Document:

Exhibit 10.1
	 	 
	 	 
	
DATED 9 JUNE 2016

	
 

 

BRAND LOYALTY GROUP B.V.

AS THE COMPANY

 

ING BANK N.V.

AS AGENT

 

ING BANK N.V.

AS SECURITY AGENT

 

THE LENDERS

 (AS DEFINED HEREIN)

 

AND OTHERS

 

 

 

	 	 AMENDMENT AND RESTATEMENT AGREEMENT

RELATING TO A EUR 125,000,000 FACILITIES 

AGREEMENT ORIGINALLY DATED 4 OCTOBER 

2011 AS AMENDED ON 26 JULY 2012 AND AS 

AMENDED AND RESTATED ON 17 JANUARY 2013, 

ON 19 DECEMBER 2013 AND ON 25 AUGUST 2015

 

	 

 

  

THIS AGREEMENT (the "Agreement") is dated 9 June 2016

BETWEEN:

	(1)	BRAND LOYALTY GROUP B.V. (the "Company");

	(2)	THE SUBSIDIARIES of the Company listed in Part I of  Schedule 1 (The Parties) as borrowers (together with the Company the "Borrowers");

	(3)	THE SUBSIDIARIES of the Company listed in Part I of Schedule 1 (The Parties) as guarantors (together with the Company the "Guarantors" and, together with the Borrowers, the "Existing Obligors" for the purposes of this Agreement);

	(4)	THE SUBSIDIARIES of the Company listed in Part I of Schedule 1 (The Parties) as new obligors (the "New Obligors") (together with the Existing Obligors for the purposes of the Amended and Restated Facilities Agreement, the "Obligors");

	(5)	DEUTSCHE BANK LUXEMBOURG S.A., DEUTSCHE BANK AG, AMSTERDAM BRANCH (as assignee  of DEUTSCHE BANK NEDERLAND N.V.) and ING BANK N.V. as existing lenders (the "Existing Lenders");

	(6)	COÖPERATIEVE RABOBANK U.A. and NIBC BANK DEUTSCHLAND AG, as acceding lenders (the "New Lenders", together with the Existing Lenders, for the purpose of the Amended and Restated Facilities Agreement, the "Lenders");

	(7)	DEUTSCHE BANK AG, AMSTERDAM BRANCH (as assignee of DEUTSCHE BANK NEDERLAND N.V.), and NIBC BANK N.V. as mandated lead arrangers and ING BANK N.V. and COÖPERATIEVE RABOBANK U.A., as bookrunning mandated lead arrangers (the "Arrangers");

	(8)	DEUTSCHE BANK AG and ING BANK N.V. as existing hedge counterparties (the "Existing Hedge Counterparties");

	(9)	NIBC BANK N.V. and COÖPERATIEVE RABOBANK U.A. as acceding Hedge Counterparties (the "New Hedge Counterparties", together with the Existing Hedge Counterparties, for the purpose of the Amended and Restated Facilities Agreement, the "Hedge Counterparties");

	(10)	ING BANK N.V. as facility agent of the other Finance Parties (the "Agent"); and

	(11)	ING BANK N.V. as security agent for the Secured Parties (the "Security Agent").

BACKGROUND

	(A)	On 4 October 2011 a EUR 75,000,000 committed revolving and uncommitted working capital facilities agreement was entered into between, among others, Brand Loyalty Group B.V. as the Company, the subsidiaries of the Company listed in Part I of Schedule 1 (The Original Parties) thereto as Original Borrowers and the Company and its subsidiaries listed in Part I of Schedule 1 (The Original Parties) thereto as Original Guarantors, Deutsche Bank Nederland N.V., ING Bank N.V. and NIBC Bank N.V. as Arranger, the financial institutions listed in Part II of Schedule 1 (The Original Parties) thereto as Original Lenders, the financial institutions listed in Part II

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of Schedule 1 (The Original Parties) thereto as Original Hedge Counterparties and ING Bank N.V. as Agent and as Security Agent (all as defined therein), as amended on 26 July 2012 and amended and restated on 17 January 2013, on 19 December 2013 and on 25 August 2015 (the "Original Facilities Agreement").

	(B)	The Company has requested the Lenders to amend the Original Facilities Agreement as set out in this Agreement.

IT IS AGREED as follows:

	1.	INTERPRETATION

	1.1	Definitions

In this Agreement:

"Amended and Restated Facilities Agreement" means the Original Facilities Agreement as amended and restated by this Agreement as set out in Schedule 3 (Amended and Restated Facilities Agreement) to this Agreement.

"French Security Documents" means (i) the first and second ranking French law share pledge agreements respectively dated 17 January 2013 and 25 August 2015, entered into between Brand Loyalty Europe B.V. as pledgor and the Security Agent, (ii) the first and second ranking French law charge over bank account agreements respectively dated 17 January 2013 and 25 August 2015, entered into between Brand Loyalty France as chargor and the Security Agent and (iii) the first and second ranking French law pledge over receivables agreements respectively dated 17 January 2013 and  25 August 2015, entered into between Brand Loyalty France as pledgor and the Security Agent.

"Italian Obligor" means Brand Loyalty Italia S.p.A.

"Security Documents" has the meaning given thereto in the Amended and Restated Facilities Agreement.

"Term Facility A Commitment" has the meaning given thereto in the Amended and Restated Facilities Agreement.

"Term Facility B Commitment" has the meaning given thereto in the Amended and Restated Facilities Agreement.

"Term Facility Commitments" has the meaning given thereto in the Amended and Restated Facilities Agreement.

	1.2	Incorporation of defined terms

		(a)	Unless a contrary indication appears, a term defined in any other Finance Document has the same meaning in this Agreement.

		(b)	The principles of construction set out in the Original Facilities Agreement shall have effect as if set out in this Agreement.

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	1.3	Clauses

In this Agreement 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 Agreement.

	1.4	Third party rights

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

	1.5	Designation

In accordance with the Original Facilities Agreement, each of the Company and the Agent designate this Agreement (including, for the avoidance of doubt, all Schedules hereto) as a Finance Document.

	2.	CLOSING PROCEDURE

	2.1	Fourth Effective Date and Conditions Precedent satisfaction

The "Fourth Effective Date" for the purposes of this Agreement means 10 June 2016 provided that the Agent has confirmed to the Lenders and the Company that it has received or it is satisfied that it will receive on 10 June 2016 each of the documents and evidence listed in Schedule 2 (Conditions Precedent) of this Agreement required to be delivered to it in form and substance satisfactory to it.

	2.2	Procedure on the Fourth Effective Date

Each of the parties to this Agreement agrees that each of the following shall occur on the Fourth Effective Date, in each case in accordance with, and at the times specified in, the provisions of this Agreement:

		(a)	the amendment and restatement of the Original Facilities Agreement;

		(b)	the accession of the New Obligors;

		(c)	the accession of the New Lenders;

		(d)	the accession of the New Hedge Counterparties;

		(e)	the creation of the Term Facility Commitments; and

		(f)	the confirmation of guarantees and the Transaction Security.

	3.	AMENDMENT AND RESTATEMENT

With effect from the Fourth Effective Date, the Original Facilities Agreement shall be amended and restated so that it shall be read and construed for all purposes as set out in Schedule 3 (Amended and Restated Facilities Agreement) and, accordingly, each of the Parties agrees that, with effect from (and including) the Fourth Effective Date, they shall have the rights and take on the obligations ascribed to them under the Amended and Restated Facilities Agreement.

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	4.	ACCESSION OF NEW OBLIGORS

		(a)	The parties to this Agreement agree in accordance with the provisions of the Amended and Restated Facilities Agreement that the provisions of this Clause 4 shall be construed and take effect as an Accession Letter for the purposes of the Amended and Restated Facilities Agreement.

		(b)	With effect from the Fourth Effective Date and in accordance with clause 25 (Changes to the Obligors) of the Amended and Restated Facilities Agreement, each New Obligor agrees to become an Additional Guarantor and to be bound by the terms of the Amended and Restated Facilities Agreement and the other Finance Documents as an Additional Guarantor pursuant to clause 25.4 (Additional Guarantors) of the Amended and Restated Facilities Agreement.

		(c)	Each Additional Guarantor confirms it is a company duly incorporated under the laws of the Netherlands.

	5.	ACCESSION OF NEW LENDERS

Immediately following the amendment and restatement of the Original Facilities Agreement in accordance with Clause 3 (Amendment and Restatement) and the accession of the New Obligors in accordance with Clause 4 (Accession of New Obligors), each New Lender accedes as a "Lender" under the Amended and Restated Facilities Agreement and agrees to be bound by the terms of the Amended and Restated Facilities Agreement as a "Lender".

	6.	ACCESSION OF NEW HEDGE COUNTERPARTIES

		(a)	The parties to this Agreement agree in accordance with the provisions of the Amended and Restated Facilities Agreement that the provisions of this Clause 6 shall be construed and take effect as a Hedge Counterparty Accession Undertaking for the purposes of the Amended and Restated Facilities Agreement.

		(b)	Immediately following the amendment and restatement of the Original Facilities Agreement in accordance with Clause 3 (Amendment and Restatement), the accession of the New Obligors in accordance with Clause 4 (Accession of New Obligors) and the accession of New Lenders in accordance with Clause 5 (Accession of New Lenders) and in accordance with clause 28.1 (Accession of Hedge Counterparties) of the Amended and Restated Facilities Agreement, each New Hedge Counterparty agrees to become a Hedge Counterparty and undertakes to perform all the obligations expressed in the Amended and Restated Facilities Agreement to be assumed by a Finance Party and agrees that it shall be bound by all the provisions of the Agreement as a Hedge Counterparty.

	7.	CREATION OF COMMITMENTS

Immediately following the amendment and restatement of the Original Facilities Agreement in accordance with Clause 3 (Amendment and Restatement), the accession of the New Obligors in accordance with Clause 4 (Accession of New Obligors), the

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accession of New Lenders in accordance with Clause 5 (Accession of New Lenders) and the accession of the New Hedge Counterparties in accordance with Clause 6 (Accession of New Hedge Counterparties), the Term Facility A Commitment and the Term Facility B Commitment shall be created and shall be as set out in Part II of Schedule 1.

	8.	COMMITMENTS

Immediately following the amendment and restatement of the Original Facilities Agreement in accordance with Clause 3 (Amendment and Restatement), the accession of the New Obligors in accordance with Clause 4 (Accession of New Obligors), the accession of the New Lenders in accordance with Clause 5 (Accession of New Lenders), the accession of the New Hedge Counterparties in accordance with Clause 6 (Accession of New Hedge Counterparties) and the creation of the Term Facility Commitments in accordance with Clause 7 (Creation of Commitments), the Lenders' Commitments shall be as set out in Part II of Schedule 1.

	9.	CONFIRMATION OF GUARANTEE AND SECURITY

	9.1	Confirmation of Guarantee Obligations

For the avoidance of doubt, each Existing Obligor hereby confirms for the benefit of the Finance Parties that, with effect from the Fourth Effective Date and notwithstanding the designation of any new document as a Finance Document or any additions, amendments, novation, substitution, or supplements of or to the Finance Documents or the imposition of any amended, new or more onerous obligations under the Finance Documents in relation to any Existing Obligor (including, without limitation the amendment and restatement of the Original Facilities Agreement pursuant to this Agreement) the guarantee and indemnity obligations given by it pursuant to clause 18 (Guarantee and Indemnity) of the Original Facilities Agreement shall, subject to the limitations set out in Clause 18 (Guarantee and Indemnity) of the Amended and Restated Facilities Agreement, (a) remain in full force and effect notwithstanding the amendments referred to in Clause 3 (Amendment and Restatement) and (b) extend to any new obligations assumed by any Existing Obligor or New Obligor under the Finance Documents (as amended) as a result of this Agreement (including, but not limited to, under the Amended and Restated Facilities Agreement).

	9.2	Absence of novation

Notwithstanding the provisions of this Agreement, the parties to this Agreement expressly represent that the obligations and liabilities deriving from the Finance Documents and bearing upon the parties thereto and the parallel debt set out in Clause 27.2 (Parallel Debt) of the Amended and Restated Facilities Agreement are not novated (novées) pursuant to article 1271 of the French Civil Code.

	9.3	Exclusion of Novation Effect (Effetto Novativo)

For the avoidance of doubt and for the purposes of Italian law, the Italian Obligor on one side, and the Agent (on behalf of the other Finance Parties) on the other side, reciprocally acknowledge and confirm that the amendment and restatement of the

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Original Facilities Agreement pursuant to this Agreement shall not constitute, and shall not be construed as, a novation (novazione) of, or have a novative effect (effetto novativo) on, the obligations expressed to be assumed by the Italian Obligor under the Original Facilities Agreement.

	9.4	Confirmation of Security

For the avoidance of doubt, each Existing Obligor hereby confirms for the benefit of the Finance Parties that, the Transaction Security created by it pursuant to each Security Document to which such Obligor is a party shall, subject to the limitations set out in Clause 18 (Guarantee and Indemnity) of the Amended and Restated Facilities Agreement, (a) remain in full force and effect notwithstanding the amendments referred to in Clause 3 (Amendment and Restatement) and (b), save for the French Security Documents, continue to secure the Secured Obligations under the Finance Documents as amended (including, but not limited to, under the Amended and Restated Facilities Agreement) and (c) with respect to the French Security Documents, continue to secure the Secured Obligations under the Finance Documents as described in the French Security Documents and notwithstanding the amendments referred to in Clause 3 (Amendment and Restatement).

	10.	EFFECTIVE GLOBAL RATE (TAUX EFFECTIF GLOBAL)

For the purpose of articles L.313-1, L. 313-2 and R.313-1 et seq. of the French Code de la consommation and article L. 313-4 of the French Code monétaire et financier, the Parties acknowledge that (i) the effective global rate (taux effectif global) calculated on the date of this Agreement, based on assumptions as to the period rate (taux de période) and the period term (durée de période) and on the assumption that the interest rate and all other fees, costs or expenses payable under this Agreement will be maintained at their original level throughout the term of this Agreement, is set out in a letter substantially in the form set out in schedule 12 (Form of TEG Letter) of the Original Facilities Agreement from the Agent to each Borrower incorporated in France and (ii) that letter forms part of this Agreement. Each Borrower incorporated in France acknowledges receipt of this letter.

	11.	REPRESENTATIONS

All representations and warranties as set out in clause 19 (Representations) (except for paragraph (a) of clause 19.11 (No misleading information), clause 19.24 (Group Structure) and Clause 19.25 (Obligors)) of the Original Facilities Agreement are deemed to be made by each Existing Obligor and New Obligor on:

		(a)	the date of this Agreement; and

		(b)	the Fourth Effective Date.

	12.	CONTINUITY AND FURTHER ASSURANCE

	12.1	Continuing obligations

The provisions of the Original Facilities Agreement and the other Finance Documents shall, save as amended by this Agreement, continue in full force and effect.

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	12.2	Further assurance

Each Existing Obligor and New Obligor shall, at the request of the Agent and at its own expense, do all such acts and things necessary or desirable to give effect to the amendments effected or to be effected pursuant to this Agreement.

	13.	COMMITMENTS CONFIRMATIONS

As of the Fourth Effective Date, each Existing Lender and New Lender confirms its participations set opposite its name in Part II of Schedule 1 (The Parties).

	14.	FEES, COSTS AND EXPENSES

	14.1	Extension fee

		(a)	The Company shall pay to the Agent an extension fee in respect of the extension of the Revolving Facility and the Uncommitted Revolving Facility in an amount equal to 0.15 per cent. of the Total Revolving Facility Commitments and the Total Uncommitted Facility Participations (each as defined in the Amended and Restated Facilities Agreement) (the "Extension Fee"), for the account of the Lenders under the Revolving Facility and the Uncommitted Revolving Facility pro rata to their respective Commitments.

		(b)	The Extension Fee is the extension fee referred to in clause 12.10 (Extension fee) of the Amended and Restated Facilities Agreement and shall be payable on the Fourth Effective Date.

	14.2	Transaction expenses

The Company shall promptly on demand pay the Agent the amount of all costs and expenses (including legal fees) reasonably incurred by any of them in connection with the negotiation, preparation, printing and execution of this Agreement and any other documents referred to in this Agreement.

	14.3	Enforcement costs

The Company shall, on demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, this Agreement.

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	15.	MISCELLANEOUS

	15.1	Italian transparency provisions

For the purposes of the transparency provisions set forth in the CICR Resolution of 4 March 2003, as amended from time to time, and in the "Disposizioni sulla trasparenza delle operazioni e dei servizi bancari e finanziari. Correttezza delle relazioni tra intermediari e clienti" (Transparency regulation relating to financial/banking transaction and services. Fair relationship among intermediaries and clients) issued by the Bank of Italy and as amended from time to time, each party to this Agreement hereby acknowledges and confirms that:

		(a)	it has appointed and has been assisted by its respective legal counsel in connection with the negotiation, preparation and execution of this Agreement; and

		(b)	this Agreement and the Amended and Restated Facilities Agreement and all of their terms and conditions, including the recitals and the schedules thereto, have been specifically negotiated ("oggetto di trattativa individuale") (which has been specifically negotiated) between the parties to this Agreement.

	15.2	References Security Documents

The Parties hereto agree and confirm that any reference in a Security Document to a clause of the Original Facilities Agreement that has been renumbered in the Amended and Restated Facilities Agreement will be read as a reference to the corresponding clause in the Amended and Restated Facilities Agreement.

	15.3	Incorporation of Terms

The provisions of clause 34 (Notices), clause 36 (Partial Invalidity), clause 37 (Remedies and Waivers) and clause 42 (Enforcement) of the Original Facilities Agreement shall be incorporated into this Agreement as if set out in full in this Agreement and as if references in those clauses to "this Agreement" or "the Finance Documents" are references to this Agreement.

	15.4	Counterparts

This Agreement may be executed in any number of counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

	16.	GOVERNING LAW AND JURISDICTION

	16.1	Governing law

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by the laws of The Netherlands.

	16.2	Jurisdiction

The Courts (Rechtbank) of Amsterdam, The Netherlands, subject to ordinary appeal (hoger beroep) and final appeal (cassatie) shall have exclusive jurisdiction to hear and

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determine any suit, action or proceeding and to settle any disputes (respectively "Proceedings" and "Disputes") arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or the consequences of its nullity) and, for such purposes, each of the parties hereto irrevocably submits to the exclusive jurisdiction of such courts.

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

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SCHEDULE 3

 AMENDED AND RESTATED FACILITIES AGREEMENT

	
 

DATED 4 OCTOBER 2011 AS AMENDED ON 26 JULY 2012 AND AMENDED AND

RESTATED ON 17 JANUARY 2013, 19 DECEMBER 2013 AND 25 AUGUST 2015 AND

AS FURTHER AMENDED AND RESTATED PURSUANT TO AN AMENDMENT AND

RESTATEMENT AGREEMENT DATED ON 9 JUNE 2016

 

 

	
 

EUR 315,000,000

 

SECURED FACILITIES AGREEMENT

 

FOR

 

BRAND LOYALTY GROUP B.V.

 

ARRANGED BY

 

DEUTSCHE BANK AG, AMSTERDAM BRANCH, ING BANK N.V., COÖPERATIEVE

RABOBANK U.A. AND NIBC BANK N.V.

 

WITH

 

ING BANK N.V.

ACTING AS AGENT

 

AND

 

ING BANK N.V.

ACTING AS SECURITY AGENT

 

 

 

	 	
 

CREDIT FACILITIES AGREEMENT

	 

THIS AGREEMENT is originally dated 4 October 2011 as amended pursuant to the Amendment Agreement and as amended and restated pursuant to the Amendment and Restatement Agreement, the Second Amendment and Restatement Agreement, the Third Amendment and Restatement Agreement and the Fourth Amendment and Restatement Agreement and made BETWEEN:

	(1)	BRAND LOYALTY GROUP B.V. (the "Company");

	(2)	THE SUBSIDIARIES of the Company listed in Part I of Schedule 1 (The Original Parties) as original borrowers (together with the Company the "Original Borrowers");

	(3)	THE SUBSIDIARIES of the Company listed in Part I of Schedule 1 (The Original Parties) as original guarantors (together with the Company the "Original Guarantors");

	(4)	DEUTSCHE BANK AG, AMSTERDAM BRANCH and NIBC BANK N.V. as mandated lead arrangers and ING BANK N.V. and COÖPERATIEVE RABOBANK U.A. as bookrunning mandated lead arrangers (the "Arrangers");

	(5)	THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original Parties) as lenders (the "Original Lenders");

	(6)	THE FINANCIAL INSTITUTIONS listed in Part III of Schedule 1 (The Original Hedge Counterparties) as hedge counterparties (the "Original Hedge Counterparties");

	(7)	ING BANK N.V. as facility agent of the other Finance Parties (the "Agent"); and

	(8)	ING BANK N.V. as security agent for the Secured Parties (the "Security Agent").

IT IS AGREED as follows:

SECTION 1

 INTERPRETATION

	1.	DEFINITIONS AND INTERPRETATION

	1.1	Definitions

In this Agreement:

"Accession Letter" means a document substantially in the form set out in Schedule 4 (Form of Accession Letter).

"Accounting Principles" means the generally accepted accounting principles in the relevant entity's jurisdiction of incorporation, as amended from time to time by reason of new or amended regulatory obligations, including IFRS.

"Accounting Reference Date" has the meaning given thereto in Clause 19.27 (Accounting Reference Date).

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"Acquisition Target" has the meaning given to that term in Clause 22.8 (Acquisitions).

"Additional Borrower" means a company which becomes an Additional Borrower in accordance with Clause 25 (Changes to the Obligors).

"Additional Guarantor" means a company which becomes an Additional Guarantor in accordance with Clause 25 (Changes to the Obligors).

"Additional Obligor" means an Additional Borrower or an Additional Guarantor.

"Affiliate" means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.

"Affiliate Accession Undertaking" means an undertaking in the form set out in Schedule 9 (Form of Affiliate Accession Undertaking).

"Amendment Agreement" means the amendment agreement dated 26 July 2012 between, among others, the Lenders, the Agent and the Company (each as defined therein).

"Amendment and Restatement Agreement" means the amendment and restatement agreement dated 17 January 2013 between, among others, the Lenders, the Agent and the Company (each as defined therein).

"Ancillary Commencement Date" means, in relation to an Ancillary Facility, the date on which that Ancillary Facility is first made available, which date shall be a Business Day within the Availability Period applicable to the Facility under which that Ancillary Facility is provided.

"Ancillary Commitment" means, in relation to an Ancillary Lender and an Ancillary Facility provided under the Revolving Facility, the maximum amount which that Ancillary Lender has agreed (whether or not subject to satisfaction of conditions precedent) to make available from time to time under an Ancillary Facility provided under the Revolving Facility and which has been authorised as such under Clause6 (Ancillary Facilities), to the extent that amount is not cancelled or reduced under this Agreement or the Ancillary Documents relating to that Ancillary Facility.

"Ancillary Document" means each document relating to or evidencing the terms of an Ancillary Facility.

"Ancillary Facility" means any ancillary facility made available by an Ancillary Lender in accordance with Clause 6 (Ancillary Facilities).

"Ancillary Lender" means each Lender (or Affiliate of a Lender) which makes available an Ancillary Facility in accordance with Clause 6 (Ancillary Facilities).

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"Ancillary Outstandings" means, at any time, in relation to an Ancillary Lender and an Ancillary Facility then in force the aggregate of the equivalents (as calculated by that Ancillary Lender) of the following amounts outstanding under that Ancillary Facility:

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

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

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

in each case as determined by such Ancillary Lender in accordance with the relevant Ancillary Document or normal banking practice.

"Ancillary Participation" means, in relation to an Ancillary Lender and an Ancillary Facility provided under the Uncommitted Facility, the maximum amount which that Ancillary Lender has agreed (at its sole discretion and whether or not subject to satisfaction of conditions precedent) to make available from time to time under an Ancillary Facility provided under the Uncommitted Facility and which has been authorised as such under Clause 6 (Ancillary Facilities), to the extent that amount is not cancelled or reduced under this Agreement or the Ancillary Documents relating to that Ancillary Facility.

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

"Available Credit Balance" means, in relation to an Ancillary Facility, credit balances on any account of any Borrower of that Ancillary Facility with the Ancillary Lender making available that Ancillary Facility to the extent that those credit balances are freely available to be set off by that Ancillary Lender against liabilities owed to it by that Borrower under that Ancillary Facility.

"Availability Period"means:

		(a)	in relation to any Term Facility, the period from and including the Fourth Effective Date to and including the date falling 5 days thereafter;

		(b)	in relation to the Revolving Facility, the period from and including the date of this Agreement to and including the date falling 3 Months prior to the Termination Date;

		(c)	in relation to any Ancillary Facility under the Revolving Facility, the period from and including the date of this Agreement to the Termination Date; and

		(d)	in relation to the Uncommitted Facility and any Ancillary Facility thereunder, the period from and including the date of this Agreement to the Uncommitted Facility Termination Date, but subject always to Clause 4.3 (Uncommitted Facility).

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"Available Commitment" means, in relation to a Facility, a Lender's Commitment minus (subject as set out below):

		(a)	the amount of its participation in any outstanding Loans under that Facility, and, in the case of the Revolving Facility and the Uncommitted Facility only, the aggregate of its (and its Affiliate's) Ancillary Commitments or Ancillary Participations under any Ancillary Facilities provided under the Revolving Facility or the Uncommitted Facility (as applicable); and

		(b)	in relation to any proposed Utilisation, the amount of its participation in any other Loans that are due to be made under that Facility on or before the proposed Utilisation Date and, in the case of the Revolving Facility and the Uncommitted Facility only, the amount of its (and its Affiliate's) Ancillary Commitments or Ancillary Participations in relation to any new Ancillary Facility that is due to be provided under the Revolving Facility or the Uncommitted Facility (as applicable) on or before the proposed Utilisation Date.

For the purposes of calculating a Lender's Available Commitment in relation to any proposed Revolving Loan and Uncommitted Facility Loan only, the following amounts shall not be deducted from that Lender's Revolving Facility Commitment or Uncommitted Facility Participation (as applicable):

		(i)	that Lender's participation in any Revolving Loans or Uncommitted Facility Loans (as applicable) that are due to be repaid or prepaid on or before the proposed Utilisation Date; and

		(ii)	that Lender's (and its Affiliate's) Ancillary Commitments or Ancillary Participations under any Ancillary Facilities provided under the Revolving Facility or the Uncommitted Facility (as applicable) to the extent that they are due to be reduced or cancelled on or before the proposed Utilisation Date.

"Available Revolving Facility" means, in relation to the Revolving Facility, the aggregate for the time being of each Lender's Available Commitment in respect of the Revolving Facility.

"Available Term Facility" means, in relation to any Term Facility, the aggregate for the time being of each Lender's Available Commitment in respect of that Term Facility.

"Available Uncommitted Facility" means, in relation to the Uncommitted Facility, the aggregate for the time being of each Lender's Available Commitment in respect of the Uncommitted Facility.

"Base Case Model" means the financial model including profit and loss, balance sheet and cashflow projections in agreed form relating to the Group prepared by the Company and delivered to the Agent pursuant to Clause 4.1(Initial conditions precedent).

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"Borrower" means an Original Borrower or an Additional Borrower unless it has ceased to be a Borrower in accordance with Clause 25 (Changes to the Obligors) and, in respect of an Ancillary Facility only, any Affiliate of a Borrower that becomes a borrower of that Ancillary Facility with the approval of the relevant Lender pursuant to Clause 6.9 (Affiliates of Borrowers).

"Borrowings" has the meaning given to that term in Clause 21.1 (Financial definitions).

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

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

exceeds:

		(b)	the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank 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.

"Budget" means:

		(a)	in relation to the period beginning on 1 January 2013 and ending on 31 December 2013, the Base Case Model in agreed form to be delivered by the Company to the Agent pursuant to Clause4.1 (Initial conditions precedent); and

		(b)	in relation to any other period, any budget delivered by the Company to the Agent in respect of that period pursuant to Clause 20.4 (Budget).

"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in Amsterdam, Frankfurt am Main and Luxembourg and (in relation to any date for payment or purchase of euro) any TARGET Day.

"Cash" means, at any time, cash denominated in any currency used in the jurisdiction of incorporation of each member of the Group, or used in the jurisdiction where the Group has a branch office, in hand or at bank and (in the latter case) credited to an account in the name of an Obligor with a Lender and to which an Obligor is alone (or together with other Obligors) beneficially entitled and for so long as:

		(a)	that cash is repayable on demand;

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

-5-

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

		(d)	the cash is freely and immediately available to be applied in repayment or prepayment of the Facilities.

"Cash Equivalent Investments" means at any time:

		(a)	certificates of deposit maturing within one year after the relevant date of calculation and issued by a Lender;

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

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

		(i)	for which a recognised trading market exists;

		(ii)	issued by an issuer incorporated in any member state of the European Economic Area or any Participating Member State;

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

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

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

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

in each case, denominated in EUR to which any member of the Group is alone (or together with other members of the Group beneficially entitled at that time and which is not issued or guaranteed by any member of the Group or subject to any Security (other than Security arising under the Security Documents).

"Charged Property" means all of the assets of the Obligors which from time to time are, or are expressed to be, the subject of the Transaction Security.

-6-

"Close‐Out Netting" means:

		(a)	in respect of a Hedging Agreement based on a 1992 ISDA Master Agreement, any step involved in determining the amount payable in respect of an Early Termination Date (as defined in the 1992 ISDA Master Agreement) under section 6(e) of the 1992 ISDA Master Agreement before the application of any subsequent Set‐off (as defined in the 1992 ISDA Master Agreement);

		(b)	in respect of a Hedging Agreement based on a 2002 ISDA Master Agreement, any step involved in determining an Early Termination Amount (as defined in the 2002 ISDA Master Agreement) under section 6(e) of the 2002 ISDA Master Agreement; and

		(c)	in respect of a Hedging Agreement not based on an ISDA Master Agreement, any step involved on a termination of the hedging transactions under that Hedging Agreement pursuant to any provision of that Hedging Agreement which has a similar effect to either provision referenced in paragraph (a) and paragraph (b) above.

