateral Documents that is sold, conveyed or disposed of in compliance with the provisions of this Indenture.  Upon receipt of such Officer’s Certificate the Security Agent shall execute, deliver or acknowledge any necessary or proper instruments of termination, satisfaction or release to evidence the release of any Collateral permitted to be released pursuant to this Indenture or the Collateral Documents and the Intercreditor Agreement and any Additional Intercreditor Agreement.

 

Section 10.03                      Authorization of Actions to Be Taken by the Trustee.

 

Upon reasonable request of the Trustee, but without any affirmative duty on the Trustee to do so, the Issuer and Guarantors shall execute and deliver such further instruments and do such further acts as may be reasonably necessary to carry out more effectively the purposes of this Indenture.

 

Subject to the provisions of Section 7.01 and 7.02 and the terms of the Collateral Documents and the Intercreditor Agreement (including any consent of the Holders required thereunder), the Trustee may, in its sole discretion, direct, on behalf of the Holders of Notes, the Security Agent to take all actions it deems necessary or appropriate in order to:

 

(i)                                     enforce any of the terms of the Collateral Documents or the Intercreditor Agreement; and

 

(ii)                                  collect and receive any and all amounts payable in respect of the Obligations of the Issuer or any Guarantor hereunder.

 

Subject to the provisions hereof, the Collateral Documents, the Intercreditor Agreement and any Additional Intercreditor Agreement, the Trustee and/or the Security Agent will have power to but shall not be required to institute and maintain such suits and proceedings as it may deem expedient to prevent any impairment of the Collateral by any acts that may be unlawful or in violation of the Collateral Documents, the Intercreditor Agreement or this Indenture, and such suits and proceedings as the Trustee may deem expedient to preserve or protect its interests and the interests of the Holders of Notes in the Collateral (including power to institute and maintain suits or proceedings to restrain the enforcement of or compliance with any legislative or other governmental enactment, rule or order that may be otherwise invalid if the enforcement of, or compliance with, such enactment, rule or order would impair the security interest hereunder or be prejudicial to the interests of the Holders of Notes or of the Trustee and/or the Security Agent).

 

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Section 10.04                      Authorization of Receipt of Funds by the Trustee Under the Collateral Documents.

 

The Trustee and/or the Security Agent is authorized to receive any funds for the benefit of the Holders of Notes distributed under the Collateral Documents or Intercreditor Agreement, and to make further distributions of such funds to the Holders of Notes according to the provisions of this Indenture and the Intercreditor Agreement.

 

Section 10.05                      Termination of Security Interest.

 

The Trustee shall, at the request of the Issuer upon having provided the Trustee an Officer’s Certificate (which shall certify, among other things, that all action under the relevant Collateral Document(s) with respect to the release of the security thereunder has been taken and the release of the Collateral complies with the terms of the relevant Collateral Document(s)) and Opinion of Counsel certifying compliance with this Section 10.05, execute and deliver a certificate to the Security Agent releasing the relevant Collateral or other appropriate instrument evidencing such release (in the form provided by and at the expense of the Issuer):

 

(i)                                     in connection with any sale or other disposition of property and assets, if such sale or other disposition does not violate Section 4.10 hereof;

 

(ii)                                  with respect to a Guarantor that is released from its Note Guarantee pursuant to the terms of this Indenture and the Intercreditor Agreement, the release of property and assets, and Capital Stock of such Guarantor;

 

(iii)                               in accordance with Article 9 hereof;

 

(iv)                              upon the full and final payment and performance of all Obligations of the Issuer and the Guarantors under this Indenture and the Notes;

 

(v)                                 upon a Legal Defeasance or Covenant Defeasance as provided for in Article 8 or satisfaction and discharge of this Indenture as provided for in Article 12;

 

(vi)                              if the Parent designates any Restricted Subsidiary to be an Unrestricted Subsidiary pursuant to the terms of this Indenture, the release of property and assets, and Capital Stock, of such Restricted Subsidiary;

 

(vii)                           if on any date following the Issue Date the Notes have achieved Investment Grade Status (taking into account the expected release of the Collateral), the Issuer has delivered a written notice thereof to the Trustee and no Default has occurred and is continuing under this Indenture as of the date of delivery of such notice;

 

(viii)                        as may be permitted pursuant to the covenant described in Section 4.19;

 

(ix)                              if all other Liens on the Collateral securing Indebtedness (other than Permitted Collateral Liens described in clause (6) of the definition thereof) are released and the Issuer has delivered a written notice thereof to the Trustee; or

 

(x)                                 in connection with an enforcement sale under the Intercreditor Agreement.

 

Section 10.06                      Further Action.

 

Upon the terms and subject to the conditions of this Indenture, the Collateral Documents and the Intercreditor Agreement, the Issuer and any Guarantor shall use its respective best efforts to take, or cause to be taken, all appropriate action, and to do or cause to be done, all things necessary, proper

 

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or advisable under applicable laws and regulations to consummate and make effective the security over the Collateral as contemplated by the Collateral Documents and the Intercreditor Agreement.

 

Notwithstanding any other provision of this Indenture, the Trustee has no responsibility for or liability in connection with the validity, perfection, priority or enforceability of any Lien, Collateral, Collateral Documents or other security interest and the Trustee is not required to prepare, file or correct any financing statements or confirmation statements.

 

Section 10.07                      [Reserved]

 

ARTICLE 11
 NOTE GUARANTEES

 

Section 11.01                      Guarantee.

 

(a)                                 Subject to this Article 11, each of the Guarantors hereby, jointly and severally, unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Notes or the obligations of the Issuer hereunder or thereunder, that:

 

(i)                                     the principal of, Additional Amounts and premium, if any, and interest on, the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest, Additional Amounts and premium, if any, on the Notes (to the extent permitted by law) and all other obligations of the Issuer to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and

 

(ii)                                  in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.

 

Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly and severally obligated to pay the same immediately.  Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)                                 Each Guarantor hereby agrees that its obligations hereunder are unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Issuer, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor.  Each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest, notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged except by complete performance of the obligations contained in the Notes and this Indenture.

 

(c)                                  If any Holder or the Trustee is required by any court or otherwise to return to or for the benefit of the Issuer, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to either the Issuer or the Guarantors, any amount paid by either the Issuer or the Guarantors to the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full force and effect.

 

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(d)                                 Each Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand,

 

(i)                                     the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and

 

(ii)                                  in the event of any declaration of acceleration of such obligations as provided in Article 6, such obligations (whether or not due and payable) will forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee.  The Guarantors will have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under the Note Guarantee.

 

Section 11.02                      Limitation on Guarantor Liability.

 

(a)                                 Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance, for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar national, federal, local or state law or voidable preference, financial assistance or improper corporate benefit, or violate the corporate purpose of the relevant Guarantor or any applicable capital maintenance or similar laws or regulations affecting the rights of creditors generally under any applicable law or regulation to the extent applicable to any Note Guarantee.  To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article 11, result in the obligations of such Guarantor under its Note Guarantee not constituting either a fraudulent transfer or conveyance or voidable preference, financial assistance or improper corporate benefit, or violating the corporate purpose of the relevant Guarantor or any applicable capital maintenance or, in each case, any similar laws or regulations affecting the rights of creditors generally under any applicable law or regulation.

 

(b)                                 Limitations for Austrian Guarantors

 

(i)                                     Nothing in this Indenture shall be construed to create any obligation of an Austrian Guarantor to act in violation of mandatory Austrian capital maintenance rules (Kapitalerhaltungsvorschriften), including, without limitation, § 82 et seq. of the Austrian Act on Limited Liability Companies (Gesetz über Gesellschaften mit beschränkter Haftung — GmbHG) the GmbHG and § 52 et seq. of the Austrian Act on Joint Stock Companies (Aktiengesetz-AktG) (the “Austrian Capital Maintenance Rules”), and all obligations of any Austrian Guarantor under this Indenture shall be limited in accordance with the Austrian Capital Maintenance Rules;

 

(ii)                                  If and to the extent the payment obligations of an Austrian Guarantor under this Indenture would not be permitted under the Austrian Capital Maintenance Rules or would render the directors of an Austrian Guarantor personally liable pursuant to Austrian law to any of the creditors of that Austrian Guarantor as a consequence of paying such amount, then such payment Obligations shall be limited to the maximum amount permitted to be paid which would not trigger such directors’ liability, provided that the amount payable shall not be less than (i) that Austrian Guarantor’s balance sheet profit (including retained earnings)

 

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(Bilanzgewinn) as defined in § 224 (3) lit A no. IV of the Austrian Enterprise Code (Unternehmensgesetzbuch—UGB) as calculated by reference to the most recent (audited, if applicable) financial statements of that Austrian Guarantor then available plus (ii) any other amounts which are freely available for distribution to the shareholder(s) of that Austrian Guarantor under the GmbHG or AktG (as the case may be) and the UGB at the time or times payment under the Note Guarantee is demanded from that Austrian Guarantor plus, (iii) to the extent applicable, the aggregate amount of any proceeds from the issuance of the Notes made available to that Austrian Guarantor and/or its subsidiaries plus (iv) the amount of any Indebtedness capable of being discharged by way of setting-off that Austrian Guarantor’s recourse claim following enforcement of this Indenture against any Indebtedness owed by that Austrian Guarantor to the Issuer.

 

(c)                                  Limitations for Belgian Guarantors

 

In the case of a Belgian Guarantor, with respect to the obligations of the Issuer or any Guarantor under this Indenture which is not a Subsidiary of such Belgian Guarantor, its liability under this Article 11 shall be limited, at any time, to a maximum aggregate amount equal to the greater of:

 

(i)                                     an amount equal to 90% of such Belgian Guarantor’s net assets (as determined in accordance with article 617 of the Belgian Companies Code and accounting principles generally accepted in Belgium, but not taking intra-group debt into account as debts) as shown by its most recent audited annual financial statements on the date on which the relevant demand is made; and

 

(ii)                                  the aggregate amount outstanding on the date on which the relevant demand is made of (i) the principal amount made available to such Belgian Guarantor from the proceeds of the Notes, and (ii) the aggregate amount of any intra-group loans or facilities made to it by any Subsidiary of the Parent directly and/or indirectly using all or part of the proceeds of the Notes (whether or not such intra-group loan is retained by the Belgian Guarantor for its own purposes or on-lent to a Subsidiary of such Belgian Guarantor, but for the avoidance of doubt excluding any intra-group loan on-lent to any other Subsidiary of the Parent).

 

(d)                                 Limitations for German Guarantors

 

(i)                                     Notwithstanding any other provision of this Indenture, each Holder, by its acceptance of the Notes, and the Trustee (and its successors and assigns) agree not to enforce the Note Guarantee granted under this Article 11 against any guarantor, in relation to any Guarantor which is a German limited liability company (Gesellschaft mit beschränkter Haftung—GmbH) or a limited partnership (Kommanditgesellschaft) with a GmbH as its sole general partner (Komplementär) (GmbH & Co. KG) (the “Affected German Guarantor”), to the extent that payment under the Note Guarantee would:

 

(A)                               where the Affected German Guarantor is a GmbH, cause the Affected German Guarantor’s net assets as at the date of enforcement of the Note Guarantee (the “Relevant Net Assets”) to fall below its registered share capital (Stammkapital); or

 

(B)                               where the Affected German Guarantor is a GmbH & Co. KG, give rise to a claim against its general partner (Komplementär) exceeding the latter’s Relevant Net Assets not required to cover its registered share capital (Stammkapital), and in each case, thereby cause a violation of section 30 of the German Limited Liability Company Act (as amended from time to time) or, where the Relevant Net

 

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Assets are already lower than its registered share capital cause such amount to be further reduced.

 

(ii)                                  For the purposes of the calculation of the limitation pursuant to Section 11.02(d)(i), the following balance sheet items shall be adjusted as follows:

 

(A)                               the amount of any increase of the stated share capital (Stammkapital), of the Affected German Guarantor or its general partner (Komplementär), effected after the date of this Indenture without the prior written consent of the Security Agent shall be deducted from the relevant stated share capital;

 

(B)                               loans provided to the Affected German Guarantor by the Parent or a Subsidiary of the Parent shall be disregarded if such loans are subordinated within the meaning of Section 39, subsection 2 of the German Insolvency Code (InsO); and

 

(C)                               loans and other liabilities incurred in violation of the provisions of this Indenture shall be disregarded.

 

(iii)                               In case of an enforcement of the Note Guarantee, the Affected German Guarantor shall (upon the written request of the Security Agent and to the extent legally permitted) for the purposes of the determination of the Relevant Net Assets dispose of all assets which are shown in the balance sheet of the Affected German Guarantor with a book value (Buchwert) which is significantly lower than the market value of such assets to the extent that such assets are not necessary for the Affected German Guarantor’s business (nicht betriebsnotwendig).

 

(iv)                              The limitations set forth under Section 11.02(d)(i) through (iii) do not apply:

 

(A)                               to any amounts due and payable under the Note Guarantee which relate to funds which have been on-lent to the Affected German Guarantor or to any of its Subsidiaries and are still outstanding; or

 

(B)                               if, following notification by the Security Agent to the Relevant German Guarantor of claims raised under the Note Guarantee, the Affected German Guarantor does not provide evidence satisfactory to the Security Agent (acting reasonably), including in particular interim financial statements, within 30 days after the date of such notification, or if after receipt of such unaudited statements notification is given by the Security Agent to the Affected German Guarantor to provide audited financial statements up to the end of that same calendar month and such audited financial statements are not provided within 60 days after the date of such notification.

 

(v)                                 No reduction of the amount enforceable under the Note Guarantee in accordance with the above limitations shall prejudice the rights of any Holder or the Trustee to continue enforcing the Note Guarantee (subject always to the operation of the limitation set out above at the time of such enforcement) until full satisfaction of the Obligations guaranteed under the relevant Note Guarantee.

 

(e)                                  Limitations for Dutch Guarantors

 

Notwithstanding any other provision of this Indenture and without prejudice to the general applicability of Section 11.01 of this Indenture, the guarantee, indemnity and other obligations of any Dutch Guarantor and any of its subsidiaries under this Article 11 shall be deemed to have been given only to the extent that such guarantee does not violate the prohibition on financial assistance within the meaning of article 2:98c or 2:207c of the Dutch Civil Code (Burgerlijk Wetboek) or any other

 

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applicable financial assistance rules under any applicable law and the provisions of this Article 11 and other provisions of this Indenture shall be construed accordingly.

 

(f)                                   Limitations for Finnish Guarantors

 

(i)                                     The liabilities and obligations guaranteed by Sappi Finland I Oy (“Sappi Finland”) in its capacity as Guarantor under this Indenture shall not include, and Sappi Finland shall not be liable to perform or be deemed to have undertaken any liability or obligation in respect of, any liability or obligation the guaranteeing of which would be contrary to or would constitute a breach of mandatory provisions or principles of Finnish law, including without limitation (1) Chapter 13, Section 1 of the Finnish Companies Act (1.9.2006/624, as amended) regulating distribution of assets and (2) other applicable mandatory provisions of Finnish corporate law.

 

(ii)                                  Furthermore, the maximum amount payable at any time by Sappi Finland under this Indenture shall not exceed an amount equal to the higher of the following:

 

(A)                               The aggregate amount of (1) an amount no greater than the aggregate amount owing by Sappi Finland (directly or indirectly) to the Issuer under any intra-group loan agreement or loan agreements between Sappi Finland and the Issuer (or any direct or indirect Subsidiary of the Issuer) existing on the Issue Date and (2) the aggregate amount of funds available for distribution as a dividend of Sappi Finland according to the Companies Act on the date on which any guaranteed party exercises any of its rights, remedies, powers or discretions under the Note Guarantee;

 

(B)                               the aggregate amount of (1) the aggregate amount owing by Sappi Finland (directly or indirectly) to the Issuer under any intra-group loan agreement or loan agreements between Sappi Finland and the Issuer (or any direct or indirect Subsidiary of the Issuer) existing on the date on which the Trustee exercises any of its rights, remedies, powers or discretions under the Note Guarantee provided by Sappi Finland pursuant to this Indenture and (2) the aggregate amount of funds available for distribution as a dividend of Sappi Finland according to the Companies Act on the date on which any guaranteed party exercises any of its rights, remedies, powers or discretions under any guarantee provided by Sappi Finland pursuant to this Indenture; or

 

(C)                               any higher amount (based on any direct or indirect economic and operational benefit to Sappi Finland derived under this Indenture) to the extent not prohibited by Chapter 13, Section 1 of the Finnish Companies Act,

 

in each case less the aggregate amount at that time already paid or payable by Sappi Finland under any claim already made under its Note Guarantee.

 

Section 11.03                      Execution and Delivery of Note Guarantee.

 

To evidence its Note Guarantee set forth in Section 11.01, each Guarantor hereby agrees that a notation of such Note Guarantee substantially in the form attached as Exhibit D hereto will be endorsed by an Officer or a Director of such Guarantor on each Note authenticated and delivered by the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its Officers or Directors.

 

Each Guarantor hereby agrees that its Note Guarantee set forth in Section 11.01 will remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Note Guarantee.

 

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If an Officer or Director whose signature is on this Indenture or on the Note Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed, the Note Guarantee will be valid nevertheless.

 

The delivery of any Note by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the Guarantors.

 

The Parent shall cause any Restricted Subsidiary so required by Section 4.16, to execute a Supplemental Indenture in the form of Exhibit E  to this Indenture and a notation of Note Guarantees in the form of Exhibit D  to this Indenture in accordance with Section 4.16 and this Article 11.

 

Section 11.04                      Releases.

 

The Note Guarantee of a Subsidiary Guarantor (other than the Note Guarantee of Sappi International SA in the case of clause (ix)) and of the Parent in the case of clauses (iv), (v) and (vii) shall be released:

 

(i)                                     in connection with any sale or other disposition of all or substantially all of the assets of that Subsidiary Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) the Parent or a Restricted Subsidiary if such sale or other disposition does not violate Section 4.10 hereof;

 

(ii)                                  in connection with any sale or other disposition of Capital Stock of that Subsidiary Guarantor to a Person that is not (either before or after giving effect to such transaction) the Parent or a Restricted Subsidiary, if such sale or other disposition does not violate Section 4.10 hereof and that Subsidiary Guarantor ceases to be a Restricted Subsidiary as a result of such sale or other disposition;

 

(iii)                               if the Parent designates any Restricted Subsidiary that is a Subsidiary Guarantor to be an Unrestricted Subsidiary pursuant to the terms of this Indenture;

 

(iv)                              as described in Article 9;

 

(v)                                 upon the full and final payment and performance of all Obligations of the Issuer and the Guarantors under this Indenture and the Notes;

 

(vi)                              upon the release or discharge of the Note Guarantee by such Subsidiary Guarantor of the Indebtedness that resulted in the creation of such Note Guarantee pursuant to Section 4.16 hereof (but not the release of any Note Guarantee in effect on the Issue Date);

 

(vii)                           upon Legal Defeasance or Covenant Defeasance as provided for in Article 8 or satisfaction and discharge of this Indenture as provided in Article 12, respectively;

 

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(viii)                        upon the solvent liquidation or winding up of a Subsidiary Guarantor;

 

(ix)                              if on any date following the Issue Date the Notes have achieved Investment Grade Status, the Issuer has delivered a written notice thereof to the Trustee and no Default has occurred and is continuing under this Indenture as of the date of delivery of such notice; or

 

(x)                                 in connection with an enforcement sale by the Security Agent in accordance with the terms of the Intercreditor Agreement.

 

ARTICLE 12
 SATISFACTION AND DISCHARGE

 

Section 12.01                      Satisfaction and Discharge.

 

(a)                                 This Indenture will be discharged and will cease to be of further effect as to all Notes, when:

 

(i)                                     either:

 

(A)                               all Notes that have been authenticated, except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose payment money has been deposited in trust and thereafter repaid to the Issuer, have been delivered to the Trustee for cancellation; or

 

(B)                               all Notes that have not been delivered to the Trustee for cancellation have become due and payable by reason of the mailing of a notice of redemption or otherwise are due and payable or will become due and payable within one year and the Issuer or any Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders, and cash in U.S. Dollars, non-callable U.S. Government Obligations or a combination of cash in U.S. Dollars and non-callable U.S. Government Obligations, in either case, in amounts as will be sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not delivered to the Trustee for cancellation of principal, premium and Additional Amounts, if any, and accrued interest to the date of maturity or redemption;

 

(ii)                                  the Issuer or any Guarantor has paid or caused to be paid all sums payable by it under this Indenture; and

 

(iii)                               the Issuer has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment of the Notes at maturity or on the redemption date, as the case may be.

 

In addition, the Issuer must deliver an Officer’s Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge have been complied with; provided that any such counsel may rely on any Officer’s Certificate as to matters of fact (including as to compliance with the foregoing clauses (i), (ii) and (iii) of this Section 12.01(a)).

 

(b)                                 With respect to the termination of obligations with respect to Section 12.01(a)(i)(A), the obligations of the Issuer under Section 7.06 shall survive.  With respect to the termination of obligations with respect to Section 12.01(a)(i)(B), the obligations of the Issuer in Sections 2.02, 2.03, 2.04, 2.06, 2.07, 2.11, 4.01, 4.02, 4.06, 7.06, 7.07, 8.05, and 8.07 shall survive until the Notes are no longer outstanding.  Thereafter, only the obligations of the Issuer in Sections 7.06, 7.07, and 8.07 shall survive.  After any such irrevocable deposit, the Trustee upon request shall acknowledge in writing

 

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the discharge of the obligations of the Issuer under this Indenture, the Notes and the Note Guarantees, if any, except for those surviving obligations specified above.

 

(c)                                  Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited with the Trustee pursuant to Section 12.01(a)(i)(B), the provisions of Sections 8.06 and 12.02 will survive.  In addition, nothing in this Section 12.01 will be deemed to discharge those provisions of Section 7.06, that, by their terms, survive the satisfaction and discharge of this Indenture.

 

Section 12.02                      Application of Trust Money.

 

(a)                                 Subject to the provisions of Section 8.05, all money deposited with the Trustee pursuant to Section 12.01 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal, Additional Amounts and premium, if any, and interest for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent required by law.

 

(b)                                 If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with this Section 12.02 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuer’s and any Guarantor’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 12.01; provided that if the Issuer or any Guarantor has made any payment of principal of, premium, if any, or interest on any Notes or Note Guarantees because of the reinstatement of its obligations, the Issuer or any Guarantor, as applicable, shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE 13
 MISCELLANEOUS

 

Section 13.01                      Notices.

 

(a)                                 Any notice or communication by the Issuer, any Guarantor, the Trustee or the Security Agent to the others is duly given if in writing in the English language and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopy, electronic mail or facsimile transmission or overnight air courier guaranteeing next day delivery, to the others’ address:

 

If to the Issuer:

 

Sappi Papier Holding GmbH
 c/o Parent at the address below

 

With a copy to:

 

Cravath, Swaine & Moore LLP
 CityPoint
 One Ropemaker Street
 London EC2Y 9HR
 Facsimile No.:  +44 20 7860 1150
 Attn:  George Stephanakis

 

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If to the Parent:

 

Sappi Limited
 48 Ameshoff Street
 Braamfontein 
 Johannesburg 2001
 South Africa
 Facsimile No.:  +27 11 339 8022
 Attention:  Company Secretary

 

With a copy to:

 

Cravath, Swaine & Moore LLP
 CityPoint
 One Ropemaker Street
 London EC2Y 9HR
 Facsimile No.:  +44 20 7860 1150
 Attn:  George Stephanakis

 

If to the Trustee:

 

The Bank of New York Mellon
 One Canada Square
 London E14 5AL
 United Kingdom
 Facsimile No.:  +44 20 7964 2536
 Attention:  Corporate Trust Administration

 

If to the Security Agent:

 

J. P. Morgan Europe Limited
 125 London Wall
 London EC2Y 5AS
 Fax:  +44 20 7777 4165
 Attention:  Managing Director

 

(b)                                 The Issuer, any Guarantor, the Trustee or the Security Agent, by notice to the others may designate additional or different addresses for subsequent notices or communications.

 

(c)                                  All notices and communications (other than those sent to Holders) shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed and confirmed by electronic mail or facsimile; when receipt acknowledged, if telecopied or transmitted by electronic mail or facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

 

(d)                                 All notices to the Holders (while any Notes are represented by one or more Global Notes) shall be delivered to DTC, as applicable for communication to entitled account holders.  So long as the Notes are traded on the Euro MTF and the rules and regulations of the Luxembourg Stock Exchange so require, all notices to Holders will also be published in d’Wort or in another daily newspaper published in Luxembourg approved by the Trustee or on the website of the Luxembourg Stock Exchange (www.bourse.lu).  If publication as provided above is not practicable, notice will be given in such other manner, and shall be deemed to have been given on such date, as the Trustee may approve.  In the case of Definitive Registered Notes, notices will be mailed to Holders by first-class 

 

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mail at their respective addresses as they appear on the records of the Registrar, unless stated otherwise in the register kept by, and at the registered office of the Issuer.

 

(e)                                  Notices given by publication will be deemed given on the first date on which publication is made.  Notices delivered to DTC will be deemed given on the date when delivered.  Notices given by first class mail, postage paid, will be deemed given five calendar days after mailing whether or not the addressee receives it.

 

(f)                                   If a notice or communication is mailed or published in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

 

(g)                                  In no event shall the Trustee or Agents be liable for any Losses arising in regards to receiving or transmitting any data from the Issuer, any Authorized Person or any party to the transaction via any non-secure method of transmission or communication, such as, but without limitation, by facsimile or email.  The Issuer hereto accepts that some methods of communication are not secure and the Trustee or Agents shall incur no liability for receiving instructions via any such non-secure method.  The Trustee and Agents are authorized to comply with and rely upon any such notice, instructions or other communications believed by it to have been sent or given by an Authorized Person or an appropriate party to the transaction (or authorized representative thereof).  The Issuer or authorized officer of the Issuer shall use all reasonable endeavors to ensure that instructions transmitted to the Trustee or Agents pursuant to this Agreement are complete and correct.  Any instructions shall be conclusively deemed to be valid instructions from the Issuer or authorized officer of the Issuer to the Trustee or Agents for the purposes of this Agreement.

 

If the Issuer or any Guarantor mails a notice or communication to Holders or delivers a notice or communication to holders of Book-Entry Interests, it shall mail a copy to the Trustee and each Agent at the same time.

 

Section 13.02                      Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Issuer or any Guarantor to the Trustee to take any action under this Indenture, the Issuer shall furnish to the Trustee:

 

(i)                                     an Officer’s Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 13.03) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied or complied with, as applicable; and/or

 

(ii)                                  an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 13.03) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied or complied with, as applicable.

 

Section 13.03                      Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

(i)                                     a statement that the Person making such certificate or opinion has read such covenant or condition;

 

(ii)                                  a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

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(iii)                               a statement that, in the opinion of such Person, such Person has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been satisfied; and

 

(iv)                              a statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied.

 

Section 13.04                      Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or at a meeting of Holders.  The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

 

Section 13.05                      Agent for Service; Submission to Jurisdiction; Waiver of Immunities.

 

Each of the parties hereto irrevocably agrees that any suit, action or proceeding arising out of, related to, or in connection with this Indenture, the Notes and the Note Guarantees or the transactions contemplated hereby, and any action arising under U.S. federal or state securities laws, may be instituted in any U.S. federal or state court located in the State and City of New York, Borough of Manhattan; irrevocably waives, to the fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying of venue of any such proceeding; and irrevocably submits to the jurisdiction of such courts in any such suit, action or proceeding.  The Issuer and each of the Guarantors (other than S.D. Warrant Company) has appointed S.D. Warren Company as its authorized agent with offices located at 255 State Street, Boston, MA 02109, Attention: Ms. Sarah Manchester, Vice President and General Counsel upon whom process may be served in any such suit, action or proceeding which may be instituted in any federal or state court located in the State of New York, Borough of Manhattan arising out of or based upon this Indenture, the Notes or the transactions contemplated hereby or thereby, and any action brought under U.S. federal or state securities laws (the “Authorized Agent”).  The Issuer and each of the Guarantors expressly consents to the jurisdiction of any such court in respect of any such action and waives any other requirements of or objections to personal jurisdiction with respect thereto and waives any right to trial by jury.  The Authorized Agent hereby represents and warrants that it has agreed to act as said agent for service of process, and each of the Issuer and the Parent agrees to take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid.  Service of process upon the Authorized Agent and written notice of such service to the Issuer shall be deemed, in every respect, effective service of process upon the Issuer and any Guarantor.

 

Section 13.06                      No Personal Liability of Directors, Officers, Employees and Shareholders.

 

No director, officer, employee, incorporator or stockholder of the Issuer, any Guarantor or the Trustee, as such, will have any liability for any obligations of the Issuer or any Guarantor under the Notes, this Indenture, the Note Guarantees, the Collateral Documents, the Intercreditor Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each holder of Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.  The waiver may not be effective to waive liabilities under the federal securities laws.

 

Section 13.07                      Governing Law.

 

THIS INDENTURE AND THE NOTES, INCLUDING THE NOTE GUARANTEES, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,  WITHOUT GIVING EFFECT TO APPLICABLE

 

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PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 13.08                      No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Issuer, any Guarantor or any of their respective Subsidiaries or of any other Person.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 13.09                      Successors.

 

All agreements of the Issuer in this Indenture and the Notes shall bind its successors.  All agreements of each Guarantor in this Indenture shall bind its successors, except as otherwise provided in Section 11.04 hereof.  All agreements of the Trustee or the Security Agent in this Indenture shall bind its successors.

 

Section 13.10                      Severability.

 

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

 

Section 13.11                      Counterpart Originals.

 

The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

Section 13.12                      Table of Contents, Headings, etc.

 

The Table of Contents and Headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part of this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 13.13                      Judgment Currency.

 

Any payment on account of an amount that is payable in U.S. Dollars (the “Required Currency”), which is made to or for the account of any Holder of the Notes or the Trustee in lawful currency of any other jurisdiction (the “Judgment Currency”), whether as a result of any judgment or order or the enforcement thereof or the liquidation of the Issuer or any Guarantor, shall constitute a discharge of the Issuer or the Guarantor’s obligation under this Indenture and the Notes or Note Guarantee, as the case may be, only to the extent of the amount of the Required Currency which such Holder or the Trustee, as the case may be, could purchase in the London foreign exchange markets with the amount of the Judgment Currency in accordance with normal banking procedures at the rate of exchange prevailing on the first Business Day following receipt of the payment in the Judgment Currency.  If the amount of the Required Currency that could be so purchased is less than the amount of the Required Currency originally due to such Holder or the Trustee, as the case may be, the Issuer and the Guarantors shall indemnify and hold harmless the Holder or the Trustee, as the case may be, from and against all loss or damage arising out of, or as a result of, such deficiency.  This indemnity shall constitute an obligation separate and independent from the other obligations contained in this Indenture or the Notes, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by any Holder of the Notes or the Trustee from time to time and shall continue in full force and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due hereunder or under any judgment or order.

 

112

 

Section 13.14                      Prescription

 

Claims against the Issuer or any Guarantor for the payment of principal or Additional Amounts, if any, on the Notes will be prescribed ten years after the applicable due date for payment thereof.  Claims against the Issuer or any Guarantor for the payment of interest on the Notes will be prescribed five years after the applicable due date for payment of interest.

 

Section 13.15                      Place of performance

 

(a)                                 Performance

 

The Parties shall perform their obligations under or in connection with this Indenture exclusively at the Place of Performance (as defined below), but in no event at a place in Austria and the performance of any obligations or liability under or in connection with this Indenture or the Notes within the Republic of Austria shall not constitute discharge or performance of such obligation or liability. For the purposes of the above, “Place of Performance” means:

 

(i)                                     in relation to any payment by a Debtor or a Creditor under or in connection with this Indenture, the place at which such payment is to be made pursuant to this Indenture; and

 

(ii)                                  in relation to any other obligation or liability under or in connection with this Indenture, the premises of the Trustee or Security Agent or any other place outside of Austria as the Trustee or Security Agent specifies from time to time.

 

(b)                                 Delivery of notices by Agent

 

Each of the Agents or any Guarantor agrees that any notice or document delivered on it under or in connection with this Indenture or the Notes shall be sent to an address located outside of Austria.

 

(Signatures on following page)

 

113

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the date first written above.

 

	
 
    	
SAPPI PAPIER HOLDING GmbH, as Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ J.H. Passler
    
	
 
    	
 
    	
Name: J.H. Passler
    
	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
 
    	
Name: S.J. Blyth
    
	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
J.P. MORGAN EUROPE LIMITED, as Security Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Franck Gomboc
    
	
 
    	
 
    	
Name: Franck Gomboc
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON, as Trustee, Transfer   Agent, Registrar and Principal Paying Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Lee
    
	
 
    	
 
    	
Name: Michael Lee
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A., as   Luxembourg Paying Agent, Transfer Agent and Registrar
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Lee
    
	
 
    	
 
    	
Name: Michael Lee
    
	
 
    	
 
    	
Title: Authorised Signatory
    

 

 

114

 

	
 
    	
SAPPI DEUTSCHLAND   HOLDING GMBH, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glen T. Pearce
    
	
 
    	
 
    	
Name: Glen T. Pearce
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Name: Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   NETHERLANDS B.V., as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glen T. Pearce
    
	
 
    	
 
    	
Name: Glen T. Pearce
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   GRATKORN GmbH, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ J.H. Passler
    
	
 
    	
 
    	
Name: J.H. Passler
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
 
    	
Name: S.J. Blyth
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   MAGNOSTAR GmbH, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ J.H. Passler
    
	
 
    	
 
    	
Name: J.H. Passler
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
 
    	
Name: S.J. Blyth
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   AUSTRIA PRODUKTIONS-GmbH & Co. KG, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ J.H. Passler
    
	
 
    	
 
    	
Name: J.H. Passler
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
 
    	
Name: S.J. Blyth
    
	
 
    	
 
    	
Title:
    

 

115

 

	
 
    	
SAPPI   EUROPE S.A., as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glen T. Pearce
    
	
 
    	
 
    	
Name: Glen T. Pearce
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Name: Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   INTERNATIONAL S.A., as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ J.H. Passler
    
	
 
    	
 
    	
Name: J.H. Passler
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
 
    	
Name: S.J. Blyth
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   LANAKEN NV, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glen T. Pearce
    
	
 
    	
 
    	
Name: Glen T. Pearce
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Name: Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   LANAKEN PRESS PAPER NV, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glen T. Pearce
    
	
 
    	
 
    	
Name: Glen T. Pearce
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Name: Mathijs J.H   Quaedvlieg
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   FINLAND I Oy, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Berend John Wiersum
    
	
 
    	
 
    	
Name: Berend John Wiersum
    
	
 
    	
 
    	
Title: Director
    

 

116

 

	
 
    	
SAPPI   ALFELD GmbH, as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karl F. Hahlbohm
    
	
 
    	
 
    	
Name: Karl F. Hahlbohm
    
	
 
    	
 
    	
Title: Man. Controlling
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Huster
    
	
 
    	
 
    	
Name: Richard Huster
    
	
 
    	
 
    	
Title: Man. Pulp & Services
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   DEUTSCHLAND GmbH, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter Goer
    
	
 
    	
 
    	
Name: Peter Goer
    
	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   EHINGEN GmbH, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steffen Wurdinger
    
	
 
    	
 
    	
Name: Steffen Wurdinger
    
	
 
    	
 
    	
Title: Mill Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   STOCKSTADT GmbH, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christian Dietershagen
    
	
 
    	
 
    	
Name: Christian Dietershagen
    
	
 
    	
 
    	
Title: Mill Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   PULP ASIA LIMITED, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Loretta Chan
    
	
 
    	
 
    	
Name: Loretta Chan
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI MAASTRICHT   B.V., as Guarantor
    
	
 
    	
On behalf of Sappi Netherlands B.V.
    
	
 
    	
By:
    	
/s/ Glen T. Pearce
    
	
 
    	
 
    	
Name: Glen T. Pearce
    
	
 
    	
 
    	
Title:Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI NIJMEGEN   B.V., as Guarantor
    
	
 
    	
On behalf of Sappi Netherlands B.V.
    
	
 
    	
By:
    	
/s/ Glen T. Pearce
    
	
 
    	
 
    	
Name: Glen T. Pearce
    
	
 
    	
 
    	
Title:Director
    

 

117

 

	
 
    	
SAPPI   LIMITED, as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ M.R. Thompson
    
	
 
    	
 
    	
Name: M.R. Thompson
    
	
 
    	
 
    	
Title: CFO / Executive Director
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI   CLOQUET LLC, as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Annette M. Luchene
    
	
 
    	
 
    	
Name: Annette M. Luchene
    
	
 
    	
 
    	
Title: Treasurer, VP & CFO
    
	
 
    	
 
    	
 
    
	
 
    	
SDW   HOLDINGS CORPORATION, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Annette M. Luchene
    
	
 
    	
 
    	
Name: Annette M. Luchene
    
	
 
    	
 
    	
Title: Treasurer, VP & CFO
    
	
 
    	
 
    	
 
    
	
 
    	
S.D.   WARREN COMPANY, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Annette M. Luchene
    
	
 
    	
 
    	
Name: Annette M. Luchene
    
	
 
    	
 
    	
Title: Treasurer, VP & CFO
    

 

118

 

EXHIBIT A

 

FORM OF NOTE

 

SAPPI PAPIER HOLDING GmbH

 

83/8% Senior Secured Notes due 2019

 

GUARANTEED BY

 

THE GUARANTORS (AS DEFINED IN THE INDENTURE)

 

	
No. _____________
    
	
CUSIP                 
    
	
 
    
	
ISIN                 
    
	
 
    
	
$                  
    
	
 
    
	
Issue Date:                 
    

 

 

SAPPI PAPIER HOLDING GmbH, an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), having its registered office at Brucker Strasse 21, A-8101 Gratkorn, Austria and registered with the Commercial Court of Vienna, Austria under registration number FN 167931 h, for value received promises to pay to                                            , or registered assigns, upon surrender hereof, the principal sum of                                           DOLLARS, subject to any adjustments listed on The Schedule of Exchanges of Interests in the Global Note attached hereto, on June 15, 2019.

 

Interest Payment Dates:  June 15 and December 15

 

Record Dates:  June 1 and December 1

 

Reference is hereby made to the further provisions of this Note set forth herein, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

A-1

 

IN WITNESS WHEREOF, the parties hereto have caused this Note to be signed manually or by facsimile by the duly authorized officers referred to below.

 

 

	
 
    	
SAPPI PAPIER HOLDING GmbH, as Issuer
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
Location:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
Location:
    

 

A-2

 

	
This is one of the Notes referred to in the   within-mentioned Indenture:
    	
 
    
	
 
    	
 
    
	
THE BANK OF NEW YORK MELLON, as Trustee
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

A-3

 

[Back of Note]

 

83/8% Senior Secured Notes due 2019

 

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

 

[Insert the Private Placement Legend]

 

Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

 

(1)                                  INTEREST.  SAPPI PAPIER HOLDING GmbH, an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), having its registered office at Brucker Strasse 21, A-8101 Gratkorn, Vienna Austria and registered with the Commercial Court of Vienna, Austria under registration number FN 167931 h, (the “Issuer”), promises to pay interest on the principal amount of this Note at 83/8% per annum from                                            until maturity.  The Issuer will pay interest semi-annually in arrears on June 15th and December 15th of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”).  Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be                                           .  The Issuer shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Amounts (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

 

(2)                                  METHOD OF PAYMENT.  The Issuer will pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders of Notes at the close of business on June 1st and December 1st preceding the next Interest Payment Date, even if such Notes are cancelled after such record date and on or before such Interest Payment Date, except as provided in Section 2.11 of the Indenture with respect to defaulted interest. The Notes will be payable as to principal, interest, premium and Additional Amounts, if any, through the Paying Agents as provided in the Indenture.  Such payment shall be in U.S. Dollars.

 

(3)                                  PAYING AGENT AND REGISTRAR.  Initially, The Bank of New York Mellon, the Trustee under the Indenture, will act as Principal Paying Agent, Transfer Agent and Registrar.  The Bank of New York Mellon, will act as Paying Agent and Transfer Agent in London and New York City.  The Bank of New York Mellon (Luxembourg) S.A. will act as Paying Agent, Transfer Agent and Registrar in Luxembourg for so long as the Notes are admitted to trading on the Euro MTF and listed on the Official List of the Luxembourg Stock Exchange and the rules and regulations of the Luxembourg Stock Exchange so require.  Upon notice to the Trustee, the Issuer may change any Paying Agent, Registrar or Transfer Agent; provided, however, that in no event may the Issuer appoint a Principal Paying Agent in any member state of the European Union where the Principal Paying Agent would be obliged to withhold or deduct tax in connection with any payment made by it in relation to the Notes unless the Principal Paying Agent would be so obliged if it were located in all other member states. For so long as the Notes are listed on the Euro MTF and the rules of the Luxembourg Stock Exchange so require, the Issuer will publish a notice of any change of Paying Agent, Registrar or Transfer Agent in a newspaper having a general circulation in Luxembourg (currently expected to be the

 

A-4

 

Luxemburger Wort) or, to the extent and in the manner permitted by such rules and regulations, posted on the official website of the Luxembourg Stock Exchange (www.bourse.lu), in accordance with Section 13.01 of the Indenture.

 

(4)                                  INDENTURE.  The Issuer issued the Notes under an Indenture dated as of July 5, 2012 (the “Indenture”) between the Issuer, the Security Agent, the Trustee and The Bank of New York Mellon (Luxembourg) S.A.  The Notes are subject to all such terms, and Holders are referred to the Indenture for a statement of such terms.  To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

 

(5)                                  OPTIONAL REDEMPTION.

 

(a)          At any time prior to June 15, 2015, the Issuer may on one or more occasions redeem up to 35% of the aggregate principal amount of the Notes issued under the Indenture, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 108.375% of the principal amount of the Notes redeemed, plus accrued and unpaid interest and Additional Amounts, if any, to the date of redemption (subject to the rights of holders of the Notes on the relevant record date to receive interest on the relevant interest payment date), with the net cash proceeds of an Equity Offering; provided that:

 

(1)          at least 65% of the aggregate principal amount of the Notes issued under the Indenture (excluding Notes held by the Parent and its Subsidiaries) remain outstanding immediately after the occurrence of such redemption; and

 

(2)          the redemption occurs within 90 days of the date of the closing of such Equity Offering.

 

(b)         At any time prior to June 15, 2015, the Issuer may on any one or more occasions redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the Applicable Premium as of the date of redemption, and accrued and unpaid interest and Additional Amounts, if any, to the date of redemption, subject to the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date.

 

(c)          Except pursuant to subparagraphs (a) and (b) of this Paragraph 5 and pursuant to Paragraph 6, the Notes will not be redeemable at the Issuer’s option prior to June 15, 2015.  On or after June 15, 2015, the Issuer may on any one or more occasions redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest and Additional Amounts, if any, on the Notes redeemed, to the applicable date of redemption, if redeemed during the twelve-month period beginning on June 15 of the years indicated below, subject to the rights of holders of Notes on the relevant record date to receive interest on the relevant interest payment date:

 

	
Year
    	
 
    	
Redemption
   Price
    	
 
    
	
2015 
    	
 
    	
106.281
    	
%
    
	
2016 
    	
 
    	
104.188
    	
%
    
	
2017 
    	
 
    	
102.094
    	
%
    
	
2018 and thereafter 
    	
 
    	
100.000
    	
%
    

 

(d)    Unless the Issuer defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

 

A-5

 

(e)     Any redemption and notice may, in the Issuer’s discretion, be subject to the satisfaction of one or more conditions precedent.

 

(6)                                  REDEMPTION FOR CHANGES IN TAXES.

 

The Issuer may redeem the Notes, in whole but not in part, at its discretion at any time upon giving not less than 30 nor more than 60 days’ prior notice to the Holders of the Notes (which notice will be irrevocable and given in accordance with the procedures described in Section 3.03 and Section 13.01 of the Indenture, at a redemption price equal to the principal amount thereof, together with accrued and unpaid interest, if any, to the date fixed by the Issuer for redemption (a “Tax Redemption Date”) and all Additional Amounts (if any) then due and which will become due on the Tax Redemption Date as a result of the redemption or otherwise (subject to the right of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date and Additional Amounts (if any) in respect thereof), if on the next date on which any amount would be payable in respect of the Notes, the Issuer or any Guarantor (including any successor entity) is or would be required to pay Additional Amounts, and the Issuer or Guarantor cannot avoid any such payment obligation by taking reasonable measures available to it, and the requirement arises as a result of:

 

(a)                                  any change in, or amendment to, the laws or treaties (or any regulations, or rulings promulgated thereunder) of the relevant Tax Jurisdiction affecting taxation which change or amendment becomes effective on or after the Issue Date (or, if the relevant Tax Jurisdiction has changed since the Issue Date, the date on which the then current Tax Jurisdiction became the applicable Tax Jurisdiction under the Indenture); or

 

(b)                                 any change in, or amendment to, the existing official position or the introduction of an official position regarding the application, administration or interpretation of such laws, treaties, regulations or rulings (including a holding, judgment or order by a court of competent jurisdiction or a change in published practice), which change, amendment, application or interpretation becomes effective on or after the Issue Date (or, if the relevant Tax Jurisdiction has changed since the Issue Date, the date on which the then current Tax Jurisdiction became the applicable Tax Jurisdiction under the Indenture).

 

The Issuer will not give any such notice of redemption earlier than 90 days prior to the earliest date on which the Issuer or Guarantor, as the case may be, would be obligated to make such payment or withholding if a payment in respect of the Notes were then due.  Prior to the publication or, where relevant, mailing of any notice of redemption of the Notes pursuant to the foregoing and in accordance with Section 3.03 of the Indenture, the Issuer or the Guarantor, as the case may be, will deliver to the Trustee an opinion of counsel to the effect that there has been such change or amendment and otherwise in compliance with Section 13.03 of the Indenture which would entitle the Issuer to redeem the Notes hereunder. In addition, before the Issuer publishes or mails a notice of redemption of the Notes pursuant to the foregoing and in accordance with Section 3.03 of the Indenture, the Issuer or the Guarantor, as the case may be, will deliver to the Trustee an Officer’s Certificate to the effect that it cannot avoid its obligation to pay Additional Amounts by taking reasonable measures available to it.

 

The Trustee will accept and shall be entitled to rely on such Officer’s Certificate and opinion of counsel as sufficient evidence of the existence and satisfaction of the conditions precedent as described above, in which event it will be conclusive and binding on the Holders of the Notes. For the avoidance of doubt, the implementation of European Council Directive 2003/48/EC or any other directive implementing the conclusions of the ECOFIN Council meeting of 26 and 27 November 2000 on the taxation of savings income or any law implementing or complying with or introduced in order to conform to such directive, will not be a change or amendment for such purposes.

 

A-6

 

(7)                                  [RESERVED]

 

(8)                                  MANDATORY REDEMPTION.  The Issuer shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes.

 

(9)                                  REPURCHASE AT OPTION OF HOLDER.

 

(a)                                  If a Change of Control occurs, each Holder of Notes will have the right to require the Issuer to repurchase all or any part (equal to $200,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes pursuant to an offer (the “Change of Control Offer”) at a price in cash (the “Change of Control Payment”) equal to 101% of the aggregate principal amount of Notes repurchased on the date of purchase plus accrued and unpaid interest and all Additional Amounts (if any) then due on the Notes repurchased to the date of purchase, subject to the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date. Within 30 days following a Change of Control, the Issuer will give notice to each Holder describing the circumstances and/or facts that constitute the Change of Control and offering to purchase all Notes on the Change of Control Payment Date specified in the notice given to the Holders pursuant to Section 3.03 of the Indenture.

 

(b)                                 Any Net Proceeds from Asset Sales that are not applied or invested as provided within the time period set forth in the Indenture will constitute “Excess Proceeds.”  The Issuer may at any time, and the Issuer will within 30 Business Days after the Excess Proceeds exceed US$25.0 million, make an “Asset Sale Offer” in accordance with the procedures set forth in the Indenture to all Holders of the Notes and may make an offer to all Holders of other Indebtedness that is pari passu with the Notes or any Note Guarantees with respect to offers to purchase, prepay or redeem with the proceeds of sales of assets to purchase, prepay or redeem the maximum principal amount of Notes and such other pari passu Indebtedness (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premia, incurred in connection therewith) that may be purchased, prepaid or redeemed out of the Excess Proceeds.  The offer price for the Notes in any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued and unpaid interest and Additional Amounts, if any, to the date of purchase, prepayment or redemption, subject to the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date, and will be payable in cash.  If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Parent may use those Excess Proceeds for general corporate purposes and any other purpose not otherwise prohibited by the Indenture.  If the aggregate principal amount of Notes and other pari passu Indebtedness tendered into (or to be prepaid or redeemed in connection with) such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes and such other pari passu Indebtedness to be purchased on a pro rata basis (or in the manner described in Section 3.02 or Section 13.01 of the Indenture), based on the amounts tendered or required to be prepaid or redeemed.  Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset to zero.

 

(10)                            NOTICE OF REDEMPTION.  Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the Indenture.

 

(11)                            DENOMINATIONS, TRANSFER, EXCHANGE.

 

(a)                                  The Global Notes are in global registered form without coupons attached. The Global Notes will represent the aggregate principal amount of all the Notes issued and not yet

 

A-7

 

cancelled other than Definitive Registered Notes.  [A Holder may transfer or exchange Global Notes in accordance with the Indenture.](1)

 

(b)                                 [The Definitive Registered Notes are in registered form without coupons attached in denominations of $200,000 and integral multiples of $1,000 above $200,000.  A Holder may transfer or exchange Definitive Registered Notes in accordance with the Indenture.  The Indenture requires a Holder, among other things, to furnish appropriate endorsements and transfer documents. The Issuer shall not be required to register the transfer of any Definitive Registered Notes: (A) for a period of 15 calendar days prior to any date fixed for the redemption of the Notes under Section 3.03 of the Indenture; (B) for a period of 15 calendar days immediately prior to the date fixed for selection of Notes to be redeemed in part; (C) for a period of 15 calendar days prior to the record date with respect to any interest payment date; or (D) which the Holder has tendered (and not withdrawn) for repurchase in connection with a Change of Control Offer or an Asset Sale Offer.](2)

 

(12)                            PERSONS DEEMED OWNERS.  The registered Holder of a Note may be treated as its owner for all purposes.

 

(13)                            AMENDMENT, SUPPLEMENT AND WAIVER.  Subject to certain exceptions, the Indenture, the Notes, the Note Guarantees, the Intercreditor Agreement or the Collateral Documents may be amended or supplemented by the Issuer, the Guarantors, the Trustee and the Security Agent with the consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding (including, without limitation, Additional Notes, if any) voting as a single class and, subject to Section 6.04 and Section 6.07 of the Indenture, any existing Default or Event of Default (other than a continuing Default or Event of Default in the payment of the principal of, interest and premium and Additional Amounts, if any, on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of the Indenture, the Notes, the Note Guarantees, the Intercreditor Agreement or the Collateral Documents may be waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes (including, without limitation, Additional Notes, if any) voting as a single class.  Without the consent of any Holder, the Issuer, the Guarantors, the Trustee and the Security Agent may amend or supplement the Indenture, the Notes, the Note Guarantees, the Intercreditor Agreement and the Collateral Documents to cure any ambiguity, defect, inconsistency or error; to provide for uncertificated Notes in addition to or in place of certificated Notes; to provide for the assumption of the Issuer’s or a Guarantor’s obligations to the Holders of the Notes and Note Guarantees pursuant to a transaction governed by Section 5.01 of the Indenture; to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any such Holder in any material respect; to conform the text of the Indenture, the Note Guarantees, the Collateral Documents or the Notes to any provision of the “Description of Notes” section of the Offering Memorandum, to the extent that such provision in that “Description of Notes” was intended to be a verbatim recitation of a provision of the Indenture, the Note Guarantees, the Collateral Documents or the Notes; to enter into additional or supplemental Collateral Documents; to release Collateral in accordance with the terms of the Indenture and the Collateral Documents or to release any Note Guarantee in accordance with the terms of the Indenture; to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture as of the Issue Date; to allow any Guarantor to execute a supplemental indenture and/or a Note Guarantee with respect to the Notes; to provide for uncertificated Notes in addition to or in place of certificated Notes (provided that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of Title 26 of the U.S. Code, in a manner such that the uncertified Notes are described in Section 163(f)(2)(B) of the U.S. Code); to evidence and provide the acceptance of the appointment of a successor Trustee under the Indenture; or to add additional parties to the

 

(1)  Include in any Global Note.