"Code" means the US Internal Revenue Code of 1986.

"Commitment" means a Term Facility Commitment, a Revolving Facility Commitment and an Uncommitted Facility Participation.

"Completion Date" has the meaning given thereto in the Second Amendment and Restatement Agreement.

"Compliance Certificate" means a certificate substantially in the form set out in Schedule 6 (Form of Compliance Certificate).

"Confidential Information" means all information relating to the Company, any Obligor, the Group, the Finance Documents or the Facilities 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 Facilities from either:

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

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

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

		(i)	information that:

		(A)	is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 39 (Confidentiality); or

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

		(C)	is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the 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; and

		(ii)	any Funding Rate or Reference Bank Quotation.

"Confidentiality Undertaking" means a confidentiality undertaking substantially in the then most recent recommended form of the LMA or in any other form agreed between the Company and the Agent.

"Controlled Italian Obligor" has the meaning given thereto in Clause 19.30 (Direzione e Coordinamento).

"Credit Related Close-Out" means any Permitted Hedge Close-Out which is not a Non-Credit Related Close-Out.

"CRR" has the meaning given thereto in paragraph (b)(ii) of Clause 14.1 (Increased Costs).

"Current Assets" means any trade receivables and stock.

"Default" means an Event of Default or any event or circumstance specified in Clause23 (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 a Loan available (or has notified the Agent or the Company (which has notified the Agent) that it will not make its participation in a Loan available) by the Utilisation Date of that Loan in accordance with Clause 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

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		(B)	a Disruption Event; and

payment is made within 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.

"Designated Gross Amount" means the amount notified by the Company to the Agent upon the establishment of a Multi-account Overdraft as being the maximum amount of Gross Outstandings that will, at any time, be outstanding under that Multi-account Overdraft.

"Designated Net Amount" means the amount notified by the Company to the Agent upon the establishment of a Multi-account Overdraft as being the maximum amount of Net Outstandings that will, at any time, be outstanding under that Multi-account Overdraft.

"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 Facilities (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

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

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

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

(and which (in either such case)) is not caused by, and is beyond the control of, the Party whose operations are disrupted.

"Dormant Subsidiary" means a member of the Group which does not trade (for itself or as agent for any person) and does not own, legally or beneficially, assets (including, without limitation, indebtedness owed to it) which in aggregate have a value of EUR 20,000 or more or its equivalent in other currencies

"DutchGAAP" means generally accepted accounting principles in The Netherlands.

"Effective Date" has the meaning given thereto in the Amendment and Restatement Agreement.

"Environmental Claim" means any claim, proceeding or investigation by any person in respect of any Environmental Law.

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"Environmental Law" means any applicable law in any jurisdiction in which any member of the Group 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, licence, consent, approval and other authorisation and the filing of any notification, report or assessment required under any Environmental Law for the operation of the business of any member of the Group conducted on or from the properties owned or used by the relevant member of the Group.

"EURIBOR" means, in relation to any Loan in euro:

		(a)	the applicable Screen Rate as of the Specified Time for euro and for a period equal in length to the Interest Period of that Loan; or

		(b)	as otherwise determined pursuant to Clause 11.1 (Unavailability of Screen Rate),

and if, in either case, that rate is less than zero, EURIBOR shall be deemed to be zero.

"Event of Default" means any event or circumstance specified as such in Clause23 (Events of Default).

"Existing Financial Indebtedness" means:

		(a)	the facilities agreement dated 28 October 2010 between NIBC Bank N.V. and Brand Loyalty Holding B.V. in an aggregate amount of EUR 25,000,000; and

		(b)	the facilities agreement dated 27 October 2010 between Deutsche Bank Nederland N.V. and Brand Loyalty Holding B.V. and certain of its subsidiaries in an aggregate amount of EUR 55,000,000.

"Existing Security" means any and all Security and guarantees granted in favour of NIBC Bank N.V. and Deutsche Bank Nederland N.V. (as the case may be) under and in relation to the Existing Financial Indebtedness.

"Facilities" means a Term Facility, the Revolving Facility and the Uncommitted 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 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 Code or any associated regulations;

		(b)	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction,

-10-

which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

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

"FATCA Application Date" means:

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

		(b)	in relation to a "withholdable payment" described in section 1473(1)(A)(ii) of the Code (which relates to "gross proceeds" from the disposition of property of a type that can produce interest from sources within the US), 1 January 2019; or

		(c)	in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2019,

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Agreement.

"FATCA Deduction" means a deduction or withholding from a payment under a Finance Document required by FATCA.

"FATCA Exempt Party" means a Party that is entitled to receive payments free from any FATCA Deduction.

"Fee Letter" means:

		(a)	any letter or letters dated on or about the date of this Agreement, the Third Effective Date or the Fourth Effective Date between the relevant Arrangers and the Company (or the Agent and the Company or the Security Agent and the Company) setting out any of the fees referred to in Clause 12 (Fees); and

		(b)	any other agreement setting out fees referred to in Clause 2.4 (Increase) or Clause 12.6 (Interest, commission and fees on Ancillary Facilities).

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"Finance Document" means this Agreement, the Amendment Agreement, the Amendment and Restatement Agreement, the Second Amendment and Restatement Agreement, the Third Amendment and Restatement Agreement, the Fourth Amendment and Restatement Agreement, the Security Documents, any Fee Letter, any Hedging Agreement, any Accession Letter, any Resignation Letter, any Selection Notice, any Ancillary Document, any TEG Letter and any other document designated as a "Finance Document" by the Agent and the Company provided that where the term "Finance Document" is used in, and construed for the purposes of, this Agreement, a Hedging Agreement shall be a Finance Document only for the purposes of:

		(a)	the definition of "Material Adverse Effect";

		(b)	the definition of "Security Document";

		(c)	paragraph (a)(iv) of Clause 1.2 (Construction);

		(d)	Clause 18 (Guarantee and Indemnity);

		(e)	Clause 27.2 (Parallel Debt);

		(f)	Clause 33 (Application of Proceeds); and

		(g)	Clause 23 (Events of Default) (other than Clause 23.21 (Acceleration)).

"Finance Party" means the Agent, an Arranger, the Security Agent, a Lender, a Hedge Counterparty or any Ancillary Lender provided that where the term "Finance Party" is used in, and construed for the purposes of, this Agreement a Hedge Counterparty shall be a Finance Party only for the purposes of:

		(a)	the definition of "Secured Parties";

		(b)	paragraph (a)(i) of Clause 1.2 (Construction);

		(c)	paragraph (c) of the definition of Material Adverse Effect;

		(d)	Clause 18 (Guarantee and Indemnity);

		(e)	Clause 27.2 (Parallel Debt); and

		(f)	Clause 29 (Conduct of business by the Finance Parties).

"Financial Indebtedness" means any indebtedness for or in respect of:

		(a)	moneys borrowed;

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

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

-12-

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

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

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

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

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

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

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

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

"Financial Quarter" has the meaning given to that term in Clause 21.1 (Financial definitions).

"Financial Year" has the meaning given to that term in Clause 21.1 (Financial definitions).

"Fourth Amendment and Restatement Agreement" means the amendment and restatement agreement dated 9 June 2016 between Brand Loyalty Group B.V. as the Company, the subsidiaries of the Company listed in Part I of Schedule 1 (The Parties) thereto (together with the Company) as Borrowers, the subsidiaries of the Company listed in Part I of Schedule 1 (The Parties) thereto (together with the Company) as Guarantors, the subsidiaries of the Company listed in Part I of Schedule 1 (The Parties) thereto as New Obligors, the Existing Lenders, the New Lenders,Deutsche Bank AG, Amsterdam branch, NIBC Bank N.V., ING Bank N.V. and Coöperatieve Rabobank U.A. as Arrangers, Deutsche Bank AG and ING Bank N.V. as Existing Hedge Counterparties, NIBC Bank N.V. and Coöperatieve Rabobank U.A. as New Hedge Counterparties and ING Bank N.V. as Agent and Security Agent (each as defined therein).

"Fourth Effective Date" means "Fourth Effective Date" as defined in the Fourth Amendment and Restatement Agreement.

"French Borrower" means a Borrower incorporated in France.

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"French Guarantor" means a Guarantor incorporated in France.

"French Obligor" means a French Borrower or a French Guarantor.

"Funding Rate" means any individual rate notified by a Lender to the Agent pursuant to paragraph 11.4(a)(ii) of Clause 11.4 (Cost of funds).

"Gross Outstandings" means, in relation to a Multi-account Overdraft, the Ancillary Outstandings of that Multi-account Overdraft but calculated on the basis that the words "(net of any Available Credit Balance)" in paragraph (a) of the definition of "Ancillary Outstandings" were deleted.

"Group" means the Company and its Subsidiaries for the time being, but excluding any Ringfenced Entity.

"Group Structure Chart" means the group structure chart showing:

		(a)	all members of the Group, including current name and company registration number, its jurisdiction of incorporation and/or establishment and a list of shareholders; and

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

"Guarantor" means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance with Clause 25 (Changes to the Obligors).

"Hedge Counterparty" means:

		(a)	any Original Hedge Counterparty; and

		(b)	any entity which has become a Party as a Hedge Counterparty in accordance with Clause 28.1 (Accession of Hedge Counterparties).

"Hedge Counterparty Accession Undertaking" means an undertaking in the form set out in Schedule 10 (Hedge Counterparty Accession Undertaking).

"Hedging Agreement" means any master agreement, confirmation, schedule or other agreement entered into or to be entered into by the Borrowers and a Hedge Counterparty for the purpose of hedging the types of liabilities and/or risks in relation to the Facilities which, at the time that that master agreement, confirmation, schedule or other agreement (as the case may be) is entered into, a Hedging Letter permits to be hedged.

"Hedging Letter" means:

		(a)	the letter dated on or before the date of this Agreement and made between the Agent and the Company describing the hedging arrangements to be entered into in respect of the interest rate liabilities and/or the exchange rate risks of the Borrowers of, and in relation to, the Term Facility (as defined therein) and Revolving Facility;

-14-

		(b)	the letter dated on or about the Effective Date and made between the Agent, the Hedge Coordinator (as defined therein) and the Company describing the hedging arrangements (to be) entered into in respect of the interest rate liabilities and/or the exchange rate risks of the Borrowers of, and in relation to, the Term Facility (as defined therein) and the Revolving Facility;

		(c)	the letter dated on or about the Third Effective Date and made between the Agent, the Hedge Coordinator (as defined therein) and the Company describing the hedging arrangements (to be) entered into in respect of the interest rate liabilities of the Borrowers of, and in relation to, the Facilities; and

		(d)	the letter dated on or about the Fourth Effective Date and made between the Agent, the Hedge Coordinator (as defined therein) and the Company describing the hedging arrangements (to be) entered into in respect of the interest rate liabilities of the Borrowers of, and in relation to, the Facilities.

"Hedging Liabilities" means all obligations at any time due, owing or incurred by any Obligor to any Hedge Counterparty under the Hedging Agreements, whether present or future, actual or contingent (and whether incurred solely or jointly and whether as principal or surety or in some other capacity.

"HMT" means Her Majesty's Treasury.

"Holding Company" means, in relation to a person, any other person in respect of which it is a Subsidiary.

"IFRS" means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.

"Impaired Agent" means the Agent at any time when:

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

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		(ii)	the Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

"Increase Confirmation" means a confirmation substantially in the form set out in Schedule12 (Form of Increase Confirmation).

"Increase Lender" has the meaning given to that term in Clause 2.4 (Increase).

"Insolvency Event" in relation to an entity means that the entity:

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

		(b)	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)	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 or entity 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

		(ii)	is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;

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

		(g)	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than, for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a person or entity described in paragraph(d) above);

		(h)	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

-16-

secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;

		(i)	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 (h) above; or

		(j)	takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

"Intellectual Property" means any patents, trade marks, service marks, designs, business names, copyrights, design rights, moral rights, inventions, confidential information, knowhow and other intellectual property rights and interests, whether registered or unregistered, and the benefit of all applications and rights to use such assets of each Obligor.

"Inter‐Hedging Agreement Netting" means the exercise of set‐off, account combination, close‐out netting or payment netting (whether arising out of a cross agreement netting agreement or otherwise) by a Hedge Counterparty against liabilities owed to an Obligor by that Hedge Counterparty under a Hedging Agreement in respect of Hedging Liabilities owed to that Hedge Counterparty by that Obligor under another Hedging Agreement.

"Interpolated Screen Rate" means, in relation to EURIBOR for any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

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

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

each as of the Specified Time for euro.

"Interest Period" means, in relation to a Loan, each period determined in accordance with Clause10 (Interest Periods)and, in relation to an Unpaid Sum, each period determined in accordance with Clause9.3 (Default interest).

"Italian Civil Code" means the Italian civil code, enacted by Royal Decree No. 262 of 16 March 1942, as subsequently amended and supplemented.

"Italian Obligor" means an Obligor which is incorporated under the laws of Italy.

"Japanese Guarantor" means a Guarantor which is incorporated or established under the laws of Japan.

"Joint Venture" means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity.

"Lender" means:

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		(a)	any Original Lender; and

		(b)	any bank, financial institution, trust, fund or other entity which has become a Party as a Lender in accordance with Clause 2.4 (Increase) or Clause 24 (Changes to the Lenders),

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.

"LMA" means the Loan Market Association.

"Loan" means a Term Loan, a Revolving Loan or an Uncommitted Facility Loan.

"Majority Lenders" means a Lender or Lenders whose Commitments aggregate more than 662/3% of the aggregate Commitments (or, if the aggregate Commitments have been reduced to zero, aggregated more than 662/3% of the aggregate Commitments immediately prior to the reduction).

"Margin" means:

		(a)	in relation to any Term Loan, 2.25 per cent. per annum;

		(b)	in relation to any Revolving Loan, 1.50 per cent. per annum;

		(c)	in relation any Uncommitted Facility Loan, 1.10 per cent. per annum,

but if:

		(a)	no Default has occurred and is continuing; and

		(b)	Senior Net Leverage in respect of the most recently completed Relevant Period ending on or after three Months after the Fourth Effective Date is within a range set out below,

Then the Margin for:

(i) each Term Loan will be the percentage per annum set out below in the column opposite that range:

 

	
Senior Net Leverage

		
Term Facility 

Margin % p.a.

	
Greater than or equal to 3.00:1.00

		
 

2.25

	
Less than 3.00:1.00 but greater than or equal to 2.50:1.00

		
 

1.85

	
Less than 2.50:1:00 but greater than or equal to 2.00:1.00

		
 

1.65

	
Less than 2.00:1.00

		
 

1.55

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(ii) each Revolving Loan will be the percentage per annum set out below in the column opposite that range:

	
Senior Net Leverage

		
Revolving Facility 

Margin % p.a.

	
Greater than or equal to 3.00:1.00

		
 

1.50

	
Less than 3.00:1.00 but greater than or equal to 2.00:1.00

		
 

1.25

	
Less than 2.00:1.00 but greater than or equal to 1.50:1.00

		
 

1.10

	
Less than 1.50:1.00 but greater than or equal to 1.00:1.00

		
 

0.95

	
Less than 1.00:1.00

		
 

0.90

 

and (iii) each Uncommitted Facility Loan will be the percentage per annum set out below in the column opposite that range:

	
Senior Net Leverage

		
Uncommitted Facility 

Margin % p.a.

	
Greater than or equal to 2.00:1.00

		
 

1.10

	
Less than 2.00:1.00 but greater than or equal to 1.50:1.00

		
 

0.95

	
Less than 1.50:1.00

		
 

0.80

 

However, in each case:

		(i)	any increase or decrease in the Margin applicable to a Loan shall take effect on the date which is the first day of the next Interest Period for that Loan following receipt by the Agent of the Compliance Certificate for that Relevant Period pursuant to Clause20.2 (Compliance Certificate) or, in case no Loan is outstanding under the relevant Facility, any increase or decrease in the Margin for that Facility shall take effect on the date which is 5 Business Days after receipt by the Agent of the Compliance Certificate for that Relevant Period pursuant to Clause20.2 (Compliance Certificate);

		(ii)	if, following receipt by the Agent of the annual audited financial statements of the Group and related Compliance Certificate, those statements and Compliance Certificate do not confirm the basis for:

		(A)	a reduced Margin, then paragraph (b) of Clause 9.2 (Payment of interest) shall apply and the Margin for that Loan shall be the percentage per annum determined using the table above and the revised ratio of Senior Net Leverage calculated using the figures in the Compliance Certificate; or

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		(B)	an increased Margin, then, provided that the Lenders are also the Original Lenders, paragraph (c) of Clause 9.2 (Payment of interest) shall apply, and the Lenders shall reimburse the Company the amount received by the Lenders in excess of the amount of interest the Lenders should have received had the appropriate rate applied during such period;

		(iii)	while:

		(A)	an Event of Default is continuing; or

		(B)	the Company failed to supply a Compliance Certificate to the Agent in accordance with Clause 20.2 (Compliance Certificate),

the Margin for each Loan shall be the highest percentage per annum set out above for such Loan; and

		(iv)	for the purpose of determining the Margin, Senior Net Leverage and Relevant Period shall be determined in accordance with Clause 21.1 (Financial definitions).

"Material Adverse Effect"means a material adverse effect on:

		(a)	the business, operations, property, condition (financial or otherwise) or prospects of the Group taken as a whole;

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

		(c)	the validity or enforceability of, or the effectiveness or ranking of any Transaction Security granted or purporting to be granted pursuant to any of, the Finance Documents or the rights or remedies of any Finance Party under any of the Finance Documents.

"Material Company" means:

		(a)	an Obligor;

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

		(c)	a Subsidiary of the Company which has earnings before interest, tax, depreciation and amortisation calculated on the same basis as EBITDA (as defined in Clause 21.1 (Financial definitions) representing 10 % or more of EBITDA (as defined in Clause 21.1 (Financial definitions) of the Group, calculated on a consolidated basis.

"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

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month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

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

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

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

"Multi-account Overdraft" means an Ancillary Facility which is an overdraft facility comprising more than one account.

"Net Outstandings" means, in relation to a Multi-account Overdraft, the Ancillary Outstandings of that Multi-account Overdraft.

"New Equity" means the proceeds of any issue of shares by the Company which proceeds are to be applied in accordance with and for the purposes as set out in Clause 21.4 (Equity cure).

"New Lender" has the meaning given to that term in Clause 24 (Changes to the Lenders).

"Non-Consenting Lender" has the meaning given to that term in Clause 38.5 (Replacement of a Lender).

"Non-Cooperative Jurisdiction" means, in relation to an Obligor established in France for tax purposes, a "non-cooperative state or territory" (Etat ou territoire non coopératif) as set out in the list referred to in Article 238-0 A of the French tax code (Code Général des Impôts), as such list may be amended from time to time.

"Non‐Credit Related Close‐Out" means a Permitted Hedge Close‐Out described in any of paragraphs (a)(i) or (a)(iii) of Clause 28.8 (Permitted enforcement by Hedge Counterparties).

"Obligor" means a Borrower or a Guarantor.

"OFAC" means the Office of Foreign Assets Control of the US Department of Treasury.

"Original Financial Statements" means:

		(a)	in relation to the Company, the audited consolidated financial statements of the Group for the Financial Year ended 2011; and

		(b)	to the extent available, in relation to each Original Obligor other than the Company, its audited financial statements for its Financial Year ended 2011.

"Original Obligor" means an Original Borrower or an Original Guarantor.

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"Participating Member State" means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

"Party" means a party to this Agreement.

"Payment Netting" means:

		(a)	in respect of a Hedging Agreement based on an ISDA Master Agreement, netting under section 2(c) of the relevant ISDA Master Agreement; and

		(b)	in respect of a Hedging Agreement not based on an ISDA Master Agreement, netting pursuant to any provision of that Hedging Agreement which has a similar effect to the provision referenced in paragraph (a) above.

"Permitted Gross Outstandings" means, in relation to a Multi-account Overdraft, any amount, not exceeding its Designated Gross Amount, which is the amount of the Gross Outstandings of that Multi-account Overdraft.

"Permitted Hedge Close‐Out" means, in relation to a hedging transaction under a Hedging Agreement, a termination or close‐out of that hedging transaction which is permitted pursuant to Clause28.8 (Permitted enforcement by Hedge Counterparties).

"Qualifying Lender" has the meaning given to it in Clause 13 (Tax gross-up and indemnities).

"Quotation Day" means, in relation to any period for which an interest rate is to be determined two TARGET Days before the first day of that period unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that currency 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).

"Reduction Date" means 25 Augustus 2018.

"Reduction Instalment Revolving Facility" means EUR 25,000,000.

"Reduction Instalment Uncommitted Facility" means EUR 25,000,000.

"Reference Bank Rate" means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks:

		(a)	(other than where paragraph (b) below applies) as the rate at which the relevant Reference Bank believes one prime bank is quoting to another prime bank for interbank term deposits in euro within the Participating Member States for the relevant period; or

		(b)	if different, as the rate (if any and applied to the relevant Reference Bank and the relevant period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator.

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"Reference Banks" means the principal office (i) in Amsterdam of ING Bank N.V., (ii) in Luxembourg of Deutsche Bank Luxembourg S.A. and (iii) in Utrecht of Coöperatieve Rabobank U.A. or such other banks as may be appointed by the Agent in consultation with the Company.

"Reference Bank Quotation" means any quotation supplied to the Agent by a Reference Bank.

"Refusing Lender" has the meaning given to that term in Clause 5.4(b) (Availability).

"Related Fund" in relation to a fund (the "first fund"), means a fund which is managed or advised by the same investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser of the first fund.

"Relevant Interbank Market" means the European interbank market.

"Relevant Jurisdiction" means:

		(a)	the jurisdiction of incorporation of each Material Company; and

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

"Relevant Period" has the meaning given to that term in Clause 21.1 (Financial definitions).

"Repeating Representations" means each of the representations set out in Clauses 19.1 (Status) to 19.6 (Governing law and enforcement), Clause 19.10 (No default), paragraph (b) of Clause 19.11 (No misleading information), Clause 19.12 (Financial statements), Clause 19.13 (No proceedings pending or threatened), Clause 19.18 (Sanctions), Clause 19.19 (Ranking) to Clause 19.21 (Legal and Beneficial Owner) and Clause 19.26 (Centre of main interests and establishments).

"Representative" means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

"Resignation Letter" means a letter substantially in the form set out in Schedule 5 (Form of Resignation Letter).

"Restricted Person" means a person that is:

		(a)	listed on, or owned or controlled by a person listed on any Sanctions List;

		(b)	located in, incorporated under the laws of, or owned or controlled by, or acting on behalf of, a person located in or organised under the laws of a country or territory that is the target of country-wide Sanctions (including, without limitation, at the date of this Agreement Cuba, Iran, Myanmar (Burma), North Korea, Syria and Sudan); or

		(c)	otherwise a target of Sanctions.

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"RevolvingFacility" means the EUR 62,500,000 revolving loan facility made available under this Agreement as described in Clause 2.2 (The Revolving Facility).

"Revolving Facility Commitment" means:

		(a)	in relation to an Original Lender, the aggregate of:

		(i)	the amount set opposite its name under the heading "Revolving Facility Commitment" in Part II of Schedule 1 (The Original Parties);and

		(ii)	the amount of any other Revolving Facility Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase); and

		(b)	in relation to any other Lender, the amount of any Revolving Facility Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase),

to the extent not cancelled, reduced or transferred by it under this Agreement.

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

"Ringfenced Entity" means any entity which:

		(a)	does not have the benefit of any Security or guarantees granted by any member of the Group;

		(b)	is not directly or indirectly financed (including by way of any form of further equity) by or otherwise financially supported by any member of the Group; and

		(c)	does not and its creditors do not have any recourse to any member of the Group.

"Rollover Loan" means one or more Revolving Loans or Uncommitted Facility Loans (as applicable):

		(a)	made or to be made on the same day that a maturing Revolving Loan or Uncommitted Facility Loan (as applicable) is due to be repaid;

		(b)	the aggregate amount of which is equal to or less than the amount of the maturing Revolving Loan or Uncommitted Facility Loan (as applicable);

		(c)	made or to be made available under the same Facility as the maturing Revolving Loan or Uncommitted Facility Loan (as applicable); and

		(d)	made or to be made to the same Borrower for the purpose of refinancing a maturing Revolving Loan or Uncommitted Facility Loan (as applicable).

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"Sanctions" means any financial, trade or economic sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by a Sanctions Authority.

"Sanctions Authority" means (i) the US government, (ii) the United Nations, (iii) the European Union or its Participating Member States, (iv) any country to which any Obligor, or any other member of the Group or any Affiliate of any of them is bound, or (v) the respective governmental institutions and agencies of any of the foregoing, including without limitation, the OFAC, the United States Department of State, HMT and the French minister for finance and economy and the relevant agencies and department supervised by the French minister for finance and economy.

"Sanctions List" means the "Specially Designated Nationals and Blocked Persons" list issued by OFAC, the Consolidated List of Financial Sanctions Targets and Investment Ban List issued by HMT, or any similar list issued or maintained or made public by any of the Sanctions Authorities.

"Screen Rate" means the euro interbank offered rate administered by the European Money Markets Institute (or any other person which takes over the administration of that rate), for the relevant period displayed on page EURIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with the Company and the Lenders.

"SecondAmendment and Restatement Agreement" means the amendment and restatement agreement dated 19 December 2013 between, among others, the Lenders, the Agent and the Company (each as defined therein).

"Secured Obligations" means all obligations at any time due, owing or incurred by any Obligor to any Secured Party under the Finance Documents, whether present or future, actual or contingent (and whether incurred solely or jointly and whether as principal or surety or in some other capacity).

"Secured Parties" means the Security Agent, the Agent, each Lender, each Arranger, each Hedge Counterparty and each Ancillary Lender (including any Affiliate of a Lender which is an Ancillary Lender) from time to time party to this Agreement.

"Security" means a mortgage, charge, pledge, lien, assignment or transfer for security purposes or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

"Security Documents" means:

		(a)	each of the documents listed as being a Security Document in paragraph 3 of Part I of Schedule 2 (Conditions Precedent) of this Agreement and any document required to be delivered to the Agent under paragraph 12 of Part II of Schedule 2 (Conditions Precedent);

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		(b)	each of the documents listed as being a Security Document in paragraph 3(a) of Schedule 2 (Conditions Precedent) of the Amendment and Restatement Agreement;

		(c)	each of the documents listed as being a Security Document in paragraph 2 of Schedule 2 (Conditions Precedent) of the Third Amendment and Restatement Agreement;

		(d)	each of the documents listed as being a Security Document in paragraph 2 of Schedule 2 (Conditions Precedent) of the Fourth Amendment and Restatement Agreement; and

		(e)	any other document entered into by any Obligor creating or expressed to create any Security over all or any part of its assets in respect of the obligations of any of the Obligors under any of the Finance Documents.

"Selection Notice" means a notice substantially in the form set out in Schedule 2Part IV (Selection notice) given in accordance with Clause 10 (Interest Periods) in relation to a Term Facility.

"Separate Loan" has the meaning given to that term in Clause 7 (Repayment).

"ShareBuyback" means the purchase by the Company (inkoop) on 10 June 2016 of the remaining shares in the share capital of the Company that are not directly or indirectly held by the Alliance Data Systems Corporation immediately prior to the Fourth Effective Date for a purchase price of EUR 230,000,000 in accordance with the Supplemental Agreement.

"Specified Time" means a time determined in accordance with Schedule 8 (Timetables).

Subordinated Shareholder Loan" means any subordinated shareholder loan on arms' length terms made available to the Company by one or more of the members of Coöperatie Brand Loyalty U.A. which is subordinated in full to the rights of the Finance Parties in form and substance satisfactory to the Finance Parties.

"Subordinated Shareholder Loan Agreement" means any subordinated shareholder loan agreement on arms' length terms made between the relevant member(s) of Coöperatie Brand Loyalty U.A. as subordinated lender(s) and the Company as subordinated borrower pursuant to which a Subordinated Shareholder Loan is made available to the Company.

"Subsidiary" means in relation to any person incorporated in The Netherlands a subsidiary (dochtermaatschappij) within the meaning of Section 24a of Book 2 of the Dutch Civil Code, and 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

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		(c)	which is a Subsidiary of another Subsidiary of the first mentioned company or corporation,

and for the 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.

"Supplemental Agreement" means the supplemental agreement to the share purchase agreement relating to Brand Loyalty Group B.V. among Stichting Administratiekantoor Brand Loyalty, Coöperatie Brand Loyalty U.A.,ADS Apollo Holdings B.V. and the Company dated on or about the Fourth Effective Date.

"Swiss Guarantor" has the meaning given to that term in Clause 18.12 (Swiss Guarantee Limitations).

"Swiss Withholding Tax" means taxes imposed under the Swiss Withholding Tax Act.

"Swiss Withholding Tax Act" means the Swiss Federal Act on the Withholding Tax of 13 October 1965 (Bundesgesetz über die Verrechnungssteuer), together with the related ordinances, regulations and guidelines, all as amended and applicable from time to time.

"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).

"Tax Confirmation" shall have the meaning ascribed to it in Clause 13 (Tax Gross Up and Indemnities).

"TEG Letter" means a letter substantially in the form set out in Schedule 12 (Form of TEG Letter).

"Term Facility" means Term Facility A-1 or Term Facility A-2.

"Term Facility Commitment" means Term Facility A-1 Commitment or Term Facility A-2 Commitment.

"Term Facility A-1" means the term loan facility made available under the Agreement as described in paragraph 2.1(a) (The Facilities).

"Term Facility A-1 Commitment" means:

		(a)	in relation to an Original Lender, the amount set opposite its name under the heading "Term FacilityA-1 Commitment" in Part II of Schedule 1 (The

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Original Parties) and the amount of any other Term Facility A-1 Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase); and

		(b)	in relation to any other Lender, the amount of any Term Facility A-1 Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase),

to the extent not cancelled, reduced or transferred by it under this Agreement.

"Term Facility A-1 Repayment Date" means each repayment date set out or referred to in Clause 7.1(a) (Repayment of Term Loans).

"Term Facility A-2" means the term loan facility made available under the Agreement as described in paragraph 2.1(b) (The Facilities).

"Term Facility A-2 Commitment" means:

		(a)	in relation to an Original Lender, the amount set opposite its name under the heading "Term FacilityA-2 Commitment" in Part II of Schedule 1 (The Original Parties) and the amount of any other Term Facility A-2 Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase); and

		(b)	in relation to any other Lender, the amount of any Term Facility A-2 Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase),

to the extent not cancelled, reduced or transferred by it under this Agreement.

"Term Facility A-2 Repayment Date" means the Termination Date.

"Term Facility Repayment Date" means a Term Facility A-1 Repayment Date or a Term Facility A-2 Repayment Date.

"Term Loan" means a Term Loan A-1 or a Term Loan A-2.

"Term Loan A-1" means a loan made or to be made under Term Facility A-1 or the principal amount outstanding for the time being of that loan.

"Term Loan A-2" means a loan made or to be made under Term Facility A-2 or the principal amount outstanding for the time being of that loan.

"Termination Date" means the date falling 4 years after the Fourth Effective Date.

"ThirdAmendment and Restatement Agreement" means the amendment and restatement agreement dated 25 August 2015 between Brand Loyalty Group B.V. as the Company, the subsidiaries of the Company listed in Part I of Schedule 1 (The Parties) thereto (together with the Company) as Borrowers, the subsidiaries of the Company listed in Part I of Schedule 1 (The Parties) thereto (together with the Company) as Guarantors, the Continuing Lenders, the Exiting Lenders, Deutsche Bank Nederland N.V. and ING Bank N.V. as Arrangers, Deutsche Bank AG and ING

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Bank N.V. as Hedge Counterparties and ING Bank N.V. as Agent and Security Agent (each as defined therein).

"Third Effective Date" has the meaning given thereto in the Third Amendment and Restatement Agreement.

"Transaction Security" means the Security created or expressed to be created in favour of the Security Agent and/or the Secured Parties (or any of them) pursuant to the Security Documents.

"Transfer Certificate" means a certificate substantially in the form set out in Schedule 3 (Form of Transfer Certificate) or any other form agreed between the Agent and the Company.

"Transfer Date" means, in relation to an assignment or a transfer, the later of:

		(a)	the proposed Transfer Date specified in the relevant Transfer Certificate; and

		(b)	the date on which the Agent executes the relevant Transfer Certificate.

"Treasury Transactions" means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price.

"Total Term Facility A-1 Commitments" means the aggregate of the Facility A-1 Commitments, being EUR 90,000,000 at the Fourth Effective Date.

"Total Term Facility A-2 Commitments" means the aggregate of the Facility A-2 Commitments, being EUR 100,000,000 at the Fourth Effective Date.

"Total Revolving Facility Commitments" means the aggregate of the Revolving Facility Commitments, being EUR 62,500,000 at the Fourth Effective Date.

"Total Uncommitted Facility Participations" means the aggregate of the Uncommitted Facility Participations, being EUR 62,500,000 at the Fourth Effective Date.

"Uncommitted Facility" means the EUR 62,500,000 uncommitted working capital facility as described under Clause 2.3 (The Uncommitted Facility).

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

"Uncommitted Facility Participation" means:

		(a)	in relation to an Original Lender, the aggregate of:

		(i)	the amount set opposite its name under the heading "Uncommitted Facility Participation" in Part II of Schedule 1 (The Original Parties);and

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		(ii)	and the amount of any other Uncommitted Facility Participation transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase); and

		(b)	in relation to any other Lender, the amount of any Uncommitted Facility Participation transferred to it under this Agreement or assumed by it in accordance with Clause 2.4 (Increase),

to the extent not cancelled, reduced or transferred by it under this Agreement.

"Uncommitted Facility Termination Date" means, in respect of any Lender the date on which that Lender, in its sole discretion, notifies the Company (with a copy to the Agent for information purposes only) of its decision to cancel and demand repayment of the amounts outstanding under the Uncommitted Facility and/or any Ancillary Facility provided thereunder.

"Unpaid Sum" means any sum due and payable but unpaid by an Obligor under the Finance Documents.

"US" means the United States of America.

"US GAAP" means generally accepted accounting principles in the US.

"Utilisation" means a utilisation of a Term Facility, the Revolving Facility or the Uncommitted Facility.

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

"Utilisation Request" means a notice substantially in the form set out in Schedule 2 Part III (UtilisationRequest).

"VAT" means:

		(a)	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and

		(b)	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere.

	1.2	Construction

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

		(i)	the "Agent", any "Arranger", the "Security Agent", any "Finance Party", any "Secured Party", any "Lender", any "Hedge Counterparty", any "Obligor" or any "Party" shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents and, in the case of the Security Agent, any person for the

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time being appointed as Security Agent or Security Agents in accordance with this Agreement;

		(ii)	"assets" includes present and future properties, revenues and rights of every description;

		(iii)	"director" includes any statutory legal representative(s) (organschaftlicher Vertreter) of a person pursuant to the laws of its jurisdiction of incorporation, including but not limited to, in relation to a person incorporated or established in Germany, a managing director (Geschäftsführer) or member of the board of directors (Vorstand);

		(iv)	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, replaced or restated;

		(v)	"guarantee" means (other than in Clause 18 (Guarantee and Indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets 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;

		(vi)	"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;

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

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

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

		(x)	a time of day is a reference to Amsterdam time.

		(b)	Section, Clause and Schedule headings are for ease of reference only.

		(c)	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.

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

		(i)	the account is with the Ancillary Lender in respect of that Ancillary Facility;

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

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

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

		(f)	A Borrower "repaying" or "prepaying" Ancillary Outstandings means:

		(i)	that Borrower providing cash cover in respect of those Ancillary Outstandings;

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

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

and the amount by which Ancillary Outstandings are repaid or prepaid under paragraphs (i) and (ii) above is the amount of the relevant cash cover, reduction or cancellation.

		(g)	An amount borrowed includes any amount utilised under an Ancillary Facility.

	1.3	Currency Symbols and Definitions

"EUR" and "euro" denote the single currency unit of the Participating Member States.

	1.4	Dutch terms

In this Agreement, where it relates to a Dutch entity, a reference to:

		(a)	a necessary action to authorise, where applicable, includes without limitation, any action required to comply with the Dutch Works Councils Act (Wet op de ondernemingsraden);

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		(b)	a winding up, administration or dissolution includes a Dutch entity being:

		(i)	declared bankrupt (failliet verklaard); and/or

		(ii)	dissolved (ontbonden);

		(c)	a moratorium includes surseance van betaling;

		(d)	a liquidator includes a curator;

		(e)	an administrator includes a bewindvoerder; and

		(f)	an attachment includes a beslag.

	1.5	French terms

In this Agreement, where it relates to a French entity, a reference to:

		(a)	"acting in concert" has the meaning given in article L.233-10 of the French Code de commerce;

		(b)	"control" has the meaning given in article L.233-3 of the French Code de commerce;

		(c)	"financial assistance" has the meaning deriving from article L.225-216 of the French Code de commerce;

		(d)	"gross negligence" means "faute lourde";

		(e)	a "guarantee" includes any "cautionnement", "aval" and any "garantie" which is independent from the debt to which it relates;

		(f)	"merger" includes any "fusion" implemented in accordance with articles L.236-1 to L.236-24 of the French Code de commerce;

		(g)	a "reconstruction" includes, in relation to any company, any contribution of part of its business in consideration of shares (apport partiel d'actifs) and any demerger (scission) implemented in accordance with articles L.236-1 to L.236-24 of the French Code de commerce;

		(h)	a "security interest" includes any type of security (sûreté réelle), transfer or assignment by way of security and "fiducie-sûreté"; and

		(i)	"wilful misconduct" means "dol".

	1.6	Italian terms

In this Agreement, where it relates to an Italian entity, a reference to:

		(a)	a winding-up, administration or dissolution includes, without limitation, any liquidazione, procedura concorsuale (fallimento, concordato preventivo, liquidazione coatta amministrativa, amministrazione straordinaria o

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ristrutturazione industriale delle grandi imprese in stato d'insolvenza), cessione dei beni ai creditori, or any other similar proceedings;

		(b)	an insolvency proceeding includes, without limitation, any procedura concorsuale (including fallimento, concordato preventivo, concordato fallimentare, accordo di ristrutturazione dei debiti pursuant to article 182-bis of the Italian Bankruptcy Law, piano di risanamento pursuant to article 67, paragraph 3 of the Italian Bankruptcy Law, liquidazione coatta amministrativa, amministrazione straordinaria, amministrazione straordinaria delle grandi imprese in stato di insolvenza, domanda di "pre-concordato" pursuant to article 161, paragraph 6 of the Italian Bankruptcy Law, any procedura di risanamento or procedura di liquidazione pursuant to Legislative Decree No. 170 of 21 May 2004 and cessione dei beni ai creditori pursuant to Article 1977 of the Italian Civil Code) and any other proceedings or legal concepts similar to the foregoing;

		(c)	a receiver, administrative receiver, administrator or the like includes, without limitation, a curatore, commissario giudiziale, commissario straordinario, commissario liquidatore, or any other person performing the same function of each of the foregoing;

		(d)	a lease includes, without limitations, a contratto di locazione;

		(e)	a matured obligation includes, without limitation, any credito liquido ed esigibile and credito scaduto; and

		(f)	Security includes, without limitation, any pegno, ipoteca, privilegio speciale (including the privilegio speciale created pursuant to Article 46 of the Italian Legislative Decree No. 385 of 1 September 1993, as amended from time to time), cessione del credito in garanzia, diritto reale di garanzia and any other garanzia reale or other transactions having the same effect as each of the foregoing.

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SECTION 2

 THE FACILITIES

	2.	THE FACILITIES

	2.1	The Term Facilities

		(a)	Subject to the terms of this Agreement, the Lenders make available to the Company a term loan facility in an aggregate amount equal to the Total Term Facility A-1 Commitments.

		(b)	Subject to the terms of this Agreement, the Lenders make available to the Company a term loan facility in an aggregate amount equal to the Total Term Facility A-2 Commitments.

	2.2	The Revolving Facility

		(a)	Subject to the terms of this Agreement, the Lenders make available to the Borrowers a revolving loan facility in an aggregate amount equal to the Total Revolving Facility Commitment.

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

	2.3	The Uncommitted Facility

		(a)	Subject to the terms of this Agreement and Clause 4.3 (Uncommitted Facility), a Lender may in its sole discretion make available to the Borrowers its participation in the Uncommitted Facility, until further notice (dagelijks opzegbaar).

		(b)	Subject to the terms of this Agreement, Clause 4.3 (Uncommitted Facility) and the Ancillary Documents, an Ancillary Lender may in its sole discretion make all or part of its Uncommitted Facility Participation available to any Borrower as an Ancillary Facility, until further notice (dagelijks opzegbaar).

	2.4	Increase

		(a)	The Company may by giving prior notice to the Agent after the effective date of a cancellation of:

		(i)	the Available Commitments of a Defaulting Lender in accordance with Clause 8.6 (Right of cancellation in relation to a Defaulting Lender); or

		(ii)	the Commitments of a Lender in accordance with:

		(A)	Clause 8.1 (Illegality); or

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		(B)	paragraph (a) of Clause 8.5 (Right of replacement or repayment and cancellation in relation to a single Lender),

request that the Commitments relating to any Facility be increased (and the Commitments relating to that Facility shall be so increased) in an aggregate amount up to the amount of the Available Commitments or Commitments relating to that Facility so cancelled as follows:

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

		(ii)	each of the Obligors and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors and the Increase Lender would have assumed and/or acquired had the Increase Lender been an Original Lender. No Lender (or any successor thereto) shall have any obligations to increase its Commitment in relation to any Facility or incur any other obligations under this Agreement and the other Finance Documents whatsoever, and any decision by a Lender to increase its Commitment in relation to any Facility shall be made in it sole discretion independently from any other Lender;

		(iii)	each Increase Lender shall become a Party as a "Lender" and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender;

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

		(v)	any increase in the Commitments relating to a Facility shall take effect on the date specified by the Company in the notice referred to above or any later date on which the conditions set out in paragraph(b) below are satisfied.

		(b)	An increase in the Commitments relating to a Facility will only be effective on:

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

		(ii)	in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase the Agent being satisfied that it has

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complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender. The Agent shall promptly notify the Company and the Increase Lender upon being so satisfied.

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

		(d)	The Company may pay to the Increase Lender a fee in the amount and at the times agreed between the Company and the Increase Lender in a Fee Letter.

		(e)	Clause 24.4 (Limitation of responsibility of Existing Lenders) shall apply mutatis mutandis in this Clause 2.4 in relation to an Increase Lender as if references in that Clause to:

		(i)	an "Existing Lender" were references to all the Lenders immediately prior to the relevant increase;

		(ii)	the "New Lender" were references to that "Increase Lender"; and

		(iii)	a "re-transfer" and "re-assignment" were references to respectively a "transfer" and "assignment".

	2.5	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 is a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with paragraph (c) below. The rights of each Finance Party include any debt owing to that Finance Party under the Finance Documents and, for the avoidance of doubt, any part of a Loan or any other amount owed by an Obligor which relates to a Finance Party's participation in a Facility or its role under a Finance Document (including any such amount payable to the Agent on its behalf) is a debt owing to that Finance Party by that Obligor.

		(c)	A Finance Party may, except as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance Documents.

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	2.6	Obligor's Agent

		(a)	Each Obligor (other than the Company) by its execution of this Agreement or an Accession Letter irrevocably appoints the Company (acting through one or more authorised signatories) to act on its behalf as its agent in relation to the Finance Documents (in such capacity the "Obligors' Agent") and irrevocably authorises:

		(i)	the Company on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions (including, in the case of a Borrower, Utilisation Requests), to execute on its behalf any Accession Letter, 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 give any notice, demand or other communication to that Obligor pursuant to the Finance Documents to the Company,

and in each case the Obligor shall be bound as though the Obligor itself had given the notices and instructions (including, without limitation, any Utilisation Requests) or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication. For this purpose each Obligor (other than the Company) incorporated in Germany releases the Company to the fullest extent possible from the restrictions of Section 181 of the German Civil Code (Bürgerliches Gesetzbuch).

		(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)	For the purposes of Italian law, the Obligors' Agent shall be considered as "mandatario con rappresentanza" hereby duly appointed by the Obligors in order to act in their name and on their behalf for the purposes and within the limits set out in the Finance Documents.

	3.	PURPOSE

	3.1	Purpose

		(a)	The Company shall apply all amounts borrowed by it under a Term Facility towards financing of the Share Buyback.

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		(b)	Each relevant Borrower shall apply all amounts borrowed by it under the Revolving Facility towards (i) its general corporate purposes (including for any dividend payments and share premium repayments permitted under Clause 22.17 (Dividends) and acquisitions permitted under Clause 22.8 (Acquisitions)) (but not towards the prepayment of any Term Loan, and in the case of any utilisation of any Ancillary Facility provided under the Revolving Facility, not towards prepayment of any Revolving Loan or Uncommitted Facility Loan), (ii) the refinancing in accordance with the Third Amendment and Restatement Agreement and (iii) until the Third Effective Date, refinancing of the Existing Financial Indebtedness (but in the case of any utilisation of any Ancillary Facility provided under the Revolving Facility, not towards prepayment of any Revolving Loan or Uncommitted Facility Loan).

		(c)	Each relevant Borrower shall apply all amounts borrowed by it under the Uncommitted Facility towards working capital purposes (but not towards the prepayment of any Term Loan, and in the case of any utilisation of any Ancillary Facility provided under the Uncommitted Facility, not towards prepayment of any Revolving Loan or Uncommitted Facility Loan).

	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

No Borrower may deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in Schedule 2 (Conditions precedent) 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

Subject to Clause 4.3 (Uncommitted Facility), 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)	in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan and, in the case of any other Loan, no Default is continuing or would result from the proposed Loan;

		(b)	the Repeating Representations to be made by each Obligor are true in all material respects; and

		(c)	in the case of an Uncommitted Facility Loan, the relevant Lender has notified the Company in writing that it is willing to make available its participation in that Uncommitted Facility Loan.

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	4.3	Uncommitted Facility

For the avoidance of doubt, the Uncommitted Facility is an uncommitted daily revocable (dagelijks opzegbaar) facility and will be made available in such amounts and at such times determined at the sole discretion of the relevant Lender.

	4.4	Maximum number of Loans

		(a)	A Borrower may not deliver a Utilisation Request:

		(i)	in respect of the Term Facility A-1 if as a result of the proposed Loan more than 1 Loan would be outstanding under the Term Facility A-1;

		(ii)	in respect of the Term Facility A-2 if as a result of the proposed Loan more than 1 Loan would be outstanding under the Term Facility A-2;

		(iii)	in respect of the Revolving Facility if as a result of the proposed Loan more than 15 Loans would be outstanding under the Revolving Facility; and

		(iv)	subject to Clause 4.3 (Uncommitted Facility) in respect of the Uncommitted Facility if as a result of the proposed Loan more than 15 Loans would be outstanding under the Uncommitted Facility.

		(b)	Any Separate Loan shall not be taken into account in this Clause 4.4.

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SECTION 3

 UTILISATION

	5.	UTILISATION - LOANS

	5.1	Delivery of a Utilisation Request

A Borrower may utilise a Term Facility, the Revolving Facility or, subject to Clause 4.3 (Uncommitted Facility), the Uncommitted Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time.

	5.2	Completion of a Utilisation Request

		(a)	Subject to Clause 4.3 (Uncommitted Facility), each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

		(i)	it identifies the Facility to be utilised;

		(ii)	the proposed Utilisation Date is a Business Day within the Availability Period applicable to that Facility;

		(iii)	the currency and amount of the Loan comply with Clause 5.3 (Currency and amount); and

		(iv)	the proposed Interest Period complies with Clause 10 (Interest Periods).

		(b)	Only one Loan may be requested in each Utilisation Request.

	5.3	Currency and amount

		(a)	The currency specified in a Utilisation Request must be Euro.

		(b)	The amount of the proposed Term Loan must be a minimum of EUR 1,000,000 or if less, the relevant Available Term Facility.

		(c)	The amount of the proposed Revolving Loan must be a minimum of EUR 1,000,000 or if less, the Available Revolving Facility.

		(d)	Subject to Clause 4.3 (Uncommitted Facility), the amount of the proposed Uncommitted Facility Loan must be a minimum amount of EUR 1,000,000 or if less, the Available Uncommitted Facility.

	5.4	Lenders' participation

		(a)	If the conditions set out in this Agreement have been met, and subject to Clause 4.3 (Uncommitted Facility) and Clause 7.1 (Repayment of Revolving Loans and Uncommitted Facility Loans), each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

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		(b)	Subject to Clause 4.3 (Uncommitted Facility) and other than as set out in paragraph (c) below, the amount of each Lender's participation in:

		(i)	each Term Loan A-1 will be equal to the proportion borne by its Available Commitment in relation to Term Facility A-1 to the relevant Available Term Facility immediately prior to making that Term Loan A-1;

		(ii)	each Term Loan A-2 will be equal to the proportion borne by its Available Commitment in relation to Term Facility A-2 to the relevant Available Term Facility immediately prior to making that Term Loan A-2;

		(iii)	each Revolving Loan will be equal to the proportion borne by its Available Commitment under the Revolving Facility to the Available Revolving Facility immediately prior to making the Revolving Loan; and

		(iv)	each Uncommitted Facility Loan will be equal to the proportion borne by its Available Commitment under the Uncommitted Facility to the Available Uncommitted Facility immediately prior to making the Uncommitted Facility Loan. Given the uncommitted character of the Uncommitted Facility, a Lender may refuse to fund any requested Utilisation (a "Refusing Lender"). For the avoidance of doubt, the other Lenders under the Uncommitted Facility shall have no obligation whatsoever to make available (part of) the requested Utilisation that would otherwise have been funded by the Refusing Lender.

		(c)	Subject to Clause 4.3 (Uncommitted Facility), if:

		(i)	a Revolving Loan is made to repay Ancillary Outstandings under Ancillary Facilities provided under the Revolving Facility, each Lender's participation in that Revolving Loan will be in an amount (as determined by the Agent) which will result as nearly as possible in the aggregate amount of its participation in the Revolving Loans then outstanding bearing the same proportion to the aggregate amount of the Revolving Loans then outstanding as its Revolving Facility Commitment bears to the aggregate Revolving Facility Commitments; and

		(ii)	an Uncommitted Facility Loan is made to repay Ancillary Outstandings under Ancillary Facilities provided under the Uncommitted Facility, each Lender's participation in that Uncommitted Facility Loan will be in an amount (as determined by the Agent) which will result as nearly as possible in the aggregate amount of its participation in the Uncommitted Facility Loans then outstanding bearing the same proportion to the aggregate amount of the Uncommitted Facility Loans then outstanding as its Uncommitted Facility Participation bears to the aggregate Uncommitted Facility Participations.

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		(d)	The Company shall ensure that, as far as commercially and practically possible, utilisations under:

		(i)	the Ancillary Facilities provided under the Revolving Facility, shall be made on a pro rata basis among the Lenders under the Revolving Facility and the Ancillary Lenders or its Affiliates making those Ancillary Facilities available; and

		(ii)	the Ancillary Facilities provided under the Uncommitted Facility, shall be made on a pro rata basis among the Lenders under the Uncommitted Facility and the Ancillary Lenders or its Affiliates making those Ancillary Facilities available,

and the Company shall monitor this on a monthly basis and, to the extent commercially and practically possible, make the appropriate adjustments if the utilisations have not been divided on a pro rata basis.

	5.5	Cancellation of Commitments

		(a)	The Term Facility Commitments and the Revolving Facility Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period for that Facility.

		(b)	The Uncommitted Facility is daily revocable and each Lender may cancel its Uncommitted Facility Participation at any time.

	6.	ANCILLARY FACILITIES

This Clause 6 is subject in full to Clause 4.3 (Uncommitted Facility).

	6.1	Type of Facility

An Ancillary Facility may be made available by way of:

		(a)	an overdraft facility;

		(b)	a guarantee, bonding, documentary or stand-by letter of credit facility; or

		(c)	any other facility or accommodation required in connection with the business of the Group and which is agreed by the Company with the Lenders.

	6.2	Availability

		(a)	If the Company and a Lender agree and except as otherwise provided in this Agreement, the Lender may provide on a bilateral basis all or part of its Revolving Facility Commitment and Uncommitted Facility Participation as an Ancillary Facility, it being understood that, no Lender under the Uncommitted Facility will in any way be committed to provide any such Ancillary Facility in place of any part of its Uncommitted Facility Participation. Given the uncommitted character of the Uncommitted Facility, a Refusing Lender may refuse to fund any requested Utilisation even if the conditions set out in paragraph (b) below are complied with by the proposed Borrower(s). For the

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avoidance of doubt, the other Lenders under the Uncommitted Facility shall have no obligation whatsoever to make available (part of) the requested Utilisation that would otherwise have been funded by the Refusing Lender.

		(b)	Subject to paragraph (a) above, an Ancillary Facility shall not be made available unless, not later than five Business Days prior to the Ancillary Commencement Date for an Ancillary Facility, the Agent has received from the Company:

		(i)	a notice in writing requesting the establishment requesting an Ancillary Facility and specifying:

		(A)	the Facility under which the proposed Ancillary Facility is to be provided;

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

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

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

		(E)	the proposed Ancillary Lender; and

		(F)	the proposed Ancillary Participation or Ancillary Commitment (as applicable), in the case of a Multi-account Overdraft, its Designated Gross Amount and its Designated Net Amount; and

		(ii)	a copy of the proposed Ancillary Document; and

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

		(c)	The Agent shall promptly notify the Company, the Ancillary Lender and the other Lenders of the establishment of an Ancillary Facility.

		(d)	Subject to compliance with paragraph (b) above:

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

		(ii)	the Ancillary Facility will be available,

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

	6.3	Terms of Ancillary Facilities

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

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		(b)	Those terms:

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

		(ii)	may allow only Borrowers (or Affiliates of Borrowers nominated pursuant to Clause 6.9 (Affiliates of Borrowers)) to use the Ancillary Facility;

		(iii)	may not allow the Ancillary Outstandings:

		(A)	in the case of any Ancillary Facility provided under the Revolving Facility, to exceed the Ancillary Commitment; and

		(B)	in the case of any Ancillary Facility provided under the Uncommitted Facility, to exceed the Ancillary Participation;

		(iv)	may not allow:

		(A)	in the case of any Ancillary Facility provided under the Revolving Facility, the Ancillary Commitment of a Lender to exceed the Revolving Facility Commitment of that Lender; and

		(B)	in the case of any Ancillary Facility provided under the Uncommitted Facility, the Ancillary Participation of a Lender to exceed the Uncommitted Facility Participation of that Lender;

		(v)	must require that:

		(A)	in the case of any Ancillary Facility provided under the Revolving Facility, the Ancillary Commitment is reduced to zero, and that all Ancillary Outstandings under that Ancillary Facility are repaid (or cash cover provided in respect of all those Ancillary Outstandings) not later than the Termination Date; and

		(B)	in the case of any Ancillary Facility provided under the Uncommitted Facility, the Ancillary Participation is reduced to zero, and that all Ancillary Outstandings under that Ancillary Facility are repaid (or cash cover provided in respect of all those Ancillary Outstandings) not later than the Uncommitted Facility Termination Date;

		(c)	If there is any inconsistency between any term of an Ancillary Facility and any term of this Agreement, this Agreement shall prevail except for (i) Clause 35.3 (Day count convention) which shall not prevail for the purposes of calculating fees, interest or commission relating to an Ancillary Facility and (ii) an Ancillary Facility comprising more than one account where the terms of the Ancillary Documents shall prevail.

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		(d)	Interest, commission and fees on Ancillary Facilities are dealt with in Clause 12.6 (Interest, commission and fees on Ancillary Facilities).

	6.4	Repayment of Ancillary Facility

		(a)	An Ancillary Facility provided under:

		(i)	the Uncommitted Facility shall cease to be available on the Uncommitted Facility Termination Date or such earlier date on which its expiry date occurs or on which it is cancelled in accordance with the terms of this Agreement or the relevant Ancillary Document (for the avoidance of doubt each Ancillary Lender shall be entitled to terminate its Ancillary Facility provided under the Uncommitted Facility on a daily basis (dagelijks opzegbaar)); and

		(ii)	the Revolving Facility shall cease to be available on the Termination Date or such earlier date on which its expiry date occurs or on which it is cancelled in accordance with the terms of this Agreement or the relevant Ancillary Document.

		(b)	If an Ancillary Facility expires in accordance with its terms the Ancillary Participation or Ancillary Commitment (as applicable) of the Ancillary Lender shall be reduced to zero.

		(c)	No Ancillary Lender may demand repayment or prepayment of any Ancillary Outstandings prior to the expiry date of the relevant Ancillary Facility (other than, in respect of the Uncommitted Facility, in accordance with Clause 4.3 (Uncommitted Facility)) unless:

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

		(ii)	in the case of an Ancillary Facility provided under:

		(A)	the Uncommitted Facility, the Uncommitted Facility Participations have been cancelled in full, or all outstanding Loans under the Uncommitted Facility have become due and payable in accordance with the terms of this Agreement; and

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

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

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(iv)

		(A)	in the case of an Ancillary Facility provided under the Revolving Facility, both:

		(1)	the Available Commitments relating to the Revolving Facility; and

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

would not prevent the relevant Borrower funding the repayment of those Ancillary Outstandings in full by way of Revolving Loans; or

		(B)	in the case of an Ancillary Facility provided under the Uncommitted Facility, both:

		(1)	the Available Commitments relating to the Uncommitted Facility; and

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

would not prevent the relevant Borrower funding the repayment of those Ancillary Outstandings in full by way of Uncommitted Facility Loans.

		(d)	If a Revolving Loan or Uncommitted Facility Loan (as applicable) is made to repay Ancillary Outstandings in full, the relevant Ancillary Commitment or Ancillary Participation (as applicable) shall be reduced to zero.

	6.5	Limitation on Ancillary Outstandings

Each Borrower shall procure that:

		(a)	the Ancillary Outstandings under any Ancillary Facility shall not exceed the Ancillary Commitment or Ancillary Participation applicable to that Ancillary Facility; and

		(b)	in relation to a Multi-account Overdraft:

		(i)	the Ancillary Outstandings shall not exceed the Designated Net Amount applicable to that Multi-account Overdraft; and

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

	6.6	Adjustment for Ancillary Facilities upon acceleration

		(a)	In this paragraph (a) of Clause 6.6:

"Revolving Outstandings"means, in relation to a Lender, the aggregate of the equivalent in EUR of (i) its participation in each Revolving Loan then outstanding(together with the aggregate amount of all accrued interest, fees and commission owed to it as a Lender under the Revolving Facility), and (ii)

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

"Total Revolving Outstandings" means the aggregate of all Revolving Outstandings.

		(i)	If a notice is served under Clause 23.21 (Acceleration) (other than a notice declaring the Revolving Loans to be due on demand), each Lender and each Ancillary Lender shall adjust (by making or receiving (as the case may be) corresponding transfers of rights and obligations under the Finance Documents relating to Revolving Outstandings) their claims in respect of amounts outstanding to them under the Revolving Facility and each Ancillary Facility under the Revolving Facility to the extent necessary to ensure that after such transfers the Revolving Outstandings of each Lender bear the same proportion to the Total Revolving Outstandings as such Lender's share in the Revolving Facility Commitments bears to the aggregate of the Revolving Facility Commitments, each as at the date the notice is served under Clause 23.21 (Acceleration).

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

		(b)	Any transfer of rights and obligations relating to Revolving Outstandings made pursuant to this Clause 6.6 shall be made for a purchase price in cash, payable at the time of transfer, in an amount equal to those Revolving Outstandings.

		(c)	Prior to the application of the provisions of paragraph (a)(i) above, an Ancillary Lender that has provided a Multi-account Overdraft shall set-off any Available Credit Balance on any account comprised in that Multi-account Overdraft.