 

(2)  Include in any Definitive Registered Note.

 

A-8

 

Intercreditor Agreement or any Collateral Documents to the extent permitted under the Indenture and thereunder.

 

(14)                            DEFAULTS AND REMEDIES. Each of the following events constitute “Events of Default” under the Indenture: (i) default for 30 days in the payment when due of interest or Additional Amounts, if any, with respect to, the Notes; (ii) default in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on, the Notes; (iii) failure by the Issuer to make a Change of Control Offer or Asset Sale Offer or to purchase Notes in accordance with Section 4.10 or Section 4.14 of the Indenture or failure by the Issuer or the relevant Guarantor for 30 days after written notice to the Parent by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, voting as a single class, to comply with any other provision described in Section 4.10 or Section 4.14 of the Indenture; (iv) failure by the Parent, the Issuer or relevant Guarantor to comply with Section 5.01 of the Indenture; (v) failure by the Parent, the Issuer or relevant Guarantor for 60 days after written notice to the Parent by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, voting as a single class, to comply with any of the agreements in the Indenture (other than a default in performance, or breach, or a covenant or agreement which is specifically dealt with in clauses (i), (ii), (iii) or (iv) above), the Notes or the Note Guarantee; (vi) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Parent or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Parent or any of its Restricted Subsidiaries), whether such Indebtedness or Guarantee exists on, or is created after, the Issue Date, if that default: (I) is caused by a failure to pay principal of such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or (II) results in the acceleration of such Indebtedness prior to its express maturity, and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated aggregates US$25.0 million or more; (vii) failure by the Parent or any Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, to pay final judgments entered by a court or courts of competent jurisdiction aggregating in excess of US$25.0 million (exclusive of any amounts that an insurance company has acknowledged liability for), which final judgments shall not have been discharged or waived and there shall have been a period of 60 consecutive days during which a stay of enforcement of such judgment or order, by reason of an appeal, waiver or otherwise, shall not have been in effect; (viii) any security interest created by the Collateral Documents ceases to be in full force and effect (except as permitted by the terms of the Indenture, the Intercreditor Agreement or the Collateral Documents or pursuant to limitations on enforceability, validity or effectiveness imposed by applicable law) with respect to Collateral having a Fair Market Value in excess of US$5.0 million or an assertion by the Parent or any of its Restricted Subsidiaries, in any pleading in any court of competent jurisdiction, that any Collateral having a Fair Market Value in excess of US$5.0 million is not subject to a valid, perfected security interest (except in accordance with the terms of the Indenture, the Intercreditor Agreement or the Collateral Documents or pursuant to limitations on enforceability, validity or effectiveness imposed by applicable law); (ix) except as permitted by the Indenture (including with respect to any limitations) or pursuant to limitations on enforceability, validity or effectiveness imposed by applicable law, any Note Guarantee of the Parent or a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or the Parent or any Guarantor which is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, or any Person acting on behalf of any such Guarantor, denies or disaffirms its obligations under its Note Guarantee; (x) the Issuer, the Parent or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law: (I) commences a voluntary case; (II) consents to the entry of an order for relief against it in an involuntary case; (III) consents to the appointment of a custodian of it or for all or substantially all of its property; (IV) makes a general assignment for the benefit of its creditors;

 

A-9

 

or (V) admits in writing its inability to pay its debts generally as they become due; and (xi) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (I) is for relief against the Parent, the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary in an involuntary case; (II) appoints a custodian or administrator of the Parent, the Issuer, or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property of the Parent, the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; or (III) orders the liquidation of the Parent, the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and, in each case, the order or decree remains unstayed and in effect for 60 consecutive days.  In the case of an Event of Default specified in clause (x) or (xi) above, with respect to the Parent or the Issuer, all outstanding Notes will become due and payable immediately without further action or notice.  If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately and may instruct the Security Agent to enforce any Collateral pursuant to the terms of the Intercreditor Agreement.  In the event of a declaration of acceleration of the Notes because an Event of Default described in clause (vi) of above has occurred and is continuing, the declaration of acceleration of the Notes shall be automatically annulled if the event of default or payment default triggering such Event of Default pursuant to clause (vi) shall be remedied or cured, or waived by the holders of the Indebtedness that gave rise to such Event of Default, or such Indebtedness shall have been discharged in full, within 30 days after the declaration of acceleration with respect thereto and if (a) the annulment of the acceleration of the Notes would not conflict with any judgment or decree of a court of competent jurisdiction and (b) all existing Events of Default, except nonpayment of principal, premium, interest, or Additional Amounts, if any, on the Notes that became due solely because of the acceleration of the Notes, have been cured or waived.  The Holders of not less than a majority in aggregate principal amount of the Notes outstanding may, on behalf of the holders of all outstanding Notes, waive any past Default under the Indenture and its consequences, except a continuing Default in the payment of the principal of, premium, if any, any Additional Amounts or interest on any Note held by a non-consenting holder (which may only be waived with the consent of Holders of the Notes holding at least 90% of the aggregate principal amount of the Notes outstanding under the Indenture) and except as set forth in the fourth paragraph of Section 9.02 of the Indenture.  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of the Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.  Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any direction that conflicts with law or the Indenture or that the Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal liability.

 

(15)                            TRUSTEE DEALINGS WITH ISSUER.  The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or any Affiliate of the Issuer with the same rights it would have if it were not Trustee.

 

(16)                            NO RECOURSE AGAINST OTHERS. No director, officer, employee, incorporator or stockholder of the Issuer, any Guarantor or the Trustee, as such, shall have any liability for any obligations of the Issuer or any Guarantor under the Notes, the Indenture, the Note Guarantees, the Collateral Documents, the Intercreditor Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each holder of Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.  The waiver may not be effective to waive liabilities under the federal securities laws.

 

A-10

 

(17)                            AUTHENTICATION.  This Note shall not be valid until authenticated by the manual signature of an authorized signatory of the Trustee or an authenticating agent.

 

(18)                            ABBREVIATIONS.  Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(19) CUSIP AND ISIN AND COMMON CODE NUMBERS.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.  The Issuer has caused Common Code numbers to be printed on the Notes and the Trustee may use Common Code numbers in notices of redemption as a convenience to Holders. In addition, the Issuer has caused ISIN numbers to be printed on the Notes and the Trustee may use ISIN numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of any such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

(20)                            GOVERNING LAW

 

THE INDENTURE AND THE NOTES, INCLUDING THE NOTE GUARANTEES, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

The Parent will furnish to any Holder upon written request and without charge a copy of the Indenture, the Intercreditor Agreement and the Collateral Agreement.  Requests may be made to:

 

Sappi Limited
 49 Ameshoff Street
 Braamfontein
 Johannesburg 2001
 South Africa
 Attention: Legal Department

 

(21)                            SUBJECT TO INTERCREDITOR AGREEMENT.  Each Holder of the Notes, by accepting a Note, agrees to be bound by all of the terms and provisions of the Indenture and the Intercreditor Agreement, as the same may be amended from time to time, and acknowledges that the claims of the Holders of the Notes are subject to the Intercreditor Agreement.  Each Holder, by accepting a Note, authorizes and requests the Security Agent to, on such Holder’s behalf, (i) make all undertakings, representations, offers and agreements of the Security Agent set forth in the Intercreditor Agreement and (ii) take all actions called for to be taken by the Security Agent in the Intercreditor Agreement.

 

A-11

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

	
(I)
    	
or (we) assign and transfer this Note to:
    	
 
    	
 
    
	
 
    	
 
    	
(Insert   assignee’s legal name)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(Insert assignee’s soc. sec. or tax I.D.   no.)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(Print or type assignee’s name, address and zip   code)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
and irrevocably appoint
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
to transfer this Note on the books of the Issuer.  The agent may substitute another to act for   him.  
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Your Signature:
    	
 
    	
 
    
	
 
    	
 
    	
(Sign exactly as your name appears on the face
   of this Note)
    
	
 
    	
 
    	
 
    
	
 
    	
Signature Guarantee*:
    	
 
    
									

 

*  Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

A-12

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.10 or Section 4.14 of the Indenture, check the appropriate box below:

 

o Section 4.10                 o Section 4.14

 

If you want to elect to have only part of the Note purchased by the Issuer pursuant to Section 4.10 or Section 4.14 of the Indenture, state the amount you elect to have purchased:

 

	
$                           
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
Your Signature:
    	
 
    	
 
    
	
 
    	
(Sign exactly as your name appears on the face of   this Note)
    
	
 
    	
 
    
	
 
    	
Tax Identification No.:
    	
 
    	
 
    
	
 
    	
 
    
	
Signature Guarantee*:
    	
 
    
					

 

*  Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

A-13

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Registered Note, or exchanges of a part of another Global Note or Definitive Registered Note for an interest in this Global Note, have been made:

 

	
Date of
   Exchange
    	
 
    	
Amount of
   decrease in
   Principal Amount
   of this Global Note
    	
 
    	
Amount of increase
   in Principal
   Amount of
   this Global Note
    	
 
    	
Principal
   Amount of this Global
   Note following such
   decrease (or increase)
    	
 
    	
Signature of
   authorized officer
   of Trustee
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-14

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

[Issuer address]

 

[Trustee/Registrar address]

 

Re: $300,000,000 83/8% Senior Secured Notes due 2019

 

Reference is hereby made to the Indenture, dated as of July 5, 2012 (the “Indenture”), between, inter alia, Sappi Papier Holding GmbH, an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), having its registered office at Brucker Strasse 21, A-8101 Gratkorn, Austria and registered with the Commercial Court of Vienna, Austria under registration number FN 167931 h, (the “Issuer”), J.P. Morgan Europe Limited, as the Security Agent, The Bank of New York Mellon, as Trustee, Paying Agent, Registrar and Transfer Agent, and The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg Paying Agent.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

                                            , (the “Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in the principal amount of $                       in such Note[s] or interests (the “Transfer”), to                                                        (the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.  o  Check if Transferee will take delivery of a Book-Entry Interest in the 144A Global Note or a Definitive Registered Note Pursuant to Rule 144A.  The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or the Book-Entry Interest or Definitive Registered Note is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or the Book-Entry Interest or Definitive Registered Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A under the U.S. Securities Act in a transaction meeting the requirements of Rule 144A under the U.S. Securities Act and such Transfer is in compliance with any applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or the Book-Entry Interest or Definitive Registered Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Definitive Registered Note and in the Indenture and the U.S. Securities Act.

 

2.  o  Check if Transferee will take delivery of a Book-Entry Interest in the Regulation S Global Note or a Definitive Registered Note pursuant to Regulation S.  The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the U.S. Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market, (ii) such Transferor does not know that the transaction was prearranged with a buyer in the United States, (iii) no directed selling efforts have been made in connection with the Transfer in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the U.S. Securities Act, (iv) the transaction is not part of a plan or

 

B-1

 

scheme to evade the registration requirements of the U.S. Securities Act and (v) if the proposed transfer is being effected prior to the expiration of a Restricted Period, the transferee is not a U.S. Person, as such term is defined pursuant to Regulation S of the U.S. Securities Act, and will take delivery only as a Book-Entry Interest so transferred through Euroclear or Clearstream. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred Book-Entry Interest or Definitive Registered Note will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global Note and/or the Definitive Registered Note and in the Indenture and the U.S. Securities Act.

 

3.  o  Check and complete if Transferee will take delivery of a Book-Entry Interest in a Global Note or a Definitive Registered Note pursuant to any provision of the U.S. Securities Act other than Rule 144A or Regulation S.  The Transfer is being effected in compliance with the transfer restrictions applicable to Book-Entry Interests in Global Notes and Definitive Registered Notes and pursuant to and in accordance with the U.S. Securities Act and any applicable blue sky securities laws of any state of the United States.

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Insert Name of Transferor]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

B-2

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.                                       The Transferor owns and proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)                                  o a Book-Entry Interest in the:

 

(i)                                     o 144A Global Note (CUSIP/ISIN                    ), or

 

(ii)                                  o Regulation S Global Note (CUSIP/ISIN                     ).

 

2.                                       After the Transfer the Transferee will hold:

 

[CHECK ONE]

 

(a)                                  o a Book-Entry Interest in the:

 

(i)                                     o 144A Global Note (CUSIP/ISIN]                     ), or

 

(ii)                                  o Regulation S Global Note (CUSIP/ISIN                     ).

 

in accordance with the terms of the Indenture.

 

B-3

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

[Issuer address]

 

[Trustee/Registrar address]

 

Re: $300,000,000 83/8% Senior Secured Notes due 2019

 

(ISIN                      ; Common Code                       )

 

Reference is hereby made to the Indenture, dated as of July 5, 2012 (the “Indenture”), between, inter alia, SAPPI PAPIER HOLDING GmbH, an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), having its registered office at Brucker Strasse 21, A-8108 Gratkorn, Austria and registered with the Commercial Court of Vienna, Austria under registration number FN 167931 h (the “Issuer”) J.P. Morgan Europe Limited, as Security Agent, The Bank of New York Mellon, as Trustee, Paying Agent, Registrar and Transfer Agent, and The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg Paying Agent.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

                                                , (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal amount of $                         in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner hereby certifies that:

 

1.  o  Check if Exchange is from Book-Entry Interest in a Global Note for Definitive Registered Notes.  In connection with the Exchange of the Owner’s Book-Entry Interest in a Global Note for Definitive Registered Notes in an equal amount, the Owner hereby certifies that such Definitive Registered Notes are being acquired for the Owner’s own account without transfer.  The Definitive Registered Notes issued pursuant to the Exchange will be subject to restrictions on transfer enumerated in the Indenture and the U.S. Securities Act.

 

2.  o  Check if Exchange is from Definitive Registered Notes for Book-Entry Interest in a Global Note.  In connection with the Exchange of the Owner’s Definitive Registered Notes for Book-Entry Interest in a Global Note in an equal amount, the Owner hereby certifies that such Book-Entry Interest in a Global Note are being acquired for the Owner’s own account without transfer.  The Book-Entry Interests transferred in exchange will be subject to restrictions on transfer enumerated in the Indenture and the U.S. Securities Act.

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer.

 

	
 
    	
 
    
	
 
    	
[Insert Name of Transferor]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

C-1

 

ANNEX A TO CERTIFICATE OF EXCHANGE

 

1.                                       The Owner owns and proposes to exchange the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)                                  o a Book-Entry Interest held through DTC Account No.                      in the:

 

(i)                                     o 144A Global Note (CUSIP/ISIN                      ), or

 

(ii)                                  o Regulation S Global Note (CUSIP/ISIN                    ), or

 

(b)                                 o a Definitive Registered Note.

 

2.                                       After the Exchange the Owner will hold:

 

[CHECK ONE]

 

(a)                                  o a Book-Entry Interest held through DTC Account No.                      in the:

 

(i)                                     o 144A Global Note (CUSIP/ISIN                     ), or

 

(ii)                                  o Regulation S Global Note (CUSIP/ISIN                     ), or

 

(b)                             o a Definitive Registered Note.

 

in accordance with the terms of the Indenture.

 

C-2

 

EXHIBIT D

 

FORM OF NOTATION OF GUARANTEE

 

For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the Indenture and subject to the provisions, including the limitations, in the Indenture dated as of July 5, 2012 (the “Indenture”) among Sappi Papier Holding GmbH (the “Issuer”), the Guarantors party thereto, J.P. Morgan Europe Limited, as security agent (the “Security Agent”) and The Bank of New York Mellon, as trustee (the “Trustee”) and The Bank of New York Mellon (Luxembourg) S.A., (a) the due and punctual payment of the principal of, premium, Additional Amounts, if any, and interest on, the Notes, whether at maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the due and punctual performance of all other obligations of the Issuer to the Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.  The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article 11 of the Indenture and the Intercreditor Agreement and reference is hereby made to the Indenture for the precise terms of the Note Guarantee.  Each Holder of a Note, by accepting the same, (a) agrees to and shall be bound by such provisions and (b) appoints the Trustee as attorney-in-fact of such Holder for such purpose.

 

Capitalized terms used but not defined herein have the meanings given to them in the Indenture.

 

	
 
    	
[NAME OF GUARANTORS]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

D-1

 

EXHIBIT E

 

BRINGING THIS DOCUMENT OR ANY CERTIFIED COPY OF THIS DOCUMENT INTO THE REPUBLIC OF AUSTRIA AS WELL AS ANY WRITTEN CONFIRMATION (INCLUDING E-MAIL AND FAX) OR WRITTEN REFERENCE (INCLUDING E-MAIL AND FAX) TO THIS DOCUMENT MAY CAUSE THE IMPOSITION OF AUSTRIAN STAMP DUTY TAX.

 

FORM OF SUPPLEMENTAL INDENTURE
 TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

Supplemental Indenture (this “Supplemental Indenture”), dated as of                                 , among                                     , a company organized and existing under the laws of                                (the “Subsequent Guarantor”), [a subsidiary of the Parent (as such term is defined in the indenture referred to below) (or its permitted successor),] Sappi Papier Holding GmbH, an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), having its registered office at Brucker Strasse 21, A-8108 Gratkorn, Austria and registered with the Commercial Court of Vienna, Austria under registration number FN 167931 h, J.P. Morgan Europe Limited, as Security Agent, The Bank of New York Mellon, as Trustee, Principal Paying Agent, Registrar and Transfer Agent, and The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg Paying Agent.

 

W I T N E S S E T H

 

WHEREAS, the Issuer has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as July 5, 2012, providing for the issuance $300,000,000 83/8% Senior Secured Notes due 2019 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain circumstances the Subsequent Guarantor shall execute and deliver to the Trustee a supplemental indenture and notation of guarantee pursuant to which the Subsequent Guarantor shall unconditionally guarantee all of the Issuer’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Issuer and the Trustee are authorized to execute and deliver this Supplemental Indenture.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Subsequent Guarantor and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

 

1.                                       CAPITALIZED TERMS.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       AGREEMENT TO GUARANTEE.  The Subsequent Guarantor hereby agrees to provide an unconditional Guarantee on the terms and subject to the provisions, including the limitations, and conditions set forth in the Note Guarantee and in the Indenture including but not limited to Article 11 thereof, and hereby further agrees to accede to the Indenture as a Guarantor and be bound by the covenants therein applicable to Guarantors.

 

3.                                       EXECUTION AND DELIVERY.

 

(a)                                  To evidence its Guarantee, the Subsequent Guarantor hereby agrees that a notation of such Guarantee shall be endorsed by an Officer of the Subsequent Guarantor on each Note authenticated and delivered by the Trustee and that this Supplemental Indenture shall be executed on behalf of the Subsequent Guarantor by one of its Directors or Officers.

 

E-1

 

(b)                                 The Subsequent Guarantor hereby agrees that its Guarantee shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Guarantee.

 

(c)                                  If an Officer whose signature is on this Supplemental Indenture or on the Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Guarantee is endorsed, the Guarantee shall be valid nevertheless.

 

(d)                                 Upon execution of this Supplemental Indenture, the delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this Supplemental Indenture on behalf of the Subsequent Guarantor.

 

4.                                       [RESERVED]

 

5.                                       RELEASES.                                 Each Guarantee shall be automatically and unconditionally released and discharged in accordance with Section 11.04 of the Indenture.

 

6.                                       NO RECOURSE AGAINST OTHERS.  No past, present or future director, officer, employee, incorporator, stockholder or agent of any Subsequent Guarantor, as such, shall have any liability for any obligations of the Issuer or any Subsequent Guarantor under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

 

7.                                       INCORPORATION BY REFERENCE.  Section 13.05 of the Indenture is incorporated by reference into this Supplemental Indenture as if more fully set out herein.

 

8.                                       THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

9.                                       RATIFICATION OF INDENTURE — SUPPLEMENTAL INDENTURE PART OF INDENTURE.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes.

 

10.                                 COUNTERPARTS.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

11.                                 EFFECT OF HEADINGS.  The Section headings herein are for convenience only and shall not affect the construction hereof.

 

12.                                 THE TRUSTEE.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Subsequent Guarantor and the Issuer.

 

E-2

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

	
Dated:                               ,              
    	
 
    	
[SUBSEQUENT GUARANTOR]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SAPPI PAPIER   HOLDING GmbH
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON, as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

E-3

 

EXHIBIT F

 

AGREED SECURITY PRINCIPLES

 

Considerations

 

1.                                       In determining what assets will be pledged in favor of the Notes and/or the Note Guarantees pursuant Section 4.10(b) of the Indenture, the following matters will be taken into account.  Security shall not be created or perfected to the extent that:

 

(a)                                  it would result in any breach of general statutory limitations, corporate benefit, financial assistance, fraudulent preference, thin capitalisation laws or regulations or retention of title claims (or analogous restrictions) of any applicable jurisdiction, in which case, the ability of the Parent or a Restricted Subsidiary to provide the Security will be limited;

 

(b)                                 it would result in a material risk to the officers or directors of the relevant grantor of Security of contravention of their fiduciary duties and/or of civil or criminal liability, provided that the Parent shall cause its Restricted Subsidiaries to use commercially reasonable efforts to overcome any such obstacle;

 

(c)                                  it would be subject to third party arrangements which are permitted by the Indenture and which prevent those assets from being charged, provided that commercially reasonable efforts to obtain consent to charging any such assets shall be used by the Parent or Restricted Subsidiary if the relevant asset is material;

 

(d)                                 the Security is not in respect of a category of assets included in the Collateral as of the Issue Date; or

 

(e)                                  it would result in costs and/or an administrative burden that are disproportionate to the benefit obtained by the beneficiaries of such Security, in which case, the maximum granted or secured amount may be limited to minimise costs where the benefit of increasing the granted or secured amount is disproportionate to the level of such costs, and the parties shall discuss in good faith how to mitigate the costs triggered by the creation of that Security.

 

2.                                       For the avoidance of doubt, in these Agreed Security Principles, “cost” includes, but is not limited to, income tax cost, ad valorem registration taxes payable on the creation or enforcement or for the continuance of any Security, stamp duties, notarisation, registration, out-of-pocket expenses, and other fees, taxes, duties and expenses directly incurred by the relevant grantor of Security or any of its direct or indirect owners, subsidiaries or Affiliates.

 

Security to be granted

 

1.                                       Perfection of Liens on the Security, when required, and other legal formalities will be completed as soon as practicable and, in any event, within the time periods specified by applicable law in order to ensure due perfection.

 

Obligations to be Secured

 

1.                                       The Security will secure both the Notes, the Note Guarantees and the Issuer’s Obligations under the Indenture to the extent permitted by law and Security is to be granted in favor of the Security Agent on behalf of the Holders of Notes and the Trustee.

 

F-1

 

Terms of the Collateral Documents

 

The following principles will be reflected in the terms of any Security granted in accordance with Section 4.10(b):

 

1.                                       the Security will be first ranking, to the extent reasonably possible and subject to the terms of the Intercreditor Agreement to the extent required by the Intercreditor Agreement;

 

2.                                       the Security shall be enforceable in accordance with the terms of the Indenture and the Intercreditor Agreement;

 

3.                                       the Collateral Documents shall operate to create Security rather than to impose new commercial obligations and accordingly shall not contain any additional undertakings other than those corresponding to an undertaking or required in order to protect or preserve the Security; and

 

4.                                       Security shall become enforceable upon the occurrence of an Event of Default that results in the Notes becoming due and payable, following the request by Holders of the required amount of Notes, in accordance with the terms of the Indenture and the Intercreditor Agreement.

 

F-2EXHIBIT 4.25

 

Dated 10 July 2012

 

 

SAPPI PAPIER HOLDING GMBH

 

 

UNICREDIT BANK AUSTRIA AG
  as Mandated Lead Arranger

 

with

 

UNICREDIT BANK AUSTRIA AG
  acting as Agent

 

	
 
    
	
 
    
	
EUR   142,000,000 TERM LOAN FACILITY AGREEMENT
    
	
 
    

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS   AND INTERPRETATION
    	
 
    	
1
    
	
2.
    	
THE   FACILITY
    	
 
    	
26
    
	
3.
    	
PURPOSE
    	
 
    	
27
    
	
4.
    	
CONDITIONS   OF UTILISATION
    	
 
    	
27
    
	
5.
    	
UTILISATION
    	
 
    	
28
    
	
6.
    	
REPAYMENT
    	
 
    	
29
    
	
7.
    	
PREPAYMENT   AND CANCELLATION
    	
 
    	
29
    
	
8.
    	
INTEREST
    	
 
    	
36
    
	
9.
    	
INTEREST   PERIODS
    	
 
    	
37
    
	
10.
    	
CHANGES   TO THE CALCULATION OF INTEREST
    	
 
    	
37
    
	
11.
    	
FEES
    	
 
    	
38
    
	
12.
    	
TAX   GROSS UP AND INDEMNITIES
    	
 
    	
39
    
	
13.
    	
INCREASED   COSTS
    	
 
    	
45
    
	
14.
    	
OTHER   INDEMNITIES
    	
 
    	
46
    
	
15.
    	
MITIGATION   BY THE LENDERS
    	
 
    	
47
    
	
16.
    	
COSTS   AND EXPENSES
    	
 
    	
48
    
	
17.
    	
GUARANTEE   AND INDEMNITY
    	
 
    	
48
    
	
18.
    	
REPRESENTATIONS
    	
 
    	
56
    
	
19.
    	
INFORMATION   UNDERTAKINGS
    	
 
    	
63
    
	
20.
    	
FINANCIAL   COVENANTS
    	
 
    	
68
    
	
21.
    	
GENERAL   UNDERTAKINGS
    	
 
    	
73
    
	
22.
    	
EVENTS   OF DEFAULT
    	
 
    	
90
    
	
23.
    	
CHANGES   TO THE LENDERS
    	
 
    	
96
    
	
24.
    	
CHANGES   TO THE OBLIGORS
    	
 
    	
100
    
	
25.
    	
ROLE   OF THE AGENT AND THE MANDATED LEAD ARRANGER
    	
 
    	
103
    
	
26.
    	
CONDUCT   OF BUSINESS BY THE FINANCE PARTIES
    	
 
    	
111
    
	
27.
    	
SHARING   AMONG THE LENDERS
    	
 
    	
111
    
	
28.
    	
PAYMENT   MECHANICS
    	
 
    	
112
    
	
29.
    	
SET-OFF
    	
 
    	
116
    
	
30.
    	
NOTICES
    	
 
    	
116
    
	
31.
    	
CALCULATIONS   AND CERTIFICATES
    	
 
    	
119
    
	
32.
    	
PARTIAL   INVALIDITY
    	
 
    	
119
    
	
33.
    	
REMEDIES   AND WAIVERS
    	
 
    	
119
    
	
34.
    	
AMENDMENTS   AND WAIVERS
    	
 
    	
119
    

 

I

 

	
35.
    	
PLACE   OF PERFORMANCE
    	
 
    	
124
    
	
36.
    	
CONFIDENTIALITY
    	
 
    	
124
    
	
37.
    	
GOVERNING   LAW
    	
 
    	
127
    
	
38.
    	
ENFORCEMENT
    	
 
    	
127
    
	
SCHEDULE 1 THE ORIGINAL PARTIES
    	
 
    	
128
    
	
PART A THE ORIGINAL   OBLIGORS
    	
 
    	
128
    
	
PART B THE ORIGINAL   LENDERS
    	
 
    	
129
    
	
SCHEDULE 2 CONDITIONS PRECEDENT
    	
 
    	
130
    
	
PART A CONDITIONS   PRECEDENT TO INITIAL UTILISATION
    	
 
    	
130
    
	
PART B CONDITIONS   PRECEDENT REQUIRED TO BE DELIVERED BY AN ADDITIONAL GUARANTOR
    	
 
    	
135
    
	
SCHEDULE 3 UTILISATION REQUEST
    	
 
    	
138
    
	
SCHEDULE 4 MANDATORY COST FORMULAE
    	
 
    	
139
    
	
SCHEDULE 5 FORM OF TRANSFER CERTIFICATE
    	
 
    	
142
    
	
PART A FORM OF   TRANSFER CERTIFICATE
    	
 
    	
142
    
	
PART B FORM OF   AUSTRIAN TRANSFER CERTIFICATE
    	
 
    	
145
    
	
SCHEDULE 6 FORM OF ACCESSION LETTER
    	
 
    	
148
    
	
SCHEDULE 7 FORM OF RESIGNATION LETTER
    	
 
    	
150
    
	
SCHEDULE 8 FORM OF COMPLIANCE CERTIFICATE
    	
 
    	
151
    
	
SCHEDULE 9 STAMP DUTY GUIDELINES
    	
 
    	
153
    

 

II

 

THIS AGREEMENT is dated 10 July 2012 and made

 

BETWEEN:

 

(1)           SAPPI LIMITED  a company incorporated under the laws of the Republic of South Africa (the  Company);

 

(2)           SAPPI PAPIER HOLDING GMBH, a limited liability company incorporated under the laws of the Republic of Austria (the Borrower);

 

(3)           THE ENTITIES listed in Part A of Schedule 1 (The Original Obligors) as original guarantors (the Original Guarantors);

 

(4)           UNICREDIT BANK AUSTRIA AG as mandated lead arranger  (the Mandated  Lead  Arranger);

 

(5)           THE FINANCIAL INSTITUTIONS listed in Part B of Schedule 1 (The Original Lenders) as original lenders (the Original Lenders); and

 

(6)           UNICREDIT BANK AUSTRIA AG as agent of the Lenders (the Agent),

 

together the Parties.

 

IT IS AGREED as follows:

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1          Definitions

 

In this Agreement:

 

2009  Bonds means the 2009 Bonds as to be defined in the Side Letter.

 

2009  Bonds Indenture means the 2009 Bonds Indenture as to be defined in the Side Letter.

 

2011 Bonds means the 2011 Bonds as to be defined in the Side Letter.

 

2011 Bonds Indentures means the 2011 Bonds Indentures as to be defined in the Side Letter.

 

2011 Security Documents means each of the documents to be listed in Part I of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

2012  Bonds means the 2012 Bonds as to be defined in the Side Letter.

 

2012 Bonds Indentures means the 2012 Bonds Indentures as to be defined in the Side Letter.

 

2012 Security Documents means each of the documents to be listed in Part J of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Acceptable Bank means a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of A or higher by Standard & Poor’s or

 

1

 

Fitch or A1 or higher by Moody’s or a comparable rating from an internationally recognised credit ratings agency.

 

Accession Letter means a document substantially in the form set out in Schedule 6 (Form of Accession Letter).

 

Additional Cost Rate has the meaning given to it in Schedule 4 (Mandatory Costs Formulae).

 

Additional Guarantor means a company which becomes an Additional Guarantor in accordance with Clause 24 (Changes to the Obligors).

 

Affiliate means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company and, for the purpose of Clause 23 (Changes to the Lenders) and Clause 36 (Confidentiality) only, in relation to Raiffeisen Bank International AG, also any of its direct or indirect shareholders and their respective Subsidiaries.

 

Agent’s Spot Rate of Exchange means the Agent’s spot rate of exchange for the purchase of the relevant currency with EUR in the Vienna foreign exchange market at or about 11:00 a.m. on a particular day.

 

Annual Update has the meaning given to that term in paragraph (a)(ii) of Clause 19.4 (Information: Miscellaneous).

 

Applicable Accounting Principles means GAAP and practices and financial reference periods used in the preparation of the Original Financial Statements.

 

Assignment and Transfer Fee means EUR 2,500.

 

Auditors means Deloitte & Touche.

 

Austrian Guarantor means a Guarantor incorporated in the Republic of Austria.

 

Austrian Lender means a Lender that has its seat (Sitz), place of management (Geschäftsleitung) or a permanent establishment (Betriebsstätte) in the Republic of Austria.

 

Austrian Obligor means the Borrower and an Austrian Guarantor, as the case may be.

 

Austrian Security Documents means each of the Austrian security documents to be listed in Part A of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Austrian Transfer Certificate means a certificate substantially in the form set out in Part B of Schedule 5 (Form of Austrian Transfer Certificate) or any other form agreed between the Agent and the Company.

 

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

 

Availability Period means the period from and including the Signing Date to and including the date falling sixty (60) days from the Signing Date, but in any case ending on (and including) 30 September 2012.

 

2

 

Available Commitment means a Lender’s Commitment minus:

 

(a)           the amount of its participation in the Loan; and

 

(b)           in relation to the proposed Utilisation, the amount of its participation in the Loan that is due to be made on or before the proposed Utilisation Date other than that Lender’s participation in the Loan that is due to be repaid, prepaid or, as the case may be, expire on or before the proposed Utilisation Date.

 

Available Facility means the aggregate for the time being of each Lender’s Available Commitment.

 

BACS means Bankers’ Automated Clearing Services.

 

Belgian Guarantor means a Guarantor incorporated and existing under Belgian law.

 

Belgian Security Documents means each of the Belgian security documents to be listed in Part B of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Board means the Board of Governors of the Federal Reserve System of the US.

 

Break Costs means

 

(a)           as long as and to the extent a Lender’s participation in the Loan is funded by OeKB, the amount (if any) which is payable by that Lender to OeKB in connection with the prepayment of the Loan; or

 

(b)           in any other case, the amount (if any) by which:

 

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

 

exceeds:

 

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

 

Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business in Vienna and which is a TARGET Day and in relation to any date for payment or purchase of a currency other than Euro the principal financial centre of that currency.

 

Change of Control has the meaning ascribed to such term in paragraph (a)(ii) of Clause 7.4 (Exit).

 

3

 

Charged Property means all of the assets of the Obligors which from time to time are, or are expressed to be, the subject of the Conditional Security.

 

Commitment means:

 

(a)           in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in Part B of Schedule 1 (The Original Lenders) provided that the amount shall be reduced pro rata if on the day of the proposed Utilisation the EUR equivalent of USD 170,000,000 (calculated at the Agent’s Spot Rate of Exchange acceptable to OeKB and rounded to the next lowest multiple of 1,000,000) is less than EUR 142,000,000, and the amount of any other Commitment transferred to it under this Agreement; and

 

(b)           in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this Agreement.

 

Compliance Certificate means a certificate substantially in the form set out in Schedule 8 (Form of Compliance Certificate).

 

Conditional Security means the Conditional Security as to be defined in the Side Letter.

 

Conditional Security Documents means the Conditional Security Documents as to be defined in the Side Letter.

 

Conditional Security Release has the meaning given to it in Clause 24.6 (Conditional Security Release).

 

Conditional Security Reservations means the Conditional Security Reservations as to be defined in the Side Letter.

 

Confidential Information means all information relating to the Borrower, any other Obligor, the Group, the Finance Documents or the Facility of which a Finance Party becomes aware in its capacity as or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to or for the purpose of becoming a Finance Party under, the Finance Documents or the Facility from either:

 

(a)           any Group Company or any of its advisers; or

 

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

 

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

 

(i)            is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 36 (Confidentiality); or

 

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

 

4

 

(iii)          is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) and (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality.

 

Confidentiality Undertaking means a confidentiality undertaking substantially in a recommended form of the LMA or in any other form agreed between the Borrower and the Agent.

 

Default means an Event of Default or any event or circumstance specified in Clause 22 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.

 

Defaulting Lender means any Lender:

 

(a)           which has failed to make its participation in the Loan available or has notified the Agent that it will not make its participation in the Loan available by the Utilisation Date of the Loan in accordance with Clause 5.4 (Lenders’ participation);

 

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

 

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

 

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

 

(i)            its failure to pay is caused by:

 

(A)          administrative or technical error; or

 

(B)          a Disruption Event; and

 

payment is made within five (5) Business Days of its due date; or

 

(ii)           the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.

 

Disposal means a sale, transfer or other disposal (including by way of lease or loan) by a person of all or part of its assets, whether by one transaction or a series of transactions.

 

Disruption Event means either or both of:

 

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

 

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

 

5

 

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

 

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

 

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.

 

Dutch Guarantor means a Guarantor incorporated and existing under the law of The Netherlands.

 

Dutch Security Documents means each of the Dutch security documents to be listed in Part C of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Economic Sanctions Law means any economic or financial sanctions administered by OFAC, the US

 

State Department, any other agency of the US government, the United Nations, the European Union or any member state of the European Union.

 

English Security Document means the English security document to be listed in Part H of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Environmental Claim means any claim, proceeding or investigation by a person in respect of any Environmental Law.

 

Environmental Law means any applicable law or regulation in any jurisdiction in which any Group Company conducts business which relates to the pollution or protection of the environment or harm to or the protection of human health or the health of animals or plants.

 

Environmental Permits means any permit and other Authorisation required under any Environmental Law for the operation of the business of any Group Company conducted on or from the properties owned or used by any Group Company.

 

EURIBOR means, in relation to any Loan:

 

(a)           the applicable Screen Rate; or

 

(b)           (if no Screen Rate is available for the currency or Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request quoted by the Reference Banks to leading banks in the London interbank market,

 

as of 11.00 am on the Quotation Day for the offering of deposits in the currency of that Loan and for a period comparable to the Interest Period for that Loan, subject to a floor of 0% per annum.

 

Event of Default means any event or circumstance specified as such in Clause 22 (Events of Default).

 

Excluded Subsidiary means any Subsidiary of the Company which is not:

 

(a)           a Sappi Southern Africa Group Company;

 

6

 

(b)           the Borrower;

 

(c)           a Subsidiary of the Borrower; or

 

(d)           Sappi Holding GmbH.

 

Existing Financings means the Existing Facility, the 2009 Bonds, the 2011 Bonds and the 2012 Bonds.

 

Existing Finance Documents means any existing finance documents to be listed in Schedule 3 (Existing Subsidiary External Indebtedness) of the Side Letter.

 

Existing Facility means the Existing Facility to be defined in the Side Letter.

 

Existing Security means any existing security to be listed in Schedule 2 (Existing Security and Guarantees) of the Side Letter.

 

Facility means the EUR term loan facility made available under this Agreement as described in Clause 2.1 (The Facility).

 

Facility Office means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five (5) Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement.

 

FATCA means:

 

(a)           sections 1471 to 1474 of the US Internal Revenue Code of 1986 or any associated regulations;

 

(b)           any intergovernmental agreement relating to sections 1471 to 1474 of the US Internal Revenue Code of 1986 and any related implementing legislation or regulations; or

 

(c)           any agreement relating to paragraph (a) or (b) of this definition with the Internal Revenue Service of the US, the US government or any governmental or taxation authority in any other jurisdiction.

 

FATCA Deduction means a deduction or withholding from (or other payment to a governmental or taxation authority related to) a payment under a Finance Document pursuant to FATCA.

 

Fee Letter means any fee letter or letters entered into by reference to this Agreement between the Agent and the Company or the Borrower setting out the fees payable by the Company or the Borrower in connection with the Facility.

 

Finance Document means this Agreement, the Side Letter, any Fee Letter, any Compliance Certificate, the Utilisation Request, any Accession Letter, any Resignation Letter and the Mandate Letter and any other document designated as a Finance Document by the Agent and the Borrower and following an Intercreditor Agreement Accession, in addition the Intercreditor Agreement and the Conditional Security Documents (as well as any document in connection with the Conditional Security Documents).

 

Finance Party means the Agent, the Mandated Lead Arranger or a Lender.

 

7

 

Financial Indebtedness means (without double counting) any indebtedness for or in respect of:

 

(a)           moneys borrowed;

 

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

 

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

 

(d)           the amount of any liability in respect of any hire purchase agreement, conditional sale agreement or lease which would, in accordance with generally accepted accounting standards in the relevant jurisdiction as at the Signing Date be treated as a finance or capital lease;

 

(e)           for the purpose of Clause 22.5 (Cross default) only, any interest rate or currency swap agreement or any other hedging or derivatives instrument or agreement (and when calculating the value of such movement or agreement only the marked to market value shall be taken into account);

 

(f)            receivables sold or discounted (other than any receivables to the extent they are sold or discounted on a non-recourse basis (or where recourse is limited to customary warranties and indemnities) and meet any requirement for de-recognition under the Applicable Accounting Principles);

 

(g)           any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind entering into the agreement is to raise finance or to finance the acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than one hundred and twenty (120) days after the date of supply;

 

(h)           any amount raised under any other transaction (including any forward sale or purchase, sale and sale back or sale and leaseback agreement) having the commercial effect of a borrowing;

 

(i)            any arrangement entered into primarily as a method of raising finance pursuant to which any asset sold or otherwise disposed of by that person is or may be leased to or re-acquired by a Group Company (whether following the exercise of an option or otherwise); or

 

(j)            any guarantee, indemnity or similar insurance against financial loss given in respect of the obligation of any person falling within any of paragraphs (a) to (i) above,

 

except that indebtedness owing by one Group Company to another Group Company shall not be taken into account as Financial Indebtedness.

 

Financial Year means the annual accounting period of the Group ending on the Sunday closest to 30 September in each calendar year.

 

Finnish Guarantor means a Guarantor incorporated in Finland.

 

8

 

Finnish Security Documents means each of the Finnish security documents to be listed in Part D of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Fitch means Fitch Ratings Ltd.

 

GAAP means:

 

(a)           in relation to the consolidated financial statements of the Group, IFRS;

 

(b)           in relation to the Company and the Borrower, IFRS; and

 

(c)           in relation to each Obligor (other than the Company and the Borrower), generally accepted accounting principles, standards and practices in that Obligor’s jurisdiction of incorporation.

 

German Guarantor means a Guarantor incorporated under the laws of Germany.

 

German Security Documents means each of the German security documents to be listed in Part E of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Group means the Company and its Subsidiaries for the time being and Group Company means any one of the same.

 

Group Rating means any of:

 

(a)           the long term “Corporate Family Rating” assigned by Moody’s to the Group;

 

(b)           the long term “Corporate Credit Rating” assigned by Standard & Poor’s to the Group; or

 

(c)           the long term “Issuer Default Rating” assigned by Fitch to the Group’s long-term senior unsecured non-credit enhanced debt obligations.

 

Group Structure Chart means the group structure chart in the agreed form.

 

Guarantor means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance with Clause 24 (Changes to the Obligors).

 

Guarantor Coverage Group means the Borrower and the Subsidiaries of the Borrower.

 

Guarantor Coverage Test has the meaning given to that term in paragraph (a) of Clause 21.20 (Guarantor Coverage Test).

 

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

 

Hong Kong Guarantor means a Guarantor incorporated in Hong Kong.

 

IFRS means the international accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.

 

9

 

Impaired Agent means the Agent at any time when:

 

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

 

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

 

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

 

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

 

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

 

(i)            its failure to pay is caused by:

 

(A)          administrative or technical error; or

 

(B)          a Disruption Event; and

 

payment is made within five (5) Business Days of its due date; or

 

(ii)           the Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

 

Insolvency Event  in relation to a Finance Party means that the Finance Party:

 

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

 

(b)           becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;

 

(c)           makes a general assignment, arrangement or composition with or for the benefit of its creditors;

 

(d)           institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;

 

(e)           institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it such proceeding or petition is instituted or presented by a person not described in paragraph (d) above and:

 

(i)            results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or

 

10

 

(ii)           is not dismissed, discharged, stayed or restrained in each case within thirty (30) days of the institution or presentation thereof;

 

(f)            has submitted an application for the opening of supervisory proceedings (Geschäftsaufsichtsverfahren) pursuant to section 83 et seqq. Austrian Banking Act or such proceedings are otherwise opened or commenced, or a similar or related measure is taken in relation to or by a competent regulator in any other jurisdiction;

 

(g)           has a resolution passed for its winding-up, official management, placing under business rescue or liquidation (other than pursuant to a consolidation, amalgamation or merger);

 

(h)           seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, business rescue practitioner, trustee (Treuhänder), custodian or other similar official for it or for all or substantially all its assets;

 

(i)            has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within thirty (30) days thereafter; or

 

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

 

Intellectual Property means:

 

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

 

(b)           the benefit of all applications and rights to use such assets of each Group Company (which may now or in the future subsist).

 

Intercreditor Agreement means the Intercreditor Agreement as to be defined in the Side Letter.

 

Intercreditor Agreement Accession means the accession by the Lenders and the Agent to the Intercreditor Agreement as Pari Passu Lenders (as defined in the Intercreditor Agreement) following the occurrence of a Security Trigger Event in accordance with Clause 21.27 (Conditional Security).

 

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

 

IO means the Austrian Insolvency Act (Insolvenzordnung-IO), Austrian law gazette 1914/337, as amended from time to time.

 

Joint Venture means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity or equivalent arrangement.

 

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Lender means:

 

(a)           any Original Lender; and

 

(b)           any bank or financial institution which has become a Party as a Lender in accordance with Clause 23 (Changes to the Lenders),

 

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.

 

Leverage Ratio means the ratio of Net Debt to EBITDA.

 

LMA means the Loan Market Association.

 

Loan means the loan made or to be made under the Facility or the principal amount outstanding for the time being of such loan.

 

Loan Rating means the credit rating assigned to the Facility by any of Moody’s, Standard & Poor’s or Fitch.

 

Majority Lenders means:

 

(a)           until the Total Commitments have been reduced to zero, a Lender or Lenders whose Commitments aggregate more than 662/3 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, the outstanding part of the Loan, aggregated more than 662/3 per cent. of the Total Commitments immediately prior to that reduction); or

 

(b)           at any other time, a Lender or Lenders whose participations in the Facility then outstanding aggregate more than 662/3 per cent. of the Facility then outstanding.

 

Mandate Letter means the letter dated 27 April 2012 addressed by the Mandated Lead Arranger to the Borrower.

 

Mandatory Cost means the percentage rate per annum calculated by the Agent in accordance with Schedule 4 (Mandatory Cost Formulae).

 

Margin  means 2.75 per cent. per annum subject to the Margin Adjusted Rate.

 

Margin Adjusted Rate means in relation to a particular Interest Period, the rate per annum determined by reference to the credit ratings assigned as follows:

 

(a)           if the Rating last published (and not withdrawn) before the Quotation Day for that Interest Period of two of Moody’s, Fitch and Standard & Poor’s (pursuant to Clause 21.21 (Ratings)) is as per those set out in Column A of the table below, then the corresponding Margin in Column B in the table below shall apply:

 

	
(A)
    	
 
    	
 
    	
 
    
	
Standard & Poor’s/Fitch/Moody’s
   Rating
    	
 
    	
(B)
   Margin (% p.a.)
    	
 
    
	
BB+/Ba1 or higher
    	
 
    	
2.00
    	
 
    
	
BB/Ba2
    	
 
    	
2.50
    	
 
    

 

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BB-/Ba3
    	
 
    	
2.75
    	
 
    
	
B+/B1
    	
 
    	
3.25
    	
 
    
	
B/B2 or lower
    	
 
    	
4.75
    	
 
    

 

(b)           in the event that there is a difference in the Rating assigned (i) pursuant to Clause 21.21(a)(i) (Ratings), by Standard and Poor’s and Moody’s or (ii) pursuant to Clause 21.21(a)(ii) (Ratings), by Standard and Poor’s or Moody’s and Fitch, the applicable Margin shall be determined by reference to the mean of the rate per annum assigned to each of the two Ratings;

 

(c)           in the event that only one Group Rating and/or Loan Rating has been assigned by Moody’s, Standard and Poor’s or Fitch, then the corresponding Margin in Column B in the table above shall apply based on, to the extent a Group Rating has been assigned, the Group Rating or, to the extent a Group Rating has not been assigned, the Loan Rating; and

 

(d)           in the event that none of Moody’s, Standard and Poor’s or Fitch have assigned either a Group Rating or Loan Rating, then the parties shall enter into negotiations in good faith for a period of no more than thirty (30) days from the date neither a Group Rating or Loan Rating is assigned with a view to agreeing the applicable Margin. Until such time as (A) the parties agree an applicable Margin or (B) at least one of Moody’s, Standard and Poor’s or Fitch assigns a Group or Loan Rating, a Margin corresponding with a Rating of B+/B1 or lower in the table above shall apply.

 

Margin Stock means “margin stock” within the meaning of Regulation U of the Board.

 

Material Adverse Effect means a material adverse effect on:

 

(a)           the business, operations, assets or financial condition of the Group taken as a whole;

 

(b)           the ability of the Obligors (taken together) to perform their payment obligations under the Finance Documents or the ability of the Company to comply with the financial covenants set out in Clause 20 (Financial Covenants); or

 

(c)           the validity or enforceability of, or the ranking of, any Security granted or purported to be granted pursuant to any of the Finance Documents.

 

Material Subsidiary means, at any time:

 

(a)           the Borrower; and

 

(b)           any Subsidiary of the Borrower (excluding PE Paper Escrow GmbH) which has:

 

(i)            earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, as defined in Clause 20 (Financial Covenants)) representing 5 per cent. or more of the consolidated EBITDA (as defined in Clause 20 (Financial Covenants)) of the Guarantor Coverage Group; or

 

(ii)           gross assets representing 5 per cent. or more of the consolidated gross assets of the Guarantor Coverage Group,

 

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in each case as set out, until the first Compliance Certificate is delivered, in the list provided to the Agent pursuant to paragraph 4(d) of Part A of Schedule 2 (Conditions precedent) and thereafter as calculated by reference to the latest annual consolidated financial statements of the Group delivered by the Borrower to the Agent pursuant to Clause 19.1 (Financial statements) and as updated from time to time in each Compliance Certificate.

 

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

 

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

 

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

 

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

 

The above rules will only apply to a period of one (1) Month or the last Month of any period.

 

Moody’s means Moody’s Investors Service Inc.

 

Negotiation Period means the period which is the earliest to expire of:

 

(a)           one (1) Month from the date on which the Borrower is notified by the Agent that any Lender who participates in the Loan is obliged to prepay the OeKB Funding;

 

(b)           one (1) Month from the date on which the Borrower becomes aware that any Promissory Note issued in connection with the OeKB Funding or the OeKB Guarantee in connection with the OeKB Funding will prematurely cease to be in full force and effect; and

 

(c)           the period from the relevant date until the date falling one Business Day prior to the date on which the relevant Lenders are obliged to prepay the OeKB Funding.

 

Net Debt has the meaning given to that term in Clause 20.2 (Financial definitions).

 

Non-Obligor Chargor means any Group Company which is not an Obligor but which has created or will create Conditional Security which has not been released in accordance with Clause 24.6 (Conditional Security Release).

 

Obligor means the Borrower or a Guarantor.

 

Obligors’ Agent means SISA.

 

OeKB means the Oesterreichische Kontrollbank AG, a stock corporation incorporated under the laws of Austria with its registered Office at Am Hof 4, 1010 Vienna, Austria and the register number FN 85749b.

 

14

 

OeKB Financing Rate means the surcharge on 3 three months OeKB EUR Rate, as determined by the OeKB from time to time and which OeKB applies under the export financing scheme (Exportfinanzierungsverfahren).