		(d)	All calculations to be made pursuant to this Clause 6.6 shall be made by the Agent based upon information provided to it by the Lenders and Ancillary Lenders.

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	6.7	Information

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

	6.8	Affiliates of Lenders as Ancillary Lenders

		(a)	Subject to the terms of this Agreement, an Affiliate of a Lender may become an Ancillary Lender. In such case, the Lender and its Affiliate shall be treated as a single Lender whose Revolving Facility Commitment or Uncommitted Facility Participation (as applicable) is the amount set out opposite the relevant Lender's name in Part II of Schedule 1 (The Original Parties). For the purposes of calculating the Lender's Revolving Facility Commitment or Uncommitted Facility Participation (as applicable), the Lender's Revolving Facility Commitment or Uncommitted Facility Participation (as applicable) shall be reduced to the extent of the aggregate of the Ancillary Commitments or Ancillary Participations (as applicable) of its Affiliates.

		(b)	The Company shall specify any relevant Affiliate of a Lender in any notice delivered by the Company to the Agent pursuant to paragraph (b)(i) of Clause 6.2 (Availability).

		(c)	An Affiliate of a Lender which becomes an Ancillary Lender shall accede to this Agreement by delivery to the Agent of a duly completed Affiliate Accession Undertaking.

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

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

	6.9	Affiliates of Borrowers

		(a)	Subject to the terms of this Agreement, an Affiliate incorporated in the same jurisdiction as a Borrower may with the approval of the relevant Lender become a borrower with respect to an Ancillary Facility.

		(b)	The Company shall specify any relevant Affiliate of a Borrower in any notice delivered by the Company to the Agent pursuant to paragraph (b)(i) of Clause6.2 (Availability).

		(c)	If a Borrower ceases to be a Borrower under this Agreement in accordance with Clause 25.3 (Resignation of a Borrower), its Affiliate shall cease to have any rights under this Agreement or any Ancillary Document.

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

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

	6.10	Revolving Facility Commitment and Uncommitted Facility Participation amounts

Notwithstanding any other term of this Agreement, each Lender shall ensure that at all times:

		(a)	its Revolving Facility Commitment is not less than:

		(i)	its Ancillary Commitment; or

		(ii)	the Ancillary Commitment of its Affiliate; and

		(b)	its Uncommitted Facility Participation is not less than:

		(i)	its Ancillary Participation; or

		(ii)	the Ancillary Participation of its Affiliate.

	6.11	Amendments and Waivers – Ancillary Facilities

No amendment or waiver of a term of any Ancillary Facility shall require the consent of any Finance Party other than the relevant Ancillary Lender unless such amendment or waiver itself relates to or gives rise to a matter which would require an amendment of or under this Agreement (including, for the avoidance of doubt, under this Clause 6). In such a case, Clause 38 (Amendments and Waivers) will apply.

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SECTION 4

 REPAYMENT, PREPAYMENT AND CANCELLATION

	7.	REPAYMENT

	7.1	Repayment of Term Loans

		(a)	The Company shall repay the aggregate Term Loans A in instalments by repaying on each Term Facility A Repayment Date an amount which reduces the amount of the outstanding aggregate Term Loans A by the amount set out opposite that Term Facility A Repayment Date below:

	
Term Facility A Repayment Date

 

		
Repayment Instalment

	
9 September 2016

 

		
EUR 7,500,000

	
9 December 2016

		
EUR 7,500,000

 

	
9 March 2017

		
EUR 7,500,000

 

	
9 June 2017

		
EUR 7,500,000

	
9 September 2017

		
EUR 7,500,000

 

	
9 December 2017

		
EUR 7,500,000

 

	
9 March 2018

		
EUR 7,500,000

	
9 June 2018

		
EUR 7,500,000

 

	
9 September 2018

		
EUR 3,750,000

 

	
9 December 2018

		
EUR 3,750,000

 

	
9 March 2019

		
EUR 3,750,000

 

	
9 June 2019

		
EUR 3,750,000

 

	
9 September 2019

		
EUR 3,750,000

 

	
9 December 2019

		
EUR 3,750,000

 

	
9 March 2020

		
EUR 3,750,000

 

	
Termination Date

		
The remainder of the amount of the 

Term Loans A outstanding

		(b)	The Company shall repay the aggregate Term Loans B in full on the Termination Date.

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	7.2	Repayment of Revolving Loans and Uncommitted Facility Loans

		(a)	Subject to paragraph (c) below, each Borrower which has drawn a Revolving Loan or an Uncommitted Facility Loan shall repay that Revolving Loan or Uncommitted Facility Loan, as applicable, on the last day of its Interest Period or, if earlier, in respect of the Uncommitted Facility Loan only, the Uncommitted Facility Termination Date.

		(b)	Without prejudice to each Borrower's obligation under paragraph (a) above, if:

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

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

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

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

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

		(D)	if the amount of the maturing Revolving Loan exceeds the aggregate amount of the new Revolving Loans:

		(1)	the relevant Borrower will only be required to make a payment under Clause 31.1 (Payment to the Agent) in an amount in the relevant currency equal to that excess; and

		(2)	each Lender's participation in the new Revolving Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender's participation in the maturing Revolving Loan and that Lender will not be required to make a payment under Clause 31.1 (Payment to the Agent) in respect of its participation in the new Revolving Loans; and

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

		(1)	the relevant Borrower will not be required to make a payment under Clause 31.1 (Payment to the Agent); and

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		(2)	each Lender will be required to make a payment under Clause 31.1 (Payment to the Agent) in respect of its participation in the new Revolving Loans only to the extent that its participation in the new Revolving Loans exceeds that Lender's participation in the maturing Revolving Loan and the remainder of that Lender's participation in the new Revolving Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender's participation in the maturing Revolving Loan.

		(c)	At any time when a Lender becomes a Defaulting Lender, the maturity date of each of the participations of that Lender in the Revolving Loans then outstanding may be extended with the prior approval of the Majority Lenders to the last day of the Availability Period applicable to the Revolving Facility and will be treated as separate Loans (the "Separate Loans").

		(d)	A Borrower to whom a Separate Loan is outstanding may prepay that Loan by giving 5 Business Days' prior notice to the Agent. The Agent will forward a copy of a prepayment notice received in accordance with this paragraph(d) to the Defaulting Lender concerned as soon as practicable on receipt.

		(e)	Interest in respect of a Separate Loan will accrue for successive Interest Periods selected by the Borrower by the time and date specified by the Agent (acting reasonably) and will be payable by that Borrower to the Agent (for the account of that Defaulting Lender) on the last day of each Interest Period of that Loan.

		(f)	The terms of this Agreement relating to Loans generally shall continue to apply to Separate Loans other than to the extent inconsistent with paragraphs(c) to (e) above, in which case those paragraphs shall prevail in respect of any Separate Loan.

	7.3	Reduction of Revolving Facility and Uncommitted Revolving Facility

		(a)	The Total Revolving Facility Commitments (including Ancillary Commitments) shall be automatically reduced and cancelled in an amount equal to the Reduction Instalment Revolving Facility on the Reduction Date, and such reduction shall reduce and cancel the Revolving Facility Commitment of ING Bank N.V. only.

		(b)	Subject to Clause 4.3 (Uncommitted Facility), the Total Uncommitted Facility Participations (including Ancillary Participations) shall be automatically reduced and cancelled in an amount equal to the Reduction Instalment Uncommitted Facility on the Reduction Date, and such reduction shall reduce and cancel the Uncommitted Facility Participation of ING Bank N.V. only.

		(c)	Each Borrower shall ensure that sufficient Revolving Loans and/or Ancillary Outstandings in relation to ING Bank N.V. and/or its Affiliate as Ancillary Lender are repaid on or prior to the Reduction Date to the extent necessary so that the aggregate of the amount of the participation of ING Bank N.V. in the

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outstanding Revolving Loans and the amount of the Ancillary Outstandings in relation to ING Bank N.V. and/or its Affiliate as Ancillary Lender (after that repayment) is equal to or less than the reduced amount of the Revolving Facility Commitments of ING Bank N.V. on the Reduction Date.

		(d)	Subject to Clause 4.3 (Uncommitted Facility), each Borrower shall ensure that sufficient Uncommitted Facility Loans and/or Ancillary Outstandings in relation to ING Bank N.V. and/or its Affiliate as Ancillary Lender are repaid on or prior to the Reduction Date to the extent necessary so that the aggregate of the amount of the participation of ING Bank N.V. in the outstanding Uncommitted Facility Loans and the amount of the Ancillary Outstandings in relation to ING Bank N.V. and/or its Affiliate as Ancillary Lender (after that repayment) is equal to or less than the reduced amount of the Uncommitted Facility Participations of ING Bank N.V. on the Reduction Date.

	7.4	Effect of cancellation and prepayment on scheduled repayments and reductions

		(a)	If the Company cancels the whole or any part of the Available Commitment in accordance with Clause8.5 (Right of replacement or repayment and cancellation in relation to a single Lender) or Clause 8.6 (Right of cancellation in relation to a Defaulting Lender) or if the Available Commitment of any Lender is cancelled under Clause 8.1 (Illegality) (other than, in any relevant case, to the extent that any part of the relevant Available Commitment(s) so cancelled is subsequently increased pursuant to Clause 2.4 (Increase)) then:

		(i)	in the case of the Term Facility A-1 Commitments, the amount of the repayment instalment for each Term Facility A-1 Repayment Date falling after that cancellation will reduce pro rata by the amount cancelled;

		(ii)	in the case of the Revolving Facility Commitments, the amount of the Reduction Instalment Revolving Facility, in the event such cancellation occurs before the Reduction Date, will reduce by the amount cancelled; and

		(iii)	in the case of the Uncommitted Facility Participations, subject to Clause 4.3 (Uncommitted Facility), the amount of the Reduction Instalment Uncommitted Facility, in the event such cancellation occurs before the Reduction Date, will reduce by the amount cancelled.

		(b)	If the Company cancels the whole or any part of the Available Commitment in accordance with Clause 8.3 (Voluntary cancellation) or if the whole or part of any Term Facility Commitment, Revolving Facility Commitment or Uncommitted Facility Participation is cancelled pursuant to Clause 5.5 (Cancellation of Commitment) then:

		(i)	in the case of the Term Facility A-1 Commitments, the amount of the repayment instalment for each Term Facility A-1 Repayment Date falling after that cancellation will reduce in inverse chronological order by the amount cancelled;

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		(ii)	in the case of Revolving Facility Commitments, the amount of the Reduction Instalment Revolving Facility, in the event such cancellation occurs before the Reduction Date, will reduce by the amount cancelled; and

		(iii)	in the case of the Uncommitted Facility Participations, subject to Clause 4.3 (Uncommitted Facility), the amount of the Reduction Instalment Uncommitted Facility, in the event such cancellation occurs before the Reduction Date, will reduce by the amount cancelled.

		(c)	If any Term Loan A-1, Revolving Loan or Uncommitted Facility Loan is repaid or prepaid in accordance with Clause 8.5 (Right of replacement or repayment and cancellation in relation to a single Lender) or Clause 8.1 (Illegality), other than to the extent that any part of the Term Facility A-1 Commitment, Revolving Facility Commitment or Uncommitted Facility, as applicable, is subsequently increased pursuant to Clause 2.4 (Increase) then:

		(i)	the amount of the repayment instalments for the Term Facility A-1 for each Term Facility A-1 Repayment Date falling after that repayment or prepayment will reduce pro rata by the amount of the Term Loan A-1 repaid or prepaid;

		(ii)	in the case of a Revolving Facility Loan, the amount of the Reduction Instalment Revolving Facility, in the event such repayment or prepayment occurs before the Reduction Date, will reduce by the amount of the Revolving Loan repaid or prepaid; and

		(iii)	in the case of an Uncommitted Facility Loan, subject to Clause 4.3 (Uncommitted Facility), the amount of the Reduction Instalment Uncommitted Facility, in the event such repayment or prepayment occurs before the Reduction Date, will reduce by the amount of the Uncommitted Facility Loan repaid or prepaid.

		(d)	If any Term Loan A-1, Revolving Facility Loan or Uncommitted Facility Loan is prepaid in accordance with Clause 8.4 (Voluntary Prepayment of Loans) then:

		(i)	in the case of Term Facility A-1, the amount of the repayment instalment for each Term Facility A-1 Repayment Date falling after that prepayment will reduce in inverse chronological order by the amount of the Facility A Loan prepaid;

		(ii)	in the case of the Revolving Facility, the amount of the Reduction Instalment Revolving Facility, in the event such prepayment occurs before the Reduction Date, will reduce by the amount of the Revolving Loan prepaid; and

		(iii)	in the case of the Uncommitted Facility, subject to Clause 4.3 (Uncommitted Facility), the amount of the Reduction Instalment Uncommitted Facility, in the event such prepayment occurs before the

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Reduction Date, will reduce by the amount of the Uncommitted Facility Loan prepaid.

	8.	PREPAYMENT AND CANCELLATION

	8.1	Illegality

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

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

		(b)	upon the Agent notifying the Company, each Available Commitment of that Lender will be immediately cancelled; and

		(c)	to the extent that the Lender's participation has not been transferred pursuant to Clause 38.5 (Replacement of Lender), each Borrower shall repay that Lender's participation in the Loans made to that Borrower on the last day of the Interest Period for each Loan occurring after the Agent has notified the Company or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law) and that Lender's corresponding Commitment(s) shall be cancelled in the amount of the participations repaid.

	8.2	Exit

		(a)	For the purposes of this Clause 8.2:

"Change of Control" means:

		(i)	any person or group of persons (other than Alliance Data Systems Corporation, any of its wholly-owned Subsidiaries, or any group composed of the foregoing) acting in concert gains (direct or indirect) control of the Company; or

		(ii)	any person (other than Alliance Data Systems Corporation, any of its wholly-owned Subsidiaries, or any group composed of the foregoing):

(A)

		(1)	gains (direct or indirect) the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to cast, or control the casting of, 25% or more of the maximum number of votes that might be cast at a general meeting of the Company; or

		(2)	holds (direct or indirect) 25% or more of the issued share capital of the Company (excluding any part of that issued share capital that carries no right to participate

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beyond a specified amount in a distribution of either profits or capital); and

		(B)	in respect of that person, any Lender is not in compliance with any "know your customer" or other similar check under any applicable law or regulation applicable to it pursuant to or in connection with the transactions contemplated in the Finance Documents.

For the purpose of paragraph (i) of the definition of "Change of Control" above:

		(i)	"control" means:

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

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

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

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

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

		(ii)	"acting in concert" means, a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co-operate, through the acquisition directly or indirectly of shares in the Company by any of them, either directly or indirectly, to obtain or consolidate control of the Company.

"Flotation" means a listing or issue of any part of the share capital or any equity or equity linked securities of the Company or any Holding Company of the Company (other than, for the avoidance of doubt, Alliance Data Systems Corporation) in or on Euronext Amsterdam or any subsidiary, affiliate, market or exchange associated with Euronext N.V. or any other exchange or market in any country.

		(b)	Upon the occurrence of:

		(i)	a Flotation;

		(ii)	a Change of Control; or

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

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

	8.3	Voluntary cancellation

		(a)	The Company may, if it gives the Agent not less than 5 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 1,000,000) of any Available Term Facility.

		(b)	The Company may, if it gives the Agent not less than 5 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 1,000,000) of the Available Revolving Facility, provided that the Uncommitted Facility has been cancelled and/or repaid in full.

		(c)	The Company may, at any time, cancel the whole or any part (being a minimum amount of EUR 1,000,000) of the Uncommitted Facility.

		(d)	Each Lender may cancel its Available Uncommitted Facility at its sole discretion in whole or in part at any time.

		(e)	Any cancellation under this Clause 8.3 (other than under paragraph (d) above) shall reduce the Uncommitted Facility Participations of the Lenders on a pro rata basis.

	8.4	Voluntary Prepayment of Loans

The Borrower to which a Loan has been made may, if it gives the Agent not less than 5 Business Days' (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Loan (but if in part, being an amount that reduces the amount of that Loan by a minimum amount of EUR 1,000,000).

	8.5	Right of replacement or repayment and cancellation in relation to a single Lender

		(a)	If:

		(i)	any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 13.2 (Tax gross-up);

		(ii)	any Lender claims indemnification from the Company under Clause 13.3 (Tax indemnity) or Clause 14.1 (Increased costs); or

		(iii)	any amount payable to any Lender by an Obligor established in France for tax purposes under a Finance Document is not, or will not be (when the relevant corporate income tax is calculated) treated as a deductible charge or expense for French tax purposes for that Obligor by reason

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of that amount being (i) paid or accrued to a Lender incorporated, domiciled, established or acting through a Facility Office situated in a Non-Cooperative Jurisdiction, or (ii) paid to an account opened in the name of or for the benefit of that Lender in a financial institution situated in a Non-Cooperative Jurisdiction,

the Company may, whilst the circumstance giving rise to the requirement for that increase, indemnification or non-deductibility for French tax purposes continues, give the Agent notice of cancellation of the Commitment(s) of that Lender and its intention to procure the repayment of that Lender's participation in the Loans or give the Agent notice of its intention to replace that Lender in accordance with paragraph (d) below.

		(b)	On receipt of a notice of cancellation referred to in paragraph (a) above, the Commitment(s) of that Lender shall immediately be reduced to zero.

		(c)	On the last day of each Interest Period which ends after the Company has given notice of cancellation under paragraph (a) above (or, if earlier, the date specified by the Company in that notice), each Borrower to which a Loan is outstanding shall repay that Lender's participation in that Loan.

		(d)	The Company may, in the circumstances set out in paragraph (a) above, on 5 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 24 (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 24 (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 Loans and all accrued interest, 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; and

		(iii)	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.

	8.6	Right of cancellation in relation to a Defaulting Lender

		(a)	If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent 5

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Business Days' notice of cancellation of each Available Commitment of that Lender.

		(b)	On the notice referred to in paragraph(a) above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be 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.

	8.7	Restrictions

		(a)	Any notice of cancellation or prepayment given by any Party under this Clause8 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)	Unless a contrary indication appears in this Agreement, any part of the Revolving Facility or the Uncommitted Facility which is prepaid or repaid may be reborrowed in accordance with the terms of this Agreement.

		(d)	The Company may not reborrow any part of a Term Facility which is prepaid.

		(e)	The Borrowers shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

		(f)	Subject to Clause 2.4 (Increase), no amount of the Commitments cancelled under this Agreement may be subsequently reinstated.

		(g)	If the Agent receives a notice under this Clause 8.7 it shall promptly forward a copy of that notice to either the Company or the affected Lender, as appropriate.

		(h)	If all or part of any Lender's participation in a Loan under a Facility is repaid or prepaid and is not available for redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of that Lender's Commitment (equal to the amount of the Loan which is repaid or prepaid) in respect of the Facility will be deemed to be cancelled on the date of repayment or prepayment.

		(i)	Any prepayment of a Loan (other than a prepayment pursuant to Clause 8.1 (Illegality) or Clause 8.5 (Right of replacement or repayment and cancellation in relation to a single Lender)) shall be applied pro rata to each Lender's participation in that Loan.

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SECTION 5

 COSTS OF UTILISATION

	9.	INTEREST

	9.1	Calculation of interest

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

		(i)	Margin; and

		(ii)	EURIBOR.

		(b)	Notwithstanding any other provision of this Agreement if at any time the rate of interest (including any other payment which is deemed to be interest under the Japanese Usury Legislation (as defined below)) payable by a Japanese Guarantor exceeds the maximum rate of interest permitted by the Interest Rate Restriction Law (Law No. 100 of 1954, as amended), the Law Concerning Regulation of Acceptance of Contribution, Deposit and Interest, Etc. (Law No. 195 of 1954, as amended) or the Temporary Interest Rate Adjustment Law (Law No. 181 of 1947, as amended) (the "Japanese Usury Legislation"), then the rate of interest (including any other payment which is deemed to be interest under the Japanese Usury Legislation) payable by a Japanese Guarantor shall be capped at the maximum rate permitted under the Japanese Usury Legislation.

		(c)	The Parties mutually acknowledge that the rate of interest applicable to Loans to any Italian Obligor under this Agreement (including the relevant component of any applicable fee and expense) determined as of the date of execution of this Agreement is believed in good faith to be in compliance with Law No. 108 of 7 March 1996 as amended (the "Italian Usury Law"). In any event, the Parties agree and accept that if, pursuant to a change in law or in the official interpretation of Italian Usury Law, the rate of interest applicable to a Loan to any Italian Obligor and/or the default rate of interest (if due at such time to any Italian Obligor) at any time is deemed to exceed the maximum rate permitted by Italian Usury Law, then the relevant interest rate or default rate applicable to such Italian Obligor shall be automatically reduced to the maximum admissible interest rate pursuant to such legislation, for the period during which it is not possible to apply the interest rate as originally agreed in this Agreement.

	9.2	Payment of interest

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

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

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

	9.3	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 which, subject to paragraph (b) below, is two per cent. per annum higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably). Any interest accruing under this Clause 9.3 shall be immediately payable by the Obligor on demand by the Agent.

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

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

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

		(c)	Default interest (if unpaid) arising on an overdue amount will be compounded (to the extent permitted under any applicable law, including article 1283 of the Italian Civil Code and/or article 120 of the Italian Legislative Decree No. 385 of 1 September 1993 (as applicable) as amended, supplemented or implemented from time to time) with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

	9.4	Notification of rates of interest

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

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		(b)	The Agent shall promptly notify the relevant Borrower (or the Company) of each Funding Rate relating to a Loan.

	9.5	Effective Global Rate (Taux Effectif Global)

For the purpose of articles L.313-1, L. 313-2 and R.313-1 et seq. of the French Code de la consommation and article L. 313-4 of the French Code monétaire et financier, the Parties acknowledge that by virtue of certain characteristics of the Facilities (and in particular the variable interest rate applicable to Loans and each Borrower's right to select the duration of the Interest Period of each Loan) the effective global rate (taux effectif global) cannot be calculated at the date of this Agreement. However, each French Borrower acknowledges that it has received from the Agent a letter substantially in the form set out in Schedule 12 (Form of TEG Letter), containing an indicative calculation of the effective global rate (taux effectif global), based on figured examples calculated on assumptions as to the period rate (taux de période) and the period term (durée de période) set out in the letter and on the assumption that the interest rate and all other fees, costs or expenses payable under this Agreement will be maintained at their original level throughout the term of this Agreement. The Parties acknowledge that such letter forms part of this Agreement.

	10.	INTEREST PERIODS

	10.1	Selection of Interest Periods

		(a)	A Borrower (or the Company on behalf of a Borrower) may select an Interest Period for a Loan in the Utilisation Request for that Loan or (if the Loan is a Term Loan and has already been borrowed) in a Selection Notice.

		(b)	Each Selection Notice for a Term Loan is irrevocable and must be delivered to the Agent by the Company not later than the Specified Time.

		(c)	If the Company fails to deliver a Selection Notice to the Agent in accordance with paragraph (b) above, the relevant Interest Period will be three Months.

		(d)	Subject to this Clause 10, a Borrower (or the Company on behalf of a Borrower) may select:

		(i)	for any Term Loan and any Revolving Loan, an Interest Period of three Months or 6 Months; and

		(ii)	for any Uncommitted Facility Loan, an Interest Period of one Month,

or, in each case, any other period agreed between the Company and the Agent (acting on the instructions of all the Lenders in relation to the relevant Loan).

		(e)	An Interest Period for a Loan shall not extend beyond the Termination Date or the Uncommitted Facility Termination Date, as the case may be.

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

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		(g)	Any Revolving Loan and any Uncommitted Facility Loan has one Interest Period only.

	10.2	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).

	11.	CHANGES TO THE CALCULATION OF INTEREST

	11.1	Unavailability of Screen Rate

		(a)	Interpolated Screen Rate: If no Screen Rate is available for EURIBOR for the Interest Period of a Loan, the applicable EURIBOR shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of that Loan.

		(b)	Reference Bank Rate: If no Screen Rate is available for EURIBOR for:

		(i)	the currency of a Loan; or

		(ii)	the Interest Period of a Loan and it is not possible to calculate the Interpolated Screen Rate,

the applicable EURIBOR shall be the Reference Bank Rate as of the Specified Time for the currency of that Loan and for a period equal in length to the Interest Period of that Loan.

		(c)	Cost of funds: If paragraph(b) above applies but no Reference Bank Rate is available for the relevant currency or Interest Period there shall be no EURIBOR for that Loan and Clause11.4 (Cost of funds) shall apply to that Loan for that Interest Period.

	11.2	Calculation of Reference Bank Rate

		(a)	Subject to paragraph(b) below, if EURIBOR is to be determined on the basis of a Reference Bank Rate but a Reference Bank does not supply a quotation by the Specified Time, the Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Reference Banks.

		(b)	If at or about noon on the Quotation Day, none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period.

	11.3	Market disruption

If before close of business in Amsterdam on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that the cost to it of funding its participation in that Loan from whatever source it may reasonably select would be in excess of EURIBOR, then Clause11.4 (Cost of funds) shall apply to that Loan for the relevant Interest Period.

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	11.4	Cost of funds

		(a)	If this Clause11.4 applies, the rate of interest on each Lender's share of the relevant Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

		(i)	the Margin; and

		(ii)	the rate notified to the Agent by that Lender as soon as practicable and in any event within 3 Business Days of the first day of that Interest Period (or, if earlier, on the date falling 3 Business Days before the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate per annum the cost to the relevant Lender of funding its participation in that Loan from whatever source it may reasonably select.

		(b)	If this Clause11.4 applies and the Agent or the Company so requires, the Agent and the Company shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

		(c)	Any alternative basis agreed pursuant to paragraph(b) above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties.

		(d)	If this Clause11.4 applies pursuant to Clause11.3 (Market disruption) and:

		(i)	a Lender's Funding Rate is less than EURIBOR; or

		(ii)	a Lender does not supply a quotation by the time specified in sub-paragraph(ii) of paragraph(a) above,

the cost to that Lender of funding its participation in that Loan for that Interest Period shall be deemed, for the purposes of paragraph(a) above, to be EURIBOR.

	11.5	Notification to Company

If Clause11.4 (Cost of funds) applies the Agent shall, as soon as is practicable, notify the Company.

	11.6	Break Costs

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

		(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.

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	12.	FEES

	12.1	Commitment fee

		(a)	The Company shall pay to the Agent (for the account of each Lender) a fee in euro computed at the rate of 0.40 per cent. per annum on the unused and uncancelled amount of the Revolving Facility for the Availability Period applicable to the Revolving Facility.

		(b)	The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period applicable to the Revolving Facility, on the last day of the Availability Period applicable to the Revolving Facility and, if cancelled in full, on the cancelled amount of the relevant Lender's Commitment at the time the cancellation is effective.

		(c)	No commitment fee is payable to the Agent (for the account of each Lender) on any Available Commitment of that Lender under the Revolving Facility for any day on which that Lender is a Defaulting Lender.

	12.2	Uncommitted Facility Fee

		(a)	Without prejudice to Clause 4.3 (Uncommitted Facility), the Company shall pay to the Agent (for the account of each Lender) a facility fee in euro computed at the rate of 0.30 per cent. per annum on the unused and uncancelled amount of the Uncommitted Facility for the Availability Period applicable to the Uncommitted Facility.

		(b)	The accrued facility fee is payable on the last day of each successive period of three Months which ends during the Availability Period applicable to the Uncommitted Facility, on the last day of the Availability Period applicable to the Uncommitted Facility and, if cancelled in full, on the cancelled amount of the relevant Lender's Ancillary Participation at the time the cancellation is effective.

	12.3	Arrangement fee

The Company shall pay to the Arrangers an arrangement fee in the amount and at the times agreed in a Fee Letter.

	12.4	Agency fee

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

	12.5	Security Agent fee

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

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	12.6	Interest, commission and fees on Ancillary Facilities

The rate and time of payment of interest, commission, fees and any other remuneration in respect of each Ancillary Facility shall be determined by agreement between the relevant Ancillary Lender and the Borrower of that Ancillary Facility based upon normal market rates and terms.

	12.7	Upfront fee

The Company shall pay to the Agent (for the account of the Existing Lenders, the Acceding Lender, and the Lenders (each as defined in Amendment and Restatement Agreement)) the upfront fees in the amount and at the times as set out in clause 11 (Fees, Costs and Expenses) of the Amendment and Restatement Agreement.

	12.8	Third Amendment and Restatement arrangement fee

The Company shall pay to the Arrangers an arrangement fee in respect of the Revolving Facility and the Uncommitted Facility in the amount and at the times agreed in a Fee Letter.

	12.9	Fourth Amendment and Restatement arrangement fee

The Company shall pay to the Arrangers an arrangement fee in respect of each Term Facility in the amount and at the times agreed in a Fee Letter.

	12.10	Extension fee

The Company shall pay to the Agent (for the account of the Lenders under the Revolving Facility and the Uncommitted Revolving Facility) an extension fee in respect of the extension of the Revolving Facility and the Uncommitted Revolving Facility in the amount and at the times as set out in clause 14 (Fees, Costs and Expenses) of the Fourth Amendment and Restatement Agreement.

	12.11	Utilisation fee

		(a)	The Company shall pay to the Agent (for the account of the Lenders under the Revolving Facility) a utilisation fee computed by the Agent at the rate equal to:

		(i)	0.10 per cent per annum on the aggregate amount of outstanding Utilisations under the Revolving Facility (not including Ancillary Outstandings provided under the Revolving Facility, if any) for each day on which the aggregate amount of such outstanding Utilisations is less than 33.33 per cent. of the aggregate Revolving Facility Commitments (not including the Ancillary Commitments);

		(ii)	0.20 per cent per annum on the aggregate amount of outstanding Utilisations under the Revolving Facility (not including Ancillary Outstandings provided under the Revolving Facility, if any) for each day on which the aggregate amount of such outstanding Utilisations is equal to or greater than 33.33 per cent. but less than 66.67 per cent. of

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the aggregate Revolving Facility Commitments (not including the Ancillary Commitments);

		(iii)	0.40 per cent per annum on the aggregate amount of outstanding Utilisations under the Revolving Facility (not Ancillary Outstandings provided under the Revolving Facility, if any) for each day on which the aggregate amount of such outstanding Utilisations is equal to or greater than 66.67 per cent. of the aggregate Revolving Facility Commitments (not including the Ancillary Commitments).

		(b)	Accrued utilisation fee is payable on the last day of each successive period of 3 Months which ends after the Third Effective Date and, if cancelled in full, on the cancelled amount of the relevant Lender's Commitment at the time the cancellation is effective.

		(c)	For the purpose of the amounts utilised under an Ancillary Facility provided under the Revolving Facility, the Borrower(s) of that Ancillary Facility shall pay to the relevant Ancillary Lender a utilization fee in the amount and at the times agreed in the relevant Ancillary Document.

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SECTION 6

 ADDITIONAL PAYMENT OBLIGATIONS

	13.	TAX GROSS UP AND INDEMNITIES

	13.1	Definitions

In this Agreement:

"Borrower's Tax Jurisdiction" means, in relation to an Original Borrower, the jurisdiction in which that Original Borrower is incorporated.

"Exempt Lender" means, in relation to a Borrower, a Lender which is (other than by reason of being a Treaty Lender) able to receive interest from that Borrower without a Tax Deduction.

"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)	an Exempt Lender; or

		(b)	a Treaty Lender.

"Tax Confirmation" means a confirmation from the Security Agent that the Original Lenders or any New Lender (as the case may be) under this Agreement is a Qualifying Lender.

"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 to be made by an Obligor under a Finance Document, other than a FATCA Deduction;

"Tax Payment" means either an increased payment made by an Obligor to a Finance Party under Clause 13.2 (Tax gross-up) or a payment under Clause 13.3 (Tax indemnity);

"Taxes Act" means any binding legislation of The Netherlands on the personal income tax and/or corporate income tax, as the case may be;

"Treaty Lender" means a Lender which:

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

		(b)	does not carry on a business in the Borrower's Tax Jurisdiction through a permanent establishment with which that Lender's participation in the Loan is effectively connected; and

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"Treaty State" means a jurisdiction having a double taxation agreement (a "Treaty") with the Borrower's Tax Jurisdiction which makes provision for a reduction or for full exemption from Tax imposed by that Borrower's Tax Jurisdiction on interest.

Unless a contrary indication appears, in this Clause 13 a reference to"determines" or "determined" means a determination made in the absolute discretion of the person making the determination.

	13.2	Tax gross-up

		(a)	Each Obligor shall make all payments to be made by it under the Finance Documents without any Tax Deduction, unless a Tax Deduction is required by law.

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

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

		(d)	An Obligor shall not be required to make an increased payment to a Finance Party under paragraph(c) above for a Tax Deduction in respect of Tax imposed by the Borrower's Tax Jurisdiction, if and to the extent that on the date on which the payment is effected:

		(i)	the payment could have been made to the relevant Finance Party without a Tax Deduction if the Finance Party had been a Qualifying Lender, but on that date that Finance Party is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Finance Party under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty or any published practice or concession of any relevant taxing authority, provided that the exclusion for changes after the date a Lender became a Lender under this Agreement shall not apply in respect of any Tax Deduction on account of Tax imposed by France on a payment made to a Lender if such Tax Deduction is imposed solely because this payment is made to an account opened in the name of or for the benefit of that Lender in a financial institution situated in a Non-Cooperative Jurisdiction; or

		(ii)	the relevant Finance Party is a Qualifying Lender (except for those Qualifying Lenders that fall under paragraph (a) of the definition of Qualifying Lender) and the Obligor making the payment is able to demonstrate that the payment could have been made to the Finance

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Party without the Tax Deduction, or with a lower Tax Deduction, as the case may be, had that Lender complied with its obligations under paragraph(g) below.

		(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)	As soon as reasonably practical after making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall make reasonable endeavours to deliver to the Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

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

		(h)	The Security Agent gives a Tax Confirmation with respect to (i) each Original Lender under this Agreement and (ii) any New Lender acceding to this Agreement.

	13.3	Tax indemnity

		(a)	The Company shall (within five Business Days of demand by the Agent) pay or procure payment to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of any sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

		(b)	Paragraph(a) 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 profits or income received or receivable (or any sum deemed to be received or receivable) by that Finance Party; or

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

		(A)	is compensated for by an increased payment under Clause13.2 (Tax gross-up); or

		(B)	would have been compensated for by an increased payment under Clause13.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in paragraph(d) of Clause13.2 (Tax gross-up) applied; or

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

		(c)	A Protected Party making, or intending to make a claim under paragraph(a) above shall notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the Company.

		(d)	A Protected Party shall, on receiving a payment from an Obligor under this Clause 13.3, notify the Agent.

	13.4	Tax Credit

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

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

		(b)	that Finance Party has obtained and utilised that Tax Credit,

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

	13.5	Stamp taxes

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

	13.6	VAT

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

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(and such Finance Party must promptly provide an appropriate VAT invoice to that Party).

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

		(i)	(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT. The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

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

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

		(d)	Any reference in this Clause 13 to any Party shall, at any time when such Party is treated as a member of a group (including but not limited to any fiscal unities) for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time.

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

	13.7	FATCA Deduction

		(a)	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect

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of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

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

	14.	INCREASED COSTS

	14.1	Increased costs

		(a)	Subject to Clause 14.3 (Exceptions) the Company shall, within three Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of:

		(i)	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation after the date of this Agreement;

		(ii)	compliance with any law or regulation made after the date of this Agreement; or

		(iii)	for the avoidance of doubt, the implementation or application of, or compliance with, Basel III or CRD IV or any law or regulation that implements or applies Basel III or CRD IV.

		(b)	In this Agreement:

		(i)	"Basel III" means:

		(A)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

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

		(C)	any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III";

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		(ii)	"CRD IV" means:

		(A)	the Council Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 ("CRR"); and

		(B)	Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC; and

		(iii)	"Increased Costs" means:

		(A)	a reduction in the rate of return from a Facility or an Ancillary Facility or on a Finance Party's (or its Affiliate's) overall capital;

		(B)	an additional or increased cost; or

		(C)	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.

	14.2	Increased cost claims

		(a)	A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Company.

		(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.

	14.3	Exceptions

		(a)	Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost is:

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

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

		(iii)	compensated for by Clause 13.3 (Tax indemnity) (or would have been compensated for under Clause 13.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 14.3 (Tax indemnity) applied); or

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

		(b)	In this Clause 14.3, a reference to a "Tax Deduction" has the same meaning given to the term in Clause 13.1 (Definitions).

	15.	OTHER INDEMNITIES

	15.1	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;

		(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 three Business Days of demand, indemnify each Secured Party and the Arrangers 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.

	15.2	Other indemnities

The Company shall (or shall procure that an Obligor will), within three Business Days of demand, indemnify each Secured Party and the Arrangers against any cost, loss or liability incurred by that Secured Party or Arrangers 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 30 (Sharing among the Finance Parties);

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

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

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	15.3	Indemnity to the Agent

The Company shall within 5 Business Days indemnify the Agent against:

		(a)	any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

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

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

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

		(b)	any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent's gross negligence or wilful misconduct) in acting as Agent under the Finance Documents.

	15.4	Indemnity to the Security Agent

		(a)	Each Obligor jointly and severally shall promptly indemnify the Security Agent against any cost, loss or liability incurred by it as a result of:

		(i)	any failure by the Company to comply with its obligations under Clause 17 (Costs and expenses);

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

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

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

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

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

		(b)	The Security Agent may, in priority to any payment to the Secured Parties, indemnify itself out of the Charged Property in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 15.4 and shall

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have a lien on the Transaction Security and the proceeds of the enforcement of the Transaction Security for all moneys payable to it.

	16.	MITIGATION BY THE LENDERS

	16.1	Mitigation

		(a)	Each Finance Party shall, in consultation with the Company, 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 8.1 (Illegality), Clause 13 (Tax gross-up and indemnities), Clause 14 (Increased costs), or in any amount payable under a Finance Document by an Obligor established in France for tax purposes becoming not deductible from that Obligor's taxable income for French tax purposes by reason of that amount being (i) paid or accrued to a Finance Party incorporated, domiciled, established or acting through a Facility Office situated in a Non-Cooperative Jurisdiction or (ii) paid to an account opened in the name of or for the benefit of that Finance Party in a financial institution situated in a Non-Cooperative Jurisdiction, 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.

	16.2	Limitation of liability

		(a)	The Company shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 16.1 (Mitigation).

		(b)	A Finance Party is not obliged to take any steps under Clause 16.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

	17.	COSTS AND EXPENSES

	17.1	Transaction expenses

The Company shall promptly on demand pay the Agent, the Arrangers and the Security Agent the amount of all costs and expenses (including, but not limited to, legal fees) reasonably 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 the Transaction Security; and

		(b)	any other Finance Documents executed after the date of this Agreement.

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	17.2	Amendment costs

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 31.10 (Change of currency), the Company shall, within three Business Days of demand, reimburse each of the Agent and the Security Agent for the amount of all costs and expenses (including, but not limited to, legal fees) reasonably incurred by the Agent and the Security Agent in responding to, evaluating, negotiating or complying with that request or requirement.

	17.3	Security Agent's ongoing costs

In the event of (i) the occurrence of a Default or (ii) the Security Agent considering it necessary or expedient or (iii) the Security Agent being requested by an Obligor or the Majority Lenders to undertake duties which the Security Agent and the Company agree to be of an exceptional nature and/or outside the scope of the normal duties of the Security Agent under the Finance Documents, the Company shall pay to the Security Agent any additional remuneration that may be agreed between them.

	17.4	Enforcement and preservation costs

The Company shall, within three Business Days of demand, pay to each Secured Party and the Arrangers the amount of all costs and expenses (including, but not limited to, legal fees) incurred by that Secured Party and the Arrangers in connection with the enforcement of, or the preservation of any rights under, any Finance Document and the Transaction Security and any proceedings instituted by or against the Security Agent as a consequence of taking or holding the Transaction Security or enforcing these rights.

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SECTION 7

 GUARANTEE

	18.	GUARANTEE AND INDEMNITY

	18.1	Guarantee and indemnity

Each Guarantor irrevocably and unconditionally jointly and severally by way of an independent guarantee (onafhankelijke garantie):

		(a)	guarantees to each Finance Party punctual performance by each Borrower of all that Borrower's obligations under the Finance Documents;

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

		(c)	agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of a Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due. The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 18 if the amount claimed had been recoverable on the basis of a guarantee.

	18.2	Continuing guarantee

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

	18.3	Reinstatement

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 18 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

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	18.4	Waiver of defences

The obligations of each Guarantor under this Clause 18 will not be affected by any act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 18 (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 member of the Group;

		(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;

		(e)	any amendment, novation, supplement, extension (whether of maturity or otherwise) or restatement (in each case however fundamental and of whatsoever nature, and whether or not more onerous) 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.

	18.5	Guarantor Intent

Without prejudice to the generality of Clause 18.4 (Waiver of Defences), each Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental and of whatsoever nature and whether or not more onerous) 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: 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.

	18.6	Immediate recourse

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under

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this Clause 18. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

	18.7	Appropriations

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

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

		(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 18.

	18.8	Deferral of Guarantors' rights

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 18:

		(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 18.1 (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 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 31 (Payment mechanics).

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	18.9	Release of Guarantors' right of contribution

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

		(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.

	18.10	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.

	18.11	Dutch Guarantee Limitations

The guarantee, indemnity and other obligations of any Guarantor incorporated in The Netherlands under this Clause 18 shall be deemed not to be assumed by such Guarantor to the extent that and for as long as the same constitutes unlawful financial assistance within the meaning of Section 2:98c of the Dutch Civil Code and the provisions of this Agreement and the other Finance Documents shall be construed accordingly.

	18.12	Swiss Guarantee Limitations

		(a)	The aggregate liability of any Guarantor incorporated in Switzerland (the "Swiss Guarantor") under this Agreement and any and all other Finance Documents for, or with respect to, obligations of any other Obligor (other than the wholly owned direct or indirect Subsidiaries of the Swiss Guarantor) shall not exceed the amount of the Swiss Guarantor's freely disposable equity in accordance with Swiss law, to the extent such reserves cannot be transferred into unrestricted, distributable reserves. The amount of freely disposable equity shall be determined on the basis of an audited annual or interim balance sheet of the Swiss Guarantor.

		(b)	This limitation shall only apply to the extent it is a requirement under applicable mandatory law. Such limitation shall not free the Swiss Guarantor from its obligations in excess of the freely disposable equity, but merely postpone the performance date thereof until such times when the Swiss Guarantor has again freely disposable equity if and to the extent such freely

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disposable equity is available. The limitation shall not apply to the extent the Swiss Guarantor guarantees any amounts borrowed under any Finance Document which are lent by the Lenders to wholly owned direct or indirect Subsidiaries of the Swiss Guarantor.

		(c)	The Swiss Guarantor shall, and any holding company of the Swiss Guarantor which is a party to a Finance Document shall procure that the Swiss Guarantor will, take and cause to be taken all and any action, including, subject to the limitations set out in paragraph (a) above, (1) the passing of any quotaholders' resolutions to approve any payment or other performance under this Agreement or any other Finance Documents and (2) the obtaining of any confirmations which may be required as a matter of Swiss mandatory law in force at the time the Swiss Guarantor is required to make a payment or perform other obligations under this Agreement or any other Finance Document, in order to allow a prompt payment of amounts owed by the Swiss Guarantor under the Finance Documents as well as the performance by the Swiss Guarantor of other obligations under the Finance Documents with a minimum of limitations.

		(d)	If so required under applicable law (including tax treaties) at the time it is required to make a payment under this Agreement, the Swiss Guarantor:

		(i)	shall use its best efforts to ensure that such payments can be made without deduction of Swiss Withholding Tax, or with deduction of Swiss Withholding Tax at a reduced rate, by discharging the liability to such tax by notification pursuant to applicable law (including tax treaties) rather than payment of the tax;

		(ii)	shall deduct the Swiss Withholding Tax at such rate (being 35% on the date hereof) as in force from time to time if the notification procedure pursuant to sub-paragraph (i) above does not apply; or shall deduct the Swiss Withholding Tax at the reduced rate resulting after discharge of part of such tax by notification if the notification procedure pursuant to sub-paragraph (i) applies for a part of the Swiss Withholding Tax only; and shall pay within the time allowed any such taxes deducted to the Swiss Federal Tax Administration; and

		(iii)	shall promptly notify the Agent that such notification or, as the case may be, deduction has been made, and provide the Lender with evidence that such a notification of the Swiss Federal Tax Administration has been made or, as the case may be, such taxes deducted have been paid to the Swiss Federal Tax Administration.

		(e)	In the case of a deduction of Swiss Withholding Tax, the Swiss Guarantor shall use its best efforts to ensure that any person that is entitled to a full or partial refund of the Swiss Withholding Tax deducted from such payment under this Agreement or any Finance Document, will, as soon as possible after such deduction:

		(i)	request a refund of the Swiss Withholding Tax under applicable law (including tax treaties), and

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		(ii)	pay to the Agent upon receipt any amount so refunded.

		(f)	The Agent shall co-operate with the Swiss Guarantor to secure such refund.

		(g)	To the extent the Swiss Guarantor is required to deduct Swiss Withholding Tax pursuant to this Agreement, and if the maximum amount of freely disposable shareholder equity pursuant to this Agreement is not fully utilized, the Swiss Guarantor will be required to pay an additional amount so that after making any required deduction of Swiss Withholding Tax the aggregate net amount paid to the Lender is equal to the amount which would have been paid if no deduction of Swiss Withholding Tax had been required, provided that the aggregate amount paid (including the additional amount) shall in any event be limited to the maximum amount of freely disposable shareholder equity pursuant to this Agreement. If a refund is made to a Finance Party, such Finance Party shall transfer the refund so received to the Swiss Guarantor, subject to any right of set-off of the Finance Party pursuant to the Finance Documents.

	18.13	Limitations for German Guarantors

		(a)	To the extent that the guarantee created under this Clause 18 (the "Guarantee") is granted by a Guarantor incorporated in Germany as a limited liability company (GmbH) (each a "German Guarantor") and the Guarantee of the German Guarantor guarantees amounts which are owed by direct or indirect shareholders of the German Guarantor or Subsidiaries of such shareholders (with the exception of Subsidiaries which are also Subsidiaries of the German Guarantor), the Guarantee of the German Guarantor shall be subject to certain limitations as set out in paragraph (c) below. In relation to any other amounts guaranteed, the Guarantee of the German Guarantor remains unlimited.

		(b)	The provisions set out in this Clause 18 shall not apply to:

		(i)	any amounts which correspond to funds that have been borrowed under this Agreement and have been on-lent to, or otherwise been passed on to, the relevant German Guarantor or any of its Subsidiaries to the extent that any such amount is still outstanding at the time the demand under the Guarantee is made against such German Guarantor or other financial accommodation made available to, or bank guarantees issued for the benefit of creditors of, such German Guarantor or a Subsidiary of such Guarantor by a Finance Party under the Finance Documents; and

		(ii)	any amounts payable under the Guarantee at any time when a domination and/or profit and loss transfer agreement (in accordance with Section 291 of the German Stock Corporation Act (Aktiengesetz)) (Beherrschungs- und Gewinnabführungsvertrag) is or becomes effective between the relevant German Guarantor and any direct or indirect shareholder of that German Guarantor or Subsidiary of such shareholder as dominating entity (beherrschendes Unternehmen) other than where despite the existence of such domination and/or profit and

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loss transfer agreement there would be a violation of Sections 30 or 31 of the German Limited Liability Company Act (GmbHG).

		(c)	To the extent that the demand under the Guarantee against a German Guarantor is made in respect of amounts in relation to which the conditions pursuant to paragraph (a) above are fulfilled and to which paragraph (b) does not apply, the relevant German Guarantor's liability shall be limited as follows:

		(i)	subject to paragraphs (iii) and (iv) below, each Finance Party shall not be entitled to enforce the Guarantee to the extent that the German Guarantor is able to demonstrate that such enforcement has the effect of:

		(A)	reducing the German Guarantor's net assets (Nettovermögen) (the "Net Assets") to an amount less than its stated share capital (Stammkapital); or

		(B)	(if its Net Assets are already lower than its stated share capital) causing such amount to be further reduced,

and thereby contravenes the obligatory preservation of its stated share capital according to Sections 30 or 31 of the German Limited Liabilities Company Act ("GmbHG");

		(ii)	the value of the Net Assets shall be determined in accordance with the provisions of the German Commercial Code (Handelsgesetzbuch) consistently applied by the German Guarantor in preparing its unconsolidated balance sheets (Jahresabschluss according to Section 42 GmbH-Act, Sections 242, 264 German Commercial Code (Handelsgesetzbuch)) in the previous years (subject to any permitted change in the Accounting Principles), save that:

		(A)	the amount of any increase of the stated share capital (Stammkapital) of the German Guarantor registered after the original date of this Agreement without the prior written consent of the Agent (acting on the instructions of the Majority Lenders) shall be deducted from the relevant stated share capital;

		(B)	loans provided to the relevant German Guarantor by any member of the Group shall be disregarded as far as such loans are subordinated by law or by contract at least to the claims of the unsubordinated creditors of such German Guarantor; and

		(C)	loans and other liabilities incurred in violation of the provisions of this Agreement shall be disregarded;

		(iii)	the limitations set out in sub-paragraph (i) above shall only apply if and to the extent that the managing director(s) (Geschäftsführer) on behalf of the respective German Guarantor have confirmed in writing

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to the Agent within 10 Business Days following the Agent's demand under the Guarantee to what extent the demanded payment fulfils the conditions pursuant to paragraph (a) above and would cause its Net Assets to fall below its stated share capital (Stammkapital) or, if the Net Assets are already less than the stated share capital (Stammkapital), would cause such amount to be further reduced (the "Management Determination");

		(iv)	if the Agent (acting on behalf of the Finance Parties) disagrees with the Management Determination, the Agent shall nevertheless be entitled to enforce the Guarantee up to such amount which is undisputed between itself and the relevant German Guarantor in accordance with the provisions of paragraph (iii) above. In relation to the amount which is disputed, the Agent and such German Guarantor shall instruct a firm of auditors of international standing and reputation to determine within 30 calendar days from the date the Agent has contested the Management Determination of the value of available Net Assets (the "Auditor's Determination"). If the Agent and the German Guarantor do not agree on the appointment of a joint auditor within 10 Business Days from the date the Agent (acting on behalf of the Finance Parties) has disputed the Management Determination, the Agent shall be entitled to appoint an auditor of international standing and reputation in its reasonable discretion. The amount determined as available in the Auditor's Determination shall be (except for manifest error) binding for all Parties. The costs of the Auditor's Determination shall be borne by the Company;

		(v)	if, and to the extent that, the Guarantee has been enforced without regard to the limitation set forth in paragraph (i) above because (A) the Management Determination was not delivered within the relevant time frame or (B) the amount of the available Net Assets calculated pursuant to the Auditor's Determination is lower than the amount stated in the Management Determination, the Finance Parties shall upon written demand of the relevant German Guarantor to the Agent (on behalf of the Finance Parties) repay without undue delay any amount (if and to the extent already paid to the Finance Parties) in the case of (A) above, which is necessary to maintain such German Guarantor's stated share capital (Stammkapital), and in the case of (B) above up to and including the amount calculated in the Auditor's Determination calculated as of the date the demand under the Guarantee was made and in accordance with paragraphs (i) and (ii) above, provided such demand for repayment is made to the Agent within 3 months (Ausschlussfrist) from the date the Guarantee was enforced;

		(vi)	if pursuant to the Auditor's Determination the amount of the available Net Assets is higher than that set out in the Management Determination, the relevant German Guarantor shall pay such amount to the Finance Parties within 10 Business Days upon request of the Agent (on behalf of the Finance Parties);

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		(vii)	if the German Guarantor intends to demonstrate that the enforcement of the Guarantee has led to one of the effects referred to in paragraph (i) above, then the German Guarantor shall realise at arm's length terms to the extent necessary to satisfy the amounts demanded under this Guarantee any and all of its assets that are shown in its balance sheet with a book value (Buchwert) which is significantly lower than their market value and to the extent that such assets are not necessary for the relevant German Guarantor's business (nicht betriebsnotwendig); and

		(viii)	the limitation set out in sub-paragraph (i) above does not affect the right of the Finance Parties to claim any outstanding amount again at a later point in time if and to the extent that sub-paragraph (i) above would allow this at that later point.

This Clause 18.13 shall apply mutatis mutandis if the Guarantee is granted by a German Guarantor incorporated as a limited liability partnership (GmbH & Co. KG) in relation to the limited liability company as general partner (Komplementär) of such German Guarantor.

	18.14	Limitations for Italian Guarantors

		(a)	In this Clause 18.14 (Limitation for Italian Guarantors):

"Acquisition Facility" means each of the Term Facilities and the Facilities the purpose or the actual use of which is to finance, directly or indirectly, the acquisition of the Italian Guarantor and/or the subscription of any shares in the Italian Guarantor (or any of its direct or indirect shareholder(s)) and/or the payment of any fees, costs and expenses, stamp, registration or other Taxes in connection therewith.

"Guarantee Date" means, in relation to any Italian Guarantor, the date it has entered into or it has acceded to, as the case may be, this Agreement as a Guarantor.

"Italian Guarantor" means a Guarantor incorporated in Italy.

		(b)	In order to comply with the provisions of Italian law in relation to financial assistance (namely, article 2358 and/or article 2474, as the case may be, of the Italian Civil Code), no Italian Guarantor shall be liable as a Guarantor under this Agreement in relation to the obligations of any Obligor in its capacity as Borrower or as Guarantor in respect of any Acquisition Facility.

		(c)	The obligations of each Italian Guarantor under this Clause 18 (Guarantee and Indemnity) in respect of (A) the obligations of any Obligor which is not a subsidiary (pursuant to article 2359 of the Italian Civil Code) of such Italian Guarantor and (B) the obligations of any Guarantor which is a subsidiary (pursuant to article 2359 of the Italian Civil Code) of such Italian Guarantor shall, in either case, not exceed an amount equal to the aggregate of:

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		(i)	the aggregate amount of the Facilities made available to such Italian Guarantor (or any of its direct or indirect subsidiaries pursuant to article 2359 of the Italian Civil Code) as Borrower under this Agreement; and

		(ii)	the aggregate maximum amount of any intercompany loans (or other financial support in any form) advanced or made available to such Italian Guarantor (or any of its direct or indirect subsidiaries pursuant to article 2359 of the Italian Civil Code) by any Obligor as resulting from time to time from the latest financial statements (bilancio di esercizio) duly approved by the shareholders meeting of such Italian Guarantor and/or any of its direct or indirect subsidiaries, as the case may be.

In any event, pursuant to article 1938 of the Italian Civil Code, the maximum amount that any Italian Guarantor may be required to pay in respect of its obligations as Guarantor under this Agreement shall not exceed an amount equal to 150% of the aggregate of the Commitments (or its equivalent in any other currency) from time to time made available under this Agreement.

	18.15	Limitations on French Guarantors

		(a)	The obligations and liabilities of any French Guarantor under the Finance Documents and in particular under this Clause 18 (Guarantee and Indemnity) shall not include any obligation or liability which, if incurred, would constitute the provision of financial assistance within the meaning of article L.225-216 of the French Code de Commerce and/or would constitute a misuse of corporate assets within the meaning of article L.241-3 and L.242-6 (and by reference to this article, articles L.243-1 and L.244-1) of the French Code de Commerce or any other law or regulation having the same effect, as interpreted by French courts and/or would infringe article L. 511-7 of the French Code monétaire et financier.

		(b)	The obligations and liabilities of each French Guarantor under this Clause 18 (Guarantee and Indemnity) for the obligations under the Finance Documents of any other Obligor which is not a Subsidiary of such French Guarantor shall be limited, at any time to an amount equal to the aggregate of all amounts directly or indirectly borrowed under this Agreement by such other Obligor to the extent directly or indirectly on-lent to such French Guarantor under intercompany loan agreements and outstanding at the date a payment is to be made by such French Guarantor under this Clause 18 (Guarantee and Indemnity); it being specified that any payment made by a French Guarantor under this Clause 18 (Guarantee and Indemnity) in respect of the obligations of such Obligor shall reduce pro tanto the outstanding amount of the intercompany loans due by such French Guarantor under the intercompany loan agreements referred to above and that any repayment of the intercompany loans by the French Guarantor shall reduce pro tanto the amount payable under this Clause 18 (Guarantee and Indemnity).

		(c)	The obligations and liabilities of each French Guarantor under this Clause 18 (Guarantee and Indemnity) for the obligations under the Finance Documents

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of any other Obligor which is its Subsidiary shall not be limited and shall therefore cover all amounts due by such Obligor as Borrower and/or as Guarantor. However, where such Subsidiary is itself a Guarantor which guarantees the obligations of a member of the Group which is not a Subsidiary of the relevant French Guarantor, the amounts payable by such French Guarantor under this paragraph (c) in respect of the obligations of this Subsidiary as Guarantor, shall be limited as set out in paragraph (b) above.

		(d)	It is acknowledged that no French Guarantor is acting jointly and severally with the other Guarantors and no French Guarantor shall therefore be considered as "co-débiteur solidaire" as to its obligations pursuant to the guarantee given pursuant to this Clause 18 (Guarantee and Indemnity).

		(e)	For the purpose of paragraphs (b) and (c) above, "Subsidiary" means, in relation to any company, another company which is controlled by it within the meaning of article L.233-3 of the French Code de commerce.

	18.16	Waivers and exclusions

		(a)	Each Guarantor hereby irrevocably and unconditionally waives (doet afstand van) any rights it has under or pursuant to any Dutch law provisions for the protection of grantors of security for the debts of third parties, including, to the extent relevant, any rights it may have pursuant to articles3:233, 3:234, 6:139 and, to the extent relevant in view of paragraph (b) up to and including (h) below, 6:154 of the Dutch Civil Code.

		(b)	None of the Guarantors shall have a right of recourse (regres) nor shall it subrogate (subrogeren) in any rights in respect of the guarantee granted by it pursuant to this Clause 18 and/or any of the Transaction Security granted by it.

		(c)	To the extent the provisions of paragraph (b) are not effective under Dutch law, each Guarantor hereby irrevocably and unconditionally waives (doet afstand van), to the extent necessary in advance (bij voorbaat), any and all rights of recourse (regres) to which it is or may become entitled and any and all rights in which it is or may be subrogated (gesubrogeerd), in each case as a result of any enforcement of the guarantee provided by it pursuant to this Clause 18 and/or the Transaction Security granted by it, which waivers are accepted by each other Obligor by its execution of the Third Amendment and Restatement Agreement and/or its execution of the Fourth Amendment and Restatement Agreement, as the case may be, or an Accession Letter (as applicable).

		(d)	The waivers set out in this Clause constitute irrevocable third party stipulations for nil consideration (derdenbeding om niet) within the meaning of article 6:253 paragraph 4 of the Dutch Civil Code for the benefit of the Obligors.

		(e)	To the extent the waivers set out in paragraph (c) are not enforceable in whole or in part in respect of a Guarantor, such Guarantor hereby agrees with each other Obligor, that it will have a contractual right of recourse (regres) against each such Obligor in case of any enforcement of the guarantee provided by it

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pursuant to this Clause 18 and/or the Transaction Security granted by it in each case up to the same amount such Guarantor may have against such other Obligor pursuant to any statutory right of recourse in case of such enforcement of the guarantee provided by it pursuant to this Clause 18 and/or the Transaction Security granted by it and in respect of which the waivers set out in paragraph (c) are not enforceable in whole or in part.

		(f)	To the extent the waivers set out in paragraph (c) are not enforceable in whole or in part in respect of a Guarantor, any and all statutory and contractual rights of recourse (regres) to which such Guarantor is or may become entitled, including but not limited to the contractual rights of recourse (regres) pursuant to paragraph (e), and any and all rights in which such Guarantor is or may be subrogated (gesubrogeerd), in each case as a result of any enforcement of the the guarantee provided by it pursuant to this Clause 18 and/or the Transaction Security granted by it, are hereby pledged to the Security Agent by way of a disclosed pledge, which rights of pledge are hereby accepted by the Security Agent.