 

OeKB Funding means the method by which the Lenders, following the issue of Promissory Notes, will fund their respective participations in the Facility Loan (subject to Clause 7.3 (OeKB Funding)).

 

OeKB Guarantee means the risk assumption (Haftungsübernahme) of OeKB, for a maximum of 20% of the Total Commitments.

 

OeKB EUR Rate means the floating interest rate per annum under the export financing scheme (Exportfinanzierungsverfahren) of OeKB, as determined by OeKB from time to time for the relevant period.

 

OFAC means the Office of Foreign Assets Control of the US Department of the Treasury.

 

Original Financial Statements means (i) the audited consolidated financial statements of each Obligor other than Sappi Maastricht BV, Sappi Nijmegen BV, Sappi Deutschland Holding GmbH, Sappi Netherlands BV, S.D. Warren Company and Sappi Cloquet LLC for their respective Financial Years ended in September 2011; (ii) the unaudited unconsolidated management accounts of Sappi Maastricht BV, Sappi Nijmegen BV, Sappi Deutschland Holding GmbH and Sappi Netherlands BV and the unaudited consolidated management accounts of S.D. Warren Company for their respective Financial Years ended in September 2011 as applicable; and (iii) the unaudited consolidated interim report of each of the Company and the Borrower for the period of three months ending 1 April 2012 in the case of the Company and 1 April 2012 in the case of the Borrower.

 

Original Obligor means the Borrower or an Original Guarantor.

 

Outstandings means the amount of the Loan, from time to time.

 

Paper Business means, any one or more of the following businesses:

 

(a)           the production, manufacture, distribution, supply, sale, purchase and trading in respect of paper (including but not limited to fine paper, coated and uncoated wood-free paper, packaging paper, publication paper and newsprint);

 

(b)           pulp (including all chemical or other manufacturing processes relating to pulp);

 

(c)           wood products (including all initial processes, manufacturing or otherwise relating to paper, pulp and paper pulp) and the growing of timber supplies; and

 

(d)           chemical cellulose.

 

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 Union relating to European Monetary Union.

 

Party means a party to this Agreement and includes its successors in title, permitted assigns and permitted transferees.

 

Permitted Lereko Disposal means a Disposal of any of real estate in South Africa to the Lereko Property Company (Proprietary) Limited or one of its Affiliates in accordance with

 

15

 

the terms of an amended and restated joint ownership agreement between, amongst others, the Company and the Lereko Property Company (Proprietary) Limited existing on the date of this Agreement and provided that the aggregate value of all such Disposals does not exceed EUR 35,000,000 (or its equivalent in another currency or currencies).

 

Permitted SMF Plantation Disposal means a Disposal of any of the plantations owned by Sappi Southern Africa or any of its Subsidiaries or Usutu Pulp Co Ltd, provided that:

 

(a)           the disposal is on arm’s length terms and for fair market value;

 

(b)           the Disposal Proceeds in respect of such Disposal are applied in prepayment of Financial Indebtedness in accordance with Clause 7.5 (Disposal Proceeds ); and

 

(c)           no Event of Default is continuing at the date of the Disposal.

 

Promissory Notes means the promissory notes issued by OeKB in the form prescribed by OeKB in an amount equal to the aggregate of the Total Commitments, avalised (versehen mit einer Wechselbürgschaft) by the Republic of Austria (the Promissory Notes for avoidance of doubt do not constitute Security under this Agreement).

 

Qualifying Lender has the meaning given to it in Clause 12 (Tax Gross-Up and indemnities).

 

Qualifying Subsidiary means any Group Company (other than a Sappi Southern Africa Group Company and PE Paper Escrow GmbH) which has:

 

(a)           earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, as defined in Clause 20 (Financial Covenants)) representing 7.5 per cent. or more of the consolidated EBITDA (as defined in Clause 20 (Financial Covenants)) of the Group; or

 

(b)           gross assets representing 7.5 per cent. or more of the consolidated gross assets of the Group,

 

as calculated by reference to the latest annual consolidated financial statements of the Group delivered by the Company to the Agent pursuant to Clause 19.1 (Financial statements) and as updated from time to time in each Compliance Certificate.

 

Quarter means each period of approximately three months ending on a Quarter Date.

 

Quarter Date means the Company’s quarterly accounting date on or around the end of any March, June, September or December.

 

Quotation Day means in relation to any period for which an interest rate is to be determined two Business Days before the first day of that period, unless market practice differs in the Relevant Interbank Market, in which case the Quotation Day will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

 

Rating means the credit ratings assigned as follows:

 

(a)           while at least two of Moody’s, Standard & Poor’s and Fitch assign a Loan Rating, the Loan Rating assigned to it pursuant to Clause 21.21 (Ratings); or

 

16

 

(b)           while at least two of Moody’s, Standard & Poor’s and Fitch do not assign a Loan Rating, the Group Rating assigned to it pursuant to Clause 21.21 (Ratings).

 

Receiver means under the applicable insolvency law a receiver or preliminary receiver or receiver and manager or administrative receiver of the whole or any part of the Charged Property.

 

Reference Banks means the principal office of UniCredit Bank Austria AG, Erste Group Bank AG, Raiffeisen Bank International AG and Citibank, N.A. London branch or such other banks as may be appointed by the Agent in consultation with the Borrower.

 

Release Conditions means each of the following conditions:

 

(a)           the Group Rating assigned by Standard and Poor’s or, to the extent Standard and Poor’s is replaced by Fitch pursuant to Clause 21.21 (Ratings), assigned by Fitch is and has been BB+ or better for at least onehundredeighty (180) continuous days prior to the date of the confirmation provided by the Company under Clause 25.8 (Conditional Security Release) provided that the relevant Group Rating must be assigned a stable outlook;

 

(b)           the Group Rating assigned by Moody’s is and has been Ba1 or better or, to the extent Moody’s is replaced by Fitch pursuant to Clause 21.21 (Ratings), assigned by Fitch is and has been BB+ or better for at least onehundredeighty (180) continuous days prior to the date of the confirmation provided by the Company under Clause 25.8 (Conditional Security Release) provided that the relevant Group Rating must be assigned a stable outlook;

 

(c)           the Borrower has provided evidence satisfactory to the Agent (acting on the instructions of all the Lenders) that:

 

(i)            all Secured Obligations (other than in respect of those that arise under the Facility) have been repaid and cancelled in full and all such Senior Secured Parties in respect of such Secured Obligations have irrevocably authorised the Security Agent in writing to release the Conditional Security; or

 

(ii)           all Senior Secured Parties in respect of the Secured Obligations (other than in respect of those that arise under the Facility) have irrevocably authorised the Security Agent in writing to release the Conditional Security and all unsecured and unsubordinated claims of such Senior Secured Parties against the Obligors under the relevant Senior Finance Documents immediately following the Conditional Security Release will rank pari passu with the claims of the Finance Parties under the Facility;

 

(d)           no Default or Event of Default (i) has occurred or is continuing or (ii) will or is reasonably likely to result from the Conditional Security Release; and

 

(e)           the Leverage Ratio for the last two most recent Relevant Periods was equal to or less than 2.00:1 as certified by the two most recently delivered Compliance Certificates.

 

Relevant Interbank Market means the Vienna interbank market.

 

Relevant Period has the meaning ascribed to that term in Clause 20.2 (Financial definitions).

 

Repayment Date means each date set out in paragraph (a) of Clause 6.1 (Repayment of Loan)

 

17

 

Repeating Representations means each of the representations set out in Clauses 18.1 (Status) to 18.6 (Governing law and enforcement) inclusive, Clause 18.9 (No Default), paragraph (e) of Clause 18.10 (No misleading information), Clause 18.13 (Business Authorisations), Clause 18.14 (Pari passu ranking), Clause 18.22 (Centre of main interests and establishments), Clause 18.27 (Representations relating to Guarantee by Austrian Guarantors), Clause 18.33 (Economic Sanctions), Clause 18.29 (Good title to assets) and Clause 18.33 (No immunity in any legal process).

 

Representative means any delegate, agent, manager, administrator, nominee, attorney, trustee (Treuhänder) or custodian.

 

Reservations means the principle that remedies may be granted or refused at the discretion of the court, the limitation of enforcement by laws relating to bankruptcy, insolvency, liquidation, reorganisation, court schemes, moratoria, administration, fraudulent transfers and other laws generally affecting the rights of creditors, public policy, general principles of equity, the time barring of claims under applicable limitations acts, defences of set-off or counterclaim and similar principles, rights and defences under the laws of any jurisdiction in which relevant obligations may have to be performed, and any qualifications relating to matters of law contained in or referred to in the legal opinions to be delivered to the Agent pursuant to paragraph 3 of Part A of Schedule 2 (Conditions Precedent to Initial Utilisation) or paragraph 15 of Part B of Schedule 2 (Conditions Precedent required to be delivered by an Additional Guarantor).

 

Resignation Letter means a letter substantially in the form set out in Schedule 7 (Form of Resignation Letter).

 

Sanctioned Person means any person, organization or vessel (i) designated on the OFAC list of Specially Designated Nationals and Blocked Persons, or on any list of targeted persons issued under the Economic Sanctions Law of any other country, (ii) that is, or is part of, a government of a Sanctioned Territory, (iii) owned or controlled by, or acting on behalf of, any of the foregoing, (iv) located within or operating from a Sanctioned Territory, or (v) otherwise targeted under any Economic Sanctions Law.

 

Sanctioned Territory means any country or other territory subject to a general export, import, financial or investment embargo under Economic Sanctions Law, which countries, as of 1 March 2012, include Burma (Myanmar), Cuba, Iran, Sudan and Syria.

 

Sappi Southern Africa means Sappi Southern Africa (Proprietary) Ltd.

 

Sappi Southern Africa Group means Sappi Southern Africa and its Subsidiaries for the time being and Sappi Southern Africa Group Company means any one of the same.

 

Sappi Southern Africa Group Indebtedness means Financial Indebtedness incurred by the Sappi Southern Africa Group Companies excluding any receivables securitisation programme in place with a Sappi Southern Africa Group Company prior to the Signing Date which does not appear on the balance sheet (prepared in accordance with GAAP) of such Sappi Southern Africa Group Company provided that such securitisation programme (or any renewal or rollover of that programme) shall be included in this definition to the extent such Financial Indebtedness shall appear on the balance sheet of such Sappi Southern Africa Group Company at any time after the Signing Date other than solely as a result of a change in GAAP or accounting treatment.

 

SARB Approvals means the SARB Approval as to be defined in the Side Letter.

 

18

 

Screen Rate means the British Bankers Association Interest Settlement Rate for the relevant period, displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the Lenders.

 

Secured Obligations has the meaning given to that term in the Intercreditor Agreement.

 

Security means a mortgage, charge, pledge, security assignment, security transfer, lien, or any other security interest securing any obligation of any person or any other agreement or arrangement having the effect of giving security or preferential ranking to a creditor.

 

Security Agent means the security agent as referred to in the Intercreditor Agreement and the Conditional Security Agreements.

 

Security  Trigger Event means each of the following:

 

(a)           the Group Rating assigned by Standard & Poor’s or Moody’s (or Fitch, if either Standard & Poor’s or Moody’s is replaced by Fitch in accordance with Clause 21.21 (Ratings)) is B+/B1 or lower (a Rating Downgrade Event); or

 

(b)           neither Moody’s nor Standard and Poor’s have assigned a Group Rating or such Group Rating ceases to be available (a No Rating Event); or

 

(c)           an Event of Default (for the avoidance of doubt, including but not limited to an Event of Default pursuant to Clause 22.3 (Other obligations) in connection with Clause 21.7 (Negative pledge)) has occurred and is continuing (an Event of Default Event).

 

Senior Creditor has the meaning given to that term in the Intercreditor Agreement.

 

Senior Finance Document has the meaning given to “Finance Document” in the Intercreditor Agreement.

 

Senior Secured Parties has the meaning given to “Secured Parties” in the Intercreditor Agreement.

 

Side Letter means a side letter to this Agreement to be agreed and concluded between the Parties after the Signing Date and as amended from time to time.

 

Signing Date means the date of this Agreement.

 

SISA means Sappi International SA, a company incorporated and existing under the laws of Belgium.

 

South African Security Documents means each of the South African security documents to be listed in Part F of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

Specified Time means 10.00 am three (3) Business Days before the proposed date of utilisation.

 

Stamp Duty Guidelines means the stamp duty guidelines set out in Schedule 9 (Stamp Duty Guidelines).

 

19

 

Stamp Duty Sensitive Document means (i) any original of the Side Letter and any Stamp Duty Sensitive Document as defined in the Side Letter, and any other document designated as Stamp Duty Sensitive Document by the Agent and the Borrower (ii) any signed document (including email, PDF, TIF and other comparable formats) that constitutes a deed (Urkunde) within the meaning of § 15 of the Austrian Stamp Duty Act (as interpreted by the Austrian tax authorities), whether documenting or confirming the entering into of the relevant transaction (rechtserzeugende Urkunde) or documenting that the relevant transaction has been entered into (rechtsbezeugende Urkunde), or a substitute deed (Ersatzurkunde) within the meaning of § 15 of the Austrian Stamp Duty Act (as interpreted by the Austrian tax authorities), including, without limitation, any notarised copy, any certified copy and any written minutes recording the transactions (Rechtsgeschäfte) contemplated by, or referenced in, the Side Letter and any Stamp Duty Sensitive Document as defined in the Side Letter, and any other document designated as Stamp Duty Sensitive Document by the Agent and the Borrower.

 

Standard & Poor’s means Standard & Poor’s Rating Service.

 

State means a State in the US.

 

Subsidiary means in relation to any company or corporation, a company or corporation:

 

(a)           which is controlled, directly or indirectly, by the first mentioned company or corporation;

 

(b)           more than half the issued share capital of which is beneficially owned, directly or indirectly, by the first mentioned company or corporation; or

 

(c)           which is a Subsidiary of another Subsidiary of the first mentioned company or corporation,

 

and for this purpose, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to direct its affairs and/or to control the composition of its board of directors or equivalent body.

 

Super-Majority Lenders means:

 

(a)           until the Total Commitments have been reduced to zero, a Lender or Lenders whose Commitments aggregate more than 90 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, the outstanding part of the Loan, aggregated more than 90 per cent. of the Total Commitments immediately prior to that reduction); or

 

(b)           at any other time, a Lender or Lenders whose participations in the Facility then outstanding aggregate more than 90 per cent. of the Facility then outstanding.

 

TARGET2 means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single shared platform and which was launched on 19 November 2007.

 

TARGET Day means any day on which TARGET2 is open for the settlement of payments in euro.

 

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

 

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Tax Deduction has the meaning given to it in Clause 12 (Tax Gross-Up and Indemnities).

 

Termination Date means the 30 June 2017.

 

Third Party Disposal has the meaning given to that term in Clause 24.4 (Resignation of a Guarantor).

 

Total Commitments means the aggregate of the Commitments, being the lower of (i) the EUR equivalent of USD 170,000,000 on the day of the proposed Utilisation (calculated at the Agent’s Spot Rate of Exchange acceptable to OeKB and rounded to the next lowest multiple of 1,000,000) and (ii) EUR 142,000,000.

 

Transfer Certificate means a certificate substantially in the form set out in Part A of Schedule 5 (Form of Transfer Certificate) or any other form agreed between the Agent and the Company.

 

Transfer Date means, in relation to a transfer, the later of:

 

(a)           the proposed Transfer Date specified in the Transfer Certificate or the Austrian Transfer Certificate, as the case may be; and

 

(b)           the date on which the Agent executes the Transfer Certificate or receives the Austrian Transfer Certificate and the Assignment and Transfer Fee, as the case may be.

 

Treasury Transaction means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price.

 

Treaty Lender has the meaning given to that term in Clause 12 (Tax Gross Up and Indemnities).

 

Unpaid Sum means any sum due and payable but unpaid by an Obligor under the Finance Documents.

 

URG means the Austrian Business Reorganisation Act (Unternehmensreorganisationsgesetz), Austrian law gazette 1997/114, as amended from time to time.

 

US and United States means the United States of America, its territories, possessions and other areas subject to the jurisdiction of the United States of America.

 

US Group means SDW Holding Corporation and its Subsidiaries from time to time and US Group Company means any of them.

 

US Guarantor means a Guarantor incorporated, formed or organized under the laws of any State, the District of Columbia or the US.

 

US Intercompany Loan means the term loan agreement made as of 10 July 2012 between S.D. Warren Company, a Pennsylvania corporation doing business as Sappi Fine Paper North America, having its principal place of business at 255 State Street, Boston, Massachusetts, 02109 U.S.A., as borrower and the Borrower in the amount of USD 170,000,000.

 

US Security Documents means each of the US security documents to be listed in Part G of Schedule 5 (Conditional Security Documents) of the Side Letter, in each case securing the Secured Obligations.

 

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Utilisation means the utilisation of the Facility.

 

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

 

Utilisation  Request means a notice substantially in the form set out in Schedule 3 (Utilisation  Request).

 

VAT means value added tax as provided for in the Austrian Value Added Tax Act 1994 (Umsatzsteuergesetz 1994), the German Value Added Tax Act (Umsatzsteuergesetz), the Belgian VAT Code of 3 July 1969 (as amended and supplemented from time to time), the Netherlands Value Added Tax Act 1968 (Wet op de Omzetbelasting 1968) or any other value added tax as provided for in European Council Directive 2006/112/EC (or as implemented by a member state of the European Union) and any other tax of a similar nature.

 

1.2          Construction

 

(a)           Any reference in this Agreement to:

 

(i)            the Agent, the Mandated Lead  Arranger, any Finance Party, any Lender, any Obligor, the Security Agent, any Party, or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

 

(ii)           a document in agreed form is a document which is agreed in writing by or on behalf of the Company and the Agent;

 

(iii)          assets includes present and future properties, revenues and rights of every description;

 

(iv)          the equivalent in any currency (the first currency) of any amount in another currency (the second currency) shall be construed as a reference to the amount in the first currency which could be purchased with that amount in the second currency at the Agent’s Spot Rate of Exchange for the purchase of the first currency with the second currency in the Vienna foreign exchange market at or about 11:00 a.m. on a particular day (or at or about such time and on such date as the Agent may from time to time reasonably determine to be appropriate in the circumstances);

 

(v)           the European interbank market means the interbank market for Euro operating in Participating Member States;

 

(vi)          a Finance Document or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended, restated (however fundamentally and whether or not more onerously) or replaced and includes any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under that Finance Document or other agreement or instrument;

 

(vii)         guarantee means (other than in Clause 17 (Guarantee and Indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to

 

22

 

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

 

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

 

(ix)          a Lender’s participation, in relation to the Loan, means the amount of such Loan that is owed to such Lender or, as the case may be, the amount of such Loan that such Lender is obliged to make available;

 

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

 

(xi)          a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but if not having the force of law, being a regulation or the like with which the persons to whom it is addressed customarily comply in the ordinary course of their business) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

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

 

(xiii)        unless a contrary indication appears, a time of day is a reference to Vienna time;

 

(xiv)        for the purposes of Clause 12.5 (Stamp Taxes) and Schedule 9 (Stamp Duty Guidelines), written shall mean that what is “written” was translated into letters (Buchstaben) that are or can be made visible on a physical or electronic device of whatever type and format, including paper and screen, and, accordingly, communication, documents or notices being in writing shall include not only paper-form (letter or fax) communication, documents or notices but also electronic communication, documents or notices, including by way of e-mail; and

 

(xv)         for the purposes of Clause 12.5 (Stamp Taxes) and Schedule 9 (Stamp Duty Guidelines), signed communication, documents or notices refers to written communication, documents or notices that carry a manuscript, digital or electronic or other technically reproduced signature, and signature shall be construed accordingly.

 

(b)           where there is reference in this Agreement to any amount, limit or threshold specified in Euro or Dollars, in ascertaining whether or not that amount, limit or threshold has been attained, broken or achieved, as the case may be, a non-Euro or non-Dollar amount shall be counted on the basis of the equivalent in Euro or Dollars, as the case may be, of that amount.

 

(c)           Section, Clause and Schedule headings are for ease of reference only.

 

23

 

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

 

(e)           A Default is continuing if it has not been remedied or waived and an Event of Default is continuing if it has not been remedied or waived unless it is one of the Events of Default listed below, in which case it is continuing if it has not been waived (whether or not it is subsequently remedied). The Events of Default referred to above means any circumstance constituting an Event of Default under:

 

(i)            Clause 22.1 (Non-payment);

 

(ii)           Clause 22.2 (Financial covenants and other obligations);

 

(iii)          Clause 22.3 (Other obligations) arising as a result of a breach of Clause 21.7 (Negative pledge), Clause 21.8 (Disposals), 21.17 (Acquisitions and Joint Ventures) or Clause 21.23 (Dividend restriction);

 

(iv)          Clause 22.6 (Insolvency);

 

(v)           Clause 22.7 (Insolvency Proceedings);

 

(vi)          Clause 22.8 (Creditors’ process);

 

(vii)         Clause 22.9 (Obligor ceasing to be a subsidiary of the Company);

 

(viii)        Clause 22.10 (Unlawfulness);

 

(ix)          Clause 22.11 (Repudiation);

 

(x)           Clause 22.14 (Cessation of business); or

 

(xi)          Clause 22.15 (Audit qualification).

 

1.3          Currency symbols and definitions

 

(a)           EUR and Euro means the single currency unit of the Participating Member States.

 

(b)           Dollars, USD and US$ means the lawful currency of the United States of America.

 

1.4          Dutch Terms

 

In this Agreement, where it relates to a Dutch Guarantor, a reference to:

 

(a)           a necessary action to authorise, where applicable, includes without limitation:

 

(i)            any action required to comply with the Dutch Works Council Act (Wet op de  ondernemingsraden); and

 

(ii)           obtaining unconditional positive advice (advies) from each competent works council;

 

(b)           a winding-up, administration or dissolution includes a Dutch Guarantor being:

 

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(i)            declared bankrupt (failliet verklaard);

 

(ii)           dissolved (ontbonden);

 

(c)           a moratorium includes surseance van betaling and voorlopige surseance van betaling and granted a moratorium includes surseance van betaling verleend and voorlopige surceance van  betaling  verleend;

 

(d)           a liquidator includes a curator and a bewindvoerder; and

 

(e)           an attachment includes a beslag.

 

1.5          Belgian Terms

 

In this Agreement, where it relates to a Belgian entity, a reference to:

 

(a)           gross negligence  means zware fout/faute grave;

 

(b)           wilful misconduct means opzet/intention;

 

(c)           a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrator receiver, administrator or similar officer includes a curator/curateur, verefferaar/liquidateur, voorlopig bewindvoerder/adminstrateur provisoire, commissaris inzake opschorting/commissaire au sursis, mandataris ad hoc / mandataire ad hoc and sekwester/séquestre;

 

(d)           a security includes a mortgage (hypotheek/hypothèque), a pledge (pand/nantissement), a privilege (voorrecht/privilège), a retention of title (eigendomsvoorbehoud/réserve de propriété), a real surety (zakelijke zekerheid/sûreté réelle), a transfer by way of security (overdracht ten titel van zekerheid/transfert à titre de garantie) and a promise or mandate to create any of the security interest mentioned above;

 

(e)           a moratorium, composition, assignment or similar arrangement with any creditor means gerechtelijke reorganisatie/réorganisation judiciaire and minnelijk akkoord met alle schuldeisers/accord amiable avec tous les créanciers;

 

(f)            an insolvency includes gerechtelijke reorganisatie/réorganisation judiciaire, faillissement/faillite and any other concurrence between creditors (samenloop van schuldeisers/concours des créanciers);

 

(g)           a winding up, liquidation, administration or dissolution means vereffening/liquidation (vrijwillig of niet vrijwillig / volontaire ou involontaire), ontbinding/dissolution, faillissement/faillite and sluiting van een onderneming/fermeture d’enterprise;

 

(h)           an attachment, sequestration, distress, execution or analogous events means uitvoerend beslag/saisie exécutoire and bewarend beslag/saisie conservatoire;

 

(i)            guarantee  means, only for the purpose of the guarantee granted by a Guarantor incorporated in Belgium pursuant to Clause 17 (Guarantee and indemnity), an independent guarantee and not a surety (borg/cautionnement); and

 

(j)            an Obligor being incorporated in Belgium or of which its jurisdiction of incorporation is Belgium, means that such Obligor has its habitual residence (within the meaning of the Belgian Law of 16 July 2004 on the conflicts of law code) in Belgium.

 

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1.6          Intercreditor Agreement

 

As of the date of the Intercreditor Agreement Accession, this Agreement is subject to the Intercreditor Agreement and in the event of any inconsistency between this Agreement and the Intercreditor Agreement, the Intercreditor Agreement shall prevail. The Finance Parties confirm that they are aware of the provisions of the Intercreditor Agreement and that they have received a copy thereof.

 

2.             THE FACILITY

 

2.1          The Facility

 

Subject to the terms of this Agreement, the Lenders make available to the Borrower a EUR term loan facility in an aggregate amount of EUR 142,000,000.

 

2.2          Finance Parties’ rights and obligations

 

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

 

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

 

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

 

2.3          Obligors’ Agent

 

(a)           Each Obligor (other than SISA) by its execution of this Agreement or an Accession Letter irrevocably appoints SISA to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:

 

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

 

(ii)           each Finance Party to receive from and to give any notice, demand or other communication from or to that Obligor pursuant to the Finance Documents to SISA,

 

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

 

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

 

(c)           With respect to this Clause 2.3, each other Obligor hereby relieves the Obligor’s Agent from the restrictions pursuant to section 181 German Civil Code (Bürgerliches Gesetzbuch) and similar restrictions applicable to it pursuant to any other applicable law, in each case to the extent legally possible to such Obligor. An Obligor which is barred by its constitutional documents or by-laws from granting such exemption shall notify the Obligor’s Agent accordingly.

 

2.4          Acts of SISA

 

(a)           The respective liabilities of each of the Obligors under the Finance Documents shall not be in any way affected by:

 

(i)            any actual or purported irregularity in any act done, or failure to act, by SISA;

 

(ii)           SISA acting (or purporting to act) in any respect outside any authority conferred upon it by any Obligor; or

 

(iii)          any actual or purported failure by, or inability of, SISA to inform any Obligor of receipt by it of any notification under the Finance Documents.

 

(b)           In the event of any conflict between any notices or other communications of SISA and those of any other Obligor, those of SISA shall prevail.

 

3.                                      PURPOSE

 

3.1                               Purpose

 

The Borrower shall apply all amounts borrowed by it under the Facility towards the refinancing of the US Intercompany Loan that has been advanced to S.D. Warren Company for certain capital expenditure and working capital requirements of S.D. Warren Company for the conversion of its Cloquet pulp production to chemical cellulose.

 

3.2          Monitoring

 

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

 

4.                                      CONDITIONS OF UTILISATION

 

4.1                               Initial conditions precedent

 

The Borrower may not deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in Part A of Schedule 2 (Conditions Precedent to Initial

 

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Utilisation) in form and substance satisfactory to the Agent.  The Agent shall notify the Company and the Lenders promptly upon being so satisfied.

 

4.2          Further conditions precedent

 

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

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

 

(b)           the Repeating Representations to be made by each Obligor are true and correct in all material respects.

 

4.3          Maximum number of Loans

 

The Borrower may only deliver one Utilisation Request for the Loan.

 

5.             UTILISATION

 

5.1          Delivery of the Utilisation Request

 

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

 

5.2          Completion of the Utilisation Request

 

(a)           The Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

 

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

 

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

 

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

 

(b)           Only one Loan may be requested in the Utilisation Request.

 

5.3          Currency and amount

 

(a)           The currency specified in a Utilisation Request must be in EUR.

 

(b)           The amount of the proposed Loan must be an amount which is not more than the Available Facility and the Total Commitments and which is a minimum of EUR 100,000,000.

 

(c)           If on the date of the proposed Utilisation the amount of the proposed Loan as requested in the Utilisation Request would exceed the Total Commitments it shall be regarded to have been proposed in the amount of the Total Commitments.

 

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5.4          Lenders’ participation

 

(a)           If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Loan available to the Agent for the account of the Borrower through its Facility Office.

 

(b)           The amount of each Lender’s participation in the Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to the making of the Loan.

 

(c)           The Agent shall notify each Lender of the amount of the Loan and the amount of its participation in the Loan by the Specified Time.

 

5.5          Cancellation of Commitment

 

The Commitments which, at the time, are unutilised shall be immediately cancelled at the end of the Availability Period or on the date of the first Utilisation, whichever occurs earlier.

 

6.                                      REPAYMENT

 

6.1                               Repayment of Loan

 

(a)                                 The Borrower shall repay the Loan in annual instalments by repaying on each Repayment Date an amount which reduces the outstanding aggregate Loan by a percentage as set out in the table below:

 

	
Date
    	
 
    	
Repayment Instalment
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
30 September 2014
    	
 
    	
13% of the Total Commitments
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
30 September 2015
    	
 
    	
13% of the Total   Commitments
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
30 September 2016
    	
 
    	
14% of the Total   Commitments
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
30 June 2017
    	
 
    	
60% of the Total   Commitments
    	
 
    

 

(b)                                 The Loan shall be repaid in full (together with all amounts owing and due to the Finance Parties, whether for accrued or unpaid interest, fees or other amounts) on the Termination Date.

 

6.2                               Reborrowing

 

The Borrower shall not reborrow any part of the Facility which is repaid.

 

7.                                      PREPAYMENT AND CANCELLATION

 

7.1                               Illegality

 

If, at any time after the date of this Agreement, it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund its participation in the Loan:

 

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

 

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(b)           upon the Agent notifying the Borrower, the Commitment of that Lender will be immediately cancelled; and

 

(c)           the Borrower shall repay that Lender’s participation in the Loan on the last day of the Interest Period for each Loan occurring after the Agent has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law).

 

7.2          South Africa

 

If at any time there is any amendment, repeal, revocation, termination or expiration hereinafter of any SARB Approval which in the case of an amendment only, is or could reasonably be expected to be materially prejudicial to the interests of the Finance Parties:

 

(a)           the Borrower shall promptly notify the Agent upon becoming aware of such event;

 

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

 

(c)           unless notified by the Borrower within five (5) days of any amendment, repeal, revocation, termination or expiration that such amendment, repeal, revocation, termination or expiration has been remedied, if the Majority Lenders so require, the Agent shall cancel the Commitments and the outstanding part of the Loan, together with accrued interest and all other amounts accrued under the Finance Documents shall become immediately due and payable.

 

7.3          OeKB Funding

 

If the Borrower (or the Company) is notified by the Agent that a Lender is obliged to prepay the OeKB Funding or the Borrower becomes aware that any Promissory Note issued in connection with the OeKB Funding or the OeKB Guarantee issued in connection with the OeKB Funding and/or the aval (Wechselbürgschaft) provided by the Republic of Austria in connection with any Promissory Note will prematurely cease to be in full force and effect, then the Borrower and the relevant Lender shall negotiate in good faith for a period of not less than the Negotiation Period with a view to agreeing an alternative interest rate based on EURIBOR to apply to the Loan. If no such agreement is reached with the relevant Lender during the Negotiation Period, the Borrower (or the Company) must as soon as practicable upon the expiry of the Negotiation Period and in any event no later than 1 (one) Business Day prior to the date on which such Lender is obliged to prepay the OeKB Funding, prepay that Lender’s participation in the Loan. For the avoidance of doubt, any such payment shall not be subject to Clause 27 (Sharing among the Lenders).

 

7.4          Exit

 

(a)           For the purposes of this Clause 7.4:

 

(i)            associated person means, in relation to any person, a person who is acting in concert (as defined in The City Code on Takeover and Mergers) with that person or is a person connected (as interpreted in accordance with section 839 of the Income and Corporation Taxes Act 1988) with that person; and

 

(ii)           a Change of Control shall occur if on any date a person (whether alone or together with any associated person or persons acting in concert) becomes the beneficial owner of shares in the issued share capital of the Company carrying the right to exercise, or control the exercise of, more than 35 per

 

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cent. of the maximum number of votes exercisable at a general meeting of the Company.

 

(b)           Within three (3) days of the occurrence of a Change of Control, the Company will promptly notify the Agent in writing of such occurrence.

 

(c)           Upon the occurrence of a Change of Control, on the date falling ten (10) days after receipt of written notice from a Lender to the Borrower, that Lender’s Commitments shall be cancelled and the relevant participation of the Lender in the Loan, together with accrued interest, and all other amounts accrued under the Finance Documents to that Lender, shall become immediately due and payable.

 

(d)           Upon the occurrence of the sale of all or substantially all of the assets of the Group whether in a single transaction or a series of related transactions, on the date falling ten (10) days after receipt of written notice from a Lender to the Borrower, that Lender’s Commitments shall be cancelled and the relevant participation of the Lender in the Loan, together with accrued interest, and all other amounts accrued under the Finance Documents to that Lender, shall become immediately due and payable.

 

7.5          Disposal Proceeds

 

(a)           For the purposes of this Clause 7.5:

 

Disposal Proceeds means the aggregate amount of any proceeds arising in a Financial Year in excess of EUR 40,000,000 (or its equivalent in any other currency) received in cash by any Group Company (including any amount received in repayment of intercompany debt) for any Disposal made by any Group Company except for Excluded Disposal Proceeds and after deducting:

 

(i)            any reasonable expenses which are incurred by any Group Company with respect to that Disposal to persons who are not a Group Company; and

 

(ii)           any Tax incurred and required to be paid by any Group Company in connection with that Disposal (as reasonably determined by any Group Company, on the basis of existing rates and taking account of any available credit, deduction or allowance actually utilised by the relevant Group Company).

 

Excluded Disposal Proceeds means:

 

(i)            the proceeds of any Disposal referred to in paragraphs (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi) and (xii) of paragraph (a) of Clause 21.8 (Disposals);

 

(ii)           the proceeds of any Disposal which are contractually committed to be re-invested in assets of any Group Company within 6 months of receipt and actually re-invested in the assets of any member of the Group within 12 months of receipt;

 

(iii)          the proceeds of any Disposal which pursuant to the terms and conditions of the 2009 Bonds Indenture, the 2011 Bonds Indenture or the 2012 Bonds Indenture are not permitted to be applied to a prepayment to be made under paragraph (b)(i) below; or

 

31

 

(iv)          the proceeds of any Disposal which do not exceed EUR 1,000,000 (or its equivalent in another currency or currencies).

 

(b)           (i)            If, at the time of any Disposal there are Disposal Proceeds, the Company shall, or shall procure that the Borrower shall apply the Disposal Proceeds towards a prepayment and in the order contemplated in paragraph (b)(ii) below provided that:

 

(A)          the Net Debt to EBITDA as referred to in paragraph (b) of Clause 21 (Financial Covenants) (the Leverage Ratio) calculated in accordance with sub-paragraphs (B) and (C) below is greater than 4.0:1;

 

(B)          for the purposes of this Clause, the Leverage Ratio shall be the Leverage Ratio specified in the most recent Compliance Certificate (the Most Recent Compliance Certificate) supplied pursuant to paragraph (a) of Clause 19.2 (Compliance Certificate) and subject to paragraph (C) below, calculated on a pro forma basis by adjusting that Leverage Ratio to take into account any prepayment made or to be made under this paragraph (b)(i) since the Most Recent Compliance Certificate and any EBITDA attributable to any asset which is subject to the current Disposal or which has been the subject of a Disposal by a Group Company, in each case since the last day of the Relevant Period to which the Most Recent Compliance Certificate relates; and

 

(C)          an adjustment shall only be made to the Leverage Ratio specified in the Most Recent Compliance Certificate in respect of EBITDA attributable to an asset subject to a Disposal to the extent that a certificate of the Auditors verifying the calculation of such adjustments is delivered to the Agent.

 

(ii)           Subject to paragraph (c) below, any prepayment to be made under paragraph (b)(i) above shall be applied to prepay first, amounts outstanding under any of the Existing Finance Documents provided the maturity date in respect of the same is no later than 31 December 2012, second, in or towards prepayment of loans under the Existing Facility and a corresponding cancellation of commitments under the Existing Facility until such time as there are no loans under the Existing Facility outstanding and, thirdly, in or towards prepayment of the Loan until such time as the Loan ceases to be outstanding, subject (on or following the date of the Intercreditor Agreement Accession) to clause 13 (Proceeds of Disposal) of the Intercreditor Agreement, until an amount has been prepaid such that the Leverage Ratio calculated on a proforma basis as described in (B) above is no greater than 4.0:1.

 

(c)           To the extent that the Disposal Proceeds referred to in paragraph (b) above arise from the Disposal of assets in the Republic of South Africa, the Company may by giving no less than ten (10) days notice to the Agent use such Disposal Proceeds to prepay Financial Indebtedness arising under South African debt facilities notwithstanding the date on which such Financial Indebtedness arose or its date of maturity.

 

(d)           To the extent an application of the Disposal Proceeds in accordance with paragraph (b) above results in a prepayment of the Facility, unless the Company makes an election under paragraph (e) below, the Company shall (and shall procure

 

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that the Borrower shall) prepay the Loan promptly upon receipt of the Disposal Proceeds.

 

(e)                                  Subject to paragraph (f) below, the Company may elect that any prepayment under this Clause be applied in prepayment of the Loan on the last day of the Interest Period relating to the Loan. If the Company makes that election then the proportion of the Loan equal to the amount of the relevant prepayment will be due and payable on the last day of its Interest Period.

 

(f)                                   If the Company has made an election under paragraph (e) above but an Event of Default has occurred and is continuing, that election shall no longer apply and the proportion of the Loan (or loan under the Existing Facility) in respect of which the election was made equal to the amount of the relevant prepayment shall be immediately due and payable (unless the Majority Lenders otherwise agree in writing).

 

7.6          Outstanding amounts under 2009 Bonds

 

If, on the date falling six months prior to the maturity of the 2009 Bonds, EUR 250,000,000 (or its equivalent in any other currency) or more remains outstanding under those 2009 Bonds, on the date falling ten (10) days after receipt of written notice from a Lender to the Borrower, that Lender’s Commitment shall be cancelled and the outstanding part of the Loan, together with accrued interest, and all other amounts accrued under the Finance Documents to that Lender, shall become immediately due and payable.

 

7.7          Voluntary cancellation

 

The Company may, if it gives the Agent not less than three (3) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of EUR 25,000,000 and in integral multiples of EUR 5,000,000) of the Available Facility at any time during the Availability Period. Any cancellation under this Clause 7.6 shall reduce the Commitments of the Lenders rateably.

 

7.8          Voluntary prepayment of the Loan

 

(a)           The Borrower may, if it gives the Agent not less than thirty (30) Business Days’ (or such shorter period as the Majority Lenders may agree in consultation with OeKB) prior notice, prepay the whole or any part of the Loan (but if in part, being an amount that reduces the amount of the Loan by a minimum amount of EUR 5,000,000).

 

(b)           The Loan (or any part of the Loan in compliance with in (a) above) may only be prepaid after the last day of the Availability Period (or, if earlier, after the day on which the Available Facility is zero).

 

(c)           Any prepayment under paragraph (a) of this Clause 7.8 shall satisfy the obligations under clause 6.1 (Repayment of the Loan) and shall be applied to the obligations under Clause 6.1 (Repayment of the Loan) in the order of maturity or as otherwise approved in writing by OeKB.

 

7.9          Right of replacement or repayment and cancellation in relation to a single Lender

 

(a)           If:

 

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(i)            any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 12.2 (Tax gross-up) or because of a FATCA Deduction; or

 

(ii)           any Lender claims indemnification from the Company under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased Costs),

 

the Company may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Loan or give the Agent notice of its intention to replace that Lender in accordance with paragraph (d) below.

 

(b)           On receipt of a notice referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero.

 

(c)           On the last day of each Interest Period in respect of the outstanding part of the Loan under the Facility in respect of which the Company has given notice under paragraph (a) above (or, if earlier, the date specified by the Company in that notice), the Borrower shall repay that Lender’s participation in the outstanding part of the Loan.

 

(d)           The Company may, in the circumstances set out in paragraph (a) above, on fifteen (15) Business Days’ prior notice to the Agent and that Lender, replace that Lender by requiring that Lender to (and, to the extent permitted by law, that Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity selected by the Company which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 23 (Changes to the Lenders) for a purchase price in cash or other cash payment payable at the time of the transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding part of the Loan and all accrued interest (to the extent that the Agent has not given a notification under Clause 23.7 (Pro rata interest settlement)), Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(e)           The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions:

 

(i)            the Company shall have no right to replace the Agent;

 

(ii)           neither the Agent nor any Lender shall have any obligation to find a replacement Lender;

 

(iii)          the Agent has received written confirmation from OeKB (in form and substance satisfactory to the Agent) that OeKB agrees that the relevant Lender is replaced under paragraph (d) above;

 

(iv)          in no event shall the Lender replaced under paragraph (d) above be required to pay or surrender any of the fees received by such Lender pursuant to the Finance Documents; and

 

(v)           the Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (d) above once it is satisfied that it has complied with all

 

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necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to that transfer.

 

7.10        Right of Cancellation of a Defaulting Lender

 

(a)           If any Lender becomes a Defaulting Lender, the Borrower may, at any time whilst the Lender constitutes a Defaulting Lender, give the Agent fifteen (15) Business Days’ notice of cancellation of the Available Commitment of that Lender;

 

(b)           Once notice referred to in paragraph (a) above becomes effective, the Available Commitment of the Defaulting Lender shall be immediately reduced to zero.

 

(c)           The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above notify all the Lenders.

 

7.11        Restrictions

 

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

 

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

 

(c)           Any part of the Facility which is repaid or prepaid shall not be reborrowed.

 

(d)           The Borrower shall not repay or prepay all or any part of the Loan or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

 

(e)           No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

 

(f)            If the Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice to either the Borrower or the affected Lender, as appropriate.

 

(g)           Subject to paragraph (i) below, if it is unlawful for the Borrower to (or procure a Group Company to) make a prepayment under Clause 7.5 (Disposal Proceeds) and for such proceeds to be so applied, the Borrower shall (and shall procure that each Group Company shall) use all reasonable endeavours to overcome the prohibition to enable the relevant prepayment to be made. If, subject always to the requirement for each Obligor using all reasonable endeavours to overcome the prohibition it continues to be unlawful to make a prepayment under Clause 7.5 (Disposal Proceeds), then such prepayment will not be required to be made until such time as the prohibition no longer applies, at which time the relevant Group Company will immediately apply such amount in prepayment of the relevant facilities in accordance with the other provisions of this Clause 7.

 

(h)           The provisions of paragraph (g) above shall be subject always to the obligation to use other Group cash which is not subject to similar restrictions to prepay an equivalent amount where the use of such cash would not be materially prejudicial to the overall Group liquidity.

 

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(i)            Prior to the Disposal of any assets located in The Republic of South Africa where proceeds are required to be prepaid in accordance with Clause 7.5 (Disposal Proceeds), the Company shall be required to certify ten (10) Business Days prior to such disposal that the projected Disposal Proceeds arising therefrom can and shall be applied in accordance with Clause 7.5 (Disposal Proceeds) and deliver evidence to the Agent that such application shall not be unlawful. To the extent that such application of projected Disposal Proceeds is unlawful, the Company shall not be entitled to dispose of the assets referred to in this paragraph (i) without the prior written consent of the Majority Lenders. If consent of the Majority Lenders is forthcoming, the provisions of paragraphs (g) and (h) above shall apply. This paragraph (i) does not apply in the case of Disposal Proceeds applied pursuant to paragraph (c) of Clause 7.5 (Disposal Proceeds) above provided that such prepayment is in accordance with the terms of Clause 7.5 (Disposal Proceeds).

 

8.             INTEREST

 

8.1          Calculation of interest

 

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

 

(a)           Margin;

 

(b)           OeKB EUR Rate;

 

(c)           OeKB Financing Rate; and

 

(d)           Mandatory Cost, if any.

 

8.2          Payment of interest

 

The Borrower shall pay accrued interest on the Loan on the last day of each Interest Period.

 

8.3          Default interest

 

(a)           If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate 1.00 per cent. higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a loan under the terms and conditions set out in this Agreement for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).

 

(b)           Any interest accruing under this Clause 8.3 shall be immediately payable by the Obligor on demand by the Agent.

 

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

 

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8.4                               Notification of rates of interest

 

The Agent shall promptly notify the Lenders and the Borrower of the determination of a rate of interest under this Agreement (including the OeKB EUR Rate, the OeKB Financing Rate and the applicable Margin).

 

9.                                      INTEREST PERIODS

 

9.1                               Interest Periods

 

The Interest Periods applicable to the Loan shall be periods of three months, provided that:

 

(a)                                 the first Interest Period shall start on its Utilisation Date and shall end on 30 September 2012;

 

(b)                                subject to (c) below, each other Interest Period shall end on each 31 March, 30 June, 30 September and 31 December of each calendar year; and

 

(c)                                  in any event, the last Interest Period shall end on 30 June 2017.

 

9.2                               Non-Business Days

 

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

 

10.                               CHANGES TO THE CALCULATION OF INTEREST

 

10.1                        Market disruption

 

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

 

(i)                                     the Margin;

 

(ii)                                  subject to Clause 10.2 (Alternative basis of interest or funding), the rate notified to the Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender as certified by it with a copy to the Agent and the Borrower of funding its participation in the Loan from whatever source it may reasonably select; and

 

(iii)                               the Mandatory Cost, if any, applicable to that Lender’s participation in the Loan.

 

(b)                                 In this Agreement, Market Disruption Event means:

 

(i)                                     at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference Banks supplies a rate to the Agent to determine EURIBOR for the relevant Interest Period; or

 

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(ii)                                  before close of business in Vienna on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in the Loan exceed 35 per cent. of the Loan) that the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of EURIBOR.

 

10.2        Alternative basis of interest or funding

 

(a)                                 If a Market Disruption Event occurs and the Agent or the Borrower or the Company so requires, the Agent and the Borrower or the Company shall enter into negotiations (for a period of not more than 30 days) with a view to agreeing a substitute basis for determining the rate of interest.

 

(b)                                 Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Borrower or the Company, be binding on all Parties.

 

10.3        Break Costs

 

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

 

(b)                                 Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue. Break Costs of OeKB are payable by the Borrower directly to OeKB. The Borrower authorises the Agent to debit its account held with the Agent for the full amount of the break costs as requested by OeKB.

 

11.          FEES

 

11.1        Commitment fee

 

(a)                                 Subject to this Clause 11.1, the Borrower shall pay to the Agent (for the account of each Lender) a fee computed at a percentage rate per annum on a day to day basis on that Lender’s Available Commitment for the Availability Period equal to 40 per cent. of the applicable Margin (determined in accordance with paragraph (b) below), which would apply to the Loan.

 

(b)                                 The accrued commitment fee is payable in arrears from the Signing Date and on the last day of each successive period of three (3) Months which ends during the Availability Period, on the last day of the Availability Period and on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective for the period up to the date of cancellation.

 

(c)                                  No commitment fee is payable to the Agent (for the account of a Lender) on any Available Commitment of that Lender for any day on which that Lender is a Defaulting Lender.

 

11.2        Arrangement and Upfront fee

 

The Borrower shall pay to the Mandated Lead Arranger an arrangement fee and an upfront fee in the amount and at the time agreed in a Fee Letter.

 

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11.3        OeKB Administration fee

 

(a)                                 The Borrower shall pay an administration fee (Wechselbürgschaftentgelt) directly to OeKB. Subject to any other determination made by OeKB (in respect of the calculation basis, the applicable rate, the due dates or otherwise), the administration fee amounts to (i) 0.4 per cent. per annum on the amount of the Total Commitments guaranteed by the OeKB Guarantee and (i) 0.2 per cent. on the amount of the Total Commitments not guaranteed by the OeKB Guarantee.

 

(b)                                 The administration fee is calculated in advance based on the Outstandings at the beginning of each calendar quarter and is payable in respect of each commenced calendar quarter on the first day of each such calendar quarter.

 

11.4        Agency fee

 

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

 

12.          TAX GROSS UP AND INDEMNITIES

 

12.1        Definitions

 

(a)                                 In this Agreement:

 

Finance Company means a finance company within the meaning of article 105 1°c) of the Belgian Royal Decree implementing  the Belgian Income Tax Code, as amended from time to time.

 

New Qualifying Lender means a Lender who becomes a Qualifying Lender after SISA loses the tax status of a Finance Company.

 

Non-Treaty Protected Party means a Protected Party that was a Treaty Lender on the date that it became a Party to this Agreement but which has ceased to be a Treaty Lender as a result of any change after that date in (or in the interpretation, administration, or application of) any law or double taxation agreement or any published practice or published concession of any relevant tax authority.

 

Original Qualifying Lender means a Lender who is a Qualifying Lender prior to SISA losing the tax status of a Finance Company.

 

Protected Party means a Finance Party which is or will be subject to any liability or required to make any payment for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

 

Qualifying Lender means a Lender which is (on the date a payment falls due) beneficially entitled to that payment without a Tax Deduction (subject to the completion of any necessary procedural formalities).

 

Tax Credit  means a credit against, relief or remission for, or repayment of, any Tax.

 

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

 

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Tax Payment means either the increase in a payment made by an Obligor to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity).

 

Treaty Lender means a Finance Party which is treated as a resident of a Treaty State for the purposes of an applicable Treaty.

 

Treaty State means a jurisdiction having a double taxation agreement with the Republic of Austria, or, if the interest payments are being made by an Obligor resident in another state, with the state of residence of such Obligor which provides for full exemption from tax on interest (as defined in that double taxation agreement) in the Republic of Austria  or, if the interest payments are being made by an Obligor resident in another state, with the state of residence of such Obligor, irrespective of whether the receivable on which such interest is paid is directly or indirectly secured by real estate or other assets qualifying as immovable held by the relevant Obligor (such double taxation agreement being an applicable Treaty).

 

(b)                                 In this Clause 12 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination.

 

12.2        Tax gross-up

 

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

 

(b)                                 An Obligor or a Lender shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly. If the Agent receives such notification from a Lender it shall notify the relevant Obligor.

 

(c)                                 Subject to Clause 12.8 (Exemptions from gross up), if a Tax Deduction is required by law or by a decision of a competent taxing authority to be made by an Obligor in one of the circumstances set out in paragraph (d) below, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

 

(d)                                 The circumstances referred to in paragraph (c) above are:

 

(i)                                     where a person entitled to receive the payment is the Agent or the Mandated Lead Arranger (on their own behalf); or

 

(ii)                                  where a person entitled to receive the payment is a Lender which is a Qualifying Lender in respect of which the completion of procedural formalities is required before the relevant Obligor can make payments thereto without a Tax Deduction but such procedural formalities have not been completed other than as a result of the failure of the Lender to comply with its obligations under paragraph (g) below (unless such failure results from a failure by any Obligor to comply with any of its obligations under paragraph (g) below or Clause 12.7 (Filings)); or

 

(iii)                               where a person entitled to receive the payment is a Lender which would have been a Qualifying Lender but for any change after the date of this Agreement in (or in the interpretation, administration, or application of) any law or 

 

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double taxation agreement or any published practice or published concession of any relevant tax authority; or

 

(iv)                              where a person entitled to receive the payment  is a Lender which would have been a Qualifying Lender but for any change after the date of this Agreement in the position, status or circumstances of any Obligor (including, without limitation, a change in the place or places in which an Obligor is treated as resident for Tax purposes); or

 

(v)                                 where (a) SISA for any reason loses the tax status of a Finance Company, including where the status for Finance Companies or the exemption from the requirement to make a Tax Deduction on interest payments made by Finance Companies is abolished and (b) in each case, where no replacement giving equivalent tax status (including exemption from the requirement to make a Tax Deduction) (an Equivalent Tax Status) exists and is applied and continues to be applied to SISA or no other exemption from the requirement to make a Tax Deduction (a Tax Exemption) may be applied and continues to be applied to SISA, and, as a result of such circumstances, a Lender has ceased to be a Qualifying Lender to the extent that this altered status results from such circumstances. For the avoidance of doubt, this paragraph (d)(v) of Clause 12.2 applies in each of the following circumstances:

 

(A)                               with respect to an Original Qualifying Lender, where SISA for any reason loses (1) the tax status of a Finance Company and/or (2) its Equivalent Tax Status or Tax Exemption, and, in each case, there is no subsequent Equivalent Tax Status or Tax Exemption that may be applied and continues to be applied to SISA, and as a result of such circumstances, that Lender has ceased to be a Qualifying Lender; and

 

(B)                               with respect to a New Qualifying Lender, where SISA for any reason loses its Equivalent Tax Status or Tax Exemption, and there is no subsequent Equivalent Tax Status or Tax Exemption that may be applied and continues to be applied to SISA, and as a result of such circumstances, that Lender has ceased to be a Qualifying Lender.