		(g)	By its execution of the Third Amendment and Restatement Agreement and/or its execution of the Fourth Amendment and Restatement Agreement, as the case may be, or an Accession Letter (as applicable), each Obligor confirms that is has been notified of the rights of pledge created pursuant to paragraph (f). In addition to the preceding sentence and to the extent necessary, each Guarantor shall forthwith upon first request of the Security Agent notify each other Obligor of the rights of pledge created hereby by sending a notification (mededeling) to such Obligor in a form satisfactory to the Security Agent. The Security Agent shall be entitled to notify the Obligors at any time of the right of pledge created pursuant to paragraph (f).

		(h)	To the extent the waivers set out in paragraph (c) are not enforceable in whole or in part and the rights of pledge referred to in paragraph (f) cannot be validly created, any and all rights of recourse (regres) to which any Guarantor is or may become entitled and any and all rights in which any Guarantor is or may be subrogated (gesubrogeerd), in each case as a result of any enforcement of the guarantee provided by it pursuant to this Clause 18 and/or the Transaction Security granted by it are hereby subordinated (achtergesteld) to all claims of the Secured Parties under and pursuant to the Finance Documents, both in and outside bankruptcy (faillissement).

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SECTION 8

 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	19.	REPRESENTATIONS

Each Obligor makes the representations and warranties set out in this Clause 19 to each Finance Party on the date of this Agreement.

	19.1	Status

		(a)	It is a corporation, a limited liability company or a partnership with limited liability, duly incorporated or, in the case of a partnership, 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.

	19.2	Binding obligations

The obligations expressed to be assumed by it in each Finance Document are, subject to any general principles of law limiting its obligations, which are specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation) or Clause 25 (Changes to the Obligors), legal, valid, binding and enforceable obligations.

	19.3	Non-conflict with other obligations

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

		(a)	any law or regulation applicable to it;

		(b)	it or any of its Subsidiaries' constitutional documents; or

		(c)	any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries' assets.

	19.4	Power and authority

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

	19.5	Validity and admissibility in evidence

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

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

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

	19.6	Governing law and enforcement

Subject to any matters which are set out as qualifications or reservations as to matters of law of general application in any legal opinion delivered pursuant to Clause 4.1 (Initial conditions precedent) or Clause 25 (Changes to the Obligors):

		(a)	the choice of governing law of each of the Finance Documents will be recognised and enforced in its Relevant Jurisdiction; and

		(b)	any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in its Relevant Jurisdiction.

	19.7	Insolvency

No:

		(a)	corporate action, legal proceeding or other procedure or step described in paragraph (a) of Clause 23.7 (Insolvency proceedings); or

		(b)	creditors' process described in Clause 23.9 (Creditors' process),

has been taken or, to the knowledge of the Company, threatened in relation to it or any other member of the Group and none of the circumstances described in Clause 23.6 (Insolvency) applies to it or any other member of the Group. None of the circumstances set out in either (i) Articles 2446 and 2447, or (ii) Articles 2482-bis and 2482-ter of the Italian Civil Code have arisen in respect to any Italian Obligor.

	19.8	No filing or stamp taxes

Under the law of each Relevant Jurisdiction it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents.

	19.9	Deduction of Tax

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

	19.10	No default

		(a)	No Event of 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 under any other agreement or instrument which is binding on it or any of its

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Subsidiaries or to which its (or any of its Subsidiaries') assets are subject which might have a Material Adverse Effect.

	19.11	No misleading information

		(a)	The Base Case Model has been prepared in accordance with the Accounting Principles as applied to the Original Financial Statements, and the financial projections contained in the Base Case Model have been prepared on the basis of recent historical information, are fair and based on reasonable assumptions that, in the opinion of the Company were reasonable at the time they were made.

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

	19.12	Financial statements

		(a)	Its Original Financial Statements were prepared in accordance with the Accounting Principles consistently applied.

		(b)	Its Original Financial Statements fairly represent its financial condition and operations (consolidated in the case of the Company) during the relevant Financial Year.

		(c)	There has been no material adverse change in its business or financial condition (or the business or consolidated financial condition of the Group, in the case of the Company) since the date on which its Original Financial Statements are stated to have been prepared.

	19.13	No proceedings pending or threatened

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

	19.14	No breach of laws

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

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

	19.15	Environmental compliance

Each member of the Group has performed and observed in all material respects all Environmental Law, Environmental Permits and all other material covenants,

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conditions, restrictions or agreements directly or indirectly concerned with any contamination, pollution or waste or the release or discharge of any toxic or hazardous substance in connection with any real property which is or was at any time owned, leased or occupied by any member of the Group or on which any member of the Group has conducted any activity where failure to do so might reasonably be expected to have a Material Adverse Effect.

	19.16	Environmental Claims

No Environmental Claim has been commenced or (to the best of its knowledge and belief) is threatened against any member of the Group where that claim would be reasonably likely, if determined against that member of the Group, to have a Material Adverse Effect.

	19.17	Taxation

		(a)	It and each of its Subsidiaries has duly and punctually paid and discharged all Taxes imposed upon it or its assets within the time period allowed without incurring material penalties (except to the extent that (i) payment is being contested in good faith, (ii) it has maintained adequate reserves for those Taxes and (iii) payment can be lawfully withheld).

		(b)	It is not materially overdue in the filing of any Tax returns.

		(c)	No material claims are being or are reasonably likely to be asserted against it with respect to Taxes.

	19.18	Sanctions

Neither it nor any of its Subsidiaries nor any of their respective directors or officers or to the best of its knowledge and belief (after taking reasonable measures to ensure compliance with Sanctions) employees or any other persons acting on behalf of any of the foregoing:

		(a)	is a Restricted Person or acts directly or indirectly on behalf of a Restricted Person to the extent that being a Restricted Person or acting directly or indirectly on behalf of a Restricted Person would lead to non-compliance by any Party or any member of the Group with any Sanctions; or

		(b)	is subject to any claim, action, proceeding, (to the best of its knowledge and belief (having made all due and reasonably enquiries)) investigation, notice or demand with respect to Sanctions.

This Clause 19.18 (Sanctions) shall apply to any Obligor only to the extent that giving or complying with such representations does not result in (i) any violation of, conflict with or liability under EU Regulation (EC)2271/96 or (ii) a violation or conflict with section 7 foreign trade rules (AWV) (Außenwirtschaftsverordnung) (in connection with section 4 para 1 no 3 foreign trade law (AWG) (Außenwirtschaftsgesetz)) or a similar anti-boycott statute.

In relation to each Lender that notifies the Agent to this effect (for the purposes of this Clause 19.18 (Sanctions) each a "Restricted Lender"), this 19.18 (Sanctions) shall

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only apply for the benefit of that Restricted Lender to the extent that the sanctions provisions would not result in (i) any violation of, conflict with or liability under EU Regulation (EC) 2271/96 or (ii) a violation or conflict with section 7 foreign trade rules (AWV) (Außenwirtschaftsverordnung) (in connection with section 4 para 1 no 3 foreign trade law (AWG) (Außenwirtschaftsgesetz)) or a similar anti-boycott statute. In connection with any amendment, waiver, determination or direction relating to any part of this Clause 19.18 (Sanctions) of which a Restricted Lender does not have the benefit, the Commitments of that Restricted Lender will be excluded for the purpose of determining whether the consent of the Majority Lenders has been obtained or whether the determination or direction by the Majority Lenders has been made.

	19.19	Security and Financial Indebtedness

		(a)	No Security exists over all or any of the present or future assets of any member of the Group other than any Security permitted under Clause 22.13 (Negative Pledge).

		(b)	No member of the Group has any Financial Indebtedness outstanding other than as permitted under Clause 22.18 (Indebtedness).

	19.20	Ranking

The Transaction Security has or will have the ranking in priority which it is expressed to have in the Transaction Security Documents and it is not subject to any prior ranking or pari passu ranking Security.

	19.21	Good title to assets

It and each Material Company has good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business as presently conducted.

	19.22	Legal and beneficial owner

It is the absolute legal owner and beneficial owner of the assets subject to the Transaction Security.

	19.23	Shares

The shares which are subject to the Transaction Security are fully paid and not subject to any option to purchase or similar rights. The constitutional documents of companies whose shares are subject to the Transaction Security do not and could not restrict or inhibit any transfer of those shares on creation or on enforcement of the Transaction Security.

	19.24	Intellectual Property

It and each of its Subsidiaries:

		(a)	is the sole legal and beneficial owner of or has licensed to it all the Intellectual Property which is material in the context of its business and which is required

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by it in order to carry on its business as it is being conducted and contemplated in the Base Case Model;

		(b)	does not, in carrying on its businesses, infringe any Intellectual Property of any third party in any respect which has or is reasonably likely to have a Material Adverse Effect; and

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

	19.25	Group Structure

The Group Structure Chart delivered to the Agent pursuant to Schedule 2 (Conditions Precedent) is true, complete and accurate.

	19.26	Obligors

		(a)	Each Subsidiary of the Company incorporated in The Netherlands, Germany, France, Italy, Japan and Switzerland is or will be an Obligor on the date of this Agreement.

		(b)	The aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA (as defined in Clause21 (Financial Covenant)), the aggregate Current Assets and turnover of the Guarantors on the date of this Agreement (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) is not less than 80% of EBITDA, as defined in Clause21 (Financial Covenant) and 70% of the consolidated Current Assets of the Group.

	19.27	Accounting reference date

The accounting reference date of each member of the Group is 31 December.

	19.28	Centre of main interests and establishments

It has its' "centre of main interests" (as that term is used in Article 3(1) of The Council of the European Union Regulation No. 1346/2000 on Insolvency Proceedings (the "Regulation") in the jurisdiction of its incorporation.

	19.29	No adverse consequences

		(a)	It is not necessary under the laws of its Relevant Jurisdictions:

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

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

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

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

	19.30	Holding and Dormant Companies

		(a)	Except:

		(i)	as may arise under the Finance Documents; or

		(ii)	as permitted under paragraph (b)(ix) of Clause 22.16 (Loans and Guarantees),

the Company has not traded or incurred any liabilities or commitments (actual or contingent, present or future) other than in the case of it acting as a Holding Company of the Group.

		(b)	Each of Brand Loyalty PH Inc., Brand Loyalty Korea Co. Ltd. and Brand Loyalty Australia Pty Ltd. is a Dormant Subsidiary.

	19.31	Direzione e Coordinamento

No Italian Obligor is subject to the "attività di direzione e cordinamento", pursuant to Article 2497 et seq. of the Italian Civil Code, of any third party, other than Brand Loyalty Italia S.p.A. (the "Controlled Italian Obligor"), which is/are subject to "direzione e coordinamento" of Brand Loyalty Europe B.V.

	19.32	Repetition

The Repeating Representations are deemed to be made by each Obligor (by reference to the facts and circumstances then existing) on:

		(a)	the date of each Utilisation Request and the first day of each Interest Period; and

		(b)	in the case of an Additional Obligor, the day on which it becomes (or it is proposed that it becomes) an Additional Obligor.

	20.	INFORMATION UNDERTAKINGS

The undertakings in this Clause 20 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.

	20.1	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 150 days after the end of each of its Financial Years its audited consolidated financial statements for that Financial Year; and

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		(b)	as soon as the same become available, but in any event within 45 days after the end of each Financial Quarter of each of its Financial Years;

		(i)	its consolidated financial statements for that period; and

		(ii)	the financial statements (consolidated if appropriate) of each Obligor for that period.

	20.2	Compliance Certificate

		(a)	The Company shall supply to the Agent, with each set of financial statements delivered pursuant to paragraph (a) or (b)(i) of Clause 20.1 (Financial statements), a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause21 (Financial Covenant) and Clause 22.29 (Guarantors) as at the date at which those financial statements were drawn up.

		(b)	Each Compliance Certificate shall be signed by one or more directors of the Company and, if required to be delivered with the financial statements delivered pursuant to paragraph (a) of Clause 20.1 (Financial statements), shall be reported on by the Company's auditors in the form agreed by the Company and the Lenders before the Third Effective Date.

	20.3	Requirements as to financial statements

		(a)	The Company shall procure that each set of financial statements delivered pursuant to Clause 20.1 (Financial statements) includes a balance sheet, profit and loss account, cashflow statement and a consolidation sheet (consolidatiestaat) of the Group, in each case, in a form agreed between the Agent (acting on the instructions of the Lenders) and the Company.

		(b)	The Company shall procure that each set of the financial statements delivered pursuant to paragraph (a) of Clause 20.1 (Financial statements) shall be audited by the Company's auditors and accompanied by an unqualified opinion by such auditors.

		(c)	Each set of financial statements delivered by the Company pursuant to Clause 20.1 (Financial statements) shall be:

		(i)	certified by a director of the Company as fairly representing its financial condition as at the date at which those financial statements were drawn up; and

		(ii)	accompanied by a statement by a director of the Company comparing actual performance for the period to which the financial statements relate to:

		(A)	the projected performance for that period set out in the Budget; and

		(B)	the actual performance for the corresponding period in the preceding Financial Year of the Group.

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		(d)	The Company shall procure that each set of financial statements delivered pursuant to Clause 20.1 (Financial statements) is prepared using the Accounting Principles.

(e)

		(i)	The Company shall procure that each set of financial statements of an Obligor delivered pursuant to Clause 20.1 (Financial statements) is prepared using the Accounting Principles and accounting practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements for that Obligor unless, in relation to any set of financial statements, it notifies the Agent that there has been a change in the Accounting Principles or the accounting practices or reference periods, and its auditors (or, if appropriate, the auditors of the Obligor) deliver to the Agent:

		(A)	a description of any change necessary for those financial statements to reflect the Accounting Principles, accounting practices and reference periods upon which that Obligor's Original Financial Statements were prepared; and

		(B)	sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause21 (Financial Covenant) has been complied with and make an accurate comparison between the financial position indicated in those financial statements and that Obligor's Original Financial Statements.

		(ii)	If the Company notifies the Agent of a change in accordance with paragraph (i) above then the Company and Agent shall enter into negotiations in good faith with a view to agreeing:

		(A)	whether or not the change might result in any material alteration in the commercial effect of any of the terms of this Agreement; and

		(B)	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,

and if any amendments are agreed they shall take effect and be binding on each of the Parties in accordance with their terms.

Any reference in this Agreement to "those financial statements" shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial Statements were prepared.

	20.4	Budget

		(a)	The Company shall supply to the Agent in sufficient copies for all the Lenders, as soon as the same become available but in any event not later than 15 days before the start of each of its Financial Years, an annual consolidated

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Budget for that Financial Year and for the first time for the Financial Year 2012.

		(b)	The Company shall ensure that each Budget:

		(i)	is in a form reasonably acceptable to the Agent and includes a projected consolidated profit and loss and cashflow statement for the Group and projected financial covenant calculations; and

		(ii)	is prepared in accordance with the Accounting Principles and the accounting practices and financial reference periods applied to financial statements under Clause 20.1 (Financial statements); and

		(iii)	has been approved by the board of directors of the Company.

		(c)	If the Company updates or changes the Budget, it shall within not more than 20 days of the update or change being made deliver to the Agent, in sufficient copies for each of the Lenders, such updated or changed Budget together with a written explanation of the main changes in that Budget.

	20.5	Group companies

The Company shall, at the request of the Agent, supply to the Agent a report issued by its auditors stating and confirming that, as at the end of the then most recently ended Financial Year, the aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, as defined in Clause21 (Financial Covenant)), aggregate Current Assets of the Guarantors (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) is not less than 80% of EBITDA (as defined in Clause21 (Financial Covenant)) and 70% of the consolidated Current Assets of the Group.

	20.6	Presentations

At least two times in every Financial Year (or more frequently if requested to do so by the Agent if a Default has occurred or is likely to occur), at least one director of the Company (whom shall be either the chief executive officer or the chief financial officer) must give a presentation to the Finance Parties about the on-going business and financial performance of the Group.

	20.7	Year-end

The Company shall not change its Accounting Reference Date.

	20.8	Information: miscellaneous

The Company shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):

		(a)	once every quarter a detailed specification of stock held by the Group detailing, among others, (i) the type of products, (ii) the value per item calculated on the basis of the gross amount of the aggregate relevant stock,

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(iii) if the product is earmarked for a running loyalty program or a potential loyalty program, (iv) if the product can be returned to the relevant supplier for the full amount of the original purchase price of such product and (v) if the products are obsolete or not;

		(b)	once every quarter a specification of:

		(i)	accounts payable by Brand Loyalty Sourcing B.V. or, if any other member of the Group has the majority of accounts payable of the Group, by such other member of the Group; and

		(ii)	an up-to-date overview listing the accounts receivable of each member of the Group;

		(c)	promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which might, if adversely determined, have a Material Adverse Effect;

		(d)	promptly, such information as the Security Agent may reasonably require about the Charged Property and compliance of the Obligors with the terms of any Security Documents;

		(e)	promptly, such further information regarding the financial condition, business and operations of any member of the Group as any Finance Party (through the Agent) may reasonably request;

		(f)	promptly, such further information as may be required by applicable banking supervisory laws and regulations and/or in line with standard banking practice; and

		(g)	promptly, a basic report on stock and accounts receivable in form and substance acceptable to the Majority Lenders.

	20.9	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 that Obligor is aware that a notification has already been provided by another Obligor).

		(b)	Promptly upon a request by the Agent, the Company shall supply to the Agent a certificate signed by two of its directors 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).

	20.10	Use of 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

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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;

		(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 ten Business Days.

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	20.11	"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, the composition of the shareholders of an Obligor or any shareholder obtaining more than 25% of the shares in an Obligor after the date of this Agreement; or

		(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.

		(c)	The Company shall, by not less than ten Business Days' prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Obligor pursuant to Clause 25 (Changes to the Obligors).

		(d)	Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Additional Obligor obliges the Agent or any Lender to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and be

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satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the accession of such Subsidiary to this Agreement as an Additional Obligor.

	20.12	FATCA Information

		(a)	Subject to paragraph(c) below, each Party shall, within ten Business Days of a reasonable request by another Party:

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

		(A)	a FATCA Exempt Party; or

		(B)	not a FATCA Exempt Party; and

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

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

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

		(c)	Paragraph (a) above shall not oblige any Finance Party to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

		(i)	any law or regulation;

		(ii)	any fiduciary duty; or

		(iii)	any duty of confidentiality.

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

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	21.	FINANCIAL COVENANT

	21.1	Financial definitions

In this Clause21:

"Borrowings" means, at any time, the aggregate outstanding principal, capital or nominal amount (and any fixed or minimum premium payable on prepayment or redemption) of any indebtedness of members of the Group for or in respect of:

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

		(b)	any acceptances under any acceptance credit or bill discount facility (or dematerialised equivalent);

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

		(d)	any Finance Lease;

		(e)	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis and meet any requirements for de-recognition under the Accounting Principles);

		(f)	any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution in respect of an underlying liability of an entity which is not a member of the Group which liability would fall within one of the other paragraphs of this definition;

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

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

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

"EBIT" means, in respect of any Relevant Period, the consolidated operating profit of the Group before taxation after deducting the amount of any profit (or adding back the amount of any loss) of any member of the Group which is attributable to minority interests.

"EBITDA" means, in respect of any Relevant Period, EBIT for that Relevant Period after adding back any amount attributable to the amortisation, depreciation or impairment of assets of members of the Group (and taking no account of the reversal of any previous impairment charge made in that Relevant Period) before taking into

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account any Exceptional Items provided that the aggregate amount of Exceptional Items in respect of any Relevant Period that may be taken into account for the purpose of calculating EBITDA may not exceed EUR 2,500,000 (or its equivalent).

"Exceptional Items" means any exceptional, one off, non-recurring or extraordinary items which represent gains or losses including those arising on:

		(a)	the restructuring of the activities of an entity and reversals of any provisions for the cost of restructuring;

		(b)	disposals, revaluations, write downs or impairment of non-current assets or any reversal of any write down or impairment;

		(c)	disposals of assets associated with discontinued operations; and

		(d)	a sale and transfer of the shares in the capital of the Company to the extent permitted under the terms of this Agreement.

"Finance Lease" means any lease or hire purchase contract which would, in accordance with the Accounting Principles, be treated as a finance or capital lease.

"Financial Quarter" means the period commencing on the day after one Quarter Date and ending on the next Quarter Date.

"Financial Year" means the annual accounting period of the Group ending on or about 31 December in each year.

"Quarter Date" means each of 31 March, 30 June, 30 September and 31 December.

"Relevant Period" means each period of twelve months ending on the last day of the Company's Financial Year and each period of twelve months ending on the last day of each Financial Quarter.

"Senior Net Leverage" means, in respect of any Relevant Period, the ratio of Senior Total Net Debt on the last day of that Relevant Period to EBITDA in respect of that Relevant Period.

"Senior Total Net Debt" means, at any time, the aggregate amount of all obligations of members of the Group for or in respect of Borrowings at that time but:

		(a)	excluding any such obligations to any other member of the Group;

		(b)	including, in the case of Finance Leases only, their capitalised value; and

		(c)	deducting the aggregate amount of Cash and Cash Equivalent Investments held by any Obligors at that time,

and so that no amount shall be included or excluded more than once.

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	21.2	Financial condition

The Company shall ensure that Senior Net Leverage in respect of any Relevant Period shall not exceed:

		(i)	with respect to the Relevant Periods ending on 30 June 2016 and 30 September 2016, 3.25:1:00;

		(ii)	with respect to the Relevant Periods ending on 31 December 2016 and 31 March 2017, 3.00:1.00;

		(iii)	with respect to the Relevant Periods ending on 30 June 2017 and 30 September 2017, 2.75:1.00; and

		(iv)	with respect to any other Relevant Period, 2.50:1.00.

	21.3	Financial testing

The financial covenant set out in Clause 21.2 (Financial condition) shall be tested by reference to each of the financial statements and/or each Compliance Certificate delivered pursuant to Clause 20.2 (Compliance Certificate).

	21.4	Equity cure

		(a)	Subject to paragraphs (b) to and including (d) below, the Company may elect to use the net proceeds received by it in cash of any New Equity and/or Subordinated Shareholder Loan (the "Equity Cure Amount") to remedy non-compliance with the requirement set out in Clause 21.2 (Financial condition) by electing to deduct the Equity Cure Amount required to remedy that non-compliance from Senior Total Net Debt in the manner set out in paragraph (d) below.

		(b)	The Equity Cure Amount may only be taken into account to remedy non-compliance with the requirement set out in Clause 21.2 (Financial condition) if each of the following conditions is satisfied:

		(i)	the Company elects to apply the proceeds as a remedy before the date which is 15 Business Days after the earlier of:

		(A)	the Company becoming aware of the failure to comply; and

		(B)	the date of delivery of the Compliance Certificate relating to the financial statements for the last Financial Quarter of the Relevant Period (the "Relevant Quarter Date") to which the non-compliance relates;

		(ii)	the election is made by written notice of the Company (signed by a director) to the Agent (the "Election Notice") and certifies the Equity Cure Amount received in cash by the Company and specifies the Relevant Period in respect of which it is to be taken into account; and

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		(iii)	the Election Notice is accompanied by a revised Compliance Certificate showing compliance with the requirement as set out in Clause 21.2 (Financial condition) after taking into account the Equity Cure Amount used to remedy that non-compliance.

		(c)	The Company may not, other than with the prior written consent of all the Lenders, make an election pursuant to paragraph (a) above more than once after the Fourth Effective Date.

		(d)	For the purposes of this Clause 22, the Equity Cure Amount shall, solely for the purpose of testing the financial covenant, be deemed to be applied such that Senior Total Net Debt for the Relevant Period ending on the Relevant Quarter Date shall be reduced by the Equity Cure Amount provided that for each subsequent Relevant Period, Senior Total Net Debt shall be calculated on the basis of the actual Senior Total Net Debt as at the end of such subsequent Relevant Period.

	22.	GENERAL UNDERTAKINGS

The undertakings in this Clause 22 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.

	22.1	Authorisations

Each Obligor shall promptly:

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

		(b)	supply copies certified by the directors of the Company to the Agent of,

any Authorisation required under any law or regulation of the Relevant Jurisdictions to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in each Relevant Jurisdiction of any Finance Document.

	22.2	Compliance with laws

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

	22.3	Environmental compliance

Each Obligor shall (and the Company shall ensure that each other member of the Group will) comply in all material respects with all Environmental Law and obtain and maintain any Environmental Permits and take all reasonable steps in anticipation of known or expected future changes to or obligations under the same where failure to do so might reasonably be expected to have a Material Adverse Effect.

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	22.4	Environmental Claims

The Company shall inform the Agent in writing as soon as reasonably practicable upon becoming aware of:

		(a)	any Environmental Claim that has been commenced or (to the best of its knowledge and belief) is threatened against any member of the Group; or

		(b)	any facts or circumstances which will or are reasonably likely to result in any Environmental Claim being commenced or threatened against any member of the Group,

where the claim would be reasonably likely, if determined against that member of the Group, to have a Material Adverse Effect.

	22.5	Taxation

Each Obligor shall (and the Company shall ensure that each other member of the Group will) duly and punctually pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring material penalties (except to the extent that (a) such payment is being contested in good faith, (b) adequate reserves are being maintained for those Taxes and (c) such payment can be lawfully withheld).

	22.6	Merger

No Obligor shall (and the Company shall ensure that no other member of the Group will) enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction (which shall include, for the avoidance of doubt, any change to the nature of an Obligor's legal personality, status or company type).

	22.7	Change of business

The Company shall procure that no substantial change is made to the general nature of the business of the Company, the Obligors or the Group taken as a whole from that carried on by the Group at the Fourth Effective Date.

	22.8	Acquisitions

		(a)	No Obligor shall (and the Company shall ensure that no other member of the Group will) acquire a company or any shares or securities or a business or undertaking (or, in each case, any interest in any of them).

		(b)	Paragraph(a) above does not apply to an acquisition of a company, of shares, securities or a business or undertaking (or, in each case, any interest in any of them) or the incorporation of a company which is:

		(i)	an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed of by another member of the Group in circumstances constituting a disposal permitted under Clause 22.14 (Disposals);

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		(ii)	an acquisition (not being an acquisition by the Company) of (x) any part of the issued share capital and voting rights of a limited liability company or (y) a business or undertaking carried on as a going concern (each an "AcquisitionTarget"), but only if:

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

		(B)	the Acquisition Target is mainly engaged in a business similar or complementary to that of an existing member of the Group;

		(C)	if the aggregate of (i) the equity value of the Acquisition Target (assuming at all times for this purposes 100% of the issued share capital is being acquired), (ii) associated costs and expenses for the relevant acquisition and (iii) any Financial Indebtedness (net of cash) remaining in the Acquisition Target (assuming at all times for this purposes 100% of the issued share capital is being acquired) (together the "Enterprise Value") at the date of acquisition does not exceed EUR 30,000,000 and when aggregated with the Enterprise Value for any other acquisition permitted under this Clause 22.8 at the time of acquisition does not in any Financial Year of the Company exceed in aggregate EUR 50,000,000 or its equivalent; and

		(D)	a director of the Company certifies that Acquisition Target is projected to have positive earnings before interest, tax, depreciation and amortisation (calculated on a consolidated basis (if applicable) and on the same basis as EBITDA) for the twelve Month period starting on the first day of the next Month after the closing date for the acquisition.

	22.9	Joint Ventures

		(a)	No Obligor shall (and the Company shall ensure that no other member of the Group will):

		(i)	enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

		(ii)	transfer any assets or lend to or guarantee or give an indemnity for or give Security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

		(b)	Paragraph (a) above does not apply to any acquisition of (or agreement to acquire) any interest in a Joint Venture if such transaction is an acquisition permitted under Clause 22.8 (Acquisitions). For purposes of this Clause 22.9(b), the test specified in Clause 22.8(b)(ii)(C) shall be applied based on the actual percentage interest in the share capital of the Joint Venture being acquired by the relevant member of the Group.

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	22.10	Holding Companies

The Company shall not trade, carry on any business, own any assets or incur any liabilities except for:

		(a)	the provision of administrative services (excluding treasury services) to other members of the Group of a type customarily provided by a holding company to its Subsidiaries;

		(b)	ownership of shares in its Subsidiaries, intra-Group debit balances, intra-Group credit balances and other credit balances in bank accounts, cash and Cash Equivalent Investments but only if those shares, credit balances, cash and Cash Equivalent Investments are subject to the Transaction Security to the extent so required by the terms of the Finance Documents;

		(c)	any liabilities under the Finance Documents to which it is a party;

		(d)	taxes, professional fees and administration costs in the ordinary course of business as a holding company;

		(e)	ownership of assets and incurrence of liabilities specifically permitted under the Finance Documents; and

		(f)	de minimis activities that do not, in any material manner, adversely affect the rights, remedies, power or privileges of the Finance Parties under the Finance Documents.

	22.11	Preservation of Assets

Each Obligor shall, and the Company shall ensure that each other member of the Group will, maintain and preserve all of its assets that are necessary or desirable for the conduct of its business, as conducted at the Fourth Effective Date, in good working order and condition, ordinary wear and tear excepted.

	22.12	Pari passu ranking

Each Obligor shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party or Hedge Counterparty against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

	22.13	Negative pledge

In this Clause 22.13, "Quasi-Security" means an arrangement or transaction described in paragraph (b) below.

		(a)	No Obligor shall (and the Company shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets.