 

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

 

(f)                                   Within thirty (30) days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment in respect of which the Tax Deduction is required evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant tax authority.

 

(g)                                  A Qualifying Lender and each Obligor which makes a payment to which that Qualifying Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

 

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12.3        Tax indemnity

 

(a)                                 Subject to Clause 12.5 (Stamp Taxes), each Obligor shall (within five (5) Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax (other than Tax assessed on it under § 98 para 1 no 5 lit b of the Austrian Income Tax Act (österreichisches Einkommensteuergesetz)) by that Protected Party in respect of a Finance Document.

 

(b)                                 Subject to Clause 12.5 (Stamp Taxes), each Obligor shall (within five (5) Business Days of demand by the Agent) pay to a Non-Treaty Protected Party an amount equal to the loss, liability or cost which that Non-Treaty Protected Party determines will be or has been (directly or indirectly) suffered by it for, on account of or in relation to, Tax assessed on it under § 98 para 1 no 5 lit b of the Austrian Income Tax Act (österreichisches Einkommensteuergesetz), and shall also pay to that Non-Treaty Protected Party such additional amount as that Non-Treaty Protected Party determines will leave it (after full payment under this paragraph (b)) in the same after-Tax position as it would have been had no such loss, liability or cost been suffered.

 

(c)                                  Paragraphs (a) and (b) above shall not apply:

 

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

 

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

 

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

 

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

 

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

 

(A)                               is compensated for by an increased payment under Clause 12.2 (Tax gross-up); or

 

(B)                               would have been compensated for by an increased payment under Clause 12.2 (Tax gross-up) but was not so compensated solely because none of the circumstances in paragraph (d) of Clause 12.2 (Tax gross-up) existed or applied or because Clause 12.8 (Exemptions from gross up) applied.

 

(d)                                 A Protected Party making, or intending to make, a claim pursuant to paragraph (a) or (b) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the Company.

 

(e)                                  A Protected Party shall, on receiving a payment from an Obligor under this Clause 12.3, notify the Agent.

 

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12.4        Tax Credit

 

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

 

(i)                                     a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax Payment; and

 

(ii)                                  that Finance Party has obtained, utilised and retained that Tax Credit,

 

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

 

(b)                                 If a Finance Party makes any payment to an Obligor pursuant to paragraph (a) above and such Finance Party subsequently determines that the Tax Credit in respect of which such payment was made was not available or has been withdrawn or that it was unable to use such Tax Credit in full, the Obligor shall reimburse that Finance Party such amount (being an amount paid by the Finance Party to the Obligor pursuant to paragraph (a) above) as the Finance Party reasonable determines is necessary to place it (after the payment) in the same after-Tax position as it would have been in if such Tax Credit had been obtained and fully used and retained by such Finance Party.

 

12.5        Stamp Taxes

 

(a)                                 The Borrower shall pay and, within five (5) Business Days of demand, indemnify each Finance Party against any cost, loss or liability that that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document, Existing Finance Document or other document which relates to any Finance Document, Existing Finance Document or any transaction contemplated by, or referenced in, any Finance Document or Existing Finance Document, provided, however, that the Borrower shall not be so liable to pay and indemnify a Finance Party in respect of any cost, loss or liability that a Finance Party so incurs in relation to the Finance Documents to the extent that such cost, loss or liability results from that Finance Party’s grossly negligent (grob fahrlässig) or wilful (vorsätzlich) breach of its obligations under paragraph (b) below and, provided further that with respect to any Existing Finance Document or any other document which relates to any Existing Finance Document, the Borrower shall indemnify each Finance Party against any cost, loss or liability incurred in relation to Austrian stamp duty only. A Finance Party which is a party to an Existing Finance Document may only claim under this paragraph (a) with respect to any Austrian stamp duty payable by it in respect of that Existing Finance Document or any other document which relates to that Existing Finance Document to the extent that such Existing Finance Document or other document makes no provision for the indemnification of that Finance Party in respect of such amounts.

 

(b)                                 No Party shall bring or send to, or otherwise produce in, Austria a Stamp Duty Sensitive Document or communicate in writing other than in compliance with the Stamp Duty Guidelines, in each case other than in the event that:

 

(i)                                     it does not cause a liability of a Party to pay stamp duty or other Tax in Austria;

 

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(ii)                                  a Party wishes to enforce any of its rights under or in connection with a Finance Document in Austria and is only able to do so (including, without limitation, by reason of any objection or defence raised by an Obligor in any form of proceedings in Austria) by bringing or sending to, or otherwise producing in, Austria a Stamp Duty Sensitive Document and it would not be sufficient for that Party to bring or send to, or otherwise produce in, Austria a document that is not a Stamp Duty Sensitive Document for the purposes of such enforcement; in furtherance of the foregoing, no Party shall (1) object to the introduction into evidence of an uncertified copy of any Stamp Duty Sensitive Document or raise a defence to any action or to the exercise of any remedy on the basis of an original or certified copy of any Stamp Duty Sensitive Document not having been introduced into evidence, unless such uncertified copy actually introduced into evidence does not accurately reflect the content of the original document and (2) if such Party is a party to the proceedings before an Austrian court or authority, contest the authenticity (Echtheit) of an uncertified copy of any such Stamp Duty Sensitive Document, unless such uncertified copy actually introduced into evidence does not accurately reflect the content of the original document; or

 

(iii)                               a Party is required by law, governmental body, court, authority or agency pursuant to any legal requirement (whether for the purposes of initiating, prosecuting, enforcing or executing any claim or remedy or enforcing any judgment or otherwise) to bring or send a Stamp Duty Sensitive Document into, or otherwise produce a Stamp Duty Sensitive Document in, Austria.

 

12.6        Value added tax

 

(a)                                 All consideration payable under a Finance Document by an Obligor to a Finance Party shall be deemed to be exclusive of any VAT. If VAT is or becomes chargeable on any supply made by any Finance Party to an Obligor under a Finance Document, that Obligor shall pay to the Finance Party (in addition to and at the same time as paying the consideration for such supply) an amount equal to the amount of such VAT (and such Finance Party shall promptly provide an appropriate VAT invoice to that Obligor).

 

(b)                                 If VAT is or becomes chargeable on any supply made by a Finance Party (the Supplier) to any other Finance Party (the Recipient) under a Finance Document, and any Party other than the Recipient (the Subject Party) is required by the terms of any Finance Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being required to reimburse the Recipient in respect of that consideration), such Party shall also pay to the Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT. The Recipient will promptly pay to the Subject Party an amount equal to any credit or repayment obtained by the Recipient from the relevant tax authority which the Recipient reasonably determines is in respect of such VAT.

 

(c)                                  Where a Finance Document requires an Obligor to reimburse or indemnify a Finance Party for any costs or expenses, that Obligor shall also at the same time reimburse or indemnify (as the case may be) that Finance Party for and against all VAT incurred by that Finance Party in respect of the costs or expenses save to the extent that such Finance Party reasonably determines that it is entitled to repayment or credit in respect of the VAT from the relevant tax authority.

 

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(d)                                 Where a Finance Party has an option available to it under applicable VAT law whether or not to subject a supply to VAT, it shall not subject the supply to VAT without a prior written consent of the recipient of such supply.

 

(e)                                  Any reference in this Clause 12.6 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the person who is treated as making the supply, or (as appropriate) receiving the supply, under the relevant grouping rules (as provided for in Article 11 of Council Directive 2006/112/EC (or as implemented by a member state of the European Union)).

 

12.7        Filings

 

In circumstances where an Obligor is required (or would in the absence of any such filing be required) to make a Tax Deduction, such Obligor and each relevant Finance Party shall make reasonable endeavours following a reasonable request by the relevant Obligor or Finance Party to file such forms and documents as the appropriate tax authority may reasonably require in order to enable such Obligor to make relevant payments under the Finance Documents without having to make such Tax Deduction.

 

12.8        Exemptions from gross up

 

Notwithstanding anything contained in this Clause 12 (Tax gross up and indemnities), no additional amount will be payable to a Lender under Clause 12.2 (Tax gross-up) to the extent that such additional amount would not be payable if that Lender had complied with its obligations under Clause 12.7 (Filings) unless such failure to comply resulted from a failure by any Obligor to comply with any of its obligations under paragraph (g) of Clause 12.2 (Tax gross up) or Clause 12.7 (Filings).

 

13.          INCREASED COSTS

 

13.1        Increased Costs

 

(a)                                 Subject to Clause 13.3 (Exceptions), the Borrower shall, within three (3) Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation occurring after the date of this Agreement or (ii) compliance with any law or regulation made after the date of this Agreement.

 

(b)                                 In this Agreement, Increased Costs means:

 

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

 

(ii)                                  an additional or increased cost; or

 

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

 

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

 

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13.2        Increased cost claims

 

(a)                                 A Finance Party intending to make a claim pursuant to Clause 13 (Increased Costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrower.

 

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

 

13.3        Exceptions

 

Clause 13 (Increased Costs) does not apply to the extent any Increased Cost is:

 

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

 

(b)                                 compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated solely because one of the exclusions in paragraph (c) of Clause 12.3 (Tax indemnity) applied);

 

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

 

(d)                                 attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation or failure to comply with any request from or requirement of any central bank or other fiscal, monetary or other authority (whether or not having the force of law).

 

14.          OTHER INDEMNITIES

 

14.1        Currency indemnity

 

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

 

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

 

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

 

that Obligor shall as an independent obligation, within five (5) Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

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

 

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14.2        Other indemnities

 

Each Obligor will within five (5) Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of:

 

(a)                                 the occurrence of any Event of Default;

 

(b)                                 a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 27 (Sharing among the Lenders);

 

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

 

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

 

14.3        Indemnity to the Agent

 

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

 

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

 

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

 

15.          MITIGATION BY THE LENDERS

 

15.1        Mitigation

 

(a)                                 Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 12 (Tax gross up and indemnities), or Clause 13 (Increased Costs) or paragraph 3 of Schedule 4 (Mandatory Cost Formulae) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

(b)                                 Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents.

 

15.2        Limitation of liability

 

(a)                                 The Borrower shall promptly indemnify each Finance Party, upon presentation of duly documented evidence thereof, for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 15.1 (Mitigation).

 

(b)                                 A Finance Party is not obliged to take any steps under Clause 15.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might have an adverse effect on its business, operations or financial condition.

 

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16.          COSTS AND EXPENSES

 

16.1        Transaction expenses

 

The Borrower shall promptly on demand pay the Agent and the Mandated Lead Arranger, the amount of all reasonable costs and expenses including legal fees incurred by any of them in connection with the negotiation, preparation, printing, execution, syndication and perfection of:

 

(a)                                 this Agreement and any other documents referred to in this Agreement and following the occurrence of a Security Trigger Event, the Conditional Security; and

 

(b)                                 any other Finance Documents executed after the date of this Agreement,

 

notwithstanding if no Utilisation is made under this Agreement.

 

16.2        Amendment costs

 

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 28.10 (Change of currency), the Borrower shall, within three (3) Business Days of demand, reimburse each of the Agent for the amount of all reasonable costs and expenses (including legal fees) incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement.

 

16.3        Enforcement costs

 

The Borrower shall, within three (3) Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal and court fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document.

 

17.          GUARANTEE AND INDEMNITY

 

17.1        Guarantee and indemnity

 

Each Guarantor irrevocably and unconditionally jointly and severally:

 

(a)                                 guarantees to each Finance Party punctual performance by the Borrower of all the Borrower’s obligations under the Finance Documents;

 

(b)                                 undertakes with each Finance Party that whenever the Borrower does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall immediately on demand pay the amount so demanded as if it was the principal obligor; and

 

(c)                                  as an independent and primary obligation, indemnifies each Finance Party immediately on demand against any cost, loss or liability suffered by that Finance Party (i) if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal or (ii) by operation of law. The amount of the cost, loss or liability shall be equal to the amount which that Finance Party would otherwise have been entitled to recover.

 

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17.2        Continuing guarantee: nature of guarantee

 

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

 

(b)                                 Notwithstanding anything to the contrary herein or in any other of the Finance Documents, this guarantee is meant to be and shall be interpreted as “abstract guarantee” (abstrakter Garantievertrag) and the obligations of the Guarantors hereunder shall be obligations of the Guarantors as principal debtors and not as sureties (Buergschaft) and not as a joint obligation as a borrower (Mitschuldner) and the Guarantors undertake to pay the amounts so demanded under or pursuant to this guarantee unconditionally, irrevocably, upon first demand and without raising any defences or objections, set-off or counterclaim and without verification of the legal ground (unbedingt, unwiderruflich, auf erste Aufforderung und unter Verzicht auf alle Einwendungen oder Einreden, ohne Aufrechnung oder die Geltendmachung von Gegenforderungen und ohne Prüfung des Rechtsgrunds).

 

17.3        Reinstatement

 

If any payment by an Obligor or any discharge given by a Finance Party (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event:

 

(a)                                 the liability of each Obligor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and

 

(b)                                 each Finance Party shall be entitled to recover the value or amount of that security or payment from each Obligor, as if the payment, discharge, avoidance or reduction had not occurred.

 

17.4        Waiver of defences

 

The obligations of each Guarantor under this Clause 17 (Guarantee and indemnity) will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 17 (Guarantee and indemnity) (without limitation and whether or not known to it or any Finance Party) including:

 

(a)                                 any time, waiver or consent granted to, or composition with, any Obligor or other person;

 

(b)                                 the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any Group Company;

 

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

 

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

 

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(e)                                  any amendment, novation, supplement, extension (whether of maturity or otherwise) or restatement (in each case however fundamental and of whatsoever nature) or replacement of a Finance Document or any other document or security;

 

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

 

(g)                                  any insolvency or similar proceedings.

 

17.5        Guarantor Intent

 

Without prejudice to the generality of Clause 17.4 (Waiver of defences), each Guarantor expressly confirms that subject to the limitations contained in this Clause 17 (Guarantee and indemnity), it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing.

 

17.6        Immediate recourse

 

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee (Treuhänder) or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 17. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

 

17.7        Appropriations

 

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

 

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

 

(b)                                 hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this Clause 17 (Guarantee and indemnity).

 

17.8        Deferral of Guarantors’ rights

 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or arising, under this Clause 17 (Guarantee and indemnity):

 

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(a)                                 to be indemnified by an Obligor;

 

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

 

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

 

(d)                                 to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under Clause 17.1 (Guarantee and indemnity);

 

(e)                                  to exercise any right of set-off against any Obligor; and/or

 

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

 

If a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust (treuhändig)  for the Finance Parties and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with Clause 28 (Payment Mechanics).

 

17.9        Release of Guarantors’ right of contribution

 

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

 

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

 

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

 

17.10      Additional security

 

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

 

17.11      Belgian Guarantee Limitation

 

(a)                                 In the case of a Belgian Guarantor its liability under this Clause 18 (Guarantee and indemnity) shall be limited, at any time, to a maximum aggregate amount equal to the greater of:

 

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(i)                                     an amount equal to 90% of the value of such Belgian Guarantor’s net assets (netto-actief/actif net) (as determined in accordance with article 617, §2 of the Belgian Companies Code and accounting principles generally accepted in Belgium, but not taking intra-group debt into account as debts) as shown by its most recent audited annual financial statements on the date on which the relevant demand is made; and

 

(ii)                                  the aggregate amount outstanding on the date on which the relevant demand is made of (i) the principal amount borrowed by the Belgian Guarantor pursuant to this Agreement and (ii) the aggregate amount of any intra-group loans or facilities made to it by any Group Company directly and/or indirectly using all or part of the proceeds of the Facility (whether or not such intra-group loan is retained by the Belgian Guarantor for its own purposes or on-lent to a Subsidiary of such Belgian Guarantor, but for the avoidance of doubt excluding any intra-group loan on-lent to any other Group Company).

 

(b)                                 The guarantee under this Clause 18 (Guarantee and indemnity) does not apply to any liability to the extent it would result in this guarantee constituting unlawful financial assistance, as determined within the meaning of article 629 of the Belgian Company Code.

 

17.12      Austrian Guarantee Limitation

 

(a)                                 Nothing in this Agreement shall be construed to create any obligation of an Austrian Guarantor to act in violation of mandatory Austrian capital maintenance rules (Kapitalerhaltungsvorschriften), including, without limitation, § 82 et seq. of the Austrian Act on Limited Liability Companies (Gesetz über Gesellschaften mit beschränkter Haftung — GmbHG) and § 52 et seq. of the Austrian Act on Joint Stock Companies (Aktiengesetz-AktG) (the Austrian Capital Maintenance Rules), and all obligations of an Austrian Guarantor under this Agreement shall be limited in accordance with Austrian Capital Maintenance Rules.

 

(b)                                 If and to the extent the payment obligations of an Austrian Guarantor under this Agreement would not be permitted under Austrian Capital Maintenance Rules or would render the directors of an Austrian Guarantor or of the general partner of an Austrian Guarantor (as applicable) personally liable pursuant to Austrian law to any of the creditors of that Austrian Guarantor or of the general partner (as applicable) as a consequence of paying such amount, then such payment obligations shall be limited to the maximum amount permitted to be paid which would not trigger such directors’ liability, provided that the amount payable shall not be less than (i) that Austrian Guarantor’s balance sheet profit (including retained earnings) (Bilanzgewinn) as defined in § 224 (3) lit A no. IV of the Austrian Enterprise Code (Unternehmensgesetzbuch — UGB) as calculated by reference to the most recent (audited, if applicable) financial statements of that Austrian Guarantor then available, plus (ii) any other amounts which are freely available for distribution to the shareholder(s) or partner(s) (as applicable) of that Austrian Guarantor and to the shareholders of that Austrian Guarantor’s partners under the GmbHG or AktG (as the case may be) and the UGB at the time or times payment under or pursuant to this Agreement is requested from an Austrian Guarantor, plus, (iii) to the extent applicable, the aggregate Utilisations (plus any accrued interest, commission and fee thereon) borrowed by that Austrian Guarantor and/or its partners in its capacity as Borrower, plus (iv) to the extent applicable, the aggregate Utilisations (plus any accrued interest, commission and fees thereon) borrowed by any other Obligor under this Agreement and made available to that Austrian Guarantor and/or its partners

 

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and/or its Subsidiaries plus (v) the amount of any indebtedness capable of being discharged by way of setting-off that Austrian Guarantor’s recourse claim following an enforcement of this guarantee against any indebtedness owed by that Austrian Guarantor to another Obligor.

 

17.13      Dutch Guarantee Limitation

 

Notwithstanding any other provision of this Agreement, the guarantee, indemnity and other obligations of any Dutch  Guarantor under this Clause 17  (Guarantee and indemnity) shall be deemed not to be given to the extent that the same would constitute unlawful financial assistance within the meaning of article 2:98c and/or 2:207c of the Dutch Civil Code or any other applicable financial assistance rules under any applicable law and the provisions of this Clause 17  (Guarantee and indemnity) and other provisions of this Agreement shall be construed accordingly.

 

17.14      Finnish Guarantee Limitation

 

(a)                                 The liabilities and obligations guaranteed by a Finnish Guarantor in its capacity as Guarantor under this Clause 17  (Guarantee and indemnity) shall not include, and no Finnish Guarantor shall be liable to perform or be deemed to have undertaken any liability or obligation in respect of, any liability or obligation the guaranteeing of which would be contrary to or would constitute a breach of mandatory provisions or principles of Finnish law, (including without limitation (i) Chapter 13, Section 1 of the Finnish Companies Act (1.9.2006/624, as amended) regulating distribution of assets and (ii) other applicable mandatory provisions of Finnish corporate law.

 

(b)                                 Furthermore, the maximum amount payable at any time by a Finnish Guarantor under the Agreement shall not exceed an amount equal to the higher of the following:

 

(i)                                     the aggregate amount of (a) the aggregate amount on the date of the Agreement, or on the date on which the Finnish Guarantor became a Finnish Guarantor, if later, owing by that Finnish Guarantor (directly or indirectly) to the Borrower under any intragroup loan agreement or loan agreements between that Finnish Guarantor and one or more of the Borrower (or any direct or indirect subsidiary of any Borrower) existing on the date hereof or on the date on which the Finnish Guarantor became a Finnish Guarantor, if later, and (b) the aggregate amount of funds available for distribution as a dividend of that Finnish Guarantor according to the Finnish Companies Act on the date on which any guaranteed party exercises any of its rights, remedies, powers or discretions under any guarantee provided by that Finnish Guarantor pursuant to the Agreement; or

 

(ii)                                  the aggregate amount of (a) the aggregate amount owing by a Finnish Guarantor (directly or indirectly) to the Borrower under any intragroup loan agreement or loan agreements between that Finnish Guarantor and one or more of the Borrower (or any direct or indirect subsidiary of any Borrower) existing on the date on which any guaranteed party exercises any of its rights, remedies, powers or distributions under any guarantee provided by that Finnish Guarantor pursuant to the Agreement and (b) the aggregate amount of funds available for distribution as a dividend of that Finnish Guarantor according to the Finnish Companies Act on the date on which any guaranteed party exercises any of its rights, powers or discretions under any guarantee provided by that Finnish Guarantor pursuant to the Agreement; or

 

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(iii)                               any higher amount (based on any direct or indirect economic and operational benefit to that Finnish Guarantor derived under this Agreement) to the extent not prohibited by Chapter 13, Section 1 of the Finnish Companies Act,

 

in each case less the aggregate amount at that time already paid or payable by that Finnish Guarantor under any  claim made under any guarantee under the Agreement.

 

17.15      Guarantee limitations for German Guarantors

 

(a)                                 Each Finance Party agrees that the enforcement of the guarantee and indemnity pursuant to this Clause 17 (Guarantee and indemnity), other than in respect of the Loan made available to such German Guarantor or to a Subsidiary of such German Guarantor by a Lender, shall be limited, in relation to any German Guarantor which is a German limited liability company (Gesellschaft  mit  beschränkter  Haftung — GmbH) (the Affected German Guarantor), to the extent that payment under that guarantee and indemnity would:

 

(i)                                     cause the Affected German Guarantor’s net assets (Reinvermögen) as per the date of enforcement of this guarantee and indemnity (the Relevant Net Assets) to fall below its registered share capital (Stammkapital) (Begründung einer Unterbilanz); and

 

(ii)                                  thereby cause a violation of section 30 of the German Limited Liabilities Company Act (as amended from time to time) or, where the Relevant Net Assets are already lower than its registered share capital cause such amount to be further reduced (Vertiefung einer Unterbilanz):

 

(b)                                 For the purposes of the calculation of the limitation pursuant to paragraph (a) above, the following balance sheet items shall be adjusted as follows:

 

(i)                                     the amount of any increase of the registered share capital (Stammkapital) of the Affected German Guarantor, effected after the date of this Agreement without the prior written consent of the Security Agent shall be deducted from the relevant registered share capital; and

 

(ii)                                  loans and other liabilities incurred in violation of the provisions of this Agreement shall be disregarded,

 

(c)                                 In case of an enforcement of the guarantee pursuant to this Clause 17 (Guarantee and indemnity), the Affected German Guarantor shall (upon the written request of the Agent (acting upon the instruction of the Majority Lenders) and to the extent legally permitted) for the purposes of the determination of the Relevant Net Assets dispose of all assets which are shown in the balance sheet of the Affected German Guarantor with a book value (Buchwert) which is significantly lower than the market value of such assets to the extent that such assets are not necessary for the Affected German Guarantor’s business (nicht betriebsnotwendig).

 

(d)                                 The limitations set out in this Clause 17.15 shall not apply:

 

(i)                                     to any amounts due and payable under the guarantee and indemnity pursuant to this Clause 17 (Guarantees and Indemnity) which relate to funds which have been on-lent to the Affected German Guarantor or to any of its Subsidiaries and are still outstanding; or

 

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(ii)                                  to the extent following notification by the Agent (acting upon the instruction of the Majority Lenders) to the Affected German Guarantor of claims raised under the guarantee and indemnity pursuant to this Clause 18 (Guarantee and indemnity), the Affected German Guarantor does not provide evidence satisfactory to the Agent (acting reasonably), including in particular interim financial statements, within thirty (30) days after the date of such notification, or if after receipt of such unaudited statements notification is given by the Agent (acting upon the instruction of the Majority Lenders) to the Affected German Guarantor to provide audited financial statements up to the end of that same calendar month and such audited financial statements are not provided within sixty (60) days after the date of such notification or

 

(iii)                               when, at the time of enforcement of a guarantee and indemnity created or joint and several liability assumed hereunder, the restrictions under paragraph (a) are, due to a change of the applicable laws, the interpretation thereof or otherwise, not required to protect the managing directors of the Affected German Guarantor or of any of its direct or indirect shareholders from the risk of personal liability; or

 

(iv)                              to an Affected German Guarantor if and so long it is party to a domination and/or profit and loss pooling agreement (Beherrschungs- und/oder Gewinnabführungsvertrag) (section 291 of the German Stock Corporation Act) as a dominated or profit distributing entity or such Affected German Guarantor has a fully recoverable recourse claim (vollwertiger Gegenleistungs- oder Rückgewähranspruch).

 

(e)                                  No reduction of the amount enforceable under this guarantee in accordance with the above limitations will prejudice the rights of the Finance Parties to continue enforcing the guarantee (subject always to the operation of the limitation set out above at the time of such enforcement) until full satisfaction of the guaranteed claims.

 

(f)                                  The aforementioned provisions shall also apply to a German Guarantor in the legal form of a limited partnership (Kommanditgesellschaft) with a limited liability company as its sole general partner (Komplementär) (GmbH & Co. KG) mutatis mutandis and all references to net assets shall be construed as a reference to the aggregated net assets of the general partner and the limited partnership.

 

17.16      Guarantee Limitations for US Guarantors

 

Notwithstanding anything to the contrary contained in this Clause 17 (Guarantee and indemnity), the maximum liability of any US Guarantor under this Clause 17 (Guarantee and indemnity) shall be 95% of the Net Assets of such US Guarantor. For such purpose, the term Net Assets of any such US Guarantor shall mean the highest amount, determined as of any Determination Date, by which (a) all of such US Guarantor’s property at fair valuation (within the meaning of Section 101(32)(A) of the US Bankruptcy Code but excluding the capital stock or other ownership interests issued by any other Guarantor or by any other person that is required hereby to become a Guarantor) exceeds (b) such US Guarantor’s debts (as defined in Section 101(12) of the US Bankruptcy Code but excluding its obligations under this Clause 17 (Guarantee and indemnity), and the term Determination Date shall mean each of (1) the date on which such US Guarantor becomes obligated under this Clause 17 (Guarantee and indemnity), (2) the date of the commencement of a case under the US Bankruptcy Code in which such US Guarantor is a debtor and (3) the date of enforcement of the liabilities of such US Guarantor under this Clause 17 (Guarantee and indemnity).

 

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17.17      Guarantee Limitation for the Company

 

Nothing in this Agreement shall be construed to create any obligation on the Company to act in violation of the SARB Approvals.

 

17.18      General Limitation

 

Without prejudice and in addition to any limitation on the liability of any Additional Guarantor otherwise provided for herein, the liability of each Additional Guarantor under this guarantee shall not at any time exceed the lower of the amount of that Additional Guarantor’s outstanding indebtedness (excluding for this purpose any indebtedness owing by one Group Company to another Group Company) and any limits imposed upon its maximum liability under this guarantee by mandatory applicable law.

 

17.19      Limitations on Guarantee by Additional Guarantors

 

The guarantee of any Additional Guarantor that is not an Austrian Guarantor, a Belgian Guarantor, a Dutch Guarantor, a Finnish Guarantor, a German Guarantor or a US Guarantor shall be subject to any limitation relating to that Additional Guarantor as set out in any relevant Accession Letter and agreed by the Agent (acting reasonably).

 

18.          REPRESENTATIONS

 

Each Obligor (except as otherwise provided herein) makes the representations and warranties set out in this Clause 18 to each Finance Party on the date of this Agreement.

 

18.1        Status

 

(a)                                 It is a corporation or limited partnership, duly incorporated and validly existing under the law of its jurisdiction of incorporation.

 

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

 

18.2        Binding obligations

 

(a)                                 The obligations expressed to be assumed by it in each Finance Document are, subject to the Reservations, legal, valid and binding obligations enforceable in accordance with their terms.

 

(b)                                 Before the date of an Intercreditor Agreement Accession and without limiting the generality of paragraph (a) above, each Conditional Security Document to which it is a party creates, subject to the Conditional Security Reservations, the security interests which that Conditional Security Document purports to create and those security interests are valid and effective.

 

(c)                                  On and after the date of an Intercreditor Agreement Accession and without limiting the generality of paragraph (a) above, each Conditional Security Document to which it is a party creates, subject to the Conditional Security Reservations, the security interests including, subject to the limitations set forth in the Intercreditor Agreement, in respect of the obligations under this Agreement that Conditional Security Document purports to create and those security interests are valid and effective.

 

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18.3        Non-conflict with other obligations(1)

 

The entry into and performance by it of, and the transactions contemplated by, (i) the Finance Documents and (ii) the granting of the Conditional Security to the Finance Parties after the occurrence of a Security Trigger Event do not and will not conflict with:

 

(a)                                any law or regulation applicable to it;

 

(b)                                 the constitutional documents of any Group Company; or

 

(c)                                  to an extent which could reasonably be expected to have a Material Adverse Effect, any agreement or instrument binding upon it or any Group Company or any of its assets.

 

18.4        Power and authority

 

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

 

18.5        Validity and admissibility in evidence

 

Subject to the Reservations, all Authorisations required or desirable:

 

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

 

(b)                                 to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation,

 

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

 

18.6        Governing law and enforcement

 

Subject to the Reservations:

 

(a)                                 the choice of the governing law of the Finance Documents will be recognised and enforced in its jurisdiction of incorporation; and

 

(b)                                 any judgment obtained in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation.

 

18.7        Deduction of Tax

 

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

 

18.8        No filing or stamp taxes

 

Subject to the Reservations, under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees

 

(1)                                 To be confirmed by Cravath and Linklaters.

 

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be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents (other than (i) Austrian stamp duty that may become payable if any Stamp Duty Sensitive Document is brought into or produced in Austria, (ii) a EUR 0.15 documentary duty in accordance with the Belgian Code on certain Rights and Taxes (Wetboek diverse rechten en taksen / Code des droits et taxes divers) for each copy of each Finance Document executed in Belgium and/or, (iii) reasonable notary fees and immaterial registration fees to be paid in connection with the registration of the Dutch Security Documents).

 

18.9        No Default

 

(a)                                 No Event of Default and on the Signing Date no Default is continuing or might reasonably be expected to result from the making of any Utilisation.

 

(b)                                 No other event or circumstance is outstanding which constitutes a default or termination event (however described) under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries’) assets are subject which has or is reasonably likely to have a Material Adverse Effect.

 

18.10      No misleading information

 

(a)                                 Any factual information provided to the Finance Parties by it (or on its behalf) was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.

 

(b)                                 Any financial projection or forecast contained in any information provided to the Finance Parties by it (or on its behalf) has been prepared on the basis of recent historical information and on the basis of assumptions which have been carefully considered by the management of the Company and are considered by them to be fair and reasonable (at the date of the relevant report or document containing the projection or forecast).

 

(c)                                  Any expressions of opinion or intention provided in any information provided to the Finance Parties by it (or on its behalf) represent the honestly held opinion or view of that Obligor or the Company and were made after careful consideration and were based on grounds believed by that Obligor to be reasonable.

 

(d)                                 Nothing has occurred or has arisen and no information has been omitted from the information provided so far and no information has been given or withheld that results in the information provided so far being untrue or misleading in any material respect.

 

(e)                                  All other written information provided by any Group Company (including its advisers) to a Finance Party was true, complete and accurate in all material respects as at the date it was provided and was not misleading in any material respect as at the date it was provided.

 

18.11      Financial statements

 

(a)                                 Its Original Financial Statements (if any) were prepared in accordance with Applicable Accounting Principles consistently applied.

 

(b)                                 In the case of Sappi Maastricht BV, Sappi Nijmegen BV, Sappi Deutschland Holding GmbH, S.D. Warren Company, Sappi Netherlands BV, the Company and the

 

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Borrower, its unaudited Original Financial Statements (if any) fairly represent its financial condition and results of operations as at the end of and for the relevant Financial Year, or such other period, as the case may be.

 

(c)                                  Other than in the case of Sappi Maastricht BV, Sappi Nijmegen BV, Sappi Deutschland Holding GmbH, S.D. Warren Company, Sappi Cloquet LLC and Sappi Netherlands BV its audited Original Financial Statements give a true and fair view of its financial condition and results of operations as at the end of and for the relevant financial year.

 

(d)                                 Its most recent financial statements delivered pursuant to Clause 19.1 (Financial statements):

 

(i)                                     have been prepared in accordance with Applicable Accounting Principles; and

 

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

 

18.12      No Material Adverse Effect

 

Since 31 March 2012 there has been no material adverse change in the business, condition (financial or otherwise), operations or performance of the Group Companies (taken as a whole).

 

18.13      Business Authorisations

 

Each Authorisation required by each Group Company in connection with its business has been obtained or effected and each Group Company is in full compliance with the same, save where failure to obtain or effect such Authorisation or non-compliance with such Authorisation is not reasonably likely to have a Material Adverse Effect.

 

18.14      Pari passu ranking

 

Subject to the Reservations,

 

(a)                                 its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally; and

 

(b)                                following the Intercreditor Agreement Accession, the Conditional Security has or will have the ranking in priority which it is expressed to have in the Conditional Security Documents and is not subject to any prior ranking or pari passu ranking Security save to the extent that such Conditional Security secures other Senior Creditors on a pari passu basis in accordance with the terms of the Intercreditor Agreement.

 

18.15      Environmental compliance

 

Each Group Company has complied in all respects with all Environmental Law save to the extent that non-compliance would not reasonably be likely to have a Material Adverse Effect.

 

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18.16      Security and Financial Indebtedness

 

(a)                                 Save for the Existing Security, no Security exists over all or any of the assets of any Group Company other than as permitted in this Agreement.

 

(b)                                 No Group Company has any Financial Indebtedness outstanding other than as permitted pursuant to Clause 21.9 (Financial Indebtedness).

 

18.17      Conditional Security Documents

 

The Conditional Security Documents and the Intercreditor Agreement contain the entirety of the transactions entered into between the parties thereto and contemplated thereby and there are no other arrangements between any of the parties to the Conditional Security Documents in respect of the transaction contemplated thereby and no other declaration or act which modifies or supersedes any of the terms of a Conditional Security Document exists.

 

18.18      Environmental claim

 

No Environmental Claim has been commenced where that claim would be reasonably likely to have a Material Adverse Effect.

 

18.19      Intellectual Property

 

It and each of its Subsidiaries:

 

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

 

(b)                                 does not, in carrying on its business, infringe any Intellectual Property of any third party; and

 

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

 

in each case where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

18.20      Shares

 

The shares of any Group Company which are subject to the Conditional Security are fully paid (except for the shares of Sappi MagnoStar GmbH) and not subject to any option to purchase or similar rights. The constitutional documents of companies whose shares are subject to the Conditional Security do not and could not reasonably be expected to restrict or inhibit any transfer of those shares on creation or enforcement of the Conditional Security.

 

18.21      Group Structure Chart

 

(a)                                 The Group Structure Chart is true, complete and accurate in all material respects and shows each Group Company, including current name, its jurisdiction of incorporation and/or establishment, and indicates whether a company is dormant or is not a company with limited liability.

 

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(b)                                 The accompanying list of shareholders of each Obligor (other than from the Company) which has been disclosed to the Finance Parties on or prior to the date of this Agreement is true, complete and accurate as at the date it is given.

 

18.22      Centre of main interests and establishments

 

For the purpose of The Council of the European Union Regulation No. 1346/2000 on Insolvency Proceedings (the Regulation), each Obligor having its registered office in a member state of the European Union has its centre of main interest (as that term is used in Article 3(1) of the Regulation) situated in that jurisdiction and it has no “establishment” (as that term is used in Article 2(h) of the Regulation) in any other jurisdiction.

 

18.23      Pensions

 

The pension schemes and pension plans for the Group are operated in accordance with the requirements of applicable law and are fully funded to the extent required by law or otherwise to comply with the requirements of any law applicable in the jurisdiction in which the relevant pension scheme is maintained, in each case, where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

18.24      Taxation

 

(a)                                 It is not (and none of its Subsidiaries is) materially overdue in the filing of any Tax returns and it is not (and none of its Subsidiaries is) overdue in the payment of any material amount in respect of Tax.

 

(b)                                 No claims or investigations are being, or are reasonably likely to be, made or conducted against it (or any of its Subsidiaries) with respect of Taxes such that a liability of, or a claim against, any Group Company is reasonably likely to arise which has, or is reasonably likely to have, a Material Adverse Effect.

 

18.25      Insolvency

 

No:

 

(a)                                 corporate action, legal proceeding or other formal procedure or convening of a meeting described in Clause 23.7 (Insolvency proceedings); or

 

(b)                                 creditor’s process described in Clause 22.8 (Creditor’s process),

 

has been taken or, to the knowledge of the Company, threatened in relation to any Obligor or Material Subsidiary or Sappi Southern Africa and none of the circumstances described in Clause 22.6 (Insolvency) applies to any Obligor or Material Subsidiary or Sappi Southern Africa.

 

18.26      No proceedings pending or threatened

 

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which are reasonably likely to be adversely determined and which, if so determined, are reasonably likely to have a Material Adverse Effect have been started or formally threatened in writing against any Group Company.

 

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18.27      Representations relating to Guarantee by Austrian Guarantors

 

Each Austrian Guarantor makes the following representations and warranties to each Finance Party:

 

(a)                                 it has performed its own independent investigation into the financial and commercial standing, creditworthiness, and legal status of the other Obligors and has not relied on any information from the Agent, any of the Mandated Lead Arranger or any Lender in this respect;

 

(b)                                 any and all transactions entered into by the Austrian Guarantor in connection with the Finance Documents have been entered into on arm’s length terms and for the corporate benefit of the Austrian Guarantor;

 

(c)                                 it has checked and verified using the diligence of a prudent businessman that on the date hereof it is (or would be) in a financial position to comply with its obligations under Clause 17  (Guarantee and indemnity); and

 

(d)                                 the guarantee is entered into in compliance with Austrian Capital Maintenance Rules and against adequate consideration and in consideration for assuming the obligations (Verpflichtungen) and liabilities (Haftungen) under Clause 17  (Guarantee and indemnity), the Guarantor receives an adequate arm’s length guarantee fee (Avalprovision).

 

18.28      Representation relating to the Borrower

 

The Borrower represents and warrants to each Finance Party that it is acting as principal and for its own account and not as an agent or trustee (Treuhänder) or in any other capacity on behalf of any other party.

 

18.29      Certain US laws

 

No Group Company is subject to regulation under the US Investment Company Act of 1940 or under any other US Federal or State statute or regulation limiting its ability to incur indebtedness.

 

18.30      US Economic Sanctions

 

(a)                                 No Group Company nor any affiliate of any Group Company is, or is owned or controlled by, a Sanctioned Person, and no officer, director, or holder is a Sanctioned Person.

 

(b)                                 Except as expressly authorized by OFAC, no Group Company will directly or indirectly use any proceeds of the Loans made hereunder, or lend, contribute or otherwise make available such proceeds to any other person, entity, joint venture or organization (A) to fund or facilitate any agreement, transaction or dealing with or for the benefit of any Sanctioned Person (or involving any property thereof) or involving any Sanctioned Territory, or (B) in any other manner that will result in a violation of Economic Sanctions Law by any person, including any Lender or Agent.

 

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18.31      Good title to assets

 

It and each of its Material Subsidiaries has good, valid and marketable title to, or valid leases and licenses of, or is otherwise entitled to use, all material assets necessary to carry on its business as it is being, and is proposed to be, conducted.

 

18.32      Obligors

 

(a)                                It is (other than the Company) 100 per cent. directly or indirectly beneficially owned by the Company.

 

(b)                                 Each Material Subsidiary is an Obligor.

 

18.33      No immunity in any legal process

 

No Obligor is entitled to immunity from suit, execution, attachment or other legal process in its jurisdiction of incorporation or Austria.

 

18.34      Times when representations made

 

(a)                                 Except as otherwise provided herein, the representations and warranties set out in this Clause 18 are made by each Original Obligor on the Signing Date.

 

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

 

(c)                                  The Repeating Representations and the representations and warranties set out in Clause 18.5 (Validity and admissibility in evidence) and Clause 18.8 (No filing or stamp taxes) are deemed to be made by each Additional Guarantor on the day on which it becomes an Additional Guarantor (or it is proposed that it becomes an Additional Guarantor), by reference to the facts and circumstances then existing.

 

(d)                                 The representation and warranty set out in paragraph (d) of Clause 18.11 (Financial statements) is deemed to be made by each Obligor on the date of supply of each set of financial statements under paragraph (a) of Clause 19.1 (Financial statements) and paragraph (c) of Clause 19.1 (Financial statements).

 

19.          INFORMATION UNDERTAKINGS

 

19.1        Financial statements

 

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

 

(a)                                 as soon as the same become available, but in any event within one hundred and twenty (120) days after the end of each of its financial years the audited consolidated financial statements (including a profit and loss statement, a cash flow statement and balance sheet) of the Group;

 

(b)                                 as soon as the same become available, but in any event within one hundred and eighty (180) days after the end of each of their financial years, the audited unconsolidated financial statements (including a profit and loss statement, a cashflow statement and balance sheet) of each of the Company, the Borrower, SISA and (to the extent it

 

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remains a Group Company) S.D. Warren Company and (if required to be produced by law) each other Obligor for that financial year;

 

(c)                                  as soon as the same become available, but in any event within fourty five (45) days of each Quarter Date, the unaudited consolidated interim report for the Group for the period of three months ending on such Quarter Date; and

 

(d)                                 as soon as the same become available, but in any event within seventy five (75) days of each Quarter Date, the unaudited consolidated interim report for the Borrower for the period of three months ending on such Quarter Date.

 

19.2        Compliance Certificate

 

(a)                                 The Company shall supply to the Agent, with each set of financial statements or interim report of the Group delivered pursuant to paragraphs (a) or (c) of Clause 19.1 (Financial statements), a Compliance Certificate signed by two directors each of whom must be either a director of SISA or a director of the Borrower setting out (in reasonable detail) computations as to compliance with Clause 20 (Financial Covenants) as at the date as at which those financial statements were drawn up and confirmation that no Default is continuing or, if a Default is continuing, specifying that Default and giving reasonable details as to the steps being taken to remedy it.

 

(b)                                 The Compliance Certificate delivered with the financial statements delivered pursuant to paragraph (a) of Clause 19.1 (Financial statements) shall also set out the Material Subsidiaries and show in reasonable detail the computations for determination thereof.

 

(c)                                  The Company shall supply to the Agent with the interim report delivered pursuant to paragraph (d) of Clause 19.1 (Financial statements), a Compliance Certificate signed by two directors of the Borrower setting out in reasonable detail the computations for determination and compliance with the Guarantor Coverage Test including details of the EBITDA and consolidated gross assets of Guarantors which are members of the Guarantor Coverage Group as a percentage of the EBITDA and consolidated gross assets of the Guarantor Coverage Group.

 

19.3        Requirements as to financial statements

 

(a)                                 Each set of financial statements of the Group delivered by the Company pursuant to paragraphs (a) or (c) of Clause 19.1 (Financial statements) shall be certified by two directors of the Company as fairly representing the financial condition of the Group as at the date as at which those financial statements were drawn up.

 

(b)                                 The Company shall procure that each set of financial statements or interim report delivered pursuant to Clause 19.1 (Financial statements) is prepared using the Applicable Accounting Principles for those financial statements or interim report unless, in relation to any set of financial statements or interim report, it notifies the Agent that there has been a material change in GAAP, or the accounting practices or reference periods and its auditors deliver to the Agent:

 

(i)                                     a description of any change necessary for those financial statements to reflect the Applicable Accounting Principles; and

 

(ii)                                  sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause 20

 

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(Financial Covenants) has been complied with and make an accurate comparison between the financial position indicated in those financial statements or interim report and the Original Financial Statements.

 

The reference in Clause 20.3 (Financial testing and Adjustments) to each of the financial statements and interim reports delivered pursuant to this Clause 19 (Information Undertakings) shall be construed as a reference to such financial statements and interim reports as adjusted to reflect the Applicable Accounting Principles.

 

(c)                                  If the Company notifies the Agent of a change in accordance with paragraph (b) above then the Company and Agent shall enter into negotiations in good faith with a view to agreeing:

 

(i)                                     whether or not the change might result in any material alteration in the commercial effect of any of the terms of this Agreement; and

 

(ii)                                  if so, any amendments to this Agreement which may be necessary to ensure that the change does not result in any material alteration in the commercial effect of those terms.

 

(d)                                 If any amendments are agreed in accordance with this paragraph (c) they shall take effect and be binding on each of the Parties in accordance with their terms.

 

19.4        Information: miscellaneous

 

(a)                                 Each Obligor shall supply to the Agent (in sufficient copies for all Lenders, if the Agent so requests):

 

(i)                                     evidence that the auditors of the Company have reviewed the financial covenant calculations in each Compliance Certificate delivered with the annual consolidated financial statements of the Group and have issued an agreed upon procedures report in respect of such calculations in the terms of the international standard on related services (ISRS 4400) by no later than the date of the release of the annual report of the Group in respect of that financial year;

 

(ii)                                  an annual update (comprising the management case and bank case three year forecasts for the Group) (the Annual Update) by no later than the date which is sixty (60) days after the beginning of each financial year of the Company;

 

(iii)                               all documents dispatched by it to its shareholders (or any class of them) or its creditors generally (or any class of them) at the same time as they are dispatched, taking into account the Stamp Duty Guidelines;

 

(iv)                              promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings (including an Environmental Claim) which are formally threatened in writing pending or current against any Group Company which are reasonably likely to be adversely determined and which, if so determined, are reasonably likely to have a Material Adverse Effect;

 

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(v)                                 promptly, such further information regarding the Charged Property, financial condition, business and operations of the Group as any Lender (through the Agent) may reasonably request; and

 

(vi)                              any information requested by OeKB (via the Agent).

 

(b)                                 The Company shall ensure that the chief financial officer or the group treasurer of the Group participate in an annual presentation (which may be by way of conference call) on the Group to the Lenders.

 

19.5        Notification of default

 

(a)                                 Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless the Agent has received such notification from another Obligor).

 

(b)                                 Promptly upon a request by the Agent, the Company shall supply to the Agent a certificate signed by a director or senior officer on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

 

19.6        Notification of Security Trigger Event

 

(a)                                 Each Obligor shall notify the Agent of any Security Trigger Event (and the steps, if any, being taken in connection therewith) promptly upon becoming aware of its occurrence (unless the Agent has received such notification from another Obligor).

 

(b)                                 Promptly upon a request by the Agent, the Company shall supply to the Agent a certificate signed by a director or senior officer on its behalf certifying that no Security Trigger Event has occurred (or if a Security Trigger Event has occurred, specifying the Security Trigger Event and the steps, if any, being taken in connection therewith).

 

19.7        Notification of Conditional Security changes

 

Each Obligor shall notify the Agent of any material change to any Conditional Security promptly upon becoming aware of its occurrence (unless the Agent has received such notification from another Obligor).

 

19.8        Change in Material Subsidiaries

 

The Company shall set out in the Compliance Certificate supplied with each set of financial statements delivered pursuant to paragraph (a) of Clause 19.1 (Financial statements) the identity and details of the Material Subsidiaries.

 

19.9        “Know your customer” checks

 

(a)                                 If:

 

(i)                                     the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

 

(ii)                                  any change in the status of an Obligor after the date of this Agreement; or

 

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(iii)                               a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

 

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

 

(b)                                 Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

 

19.10      Websites

 

(a)                                 The Company may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the Website Lenders) who accept this method of communication by posting this information onto an electronic website designated by the Company and the Agent (the Designated Website) if:

 

(i)                                     the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;

 

(ii)                                  both the Company and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and

 

(iii)                               the information is in a format previously agreed between the Company and the Agent.

 

If any Lender (a Paper Form Lender) does not agree to the delivery of information electronically then the Agent shall notify the Company accordingly and the Company shall supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form. In any event the Company shall supply the Agent with at least one copy in paper form of any information required to be provided by it.

 

(b)                                 The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Company and the Agent.

 

(c)                                  The Company shall promptly upon becoming aware of its occurrence notify the Agent if:

 

(i)                                     the Designated Website cannot be accessed due to technical failure;

 

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(ii)                                  the password specifications for the Designated Website change;

 

(iii)                               any new information which is required to be provided under this Agreement is posted onto the Designated Website;

 

(iv)                              any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

 

(v)                                 The Company becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

 

If the Company notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by the Company under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.

 

(d)                                 Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website. the Company shall comply with any such request within 10 (ten) Business Days.

 

20.                               FINANCIAL COVENANTS

 

20.1                        Financial covenants

 

The Company shall ensure that:

 

(a)                                 the ratio of EBITDA to Consolidated Net Interest Expense as at the end of the Relevant Period ending on the last day of each Quarter specified in Column A shall not be less than the ratio specified opposite the date in Column B below:

 

	
Column A
   (last day of the relevant Quarter)
    	
 
    	
Column B
    
	
March 2012
    	
 
    	
2.00   : 1
    
	
June 2012
    	
 
    	
2.00   : 1
    
	
September 2012
    	
 
    	
2.00   : 1
    
	
December 2012
    	
 
    	
2.00   : 1
    
	
March 2013
    	
 
    	
2.00   : 1
    
	
June 2013
    	
 
    	
2.00   : 1
    
	
September 2013
    	
 
    	
2.00   : 1
    
	
December 2013
    	
 
    	
2.00   : 1
    
	
March 2014
    	
 
    	
2.25   : 1
    
	
June 2014
    	
 
    	
2.25   : 1
    
	
September 2014
    	
 
    	
2.50   : 1
    
	
December 2014
    	
 
    	
2.50   : 1
    

 

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Column A
   (last day of the relevant Quarter)
    	
 
    	
Column B
    
	
March 2015
    	
 
    	
2.50   : 1
    
	
June 2015
    	
 
    	
2.50   : 1
    
	
September 2015
    	
 
    	
2.50   : 1
    
	
December 2015
    	
 
    	
2.50   : 1
    
	
March 2016
    	
 
    	
2.50   : 1
    
	
June 2016
    	
 
    	
2.50   : 1
    
	
September 2016
    	
 
    	
2.50   : 1
    
	
December 2016
    	
 
    	
2.50   : 1
    
	
March 2017
    	
 
    	
2.50   : 1
    
	
June 2017
    	
 
    	
2.50   : 1
    

 

(b)                                 the ratio of Net Debt as at the end of any Relevant Period ending on the last day of each Quarter specified in Column A below to EBITDA for the Relevant Period shall not exceed the ratio specified opposite the date in Column B below:

 

	
Column A
   (last day of the relevant Quarter)
    	
 
    	
Column B
    
	
March 2012
    	
 
    	
4.50   : 1
    
	
June 2012
    	
 
    	
4.50   : 1
    
	
September 2012
    	
 
    	
4.50   : 1
    
	
December 2012
    	
 
    	
4.50   : 1
    
	
March 2013
    	
 
    	
4.50   : 1
    
	
June 2013
    	
 
    	
4.50   : 1
    
	
September 2013
    	
 
    	
4.50   : 1
    
	
December 2013
    	
 
    	
4.50   : 1
    
	
March 2014
    	
 
    	
4.25   : 1
    
	
June 2014
    	
 
    	
4.25   : 1
    
	
September 2014
    	
 
    	
4.00   : 1
    
	
December 2014
    	
 
    	
4.00   : 1
    
	
March 2015
    	
 
    	
3.75   : 1
    
	
June 2015
    	
 
    	
3.75   : 1
    
	
September 2015
    	
 
    	
3.75   : 1
    
	
December 2015
    	
 
    	
3.75   : 1
    
	
March 2016
    	
 
    	
3.75   : 1
    
	
June 2016
    	
 
    	
3.75   : 1
    

 

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Column A
   (last day of the relevant Quarter)
    	
 
    	
Column B
    
	
September 2016
    	
 
    	
3.75   : 1
    
	
December 2016
    	
 
    	
3.75   : 1
    
	
March 2017
    	
 
    	
3.75   : 1
    
	
June 2017
    	
 
    	
3.75   : 1
    

 

(c)                                  the percentage of Net Debt as at the end of any Relevant Period to Total Capitalisation as at the end of the same Relevant Period shall not exceed 65 per cent.

 

20.2                        Financial definitions

 

Consolidated Net Interest Expense means, without double counting, in relation to any Relevant Period, the aggregate of:

 

(a)                                 all interest, commissions, fees, discounts, prepayment fees, provisions and other financing charges (for the avoidance of doubt, excluding any fees that could, in good faith, be described as up-front fees or arrangement fees in connection with this Facility), payable by any Group Company to any person who is not a Group Company in respect of that period;

 

(b)                                 all amounts payable by any Group Company in respect of that period under any interest rate protection agreement (less any amounts receivable by any Group Company in respect of that period under any interest rate protection agreement); and

 

(c)                                  the interest element of all rentals or, as the case may be, other amounts payable in respect of that period under any finance lease entered into by any Group Company,

 

less any:

 

(d)                                 interest receivable (other than interest receivable from Group Companies) by Group Companies and ignoring any foreign currency and fair value adjustments; and

 

(e)                                  breakage costs associated with the early repayment of debt obligations.

 

EBITDA means, in respect of any period, the consolidated profit on ordinary activities of the Group before interest, taxation and Special Items (if applicable) for such period, but adjusted, without double counting:

 

(a)                                 by adding back depreciation for such period;

 

(b)                                 by adding back any amount amortised in that period against the consolidated profit and loss account of the Group;

 

(c)                                  by adding back any carbon credit sales tax credits and alternative fuel tax credits for such period to the extent receivable in cash;

 

(d)                                 by adding back any non-cash compensation charge (including such charge arising from any grant for the issuance of stock options or other equity based awards or any black empowerment regulation) for such period; and

 

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(e)                                  by excluding any changes in charges associated with employee benefits as a result of changes to IAS 19 Employee Benefits or similar accounting pronouncement after the date of this Agreement.

 

Net Debt means the aggregate, on a consolidated basis, of all obligations of the Group Companies for or in respect of Financial Indebtedness at that time including the capital element of all rentals or, as the case may be, other payments payable under any finance lease entered into by the Group, less cash and cash equivalents as defined in IAS 7.6. and less any other funds not regarded as cash and cash equivalents as defined in IAS 7.6 which a Group Company is restricted from using for any other purpose other than the repayment of Financial Indebtedness under a securitisation programme in place with a Group Company.

 

Relevant Period means, subject to Clause 20.3 (Financial testing and Adjustments) each period of four consecutive Quarters ending on a Quarter Date.

 

Special Items means any extraordinary, exceptional or unusual gain, loss or charge on the disposal of property, investments and businesses, asset impairments, financial impacts of natural disasters (including fire, flood and storm and related events) and non-cash gains or losses on the price fair value adjustment of plantations or any charges, or reserves directly related to any restructuring, redundancy, integration or severance or any expenses, charges reserves or other transaction costs directly related to acquisitions, this Facility or any Broad-Based Black Economic Empowerment Act 53 of 2003 transaction.

 

Total Capitalisation means the sum of (a) Net Debt and (b) total shareholders’ equity as shown in the most recent consolidated accounts of the Company delivered in accordance with Clause 19.1 (Financial Statements).

 

20.3                        Financial testing and Adjustments

 

(a)                                 With respect to the financial covenant set out in paragraph (b) of Clause 20.1 (Financial covenants), Net Debt shall be tested against the Net Debt as at the end of the relevant Quarter Date and EBITDA will be tested on a rolling aggregate basis for the immediately preceding 12 months ending on each of the dates specified in Column A.

 

(b)                                 The financial covenants set out in Clause 20.1 (Financial covenants) shall be tested by reference to each of the financial statements and interim reports delivered pursuant to Clause 19 (Information Undertakings).

 

(c)                                  With respect to the financial covenant set out in paragraph (b) of Clause 20.1 (Financial covenants), the exchange rate used in relation to Net Debt as at the end of any Relevant Period ending on the last day of any Quarter shall be the average exchange rate used for EBITDA for the Relevant Period ending on the last day of that Quarter.

 

(d)                                 With respect to calculating the financial covenant set out in paragraph (c) of Clause 20.1 (Financial covenants), the exchange rate used in relation to Net Debt as at the end of any Relevant Period ending on the last day of any Quarter shall be the exchange rate used in the relevant financial statements on the last day of such Relevant Period.

 

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20.4                        Accounting terms

 

(a)                                 All accounting expressions which are not otherwise defined in this Agreement shall be construed in accordance with GAAP.

 

(b)                                 The Parties agree that at the time any determination is to be made, any obligations, earnings or expenses of the Company or its Subsidiaries, either existing on the Signing Date or created prior to any re-characterisation described below (or any refinancings thereof):

 

(i)                                     (A) that were not included in the consolidated balance sheet of the Company or Consolidated Net Interest Expense calculation prepared in accordance with Applicable Accounting Principles as finance lease obligations or expenses (as applicable) and (B) that are subsequently recharacterised as finance lease obligations or expenses (as applicable), solely due to a change in GAAP or accounting treatment, shall for the purposes of calculating the financial covenants set out in Clause 20.1 (Financial covenants) and Consolidated Net Interest Expense and for the purposes of Clause 21.7 (Negative Pledge) and Clause 21.9 (Financial Indebtedness) not be treated as finance lease obligations or Financial Indebtedness  or Sappi Southern Africa Indebtedness or expenses as the case may be; and

 

(ii)                                  (A) that were included for the purposes of calculating EBITDA in accordance with Applicable Accounting Principles and (B) that are subsequently excluded from the calculation of EBITDA as a result of a recharacterisation of an operating lease as a finance lease solely due to a change in GAAP or accounting treatment, shall be included for the purposes of calculating EBITDA.

 

20.5                        Pro-forma calculations

 

For purposes of calculating the financial covenants set out in clause 20.1 (Financial covenants) for such period:

 

(a)                                 if any member of the Group acquires any (or part of any) company, business or undertaking (an Acquired Business) during a Relevant Period which ends less than 12 months after completion of that acquisition (and is not subsequently sold, transferred or otherwise disposed of by any member of the Group during such Relevant Period), the earnings before interest, tax depreciation and amortization (calculated using the principles set out in Clause 20 (Financial Covenants) for the calculation of EBITDA) of the Acquired Business (or part thereof) will be deemed included with those of the rest of the Group for the full duration of the Relevant Period as if the Acquired Business (or part thereof) had been acquired at the start of the Relevant Period (in each case, without double-counting and calculated on the same basis as the Group’s results, mutatis mutandis, except to the extent that equivalent figures for the 12-month period prior to such acquisition are not available, in which case the calculation shall be made by annualising the amount thereof by reference to each of the first three completed Financial Quarters ending after the date of such acquisition);

 

(b)                                 if any member of the Group disposes of any (or part of any) company, business or undertaking (Sold Business) for each Relevant Period which ends less than 12 months after completion of that disposal, the earnings before interest, tax depreciation and amortization (calculated using the principles set out in Clause 20 (Financial 

 

72

 

                                                Covenants) for the calculation of EBITDA) of that company (or part thereof) will be deemed excluded from those of the rest of the Group for the full duration of the Relevant Period as if that company (or part thereof) was not a member of the Group at the start of the Relevant Period; and

 

(c)                                  the Consolidated Net Interest Expense and Net Debt will be adjusted to reflect the assumption or repayment of debt relating to any Acquired Business or Sold Business as though such assumption or repayment had occurred at the start of the Relevant Period,

 

provided that in the case of an acquisition or disposal of a minority holding in any company, business or undertaking, the financial covenants will only be adjusted to reflect the percentage ownership acquired or disposed of by that member of the Group.

 

21.                               GENERAL UNDERTAKINGS

 

The undertakings in this Clause 21 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

21.1                        Authorisations

 

Each Obligor shall promptly:

 

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

 

(b)                                 on demand, supply certified copies to the Agent of:

 

any Authorisation (including without limitation, all SARB Approvals) in each case required to:

 

(i)                                     enable it to perform its obligations under the Finance Documents;

 

(ii)                                  to ensure the legality, validity and (subject to the Reservations) enforceability or admissibility in evidence of each Finance Document; and

 

(iii)                               carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

21.2                        Compliance with laws

 

Each Obligor shall (and shall procure that each Group Company will):

 

(a)                                 comply with all laws to which it may be subject to the extent that failure so to comply does not have, or is not reasonably likely to have, a Material Adverse Effect; and

 

(b)                                 comply with all terms of the SARB Approvals.

 

21.3                        Environmental Compliance

 

Each Obligor shall (and shall procure that each Group Company will):

 

(a)                                 comply with all Environmental Law;

 

73

 

(b)                                 obtain, maintain and ensure compliance with all requisite Environmental Permits; and

 

(c)                                  implement procedures to monitor compliance with and to prevent liability under any Environmental Law,

 

where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

21.4                        Environmental Claims

 

Each Obligor shall, promptly upon becoming aware of the same, inform the Agent in writing of:

 

(a)                                 any Environmental Claim against any Group Company which is current, pending or threatened; and

 

(b)                                 any facts or circumstances which are reasonably likely to result in any Environmental Claim being commenced or threatened against any Group Company,

 

where the claim is reasonably likely to be adversely determined and, if so determined against that Group Company, has or is reasonably likely to have a Material Adverse Effect.

 

21.5                        Taxation

 

Each Obligor shall (and shall procure that each Group Company will) pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

 

(a)                                 such overdue payment is being contested in good faith;

 

(b)                                 adequate reserves are being maintained for those Taxes and the costs required to contest them which, if required in accordance with GAAP, have been and/or will be (as appropriate) disclosed in its latest financial statements delivered to the Agent under Clause 19.1 (Financial statements); and

 

(c)                                  such payment can be lawfully withheld (or, if unlawfully withheld, can be so withheld subject only to a fine which does not have or is not reasonably likely to have a Material Adverse Effect) and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

 

21.6                        Pensions

 

Each Obligor shall, (and shall procure that each Group Company will) ensure that all pension schemes and pension plans operated by the Group are operated in accordance with the requirements of applicable law and are fully funded to the extent required by law in each case, where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

21.7                        Negative pledge

 

(a)                                 Subject to paragraph (b) below, the Company shall not (and shall ensure that no other Group Company will) create or permit to subsist any Security over any of its assets other than:

 

(i)                                     any Security created under any Finance Document;

 

74

 

(ii)                                  any Security created under any Conditional Security Document;

 

(iii)                               any Security arising by operation of law or in the ordinary course of trade;

 

(iv)                              any Security granted in the ordinary course of trade over accounts created pursuant to any deposit or retention of purchase price arrangements;

 

(v)                                 any netting or set-off arrangement entered into by any Group Company in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances of Group Companies;

 

(vi)                              any Security over an asset of a Group Company established to hold assets of any share option scheme of the Group securing any loan from a Group Company to finance the acquisition of such assets;

 

(vii)                           any Security over an asset of a Group Company, or any company which becomes a Group Company, to secure Financial Indebtedness incurred by such company for the purpose of purchasing that asset or of refinancing any such Financial Indebtedness where recourse for that Financial Indebtedness is limited solely to such Security, provided that such Security secures Financial Indebtedness, the aggregate outstanding principal amount of which does not exceed EUR 50,000,000 (or its equivalent in any currency or currencies) at any time;

 

(viii)                        any Security over treasury shares in a Group Company which have been purchased pursuant to a share buy-back scheme;

 

(ix)                              any Security over or affecting any property or asset of a Group Company after the date of this Agreement, where the Security is created prior to the date on which that company becomes a Group Company, if:

 

(A)                               the Security was not created in contemplation of the acquisition of that company;

 

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

 

(C)                               the Security is removed or discharged within three months of that company becoming a Group Company;

 

(x)                                 any Security over or affecting any property or asset acquired by a Group Company after the date of this Agreement if:

 

(A)                               the Security was not created in contemplation of the acquisition of that asset by a Group Company;

 

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

 

(C)                               the Security is removed or discharged within three months of the date of acquisition of such asset;

 

(xi)                              any Security to be listed in Schedule 2 (Existing Security and Guarantees) of the Side Letter where the principal amount secured has not been increased 

 

75

 

                                                since the date of this Agreement unless expressly permitted by the terms of this Agreement;

 

(xii)                           any Security granted by a Group Company over trade receivables as part of any invoice discounting, factoring or securitisation arrangement which trade receivables have a maturity of less than three hundred and sixty four (364) days where the aggregate principal amount of Financial Indebtedness secured by such Security does not exceed EUR 600,000,000 (or its equivalent in any currency or currencies) provided that to the extent security created pursuant to paragraph (xvi) below is security for a securitisation, the amount referred to herein shall be decreased by the principal amount of the securitisation secured by such Security;

 

(xiii)                        any Security granted by a Group Company (other than an Obligor) in favour of another Group Company or Security granted by an Obligor in favour of another Obligor, provided that no Non-Obligor Chargor or member of the Guarantor Coverage Group may grant any Security in favour of, or for the benefit of, a Sappi Southern Africa Group Company;

 

(xiv)                       any retention or extended retention of title, hire purchase or conditional sale arrangements or other arrangements having the same effect and rights of set-off arising in the ordinary course of trade with suppliers of goods and services to any Group Company and if arising as a result of any default or omission by any Group Company, which does not subsist for a period of more than ninety (90) days;

 

(xv)                          any Security granted with the prior consent of the Majority Lenders;

 

(xvi)                       any Security granted in favour of a Senior Creditor to the extent that such Security secures all Senior Creditors on a pari passu basis and is otherwise permitted under the terms of the Intercreditor Agreement, provided that (i) a Security Trigger Event has occurred, as a consequence an Intercreditor Agreement Accession has occurred and the Lenders have become Senior Creditors secured on a pari passu basis or (ii) an Intercreditor Agreement Accession has otherwise occurred and the Lenders have become Senior Creditors secured on a pari passu basis;

 

(xvii)                    any Bond Only Security (as defined in the Intercreditor Agreement); and

 

(xviii)                 any Security not falling within any of paragraphs (i) to (xvii) above over an asset which secures indebtedness, the principal amount of which (when aggregated with the principal amount of any other indebtedness which has the benefit of Security given by any Group Company (other than Security falling within paragraphs (i) to (xvii) above inclusive)) does not exceed EUR 100,000,000 (or its equivalent in any currency or currencies) at any time.

 

(b)                                 The Company shall procure that no Sappi Southern Africa Group Company will create or permit to subsist any Security over any of its assets for Sappi Southern Africa Group Indebtedness other than Security permitted under sub-paragraphs (ii) (arising by operation of law only), (iv), (viii), (ix), (x), (xi), (xii), (xiv) or (xviii) of paragraph (a) above.

 

76

 

21.8                        Disposals

 

(a)                                 Subject to paragraph (b) below, the Company shall not (and shall ensure that no other Group Company will), enter into a Disposal other than a Disposal:

 

(i)                                     made in the ordinary course of the day to day business of a Group Company;

 

(ii)                                  of any assets by any Obligor to another Obligor;

 

(iii)                               of any assets by any Group Company which is not an Obligor to another Group Company;

 

(iv)                              of assets by an Obligor after the Signing Date to another Group Company which is not an Obligor provided that the aggregate of the fair market value consideration for such assets does not, when aggregated with the fair market value consideration for any other assets disposed of by an Obligor after the Signing Date to a Group Company which is not an Obligor falling within this paragraph, exceed EUR 50,000,000 (or its equivalent in any currency or currencies);

 

(v)                                 of cash on terms not otherwise prohibited by this Agreement;

 

(vi)                              of assets (other than shares, businesses, real property (excluding forestry plantations) and intellectual property) in exchange on arm’s length terms for other assets comparable or superior as to type and quality and of the same or superior value;

 

(vii)                           of an asset which is obsolete for the purpose for which such an asset is normally utilised;

 

(viii)                        to which the Majority Lenders have given their prior consent;

 

(ix)                              occurring directly as a result of any arrangement permitted by Clause 21.7 (Negative pledge) to the extent such arrangement constitutes a Disposal;

 

(x)                                 occurring directly as a result of any arrangement permitted by Clause 21.13 (Loans and Guarantees) to the extent that any such arrangement constitutes a Disposal;

 

(xi)                              occurring directly as a result of any sale and leaseback transaction where the aggregate principal amount of Financial Indebtedness to which all such sale and leaseback transactions relate does not exceed EUR 100,000,000 (or its equivalent in any currency or currencies) at any time;

 

(xii)                           to another Group Company as part of a merger permitted pursuant to Clause 21.10 (Merger);

 

(xiii)                        of assets compulsorily acquired by any governmental authority or of assets as a result of valid and adjudicated or settled claims made pursuant to the Restitution of Land Rights Act, Act 22 of 1994 provided just and equitable compensation is received as a result of such Disposal;

 

(xiv)                       which constitutes a Permitted Lereko Disposal;

 

77

 

(xv)                          which constitutes a Permitted SMF Plantation Disposal;

 

(xvi)                       of receivables occurring directly as a result of any invoice discounting, factoring or securitisation arrangement permitted pursuant to Clause 21.9 (Financial Indebtedness); and

 

(xvii)                    (not falling within subparagraphs (i) to (xvii) above inclusive) which, does not result in the gross book value of all the assets the subject of all such Disposals made after the Signing Date, exceeding in aggregate 5 per cent. of the total gross assets of the Group (as at the date of this Agreement).

 

(b)                                 Any Disposal by a Group Company (the Transferor) to another Group Company (the Transferee) of an asset subject to Conditional Security which is otherwise permitted under paragraph (a) above shall only be permitted where either:

 

(i)                                     such Disposal is made subject to the existing Conditional Security granted by the Transferor and prior to the Disposal the Agent confirms it is either satisfied that, or receives advice from counsel in form and substance reasonably satisfactory to it (subject to customary exceptions and qualifications) confirming that:

 

(A)                               such Conditional Security will continue in full force and effect following the Disposal and its ranking and validity will not be impaired in any material respect as a consequence of such Disposal; and

 

(B)                               such Conditional Security will continue to secure an amount no less than that secured prior to the Disposal; or

 

(I)                                   the Transferee grants equivalent Security over the relevant asset (the Replacement Security) and prior to the Disposal:

 

(II)                              the Agent confirms that the Replacement Security is in form and substance satisfactory to it (acting reasonably); and

 

(III)                         the Agent receives advice from counsel in form and substance reasonably satisfactory to it (subject to customary exceptions and qualifications) confirming that the Replacement Security:

 

(aa)                          is valid, binding and enforceable and has an equivalent or better ranking to the Conditional Security granted by the Transferor;

 

(bb)                          secures an amount no less than that secured by the Conditional Security granted by the Transferor; and

 

(cc)                            is not subject to (aa) any limitation or imperfection in any material respect which the Conditional Security granted by the Transferor was not subject to, or (bb) any new hardening period, in each case, in equity or at law,

 

78

 

provided that the additional requirements of this paragraph (b) shall not apply where the Disposal is of inventory in the ordinary course of intra-group dealings for the purpose of facilitating the Transferee’s operational use of such inventory.

 

21.9                        Financial Indebtedness

 

(a)                                 The Company shall ensure that no Group Company (other than a Sappi Southern Africa Group Company and each of SISA, the Company and the Borrower (for so long as such entity is an Obligor)) shall incur any Financial Indebtedness other than Financial Indebtedness:

 

(i)                                     under any Finance Document or to be referred to in Schedule 3 (Existing Subsidiary External Indebtedness) of the Side Letter;

 

(ii)                                  any Financial Indebtedness incurred in respect of any derivative or hedging transaction permitted pursuant to Clause 21.18 (Hedging);

 

(iii)                               incurred pursuant to any sale and leaseback transaction where the aggregate principal amount of Financial Indebtedness to which all such sale and leaseback transactions relate does not exceed EUR 100,000,000 (or its equivalent in any currency or currencies) at any time;

 

(iv)                              arising in circumstances permitted in Clause 21.13 (Loans and Guarantees);

 

(v)                                 of any person acquired by a Group Company after the date of this Agreement which is incurred under arrangements in place at the date of acquisition but not incurred or increased or having its maturity date extended in contemplation of, or since, that acquisition, and outstanding only for a period of no longer than three months following the date of acquisition;

 

(vi)                              raised under any current account, overdraft, letter of credit, foreign exchange, SWIFT, and BACS facilities made available by local banks, the aggregate principal amount of which does not exceed EUR 100,000,000 (or its equivalent in any currency or currencies) at any time;

 

(vii)                           arising under any cash pooling or management agreement in the ordinary course of banking arrangements for the purpose of netting debt and credit balances between Group Companies;

 

(viii)                        arising under the Existing Financings, this Facility or the loan by PE Paper Escrow GmbH to the Borrower of the proceeds of the 2009 Bonds;

 

(ix)                              arising under any invoice discounting, factoring or securitisation arrangement where the aggregate principal amount of Financial Indebtedness raised under all such invoice discounting, factoring or securitisation arrangements does not exceed EUR 600,000,000 (or its equivalent in another currency or currencies) at any time;

 

(x)                                 arising under finance leases, the aggregate principal amount of which does not exceed EUR 50,000,000 (or its equivalent in any currency or currencies) at any time;

 

79

 

(xi)                              arising under forward sale agreements, deferred purchase agreements and deferred payment arrangements entered into pursuant to an employee share option scheme, unit trust or management incentive scheme; and

 

(xii)                           not included in paragraphs (i) to (x) above inclusive but which does not exceed, for the Group, EUR 75,000,000 (or its equivalent in any currency or currencies) in aggregate principal amount at any time.

 

(b)                                 The Company shall ensure that the aggregate principal amount of Sappi Southern Africa Group Indebtedness does not exceed South African Rand 6,500,000,000 (or its equivalent in any currency or currencies) at any time.

 

21.10                 Merger

 

The Obligors shall ensure that no Group Company shall enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction other than:

 

(a)                                 an amalgamation, demerger, merger, consolidation or corporate reconstruction of:

 

(i)                                     a Group Company which is not an Obligor or Non-Obligor Chargor with another Group Company so long as any assets distributed as a result of such action are distributed to other Group Companies;

 

(ii)                                  an Obligor (other than the Borrower) where:

 

(A)                               all of the business and assets of that Obligor are distributed as a result of such action are distributed or retained by one or more of the other Obligors;

 

(B)                               the surviving entity is liable for all the obligations of that Obligor; and

 

(C)                               the requirements of paragraph (c)(i) to (iii) below are satisfied in relation to any assets which are subject to Conditional Security distributed as a result of the amalgamation, demerger, merger, consolidation or corporate reconstruction;

 

(b)                                 a merger or amalgamation of PE Paper Escrow GmbH into the Borrower with the Borrower as the surviving entity;

 

(c)                                  a solvent liquidation or reorganisation of a Guarantor (which is not also the Borrower) or Non-Obligor Chargor (the Relevant Group Company) where, in each case, any assets distributed as a result of such solvent liquidation or reorganisation are distributed to an Obligor and if such assets are subject to Conditional Security:

 

(i)                                     the relevant Obligor receiving such assets grants equivalent Security over the assets (the Replacement Security) or, where the Relevant Group Company is a surviving entity, such distribution is made subject to the existing Conditional Security;

 

(ii)                                  in the case of Replacement Security, the Agent confirms that:

 

(A)                               the Replacement Security is in form and substance satisfactory to it (acting reasonably); and

 

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(B)                               it has received advice from counsel in form and substance reasonably satisfactory to it (subject to customary exceptions and qualifications) confirming that the Replacement Security:

 

(I)                                   is valid, binding and enforceable and has an equivalent or better ranking to the Conditional Security granted by the Relevant Group Company;

 

(II)                              secures an amount no less than that secured by the Conditional Security granted by the Relevant Group Company; and

 

(III)                         is not subject to (aa) any limitation or imperfection in any material respect which the Conditional Security granted by the Relevant Group Company was not subject to, or (bb) any new hardening period, in each case in equity or at law; and

 

(iii)                               in the case of a distribution subject to existing Conditional Security, the Agent confirms that it has received advice from counsel in form and substance reasonably satisfactory to it (subject to customary exceptions and qualifications) confirming that:

 

(A)                               such Conditional Security will continue in full force and effect following the distribution or transfer and its ranking and validity will not be impaired in any material respect as a consequence of such distribution or transfer; and

 

(B)                               such Conditional Security will continue to secure an amount no less than that secured prior to the distribution or transfer; or

 

(d)                                 with the prior consent of the Majority Lenders (such consent not to be unreasonably withheld or delayed).

 

21.11                 Change of Business

 

The Obligors shall procure that the business of the Group, taken as a whole, remains the Paper Business.

 

21.12                 Insurance

 

Each Obligor shall procure that each Group Company shall maintain levels of insurance in respect of its assets and business in a manner and to an extent customary for businesses in the same or substantially similar business and location as the Group.

 

21.13                 Loans and Guarantees

 

(a)                                 No Obligor shall (and shall ensure that no other Group Company will) make or permit to remain outstanding any loans or grant any credit, other than:

 

(i)                                     any trade credit extended by any Group Company to its customers on normal commercial terms and in the ordinary course of trade;

 

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(ii)                                  Financial Indebtedness which is referred to in the definition of, or otherwise constitutes, Financial Indebtedness permitted under Clause 21.9 (Financial Indebtedness) (except under paragraph (a)(iv) thereof);

 

(iii)                               a loan made or credit granted by:

 

(A)                               an Obligor to another Obligor; or

 

(B)                               a Group Company which is not an Obligor to another Group Company;

 

(iv)                              any loan made by an Obligor to a Group Company which is not an Obligor and which is made after the date of this Agreement, so long as the aggregate amount of the Financial Indebtedness under any such loans does not, when aggregated with the aggregated amount of Financial Indebtedness guaranteed by the guarantees permitted under paragraph (b)(viii) below exceed EUR 20,000,000 (or its equivalent in any currency or currencies) at any time;

 

(v)                                 a loan made by a Group Company to an employee or director of any Group Company if the amount of that loan when aggregated with the amount of all loans to employees and directors by Group Companies does not exceed EUR 2,000,000 (or its equivalent in any currency or currencies) at any time;

 

(vi)                              any loan made to an employee share option scheme or unit trust or management incentive scheme so long as the aggregate amount of the Financial Indebtedness under any such loans does not, when aggregated with the guarantees permitted under paragraph (b)(x) below exceed EUR 5,000,000 (or its equivalent in any currency or currencies) at any time;

 

(vii)                           any loan made to an employee or director of a Group Company or a Group Company to fund the purchase of shares, or any obligation under a forward sale agreement, deferred purchase agreement or deferred payment arrangement pursuant to an employee share option scheme, unit trust or management incentive scheme;

 

(viii)                        any loan made as part of a vendor financing provided by any Group Company in connection with a share issue by the Company in compliance with the black empowerment regulations, a Permitted Lereko Disposal or a Permitted SMF Plantation Disposal, provided that the aggregate outstanding amount of all such loans when aggregated with the amount of all obligations guaranteed by guarantees referred to in paragraph (b)(xv) below does not exceed EUR 50,000,000 (or it equivalent in any currency or currencies) at any time;

 

(ix)                              any loan of the proceeds of the 2009 Bonds made by PE Paper Escrow GmbH to the Borrower;

 

(x)                                 any intra-group loans that have been entered into before the Signing Date; and

 

(xi)                              any loan (other than a loan made by a Group Company to another Group Company) so long as the aggregate amount of the Financial Indebtedness under any such loans does not exceed EUR 50,000,000 (or its equivalent in any currency or currencies) at any time.

 

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(b)                                 No Obligor shall (and shall ensure that no other Group Company will) incur or allow to remain outstanding any guarantee or indemnity in respect of any obligation of any person, other than:

 

(i)                                     the endorsement of negotiable instruments in the ordinary course of trade;

 

(ii)                                  any performance or similar bond guaranteeing performance by a Group Company under any contract entered into in the ordinary course of business;

 

(iii)                               any guarantee in relation to indebtedness permitted under Clause 21.9 (Financial Indebtedness);

 

(iv)                              any guarantee given in respect of the netting or set-off arrangements permitted under Clause 21.7 (Negative pledge);

 

(v)                                 contained in or granted pursuant to the Finance Documents;

 

(vi)                              any guarantees in place on the date of this Agreement as to be set out in Schedule 2 (Existing Security and Guarantees) of the Side Letter or any renewals or replacements thereof provided that such renewals or replacements does not result in an increase in the principal amount of Financial Indebtedness so guaranteed and continues to relate to Financial Indebtedness outstanding on the date of this Agreement;

 

(vii)                           any guarantee issued by an Obligor in respect of any obligation of another Obligor;

 

(viii)                        any guarantee made by an Obligor to a Group Company which is not an Obligor (and which is made after the date of this Agreement) so long as the aggregate amount of the Financial Indebtedness guaranteed by such guarantee does not, when aggregated with the loans permitted under paragraph (a)(iv) above exceed EUR 20,000,000 (or its equivalent in any currency or currencies) at any time;

 

(ix)                              any guarantee issued by a Group Company which is not an Obligor in respect of any obligation of another Group Company;

 

(x)                                 any guarantee granted to any trustee (Treuhänder) of any employee share option or management incentive or unit trust scheme so long as the aggregate amount of any obligations guaranteed by such guarantee does not, when aggregated with the loans permitted under paragraph (a)(vi) above, exceed EUR 5,000,000 (or its equivalent in any currency or currencies) at any time;

 

(xi)                              any guarantees of any obligations of a Sappi Southern Africa Group Company so long as the aggregate amount of such obligations guaranteed by such guarantees does not exceed EUR 25,000,000 (or its equivalent in any currency or currencies) at any time;

 

(xii)                           any counter-indemnity obligations in respect of bills of exchange provided the aggregate principal amount of the bills of exchange benefiting from such counter-indemnities does not exceed EUR 30,000,000 (or its equivalent in any currency or currencies) at any time;

 

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(xiii)                        any customary indemnity to a purchaser in relation to a Disposal permitted pursuant to Clause 21.8 (Disposals), provided that the maximum potential liability under such indemnity does not exceed the aggregate consideration received by any Group Company for that Disposal;

 

(xiv)                       any guarantee granted by any entity acquired by a Group Company pursuant to an acquisition permitted pursuant to Clause 21.17 (Acquisitions and Joint Ventures) if:

 

(A)                               the principal amount guaranteed has not been increased in contemplation of the acquisition of an entity by a Group Company; and

 

(B)                               the guarantee is removed or discharged within three months of the date of acquisition of such entity;

 

(xv)                          any guarantee given as part of a vendor financing provided by any Group Company in connection with a share issue by the Borrower in compliance with the black empowerment regulations, a Permitted Lereko Disposal or a Permitted SMF Plantation Disposal, provided that the aggregate amount of all such obligations guaranteed by such guarantees when aggregated with the outstanding amount of all loans referred to in paragraph (a)(viii) above does not exceed EUR 50,000,000 (or its equivalent in any currency or currencies) at any time;

 

(xvi)                       any undertaking by the Borrower to inject capital into Sappisure Försökrings AB;

 

(xvii)                    guarantees granted in addition to those permitted by sub-paragraphs (i) to (xvi) above, so long as the aggregate amount of Financial Indebtedness guaranteed by such guarantee does not, when aggregated with the loans permitted under paragraph (a)(xi) above exceed EUR 50,000,000 (or its equivalent in any currency or currencies) at any time.

 

21.14                 Intellectual Property

 

Each Obligor shall (and shall procure that each Group Company will):

 

(a)                                 preserve and maintain the subsistence and validity of the Intellectual Property necessary for the business of the relevant Group Company;

 

(b)                                 use reasonable endeavours to prevent any infringement in any material respect of the Intellectual Property required to conduct the business of any relevant Group Company;

 

(c)                                  make registrations and pay all registration fees and taxes necessary to maintain the Intellectual Property required to conduct the business of any relevant Group Company in full force and effect and record its interest in that Intellectual Property;

 

(d)                                 not use or permit the Intellectual Property required to conduct the business of any relevant Group Company to be used in a way or take any step or omit to take any step in respect of that Intellectual Property which may materially and adversely affect the existence or value of that Intellectual Property or imperil the right of any Group Company to use such property; and

 

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(e)                                  not discontinue the use of the Intellectual Property required to conduct the business of any relevant Group Company,

 

where failure to do so, in the case of paragraphs (a), (b) and (c) above, or, in the case of paragraphs (d) and (e) above, such use, permission to use, omission or discontinuation, is reasonably likely to have a Material Adverse Effect.

 

21.15                 Pari passu ranking

 

Each Obligor shall ensure that its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, including the other Senior Creditors, except for obligations mandatorily preferred by law applying to companies generally and for obligations secured by Security permitted under Clause 21.7 (Negative pledge).

 

21.16                 Most favoured lender clause

 

(a)                                 The Company and the Borrower shall procure that the financial covenants incurred under this Agreement are substantially the same and in any event not less favourable than the financial covenants under the Existing Facility (save in relation to pricing and currency).

 

(b)                                 Further, the Company and the Borrower shall promptly notify the Agent if, following the date of this Agreement, the Company or the Borrower enters into an amendment of the Existing Facility or a refinancing agreement or other replacement instrument of the Existing Facility containing financial covenants more onerous for it or more favourable to the provider of that amendment or refinancing agreement than those contained in this Agreement (save in relation to pricing and currency) together with details of such financial covenants.

 

(c)                                  In case of (b) above, if required by the Agent, the Company and the Borrower undertake to amend (and to procure that the Obligors amend accordingly) the financial covenants of this Agreement to incorporate such financial covenants in this Agreement.

 

(d)                                 In case of an amendment of the Existing Facility or a refinancing agreement of the Existing Facility, each Lender and the Agent as well as the Company and the Borrower shall enter into negotiations in good faith with a view to an amendment of this Agreement in order to implement the same covenants and undertakings of any such amendment of the Existing Facility or the refinancing agreement of the Existing Facility to be applied to this Agreement, however, subject to internal approvals, consent of OeKB and satisfactory documentation.

 

21.17                 Acquisitions and Joint Ventures

 

No Obligor shall (and each Obligor shall ensure that no Group Company will):

 

(a)                                 acquire a company or a business or undertaking (excluding the incorporation of any new entity or the acquisition of a shelf company); or

 

(b)                                 acquire any shares, stocks, securities or other interests in any Joint Venture:

 

where the value of such acquisition when aggregated with the value of all other such acquisitions (including, for the avoidance of doubt, any share buy backs) made by a Group 

 

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Company after the Signing Date would exceed EUR 75,000,000 (or its equivalent in any currency or currencies), other than an acquisition:

 

(i)                                     made pursuant to a Permitted Lereko Disposal or a Permitted SMF Plantation Disposal; and

 

(ii)                                  of any shares, stocks, securities or other interests in any Joint Venture with non-cash consideration where the value of such non-cash acquisition when aggregated with the value of all other such non-cash acquisitions (including, for the avoidance of doubt, any share buy backs) made by a Group Company after the Signing Date would not exceed EUR 75,000,000 (or its equivalent in any currency or currencies).

 

21.18                 Hedging

 

No Obligor shall (and each Obligor shall procure that no Group Company shall) enter into any Treasury Transaction other than any interest, commodity or currency hedging arrangement entered into in the ordinary course of business and not for speculative purposes.

 

21.19                 Access and Investigations

 

If an Event of Default is continuing each Obligor shall (and shall ensure that each Group Company will) permit the Agent and/or accountants or other professional advisers and contractors of the Agent free access at all reasonable times and on reasonable notice at the risk and cost of the relevant Group Company to (a) the premises, assets, books, accounts and records of each Group Company and (b) meet and discuss matters with the senior management of the Group.

 

21.20                 Guarantor Coverage Test

 

(a)                                 If at the end of each Quarter the aggregate of earnings before interest, tax, depreciation and amortization (calculated on the same basis as EBITDA, as defined in Clause 20 (Financial Covenants)) of Guarantors which are members of the Guarantor Coverage Group and the aggregate gross assets of such Guarantors (in each case calculated on an unconsolidated basis and excluding all intra-group items) does not represent 80 per cent. of EBITDA (as defined in Clause 20 (Financial Covenants)) of the Guarantor Coverage Group and consolidated gross assets of the Guarantor Coverage Group (the Guarantor Coverage Test), the Company shall ensure that additional Group Companies accede as Additional Guarantors in accordance with the provisions set out in Clause 24.2 (Additional Guarantors) to comply with the Guarantor Coverage Test.

 

(b)                                 If at the end of each Quarter any Qualifying Subsidiary is not a Guarantor, the Company shall ensure that such Qualifying Subsidiary accedes as an Additional Guarantor in accordance with the provisions set out in Clause 24.2 (Additional Guarantors).

 

(c)                                  For the purposes of paragraph (a), the Guarantor Coverage Test, and for the purposes of paragraph (b), the identity of Qualifying Subsidiaries, shall be determined by reference to the most recent financial statements delivered pursuant to paragraph (c) of Clause 19.1 (Financial statements) and updated from time to time in each Compliance Certificate.

 

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(d)                                 The Company shall only be obliged to perform its obligations under paragraph (a) and (b) above if it is not unlawful for the relevant person to become a Guarantor and that person becoming a Guarantor would not result in personal liability for that person’s directors or other management. Each Obligor must use, and must procure that the relevant person uses, all reasonable endeavours lawfully available to avoid any such unlawfulness or personal liability. This includes agreeing to a limit on the amount guaranteed in relation to the acceding person. The Agent may (but shall not be obliged to) agree to such limit if, in its reasonable opinion, to do so would avoid the relevant unlawfulness or personal liability.

 

21.21                 Ratings

 

The Company shall use reasonable endeavours to ensure that at all times it maintains the Loan Rating and a Group Rating rated by:

 

(a)                                 Standard & Poor’s and Moody’s; or

 

(b)                                 (i) Standard & Poor’s or Moody’s and (ii) Fitch.

 

21.22                 Undertakings relating to Guarantee by Austrian Guarantor

 

(a)                                 The Obligors shall procure that the shareholder(s) of the Austrian Guarantors shall neither increase the stated share capital (Stammkapital) by way of capital increase from free reserves (including a profit carry-forward) (Kapitalerhöhung aus Gesellschaftsmitteln) nor increase any restricted reserves (gebundene Rücklagen) (unless required by Austrian law) but shall pay any funds to be paid to an Austrian Guarantor into the free reserves (ungebundene Rücklagen) of that Austrian Guarantor. Further, the Obligors shall procure that the shareholders of an Austrian Guarantor shall exercise their shareholder rights in such way that the Austrian Guarantor covers any possible balance sheet loss (Bilanzverlust) by dissolving restricted reserves (gebundene Rücklagen) rather than free reserves (ungebundene Rücklagen) to the extent possible pursuant to Austrian law and each Austrian Guarantor shall abide by such requirement when preparing its financial statements.

 

(b)                                 The Obligors (other than the Austrian Guarantors) undertake, subject to Clause 17.8 (Deferral of Guarantors’ Rights), to reimburse the relevant Austrian Guarantor for any payments made by that Austrian Guarantor upon demand from a Finance Party or any other payment made in connection with the guarantee given by that Austrian Guarantor under Clause 17 (Guarantee and indemnity), immediately upon that Austrian Guarantor’s first written demand.

 

21.23                 Dividend restriction

 

The Company shall not declare or pay any dividends (other than scrip or non cash dividends by way of a distribution of equity interests of the Company) where:

 

(a)                                 an Event of Default has occurred and is continuing;

 

(b)                                 the aggregate amount of such dividends would exceed the aggregate amount of 100 per cent. of the net aggregate profits of the Group (after adjusting for Special Items and the tax effects thereon) and (without double counting) the amount of any carbon credit sales tax credits and alternative fuel tax credits to the extent such amounts are received by any member of the Group in cash and deducting (without double counting) the amount of any Special Item tax costs required to be paid in cash); or

 

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(c)                                  the ratio of Net Debt to EBITDA as referred to in paragraph (b) of Clause 20.1 (Financial covenants) calculated on a pro-forma basis specified in the latest Compliance Certificate supplied pursuant to Clause 19.2 (Compliance Certificate) exceeds 4 to 1.

 

21.24                 Arm’s length terms

 

No Obligor shall enter into any transaction with (i) a shareholder of the Company or (ii) a Group Company which is not an Obligor, unless the terms of such transaction are no less favourable to the relevant Obligor than those that could be obtained at the time of the transaction in arm’s-length dealings for fair market value with a person who is not a shareholder of the Company or a Group Company, respectively.

 

21.25                 Preservation of assets

 

Subject to Clause 24.6 (Conditional Security Release), each Obligor shall (and the Company shall ensure that each Group Company will) maintain in good working order and condition (ordinary wear and tear excepted) all of its assets which are subject to the Conditional Security.

 

21.26                 Conditional Security Documents

 

(a)                                 Subject to Clause 24.6 (Conditional Security Release), no Obligor shall (and the Company shall procure that no Group Company will) enter into any agreement, arrangement, declaration or take any other act with respect to the Conditional Security Documents and the transaction contemplated thereunder which modifies or supersedes any of the terms of a Conditional Security Document or the Security granted thereunder, without the prior written consent of the Lenders, unless otherwise permitted under paragraph (d) of Clause 34.3 (Exceptions).

 

(b)                                 From the date of this Agreement and subject to Clause 24.6 (Conditional Security Release), each Obligor shall (and the Company shall procure that each Group Company will) refrain from any agreement, arrangement, declaration or the taking of any other act with respect to the Conditional Security Documents and the transaction contemplated thereunder which would materially impair the position of the Lenders and the Agent in case of an Intercreditor Agreement Accession other than, with respect to Existing Financings only, any confirmation or confirmation agreement entered into with respect to Conditional Security or any junior ranking Security granted over assets that are subject to the Conditional Security).

 

21.27                 Conditional Security

 

(a)                                 Upon the occurrence of a Security Trigger Event,

 

(i)                                     each Obligor shall (and the Company shall procure that each Group Company will) promptly take all steps required, including but not limited to the execution of documents as the Agent may specify and in such form as the Agent may require, in order to effect the Intercreditor Agreement Accession (including but not limited to the delivery of a duly completed Pari Passu Notice (as defined in the Intercreditor Agreement) to the Security Agent) within (A) sixty (60) days of the occurrence of a Downgrade Event or (B) thirty (30) days of the occurrence of a No Rating Event or an Event of Default Event, as applicable;

 

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(ii)                                  each Obligor shall (and the Company shall procure that each Group Company will) promptly take all steps required, including but not limited to the execution of documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Agent may specify and in such form as the Agent may require, in order to effect the Lenders becoming a Senior Secured Party and being effectively secured by the Conditional Security within (A) sixty (60) days of the occurrence of a Downgrade Event or (B) thirty (30) days of the occurrence of a No Rating Event or an Event of Default Event, as applicable;

 

(iii)                               each Obligor shall (and the Company shall procure that each Group Company will) promptly upon the occurrence of such Security Trigger Event provide to the Agent legal opinions of the legal advisers to the Agent and the Lenders regarding any applicable law with respect to the Conditional Security Documents confirming satisfactory to the Agent and the Lenders that each Lender is a Senior Secured Party and is effectively secured by the Conditional Security but in any case within (A) sixty (60) days of the occurrence of a Downgrade Event or (B) thirty (30) days of the occurrence of a No Rating Event or an Event of Default Event, as applicable;

 

(b)                                 In case an Obligor does not comply with its obligations pursuant to this Clause 21.27, each Obligor hereby irrevocably authorises and empowers the Agent (acting upon instruction of the Majority Lenders and on behalf of the Lenders) to take all steps required to fulfil such obligations, including but not limited to the delivery of a duly completed Pari Passu Notice (as defined in the Intercreditor Agreement) to the Security Agent.

 

21.28                 Further assurance

 

To the extent required after an Intercreditor Agreement Accession in relation to the Conditional Security and subject to Clause 24.6 (Conditional Security Release):

 

(a)                                 each Obligor shall (and Company shall procure that each Group Company will) promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Agent may reasonably specify and in such form as the Agent may reasonably require to perfect the Conditional Security created or intended to be created under or evidenced by the Conditional Security Documents (which may include the execution of a mortgage, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Conditional Security) or for the exercise of any rights, powers and remedies of the Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law; and

 

(b)                                 each Obligor shall (and the Company shall procure that each Group Company shall) take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Agent or the Finance Parties by or pursuant to the Finance Documents.

 

21.29                 Limitations in relation to German Obligors

 

(a)                                 Clause 21.7 (Negative  pledge), 21.8 (Disposals), 21.10 (Merger), 21.11 (Change of Business), 21.17 (Acquisitions and Joint Ventures), 21.23 (Dividend  restrictions) (the Relevant Restrictive Undertakings) shall not apply to any Obligor incorporated in 

 

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                                                Germany (a German Obligor) or any of its subsidiaries from time to time which is incorporated in Germany (a German Group Member).

 

(b)                                 The Company shall give the Agent no less than thirty (30) Business Days’ prior written notice of the intention of it or of any German Group Member to carry out any of the acts or take any of the steps which would not be permitted were the Relevant Restrictive Undertaking applicable (but for this Clause 21.29) explaining if and how such steps might affect the financial situation of the Company or the Group, or the Finance Parties’ risk and security position.

 

(c)                                  The Agent shall be entitled within twenty (20) Business Days of receipt of the Company’s notice under paragraph (b) above to request the relevant member of the German Group to supply to the Agent in sufficient copies for the Lenders if reasonably requested any further relevant information in connection with the proposed action or steps referred to in such notice.

 

(d)                                 The Agent shall notify the Company within twenty (20) Business Days of receipt of the Company’s notice under paragraph (b) above or if additional information has been requested by the Agent within the prescribed time, within twenty (20) Business Days of receipt of such information, whether the proposed action or steps under paragraph (b) above is or is, in the reasonable opinion of the Agent, acting on the instructions of the Majority Lenders, likely to have a material adverse consequence for the Finance Parties risk or security position.

 

(e)                                  If the proposed action or step under paragraph (b) above is considered by the Agent (acting in accordance with paragraph (d) above) to have a material adverse consequence for the Finance Parties risk or security position and the relevant member of the Group incorporated in Germany nevertheless takes such action or steps under paragraph (b) above, the Agent shall be entitled to make (and, if so instructed by the Majority Lenders shall make) the declaration, request and/or instruction set out in Clause 22.17 (Acceleration).

 

21.30                 Promissory Notes

 

Upon request by a New Lender, the Borrower shall accept promissory notes issued by such New Lender in the amount and number required for any OeKB Funding in respect of such New Lender.

 

21.31                 Margin Stock

 

No US Group Company will use the proceeds of the Loan directly or indirectly to purchase or carry any Margin Stock issued by a person (i) incorporated under the laws of any State or (ii) whose principal place of business is within a State.

 

22.                               EVENTS OF DEFAULT

 

Each of the events or circumstances set out in Clauses 22.1 to 22.16 inclusive is an Event of Default.

 

22.1                        Non-payment

 

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless:

 

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(a)                                 its failure to pay is caused by:

 

(i)                                     administrative or technical error; or

 

(ii)                                  a Disruption Event; and

 

(b)                                 payment is made within:

 

(i)                                     (in the case of (a)(i) above) three (3) Business Days of its due date; or

 

(ii)                                  (in the case of (a)(ii) above) five (5) Business Days of its due date.

 

22.2                        Financial covenants and other obligations

 

(a)                                 Any requirement of Clause 20 (Financial Covenants), Clause 19.1 (Financial statements) or Clause 19.2 (Compliance Certificate) is not satisfied.

 

(b)                                 A German Obligor or a German Group Member does not comply with a Relevant Restrictive Undertaking after the Agent has confirmed, within the periods set out in Clause 21.29 (Limitations in relation to German Obligors), that it considers the relevant action or step to have material adverse consequences for the Lenders’ risk or security position.

 

22.3                        Other obligations

 

An Obligor or Non-Obligor Chargor does not comply with any provision of the Finance Documents (other than those referred to in Clause 22.1 (Non-payment) and Clause 22.2 (Financial covenants and other obligations) (above) and, if the failure to comply is capable of remedy, it is not remedied within ten (10) Business Days of the earlier of (i) the Agent giving notice to the Company of, and (ii) the Company or the relevant Obligor or Non-Obligor Chargor becoming aware of, the failure to comply.

 

22.4                        Misrepresentation

 

Any representation or statement made or deemed to be made by an Obligor or Non-Obligor Chargor in the Finance Documents or any other document delivered by or on behalf of any Obligor or Non-Obligor Chargor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any respect when made or deemed to be made and where the circumstances making such representation or statement incorrect or misleading are capable of being altered so that such representation or statement is correct or no longer misleading, such circumstances are not so altered within ten (10) Business Days of the earlier of (i) the Agent giving notice to the Company and (ii) the Company or the relevant Obligor or Non-Obligor Chargor becoming aware of such representation or statement being incorrect or misleading.

 

22.5                        Cross default

 

(a)                                 Any Financial Indebtedness of any Group Company is not paid when due and payable nor within any applicable grace period.

 

(b)                                 Any Financial Indebtedness of any Group Company is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of a default or an event of default (however described).

 

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

 

(d)                                 No Event of Default will occur under this Clause 22.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (c) above is less than EUR 20,000,000 (or its equivalent in another currency or currencies).

 

22.6                        Insolvency

 

(a)                                An Obligor, Sappi Southern Africa or a Non-Obligor Chargor (other than Sappi Austria Vertriebs-GmbH & Co. KG) is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or commences negotiations with one or more of its creditors with a view to rescheduling any class of its indebtedness.

 

(b)                                 A moratorium is declared in respect of any class of indebtedness of an Obligor, Sappi Southern Africa or a Non-Obligor Chargor (other than Sappi Austria Vertriebs-GmbH & Co. KG).