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		(b)	No Obligor shall (and the Company shall ensure that no other member of the Group will):

		(i)	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other member of the Group;

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

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

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

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

		(c)	Paragraphs (a) and (b) above do not apply to any Security (or as the case may be) Quasi-Security, listed below:

		(i)	until the Third Effective Date, the Existing Security;

		(ii)	any netting or set-off arrangement entered into, or Security granted by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

		(iii)	any payment or close out netting or set-off arrangement pursuant to any hedging transaction entered into by a member of the Group for the purpose of:

		(A)	hedging any risk to which any member of the Group is exposed in its ordinary course of trading; or

		(B)	its interest rate or currency management operations which are carried out in the ordinary course of business and for non-speculative purposes only,

excluding, in each case, any Security or Quasi-Security under a credit support arrangement in relation to a hedging transaction;

		(iv)	any lien arising by operation of law and in the ordinary course of trading;

		(v)	any Security or Quasi-Security over or affecting any asset acquired by a member of the Group after the date of this Agreement if:

		(A)	the Security or Quasi-Security was not created in contemplation of the acquisition of that asset by a member of the Group;

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

		(C)	the Security or Quasi-Security is removed or discharged within three months of the date of acquisition of such asset;

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

		(A)	the Security or Quasi-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 or Quasi-Security is removed or discharged within three months of that company becoming a member of the Group;

		(vii)	the Transaction Security;

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

		(ix)	any Security or Quasi-Security entered into by any member of the Group in the ordinary course of its banking arrangements pursuant to the general banking conditions (algemene bankvoorwaarden); or

		(x)	any Security or Quasi-Security securing indebtedness the principal amount of which (when aggregated with the principal amount of any other indebtedness which has the benefit of Security or Quasi-Security given by any member of the Group other than any permitted under paragraphs (i) to (ix) above) does not exceed EUR 500,000 (or its equivalent in another currency or currencies).

	22.14	Disposals

		(a)	No Obligor shall (and the Company shall ensure that no other member of the Group will), enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

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		(b)	Paragraph (a) above does not apply to any sale, lease, transfer or other disposal:

		(i)	of stock in trade made in the ordinary course of trading and on arm's length terms of the disposing entity;

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

		(iii)	by one Obligor to another Obligor if that other Obligor is party to a legally valid binding and enforceable Security Document which creates a first priority Security over substantially all of its assets;

		(iv)	by a member of the Group which is not an Obligor to another member of the Group;

		(v)	for cash on arm's length terms of any obsolete assets not required for the efficient operation of the business of the Group by any member of the Group;

		(vi)	of cash where that disposal is not otherwise prohibited by the Finance Documents;

		(vii)	on a non-recourse basis by an Obligor of any receivable it has on any of its trade debtors arising in the ordinary course of trading to a financial institution under any supply chain financing programme entered into between the relevant financial institution, the Obligor and the relevant trade debtor, provided that any such supply chain financing programme is entered into on arm's length and normal commercial terms and in the ordinary course of trading activities of such Obligor and where such programme has the benefit of off-balance sheet treatment;

		(viii)	of inventory as a direct result of the relocation of the offices of one or more of the Dutch Obligors to a new address in s'-Hertogenbosch, The Netherlands as scheduled to take place in Financial Year 2013 and as notified to the Agent on the date of this Agreement; or

		(ix)	where the book value of the assets (when aggregated with the book value of the assets for any other sale, lease, transfer or other disposal by the Group, other than any permitted under paragraphs (i) to (v) above) does not exceed EUR 50,000 (or its equivalent in another currency or currencies) in any Financial Year.

	22.15	Arm's length basis

		(a)	No Obligor shall (and the Company shall ensure no other member of the Group will) enter into any transaction with any person except on not less than arm's length terms and for full market value.

		(b)	The following transactions shall not be a breach of paragraph (a) of this Clause 22.15 (Arm's length basis):

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		(i)	loans referred to in paragraph (b)(ii) and (b)(iii) of Clause 22.16 (Loans and Guarantees); and

		(ii)	any sale, lease, transfer or other disposal referred to in paragraph (b)(iii) of Clause 22.14 (Disposal).

	22.16	Loans and Guarantees

		(a)	No Obligor shall and the Company shall ensure that no other member of the Group will make any loans, grant any credit or give any guarantee or indemnity to or for the benefit of any person or otherwise voluntarily assume any liability, whether actual or contingent, in respect of any obligation of any person, including for the avoidance of doubt to or for the benefit any Ringfenced Entity or in favour of creditors of a Ringfenced Entity for obligations of that Ringfenced Entity.

		(b)	Paragraph (a) above shall not apply to any:

		(i)	any trade credit extended by any member of the Group to its customers or suppliers on normal commercial terms and any advance payment made in relation to capital expenditure, in each case in the ordinary course of its trading activities;

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

		(iii)	loan made by an Obligor to a member of the Group which is not an Obligor so long as the aggregate amount of the Financial Indebtedness under any such loans does not exceed EUR 12,500,000 (or its equivalent in another currency) at any time;

		(iv)	loan made by a member of the Group to an employee or director of any member of the Group if the amount of that loan when aggregated with the amount of all loans to employees and directors by members of the Group does not exceed EUR 2,000,000 (or its equivalent) at any time, provided that the Company shall ensure that the aggregate of such loans on 30 June and 31 December of each Financial Year shall not exceed EUR 100,000 (or its equivalent);

		(v)	liability arising under a declaration of joint and several liability (hoofdelijke aansprakelijkheid) as referred to in Section 2:403 of the Dutch Civil Code;

		(vi)	liability arising as a result of two or more members of the Group forming part of a fiscal unity (fiscale eenheid);

		(vii)	any bank guarantee guaranteeing performance by a member of the Group under any rental agreement in relation to office space of a member of the Group and/or under any tax representation agreement in an aggregate amount not exceeding EUR 500,000 (or its equivalent) at any time;

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

		(ix)	any guarantees given by the Company in favour of the vendors in the ordinary course of documentation of the acquisition of the shares in IM Digital Group B.V. which guarantees are in customary form and subject to customary limitations; and

		(x)	loans, credit, guarantees or indemnities as permitted or required under the terms of the Finance Documents.

	22.17	Dividends

		(a)	No Obligor shall and the Company shall ensure that no other member of the Group will pay, make or declare any dividend or other distribution in respect on or in respect of its share capital or redeem or purchase, defease, retire or repay any of its share capital or resolve to do so.

		(b)	Paragraph (a) above does not apply to:

		(i)	the declaration and payment of a dividend to the Company or any of its wholly-owned Subsidiaries;

		(ii)	the redemption, repurchase or payment of shares owned by management, directors or officers of any member of the Group by reason of such managers, directors or officers leaving their employment or ceasing to hold office in a maximum aggregate amount (when aggregated with any payment, repayment or prepayment of any principal amount (or capitalised interest) or interest outstanding under any Subordinated Shareholder Loan to the extent permitted under paragraph (b) of Clause 22.19 (Subordinated Shareholder Loans)) of EUR 2,000,000 (or its equivalent in other currencies) in the Financial Years 2013 (for the period starting on 18 November 2013) and 2014 (taken together) provided that the payment is made when no Default is continuing or would occur as a result of the making of the payment;

		(iii)	any dividend payment or other action otherwise prohibited by paragraph (a) after 31 December 2014 if:

		(A)	no Default is continuing or would occur immediately after such payment or other action; and

		(B)	Senior Net Leverage:

		(1)	in respect of the most recently ended Relevant Period at the time of that payment or other action is made, does not exceed 2.50:1.00; and

		(2)	will not exceed 2.50:1.00 immediately after that payment or other action; and

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		(iv)	the Share Buyback.

	22.18	Indebtedness

		(a)	The Company shall ensure that no other member of the Group shall incur, create or permit to subsist or have outstanding any Financial Indebtedness or enter into any agreement or arrangement whereby it is entitled to incur, create or permit to subsist any Financial Indebtedness.

		(b)	Paragraph (a) above does not apply to any Financial Indebtedness:

		(i)	arising as a consequence of:

		(A)	extending any payment terms with its creditors or suppliers on normal commercial terms;

		(B)	any repurchase or purchase obligation;

		(C)	tax liabilities; or

		(D)	one or more of its trade creditors selling its claim on any member of the Group to a Lender (or an Affiliate of a Lender) under any supply chain financing programme entered into between the relevant Lender (or Affiliate of a Lender), member of the Group and the relevant trade creditor pursuant to which such trade payable is replaced by Financial Indebtedness incurred under such supply chain finance programme, provided that:

		(1)	the amount of Financial Indebtedness incurred by the relevant members of the Group in doing so, when aggregated with any financing costs relating thereto, does not exceed (x) the amount of the sold trade payables and (y) in the case of members of the Group which are not Obligors, EUR 2,500,000 (or its equivalent) at any time;

		(2)	any such Financial Indebtedness does not have the benefit of any Security granted by any member of the Group; and

		(3)	any such supply chain financing programme is entered into on normal commercial terms,

in each case, in the ordinary course of its trading activities;

		(ii)	operational leases which in the future may qualify as Financial Indebtedness of vehicles, real estate, equipment or computer hardware;

		(iii)	any accruals existing according to the Accounting Principles;

		(iv)	until the Third Effective Date, the Existing Financial Indebtedness;

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		(v)	arising under the Finance Documents;

		(vi)	arising under any Subordinated Shareholder Loan Agreement;

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

		(viii)	permitted under Clause 22.16(b)(ii) or (iii); and

		(ix)	not permitted by the preceding paragraphs and the outstanding amount of which does not exceed EUR 500,000 (or its equivalent) in aggregate for the Group at any time.

	22.19	Subordinated Shareholder Loans

		(a)	Except as permitted under sub-clause (b) below, no Obligor shall (and the Company shall ensure that no other member of the Group will):

		(i)	repay or prepay any principal amount (or capitalised interest) outstanding under any Subordinated Shareholder Loan;

		(ii)	pay any interest or any other amounts payable in connection with any Subordinated Shareholder Loan; or

		(iii)	purchase, redeem, defease or discharge any amount outstanding with respect to any Subordinated Shareholder Loan.

		(b)	Paragraph (a) above, does not apply to:

		(i)	any payment, repayment or prepayment of any principal amount (or capitalised interest) or interest outstanding under any Subordinated Shareholder Loan in a maximum aggregate amount (when aggregated with any redemption, repurchase or payment of shares owned by management, directors or officers of any member of the Group by reason of such managers, directors or officers leaving their employment or ceasing to hold office to the extent permitted under paragraph (b) of Clause 22.17 (Dividends)) of EUR 2,000,000 (or its equivalent in other currencies) in the Financial Years 2013 (for the period starting on 18 November 2013) and 2014 (taken together) provided that the payment is made when no Default is continuing or would occur as a result of the making of the payment; and:

		(ii)	any payment, repayment or prepayment of any principal amount (or capitalised interest) or interest outstanding under any Subordinated Shareholder Loan after 31 December 2014 if:

		(A)	no Default is continuing or would occur immediately after the making of that payment, repayment or prepayment; and

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		(B)	Senior Net Leverage:

		(1)	in respect of the most recently ended Relevant Period at the time that payment, repayment or prepayment is made, does not exceed 2.50:1.00; and

		(2)	will not exceed 2.50:1.00 immediately after the making of that payment, repayment or prepayment.

	22.20	Insurance

Each Obligor shall (and the Company shall ensure that each other member of the Group will) maintain insurances on and in relation to its business and assets with reputable underwriters or insurance companies against those risks and to the extent as is usual for companies carrying on the same or substantially similar business.

	22.21	Pensions

The Company shall ensure that all pension schemes operated by or maintained for the benefit of members of the Group and/or any of their employees are funded to the extent required by applicable law and regulations where failure to do so would be reasonably likely to have a Material Adverse Effect.

	22.22	Access

Each Obligor shall, and the Company shall ensure that each other member of the Group whose shares are the subject of the Transaction Security will:

		(a)	on request of the Agent, provide the Agent and Security Agent with any information the Agent or Security Agent may reasonably require about that company's business and affairs, the Charged Property and its compliance with the terms of the Security Documents; and

		(b)	permit the Security Agent, its representatives, delegates, professional advisers and contractors, free access at all reasonable times and on reasonable notice at the cost of the Obligors, (i) to inspect and take copies and extracts from the books, accounts and records of that company and (ii) to view the Charged Property (without becoming liable as mortgagee in possession).

	22.23	Qualified management

The Company must ensure that there is in place in respect of each Obligor qualified management with appropriate skills.

	22.24	Intellectual Property

Each Obligor shall and the Company shall procure that each Group member will):

		(a)	preserve and maintain the subsistence and validity of the Intellectual Property necessary for the business of the relevant Group member;

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		(b)	use reasonable endeavours to prevent any infringement in any material respect of the Intellectual Property;

		(c)	make registrations and pay all registration fees and taxes necessary to maintain the Intellectual Property in full force and effect and record its interest in that Intellectual Property;

		(d)	not use or permit the Intellectual Property to be used in a way or take any step or omit to take any step in respect of that Intellectual Property which may materially and adversely affect the existence or value of the Intellectual Property or imperil the right of any member of the Group to use such property; and

		(e)	not discontinue the use of the Intellectual Property,

where failure to do so, in the case of 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.

	22.25	Amendments

Unless such action is consented to by all required Parties in compliance with Clause 38 (Amendments and waivers), no Obligor shall amend, vary, novate, supplement, supersede, waive or terminate any term of a Finance Document, any Subordinated Shareholder Loan Agreement or any other document delivered to the Agent pursuant to Clause 4.1 (Initial conditions precedent) or Clause 25 (Changes to the Obligors) in a way which could reasonably be expected to adversely affect the interests of the Finance Parties.

	22.26	Financial assistance

Each Obligor shall (and the Company shall procure each other member of the Group will) comply in all respects with Section 2:98(c) of the Dutch Civil Code and any equivalent legislation in other jurisdictions including in relation to the execution of the Security Documents and payment of amounts due under this Agreement.

	22.27	Treasury Transactions

No Obligor shall and the Company shall ensure that no members of the Group will enter into any Treasury Transaction, other than:

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

		(b)	spot and forward delivery foreign exchange contracts (including currency hedging transactions) entered into with a Finance Party (to the extent practically possible and provided by such Finance Party on market standard terms) in the ordinary course of business and not for speculative purposes.

	22.28	Compliance with Hedging Letter

The Company shall ensure that all exchange rate and interest rate hedging arrangements required by the Hedging Letters are implemented in accordance with

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the terms of the Hedging Letters and that such arrangements are not terminated, varied or cancelled without the consent of the Agent (acting on the instructions of the Majority Lenders).

	22.29	Guarantors

The Company shall ensure that at all times after the date of this Agreement, the aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, as defined in Clause21 (Financial Covenant)) of the Guarantors, the aggregate Current Assets of the Guarantors (in each case calculated on an unconsolidated basis and excluding all intra-group items and investments in Subsidiaries of any member of the Group) is not less than 80% of EBITDA (as defined in Clause21 (Financial Covenant)) and 70% of the consolidated Current Assets of the Group.

	22.30	Further assurance

		(a)	Each Obligor shall (and the Company shall procure that each other member of the Group will) promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Security Agent may reasonably specify (and in such form as the Security Agent may reasonably require in favour of the Security Agent or its nominee(s)):

		(i)	to perfect the Security created or intended to be created under or evidenced by the Security Documents (which may include the execution of a mortgage, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Transaction Security) or for the exercise of any rights, powers and remedies of the Security Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law;

		(ii)	to confer on the Security Agent or confer on the Finance Parties Security over any property and assets of that Obligor located in any jurisdiction equivalent or similar to the Security intended to be conferred by or pursuant to the Security Documents; and/or

		(iii)	to facilitate the realisation of the assets which are, or are intended to be, the subject of the Transaction Security.

		(b)	Each Obligor shall (and the Company shall procure that each other member of the Group shall) take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Security Agent or the Finance Parties by or pursuant to the Finance Documents.

		(c)	Each Obligor shall, if requested to do so by the Security Agent, provide additional Security for the fulfilment of its obligations over its assets towards the Security Agent and/or the other Finance Parties for the Secured Obligations on terms acceptable to the Security Agent, provided that the

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Security Agent shall, at its sole discretion, make a cost/benefit analysis before requiring any additional Security pursuant to the foregoing.

		(d)	It is understood by the Finance Parties that all trading stock of the Obligors will move continuously between warehouses (owned by third parties), inter alia, depending on availability, necessity and pricing of such warehouse space. In order to comply with its obligations under this Clause 22.30, the Obligors will promptly provide the Security Agent with a printed extract from the SAP system of the Obligors receiving a written request from the Security Agent to that effect.

	22.31	Limitation of General Undertakings

Notwithstanding the introductory provision of Clause 22 (General Undertakings) (but without prejudice to the performance of any of the obligations under Clause 22 (General Undertakings) by any Obligor whose relevant jurisdiction is not Germany), the undertakings set out in Clauses 22.6 (Merger), 22.7 (Change of business), 22.8 (Acquisitions), 22.9 (Joint Ventures), 22.14 (Disposals) and 22.17 (Dividends) (such undertakings, the "Relevant Undertakings") are not and shall not be given by any German Obligor (each a "German Obligor") or any of its Subsidiaries incorporated or established in the Federal Republic of Germany (together the "German Group"). However:

		(a)	each German Obligor shall give to the Agent not less than 15BusinessDays' prior written notice if it or any other member of the German Group proposes to carry out any of the acts or to take any of the steps referred to in the Relevant Undertakings which, if all the Relevant Undertakings were applicable to that member of the German Group, would constitute a breach of any of the Relevant Undertakings;

		(b)	the Agent shall be entitled within 5BusinessDays of receipt of the relevant German Obligor's notice under paragraph(a) above to request the relevant German Obligor to supply to the Agent in sufficient copies for the Lenders any relevant information in connection with the proposed action or steps referred to in such notice;

		(c)	the Agent shall notify the relevant German Obligor, within 5BusinessDays of receipt of the relevant German Obligor's notice under paragraph(a) above or, if additional information has been requested by the Agent within the prescribed time, within 5BusinessDays of receipt of such information, whether the proposed action or steps under paragraph(i) above is in the reasonable opinion of the Agent, acting on the instructions of the Majority Lenders, likely to materially and adversely affect the risk position of the Lenders;

		(d)	if the proposed action or steps under paragraph(a) above is so considered by the Agent to materially and adversely affect the risk position of the Lenders and the relevant member of the German Group nevertheless takes such action or steps under paragraph(i) above, this shall constitute an Event of Default pursuant to Clause 23.2 (Financial Covenant and other obligations) and the Agent shall be entitled to make (and, if so instructed by the Majority Lenders,

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shall make) the declaration, request and/or instruction set out in Clause23.21 (Acceleration).

	22.32	Condition subsequent

The Company shall procure that within 60 days of the date of this Agreement the relevant Borrowers enter into the Hedging Agreements.

	22.33	Segregation of assets or revenues

No Italian Obligor shall segregate assets or revenues pursuant to Article 2447-bis (Patrimoni Destinati ad uno Specifico Affare) of the Italian Civil Code, letter (a) and (b), without the prior written consent of the Agent (acting on the instructions of the Majority Lenders), in each case to an extent which is materially prejudicial to the interests of the Lenders taken as a whole under the Finance Documents.

	22.34	Positive pledge

Promptly upon request of the Agent (acting on the instructions of the Majority Lenders), each Italian Obligor shall pledge, charge, assign or otherwise secure any of its assets (to the extent not already subject to Transaction Security) in favour of the Security Agent and the other Finance Parties as security for amounts that are or may become owing under the Finance Documents in form and substance satisfactory to the Agent and the Security Agent, subject to limitations as to the scope of the obligations to be secured by such securities in line with the limitations defined for the guarantee and indemnity obligations of any Italian Guarantor under Clause 18 (Guarantee and Indemnity).

	22.35	Sanctions

		(a)	Each Obligor undertakes that it and any other member of the Group, or any director, officer or person acting on behalf of the foregoing, is not a Restricted Person and does not act directly or indirectly on behalf of a Restricted Person.

		(b)	Each Obligor shall take all reasonable measures to ensure that its agents and employees or any agent or employee of any other member of the Group or any Affiliate of any member of the Group is not a Restricted Person and does not act directly or indirectly on behalf of a Restricted Person.

		(c)	Each Obligor shall, and shall procure that each other member of the Group shall, not use any revenue or benefit derived from any activity or dealing with a Restricted Person in discharging any obligation due or owing to the Finance Parties.

		(d)	Each Obligor shall (i) procure that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with any Finance Party in its name or in the name of any other member of the Group and (ii) take all reasonable measures that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with any Finance Party in the name of any Affiliate of any member of the Group.

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		(e)	Each Obligor undertakes that it, and each other member of the Group, has taken reasonable measures to ensure compliance with Sanctions.

		(f)	Each Obligor shall, and shall procure that each other member of the Group shall, to the extent permitted by law promptly upon becoming aware of them supply to the Agent details of any claim, action, suit, proceedings or investigation against it with respect to Sanctions by any Sanctions Authority.

		(g)	Each Obligor shall not accept, obtain or receive any goods or services from any Restricted Person, except (without limiting Clause 22.2 (Compliance with laws)), to the extent relating to any warranties and/or guarantees given and/or liabilities incurred in respect of an activity or dealing with a Restricted Person by an Obligor in accordance with this Agreement.

		(h)	This Clause 22.35 (Sanctions) shall apply to any Obligor only to the extent that giving or complying with such undertakings does not result in (i) any violation of, conflict with or liability under EU Regulation (EC)2271/96 or (ii) a violation or conflict with section 7 foreign trade rules (AWV) (Außenwirtschaftsverordnung) (in connection with section 4 para 1 no 3 foreign trade law (AWG) (Außenwirtschaftsgesetz)) or a similar anti-boycott statute. In relation to each Lender that notifies the Agent to this effect (for the purposes of this Clause 22.35 (Sanctions) each a "Restricted Lender"), this Clause 22.35 (Sanctions) shall only apply for the benefit of that Restricted Lender to the extent that the sanctions provisions would not result in (i) any violation of, conflict with or liability under EU Regulation (EC) 2271/96 or (ii) a violation or conflict with section 7 foreign trade rules (AWV) (Außenwirtschaftsverordnung) (in connection with section 4 para 1 no 3 foreign trade law (AWG) (Außenwirtschaftsgesetz)) or a similar anti-boycott statute. In connection with any amendment, waiver, determination or direction relating to any part of this Clause 22.35 (Sanctions) of which a Restricted Lender does not have the benefit, the Commitments of that Restricted Lender will be excluded for the purpose of determining whether the consent of the Majority Lenders has been obtained or whether the determination or direction by the Majority Lenders has been made.

	23.	EVENTS OF DEFAULT

Each of the events or circumstances set out in this Clause 23 is an Event of Default (save as for Clause 23.21 (Acceleration).

	23.1	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:

		(a)	its failure to pay is caused by:

		(i)	administrative or technical error; or

		(ii)	a Disruption Event; and

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		(b)	payment is made within 5 Business Days of its due date.

	23.2	Financial Covenant and other obligations

Any requirement of Clause 20 (Information Undertakings) or Clause21 (Financial Covenant) is, subject to Clause 21.4 (Equity cure), not satisfied or any Obligor does not comply with any provision of Clause 22.13 (Negative Pledge), 22.14 (Disposals), Clause 22.18 (Indebtedness) or Clause 22.35 (Sanctions).

	23.3	Other obligations

		(a)	An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 23.1 (Non-payment) and Clause 23.2 (Financial Covenant and other obligations)).

		(b)	No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 10 days of the earlier of (A) the Agent giving notice to the Company and (B) the Company becoming aware of the failure to comply.

	23.4	Misrepresentation

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

	23.5	Cross default

		(a)	Any Financial Indebtedness of any member of the Group is not paid when due nor within any originally applicable grace period.

		(b)	Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

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

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

		(e)	No Event of Default will occur under this Clause 23.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above is less than EUR 500,000 (or its equivalent in any other currency or currencies).

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	23.6	Insolvency

		(a)	A member of the Group is unable or admits inability to pay its debts as they fall due (including a state of cessation des paiements within the meaning of the French Code de commerce), suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness (including, without limitation, shiharai funou and shiharai teishi under Japanese law) and in particular a member of the Group incorporated in Germany is unable to pay its debts as they fall due (zahlungsunfähig) within the meaning of section 17 of the German Insolvency Code (Insolvenzordnung) or threatens to become unable to pay its debts (drohend zahlungsunfähig) within the meaning of section 18 of the German Insolvency Code (Insolvenzverordnung).

		(b)	A member of the Group incorporated in Germany is overindebted within the meaning of section 19 of the German Insolvency Code (Insolvenzordnung) or, with respect to any other member of the Group, the value of the assets of any member of the Group is less than its liabilities (taking into account contingent and prospective liabilities) (including, without limitation, saimu chouka under Japanese law).

		(c)	A moratorium is declared in respect of any indebtedness of any member of the Group.

	23.7	Insolvency proceedings

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

		(a)	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution (including, without limitation, the resolutions for, the adjudication of or the order of kaisan under Japanese law), administration, the opening of proceedings for sauvegarde, sauvegarde accélérée, sauvegarde financière accélérée, redressement judiciaire or liquidation judiciaire or a judgement for cession totale ou partielle de l'entreprise pursuant to articles L.620-1 to L.670-8 of the French Code de commerce or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise, including in the context of a mandat ad hoc or of a conciliation in accordance with articles L.611-3 to L.611-15 of the French Code de commerce) of any member of the Group other than a solvent liquidation or reorganisation of any member of the Group which is not an Obligor;

		(b)	a composition, compromise, assignment or arrangement with any creditor of any member of the Group;

		(c)	the appointment of a liquidator (other than in respect of a solvent liquidation of a member of the Group which is not an Obligor), receiver, administrative receiver, administrator, mandataire ad hoc, conciliateur, compulsory manager or other similar officer in respect of any member of the Group or any of its assets;

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		(d)	enforcement of any Security over any assets of any member of the Group; or

		(e)	commencement of civil rehabilitation proceedings under the Civil Rehabilitation Act of Japan (minji saisei hou) (Act No. 225 of 1999, as amended), corporate reorganisation proceedings under the Corporate Reorganisation Act of Japan (kaisha kousei hou) (Act No. 154 of 2002, as amended), bankruptcy proceedings under the Bankruptcy Act of Japan (hasan hou) (Act No. 75 of 2004, as amended), special liquidation (tokubetsu seisan) under the Companies Act of Japan (kaisha hou) (Act No. 86 of 2005, as amended) or special mediation (tokutei choutei) under the Special Mediation Act of Japan (tokutei saimu tou no chousei no sokushin no tame no tokutei choutei ni kansuru houritsu) (Act No. 158 of 1999, as amended), in respect of any Japanese Guarantor,

or any analogous procedure or step is taken in any jurisdiction (including, without limitation, the making of an application for the opening of insolvency proceedings for the reasons set out in section 17 to 19 of the German Insolvency Code (Insolvenzordnung) (Antrag auf Eröffnung eines Insolvenzverfahrens)) or the taking of actions pursuant to section 21 of the German Insolvency Code (Insolvenzordnung).

This Clause 23.7 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 14 days of commencement.

	23.8	Suspension of banking transactions

Any bank, clearing house (tegata koukanjo), densai.net Co., Ltd. or any equivalent electronic monetary claim recording institution (denshisaiken kirokukikan) takes procedures for the suspension of any transactions of any Japanese Guarantor with banks or similar financial institutions.

	23.9	Creditors' process

Any expropriation, (provisional) attachment (including, without limitation, kari sashiosae under Japanese law), preservative attachment (including, without limitation, hozen sashiosae under Japanese law), attachment (including, without limitation, sashiosae under Japanese law), foreclosure (including, without limitation, keibai tetsuzuki under Japanese law), sequestration, distress or execution (including any of the enforcement proceedings provided for in the French Code des procédures civiles d'exécution) affects any asset or assets of a member of the Group and is not discharged within 21 days.

	23.10	Unlawfulness

		(a)	It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents or any Transaction Security created or expressed to be created or evidenced by the Security Documents ceases to be effective or any subordination created under any Subordinated Shareholder Loan Agreement is or becomes unlawful.

		(b)	Any obligation or obligations of any Obligor under any Finance Documents are not or cease to be legal, valid, binding or enforceable and the cessation

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individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.

		(c)	Any Finance Document ceases to be in full force and effect or any Transaction Security or any subordination created under any Subordinated Shareholder Loan Agreement ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.

	23.11	Subordinated Shareholder Loan Agreements

Any party to a Subordinated Shareholder Loan Agreement fails to comply with the subordination provisions of that Subordinated Shareholder Loan Agreement and the interests of the Lenders taken as a whole under the Finance Documents would be materially prejudiced by such failure and, if the non-compliance is capable of remedy, it is not remedied within 10 days of the earlier of the Agent giving notice to that party or that party becoming aware of the non-compliance.

	23.12	Cessation of business

Any member of the Group suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of its business, except as a result of a disposal permitted under Clause 22.14 (Disposals).

	23.13	Change of ownership

An Obligor (other than the Company) ceases to be a wholly-owned Subsidiary of the Company, except as result of disposal which is permitted under Clause 22.14 (Disposals).

	23.14	Audit qualification

The auditors of the Group qualify the audited annual consolidated financial statements of the Company in any material respect.

	23.15	Expropriation

The authority or ability of any member of the Group to conduct its business is limited or wholly or substantially curtailed by any seizure, expropriation, nationalisation, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person in relation to any member of the Group.

	23.16	Repudiation and rescission of agreements

		(a)	An Obligor rescinds or repudiates a Finance Document or any of the Transaction Security or evidences an intention to rescind or repudiate a Finance Document or any of the Transaction Security.

		(b)	Any party to the Subordinated Shareholder Loan Agreements rescinds or purports to rescind or repudiates or purports to repudiate any of the subordination provisions of those agreements in whole or in part where to do so has or is, in the reasonable opinion of the Majority Lenders, likely to have a

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material adverse effect on the interests of the Lenders under the Finance Documents.

	23.17	Litigation

Any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Finance Documents or the transactions contemplated in the Finance Documents or against any member of the Group or its assets (or against the directors of any member of the Group) which is likely to be adversely determined and, if adversely determined, would be reasonably likely to have a Material Adverse Effect.

	23.18	Pensions

The Company or any other member of the Group does not comply with its payment obligations under any pension scheme operated by or maintained for the benefit of members of the Group and/or any of their employees where failure to do so would be reasonably likely to have a Material Adverse Effect.

	23.19	Material adverse change

Any event or circumstance occurs which the Majority Lenders reasonably believe has or is reasonably likely to have a Material Adverse Effect.