 

(c)                                  An Austrian Obligor or a Non-Obligor Chargor incorporated in Austria (other than Sappi Austria Vertriebs-GmbH & Co. KG) is declared (or declares itself) insolvent, is in a situation of illiquidity (Zahlungsunfähigkeit), within the meaning of § 66 of the IO, as interpreted by Austrian courts, or over indebtedness (Überschuldung), within the meaning of § 67 of the IO, as interpreted by Austrian courts, is presumably unable to pay its debts as they fall due (drohende Zahlungsunfähigkeit), within the meaning of § 167(2) of the IO, as interpreted by Austrian courts or the preconditions for the opening of reorganisation proceedings (Reorganisationsbedarf) under the URG, as set out in the URG and interpreted by Austrian courts, have been satisfied in respect of the Austrian Guarantor or relevant Non-Obligor Chargor (save for any solvent reorganisation previously approved by the Majority Lenders in writing, such approval not to be unreasonably withheld).

 

(d)                                 Without limitation to paragraphs (a) and (b) above, in relation to a German Guarantor or a Non-Obligor Chargor incorporated in Germany, the following events occur:

 

(i)                                     it is unable to pay its debts as they fall due (zahlungsunfähig) within the meaning of section 17 of the German Insolvency Code (Insolvenzordnung) or is subject to imminent illiquidity (drohende Zahlungsfähigkeit) within the meaning of Section 18 of the German Insolvency Code (Insolvenzordnung);

 

(ii)                                  it is over-indebted (Überschuldung) within the meaning of section 19 of the German Insolvency Code (Insolvenzordnung).

 

22.7                        Insolvency proceedings

 

(a)                                 Any legal proceeding or other formal procedure is taken or applied for or a meeting is convened for the purpose of considering a resolution in relation to:

 

(i)                                     the bankruptcy, the suspension of payments, winding-up, dissolution, liquidation, placing under business rescue, annulment as a legal entity, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of an Obligor, Sappi Southern Africa or a Non-

 

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                                                Obligor Chargor (other than Sappi Austria Vertriebs-GmbH & Co. KG), other than a solvent liquidation or reorganisation of any Obligor or Sappi Southern Africa permitted under Clause 21.10 (Merger);

 

(ii)                                  a general composition, assignment or arrangement with the creditors generally of an Obligor, Sappi Southern Africa or a Non-Obligor Chargor (other than Sappi Austria Vertriebs-GmbH & Co. KG) relating to a general rescheduling of its financial indebtedness;

 

(iii)                               the appointment of a liquidator (other than in respect of a winding up petition which is frivolous or vexatious and which is, in any event, discharged within thirty (30) days of its presentation or in respect of a solvent liquidation or reorganisation of an Obligor or Sappi Southern Africa permitted under Clause 21.10 (Merger)), receiver, administrator, administrative receiver, business rescue practitioner, compulsory manager, a voorlopige bewindvoerder / administrateur  provisoire, a ondernemingsbemiddelaar / médiateur  d’entreprise, a gerechtsmandataris / mandataire de justice, a gedelegeerd  rechter / juge  délégué, a sekwester / séquestre, Insolvenzverwalter or vorläufiger  Insolvenzverwalter  or other similar officer in respect of an Obligor, Sappi Southern Africa or a Non-Obligor Chargor (other than Sappi Austria Vertriebs-GmbH & Co. KG) or all or any part (having an aggregate value of at least EUR 20,000,000 (or its equivalent in another currency or currencies)) of its assets; or

 

(iv)                              enforcement of any Security over all or substantially all of the assets of an Obligor, Sappi Southern Africa or a Non-Obligor Chargor (other than Sappi Austria Vertriebs-GmbH & Co. KG) which is not discharged within thirty (30) days of the relevant legal proceeding or formal procedure being taken; or

 

(b)                                 any analogous procedure or step is taken in any jurisdiction including, without limitation, if an Austrian Obligor or a Non-Obligor Chargor incorporated in Austria (other than Sappi Austria Vertriebs-GmbH & Co. KG) is subject to:

 

(i)                                     any insolvency proceedings (Insolvenzverfahren) commenced pursuant to the IO, unless the application for such proceedings is dismissed within thirty (30) days from (but excluding) the day it is filed (unless dismissed on the ground that the costs of the insolvency proceedings were likely to exceed the assets of such person (Abweisung mangels kostendeckenden Vermögens)); or

 

(ii)                                  any reorganisation proceedings (Reorganisationsverfahren) under the URG (save for any solvent reorganisation previously approved by the Majority Lenders in writing, such approval not to be unreasonably withheld),

 

unless, in relation to sub-paragraphs (i) and (ii) above, the opening of the relevant proceedings is the only action that has occurred; or

 

(c)                                 with respect to any German Guarantor or a Non-Obligor Chargor incorporated in Germany:

 

(i)                                     a petition for insolvency proceedings in respect of its assets (Antrag auf Eröffnung eines Insolvenzverfahrens) is filed or threatened to be filed (other than threats or filings that the Agent (acting reasonably) is satisfied are frivolous or vexatious);

 

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(ii)                                  any event occurs which constitutes a cause for the initiation of insolvency proceedings (Eröffnungsgrund) as set forth in Section 17 et seq. of the German Insolvency Code (Insolvenzordnung) including such Obligor or Non-Obligor Chargor incorporated in Germany being unable or admitting to being unable to honour its obligations as they fall due (Zahlungsunfähigkeit) or becoming over indebted (Überschuldung) or being imminently illiquid (drohende Zahlungsfähigkeit);

 

(iii)                               the commencing of negotiations with one or more of its creditors with a view to the general readjustment or rescheduling of its indebtedness;

 

(iv)                              an insolvency court taking steps as set out in Section 21 of the German Insolvency Code (Insolvenzordnung); or

 

(v)                                 a court order for commencement of insolvency proceedings (Insolvenzeröffnungsbeschluss) or for rejection of insolvency proceedings due to lack of funds (Abweisungsbeschluss mangels Masse) is made,

 

22.8                        Creditors’ process

 

Expropriation, attachment, sequestration, distress or execution affects any asset or assets of Group Companies having an aggregate value of at least EUR 20,000,000 (or its equivalent in another currency or currencies) and is not discharged within twenty one (21) days.

 

22.9                        Obligor ceasing to be a Subsidiary of the Company

 

(a)                                 After the date of this Agreement, an Obligor (other than the Company) ceases to be a wholly owned Subsidiary of the Company.

 

(b)                                 An Obligor ceases to own at least the same percentage of shares in a Material Subsidiary as on the date of this Agreement.

 

(c)                                  No Event of Default will occur under this Clause 22.9 if any of the events described in (a) or (b) above are a result of a Disposal which is expressly permitted pursuant to the terms of this Agreement.

 

22.10                 Unlawfulness

 

(a)                                 It is or becomes unlawful for an Obligor or a Non-Obligor Chargor to perform any of its obligations under any Finance Document or, subject to the Reservations, any Conditional Security created or expressed to be created or evidenced by the Conditional Security Documents ceases to be effective or any subordination under the Intercreditor Agreement becomes unlawful.

 

(b)                                 Subject to the Reservations, any obligation of any Obligor or Non-Obligor Chargor under any Finance Document is not or ceases to be legal, valid, binding and enforceable and the cessation materially adversely affects the interests of the Lenders taken as a whole under the Finance Documents.

 

22.11                 Repudiation

 

An Obligor or Non-Obligor Chargor rescinds, repudiates or evidences an intention to rescind or repudiate a Finance Document or any of the Conditional Security Documents.

 

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22.12                 Material adverse change

 

Any event or circumstance occurs which has or is reasonably likely to have a Material Adverse Effect.

 

22.13                 Litigation adversely determined

 

Any litigation, arbitration, or administrative proceedings of or before any court, arbitral body or agency are commenced or formally threatened in writing against any Group Company or its assets which are reasonably likely to be adversely determined against that Group Company and if so determined, have, or are reasonably likely to have, a Material Adverse Effect.

 

22.14                 Cessation of business

 

An Obligor or any Material Subsidiary ceases to carry on all or a substantial part of its business (other than as a result of a solvent liquidation or reorganisation of any Obligor or Material Subsidiary permitted under Clause 21.10 (Merger) or any Disposal permitted under Clause 21.8 (Disposals)) and such cessation would result in the Group, as a whole, ceasing to carry on the Paper Business.

 

22.15                 Audit qualification

 

The auditors of the Company or the Borrower qualify the audited annual financial statements of the Company or the Borrower in terms of or in respect of issues which would or could reasonably be expected to be materially adverse to the interests of the Finance Parties under the Finance Documents.

 

22.16                 Intercreditor Agreement

 

After the Intercreditor Agreement Accession,

 

(a)                                 any party to the Intercreditor Agreement (other than a Finance Party or an Obligor) fails to comply with the provisions of, or does not perform its obligations under, the Intercreditor Agreement and such failure to comply or non-performance would or could reasonably be expected to be materially adverse to the interests of the Finance Parties under the Finance Documents; or

 

(b)                                 a representation or warranty given by that party in the Intercreditor Agreement is incorrect in any material respect,

 

and, if the non-compliance or circumstances giving rise to the misrepresentation are capable of remedy, it is not remedied within ten (10) Business Days of the earlier of the Agent giving notice to that party or that party becoming aware of the non-compliance or misrepresentation.

 

22.17                 Acceleration

 

On and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders, by notice to the Company:

 

(a)                                 cancel the Total Commitments whereupon they shall immediately be cancelled; and/or

 

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(b)                                 declare that all or part of the Loan, together with accrued interest, and all other amounts accrued under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable.

 

23.                               CHANGES TO THE LENDERS

 

23.1                        Assignments and transfers by the Lenders

 

Subject to this Clause 23, a Lender (the Existing Lender) may:

 

(a)                                 assign (zedieren) any of its rights;

 

(b)                                 transfer by novation and assumption (Vertragsübernahme) any of its rights and obligations; or

 

(c)                                  enter into a sub-participation or similar agreement in relation to this Agreement,

 

to another bank or financial institution or to a trust, fund or other entity which is engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the New Lender).

 

23.2                        Conditions of assignment or transfer

 

(a)                                 The consent of the Borrower is required for an assignment or transfer of a Lender’s Commitment (such consent not to be unreasonably withheld and deemed to be given following five (5) Business Days of the request for consent unless such consent is expressly refused) prior to the date of such assignment or transfer.

 

(b)                                 A Lender shall notify the Borrower if it intends to sub-participate part of its Commitment, such notification to be communicated at least five (5) Business Days prior to the date of the proposed subparticipation.

 

(c)                                  No consent as prescribed in paragraph (a) above or notification as prescribed in paragraph (b) above shall be required, as relevant, in relation to any assignment, transfer or subparticipation of a Lender’s Commitment:

 

(i)                                     to OeKB;

 

(ii)                                  to another Lender or an Affiliate of a Lender; or

 

(iii)                               at a time when an Event of Default is continuing.

 

(d)                                 An assignment or transfer by a Lender of its Commitments under the Facility may be in whole or in part, but if in part shall be in minimum amounts of EUR 5,000,000.

 

(e)                                  An assignment will only be effective on:

 

(i)                                     receipt by the Agent of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender;

 

(ii)                                  receipt by the Agent of written confirmation from OeKB (in form and substance satisfactory to the Agent) that OeKB agrees to (i) the New Lender 

 

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                                                                                                becoming a Lender and (ii) the envisaged transfer of the relevant Commitment by the Existing Lender to the New Lender;

 

(iii)                               as long as the OeKB Funding is in place, receipt by the Agent of written documentation (in form and substance satisfactory to the Agent acting reasonably) that the New Lender (i) has access to the export financing scheme (Exportfinanzierungsverfahren) of OeKB and (ii) is funded on materially the same terms as the Existing Lender;

 

(iv)                              on or following an Intercreditor Agreement Accession, the New Lender entering into the documentation required for it to accede as a party to the Intercreditor Agreement; and

 

(v)                                 performance by the Agent of all “know your customer” or other checks relating to any person that it is required to carry out in relation to such assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.

 

(f)                                   A transfer will only be effective if the New Lender enters into the documentation required for it to accede as a party to the Intercreditor Agreement and if the procedure set out in Clause 23.5 (Procedure for transfer) is complied with.

 

(g)                                  If:

 

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

 

(ii)                                  as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax gross-up and indemnities) or Clause 13 (Increased Costs),

 

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

 

23.3                        Assignment and Transfer Fee

 

Unless the Agent otherwise agrees and excluding an assignment or transfer to an Affiliate of a Lender (unless such Affiliate would, following assignment or transfer, constitute an Austrian Lender or an Austrian Lender would become a Lender in connection with primary syndication of the Facilities), the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for the Agent’s account only) the Assignment and Transfer Fee.

 

23.4                        Limitation of responsibility of Existing Lenders

 

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

 

(i)                                     the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents, including, for the avoidance of doubt, the legal feasibility of an Intercreditor Agreement Accession;

 

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(ii)                                  the financial condition of any Obligor or other person;

 

(iii)                               the performance and observance by any Obligor or other person of its obligations under the Finance Documents or any other documents; or

 

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

 

and any representations or warranties implied by law are excluded.

 

(b)                                 Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

 

(i)                                     has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender or any other Finance Party in connection with any Finance Document; and

 

(ii)                                  will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities and any other person whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

 

(c)                                  Nothing in any Finance Document obliges an Existing Lender to:

 

(i)                                     accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 23; or

 

(ii)                                  support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor or other person of their obligations under the Finance Documents or otherwise.

 

23.5        Procedure for transfer

 

(a)                                 Subject to the conditions set out in Clause 23.2 (Conditions of assignment or transfer) a transfer by novation and assumption (Vertragsübernahme) is effected in accordance with paragraph (c) below when (i) in the case of any New Lender which is not an Austrian Lender, the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender or (ii) in the case of any New Lender which is an Austrian Lender, the Agent receives (x) a duly completed Austrian Transfer Certificate delivered to it by the Existing Lender and (y) the Assignment and Transfer Fee. In the case of any New Lender which is not an Austrian Lender, the Agent shall, subject to paragraph (b) below, within five (5) Business Days after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate and hold it in accordance with Clause 25.17 (Agent to hold original documents).

 

(b)                                 The Agent shall only be obliged to execute a Transfer Certificate or accept an Austrian Transfer Certificate, as the case may be, delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary 

 

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“know your customer” or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

 

(c)                                  On the Transfer Date:

 

(i)                                     to the extent that in the Transfer Certificate and the Austrian Transfer Certificate, as the case may be, the Existing Lender seeks to transfer its rights and obligations under the Finance Documents each of the Obligors and that Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another shall be cancelled (being the Discharged Rights and Obligations);

 

(ii)                                  each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

 

(iii)                               the Agent, the Mandated Lead Arranger and the other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Mandated Lead Arranger and the Existing Lender shall each be released from further obligations to each other under this Agreement;

 

(iv)                              to the extent the Transfer Date occurs on or after an Intercreditor Agreement Accession, the benefit of the Conditional Security shall be maintained in favor of the New Lender through the Security Agent; and

 

(v)                                 the New Lender shall become a Party as a “Lender”.

 

(d)                                 For the purposes of Article 1271 et seq of the Belgian Civil Code, the Parties agree that upon any novation under the Finance Documents, the Conditional Security, guarantees, indemnities and other undertakings created by the Finance Documents shall continue for the benefit of the Finance Parties, their successors, transferees and assignees, as the case may be.

 

23.6        Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 23, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign by way of security or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:

 

(a)                                 any charge, assignment by way of security or other Security to secure obligations to OeKB, a federal reserve or central bank; and

 

(b)                                 in the case of any Lender which is a fund, any charge, assignment by way of security or other Security granted to any holders (or trustee (Treuhänder) or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,

 

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except that no such charge, assignment by way of security or Security shall:

 

(i)                                     release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment by way of Security or Security for the Lender as a party to any of the Finance Documents; or

 

(ii)                                  require any payments to be made by an Obligor or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents.

 

23.7        Pro rata interest settlement

 

If the Agent has notified the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 23.5 (Procedure for transfer) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):

 

(a)                                 on the relevant Transfer Date, any interest or fees accrued in respect of the relevant participation up to but excluding that Transfer Date and which are expressed to accrue by reference to the lapse of time (Accrued Amounts) shall become due and payable to the Existing Lender on that Transfer Date, but payment of the Accrued Amounts shall be deferred (without further interest accruing on them) until the last day of the current Interest Period (or, if the Interest Period is longer than three (3) Months, on the next of the dates which falls at three (3) Monthly intervals after the first day of that Interest Period); and

 

(b)                                 the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts (so that, for the avoidance of doubt, when the Accrued Amounts become payable, those Accrued Amounts will be payable for the account of the Existing Lender, and Clauses 12 (Tax Gross-up and Indemnities) and 13 (Increased Costs) shall apply in relation to a payment of Accrued Amounts as if the Existing Lender were a Lender at the date of the payment).

 

23.8        Copy of Transfer Certificate and Austrian Transfer Certificate

 

The Agent shall, as soon as reasonably practicable after it has accepted and executed a Transfer Certificate or received an Austrian Transfer Certificate and the Assignment and Transfer Fee (as the case may be), send to the Company a copy of such Transfer Certificate or Austrian Transfer Certificate (as the case may be). The Borrower confirms that such delivery of Transfer Certificate or Austrian Transfer Certificate (as the case may be) to the Company shall be considered as a notification of transfer or assignment towards itself.

 

24.          CHANGES TO THE OBLIGORS

 

24.1        Assignments and transfer by Obligors

 

No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

 

24.2        Additional Guarantors

 

(a)                                 Subject to compliance with the provisions of paragraphs (a) and (b) of Clause 19.9 (“Know your customer” checks), the Company may request that any of its wholly

 

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owned Subsidiaries become an Additional Guarantor. The Company shall procure that any other member of the Guarantor Coverage Group which is a Qualifying Subsidiary shall as soon as possible after becoming a Qualifying Subsidiary or being so required, as the case may be, become an Additional Guarantor and shall accede to the Intercreditor Agreement. A member of the Group shall become an Additional Guarantor if:

 

(i)                                     The Company delivers to the Agent a duly completed and executed Accession Letter; and

 

(ii)                                  the Agent has received all of the documents and other evidence listed in Part B of Schedule 2 (Conditions Precedent Required to be delivered by an Additional Guarantor) in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent.

 

(b)                                 The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in Part B of Schedule 2 (Conditions Precedent Required to be delivered by an Additional Guarantor).

 

24.3        Repetition of Representations

 

Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the Repeating Representations and each of the representations set out in Clauses 18.5 (Validity and admissibility in evidence) and 18.8 (No filing or stamp taxes) are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

 

24.4        Resignation of a Guarantor

 

(a)                                 If a Guarantor is subject to a Third Party Disposal, the Company may request that a Guarantor ceases to be a Guarantor by delivering to the Agent a Resignation Letter.

 

(b)                                 The Agent shall accept a Resignation Letter and notify the Company and the Lenders of its acceptance if:

 

(i)                                     no Default is continuing or would result from the acceptance of the Resignation Letter (and the Company has confirmed this is the case);

 

(ii)                                  the Guarantor Coverage Test will be complied with in accordance with Clause 21.10 (Guarantor Coverage Test) when calculated on a pro forma basis to take into account the relevant Third Party Disposal;

 

(iii)                               no payment is due from the Guarantor under Clause 17.1 (Guarantee and indemnity);

 

(iv)                              the Company has confirmed that where the Guarantor is subject to a Third Party Disposal, it shall ensure that the Disposal Proceeds will be applied in accordance with Clause 7.5 (Disposal Proceeds); and

 

(v)                                 the Agent has received written confirmation from OeKB (in form and substance satisfactory to the Agent) that OeKB agrees that the relevant Guarantor ceases to be a Guarantor,

 

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whereupon, upon such notification, that company shall cease to be a Guarantor and shall have no further rights or obligations as a Guarantor under the Finance Documents except, where there has been a Third Party Disposal, the resignations shall not take effect (and the Guarantor will continue to have rights and obligations under the Finance Documents) until the date on which the Third Party Disposal takes effect.

 

(c)                                  In this Clause 24.4 (Resignation of a Guarantor) and Clause 24.5 (Release of security on disposal), Third Party Disposal means the disposal of an Obligor to a person which is not a Group Company where that disposal is permitted under Clause 21.8 (Disposals) (and the Company has confirmed this is the case).

 

24.5        Release of security on disposal

 

(a)                                 If a Guarantor is or is proposed to be the subject of a Third Party Disposal then:

 

(i)                                     where that Guarantor created Conditional Security over any of its assets or business in favour of the Security Agent, or Conditional Security in favour of the Security Agent was created over the shares (or equivalent) of that Guarantor, the Finance Parties agree, subject to paragraph (c) below, at the cost and request of the Company, that the Security Agent releases those assets, business or shares (or equivalent).

 

(ii)                                  the resignation of that Guarantor and related release of Conditional Security referred to in paragraph (i) above shall not become effective until the date of that disposal; and

 

(iii)                               if the disposal of that Guarantor is not made, the Resignation Letter of that Guarantor and the related release of Conditional Security referred to in paragraph (i) above shall have no effect and the obligations of the Guarantor and the Conditional Security created or intended to be created by or over that Guarantor shall continue in such force and effect as if that release had not been effected.

 

(b)                                 If an asset subject to Conditional Security is disposed of where that disposal is permitted under Clause 21.8 (Disposals) (and the Company has confirmed this is the case) then:

 

(i)                                     the Finance Parties agree, subject to paragraph (c) below, at the cost and request of the Company, that the Security Agent releases that asset from the Conditional Security;

 

(ii)                                  the release of that asset from the Conditional Security shall not become effective until the date of that disposal; and

 

(iii)                               if the disposal is not made, the release of the asset from the Conditional Security shall have no effect and such asset shall continue to be subject to the Conditional Security as if that release had not been effected.

 

(c)                                  The prior consent of the Super-Majority Lenders shall be required to a release of Conditional Security in connection with any of the following Disposals:

 

(i)                                     any Disposal of real estate subject to Conditional Security to a person who is not a Group Company;

 

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(ii)                                  any Disposal of shares in a Group Company subject to Conditional Security to a person who is not a Group Company; or

 

(iii)                               any Disposal of an asset subject to Conditional Security to a person who is not a Group Company where such Disposal falls under a permission granted under subparagraph (a)(viii) of Clause 21.8 (Disposals).

 

24.6        Conditional Security Release

 

(a)                                 In this Clause 25.8, Release Date means the date on which the Company provides a confirmation in writing to the Agent and Security Agent that all of the Release Conditions have been satisfied. Such conformation to the Security Agent shall be evidenced to the Agent by the Company upon the Agent’s reasonable request.

 

(b)                                 Upon the Release Date and provided, the Intercreditor Agreement Accession has occurred, the Finance Parties hereby irrevocably authorise the release of the Conditional Security and will instruct the Security Agent (if required and if requested by the Company) at the cost of the Company or the Borrower to release all of the Conditional Security (the Conditional Security Release).

 

(c)                                  Upon the Release Date, the obligations contained in:

 

(i)                                     Clause 21.25 (Preservation of Assets);

 

(ii)                                  Clause 21.26 (Conditional Security Documents);

 

(iii)                               Clause 21.27 (Conditional Security); and

 

(iv)                              Clause 21.28 (Further Assurance),

 

shall no longer apply.

 

(d)                                 Nothing in this Clause shall affect or release the obligations that arise in relation to the Guarantor Coverage Group, each of the Guarantors guarantee obligations under the Finance Documents or the negative pledge as set out in Clause 21.7 (Negative Pledge) of this Agreement.

 

25.          ROLE OF THE AGENT AND THE MANDATED LEAD ARRANGER

 

25.1        Appointment of the Agent

 

(a)                                 The Mandated Lead Arranger and each of the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents.

 

(b)                                 The Mandated Lead Arranger and each of the Lenders authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

25.2        Duties of the Agent

 

(a)                                Subject to paragraph (b) of Clause 12.5 (Stamp Taxes) and paragraph (f) of Clause 30.5 (Electronic communication), the Agent shall promptly forward to a Party or the OeKB, as applicable, the original or a copy of any document which is delivered to the

 

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Agent for that Party or the OeKB, as applicable, by any other Party or the OeKB, as applicable.

 

(b)                                 If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the Lenders and the OeKB.

 

(c)                                  If the Agent receives notice from a Party referring to this Agreement, describing a Security Trigger Event and stating that the circumstance described is a Security Trigger Event, it shall promptly notify the Lenders and the OeKB.

 

(d)                                 Except where a Finance Document specifically provides otherwise, the Agent is not obliged to check, review or check the adequacy, accuracy or completeness of any document it provides to another Party.

 

(e)                                  The Agent shall promptly notify the Lenders and the OeKB of any Default arising under Clause 22.1 (Non-payment).

 

(f)                                   The Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

 

(g)                                  Each other Finance Party hereby relieves the Agent from the restrictions pursuant to section 181 German Civil Code (Bürgerliches Gesetzbuch) and similar restrictions applicable to it pursuant to any other applicable law, in each case to the extent legally possible to such Finance Party. A Finance Party which is barred by its constitutional documents or by-laws from granting such exemption shall notify the Agent accordingly.

 

(h)                                 The Agent shall provide to the Company within five (5) Business Days of a request by the Company, a list (which may be in electronic form) setting out the names of the Lenders as at that Business Day, their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each Lender for any communication to be made or document to be delivered under or in connection with the Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Agent to that Lender under the Finance Documents.

 

25.3        Role of the Mandated Lead Arranger

 

Except as specifically provided in the Finance Documents, the Mandated Lead Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.

 

25.4        No fiduciary duties

 

(a)                                 Nothing in this Agreement constitutes the Agent or the Mandated Lead Arranger as a trustee (Treuhänder) or fiduciary of any other person.

 

(b)                                 Neither the Agent nor the Mandated Lead Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

 

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25.5        Business with the Group

 

The Agent and the Mandated Lead Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any Group Company.

 

25.6        Rights and discretions of the Agent

 

(a)                                 The Agent may rely on:

 

(i)                                     any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and

 

(ii)                                  any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

 

(b)                                 The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

 

(i)                                     no Default has occurred (unless it has actual knowledge of a Default arising under Clause 22.1 (Non-payment));

 

(ii)                                  any right, power, authority or discretion vested in any Party, the Majority Lenders or the Super Majority Lenders has not been exercised; and

 

(iii)                               any notice or request made by the Company (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors.

 

(c)                                  The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

 

(d)                                The Agent may act in relation to the Finance Documents through its personnel and agents.

 

(e)                                  The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

 

(f)                                   Without prejudice to the generality of paragraph (e) above, the Agent may disclose the identity of the Defaulting Lender to the other Finance Parties and the Borrower and shall disclose the same upon the written request of the Borrower or the Majority Lenders.

 

(g)                                  Notwithstanding any other provision of any Finance Document to the contrary, none of the Agent or the Mandated Lead Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

25.7        Majority Lenders’ instructions

 

(a)                                 Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent) and (ii) not be liable for any act (or omission) if it acts (or

 

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refrains from taking any action) in accordance with such an instruction of the Majority Lenders.

 

(b)                                 Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all Finance Parties.

 

(c)                                  The Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

 

(d)                                 In the absence of instructions from the Majority Lenders (or, if appropriate, the Super Majority Lenders or the Lenders) the Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders.

 

(e)                                  The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document. This paragraph (e) shall not apply to any legal or arbitration proceedings relating to the perfection, preservation or protection of rights under the Conditional Security Documents or enforcement under the Conditional Security or Conditional Security Documents.

 

25.8        Responsibility for documentation

 

Neither the Agent nor the Mandated Lead Arranger:

 

(a)                                 is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Mandated Lead Arranger, an Obligor or any other person given in or in connection with any Finance Document;

 

(b)                                 is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Conditional Security any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document or the Conditional Security; or

 

(c)                                  is responsible for any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

 

25.9        Exclusion of liability

 

(a)                                 Without limiting paragraph (b) below, the Agent will not be liable for any action taken by it under or in connection with any Finance Document or a Conditional Security, unless directly caused by its gross negligence or wilful misconduct.

 

(b)                                 No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent may rely on this Clause.

 

(c)                                  The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the

 

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Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose.

 

(d)                                 Nothing in this Agreement shall oblige the Agent or the Mandated Lead Arranger to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Agent and the Mandated Lead Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or the Mandated Lead Arranger.

 

25.10      Lenders’ indemnity to the Agent

 

Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, within three (3) Business Days of demand, against any cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

25.11      Resignation of the Agent

 

(a)                                 The Agent may resign and appoint one of its Affiliates acting through an office as successor by giving notice to the Lenders and the Borrower.

 

(b)                                 Alternatively the Agent may resign by giving notice to the Lenders and the Borrower, in which case the Majority Lenders (after consultation with the Borrower) may appoint a successor agent.

 

(c)                                  If the Majority Lenders have not appointed a successor agent in accordance with paragraph (b) above within thirty (30) days after notice of resignation was given, the Agent (after consultation with the Borrower) may appoint a successor agent.

 

(d)                                 If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is entitled to appoint a successor agent under paragraph (c) above, the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor agent to become a party to this Agreement as Agent) agree with the proposed successor agent amendments to this Clause 25 consistent with then current market practice for the appointment and protection of corporate trustees and those amendments will bind the Parties, provided that no amendment may be made which increases the agency fee payable under this Agreement or which prejudices the interests of the Obligors in any material respect without the prior consent of the Borrower.

 

(e)                                  The retiring Agent shall, at its own cost, make available to the successor agent such documents and records and provide such assistance as the successor agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

(f)                                   The Agent’s resignation notice shall only take effect upon the appointment of a successor.

 

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(g)                                  Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 25. Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

25.12      Replacement of the Agent

 

(a)                                 After consultation with the Borrower, the Majority Lenders may, by giving thirty (30) days’ notice to the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders) replace the Agent by appointing a successor agent.

 

(b)                                 The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor agent such documents and records and provide such assistance as the successor agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

(c)                                  The appointment of the successor agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent. As from this date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 25 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).

 

(d)                                 Any successor agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

25.13      Confidentiality

 

(a)                                 In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

(b)                                 If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

 

(c)                                  Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Mandated Lead Arranger are obliged to disclose to any other person (i) any Confidential Information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty.

 

25.14      Relationship with the Lenders

 

(a)                                 The Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

 

(i)                                     entitled to or liable for any payment due under any Finance Document on that day; and

 

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(ii)                                  entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

 

unless it has received not less than five (5) Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

 

(b)                                 Each Lender shall supply the Agent with any information required by the Agent in order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost Formulae).

 

(c)                                  Following an Intercreditor Agreement Accession, each Lender shall supply the Agent with any information that the Security Agent may reasonably specify (through the Agent) as being necessary or desirable to enable the Security Agent to perform its functions as Security Agent. Each Lender shall deal with the Security Agent exclusively through the Agent and shall not deal directly with the Security Agent.

 

(d)                                 Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents. Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 30.5 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 30.2 (Addresses) and paragraph (b) of Clause 30.5 (Electronic communication) and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

 

25.15      Credit appraisal by the Lenders

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent and the Mandated Lead Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:

 

(a)                                 the financial condition, status and nature of each Group Company;

 

(b)                                 the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and the Conditional Security and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Conditional Security;

 

(c)                                  whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the Conditional Security, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

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(d)                                 the adequacy, accuracy and/or completeness of the any information provided by the Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

 

(e)                                  the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any of the Conditional Security or the existence of any Security affecting the Charged Property.

 

25.16      Reference Banks

 

If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (in consultation with the Borrower) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

 

25.17      Agent to hold original documents

 

The Agent shall hold (in accordance with the Stamp Duty Guidelines) one of each of the complete originals of this Agreement and any Transfer Certificate for the benefit of the Finance Parties and each copy shall be clearly marked “Agent’s Copy”.

 

25.18      Agent’s management time

 

Any amount payable to the Agent under Clause 14.3 (Indemnity to the Agent), Clause 16 (Costs and expenses) and Clause 25.10 (Lenders’ indemnity to the Agent) shall include the cost of utilising the Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may agree with the Borrower and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 11 (Fees).

 

25.19      Deduction from amounts payable by the Agent

 

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

25.20      Reliance and engagement letters

 

Each Finance Party confirms that each of the Mandated Lead Arranger and the Agent has authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or reports already accepted by the Mandated Lead Arranger or Agent) the terms of any reliance/non-reliance letter or confidentiality agreement engagement letters relating any reports or letters provided by accountants in connection with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it in respect of reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.

 

25.21      Representation by Original Lenders

 

Each Original Lender confirms for the purposes of paragraph (b) of Clause 12.3 (Tax  indemnity) that on the Signing Date it is a Treaty Lender.

 

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26.          CONDUCT OF BUSINESS BY THE FINANCE PARTIES

 

No provision of this Agreement will:

 

(a)                                 interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

(b)                                 oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

 

(c)                                  oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

 

27.          SHARING AMONG THE LENDERS

 

27.1        Payments to Lenders

 

If a Lender (a Recovering  Lender) receives or recovers any amount from an Obligor other than in accordance with Clause 28 (Payment  mechanics) and applies that amount to a payment due under the Finance Documents then:

 

(a)                                the Recovering Lender shall, within three (3) Business Days, notify details of the receipt or recovery to the Agent;

 

(b)                                 the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Lender would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 28 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

(c)                                  the Recovering Lender shall, within three (3) Business Days of demand by the Agent, pay to the Agent an amount (the Sharing Payment) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Lender as its share of any payment to be made, in accordance with Clause 28.6 (Partial payments).

 

27.2        Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Lender) in accordance with Clause 28.6 (Partial payments).

 

27.3        Recovering Lender’s rights

 

(a)                                 On a distribution by the Agent under Clause 27.2 (Redistribution of payments), the Recovering Lender will be subrogated to the rights of the Finance Parties which have shared in the redistribution.

 

(b)                                 If and to the extent that the Recovering Lender is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Lender for a debt equal to the Sharing Payment which is immediately due and payable.

 

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27.4        Reversal of redistribution

 

If any part of the Sharing Payment received or recovered by a Recovering Lender becomes repayable and is repaid by that Recovering Lender, then:

 

(a)                                 each Lender which has received a share of the relevant Sharing Payment pursuant to Clause 27.2 (Redistribution of payments) shall, upon request of the Agent, pay to the Agent for the account of that Recovering Lender an amount equal to its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Lender for its proportion of any interest on the Sharing Payment which that Recovering Lender is required to pay); and

 

(b)                                 that Recovering Lender’s rights of subrogation in respect of any reimbursement shall be cancelled and the relevant Obligor will be liable to the reimbursing Lender for the amount so reimbursed.

 

27.5        Exceptions

 

(a)                                 This Clause 27 shall not apply to the extent that the Recovering Lender would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

 

(b)                                 A Recovering Lender is not obliged to share with any other Lender any amount which the Recovering Lender has received or recovered as a result of taking legal or arbitration proceedings, if:

 

(i)                                     it notified the other Lenders of the legal or arbitration proceedings; and

 

(ii)                                  the other Lenders had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice or did not take separate legal or arbitration proceedings.

 

28.          PAYMENT MECHANICS

 

28.1        Payments to the Agent

 

(a)                                 On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

(b)                                 Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to Euro, in a principal financial centre in a Participating Member State) with such bank as the Agent specifies.

 

(c)                                  Any payment made by or to the Borrower or any other Obligor under or in connection with a Stamp Duty Sensitive Document shall be made from and to an account outside of Austria. For the avoidance of doubt, this Agreement is not a Stamp Duty Sensitive Document and any payment made by or to the Borrower or any other Obligor under or in connection with this Agreement may be made from and to an account inside of Austria.

 

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(d)                                 Any payment made by a Finance Party to another Finance Party under or in connection with a Stamp Duty Sensitive Document shall be made from and to an account outside of Austria. For the avoidance of doubt, this Agreement is not a Stamp Duty Sensitive Document and any payment made by Finance Party to another Finance Party under or in connection with this Agreement may be made from and to an account inside of Austria.

 

28.2        Distributions by the Agent

 

Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 28.3 (Distributions to an Obligor) and Clause 28.4 (Clawback) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent in accordance with paragraphs (b), (c) and (d) of Clause 28.1 (Payments  to the Agent) by not less than five (5) Business Days’ notice with a bank in the principal financial centre of the country of that currency (or, in relation to Euro, in the principal financial centre of a Participating Member).

 

28.3        Distributions to an Obligor

 

The Agent may (with the consent of the Obligor or in accordance with Clause 28.11 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

28.4        Clawback

 

(a)                                 Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

(b)                                 If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

28.5        Impaired Agent

 

(a)                                 If, at any time, the Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with Clause 28.1 (Payments to the Agent) may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment and designated as a trust account (Treuhandkonto) for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents. In each case such payments must be made on the due date for payment under the Finance Documents.

 

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(b)                                 All interest accrued on the amount standing to the credit of the trust account (Treuhandkonto) shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements.

 

(c)                                  A Party which has made a payment in accordance with this Clause 28.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account (Treuhandkonto).

 

(d)                                 Promptly upon the appointment of a successor agent in accordance with Clause 25.12 (Replacement of the Agent), each Party which has made a payment to a trust account (Treuhandkonto) in accordance with this Clause 28.5 shall give all requisite instructions to the bank with whom the trust account (Treuhandkonto) is held to transfer the amount (together with any accrued interest) to the successor agent for distribution in accordance with Clause 28.2 (Distributions by the Agent).

 

28.6        Partial payments

 

(a)                                 If the Agent receives a payment for application against amounts due in respect of any Finance Documents that is insufficient to discharge all the amounts then due and payable by an Obligor under those Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under those Finance Documents in the following order:

 

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

 

(ii)                                  second, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under those Finance Documents;

 

(iii)                               thirdly, in or towards payment pro rata of amounts of principal due but unpaid under those Finance Documents; and

 

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

 

(b)                                 The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

 

(c)                                  Paragraphs (a) and (b) above will override any appropriation made by an Obligor.

 

28.7        No set-off by Obligors

 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

28.8        Business Days

 

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

 

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

 

28.9        Currency of account

 

(a)                                 Subject to paragraphs (b) to (e) below, EUR is the currency of account and payment for any sum due from an Obligor under any Finance Document.

 

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

 

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

 

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

 

(e)                                  Any amount expressed to be payable in a currency other than EUR shall be paid in that other currency.

 

28.10      Change of currency

 

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

 

(i)                                     any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Borrower); and

 

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

 

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

 

28.11      Disruption to Payment Systems etc.

 

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Borrower or Company that a Disruption Event has occurred:

 

(a)                                 the Agent may, and shall if requested to do so by the Borrower or Company, consult with the Borrower or Company with a view to agreeing with the Borrower or Company such changes to the operation or administration of the Facility as the Agent may deem necessary in the circumstances;

 

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(b)                                 the Agent shall not be obliged to consult with the Borrower or Company in relation to any changes mentioned in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

 

(c)                                  the Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

(d)                                 any such changes agreed upon by the Agent and the Borrower or Company shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 34 (Amendments and Waivers);

 

(e)                                  the Agent shall not be liable for any damages, costs or losses whatsoever  (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 28.11; and

 

(f)                                   the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

 

29.          SET-OFF

 

Without prejudice to the rights of the Finance Parties at law, whilst an Event of Default is continuing unremedied and unwaived, a Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off..

 

30.          NOTICES

 

30.1        Communications in writing

 

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

 

30.2        Addresses

 

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

 

(a)                                 in the case of the Obligors’ Agent, that identified with its name below;

 

(b)                                 in the case of each Lender or any other Original Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

 

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(c)                                  in the case of the Agent that identified with its name below,

 

or any substitute address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five (5) Business Days’ notice.

 

30.3        Delivery

 

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

 

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

 

(ii)                                  if by way of letter, when it has been left at the relevant address seven (7) Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

 

and, if a particular department or officer is specified as part of its address details provided under Clause 30.2 (Addresses), if addressed to that department or officer.

 

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

 

(c)                                  All notices from or to an Obligor shall be sent through the Agent.

 

(d)                                 Any communication or document made or delivered to the Obligors’ Agent in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

 

30.4        Notification of address and fax number

 

Promptly upon receipt of notification of an address and fax number or change of address or fax number pursuant to Clause 30.2 (Addresses) or changing its own address or fax number, the Agent shall notify the other Parties.

 

30.5        Electronic communication

 

(a)                                 Any communication to be made between the Parties under or in connection with the Finance Documents (other than (i) delivery of any Utilisation Request, a certificate in accordance with Clause 19.2 (Compliance Certificate) or any request for an amendment to or waiver of this Agreement, (ii) in the case of a Guarantor, delivery of any request for an amendment or waiver of this Agreement) may be made by electronic mail or other electronic means and the Parties shall notify each other (in particular, the Agent) in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means.

 

(b)                                 Each Party shall promptly notify each other Party (in particular, the Agent) of any change to their electronic mail address or any other such information supplied by them.

 

(c)                                  Any electronic communication made:

 

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(i)                                     by the Agent to another Party will be effective only when actually received in readable form by the relevant recipient and then only if it is addressed in such a manner as that relevant Lender or Obligor, as the case may be, shall specify to the Agent for this purpose; and

 

(ii)                                  by a Lender or any Obligor to the Agent will be effective only when actually received in readable form by the Agent and then only if it is addressed in such a manner as the Agent shall specify to that Lender or, as the case may be, that Obligor for this purpose.

 

(d)                                 Each Party shall notify any affected Parties promptly upon becoming aware that its electronic mail system or other electronic means of communication cannot be used due to technical failure (and that failure is continuing for more than 36 hours). Until that Party has notified the other affected Parties that the failure has been remedied, all notices between those Parties shall be sent by fax or letter in accordance with this Clause 30 (Notices).

 

(e)                                  In the case of notification of rates of interest by the Agent pursuant to Clause 8.4 (Notification of rates of interest) and in the case of the delivery of any document by the Agent pursuant to paragraph (a) of Clause 25.2 (Duties of the Agent), the Agent may refer a Lender or an Obligor (by fax, letter or e-mail) to a web site and to the location of the relevant information on such web site in discharge of such notification or delivery obligation.

 

(f)                                   Each of the Parties agrees that it will comply with the Stamp Duty Guidelines.

 

30.6        English language

 

(a)                                 Any notice given under or in connection with any Finance Document must be in English.

 

(b)                                 All other documents provided under or in connection with any Finance Document must be:

 

(i)                                     in English; or

 

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

 

30.7        Communication when Agent is Impaired Agent

 

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly but always in accordance with the Stamp Duty Guidelines. This provision shall not operate after a replacement Agent has been appointed.

 

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31.          CALCULATIONS AND CERTIFICATES

 

31.1        Accounts

 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

 

31.2        Certificates and determinations

 

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

 

31.3        Day count convention

 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of three hundred and sixty (360) days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

 

32.          PARTIAL INVALIDITY

 

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

 

33.          REMEDIES AND WAIVERS

 

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

 

34.          AMENDMENTS AND WAIVERS

 

34.1        Intercreditor Agreement

 

On or following the date of an Intercreditor Agreement Accession, this Clause 34 is subject to the terms of the Intercreditor Agreement.

 

34.2        Required consents

 

(a)                                 Subject to Clause 34.3 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors’ Agent and any such amendment or waiver will be binding on all Parties.

 

(b)                                 The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause.

 

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(c)                                  Each Obligor agrees to any such amendment or waiver permitted by this Clause 34.2 which is agreed to by the Obligors’ Agent. This includes any amendment or waiver which would, but for this paragraph (c), require the consent of all Guarantors.

 

34.3        Exceptions

 

(a)                                 An amendment or waiver that has the effect of changing or which relates to:

 

(i)                                     the definition of Availability Period in Clause 1.1 (Definitions)

 

(ii)                                  the definition of Majority Lenders in Clause 1.1 (Definitions);

 

(iii)                               subject to paragraph (c) below, an extension to the date of payment of any amount under the Finance Documents;

 

(iv)                              save for as otherwise provided in paragraph (e) below a reduction in the Margin, the commission rate, the amount of, or the currency of any payment of principal, interest, fees or commission payable;

 

(v)                                 subject to paragraph (c) below, an increase or extensions of any Commitment;

 

(vi)                              a change to the Borrower or the Guarantors (other than in accordance with Clause 24 (Changes to the Obligors);

 

(vii)                           any provision which expressly requires the consent of all the Lenders;

 

(viii)                        Clause 2.2 (Finance Parties’ rights and obligations), Clause 7.4 (Exit), Clause 23 (Changes to the Lenders), Clause 27 (Sharing among the Lenders) or this Clause 34;

 

(ix)                              (on and from 1 January 2013 only) any provision, if:

 

(A)                               a Lender notifies the Agent that such amendment or waiver will, or is reasonably likely to, constitute a “material modification” within the meaning of Proposed US Treasury regulation Section 1.1471-2(b)(2)(iv) (or any final or successor regulation governing grandfathering under FATCA) and as a result the Agent or such Lender would suffer from a FATCA Deduction;

 

(B)                               promptly following the notification referred to at paragraph (A) above, the relevant Lender delivers to the Agent written advice from recognised US tax counsel supporting the notification; and

 

(C)                               the Agent subsequently communicates the notification referred to at paragraph (A) above to the Borrower and the Borrower confirms that the request for the applicable amendment or waiver shall not be withdrawn notwithstanding such determination,

 

shall not be made without the prior written consent of all the Lenders and, in the case of an amendment or waiver within this paragraph, the Agent;

 

(x)                                 the manner in which the proceeds of enforcement of the Conditional Security are distributed; or

 

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(xi)                              provided that an Intercreditor Agreement Accession has occurred, any amendment to the order of priority or subordination under the Intercreditor Agreement,

 

shall not be made without the prior written consent of all the Lenders.

 

(b)                                 An amendment or waiver which relates to the rights or obligations of the Agent or the Mandated Lead Arranger may not be effected without the prior written consent of the Agent or the Mandated Lead Arranger.

 

(c)                                  Any amendment or waiver which relates to the right of prepayment under Clause 7 (Prepayment and cancellation) save for Clause 7.4 (Exit), shall not be made without the prior written consent of the Majority Lenders.

 

(d)                                 Subject to Clause 24.6 (Conditional Security Release), any amendment or waiver which relates to:

 

(i)                                     the nature or scope of the Charged Property; or

 

(ii)                                  the nature or scope of or any release of any guarantee and indemnity granted under Clause 17 (Guarantee and indemnity) or of any Conditional Security,

 

in each case other than as contemplated under Clause 24.5 (Release of security on disposal) shall not be made without the prior written consent of the Super-Majority Lenders.

 

(e)                                 A Fee Letter may be amended or waived with the agreement of the parties to that Fee Letter.

 

(f)                                   If any Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any of the terms of any Finance Document or other vote of Lenders under the terms of this Agreement within ten (10) Business Days (unless the Borrower and the Agent agree to a longer time period in relation to any request) of that request being made, its Commitment and/or participation shall not be included for the purpose of calculating the Total Commitments or participations under the Facility when ascertaining whether any relevant percentage of Total Commitments and/or participations has been obtained to approve that request.

 

34.4        Replacement of Lender

 

(a)                                 If at any time:

 

(i)                                     any Lender becomes a Non-Consenting Lender (as defined below); or

 

(ii)                                  an Obligor becomes obliged to repay any amount in accordance with Clause 7.1 (Illegality) or to pay additional amounts pursuant to Clause 13.1 (Increased Costs) or Clause 12.2 (Tax gross-up) or a FATCA Deduction to any Lender in excess of amounts payable to the other Lenders generally,

 

then the Borrower may, on fifteen (15) Business Days’ prior written notice to the Agent and such Lender, replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a Replacement Lender) selected

 

121

 

by the Borrower, and which is acceptable to the Agent (acting reasonably), which confirms its willingness to assume and does assume all the obligations of the transferring Lender (including the assumption of the transferring Lender’s participations on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisation and all accrued interest and/or fees arising under Clause 11 (Fees), Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(b)                                 The replacement of a Lender pursuant to this Clause 34 shall be subject to the following conditions:

 

(i)                                     the Borrower shall have no right to replace the Agent;

 

(ii)           neither the Agent nor the Lender shall have any obligation to the Borrower to find a Replacement Lender;

 

(iii)                               the Agent has received written confirmation from OeKB (in form and substance satisfactory to the Agent) that OeKB agrees that the relevant Lender is replaced pursuant to this Clause 34;

 

(iv)                              in the event of a replacement of a Non-Consenting Lender such replacement must take place no later than sixty (60) days after the date the Non-Consenting Lender notifies the Borrower and the Agent of its failure or refusal to give a consent in relation to, or agree to any waiver or amendment to the Finance Documents requested by the Borrower; and

 

(v)                                 in no event shall the Lender replaced under this paragraph (b) be required to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents.

 

(c)                                  In the event that:

 

(i)                                     the Borrower or the Agent (at the request of the Borrower) has requested the Lenders to give a consent in relation to, or to agree to a waiver or amendment of, any provisions of the Finance Documents;

 

(ii)                                  the consent, waiver or amendment in question requires the approval of all the Lenders or Super Majority Lenders; and

 

(iii)                               Lenders whose Commitments aggregate more than 75 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 75 per cent. of the Total Commitments prior to that reduction) have consented or agreed to such waiver or amendment,

 

then any Lender who does not and continues not to consent or agree to such waiver or amendment shall be deemed a Non-Consenting Lender.

 

34.5        Disenfranchisement of Defaulting Lenders

 

(a)                                 For so long as a Defaulting Lender has any Available Commitment, in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance

 

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Documents, that Defaulting Lender’s Commitments will be reduced by the amount of its Available Commitments.

 

(b)                                 For the purposes of this Clause 34.5, the Agent may assume that the following Lenders are Defaulting Lenders:

 

(i)            any Lender which has notified the Agent that it has become a Defaulting Lender; and

 

(ii)                                  any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of Defaulting Lender has occurred,

 

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

34.6        Replacement of a Defaulting Lender

 

(a)                                 The Company may, at any time after a Lender has become and continues to be a Defaulting Lender, by giving fifteen (15) Business Days’ prior written notice to the Agent and such Lender:

 

(i)                                     replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement; and

 

(ii)                                  require such Lender to (and such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of the undrawn Commitment of the Lender,

 

to a Lender or other bank, financial institution, trust, fund or other entity (a Replacement Lender) selected by the Borrower, and which (unless the Agent is an Impaired Agent) is acceptable to the Agent (acting reasonably), which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Lender (including the assumption of the transferring Lender’s participations or unfunded participations (as the case may be) on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisation and all accrued interest and fees, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(b)                                 Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause 34.6 shall be subject to the following conditions:

 

(i)                                     the Borrower shall have no right to replace the Agent;

 

(ii)                                  neither the Agent nor the Defaulting Lender shall have any obligation to the Borrower to find a Replacement Lender;

 

(iii)                               the transfer must take place no later than sixty (60) days after the notice referred to in paragraph (a) above and in accordance with Clause 23 (Changes to the Lenders); and

 

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(iv)                              in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents.

 

35.          PLACE OF PERFORMANCE

 

35.1        Performance

 

The Parties shall perform their obligations under or in connection with the Stamp Duty Sensitive Documents exclusively at the Place of Performance (as defined below), but in no event at a place in Austria and the performance of any obligations or liability under or in connection with the Stamp Duty Sensitive Documents within the Republic of Austria shall not constitute discharge or performance of such obligation or liability. For the purposes of the above, Place of Performance means:

 

(a)                                 in relation to any payment by an Obligor or a Finance Party under or in connection with a Stamp Duty Sensitive Document, the place at which such payment is to be made pursuant to Clause 28.1 (Payments to the Agent); and

 

(b)                                 in relation to any other obligation or liability under or in connection with a Stamp Duty Sensitive Document, the premises of the Agent in Munich or any other place outside of Austria as the Agent specifies from time to time.

 

35.2        Delivery of notices by the Agent

 

Notwithstanding Clause 30 (Notices) and Clause 35.1 (Performance) but subject to Clause 12.5 (Stamp Taxes) and paragraph (f) of Clause 30.5 (Electronic communication), each of the Obligors agrees that any notice or document delivered to it under or in connection with the Finance Documents shall be sent to an address which, unless it notifies the Agent otherwise, shall be 154 Chaussée de la Hulpe, B-1170 Brussels (Watermael Boitsfort), Belgium.

 

36.          CONFIDENTIALITY

 

36.1        Confidential Information

 

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 36.2 (Disclosure of Confidential Information), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

36.2        Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

(a)                                 to any of its Affiliates and the OeKB and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this sub paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

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(b)                                 to any person:

 

(i)                                     to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person’s Affiliates, Representatives and professional advisers;

 

(ii)                                  with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that person’s Affiliates, Representatives and professional advisers;

 

(iii)                               appointed by any Finance Party or by a person to whom sub paragraph (b)(i) or (b)(ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under paragraph (d) of Clause 25.14 (Relationship with the Lenders));

 

(iv)                              who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in sub paragraph (b)(i) or (b)(ii) above;

 

(v)                                 to whom information is required or requested to be disclosed by any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(vi)                              to whom information is required or requested to be disclosed by any insurance or credit protection provider of that Finance Party;

 

(vii)                           to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 23.6 (Security over Lenders’ rights);

 

(viii)        required in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(ix)                              who is a Party; or

 

(x)                                 with the consent of the Borrower;

 

in each case, such Confidential Information as that Finance Party shall consider appropriate if:

 

(A)                               in relation to sub paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

125

 

(B)                               in relation to sub paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information; or

 

(C)                               in relation to sub paragraphs (b)(v), (b)(vi) and (b)(viii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

 

(c)                                  to any person appointed by that Finance Party or by a person to whom sub paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Borrower and the relevant Finance Party;

 

(d)                                 to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Obligors if in relation to sub-paragraphs (b)(i) and (b)(ii) above, the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

 

(e)                                  For the purposes only of and under the conditions set forth in this Clause 36.2, the Obligors explicitly waive any rights they may have in respect of banking secrecy pursuant to the Austrian Banking Act 1993, Austrian law gazette 1993/532, as amended from time to time (Bankwesengesetz 1993, BGBI 1993/532 in der jeweils gültigen Fassung).

 

36.3        Inside information

 

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

36.4        Notification of disclosure

 

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Borrower:

 

126

 

(a)                                 of the circumstances of any disclosure of Confidential Information made pursuant to sub paragraph (b)(v) of Clause 36.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(b)                                 upon becoming aware that Confidential Information has been disclosed in breach of this Clause 36 (Confidentiality).

 

36.5        Continuing obligations

 

The obligations in this Clause 36 (Confidentiality) are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve months from the earlier of: (a) the date on which all amounts payable by the Obligors under or in connection with this Agreement have been paid in full and all Commitments have been cancelled or otherwise ceased to be available and (b) the date on which such Finance Party otherwise ceases to be a Finance Party.

 

37.          GOVERNING LAW

 

This Agreement and any non-contractual obligations arising out of or in relation to this Agreement shall be governed by and construed in all respects in accordance with Austrian law, excluding the Austrian conflict of laws rules.

 

38.          ENFORCEMENT

 

(a)                                 The competent courts for commercial matters for the first district of Vienna, shall have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement) or any non-contractual obligation arising out of or in connection with this Agreement (a Dispute).

 

(b)                                 This Clause 38 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts (including the Federal and State Courts in and of the State of New York to whose jurisdiction each Obligor irrevocably submits) with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

 

(c)                                  Each party hereby waives, to the fullest extent permitted by applicable law, any right that it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Agreement, any other Finance Document or the transactions contemplated hereby or thereby (whether based on contract, tort or any other theory). Each party hereto (a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the other parties hereto have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this section.

 

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

 

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SCHEDULE 1

 

THE ORIGINAL PARTIES

 

Part A
 The Original Obligors

 

	
Original Borrower
    	
 
    	
Registration number (or equivalent, if any)
    
	
Sappi Papier   Holding GmbH
    	
 
    	
FN167931h   (Austria)
    

 

	
Original Guarantors
    	
 
    	
Registration number (or equivalent, if any)
    
	
Sappi Limited
    	
 
    	
1936/008963/06   (South Africa)
    
	
Sappi   International SA
    	
 
    	
RPM Brussels   0449.887.582 (Belgium)
    
	
S.D. Warren   Company 
    	
 
    	
878041   (Pennsylvania)
    
	
SDW Holdings   Corporation
    	
 
    	
2441157 (Delaware)
    
	
Sappi Cloquet LLC
    	
 
    	
3498035 (Delaware)
    
	
Sappi Lanaken NV 
    	
 
    	
RPR Tongeren   0420.732.352 (Belgium)
    
	
Sappi Deutschland   GmbH 
    	
 
    	
HRB59586   registered with the Commercial Register of Hanover (Germany)
    
	
Sappi Deutschland   Holding GmbH
    	
 
    	
HRB110140   registered with the Commercial register of Hildesheim (Germany)
    
	
Sappi Lanaken   Press Paper NV
    	
 
    	
RPR Tongeren 0426.966.779 (Belgium)
    
	
Sappi Pulp Asia   Limited 
    	
 
    	
0925340 (Hong   Kong)
    
	
Sappi Nijmegen BV 
    	
 
    	
10041104   (Netherlands)
    
	
Sappi Alfeld GmbH 
    	
 
    	
HRB110356   registered with the Commercial Register of Hildesheim (Germany)
    
	
Sappi Maastricht   BV 
    	
 
    	
14631722 (Netherlands)
    
	
Sappi Netherlands   BV
    	
 
    	
14631721   (Netherlands)
    
	
Sappi Ehingen GmbH   
    	
 
    	
HRB490647   registered with the Commercial Register of Ulm (Germany)
    
	
Sappi Europe SA 
    	
 
    	
RPM Brussels   0449.654.386 (Belgium)
    
	
Sappi Gratkorn   GmbH 
    	
 
    	
FN 69000x   (Austria)
    
	
Sappi MagnoStar   GmbH 
    	
 
    	
FN 140031d   (Austria)
    
	
Sappi Austria   Produktions - GmbH & Co. KG
    	
 
    	
FN 223882p   (Austria)
    
	
Sappi Stockstadt   GmbH
    	
 
    	
HRB8118 registered   with the Commercial Register of Aschaffenburg (Germany)
    
	
Sappi Finland I Oy
    	
 
    	
2219145-0   (Finland)
    

 

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Part B
 The Original Lenders

 

	
Original   Lender
    	
 
    	
Commitment   (EUR)
    	
 
    
	
UniCredit Bank Austria AG
    	
 
    	
54,000,000
    	
 
    
	
Erste Group Bank AG
    	
 
    	
42,000,000
    	
 
    
	
BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische   Postsparkasse Aktiengesellschaft
    	
 
    	
25,000,000
    	
 
    
	
Raiffeisen Bank International AG
    	
 
    	
21,000,000
    	
 
    
	
Total
    	
 
    	
142,000,000
    	
 
    

 

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SCHEDULE 2

 

CONDITIONS PRECEDENT

 

Part A
 Conditions Precedent to Initial Utilisation

 

1.                                      Obligors and Non-Obligor Chargors

 

(a)                                 A copy of the constitutional documents of each Original Obligor, including, in the case of:

 

(i)                                     an Austrian Obligor, a copy of the articles of association (Gesellschaftsvertrag) and a copy of an extract from the commercial register (Firmenbuch);

 

(ii)                                  a Belgian Guarantor, its deed of incorporation, up-to-date coordinated articles of association, a KBO Certificate and a non-bankruptcy certificate (both dated not earlier than fifteen (15) Business Days prior to the date of this Agreement);

 

(iii)                               a Dutch Guarantor, its deed of incorporation, its articles of association and a certified extract from the trade register;

 

(iv)                              a Finnish Guarantor, a certified copy of the articles of association and a certified extract from the trade register, each dated not earlier than seven (7) days prior to the date of this Agreement;

 

(v)                                 a Hong Kong Guarantor, a copy of the memorandum and articles of association, a copy of the certificate of incorporation and a copy of any certificate of change of name;

 

(vi)                              a German Guarantor (x) an extract from the Commercial Register (Handelsregister) (dated no earlier than 10 (ten) days prior to the date of this Agreement), certified by the competent Commercial Register; and (y) a copy of the current articles of association (Gesellschaftsvertrag) certified by the competent Commercial Register (in case of a corporation) or by a director of the relevant Original Obligor (in case of a partnership) and (z) the current shareholders’ list as filed with the Commercial Register (in case of a German limited liability company (Gesellschaft mit beschränkter Haftung)); and

 

(vii)                           to the extent applicable, any Original Obligor established in any other jurisdiction, the relevant local law equivalent.

 

(b)                                 A copy of a resolution of the board of directors of each Original Obligor (other than a German Guarantor) and/or equivalent body under the respective applicable law of each Original Obligor (which for a German Guarantor is a shareholders’ resolution):

 

(i)                                     approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and perform the Finance Documents to which it is a party and (in respect of the Belgian Guarantor) setting out the reasons why the board of directors of the Belgian Guarantor consider that the entry into the Finance Documents to 

 

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which it is a party, and in particular the assumption of its guarantee obligations in accordance with Clause 17 (Guarantee and Indemnity) of this Agreement, is of benefit to the Belgian Guarantor;

 

(ii)                                  authorising a specified person or persons to execute the Finance Documents, to which it is a party on its behalf;

 

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

 

(iv)                              in the case of an Obligor other than SISA, authorising SISA to act as its agent in connection with the Finance Documents.

 

(c)                                  A copy of a resolution signed by all the holders of the issued shares in each Original Obligor (except the Company, any Belgian Guarantor, any US Guarantor and any German Guarantor), approving the terms of, and the transactions contemplated by, the Finance Documents to which the Original Obligor is a party.

 

(d)                                 A resolution of the shareholders meeting or a written resolution of all shareholders of the Belgian Guarantor approving the provisions of the Finance Documents requiring an early repayment in the case of a change of control over the Belgian Guarantor, together with evidence that an extract of such resolution has been or will be filed with the clerk of the commercial court of the judicial district of the Belgian Guarantor in accordance with Article 556 of the Belgian Company Code within fifteen (15) Business Days from the date of this Agreement.

 

(e)                                  A copy of a resolution of the supervisory board (Aufsichtsrat) and/or advisory board (Beirat) (as applicable) of each Original Obligor incorporated in Austria approving the terms of, and transactions contemplated by, the Finance Documents to which it is a party and resolving that it executes the Finance Documents to which it is a party.

 

(f)                                  A copy of a resolution of the supervisory board (if any) of each Dutch Guarantor approving the terms of, and transactions contemplated by, the Finance Documents to which it is a party and resolving that it executes the Finance Documents to which it is a party.

 

(g)                                  A copy of a resolution of the supervisory board (Aufsichtsrat) (if any and if required pursuant to the articles of association or applicable law) or advisory board (Beirat) (if any and if required pursuant to the articles of association or applicable law) of each Original Obligor incorporated in Germany approving the terms of, and transactions contemplated by, the Finance Documents to which it is a party and resolving that it executes the Finance Documents to which it is a party.

 

(h)                                 A copy of a request for advice addressed to the works council (if any) of each Dutch Guarantor and a copy of the letter of such works council (if any) evidencing that such works council (if any) has given positive advice in respect of the Finance Documents and the transactions contemplated thereby

 

(i)                                     A certificate of an authorised signatory of the Company confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on any Original Obligor to be exceeded.

 

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(j)                                    A certificate of an authorised signatory of, each Original Obligor (except any US Guarantor), certifying that each copy document relating to it specified in this Part A of Schedule 2 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the Signing Date.

 

(k)                                 A certificate of an authorised signatory of each Original Obligor including a specimen of the signature of each person (i) authorised by the resolution referred to in paragraph (b) above or (ii) of a person being generally authorised to execute the Finance Documents to which it is party on its behalf.

 

2.                                      Finance Documents

 

The following documents, executed by the parties thereto:

 

(a)                                 this Agreement;

 

(b)                                 the Side Letter;

 

(c)                                  the Mandate Letter;

 

(d)                                 the Fee Letters;

 

(e)                                  at least two simple (but not certified) copies of each Conditional Security Document, each marked as “Kopie” or “Copy” on its first page and in compliance with the Stamp Duty Guidelines;

 

3.                                      Legal opinions

 

Executed copies of the following legal opinions, each addressed to the Mandated Lead Arranger, the Agent and the Original Lenders and capable of being relied upon by any persons to become Lenders pursuant to primary syndication of the Facility:

 

(a)                                 legal opinion of Freshfields Bruckhaus Deringer LLP (Vienna), legal advisers to the Mandated Lead Arranger, the Agent and the Original Lenders regarding Austrian law, substantially in the form distributed to the Original Lenders prior to signing this Agreement;

 

(b)                                 legal opinion of Freshfields Bruckhaus Deringer LLP (Brussels), legal advisers to the Mandated Lead Arranger, the Agent and the Original Lenders regarding Belgian law, substantially in the form distributed to the Original Lenders prior to signing this Agreement;

 

(c)                                  legal opinion of Bowman Gilfillan Attorneys, legal advisers to the Mandated Lead Arranger, the Agent and the Original Lenders regarding South African law, substantially in the form distributed to the Original Lenders prior to signing this Agreement;

 

(d)                                 legal opinion of Freshfields Bruckhaus Deringer LLP (Frankfurt on the Main), legal advisers to the Mandated Lead Arranger, the Agent and the Original Lenders regarding German law, substantially in the form distributed to the Original Lenders prior to signing this Agreement;

 

(e)                                  legal opinion of Freshfields Bruckhaus Deringer LLP (Hong Kong), legal advisers to the Mandated Lead Arranger, the Agent and the Original Lenders regarding Hong 

 

132

 

Kong law, substantially in the form distributed to the Original Lenders prior to signing this Agreement;

 

(f)                                   legal opinion of Freshfields Bruckhaus Deringer US LLP, legal advisers to SDW Holdings Corporation and Sappi Cloquet LLC regarding New York law and Delaware law, substantially in the form distributed to the Original Lenders prior to signing this Agreement;

 

(g)                                  legal opinion of Morgan Lewis & Bockius LLP, special Pennsylvania counsel to S.D. Warren Company, substantially in the form distributed to the Original Lenders prior to signing this Agreement;

 

(h)                                legal opinion of Hannes Snellman Attorneys Ltd, legal advisers to the Mandated Lead Arranger and the Agent regarding Finnish law, substantially in the form distributed to the Original Lenders prior to signing this Agreement; and

 

(i)                                     legal opinion of Freshfields Bruckhaus Deringer LLP (Amsterdam), legal advisers to the Mandated Lead Arranger, the Agent and the Original Lenders regarding Dutch law, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

 

4.                                      Other documents and evidence

 

(a)                                 The Group Structure Chart which shows the Group as at the Signing Date.

 

(b)                                 A copy, certified by an authorised signatory of the Company to be a true copy, of the Original Financial Statements of each Original Obligor.

 

(c)                                  Evidence that the fees, costs and expenses then due from the Company pursuant to Clause 11 (Fees) and Clause 16 (Costs and expenses) have been or will be paid on the Signing Date.

 

(d)                                 A certificate from the Company duly executed by an authorised signatory setting out the name and relevant details of each Material Subsidiary and for each Excluded Subsidiary:

 

(i)                                     the earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, as defined in Clause 21 (Financial Covenants)) of such Excluded Subsidiary as a percentage of the consolidated EBITDA (as defined in Clause 21 (Financial Covenants) of the Group; and

 

(ii)                                  the gross assets of such Excluded Subsidiary as a percentage of the consolidated gross assets of the Group.

 

(e)                                  “Know your customer” documentations and checks in respect of the Borrower (including, if necessary, the directors and shareholders thereof) and the Obligors.

 

(f)                                   Evidence of exchange control approval of the Financial Surveillance Department of the South African Reserve Bank and unconditional approval from the Financial Surveillance Department of South African Reserve Bank for all the terms contained in the Finance Documents and the other documents relating to the Finance Documents (including without limitation all pricing and fees and the permission for all affected Obligors to conclude and perform their obligations under such documents).

 

133

 

(g)                                  Confirmation by each Original Lender that the full amount of its Commitment in the Facility will be refinanced by OeKB and that it has received the refinancing undertaking (Refinanzierungszusage) by OeKB.

 

(h)                                 The Promissory Notes.

 

(i)                                     Evidence of

 

(i)                                     disbursement of all amounts from the Borrower to S.D. Warren Company under the US Intercompany Loan by way of transfer of the corresponding funds from an account held in Austria to an account in the US; or

 

(ii)                                  an irrevocable payment instruction from the Borrower to disburse the US Intercompany Loan to S.D. Warren Company by way of a transfer of the corresponding funds from an account held in Austria to an account in the US;

 

each in form and substance satisfactory to OeKB.

 

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Part B
 Conditions Precedent Required to be Delivered by an Additional Guarantor

 

1.                                      An Accession Letter, duly executed by the Additional Guarantor and the Company.

 

2.                                      A copy of the constitutional documents of the Additional Guarantor, including, in the case of:

 

(a)                                 an Austrian Obligor, a copy of the articles of association (Gesellschaftsvertrag), and a copy of an extract from the commercial register (Firmenbuch),

 

(b)                                 a Belgian Guarantor, up-to-date coordinated articles of association, a KBO Certificate and a non-bankruptcy certificate (both dated not earlier than fifteen (15) Business Days prior to the date of the Accession Letter);

 

(c)                                  a Dutch Guarantor, its deed of incorporation, its articles of association and a certified extract from the trade register;

 

(d)                                 a Finnish Guarantor, a certified copy of the articles of association and a certified extract from the trade register, each dated not earlier than seven (7) days prior to the date of the Accession Letter;

 

(e)                                  a Hong Kong Guarantor, a copy of the memorandum and articles of association, a copy of the certificate of incorporation and a copy of any certificate of change of name;

 

(f)                                  a German Guarantor (x) an extract from the Commercial Register (Handelsregister) (dated no earlier than ten (10) days prior to the date of the Accession Letter), certified by the competent Commercial Register; and (y) a copy of the current articles of association (Gesellschaftsvertrag) certified by the competent Commercial Register (in case of a corporation) or by a director of the relevant Original Obligor (in case of a partnership) and (z) the current shareholders’ list as filed with the Commercial Register (in case of a German limited liability company (Gesellschaft mit beschränkter Haftung)); and

 

(g)                                  to the extent applicable, any Additional Guarantor established in any other jurisdiction, the relevant local law equivalent.

 

3.                                      A copy of a resolution of the board of directors of each Additional Guarantor (other than an Additional Guarantor incorporated in Germany) and/or equivalent body under the respective applicable law of each Additional Guarantor (which for an Additional Guarantor incorporated in Germany is a shareholders’ resolution):

 

(a)                                 approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and perform the Finance Documents to which it is a party and (in respect of a Belgian Guarantor) setting out the reasons why the board of directors of the Belgian Guarantor consider that the entry into the Finance Documents to which it is a party, and in particular the assumption of its guarantee obligations in accordance with Clause 17 (Guarantee and indemnity) of this Agreement, is of benefit to the Belgian Guarantor;

 

(b)                                 authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf;

 

135

 

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

 

(d)                                 in the case of an Obligor other than the Company, authorising SISA to act as its agent in connection with the Finance Documents.

 

4.                                      If applicable, a copy of a resolution of the board of directors of the relevant company, establishing the committee referred to in paragraph 3 above.

 

5.                                      If applicable, a copy of a resolution signed by all the holders of the issued shares in the Additional Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Guarantor is a party or, in the case of a Belgian Guarantor, a written resolution of all shareholders of the Belgian Guarantor approving the provisions of the Finance Documents requiring an early repayment in the case of a change of control over the Belgian Guarantor, together with evidence that an extract of such resolution has been or will be filed with the clerk of the commercial court of the judicial district of the Belgian Guarantor in accordance with Article 556 of the Belgian the Company Code within fifteen (15) Business Days from the date of the Accession Letter.

 

6.                                      A copy of a resolution of the supervisory board (Aufsichtsrat) and/or advisory board (Beirat) (as applicable) of each Additional Guarantor incorporated in Austria approving the terms of, and transactions contemplated by, the Finance Documents to which it is a party and resolving that it executes the Finance Documents to which it is a party

 

7.                                      A copy of a resolution of the supervisory board (if any) of each Additional Guarantor incorporated in The Netherlands approving the terms of, and transactions contemplated by, the Finance Documents to which it is a party and resolving that it executes the Finance Documents to which it is a party.

 

8.                                      A copy of a resolution of the supervisory board (Aufsichtsrat) (if any and if required pursuant to the articles of association or applicable law) or advisory board (Beirat) (if any and if required pursuant to the articles of association or applicable law) of each Additional Guarantor incorporated in Germany approving the terms of, and transactions contemplated by, the Finance Documents to which it is a party and resolving that it executes the Finance Documents to which it is a party.

 

9.                                      A copy of a request for advice addressed to the works council (if any) of each Additional Guarantor incorporated in The Netherlands and a copy of the letter of such works council (if any) evidencing that such works council (if any) has given positive advice in respect of the Finance Documents and the transactions contemplated thereby

 

10.                               A certificate of the Additional Guarantor (signed by a director or other authorised signatory of such Additional Guarantor) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on it to be exceeded.

 

11.                               A certificate of an authorised signatory of the Additional Guarantor certifying that each copy document listed in this Part B of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Letter.

 

12.                               A copy of any other Authorisation or other document, opinion or assurance which the Agent (acting reasonably) considers to be necessary or desirable in connection with the entry 

 

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into and performance of the transactions contemplated by the Accession Letter or for the validity and enforceability of any Finance Document to which the Additional Guarantor will become a Party.

 

13.                               If available, the latest audited financial statements of the Additional Guarantor.

 

14.                               If the proposed Additional Guarantor is incorporated in The Republic of South Africa, any required approval of the Exchange Control Department of the South African Reserve Bank.

 

15.                               The following legal opinions, each addressed to the Agent and the Lenders:

 

(a)                                 a legal opinion of the legal advisers to the Agent in Austria, as to Austrian law in the form distributed to the Lenders prior to signing the Accession Letter; and

 

(b)                                 if the Additional Guarantor is incorporated in a jurisdiction other than Austria or is executing a Finance Document which is governed by a law other than Austrian law, a legal opinion of the legal advisers to the Agent in the jurisdiction of its incorporation or, as the case may be, the jurisdiction of the governing law of that Finance Document (the Applicable Jurisdiction) as to the law of the Applicable Jurisdiction and in the form distributed to the Lenders prior to signing the Accession Letter.

 

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SCHEDULE  3

 

UTILISATION REQUEST

 

From:                  [·]

 

To:                              [      ] as Agent

 

Dated: [·]

 

Dear Sirs

 

Sappi Papier Holding GmbH - EUR 142,000,000 Term Loan Facility Agreement dated 10  July  2012 (the Facility Agreement)

 

1.                                       We wish to borrow the Loan on the following terms:

 

	
Proposed   Utilisation Date:
    	
[·] (or, if that is not a Business Day, the next Business Day)
    
	
 
    	
 
    
	
Currency of the   Loan:
    	
EUR
    
	
 
    	
 
    
	
Amount:
    	
[·] or, if less, the Available Facility 
    
	
 
    	
 
    
	
Interest Period:
    	
[·]
    

 

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

 

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

 

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

 

5.                                       This Utilisation Request is irrevocable.

 

 

Yours faithfully

 

 

	
 
    	
 
    
	
authorised signatory   for
    	
 
    
	
the Obligors’   Agent acting on behalf of the Borrower
    	
 
    

 

138

 

SCHEDULE  4

 

MANDATORY COST FORMULAE

 

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 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 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 a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Agent. This percentage will be certified by that Lender in its notice to the Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in the Loan made from that Facility Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office.

 

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

 

(a)                                  in relation to a Sterling Loan:

 

	

    	
 per cent. per annum
    

 

(b)                                 in relation to the Loan in any currency other than Sterling:

 

	

    	
 per cent. per annum.
    

 

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 Margin and the Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate of interest specified in paragraph  (a)  of Clause 8.3 (Default interest)) payable for the relevant Interest Period on the Loan.

 

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.

 

139

 

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

 

E                                         is designed to compensate Lenders for amounts payable under the Fees Rules  and is calculated by the Agent as being the average of the most recent rates of charge supplied by the Reference Banks to the 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 Financial Services Authority Fees 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 Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the 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 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 Facility Office; and

 

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

 

Each Lender shall promptly notify the 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 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 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 

 

140

 

from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office.

 

10.                                 The 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 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 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 Agent may from time to time, after consultation with the Company 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.

 

141

 

SCHEDULE  5

 

FORM  OF TRANSFER CERTIFICATE

 

Part  A
 Form  of Transfer Certificate

 

To:                              [           ] as Agent

 

From:                  [The Existing Lender] (the Existing  Lender) and [The New Lender] (the  New Lender)

 

Dated: [·]

 

Sappi Papier Holding GmbH - EUR 142,000,000 Term Loan Facility Agreement dated 10  July  2012 (the Facility Agreement)

 

1.                                       We refer to the Facility Agreement and to the Intercreditor Agreement (as defined in the Facility Agreement). This agreement (the Agreement) shall take effect as a Transfer Certificate for the purpose of the Facility Agreement [and as a Creditor/Agent Accession Undertaking (as defined in the Intercreditor Agreement) for the purposes of the Intercreditor Agreement](2). Terms defined in the Facility Agreement have the same meaning in this Agreement.

 

2.                                       We refer to Clause 23.5 (Procedure for transfer) of the Facility Agreement. The Existing Lender and the New Lender agree to the Existing Lender transferring by [novation and assumption (Vertragsübernahme)/assignment (Zession)] to the New Lender all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 23.5 (Procedure for transfer) of the Facility Agreement.

 

3.                                       The proposed Transfer Date is [·].

 

4.                                       The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 30.2 (Addresses) of the Facility Agreement are set out in the Schedule.

 

5.                                       The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c)  of Clause 23.4 (Limitation of responsibility of Existing Lenders) of the Facility Agreement.

 

6.                                       The New Lender represents to the Agent and the Existing Lender that:

 

(a)                                  it does not have its seal (Sitz), place of management (Geschäftsleitung) or a permanent establishment (Betriebsstätte) in the Republic of Austria; and

 

(b)                                 it is duly licensed or “passported” to provide lending services to Austrian borrowers and to enter into this Agreement and any other Finance Document to which it is a party and to perform and comply with its obligations thereunder and that it has understood the consequences a lack of the requisite licence or “passport” would have and accepts those risks.

 

(2)             To be included only on or following an Intercreditor Agreement Accession.

 

142

 

7.                                       The New Lender confirms to the Agent and the Company for the purposes of paragraph (b)  of Clause 12.3 (Tax indemnity) that it [is]/[is not] a Treaty Lender.

 

8.                                       This Transfer Certificate is signed at [place outside of Austria].

 

9.                                       [We refer to clause 19.2 (Change of Senior Creditor) of the Intercreditor Agreement. In consideration of the New Lender being accepted as a Senior Creditor for the purposes of the Intercreditor Agreement (and as defined therein), the New Lender confirms that, as from the Transfer Date, it intends to be party to the Intercreditor Agreement as a Senior Creditor, and undertakes to perform all the obligations expressed in the Intercreditor Agreement to be assumed by a Senior Creditor and agrees that it shall be bound by all the provisions of the Intercreditor Agreement, as if it had been an original party to the Intercreditor Agreement.](3)

 

 

10.                                 The place of performance of the rights and obligations of the Existing Lender and the New Lender hereunder shall be:

 

(a)                                  in relation to any payment by the New Lender to the Existing Lender (or vice versa), the place at which payment to the receiving Lender is to be made pursuant to Clause 28.1 (Payments to the Agent) of the Facility Agreement; and

 

(b)                                 in relation to any other obligations and liabilities of the Existing Lender and the New Lender under or in connection with this Transfer Certificate, the premises of the Agent at [place outside of Austria] or any other place outside of Austria as the Agent specifies from time to time, and the performance of any obligation or liability under or in connection with this Transfer Certificate within the Republic of Austria shall not constitute discharge or performance of such obligation or liability.

 

11.                                 This Agreement may be executed by a number of counterparts and this has the same effect as if the signatures were on a single copy of the Agreement.

 

12.                                 This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by Austrian law.

 

BRINGING THIS DOCUMENT OR ANY CERTIFIED COPY OF THIS DOCUMENT INTO THE REPUBLIC OF AUSTRIA AS WELL AS ANY WRITTEN CONFIRMATION (INCLUDING E-MAIL AND FAX) OR WRITTEN REFERENCE (INCLUDING E-MAIL AND FAX) TO THIS DOCUMENT MAY  CAUSE THE IMPOSITION OF AUSTRIAN STAMP DUTY TAX. PLEASE READ CLAUSES 12.5 (STAMP TAXES), 28.1 (PAYMENTS TO THE AGENT), 30 (NOTICES) AND 35 (PLACE  OF  PERFORMANCE) OF THE FACILITY AGREEMENT IN CONNECTION WITH THE FOREGOING.

 

Note: The execution of this Transfer Certificate before the Intercreditor Agreement Accession will and thereafter may not transfer a proportionate share of the existing lender’s interest in the Conditional Security in all jurisdictions. It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Conditional Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

 

(3)             To be included only on or following an Intercreditor Agreement Accession.

 

143

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred

 

[insert relevant details]

 

[Facility Office address, fax number and attention details for notices and account details for payments,

 

[must be outside Austria]

 

	
[Existing Lender]
    	
 
    	
[New Lender]
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
By:
    

 

 

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as

 

[·]

 

[Agent]

 

 

By:

 

144

 

Part  B
 Form  of Austrian Transfer Certificate

 

To:                                                      [The New Lender] (the New Lender)

 

Copy to:                          [               ] as Agent

 

From:                                          [The Existing Lender] (the Existing Lender)

 

Dated: [·]

 

Sappi Papier Holding GmbH - EUR 142,000,000 Term Loan Facility Agreement dated 10  July  2012 (the Facility Agreement)

 

1.                                       We refer to the Facility Agreement and to the Intercreditor Agreement (as defined in the Facility Agreement). This agreement (the Agreement) shall take effect as an Austrian Transfer Certificate for the purpose of the Facility Agreement [and as a Creditor/Agent Accession Undertaking (as defined in the Intercreditor Agreement) for the purposes of the Intercreditor Agreement](4). Terms defined in the Facility Agreement have the same meaning in this Agreement.

 

2.                                       We refer to Clause 23.5 (Procedure for transfer) of the Facility Agreement:

 

(a)                                  the Existing Lender herewith offers the New Lender to transfer by [novation and assumption (Vertragsübernahme)/assignment (Zession)] to the New Lender all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 23.5 (Procedure for transfer) of the Facility Agreement.

 

(b)                                 the proposed Transfer Date is [·].

 

(c)                                  the Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 30.2 (Addresses) of the Facilities Agreement are set out in the Schedule.

 

3.                                       By effecting payment of the Assignment and Transfer Fee, the New Lender shall be deemed to expressly acknowledge the limitations on the Existing Lender’s obligations set out in paragraph (c)  of Clause 23.4 (Limitation of responsibility of Existing Lenders) of the Facility Agreement.

 

4.                                       By effecting payment of the Assignment and Transfer Fee, the New Lender shall be deemed to represent and warrant to the Agent and the Existing Lender that it is duly licensed or “passported” to provide lending services to Austrian borrowers and to enter into this Agreement and any other Finance Document to which it is a party and to perform and comply with its obligations thereunder and that it has understood the consequences a lack of the requisite license or “passport” would have and accepts those risks.

 

5.                                       This Austrian Transfer Certificate is signed by the Existing Lender at [place outside of Austria].

 

(4)             To be included only on or following an Intercreditor Agreement Accession.

 

145

 

6.                                       By effecting payment of the Assignment and Transfer Fee, the New Lender shall be deemed to confirm to the Agent and the Company for the purposes of paragraph (b)  of Clause 12.3 (Tax indemnity) that it [is]/[is not] a Treaty Lender.

 

7.                                       [We refer to Clause 19.2 (Change of Senor Creditor) of the Intercreditor Agreement. In consideration of the New Lender being accepted as a Senior Creditor for the purposes of the Intercreditor Agreement (and as defined therein), by effecting payment of the Assignment and Transfer Fee the New Lender confirms that, as from the Transfer Date, it intends to be party to the Intercreditor Agreement as a Senior Creditor, and undertakes to perform all the obligations expressed in the Intercreditor Agreement to be assumed by a Senior Creditor and agrees that it shall be bound by all the provisions of the Intercreditor Agreement, as if it had been an original party to the Intercreditor Agreement.] (5)

 

8.                                       The place of performance of the rights and obligations of the Existing Lender and the New Lender hereunder shall be:

 

(a)                                  in relation to any payment by the New Lender to the Existing Lender (or vice versa), the place at which payment to the receiving Lender is to be made pursuant to Clause 27.1 (Payments to Lenders) of the Facility Agreement; and

 

(b)                                 in relation to any other obligations and liabilities of the Existing Lender and the New Lender under or in connection with this Austrian Transfer Certificate, the premises of the Agent in Munich or any other place outside of Austria as the Agent specifies from time to time, and the performance of any obligation or liability under or in connection with this Transfer Certificate within the Republic of Austria shall not constitute discharge or performance of such obligation or liability.

 

9.                                       The offer by the Existing Lender to the New Lender can be accepted exclusively by payment of the Assignment and Transfer Fee to the Agent and, upon receipt by the Agent of the Assignment and Transfer Fee, the New Lender shall become a Lender.

 

10.                                 This Austrian Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by Austrian law.

 

BRINGING THIS DOCUMENT OR ANY CERTIFIED COPY OF THIS DOCUMENT INTO THE REPUBLIC OF AUSTRIA AS WELL AS ANY WRITTEN CONFIRMATION (INCLUDING E-MAIL AND FAX) OR WRITTEN REFERENCE (INCLUDING E-MAIL AND FAX) TO THIS DOCUMENT MAY  CAUSE THE IMPOSITION OF AUSTRIAN STAMP DUTY TAX. PLEASE READ CLAUSES 12.5 (STAMP TAXES), 28.1 (PAYMENTS TO THE AGENT), 30 (NOTICES) AND 35 (PLACE OF PERFORMANCE) OF THE FACILITY AGREEMENT IN CONNECTION WITH THE FOREGOING.

 

Note: The execution of this Austrian Transfer Certificate before the Intercreditor Agreement Accession will and thereafter may not transfer a proportionate share of the existing lender’s interest in the Conditional Security in all jurisdictions. It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Conditional Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

 

(5)             To be included only on or following an Intercreditor Agreement Accession.

 

146

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred

 

[insert relevant details]

 

[Facility Office address, fax number and attention details for notices and account details for payments,

 

[NB must be outside Austria]

 

[Existing Lender]

 

By:

 

147

 

SCHEDULE 6

 

FORM OF ACCESSION LETTER

 

To:                              [·] as Agent

 

From:                  [Subsidiary] and [Sappi Limited]/[Obligors’ Agent]

 

Dated: [·]

 

Dear Sirs

 

Sappi Papier Holding GmbH — EUR 142,000,000 Term Loan Facility Agreement dated 10 July 2012 (the Facility Agreement)

 

1.                                       We refer to the Facility Agreement. This letter (the Accession Letter) shall take effect as an Accession Letter for the purposes of the Facility Agreement. Terms defined in the Facility Agreement have the same meaning in this Accession Letter unless given a different meaning in this Accession Letter.

 

2.                                       [Subsidiary] agrees to become an Additional Guarantor and to be bound by the terms of the Facility Agreement and the other Finance Documents as an Additional Guarantor pursuant to Clause 24.2 (Additional Guarantors) of the Facility Agreement. [Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company with registered number [register number].

 

3.                                       [Subsidiary’s] administrative details are as follows:

 

Address:

 

Fax No:

 

Attention:

 

4.                                       This Accession Letter is signed at [place].

 

5.                                       This Accession Letter and any non-contractual obligations arising out of or in connection with it are governed by Austrian law.

 

THIS ACCESSION LETTER has been signed acting on behalf of the Agent, signed acting on behalf of the Company [by the Obligors’ Agent] and executed by [Subsidiary] and is delivered on the date stated above.

 

The Subsidiary

 

By: [Subsidiary]

 

 

The [Obligors’ Agent]/[Sappi Limited]

 

By:

 

148

 

The [Security] Agent

 

[Full Name of Current [Security] Agent]

 

By:

 

Date:

 

149

 

SCHEDULE 7

 

FORM OF RESIGNATION LETTER

 

To:                              [·] as Agent

 

From:                  [resigning Obligor] and [the Company]/[Obligors’ Agent]

 

Dated: [·]

 

Dear Sirs

 

Sappi Papier Holding GmbH — EUR 142,000,000 Term Loan Facility Agreement dated 10 July 2012 (the Facility Agreement)

 

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

 

2.                                       Pursuant to Clause 24.4 (Resignation of a Guarantor), we request that [resigning Obligor] be released from its obligations as a Guarantor under the Facility Agreement.

 

3.                                       We confirm that:

 

(a)                                  no Default is continuing or would result from the acceptance of this request; and

 

(b)                                 [·]

 

4.                                       This Resignation Letter is signed at [place].

 

5.                                       This Resignation Letter is governed by Austrian law.

 

	
[The   Company]/[Obligors’ Agent]
    	
[Subsidiary]
    
	
 
    	
 
    
	
By:
    	
By:
    

 

150

 

SCHEDULE 8

 

FORM OF COMPLIANCE CERTIFICATE

 

To:                              [·] as Agent

 

From:                  [The Company]

 

Dated: [·]

 

Dear Sirs

 

Sappi Papier Holding GmbH - EUR 142,000,000 Term Loan Facility Agreement dated 10 July 2012 (the Facility Agreement)

 

1.                                       We refer to the Facility Agreement. Unless stated otherwise, capitalised terms used herein, shall have the same meaning as ascribed to the term in the Facility Agreement.

 

2.                                       This is a Compliance Certificate.

 

3.                                       We confirm that:

 

(a)                                  [in respect of the Quarter ending on [·] EBITDA was [·] times Consolidated Net Interest Expense and the covenant contained in sub-clause (a) of Clause 20.1 (Financial covenants) [has/has not] been complied with;

 

(b)                                 in respect of the Quarter ending on [·] Net Debt was [·] and EBITDA on a rolling aggregate basis for the immediately preceding 12 months ending on the last day of the Quarter ending on [·] was [·]. Therefore, the ratio of Net Debt to EBITDA was at that time equal to [·] and the covenant contained in sub-clause (b) of Clause 20.1 (Financial covenants) [has/has not] been complied with.

 

(c)                                  The ratio of Net Debt as at the end of any Relevant Period ending on the last day of each Quarter to Total Capitalisation for the Relevant Period does not exceed 65%]

 

4.                                       [As at the end of our Financial Year, the Material Subsidiaries are as follows:(6)

 

[·]]

 

5.                                       We confirm that the below-mentioned companies account for at least 80% of EBITDA of the Guarantor Coverage Group and 80% of the consolidated gross assets of the Guarantor Coverage Group [·].

 

6.                                       [We confirm that no Default is continuing.](7)

 

7.                                       This Compliance Certificate is signed [place].

 

(6)             Paragraph 4 included in the Annual Compliance Certificate only.

 

(7)             If this statement cannot be made, the certificate should identify any default that is continuing and the steps, if any, being taken to remedy it.

 

151

 

	
Signed:
    	
 
    	
 
    
	
Director
    	
 
    
	
for and on behalf   of
    	
 
    
	
Sappi   Papier Holding GmbH
    	
 
    
	
 
    	
 
    
	
Signed:
    	
 
    	
 
    
	
Director
    	
 
    
	
for and on behalf   of
    	
 
    
	
Sappi   Papier Holding GmbH
    	
 
    
				

 

152

 

SCHEDULE 9

 

STAMP DUTY GUIDELINES

 

1.                                       Introduction

 

(a)                                  These stamp duty guidelines (the Guidelines) shall apply to all written communication of the parties to the facility agreement of which this Schedule 9 forms part (the Facility Agreement).

 

(b)                                 In these Guidelines, unless a contrary indication appears a term defined in the Facility Agreement (including by way of reference) has the same meaning when used in these Guidelines.

 

(c)                                  Any reference in these Guidelines (as well as in the Stamp Duty Sensitive Documents) to (i) written shall mean that what is “written” was translated into letters (Buchstaben) that are or can be made visible on a physical or electronic device of whatever type and format, including paper and screen, and, accordingly, communication, documents or notices being in writing shall include not only paper-form (letter or fax) communication, documents or notices but also electronic communication, documents or notices, including by way of e-mail and (ii) signed communication, documents or notices refers to written communication, documents or notices that carry a manuscript, digital or electronic or other technically reproduced signature, and signature shall be construed accordingly.

 

2.                                       Guidelines for Written Communication

 

(a)                                  Subject to paragraphs 2(b) and 2(c) below, signed  written  communication that records or otherwise provides evidence of a transaction (Rechtsgeschäft) contemplated by, or referenced in, any Stamp Duty Sensitive Document, whether in the body of the relevant communication, a schedule, an attachment, an annex or an appendix referred to therein or incorporated by reference (Bezugnahme), may only be made from an address outside of the Republic of Austria to an address outside of the Republic of Austria. For the avoidance of doubt, e-mails where the server on which such e-mails will be received or from which such e-mails will be sent is located in the Republic of Austria (e.g. this may be indicated by an e-mail address having a country code top level domain “.at”) or other e-mail addresses where the person sending or the person receiving such e-mail have their ordinary workplace (Arbeitsplatz) in the Republic of Austria must not be signed (see also paragraphs 2(c) and 2(d) below).

 

(b)                                 Letters that record or otherwise provide evidence of a transaction (Rechtsgeschäft) contemplated by, or referenced in, any Stamp Duty Sensitive Document, whether in the body of the letter, a schedule, an attachment, an annex or an appendix referred to therein or incorporated by reference (Bezugnahme), may be brought or sent into, or produced in, the Republic of Austria if in the following format, provided that no Stamp Duty Sensitive Document is attached:

 

[party’s letterhead]

 

Dear....,
 [text of message]
 Kind regards

 

153

 

NO SIGNATURE OF PARTY (WHETHER MANUSCRIPT, DIGITAL OR ELECTRONIC) SENDING THE LETTER 
 NO CONTACT DETAILS
 CONFIDENTIALITY NOTICES AND OTHER FOOTERS ALLOWED
 DO NOT ATTACH A STAMP DUTY SENSITIVE DOCUMENT

 

(c)                                  E-mails and fax messages that record or otherwise provide evidence of a transaction (Rechtsgeschäft) contemplated by, or referenced in, any Stamp Duty Sensitive Document, whether in the body of the e-mail or fax, a schedule, an attachment, an annex or an appendix referred to therein or incorporated by reference (Bezugnahme), may be brought or sent into, or produced in, the Republic of Austria if in the following format, provided that no Stamp Duty Sensitive Document is attached:

 

Dear....,
 [text of message].
 Kind regards
 NO REFERENCE TO INDIVIDUAL / COMPANY NAME
 NO SIGNATURE OF PARTY (WHETHER MANUSCRIPT, DIGITAL OR ELECTRONIC) SENDING THE E-MAIL / FAX 
 NO CONTACT DETAILS OR OTHER AUTOMATICALLY GENERATED FOOTERS THAT REFER TO PARTY
 CONFIDENTIALITY NOTICES ALLOWED
 DO NOT ATTACH A STAMP DUTY SENSITIVE DOCUMENT

 

In addition, the footer of such e-mail must not contain the company name, contact details or any other information allowing identification of the sender. The company name, contact details etc. of the original sender of a reply or forwarded message need not be deleted.

 

(d)                                 No e-mails that refer to Stamp Duty Sensitive Documents shall be sent (other than in accordance with paragraph 2 of these Guidelines) if the automatic e-mail signature (including company name etc.) cannot be suppressed.

 

154

 

SIGNATURES

 

The Company

 

SAPPI LIMITED

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

The Borrower

 

SAPPI PAPIER HOLDING GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

The Obligors’ Agent

 

SAPPI INTERNATIONAL SA

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

	
Address:
    	
Chaussee de la Hulpe   154  

1170   Watermael-Boitsfort  

Belgium
    
	
 
    	
 
    
	
Fax:
    	
+32 (0) 2676 984
    
	
 
    	
 
    
	
Attention:
    	
Jörg Passler
    

 

155

 

The Original Guarantors

 

SAPPI LIMITED

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI INTERNATIONAL SA

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SD WARREN COMPANY

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
Name:
    	
J.H. Passler
    	
 
    	
Name:
    	
S.J. Blyth
    

 

Title: Attorney-in-fact

 

 

SDW HOLDINGS CORPORATION

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
Name:
    	
J.H. Passler
    	
 
    	
Name:
    	
S.J. Blyth
    

 

Title: Attorney-in-fact

 

 

SAPPI CLOQUET LLC

 

By: S.D. Warren Company, its Sole Manager

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
Name:
    	
J.H. Passler
    	
 
    	
Name:
    	
S.J. Blyth
    

 

Title: Attorney-in-fact

 

 

SAPPI LANAKEN NV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

156

 

SAPPI DEUTSCHLAND GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI DEUTSCHLAND HOLDING GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI LANAKEN PRESS PAPER NV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI PULP ASIA LIMITED

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI NIJMEGEN BV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI ALFELD GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI MAASTRICHT BV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI NETHERLANDS BV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI EHINGEN GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

157

 

SAPPI EUROPE SA

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI GRATKORN GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI MAGNOSTAR GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI AUSTRIA PRODUKTIONS — GMBH & CO. KG

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI STOCKSTADT GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI FINLAND I OY

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

158

 

The Mandated Lead Arranger

 

UNICREDIT BANK AUSTRIA AG

 

	
By:
    	
/s/ C Nell
    	
 
    	
By:
    	
/s/ A Hilger
    
	
 
    	
C Nell
    	
 
    	
 
    	
A Hilger
    

 

 

The Original Lenders

 

UNICREDIT BANK AUSTRIA AG

 

	
By:
    	
/s/ C Nell
    	
 
    	
By:
    	
/s/ A Hilger
    
	
 
    	
C Nell
    	
 
    	
 
    	
A Hilger
    

 

 

ERSTE GROUP BANK AG

 

	
By:
    	
/s/ S Hönigsberger
    	
 
    	
 
    	
 
    
	
 
    	
S Hönigsberger
    	
 
    	
 
    	
 
    

 

 

BAWAG P.S.K. BANK FÜR ARBEIT UND WIRTSCHAFT UND ÖSTERREICHISCHE POSTSPARKASSE AKTIENGESELLSCHAFT

 

	
By:
    	
/s/ H Heepen
    	
 
    	
By:
    	
/s/ O Hermann
    
	
 
    	
H Heepen
    	
 
    	
 
    	
O Hermann
    

 

 

RAIFFEISEN BANK INTERNATIONAL AG

 

	
By:
    	
/s/ J Geberth
    	
 
    	
By:
    	
/s/ M Frisch
    
	
 
    	
J Geberth
    	
 
    	
 
    	
M Frisch
    

 

 

The Agent

 

UNICREDIT BANK AUSTRIA AG

 

	
By:
    	
/s/ C Nell
    	
 
    	
By:
    	
/s/ A Hilger
    
	
 
    	
C Nell
    	
 
    	
 
    	
A Hilger
    

 

159

 

Dated 12 July 2012

 

SAPPI PAPIER HOLDING GMBH

 

UNICREDIT BANK AUSTRIA AG
  as Mandated Lead Arranger

 

with

 

UNICREDIT BANK AUSTRIA AG
  acting as Agent

 

	
 
    	
 
    	
 
    
	
 
    	
SIDE   LETTER TO A EUR 142,000,000
    	
 
    
	
 
    	
TERM   LOAN FACILITY AGREEMENT
    	
 
    
	
 
    	
 
    	
 
    

 

BRINGING THIS DOCUMENT OR ANY CERTIFIED COPY OF THIS DOCUMENT INTO THE REPUBLIC OF AUSTRIA AS WELL AS ANY WRITTEN CONFIRMATION (INCLUDING E-MAIL AND FAX) OR WRITTEN REFERENCE (INCLUDING E-MAIL AND FAX) TO THIS DOCUMENT MAY CAUSE THE IMPOSITION OF AUSTRIAN STAMP DUTY TAX. PLEASE READ CLAUSE 12.5 (STAMP TAXES), 28.1 (PAYMENTS TO THE AGENT), 30 (NOTICES) AND 35 (PLACE OF PERFORMANCE) OF THE OEKB FACILITY AGREEMENT IN CONNECTION WITH THE FOREGOING.

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS   AND INTERPRETATION
    	
 
    	
1
    
	
2.
    	
CERTAIN   DEFINITIONS
    	
 
    	
2
    
	
3.
    	
EXECUTION   OF THE SIDE LETTER
    	
 
    	
4
    
	
4.
    	
STAMP   TAXES
    	
 
    	
4
    
	
5.
    	
AGENT   TO HOLD ORIGINAL DOCUMENTS
    	
 
    	
5
    
	
6.
    	
NOTICES
    	
 
    	
5
    
	
7.
    	
PLACE   OF PERFORMANCE
    	
 
    	
7
    
	
8.
    	
DELIVERY   OF NOTICES BY THE AGENT
    	
 
    	
8
    
	
9.
    	
INDEMNITY   TO THE AGENT
    	
 
    	
8
    
	
10.
    	
GOVERNING   LAW
    	
 
    	
8
    
	
11.
    	
ENFORCEMENT
    	
 
    	
8
    
	
SCHEDULE 1 THE ORIGINAL PARTIES
    	
 
    	
10
    
	
PART A THE ORIGINAL   OBLIGORS
    	
 
    	
10
    
	
PART B THE ORIGINAL   LENDERS
    	
 
    	
11
    
	
SCHEDULE 2 EXISTING SECURITY AND GUARANTEES
    	
 
    	
12
    
	
SCHEDULE 3 EXISTING SUBSIDIARY EXTERNAL INDEBTEDNESS
    	
 
    	
15
    
	
SCHEDULE 4 STAMP DUTY GUIDELINES
    	
 
    	
17
    
	
SCHEDULE 5 CONDITIONAL SECURITY DOCUMENTS
    	
 
    	
19
    
	
PART A AUSTRIAN SECURITY   DOCUMENTS
    	
 
    	
19
    
	
PART B BELGIAN SECURITY   DOCUMENTS
    	
 
    	
19
    
	
PART C DUTCH SECURITY   DOCUMENTS
    	
 
    	
20
    
	
PART D FINNISH SECURITY   DOCUMENTS
    	
 
    	
20
    
	
PART E GERMAN SECURITY   DOCUMENTS
    	
 
    	
20
    
	
PART F SOUTH AFRICAN SECURITY   DOCUMENTS
    	
 
    	
20
    
	
PART G US SECURITY   DOCUMENTS
    	
 
    	
21
    
	
PART H ENGLISH SECURITY   DOCUMENT
    	
 
    	
21
    
	
PART I 2011 SECURITY   DOCUMENTS
    	
 
    	
21
    
	
PART J 2012 SECURITY   DOCUMENTS
    	
 
    	
23
    

 

I

 

THIS SIDE LETTER is dated 12 July 2012 and made

 

BETWEEN:

 

(1)                                  SAPPI LIMITED  a company incorporated under the laws of the Republic of South Africa (the  Company);

 

(2)                                 SAPPI PAPIER HOLDING GMBH, a limited liability company incorporated under the laws of the Republic of Austria (the Borrower);

 

(3)                                  THE ENTITIES listed in Part A of Schedule 1 (The Original Obligors) as original guarantors (the Original Guarantors);

 

(4)                                  UNICREDIT BANK AUSTRIA AG as mandated lead arranger  (the Mandated  Lead  Arranger);

 

(5)                                  THE FINANCIAL INSTITUTIONS listed in Part B of Schedule 1 (The Original Lenders) as original lenders (the Original Lenders); and

 

(6)                                  UNICREDIT BANK AUSTRIA AG as agent of the Lenders (the Agent),

 

together the Parties.

 

INTRODUCTION:

 

(A)                              The Company, the Borrower, the Original Guarantors, the Mandated Lead Arranger, the Original Lenders and the Agent have entered into a EUR 142,000,000 term loan facility agreement, dated 10 July 2012 (the OeKB  Facility Agreement).

 

(B)                                In connection with the OeKB Facility Agreement, the Parties have agreed to enter into this side letter, pursuant to the terms of which certain definitions, terms and provisions with respect to the OeKB Facility Agreement shall be further set out.

 

(C)                                This side letter is the Side Letter as referred to in the OeKB Facility Agreement.

 

IT IS AGREED as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Incorporation of defined terms

 

(a)                                  Unless a contrary indication appears, a term defined in the OeKB Facility Agreement (including any references therein to the Intercreditor Agreement) has the same meaning in this Side Letter.

 

(b)                                 Unless a contrary indication appears, the principles of construction set out in the OeKB Facility Agreement shall have effect as if set out in this Side Letter.

 

1.2                               Clauses

 

In this Side Letter any reference to a Clause or a Schedule is, unless the context otherwise requires, a reference to a Clause of or a Schedule to this Side Letter.

 

1

 

1.3                               OeKB Facility Agreement

 

(a)                                  The Parties confirm that, subject to paragraph (b) below, this Side Letter does not, and is not intended to, extend, renew, restate or replace the OeKB Facility Agreement.

 

(b)                                 The Parties agree that the OeKB Facility Agreement is subject to this Side Letter and in the event of any inconsistency between the OeKB Facility Agreement and the Side Letter, this Side Letter shall prevail.

 

1.4                               Intercreditor Agreement

 

As of the date of the Intercreditor Agreement Accession, this Side Letter is subject to the Intercreditor Agreement and in the event of any inconsistency between this Side Letter and the Intercreditor Agreement, the Intercreditor Agreement shall prevail. The Finance Parties confirm that they are aware of the provisions of the Intercreditor Agreement and that they have received a copy thereof.

 

2.                                      CERTAIN DEFINITIONS

 

The Parties agree on the following definitions:

 

2009  Bonds means the USD 300,000,000 12% and EUR 350,000,000 11.75% senior secured notes due 2014 issued by PE Paper Escrow GmbH pursuant to the terms of the 2009 Bonds Indenture.

 

2009  Bonds Indenture means senior secured notes indenture dated 29 July 2009 between, among others, PE Paper Escrow GmbH and the Bond Trustee.

 

2011 Bonds means the EUR 250,000,000 senior secured notes due 2018 and USD 350,000,000 Senior Secured Notes due 2021 issued by the Borrower pursuant to the terms of the 2011 Bonds Indentures.

 

2011 Bonds Indentures means the senior secured notes indentures dated 14 April 2011 between, among others, the Borrower and the Bond Trustee.

 

2011 Security Documents means each of the documents listed in Part I of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

2012  Bonds means the USD 400,000,000 7.750% Senior Secured Notes due 2017 and the USD 300,000,000 8.375% Senior Secured Notes due 2019 issued by the Borrower pursuant to the terms of the 2012 Bonds Indentures.

 

2012 Bonds Indentures means the senior secured notes indentures dated 5 July 2012 between, among others, the Borrower and the Bond Trustee.

 

2012 Security Documents means each of the documents listed in Part J of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

Austrian Security Documents means each of the Austrian security documents described in Part A of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

2

 

Belgian Security Documents means each of the Belgian security documents listed in Part B of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

Bond Trustee means The Bank of New York Mellon.

 

Conditional Security means any Security created or expressed to be created in favour of the Security Agent pursuant to the Conditional Security Documents.

 

Conditional Security Documents means each of Austrian Security Documents, the Belgian Security Documents, the Dutch Security Documents, the English Security Document, the Finnish Security Documents, the German Security Documents, the South African Security Documents, the US Security Documents, the 2011 Security Documents, the 2012 Security Documents, together with any other document entered into by an Obligor or any other party to these documents creating or expressed to create or confirm any security over all or any part of its assets in respect of the Secured Obligations.

 

Conditional Security Reservations means the limitation of enforcement by laws relating to bankruptcy, insolvency, liquidation, reorganisation, court schemes, moratoria, administration fraudulent transfers and other laws generally affecting the rights of creditors, public policy, general principles of equity, the time barring of claims under applicable limitations acts and any qualifications relating to matters of law contained in or referred to in the legal opinions to be delivered to the Agent pursuant to paragraph 3 of Part A of Schedule 2 (Conditions Precedent to Initial Utilisation) of the OeKB Facility Agreement or paragraph 15 of Part B of Schedule 2 (Conditions Precedent required to be delivered by an Additional Guarantor) of the OeKB Facility Agreement.

 

Dutch Security Documents means each of the Dutch security documents listed in Part C of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

English Security Document means the English security document listed in Part H of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

Existing Finance Documents means the existing subsidiary finance documents set out in Schedule 3 (Existing Subsidiary External Indebtedness).

 

Existing Facility means the existing EUR 350,000,000 revolving credit facility made available to inter alios the Borrower pursuant to a credit agreement dated 27 August 2009 made between, amongst others, the Company, the Borrower, the Original Guarantors (as defined therein) and the Lenders (as defined therein), as amended and restated on 28 April 2011.

 

Existing Security means the existing Security listed in Schedule 2 (Existing Security and Guarantees).

 

Finnish Security Documents means each of the Finnish security documents listed in Part D of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

German Security Documents means each of the German security documents listed in Part E of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

3

 

Intercreditor Agreement means the intercreditor agreement in relation to, among other things, the sharing and ranking of the Conditional Security (defined as Transaction Security therein) dated 27 August 2009 made between among others, the Original Obligors under the Existing Facility, the Lenders under the Existing Facility and the Bond Trustee.

 

SARB Approvals means any authorisation consent, approval, resolution, licence, exemption, filings, registration or clearance from the Financial Surveillance Department of the South African Reserve Bank in respect of the approvals required in connection with the Facility and the 2012 Bonds and the Finance Documents (including the South African Security Documents) including, without limitation, the approvals set out in paragraph 4(f) of Part A of Schedule 2 (Conditions Precedent to Initial Utilisation) of the OeKB Facility Agreement.

 

Side Letter means this side letter.

 

South African Security Documents means each of the South African security documents listed in Part F of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

Stamp Duty Guidelines means the stamp duty guidelines set out in Schedule 4 (Stamp Duty Guidelines).

 

Stamp Duty Sensitive Document means (i) any original of any Existing Finance Document, this Side Letter, the 2009 Bonds, the 2009 Bonds Indenture, the 2011 Bonds, the 2011 Bonds Indentures, the 2012 Bonds, the 2012 Bonds Indentures, the Conditional Security Documents, the Existing Facility, any document entered into by an Obligor creating or expressed to create any Existing Security, the Intercreditor Agreement, the SARB Approvals and any other document designated as Stamp Duty Sensitive Document by the Agent and the Borrower and (ii) any signed document (including email, PDF, TIF and other comparable formats) that constitutes a deed (Urkunde) within the meaning of § 15 of the Austrian Stamp Duty Act (as interpreted by the Austrian tax authorities), whether documenting or confirming the entering into of the relevant transaction (rechtserzeugende Urkunde) or documenting that the relevant transaction has been entered into (rechtsbezeugende Urkunde), or a substitute deed (Ersatzurkunde) within the meaning of § 15 of the Austrian Stamp Duty Act (as interpreted by the Austrian tax authorities), including, without limitation, any notarised copy, any certified copy and any written minutes recording the transactions (Rechtsgeschäfte) contemplated by, or referenced in, any Existing Finance Document, this Side Letter, the 2009 Bonds, the 2009 Bonds Indenture, the 2011 Bonds, the 2011 Bonds Indentures, the 2012 Bonds, the 2012 Bonds Indentures, the Conditional Security Documents, the Existing Facility, any document entered into by an Obligor creating or expressed to create any Existing Security, the Intercreditor Agreement, the SARB Approvals and any other document designated as Stamp Duty Sensitive Document by the Agent and the Borrower.

 

US Security Documents means each of the US security documents listed in Part G of Schedule 5 (Conditional Security Documents), in each case securing the Secured Obligations.

 

3.                                      EXECUTION OF THE SIDE LETTER

 

This Side Letter shall not be entered into before the Signing Date.

 

4.                                      STAMP TAXES

 

No Party shall bring or send to, or otherwise produce in, Austria a Stamp Duty Sensitive Document or communicate in writing other than in compliance with the Stamp Duty Guidelines, in each case other than in the event that:

 

4

 

(a)                                  it does not cause a liability of a Party to pay stamp duty or other Tax in Austria;

 

(b)                                 a Party wishes to enforce any of its rights under or in connection with a Finance Document in Austria and is only able to do so (including, without limitation, by reason of any objection or defence raised by an Obligor in any form of proceedings in Austria) by bringing or sending to, or otherwise producing in, Austria a Stamp Duty Sensitive Document and it would not be sufficient for that Party to bring or send to, or otherwise produce in, Austria a document that is not a Stamp Duty Sensitive Document for the purposes of such enforcement; in furtherance of the foregoing, no Party shall (1) object to the introduction into evidence of an uncertified copy of any Stamp Duty Sensitive Document or raise a defence to any action or to the exercise of any remedy on the basis of an original or certified copy of any Stamp Duty Sensitive Document not having been introduced into evidence, unless such uncertified copy actually introduced into evidence does not accurately reflect the content of the original document and (2) if such Party is a party to the proceedings before an Austrian court or authority, contest the authenticity (Echtheit) of an uncertified copy of any such Stamp Duty Sensitive Document, unless such uncertified copy actually introduced into evidence does not accurately reflect the content of the original document; or

 

(c)                                  a Party is required by law, governmental body, court, authority or agency pursuant to any legal requirement (whether for the purposes of initiating, prosecuting, enforcing or executing any claim or remedy or enforcing any judgment or otherwise) to bring or send a Stamp Duty Sensitive Document into, or otherwise produce a Stamp Duty Sensitive Document in, Austria.

 

5.                                      AGENT TO HOLD ORIGINAL DOCUMENTS

 

The Agent shall hold one complete original of this Side Letter at an address outside of Austria for the benefit of the Finance Parties and such copy shall be clearly marked “Agent’s Copy”.

 

6.                                      NOTICES

 

6.1                               Communications in writing

 

Any communication to be made under or in connection with the Stamp Duty Sensitive Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter and, in all cases, shall be made in accordance with the Stamp Duty Guidelines.

 

6.2                               Addresses

 

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

 

(a)                                 in the case of the Obligors’ Agent, that identified with its name below;

 

(b)                                 in the case of each Lender or any other Original Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

 

(c)                                  in the case of the Agent that identified with its name below,

 

5

 

or any substitute address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five (5) Business Days’ notice, provided that for any communication to be made under or in connection with the Stamp Duty Sensitive Documents such address, fax number or department or officer shall be outside the Republic of Austria.

 

6.3                               Delivery

 

(a)                                  Any communication or document made or delivered by one person to another under or in connection with the Stamp Duty Sensitive Documents will only be effective:

 

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

 

(ii)                                  if by way of letter, when it has been left at the relevant address seven (7) Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

 

and, if a particular department or officer is specified as part of its address details provided under Clause 6.2 (Addresses), if addressed to that department or officer.

 

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

 

(c)                                  All notices from or to an Obligor shall be sent through the Agent.

 

(d)                                 Any communication or document made or delivered to the Obligors’ Agent in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

 

6.4                               Notification of address and fax number

 

Promptly upon receipt of notification of an address and fax number or change of address or fax number pursuant to Clause 6.2 (Addresses) or changing its own address or fax number, the Agent shall notify the other Parties.

 

6.5                               Electronic communication

 

(a)                                  Any communication to be made between the Parties (other than (i) any request for an amendment to or waiver of this Side Letter, (ii) in the case of a Guarantor, delivery of any request for an amendment or waiver of this Side Letter) may be made by electronic mail or other electronic means and the Parties shall notify each other (in particular, the Agent) in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means.

 

(b)                                 Each Party shall promptly notify each other Party (in particular, the Agent) of any change to their electronic mail address or any other such information supplied by them.

 

(c)                                  Any electronic communication made:

 

6

 

(i)                                     by the Agent to another Party will be effective only when actually received in readable form by the relevant recipient and then only if it is addressed in such a manner as that relevant Lender or Obligor, as the case may be, shall specify to the Agent for this purpose; and

 

(ii)                                  by a Lender or any Obligor to the Agent will be effective only when actually received in readable form by the Agent and then only if it is addressed in such a manner as the Agent shall specify to that Lender or, as the case may be, that Obligor for this purpose.

 

(d)                                 Each Party shall notify any affected Parties promptly upon becoming aware that its electronic mail system or other electronic means of communication cannot be used due to technical failure (and that failure is continuing for more than 36 hours). Until that Party has notified the other affected Parties that the failure has been remedied, all notices between those Parties shall be sent by fax or letter in accordance with this Clause 6 (Notices).

 

(e)                                  In the case of notification of rates of interest by the Agent pursuant to Clause 8.4 (Notification of rates of interest) of the OeKB Facility Agreement and in the case of the delivery of any document by the Agent pursuant to paragraph (a) of Clause 25.2 (Duties of the Agent) of the OeKB Facility Agreement, the Agent may refer a Lender or an Obligor (by fax, letter or e-mail) to a web site and to the location of the relevant information on such web site in discharge of such notification or delivery obligation.

 

(f)                                    Each of the Parties agrees that it will comply with the Stamp Duty Guidelines.

 

6.6                               English language

 

(a)                                  Any notice given under or in connection with this Side Letter must be in English.

 

(b)                                 All other documents provided under or in connection with this Side Letter must be:

 

(i)                                     in English; or

 

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

 

6.7                               Communication when Agent is Impaired Agent

 

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of this Side Letter which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly but always in accordance with the Stamp Duty Guidelines. This provision shall not operate after a replacement Agent has been appointed.

 

7.                                      PLACE OF PERFORMANCE

 

The Parties shall perform their obligations under or in connection with the Stamp Duty Sensitive Documents exclusively at the Place of Performance (as defined below), but in no event at a place in Austria and the performance of any obligations or liability under or in connection with the Stamp Duty Sensitive Documents within the Republic of Austria shall not

 

7

 

constitute discharge or performance of such obligation or liability. For the purposes of the above, Place of Performance means:

 

(a)                                  in relation to any payment by an Obligor or a Finance Party under or in connection with the Stamp Duty Sensitive Documents, the place at which such payment is to be made pursuant to Clause 28.1 (Payments to the Agent) of the OeKB Facility Agreement; and

 

(b)                                 in relation to any other obligation or liability under or in connection with the Stamp Duty Sensitive Documents, the premises of the Agent in Munich or any other place outside of Austria as the Agent specifies from time to time.

 

8.                                      DELIVERY OF NOTICES BY THE AGENT

 

Notwithstanding Clause 6 (Notices) and Clause 7 (Place of  Performance) but subject to Clause 4 (Stamp  Taxes) and paragraph (f) of Clause 6.5 (Electronic  communication), each of the Obligors agrees that any notice or document delivered to it under or in connection with the Stamp Duty Sensitive Documents shall be sent to an address located outside of Austria which, unless it notifies the Agent otherwise, shall be 154 Chaussée de la Hulpe, B-1170 Brussels (Watermael Boitsfort), Belgium.

 

9.                                      INDEMNITY TO THE AGENT

 

Upon and following an Intercreditor Agreement Accession, the Borrower shall indemnify the Agent, within ten (10) Business Days of demand, against any cost, loss or liability incurred by the Agent (acting reasonably and otherwise than by reason of the Agent’s gross negligence or wilful misconduct) in connection with the administration of or compliance with this Side Letter and/or the Stamp Duty Guidelines (unless the Agent has been reimbursed by any other Obligor). Upon request of the Borrower the Agent shall within ten (10) Business Days provide the Borrower with evidence of such costs satisfactory to the Borrower (acting reasonably).

 

10.                               GOVERNING LAW

 

This Side Letter and any non-contractual obligations arising out of or in relation to this Side Letter shall be governed by and construed in all respects in accordance with Austrian law, excluding the Austrian conflict of laws rules.

 

11.                               ENFORCEMENT

 

(a)                                  The competent courts for commercial matters for the first district of Vienna, shall have exclusive jurisdiction to settle any dispute arising out of or in connection with this Side Letter (including a dispute relating to the existence, validity or termination of this Side Letter) or any non-contractual obligation arising out of or in connection with this Side Letter (a Dispute).

 

(b)                                 This Clause 11 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts (including the Federal and State Courts in and of the State of New York to whose jurisdiction each Obligor irrevocably submits) with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

 

8

 

(c)                                  Each party hereby waives, to the fullest extent permitted by applicable law, any right that it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Side Letter or the transactions contemplated hereby (whether based on contract, tort or any other theory). Each party hereto (a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the other parties hereto have been induced to enter into this Side Letter by, among other things, the mutual waivers and certifications in this section.

 

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

 

9

 

SCHEDULE 1

 

THE ORIGINAL PARTIES

 

Part A
 The Original Obligors

 

	
Original Borrower
    	
 
    	
Registration number (or equivalent, if any)
    
	
Sappi Papier   Holding GmbH
    	
 
    	
FN167931h   (Austria)
    

 

	
Original Guarantors
    	
 
    	
Registration number (or equivalent, if any)
    
	
Sappi Limited
    	
 
    	
1936/008963/06   (South Africa)
    
	
Sappi   International SA
    	
 
    	
RPM Brussels   0449.887.582 (Belgium)
    
	
S.D. Warren   Company
    	
 
    	
878041   (Pennsylvania)
    
	
SDW Holdings   Corporation
    	
 
    	
2441157 (Delaware)
    
	
Sappi Cloquet LLC
    	
 
    	
3498035 (Delaware)
    
	
Sappi Lanaken NV
    	
 
    	
RPR Tongeren   0420.732.352 (Belgium)
    
	
Sappi Deutschland   GmbH
    	
 
    	
HRB59586   registered with the Commercial Register of Hanover (Germany)
    
	
Sappi Deutschland   Holding GmbH
    	
 
    	
HRB110140   registered with the Commercial register of Hildesheim (Germany)
    
	
Sappi Lanaken   Press Paper NV
    	
 
    	
RPR Tongeren 0426.966.779 (Belgium)
    
	
Sappi Pulp Asia   Limited
    	
 
    	
0925340 (Hong   Kong)
    
	
Sappi Nijmegen BV
    	
 
    	
10041104   (Netherlands)
    
	
Sappi Alfeld GmbH
    	
 
    	
HRB110356   registered with the Commercial Register of Hildesheim (Germany)
    
	
Sappi Maastricht   BV
    	
 
    	
14631722   (Netherlands)
    
	
Sappi Netherlands   BV
    	
 
    	
14631721   (Netherlands)
    
	
Sappi Ehingen GmbH
    	
 
    	
HRB490647   registered with the Commercial Register of Ulm (Germany)
    
	
Sappi Europe SA
    	
 
    	
RPM Brussels   0449.654.386 (Belgium)
    
	
Sappi Gratkorn   GmbH
    	
 
    	
FN 69000x   (Austria)
    
	
Sappi MagnoStar   GmbH
    	
 
    	
FN 140031d   (Austria)
    
	
Sappi Austria   Produktions - GmbH & Co. KG
    	
 
    	
FN 223882p   (Austria)
    
	
Sappi Stockstadt   GmbH
    	
 
    	
HRB8118 registered   with the Commercial Register of Aschaffenburg (Germany)
    
	
Sappi Finland I Oy
    	
 
    	
2219145-0   (Finland)
    

 

10

 

Part B
 The Original Lenders

 

Original Lender

UniCredit Bank Austria AG

Erste Group Bank AG

BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft

Raiffeisen Bank International AG

 

11

 

SCHEDULE 2

 

EXISTING SECURITY AND GUARANTEES

 

	
Name   of Group Company
   Granting Security
   /Guarantee
    	
 
    	
Description   of
   Security/Guarantee
    	
 
    	
Principal   Amount of
   Indebtedness Secured /
   Guaranteed
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Security
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Alfeld GmbH   and Sappi Ehingen GmbH
    	
 
    	
Mortgage in favour   of Allianz AG on land and buildings owned by Sappi Alfred GmbH and Sappi Ehingen   GmbH
    	
 
    	
EUR 20,452,675
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa
    	
 
    	
Mortgage in favour   of Rand Merchant Bank of plant and equipment
    	
 
    	
ZAR   121 013 703
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Guarantees
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH and Sappi Austria Produktions GmbH and Co KG
    	
 
    	
Guarantee in favour   of communities in Gratkorn, Austria, on behalf of Wasserverband
    	
 
    	
EUR   3,347,788
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA
    	
 
    	
Guarantee in   favour of Pulp Trading GmbH on behalf of Sappi Trading Germany GmbH, Sappi   Papier Holding GmbH, Sappi Pulp Americas LLP
    	
 
    	
USD   4,867,456
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA
    	
 
    	
Guarantee in   favour of Citibank, N.A. on behalf of Sappi (U.K.) Limited
    	
 
    	
GBP   42,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA
    	
 
    	
Guarantee in   favour of Pulp Trading GmbH on behalf of Sappi Trading Germany GmbH, Sappi   Papier Holding GmbH, Sappi Pulp Americas LLP
    	
 
    	
USD   3,617,610
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi International   SA
    	
 
    	
Guarantee in   favour of Sappi UK Ltd Pension funds
    	
 
    	
GBP   30,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA, Sappi Limited, and all Original Guarantors
    	
 
    	
Guarantees in   favour of public bond holders (2017, 2018, 2019, 2021, 2032) on behalf of   Sappi Papier Holding GmbH
    	
 
    	
USD   1,270,882,000

EUR   250,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA, Sappi Limited, and all Original Guarantors
    	
 
    	
Guarantees in   favour of public bond holders (2014) on behalf of PE Paper Escrow GmbH
    	
 
    	
USD   132,658,000

EUR   350,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA, Sappi Limited, and all Original 
    	
 
    	
Guarantee in   favour of UniCredit Bank Austria AG on behalf of
    	
 
    	
EUR   9,000,000
    

 

12

 

	
Guarantors
    	
 
    	
Sappi Papier   Holding GmbH
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA, Sappi Limited, and all Original Guarantors
    	
 
    	
Guarantee in   favour of JP Morgan on behalf of Sappi Papier Holding GmbH in respect of   Revolving Credit Facility
    	
 
    	
EUR   350,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi International   SA
    	
 
    	
Guarantee in   favour of Royal Bank of Scotland on behalf of Sappi Europe S.A.
    	
 
    	
CHF   250,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi International SA
    	
 
    	
Guarantee in   favour of ING Bank on behalf of Sappi Europe S.A.
    	
 
    	
EUR   52,073
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Lanaken NV
    	
 
    	
Guarantee in   favour of KBC Bank NV
    	
 
    	
EUR   119,157.41
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in   favour of Royal Bank of Scotland on behalf of S.D. Warren Company
    	
 
    	
USD   11,090,000

(utilized   with USD 8.753.901)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in   favour of Landesbetrieb Hessen Forst on behalf of Sappi Deutschland Gmbh
    	
 
    	
EUR   1,500,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in   favour of Societe Generale on behalf of S.D. Warren Company
    	
 
    	
USD   10,000,000

(not   utilized)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in   favour of Citibank on behalf of S.D. Warren Company
    	
 
    	
USD   20,790,000

(utilized   with  USD

13.275.000)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in   favour of UniCredit HVB on behalf of S.D. Warren Company
    	
 
    	
USD   3,546,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in favour   of HSBC Vehicle Finance UK on behalf of Sappi UK Sales Office
    	
 
    	
GBP   200,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Performance   Guarantee in favour of Elektra Purchase No. 29 Limited on behalf of Sappi   International SA, Sappi Europe SA, Sappi Lanaken NV, Sappi Deutschland GmbH,   Sappi NA Finance Limited in respect of the 2011 trade receivables   securitisation program
    	
 
    	
EUR   360,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in   favour of third parties (suppliers, authorities, etc) on behalf of Sappi   Netherlands BV
    	
 
    	
USD   2,400,000

(EUR   1,895,735)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Guarantee in   favour of Credit Agricole Indosuez on behalf of
    	
 
    	
USD   20,000,000
    

 

13

 

	
 
    	
 
    	
Sappi   International SA
    	
 
    	
(not   utilized)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Europe SA
    	
 
    	
Guarantees in   favour of KBC Bank on behalf of various third parties
    	
 
    	
EUR   495,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Europe SA
    	
 
    	
Guarantees in   favour of KBC Bank
    	
 
    	
EUR   120,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Europe SA
    	
 
    	
Guarantees in   favour KBC Bank on behalf of S.D. Warren Company
    	
 
    	
EUR   74,400
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Deutschland   GmbH
    	
 
    	
Guarantee in   favour UniCredit Bank Austria on behalf of Sappi Ehingen GmBH
    	
 
    	
EUR   122,500
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Netherlands   BV
    	
 
    	
Guarantee in   favour of RBS Belgium on behalf of Sappi Nijmegen BV
    	
 
    	
EUR   25,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Netherlands BV
    	
 
    	
Guarantee in   favour of third party suppliers on behalf of Sappi Nijmegen BV
    	
 
    	
EUR   200,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Pty) Ltd
    	
 
    	
South African   Government, South African Revenue Services, Transnet for customs and import   duties
    	
 
    	
ZAR   3,916,000
    

 

14

 

SCHEDULE 3

 

EXISTING SUBSIDIARY EXTERNAL INDEBTEDNESS

 

	
Name   of Company
    	
 
    	
Facility   Document
    	
 
    	
Total   Principal Amount of
   Indebtedness
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Senior secured   notes due July 2017
    	
 
    	
USD   400,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Senior secured   notes due June 2019
    	
 
    	
USD   300,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
USD 220,882,000   7.50% Guaranteed Unsecured Notes due June 2032
    	
 
    	
USD   220.882,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
PE Paper Escrow   GmbH
    	
 
    	
Senior secured   notes due August 2014
    	
 
    	
USD   167,342,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
PE Paper Escrow   GmbH
    	
 
    	
Senior secured   notes due August 2014
    	
 
    	
EUR   350,000,000

USD   438,095,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Senior secured   notes due April 2018
    	
 
    	
EUR   250,000,000

USD   312,925,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier Holding   GmbH
    	
 
    	
Senior secured   notes due April 2021
    	
 
    	
USD   350,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Term loan facility   maturing June 2013
    	
 
    	
EUR   9,000,000

USD   11,265,300
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Facility agreement
    	
 
    	
EUR   58,200,000

USD   72,848,940
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Revolving Credit   Facility agreement maturing April 2016
    	
 
    	
EUR   350,000,000

USD   438,095,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Elektra Purchase   No. 29 Limited
    	
 
    	
Receivables   Purchase Agreements with Sappi Lanaken N.V., Sappi Deutschland GmbH, Sappi   Papier Holding GmbH and Sappi NA Finance LLC as sellers maturing August 2014
    	
 
    	
EUR   360 million programme with EUR 268,588,115 currently outstanding

 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Papier   Holding GmbH
    	
 
    	
Lease agreements   maturing 2024
    	
 
    	
EUR   4,217,000

USD   5,278,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Finland I Oy
    	
 
    	
Main Agreement on   sale of power plants and other arrangements of Kirkniemi ending November 2012
    	
 
    	
EUR   9,154,000

USD   11,458,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA
    	
 
    	
Uncommitted   Facilities

 
    	
 
    	
EUR   1,500,000

USD   1,877,550
    

 

15

 

	
Name   of Company
    	
 
    	
Facility   Document
    	
 
    	
Total   Principal Amount of
   Indebtedness
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA
    	
 
    	
Uncommitted   Facilities
    	
 
    	
USD   25,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi   International SA and Sappi Papier Holding GmbH
    	
 
    	
Uncommitted   Facilities
    	
 
    	
USD1,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
ZAR 1 billion   Senior Unsecured Fixed Rate Notes issued due June 2013
    	
 
    	
ZAR   1,000,000,000

USD   118,976,658
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
ZAR 750 million   Senior Unsecured Floating Rate Notes due April 2015
    	
 
    	
ZAR   750,000,000

USD   89,232,493
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
ZAR 500 million   Senior Unsecured Fixed Rate Notes due June 2016
    	
 
    	
ZAR   500,000,000

USD   59,488,329
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
ZAR 500 million   Senior Unsecured Fixed Rate Notes due June 2012
    	
 
    	
ZAR   500,000,000

USD   59,488,329
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Promissory note   due December 2013
    	
 
    	
ZAR   72,606,298

USD   8,638,455
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Promissory note   due March 2013
    	
 
    	
ZAR   39,817,605

USD   4,737,366
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Promissory note   due January 2013
    	
 
    	
ZAR   158,601,559

USD   19,014,179
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Promissory note   due November 2012
    	
 
    	
ZAR   159,814,365

USD   19,014,179
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern Africa (Proprietary) Limited
    	
 
    	
Sappi Southern   Africa’s receivables purchase arrangements
    	
 
    	
No   formal programme limit.

 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Lease agreement   ending September 2015
    	
 
    	
ZAR   117,437,617

USD   13,972,335
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Loan agreement   maturing March 2014
    	
 
    	
ZAR   230,855,497

USD   27,466,416
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Overnight general   banking facilities
    	
 
    	
ZAR   854,000,000

USD   101,606,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Cash management   overdraft facility
    	
 
    	
ZAR   225,000,000

USD   26,769,748
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Domestic medium   term note programme
    	
 
    	
ZAR   5,000,000,000

USD   594,883,290
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sappi Southern   Africa (Proprietary) Limited
    	
 
    	
Loan Agreement   maturing June 2014
    	
 
    	
ZAR   15,783,433

USD   1,877,860
    

 

16

 

SCHEDULE 4

 

STAMP DUTY GUIDELINES

 

1.                                      Introduction

 

(a)                                 These stamp duty guidelines (the Guidelines) shall apply to all written communication of the parties to the side letter of which this Schedule 4 forms part (the Side Letter).

 

(b)                                In these Guidelines, unless a contrary indication appears a term defined in the Side Letter (including by way of reference) has the same meaning when used in these Guidelines.

 

(c)                                  Any reference in these Guidelines (as well as in the Stamp Duty Sensitive Documents) to (i) written shall mean that what is “written” was translated into letters (Buchstaben) that are or can be made visible on a physical or electronic device of whatever type and format, including paper and screen, and, accordingly, communication, documents or notices being in writing shall include not only paper-form (letter or fax) communication, documents or notices but also electronic communication, documents or notices, including by way of e-mail and (ii) signed communication, documents or notices refers to written communication, documents or notices that carry a manuscript, digital or electronic or other technically reproduced signature, and signature shall be construed accordingly.

 

2.                                      Guidelines for Written Communication

 

(a)                                 Subject to paragraphs 2(b) and 2(c) below, signed  written  communication that records or otherwise provides evidence of a transaction (Rechtsgeschäft) contemplated by, or referenced in, Stamp Duty Sensitive Document, whether in the body of the relevant communication, a schedule, an attachment, an annex or an appendix referred to therein or incorporated by reference (Bezugnahme), may only be made from an address outside of the Republic of Austria to an address outside of the Republic of Austria. For the avoidance of doubt, e-mails where the server on which such e-mails will be received or from which such e-mails will be sent is located in the Republic of Austria (e.g. this may be indicated by an e-mail address having a country code top level domain “.at”) or other e-mail addresses where the person sending or the person receiving such e-mail have their ordinary workplace (Arbeitsplatz) in the Republic of Austria must not be signed (see also paragraphs 2(c) and 2(d) below).

 

(b)                                 Letters that record or otherwise provide evidence of a transaction (Rechtsgeschäft) contemplated by, or referenced in, any Stamp Duty Sensitive Document, whether in the body of the letter, a schedule, an attachment, an annex or an appendix referred to therein or incorporated by reference (Bezugnahme), may be brought or sent into, or produced in, the Republic of Austria if in the following format, provided that no Stamp Duty Sensitive Document is attached:

 

[party’s letterhead]

 

Dear....,
 [text of message]
 Kind regards

 

17

 

NO SIGNATURE OF PARTY (WHETHER MANUSCRIPT, DIGITAL OR ELECTRONIC) SENDING THE LETTER 
 NO CONTACT DETAILS
 CONFIDENTIALITY NOTICES AND OTHER FOOTERS ALLOWED
 DO NOT ATTACH A STAMP DUTY SENSITIVE DOCUMENT

 

(c)                                  E-mails and fax messages that record or otherwise provide evidence of a transaction (Rechtsgeschäft) contemplated by, or referenced in, any Stamp Duty Sensitive Document, whether in the body of the e-mail or fax, a schedule, an attachment, an annex or an appendix referred to therein or incorporated by reference (Bezugnahme), may be brought or sent into, or produced in, the Republic of Austria if in the following format, provided that no Stamp Duty Sensitive Document is attached:

 

Dear....,
 [text of message].
 Kind regards
 NO REFERENCE TO INDIVIDUAL / COMPANY NAME
 NO SIGNATURE OF PARTY (WHETHER MANUSCRIPT, DIGITAL OR ELECTRONIC) SENDING THE E-MAIL / FAX 
 NO CONTACT DETAILS OR OTHER AUTOMATICALLY GENERATED FOOTERS THAT REFER TO PARTY
 CONFIDENTIALITY NOTICES ALLOWED
 DO NOT ATTACH A STAMP DUTY SENSITIVE DOCUMENT

 

In addition, the footer of such e-mail must not contain the company name, contact details or any other information allowing identification of the sender. The company name, contact details etc. of the original sender of a reply or forwarded message need not be deleted.

 

(d)                                 No e-mails that refer to Stamp Duty Sensitive Documents shall be sent (other than in accordance with paragraph 2 of these Guidelines) if the automatic e-mail signature (including company name etc.) cannot be suppressed.

 

18

 

SCHEDULE 5

CONDITIONAL SECURITY DOCUMENTS

 

Part A
 Austrian Security Documents

 

1.                                      Mortgage offer with respect to land owned by Sappi Gratkorn GmbH.

 

2.                                      First ranking pledge agreement with respect to buildings on third party land (Superädifikate) owned by Sappi MagnoStar GmbH.

 

3.                                      First ranking asset pledge agreement with respect to paper machines owned by Sappi MagnoStar GmbH.

 

4.                                      First ranking asset pledge agreement with respect to paper machines and the pulp mill owned by Sappi Austria Produktions-GmbH & Co. KG.

 

5.                                      First ranking share pledge agreement with respect to the shares in Sappi Papier Holding GmbH.

 

6.                                      First ranking share pledge agreement with respect to the shares in Sappi Gratkorn GmbH.

 

7.                                      First ranking share pledge agreement with respect to the shares in Sappi MagnoStar GmbH.

 

8.                                      First ranking partnership interest pledge agreement with respect to the partnership interest in Sappi Austria Produktions-GmbH & Co. KG.

 

9.                                      First ranking receivables pledge agreement with respect to intercompany loans held by Sappi Papier Holding GmbH as creditor and provided to Sappi China Holdings BV, Sappi UK Holdings BV and Sappi Netherlands BV.

 

10.                               First ranking receivables pledge agreement with respect to intercompany loans held by Sappi Austria Produktions-GmbH & Co KG as creditor and provided to Sappi International SA.

 

Part B
 Belgian Security Documents

 

1.                                      First ranking share pledge agreement over shares in Sappi International SA.

 

2.                                      First ranking share pledge agreement over shares in Sappi Europe SA.

 

3.                                      First ranking share pledge agreement over shares in Sappi Lanaken NV.

 

4.                                      First ranking share pledge agreement over shares in Sappi Lanaken Press Paper NV.

 

5.                                      First ranking intercompany loan pledge.

 

19

 

Part C
 Dutch Security Documents

 

1.                                      First ranking deed of pledge of shares with respect to the shares in the capital of Sappi Maastricht B.V.

 

2.                                      First ranking deed of pledge of shares with respect to the shares in the capital of Sappi Nijmegen B.V.

 

3.                                      First ranking deed of pledge of shares with respect to the shares in the capital of Sappi Netherlands B.V.

 

4.                                      First ranking deed of pledge of intercompany receivables of Sappi Netherlands B.V.

 

5.                                      First ranking deed of mortgage and pledge with respect to the land, plant and paper machines at Maastricht and Nijmegen, the Netherlands, granted by Sappi Maastricht B.V. and Sappi Nijmegen B.V.

 

Part D
 Finnish Security Documents

 

1.                                      First ranking real estate mortgage agreement in relation to the Kirkniemi mill (with the mortgage also to cover paper machines to the fullest extent permitted under Finnish law).

 

2.                                      First ranking share pledge agreement over the shares in Sappi Finland I Oy.

 

Part E
 German Security Documents

 

1.                                      First-ranking share pledge agreement of the shares in Sappi Alfeld GmbH, Sappi Deutschland GmbH, Sappi Stockstadt GmbH and Sappi Ehingen GmbH granted by Sappi Deutschland Holding GmbH as pledgor.

 

2.                                      First-ranking share pledge agreement of the shares in Sappi Deutschland Holding GmbH granted by Sappi Papier Holding GmbH (Austria) as pledgor.

 

3.                                      Assignment of intercompany receivables (governed by German law) granted by Sappi Deutschland Holding GmbH.

 

4.                                      Assignment of intercompany receivables (governed by German law) granted by Sappi Papier Holding GmbH (Austria).

 

Part F 
 South African Security Documents

 

1.                                      First ranking share pledge over the shares in Sappi Southern Africa (Proprietary) Ltd.

 

20

 

Part G
 US Security Documents

 

1.                                      Pledge and security agreement in relation to:

 

(a)                                 the shares in S.D. Warren Company, Sappi Cloquet LLC, and Cloquet Terminal Railroad Company Inc.; and

 

(b)                                 equipment of S.D. Warren Company and Sappi Cloquet LLC located at, or otherwise used in connection with, the production facilities in Skowhegan/Somerset, Maine and Cloquet, Minnesota;

 

(c)                                  the inventory of S.D. Warren Company and Sappi Cloquet LLC (excluding inventory held on consignment).

 

2.                                      Note pledge agreement in relation to the notes issued by S.D. Warren Company held by Sappi Holding GmbH and Sappi Netherlands BV.

 

3.                                      Mortgage (in relation to production facilities in Skowhegan/Somerset, Maine owned by S.D. Warren Company.

 

4.                                      Mortgage (in relation to production facilities in Cloquet, Minnesota) owned by Sappi Cloquet LLC.

 

5.

 

Part H
 English Security Document

 

1.                                      Assignment of intercompany receivables granted by Sappi Papier Holding GmbH, Sappi Pulp Asia Limited and Sappi Finland I Oy.

 

Part I
 2011 Security Documents

 

1.                                      Additional Austrian law mortgage offer in respect of land owned by Sappi Gratkorn GmbH.

 

2.                                      Additional Austrian law pledge in respect of buildings on third party land owned by Sappi MagnoStar GmbH.

 

3.                                      Austrian law confirmation agreement in respect of:

 

(a)                                 asset pledge agreement with respect to the assets owned by Sappi MagnoStar GmbH;

 

(b)                                 asset pledge agreement with respect to the assets owned by Sappi Austria Produktions-GmbH & Co. KG;

 

21

 

(c)                                  share pledge agreement with respect to the shares in Sappi Papier Holding GmbH;

 

(d)                                 share pledge agreement with respect to the shares in Sappi Gratkorn GmbH;

 

(e)                                  share pledge agreement with respect to the shares in Sappi MagnoStar GmbH;

 

(f)                                   partnership interest pledge agreement with respect to the partnership interest in Sappi Austria Produktions-GmbH & Co. KG;

 

(g)                                  receivables pledge agreement with respect to intercompany loans held by Sappi Papier Holding GmbH as Creditor and provided to Sappi China Holdings B.V., Sappi UK Holdings B.V. and Sappi Netherlands B.V; and

 

(h)                                 receivables pledge agreement with respect to intercompany loans held by Sappi Austria Produktions-GmbH & Co. KG as Creditor and provided to Sappi International SA.

 

4.                                      Belgian law confirmation agreement in respect of:

 

(a)                                 share pledge over shares in Sappi International SA;

 

(b)                                 share pledge over shares in Sappi Europe SA;

 

(c)                                  share pledge over shares in Sappi Lanaken NV;

 

(d)                                 share pledge over shares in Sappi Lanaken Press Paper NV; and

 

(e)                                  intercompany loan pledge.

 

5.                                      Dutch law confirmation agreement in respect of:

 

(a)                                 pledge of shares over share capital of Sappi Maastricht BV;

 

(b)                                 pledge of shares over share capital of Sappi Nijmegen BV;

 

(c)                                  pledge of shares over share capital of Sappi Netherlands BV;

 

(d)                                 pledge of intercompany receivables of Sappi Netherlands BV; and

 

(e)                                 mortgage and pledge with respect to the land, plant and paper machines at Maastricht and Nijmegen, the Netherlands, granted by Sappi Maastricht BV and Sappi Nijmegen BV.

 

6.                                      Finnish law confirmation agreement in respect of:

 

(a)                                 share pledge over the ordinary shares in Sappi Finland I Oy; and

 

(b)                                 real estate mortgage in relation to the Kirkniemi mill.

 

7.                                      German law notarial confirmations for the existing share pledges of the shares in (i) Sappi Alfeld GmbH, Sappi Deutschland GmbH, Sappi Stockstadt GmbH and Sappi Ehingen GmbH and (ii) Sappi Deutschland Holding GmbH in connection with the 2011 Bonds.

 

22

 

8.                                      German law non-notarial confirmation for the existing assignments of intercompany loans in connection with the 2011 Bonds.

 

9.                                      German law notarial confirmations for the existing share pledges of the shares in (i) Sappi Alfeld GmbH Sappi Deutschland GmbH, Sappi Stockstadt GmbH and Sappi Ehingen GmbH and (ii) Sappi Deutschland Holding GmbH.

 

10.                               German law non-notarial confirmation for the existing assignments of intercompany loans

 

11.                               English law second ranking security agreement in relation to assignment of intercompany loans in connection with the 2011 Bonds.

 

12.                               English law confirmation deed in relation to assignment of intercompany loans by Sappi Papier Holding GmbH, Sappi Pulp Asia Limited and Sappi Finland I Oy.

 

13.                               New York law confirmation agreement in relation to pledge and security agreement in relation to the shares in S.D. Warren Company, Sappi Cloquet LLC and Cloquet Terminal Railroad Company Inc. and a note pledge agreement in relation to notes by Sappi Papier Holding GmbH and Sappi Netherland B.V. in connection with the 2011 Bonds.

 

14.                               Maine law additional mortgage by S.D. Warren Company in relation to production facilities in Skowhegan/Somerset, Maine in connection with the 2011 Bonds.

 

15.                               Minnesota law additional mortgage by Sappi Cloquet LLC in relation to production facilities in Cloquet, Minnesota in connection with the 2011 Bonds.

 

16.                               Maine law additional mortgage by S.D. Warren Company in relation to production facilities in Skowhegan/Somerset, Maine.

 

17.                               Minnesota law additional mortgage by Sappi Cloquet LLC in relation to production facilities in Cloquet, Minnesota.

 

Part J
 2012 Security Documents

 

1.                                      Additional Austrian law mortgage offer in respect of land owned by Sappi Gratkorn GmbH.

 

2.                                      Additional Austrian law pledge in respect of buildings on third party land owned by Sappi MagnoStar GmbH.

 

3.                                      Austrian law confirmation agreement in respect of:

 

(a)                                 asset pledge agreement with respect to the assets owned by Sappi MagnoStar GmbH;

 

(b)                                 asset pledge agreement with respect to the assets owned by Sappi Austria Produktions-GmbH & Co. KG;

 

(c)                                  share pledge agreement with respect to the shares in Sappi Papier Holding GmbH;

 

(d)                                 share pledge agreement with respect to the shares in Sappi Gratkorn GmbH;

 

23

 

(e)                                  share pledge agreement with respect to the shares in Sappi MagnoStar GmbH;

 

(f)                                   partnership interest pledge agreement with respect to the partnership interest in Sappi Austria Produktions-GmbH & Co. KG;

 

(g)                                  receivables pledge agreement with respect to intercompany loans held by Sappi Papier Holding GmbH as Creditor and provided to Sappi China Holdings B.V., Sappi UK Holdings B.V. and Sappi Netherlands B.V; and

 

(h)                                 receivables pledge agreement with respect to intercompany loans held by Sappi Austria Produktions-GmbH & Co. KG as Creditor and provided to Sappi International SA.

 

4.                                      Belgian law confirmation agreement in respect of:

 

(a)                                 share pledge over shares in Sappi International SA;

 

(b)                                 share pledge over shares in Sappi Europe SA;

 

(c)                                  share pledge over shares in Sappi Lanaken NV;

 

(d)                                share pledge over shares in Sappi Lanaken Press Paper NV; and

 

(e)                                  intercompany loan pledge.

 

5.                                      Dutch law confirmation agreement in respect of:

 

(a)                                 pledge of shares over share capital of Sappi Maastricht BV;

 

(b)                                 pledge of shares over share capital of Sappi Nijmegen BV;

 

(c)                                  pledge of shares over share capital of Sappi Netherlands BV;

 

(d)                                 pledge of intercompany receivables of Sappi Netherlands BV; and

 

(e)                                  mortgage and pledge with respect to the land, plant and paper machines at Maastricht and Nijmegen, the Netherlands, granted by Sappi Maastricht BV and Sappi Nijmegen BV.

 

6.                                      Finnish law confirmation agreement in respect of:

 

(a)                                 share pledge over the ordinary shares in Sappi Finland I Oy; and

 

(b)                                 real estate mortgage in relation to the Kirkniemi mill.

 

7.                                      German law notarial confirmations for the existing share pledges of the shares in (i) Sappi Alfeld GmbH, Sappi Deutschland GmbH, Sappi Stockstadt GmbH and Sappi Ehingen GmbH and (ii) Sappi Deutschland Holding GmbH in connection with the 2012 Bonds.

 

8.                                      German law non-notarial confirmation for the existing assignments of intercompany loans in connection with the 2012 Bonds.

 

9.                                      English law third ranking security agreement in relation to assignment of intercompany loans in connection with the 2012 Bonds.

 

24

 

10.                               English law confirmation deed in relation to assignment of intercompany loans by Sappi Papier Holding GmbH, Sappi Pulp Asia Limited and Sappi Finland I Oy.

 

11.                               New York law confirmation agreement in relation to pledge and security agreement in relation to the shares in S.D. Warren Company, Sappi Cloquet LLC and Cloquet Terminal Railroad Company Inc. and note pledge agreement in relation to notes by Sappi Papier Holding GmbH and Sappi Netherland B.V. in connection with the 2012 Bonds.

 

12.                               Maine law additional mortgage by S.D. Warren Company in relation to production facilities in Skowhegan/Somerset, Maine in connection with the 2012 Bonds.

 

13.                               Minnesota law additional mortgage by Sappi Cloquet LLC in relation to production facilities in Cloquet, Minnesota in connection with the 2012 Bonds.

 

14.                               South African law additional share pledge over shares in Sappi Southern Africa (Proprietary) Ltd.

 

25

 

SIGNATURES

 

The Company

 

SAPPI LIMITED

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

The Borrower

 

SAPPI PAPIER HOLDING GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

The Obligors’ Agent

 

SAPPI INTERNATIONAL SA

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

	
:
    	
 
    
	
 
    	
 
    
	
Address:
    	
Chaussee de la Hulpe   154
    1170   Watermael-Boitsfort
    Belgium
    
	
 
    	
 
    
	
Fax:
    	
+32 (0) 2676 984
    
	
 
    	
 
    
	
Attention:
    	
Jörg Passler
    

 

26

 

The Original Guarantors

 

SAPPI LIMITED

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI INTERNATIONAL SA

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SD WARREN COMPANY

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
Name:
    	
J.H. Passler
    	
 
    	
Name:
    	
S.J. Blyth
    

 

Title: Attorney-in-fact

 

 

SDW HOLDINGS CORPORATION

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
Name:
    	
J.H. Passler
    	
 
    	
Name:
    	
S.J. Blyth
    

 

Title: Attorney-in-fact

 

 

SAPPI CLOQUET LLC

 

	
By: S.D. Warren Company, its Sole Manager  
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
Name:
    	
J.H. Passler
    	
 
    	
Name:
    	
S.J. Blyth
    

 

Title: Attorney-in-fact

 

 

SAPPI LANAKEN NV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

27

 

SAPPI DEUTSCHLAND GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI DEUTSCHLAND HOLDING GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI LANAKEN PRESS PAPER NV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI PULP ASIA LIMITED

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI NIJMEGEN BV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI ALFELD GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI MAASTRICHT BV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI NETHERLANDS BV

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI EHINGEN GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

28

 

SAPPI EUROPE SA

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI GRATKORN GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI MAGNOSTAR GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI AUSTRIA PRODUKTIONS — GMBH & CO. KG

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI STOCKSTADT GMBH

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

 

SAPPI FINLAND I OY

 

	
By:
    	
/s/ J.H. Passler
    	
 
    	
By:
    	
/s/ S.J. Blyth
    
	
 
    	
J.H. Passler
    	
 
    	
 
    	
S.J. Blyth
    

 

29

 

The Mandated Lead Arranger

 

UNICREDIT BANK AUSTRIA AG

 

	
By:
    	
/s/ C Koeppen
    	
 
    
	
 
    	
C Koeppen
    	
 
    

 

 

The Original Lenders

 

UNICREDIT BANK AUSTRIA AG

 

	
By:
    	
/s/ C Koeppen
    	
 
    
	
 
    	
C Koeppen
    	
 
    

 

 

ERSTE GROUP BANK AG

 

	
By:
    	
/s/ C Koeppen
    	
 
    
	
 
    	
C Koeppen
    	
 
    

 

 

BAWAG P.S.K. BANK FÜR ARBEIT UND WIRTSCHAFT UND ÖSTERREICHISCHE POSTSPARKASSE AKTIENGESELLSCHAFT

 

	
By:
    	
/s/ C Koeppen
    	
 
    
	
 
    	
C Koeppen
    	
 
    

 

 

RAIFFEISEN BANK INTERNATIONAL AG

 

	
By:
    	
/s/ C Koeppen
    	
 
    
	
 
    	
C Koeppen
    	
 
    

 

 

The Agent

 

UNICREDIT BANK AUSTRIA AG

 

	
By:
    	
/s/ C Koeppen
    	
 
    
	
 
    	
C Koeppen
    	
 
    

 

30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}]]