	23.20	Minimum Share Capital Requirements in respect of any Italian Obligor

		(a)	The occurrence of the circumstances set forth in Article 2447, or 2482-ter, as applicable, of the Italian Civil Code in relation to any Italian Obligor unless, without delay and in any event no later than 30 days from the date on which such Italian Obligor's directors have knowledge of such occurrence, a shareholders' meeting duly pass a resolution approving a capital increase to comply with the minimum capital requirements under Italian law and setting a reasonable deadline for the shareholders to underwrite and pay up such capital increase (the "Share Capital Increase Resolution").

		(b)	The share capital increase approved by the Share Capital Increase Resolution has not been fully paid up in accordance with and within the deadline set forth in the Share Capital Increase Resolution.

	23.21	Acceleration

On and at any time after the occurrence of an Event of Default which is continuing the Agent may without mise en demeure or any other judicial or extra judicial step, and shall if so directed by the Majority Lenders, by notice to the Company but, in respect of any French Obligor, subject to the mandatory provisions of articles L.620-1 to L.670-8 of the French Code de commerce:

		(a)	cancel the Commitments, at which time they shall immediately be cancelled;

		(b)	declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be

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immediately due and payable, at which time they shall become immediately due and payable;

		(c)	declare that all or part of the Loans be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders;

		(d)	exercise, or direct the Security Agent to exercise, any or all of its rights, remedies and powers under any of the Finance Documents;

		(e)	declare that all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities be immediately due and payable at which time they shall become immediately due and payable; and/or

		(f)	declare that all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders.

	23.22	Uncommitted character of the Uncommitted Facility

Nothing in this Clause 23 (Events of Default) shall affect the uncommitted character and daily revocable nature of the Uncommitted Facility.

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SECTION 9

 CHANGES TO PARTIES

	24.	CHANGES TO THE LENDERS

	24.1	Assignments and transfers by the Lenders

Subject to this Clause 24, a Lender (the "Existing Lender") may:

		(a)	assign any of its rights; or

		(b)	transfer any of its rights and obligations,

under any Finance Document to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the "New Lender").

	24.2	Conditions of assignment or transfer

		(a)	An Existing Lender must consult with the Company for no more than 10 days before it may make an assignment or transfer in accordance with Clause 24.1 (Assignments and transfers by the Lenders), unless the assignment or transfer is to:

		(i)	another Lender or an Affiliate of a Lender;

		(ii)	a reputable bank, which is acceptable to all Lenders and which, in case of an assignment or transfer of any Revolving Facility Commitment or Uncommitted Facility Participation, shall be capable and willing to make available to the Company each type of Ancillary Facility set out in Clause 6.1 (Type of Facility); or

		(iii)	made at the time an Event of Default has occurred and is continuing.

		(b)	An assignment will only be effective on:

		(i)	receipt by the Agent (whether in the Transfer Certificate or otherwise) of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties and the other Secured Parties as it would have been under if it was an Original Lender; and

		(ii)	performance by the Agent of all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.

		(c)	A transfer will only be effective if the procedure set out in Clause 24.5 (Procedure for transfer) is complied with.

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		(d)	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 13 (Tax Gross Up and Indemnities) and/or Clause 14 (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.

		(e)	Each New Lender, by executing the relevant Transfer Certificate, confirms, for the avoidance of doubt, that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

	24.3	Assignment or transfer fee

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of EUR 2,500, unless such assignment or transfer is from a Lender to any of its Affiliates.

	24.4	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, the Transaction Security or any other documents;

		(ii)	the financial condition of any Obligor;

		(iii)	the performance and observance by any Obligor 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.

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		(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 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 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 or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 24; or

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

	24.5	Procedure for transfer

		(a)	If any Existing Lender wishes to transfer all or any part of its rights, benefits and obligations under the Finance Documents as contemplated in Clause 24.1 (Assignments andtransfers by the Lenders), then such transfer may be effected in the manner as set out in the Transfer Certificate by delivery to the Agent of a duly completed Transfer Certificate executed by such Existing Lender and the relevant New Lender.

		(b)	Each Party hereto irrevocably grants in advance its permission to a transfer of obligations as contemplated in this Clause 24 (Changes to the Lenders). Receipt of a Transfer Certificate by the Agent shall constitute notice of assignment (mededeling van cessie) and notice of transfer (mededeling van schuldoverneming) and each Party hereto irrevocably instructs the Agent (a) to receive each such notice of assignment and transfer on its behalf and in its name and agrees that such notice to be given to such party may be given to the Agent as representative of such party and (b) forward a copy of such notice to the Company.

		(c)	The benefit of each Security Document shall be maintained in favour of the New Lender.

		(d)	The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary "know your customer" or other similar other checks under all applicable laws and regulations in relation to the transfer to such New Lender.

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	24.6	Copy of Transfer Certificate or Increase Confirmation to Company

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Increase Confirmation, send to the Company a copy of that Transfer Certificate or Increase Confirmation.

	24.7	Security over Lenders' rights

In addition to the other rights provided to Lenders under this Clause 24.7, each Lender may without consulting with or obtaining consent from any Obligor at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under the Finance Documents (to the extent not separating its rights and claims under this Agreement from its rights and claims under the Security Documents) to secure obligations of that Lender including, without limitation:

		(a)	any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

		(b)	in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as Security for those obligations or securities,

except that no such charge, assignment or Security shall:

		(i)	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment 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.

	24.8	French law provisions

		(a)	To the extent a transfer of rights and obligations hereunder could be construed as a novation within the meaning of articles 1271 et seq. of the French Code Civil, each Party agrees that upon a transfer under Clause 24.1 (Assignments and transfers by the Lenders) and Clause 24.5 (Procedure for transfer), the security created under the French law governed Security Documents shall be preserved and maintained for the benefit of the Security Agent, the new Lender and the remaining Finance Parties pursuant to articles 1278 et seq. of the French Code Civil.

		(b)	The New Lender may, in case of an assignment of rights by an Existing Lender hereunder, if it considers it necessary to make such transfer effective as against third parties, arrange for the relevant assignment agreement to be notified by way of signification to any French Obligor in accordance with article 1690 of the French Code Civil.

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	25.	CHANGES TO THE OBLIGORS

	25.1	Assignments and transfers by Obligors

No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

	25.2	Additional Borrowers

		(a)	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 20.11 ("Know your customer" checks), the Company may request that any of its wholly owned Subsidiaries becomes an Additional Borrower. That Subsidiary shall become an Additional Borrower if:

		(i)	it is incorporated in the same jurisdiction of an existing Borrower and the Majority Lenders approve the addition of that Subsidiary;

		(ii)	if not incorporated in the same jurisdiction of an existing Borrower, all Lenders approve the addition of that Subsidiary;

		(iii)	the Company delivers to the Agent a duly completed and executed Accession Letter;

		(iv)	the Company confirms that no Default is continuing or would occur as a result of that Subsidiary becoming an Additional Borrower; and

		(v)	the Agent has received all of the documents and other evidence listed in Part II of Schedule 2 (Conditions precedent) in relation to that Additional Borrower, 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 II of Schedule 2 (Conditions precedent).

		(c)	Upon becoming an Additional Borrower that Subsidiary shall make any necessary tax filings (and provide copies of such filings) as required by and in accordance with Clause 13 (Tax gross-up and indemnities).

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

	25.3	Resignation of a Borrower

		(a)	The Company may request that a Borrower (other than the Company) ceases to be a Borrower by delivering to the Agent a Resignation Letter.

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		(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); and

		(ii)	the Borrower is under no actual or contingent obligations as a Borrower under any Finance Documents,

at which time that company shall cease to be a Borrower and shall have no further rights or obligations under the Finance Documents.

	25.4	Additional Guarantors

		(a)	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 20.11 ("Know your customer" checks), the Company may request that any of its wholly owned Subsidiaries become an Additional Guarantor. That Subsidiary 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 II of Schedule 2 (Conditions precedent) 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 II of Schedule 2 (Conditions precedent).

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

	25.5	Repetition of Representations

Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the Repeating Representations 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.

	25.6	Resignation of a Guarantor

		(a)	The Company may request that a Guarantor (other than the Company) ceases to be a Guarantor by delivering to the Agent a Resignation Letter.

 

 

 

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		(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)	all the Lenders have consented to the Company's request; and

		(iii)	where the Guarantor is also a Borrower, it is under no actual or contingent obligations as a Borrower and has resigned and ceased to be a Borrower under Clause 25.3 (Resignation of a Borrower),

at which time that company shall cease to be a Guarantor and shall have no further rights or obligations under the Finance Documents.

		(c)	If the resignation of a Guarantor is accepted in accordance with paragraph (b) of this Clause 25.6 the Agent shall instruct the Security Agent to release any Transaction Security granted by that Guarantor, in accordance with Clause 27.19 (Releases).

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SECTION 10

 THE FINANCE PARTIES

	26.	ROLE OF THE AGENT, THE ARRANGERS AND OTHERS

	26.1	Appointment of the Agent

		(a)	Each other Finance Party (other than the Security Agent) appoints the Agent to act as its agent under and in connection with the Finance Documents.

		(b)	Each other Finance Party authorises the Agent to perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

		(c)	Each other Finance Party (other than the Security Agent) hereby relieves the Agent from the restrictions pursuant to section 181 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.

		(d)	For the purposes of the Italian laws, the Agent has to be considered as "mandatario con rappresentanza" hereby duly appointed by the Finance Parties to act in their name and on their behalf for the purposes and within the limits set out in the Finance Documents.

		(e)	Each of the Finance Parties hereby:

		(i)	appoints, with the express consent pursuant to article 1395 of the Italian Civil Code, the Security Agent to be its mandatario con rappresentanza and common representative for the purpose of executing in the name and on behalf of the Finance Parties any Security Document which is expressed to be governed by Italian law (the "Italian Transaction Security Documents");

		(ii)	grants the Security Agent the power to negotiate and approve the terms and conditions of any of the Italian Transaction Security Documents, execute any other agreement or instrument, give or receive any notice or declaration, identify and specify to third parties the names of the Finance Parties at any given date, and take any other action in relation to the creation, perfection, confirmation, extension, maintenance, enforcement and/or release of any Security created thereunder in the name and on behalf of the Finance Parties;

		(iii)	confirms that in the event that any Security created under the Italian Transaction Security Documents remains registered in the name of a Finance Party after it has ceased to be a Finance Party then the

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Security Agent shall remain empowered to execute a release of such Security in its name and on its behalf; and

		(iv)	undertakes to ratify and approve any such action taken in the name and on behalf of the Finance Parties by the Security Agent acting in its appointed capacity.

	26.2	Appointment of the Security Agent as agent under the French security documents

		(a)	Each Finance Party (other than the Security Agent) (as mandant) appoints the Security Agent (which appointment is hereby accepted) to act as its agent (mandataire) (with full power to appoint and to substitute and to delegate) under or in connection with any security governed by French law to the extent that securities governed by French law could not be granted to the Security Agent under a parallel debt mechanism (a "Non Parallel Debt French Security") and authorises the Security Agent on its behalf to exercise such rights, powers, authorities and discretions as are specifically delegated to the Security Agent by the terms hereof and of any Security Document creating or expressed to create a Non Parallel Debt French Security benefiting to it (a "Non Parallel Debt French Security Document") and together with all rights, powers, authorities and discretions as are reasonably incidental thereto or necessary to give effect to the rights, powers, authorities and discretions of the Security Agent hereby and under or in connection with the Non Parallel Debt French Security Documents.

		(b)	Each Finance Party (other than the Security Agent) irrevocably authorises the Security Agent on its behalf to:

		(i)	enter into each Non Parallel Debt French Security Document;

		(ii)	acknowledge the provisions of each Non Parallel Debt French Security Document; and

		(iii)	waive, amend, perfect, enforce, release or take other actions under or in connection with, any Non Parallel Debt French Security or consented to in accordance with the Finance Documents and/or the Non Parallel Debt French Security Documents.

		(c)	Each Finance Party (other than the Security Agent) acknowledges that the Security Agent has been appointed by it to constitute, register, manage and enforce all Non Parallel Debt French Security created in its favour by any Non Parallel Debt French Security Document for the purposes of article 2328-1 of the French Code civil, and agrees that the Security Agent may exercise the rights and perform the obligations assumed by it pursuant to its nomination in accordance with applicable law from time to time.

	26.3	Instructions

		(a)	The Agent shall:

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		(i)	unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by:

		(A)	all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision;

		(B)	in all other cases, the Majority Lenders; and

		(ii)	not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with paragraph (i) above.

		(b)	The Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Lender or all the Lenders, from that Lender or all the Lenders) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion and the Agent may refrain from acting unless and until it receives those instructions or that clarification.

		(c)	Save in the case of decisions stipulated to be a matter for any other Lender or all the Lenders under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties save for the Security Agent.

		(d)	The Agent may refrain from acting in accordance with any instructions of any Lender, the Majority Lenders or all the Lenders until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with those instructions.

		(e)	In the absence of instructions, the Agent may act (or refrain from acting) as it considers to be in the best interest of the Lenders.

		(f)	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 (f) shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Security Documents or enforcement of the Transaction Security or Security Documents.

	26.4	Duties of the Agent

		(a)	The Agent's duties under the Finance Documents are solely mechanical and administrative in nature.

		(b)	Subject to paragraph (c) below, the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

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		(c)	Without prejudice to Clause 24.6 (Copy of Transfer Certificate or Increase Confirmation to Company), paragraph (b) above shall not apply to any Transfer Certificate or Increase Confirmation.

		(d)	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

		(e)	If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

		(f)	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent, the Arrangers or the Security Agent) under this Agreement it shall promptly notify the other Finance Parties.

		(g)	The Agent shall provide to the Company, within 10 Business Days of a request by the Company (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.

		(h)	The Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied).

		(i)	The Agent shall promptly forward to the Security Agent a copy of all notices issued pursuant to Clause 23.21 (Acceleration).

	26.5	Role of the Arrangers

Except as specifically provided in the Finance Documents, the Arrangers have no obligations of any kind to any other Party under or in connection with any Finance Document.

	26.6	No fiduciary duties

		(a)	Nothing in any Finance Document constitutes the Agent or the Arrangers as a trustee or fiduciary of any other person.

		(b)	None of the Agent, the Arrangers or any Ancillary Lender shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

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	26.7	Business with the Group

The Agent, the Arrangers and each Ancillary Lender may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

	26.8	Rights and discretions of the Agent

		(a)	The Agent may

		(i)	rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorised; and

		(ii)	assume that:

		(A)	any instructions received by it from the Majority Lenders, any Lenders or all the Lenders are duly given in accordance with the terms of the Finance Documents; and

		(B)	unless it has received notice of revocation, that those instructions have not been revoked; and

		(iii)	rely on a certificate from any person:

		(A)	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or

		(B)	to the effect that such person approves of any particular dealing, transaction, step, action or thing,

as sufficient evidence that that is the case and, in the case of paragraph (i) above, may assume the truth and accuracy of that certificate.

		(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 23.1 (Non-payment));

		(ii)	any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised;

		(iii)	any notice or request made by the Company (other than a Utilisation Request or Selection Notice) is made on behalf of and with the consent and knowledge of all the Obligors; and

		(iv)	Clauses 19.18 (Sanctions) and 22.35 (Sanctions) confer rights to each Finance Party (including voting rights where the amendment or waiver relates to Clauses 19.18 (Sanctions) and/or 22.35 (Sanctions)).

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		(c)	The Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts.

		(d)	Without prejudice to the generality of paragraph (c) above or paragraph(e) below, the Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent in its reasonable opinion deems this to be desirable.

		(e)	The Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.

		(f)	The Agent may act in relation to the Finance Documents through its officers, employees and agents and the Agent shall not:

		(i)	be liable for any error of judgment made by any such person; or

		(ii)	be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part, of any such person,

unless such error or such loss was directly caused by the Agent's gross negligence or wilful misconduct.

		(g)	Unless a Finance Document expressly provides otherwise the Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

		(h)	Without prejudice to the generality of paragraph (g) above, the Agent:

		(i)	may disclose; and

		(ii)	on the written request of the Company or the Majority Lenders shall, as soon as reasonably practicable, disclose,

the identity of a Defaulting Lender to the Company and to the other Finance Parties.

		(i)	Notwithstanding any other provision of any Finance Document to the contrary, none of the Agent or the Arrangers 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. In particular, and for the avoidance of doubt, nothing in any Finance Document shall be construed so as to constitute an obligation of the Agent or the Arranger to perform any services which it would not be entitled to render pursuant to the provisions of the German Act on Rendering Legal Services (Rechtsdienstleistungsgesetz) or pursuant to the provisions of the German Tax Advisory Act (Steuerberatungsgesetz) or any other services that require an express official approval, licence or registration, unless the Agent or the

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Arranger (as the case may be) holds the required approval, licence or registration.

		(j)	Notwithstanding any provision of any Finance Document to the contrary, the Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

	26.9	Responsibility for documentation

None of the Agent, the Arrangers or any Ancillary Lender is responsible or liable for:

		(a)	the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Agent, the Arrangers, an Ancillary Lender, an Obligor or any other person in or in connection with any Finance Document or the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; or

		(b)	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security; or

		(c)	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.

	26.10	No duty to monitor

The Agent shall not be bound to enquire:

		(a)	whether or not any Default has occurred;

		(b)	as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

		(c)	whether any other event specified in any Finance Document has occurred.

	26.11	Exclusion of liability

		(a)	Without limiting paragraph (b) below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Agent or any Ancillary Lender), none of the Agent nor any Ancillary Lender will be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:

		(i)	any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any

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action under or in connection with any Finance Document or the Transaction Security, unless directly caused by its gross negligence or wilful misconduct;

		(ii)	exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document, the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or the Transaction Security; or

		(iii)	without prejudice to the generality of paragraphs (i) and (ii) above, any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of:

		(A)	any act, event or circumstance not reasonably within its control; or

		(B)	the general risks of investment in, or the holding of assets in, any jurisdiction,

including (in each case and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action.

		(b)	No Party (other than the Agent or any Ancillary Lender as applicable) may take any proceedings against any officer, employee or agent of the Agent or any Ancillary Lender in respect of any claim it might have against the Agent or any Ancillary Lender or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent or any Ancillary Lender may rely on this Clause.

		(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 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 Arrangers to carry out:

		(i)	any "know your customer" or other checks in relation to any person; or

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		(ii)	any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Lender,

on behalf of any Lender and each Lender confirms to the Agent and the Arrangers 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 Arrangers.

		(e)	Without prejudice to any provision of any Finance Document excluding or limiting the Agent's liability, any liability of the Agent arising under or in connection with any Finance Document or the Transaction Security shall be limited to the amount of actual loss which has been finally judicially determined to have been suffered (as determined by reference to the date of default of the Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent at any time which increase the amount of that loss. In no event shall the Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Agent has been advised of the possibility of such loss or damages.

	26.12	Lenders' indemnity to the Agent

		(a)	Each Lender shall (in proportion to its share of the Commitments or, if the Commitments are then zero, to its share of the Commitments immediately prior to their reduction to zero) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 31.11 (Disruption to Payment Systems etc.) notwithstanding the Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

		(b)	Subject to paragraph (c) below, the Company shall immediately on demand reimburse any Lender for any payment that Lender makes to the Agent pursuant to paragraph (a) above.

		(c)	Paragraph (b) above shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability of the Agent to an Obligor.

	26.13	Resignation of the Agent

		(a)	The Agent may resign and appoint one of its Affiliates acting through an office in The Netherlands as successor by giving notice to the other Finance Parties and the Company.

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		(b)	Alternatively the Agent may resign by giving 30 days' notice to the other Finance Parties and the Company, in which case the Majority Lenders (after consultation with the Company) may appoint a successor Agent.

		(c)	If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 20 days after notice of resignation was given, the retiring Agent (after consultation with the Company) 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 26 and any other term of this Agreement dealing with the rights or obligations of the Agent consistent with the current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent's normal fee rates and those amendments will bind the Parties.

		(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.

		(g)	Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (e) above) but shall remain entitled to the benefit of Clause15.3 (Indemnity to the Agent) and this Clause 26 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date). Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

		(h)	After consultation with the Company, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above. In this event, the Agent shall resign in accordance with paragraph (b) above.

		(i)	The Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to paragraph (c) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

		(i)	the Agent fails to respond to a request under Clause20.12 (FATCA Information) and a Lender reasonably believes that the Agent will not

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be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

		(ii)	the information supplied by the Agent pursuant to Clause20.12 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

		(iii)	the Agent notifies the Company and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

and (in each case) a Lender believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and that Lender, by notice to the Agent, requires it to resign.

	26.14	Replacement of the Agent

		(a)	After consultation with the Company, the Majority Lenders may, by giving 30 days' notice to the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders) replace the Agent by appointing a successor.

		(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 (other than its obligations under paragraph (b) above) but shall remain entitled to the benefit of Clause15.3 (Indemnity to the Agent) and this Clause 26 (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.

	26.15	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.

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		(c)	Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arrangers 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 regulation or a breach of a fiduciary duty.

	26.16	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

		(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 Business Days' prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

		(b)	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 34.6 (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 34.2 (Addresses) and paragraph (a)(iii) of Clause 34.6 (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.

		(c)	Each Secured Party 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.

	26.17	Credit appraisal by the Lenders and Ancillary Lenders

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender and Ancillary Lender confirms to the Agent and the Arrangers that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of

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all risks arising under or in connection with any Finance Document including but not limited to:

		(a)	the financial condition, creditworthiness, condition, affairs, status and nature of each member of the Group;

		(b)	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document, the Transaction Security and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security;

		(c)	whether that Lender or Ancillary Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the Transaction Security, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security;

		(d)	the adequacy, accuracy or completeness of any other information provided by the Agent, the Security Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by any Finance Document 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 Transaction Security or the existence of any Security affecting the Charged Property,

and each Lender and Ancillary Lender warrants to the Agent and the Arrangers that it has not relied on and will not at any time rely on the Agent or the Arrangers in respect of any of these matters.

	26.18	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 Company) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

	26.19	Agent's Management Time

Any amount payable to the Agent under Clause 15.3 (Indemnity to the Agent), Clause17 (Costs and expenses) and Clause 26.12 (Lenders' indemnity to the Agent) shall include the cost of utilising the Agent's management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify to the Company and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 12 (Fees).

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	26.20	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.

	26.21	Role of Reference Banks

		(a)	No Reference Bank is under any obligation to provide a quotation or any other information to the Agent.

		(b)	No Reference Bank will be liable for any action taken by it under or in connection with any Finance Document, or for any Reference Bank Quotation, unless directly caused by its gross negligence or wilful misconduct.

		(c)	No Party (other than the relevant Reference Bank) may take any proceedings against any officer, employee or agent of any Reference Bank in respect of any claim it might have against that Reference Bank or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document, or to any Reference Bank Quotation, and any officer, employee or agent of each Reference Bank may rely on this Clause26.21.

	27.	ROLE OF SECURITY AGENT

	27.1	Appointment of Security Agent

		(a)	Each of the Agent, the Arrangers, the Lenders and the Hedge Counterparties hereby appoints the Security Agent to act as its agent in connection herewith and authorises the Security Agent to exercise such rights, powers and discretions as are specifically delegated to the Security Agent by the terms hereof together with all rights, powers and discretions as are reasonably incidental thereto or necessary to give effect to the rights, powers and discretions of the Security Agent hereby created and each of the Agent, the Arrangers, the Lenders and the Hedge Counterparties irrevocably authorises the Security Agent on its behalf (i) to enter into each Security Document and (ii) to acknowledge the provisions of each Security Document, including but not limited to any "Parallel Debt" provision contained therein.

		(b)	Each of the Secured Parties hereby:

		(i)	appoints, with the express consent pursuant to articles 1394 and 1395 of the Italian Civil Code, the Security Agent to be its mandatario con rappresentanza and common representative for the purpose of executing in the name and on behalf of the Secured Parties any Security Document which is expressed to be governed by Italian law;

		(ii)	grants the Security Agent the power to negotiate and approve the terms and conditions of such Security Document, execute any other agreement or instrument, give or receive any notice or declaration,

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identify and specify to third parties the names of the Secured Parties at any given date, and take any other action in relation to the creation, perfection, maintenance, enforcement and release of the Security created thereunder in the name and on behalf of the Secured Parties;

		(iii)	confirms that in the event that any Security created under the Security Documents remains registered in the name of a Secured Party after it has ceased to be a Secured Party then the Security Agent shall remain empowered to execute a release of such Security in its name and on its behalf; and

		(iv)	undertakes to ratify and approve any such action taken in the name and on behalf of the Secured Parties by the Security Agent acting in its appointed capacity.

	27.2	Parallel Debt

		(a)	Notwithstanding any other provision of this Agreement each Obligor hereby irrevocably and unconditionally undertakes to pay to the Security Agent expressly (including any successor Security Agent), as creditor in its own right and not as representative (vertegenwoordiger) of the other Finance Parties, sums equal to and in the currency of each amount payable by the Obligors to each of the Finance Parties under each of the Finance Documents as and when that amount falls due for payment under the relevant Finance Document or would have fallen due but for any suspension of payment, moratorium, discharge by operation of law or analogous event (the "Parallel Debt").

		(b)	The Security Agent shall have its own independent right to demand payment of the amounts payable by the Obligors under this Clause 27.2 irrespective of any suspension, extinction or any other discharge for any reason whatsoever (otherwise than by payment) of the Obligors' obligation to pay those amounts to the other Finance Parties other than a discharge by virtue of payment which those Finance Parties are entitled to retain.

		(c)	Any amount due and payable by any Obligor to the Security Agent under this Clause 27.2 shall be decreased to the extent that the other Finance Parties have received (and are able to retain) payment in full of the corresponding amount under the other provisions of the Finance Documents and any amount due and payable by the Obligors to the other Finance Parties under those provisions shall be decreased to the extent that the Security Agent has received (and is able to retain) payment in full of the corresponding amount under this Clause 27.2.

		(d)	The rights of the Finance Parties (other than the Security Agent) to receive payment of amounts payable by the Obligors under the Finance Documents are several and are separate and independent from, and without prejudice to, the rights of the Security Agent to receive payment under this Clause 27.2.

	27.3	Provisions related to German Law

		(a)	The Security Agent shall:

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		(i)	hold and administer any Security governed by German law which is security assigned (Sicherungseigentum/Sicherungsabtretung) or otherwise transferred under a non-accessory security right (nicht-akzessorische Sicherheit) to it as trustee (treuhänderisch) for the benefit of the Secured Parties; and

		(ii)	administer any Security governed by German law which is pledged (Verpfändung) or otherwise transferred to any Secured Party under an accessory security right (akzessorische Sicherheit) as agent.

		(b)	Each Secured Party hereby authorises the Security Agent (whether or not by or through employees or agents):

		(i)	to exercise such rights, remedies, powers and discretions as are specifically delegated to or conferred upon the Security Agent under the Security Documents together with such powers and discretions as are reasonably incidental thereto;

		(ii)	to take such action on its behalf as may from time to time be authorised under or in accordance with the Security Documents; and

		(iii)	to accept as its representative (Stellvertreter) any pledge or other creation of any accessory security right granted in favour of such Secured Party in connection with the Finance Documents under German law and to agree to and execute on its behalf as its representative (Stellvertreter) any amendments and/or alterations to any Security Document governed by German law which creates a pledge or any other accessory security right (akzessorische Sicherheit) including the release or confirmation of release of such Security.

		(c)	To the extent legally possible, each of the Secured Parties hereby releases the Security Agent from any restrictions on representing several persons and self-dealing under any applicable law, and in particular from the restrictions of Section 181 of the German Civil Code (Bürgerliches Gesetzbuch), to make use of any authorisation granted under this Agreement and to perform its duties and obligations as Security Agent hereunder and under the Security Documents. A Secured Party which is barred by its constitutional documents or by laws from granting such exemption shall notify the Security Agent accordingly. The Security Agent shall have the power to grant sub-power of attorney (including under release from the restrictions of Section 181 of the German Civil Code (Bürgerliches Gesetzbuch)) to the extent legally possible.

		(d)	Each Secured Party hereby ratifies and approves all acts and declarations previously done by the Security Agent on such Secured Party's behalf (including for the avoidance of doubt the declarations made by the Security Agent as representative without power of attorney (Vertreter ohne Vertretungsmacht) in relation to the creation of any pledge (Pfandrecht) on behalf and for the benefit of any Secured Party as future pledgee or otherwise).

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	27.4	Provisions related to Swiss law

Appointment of Security Agent

		(a)	Each Finance Party (other than the Agent) appoints the Security Agent to act as its agent under and in connection with the Security Documents.

		(b)	Each Finance Party authorizes the Security Agent to exercise the rights, powers, authorities and discretions specifically given to the Security Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

		(c)	In particular and with regard to each Security Document governed by Swiss law, each Finance Party appoints and authorizes the Security Agent:

		(i)	to enter into each Security Document that is non accessory (nicht-akzessorisch) in nature (such as an assignment agreement) in its own name, but for the benefit of the other Finance Parties; and

		(ii)	to enter into each Security Document that is accessory (akzessorisch) in nature (such as a share pledge agreement) for itself and for and on behalf of the other Finance Parties as direct representative (direkter Sterllvertreter) and each of the Finance Parties and the Borrower acknowledge that each Finance Party (including, without limitation, any new Finance Party) will be party to such Security Document.

		(d)	Each of the parties to this Agreement agrees that the Security Agent shall have only those duties, obligations and responsibilities expressly specified in this Agreement or in the Security Documents (and no others shall be implied).

Trust

		(e)	Unless provided to the contrary in any Security Document, each Finance Party thereby requests the Security Agent to acquire and the Security Agent declares that it shall hold the Transaction Security, and all other rights, title and interests in, to and under the Finance Documents to which it is a party and expressed to be a trustee and all proceeds of enforcement of the Transaction Security and of such Finance Documents, on trust for the Finance Parties on the terms contained in this Agreement.

		(f)	To the extent that the trust relationship as such is not recognised by Swiss law, it shall be interpreted to be

		(i)	a principal agent relationship (Treuhandverhältnis) in the case of each Security Document that is non accessory (nicht-akzessorisch) in nature (such as an assignment agreement);

		(ii)	a direct representative relationship (direkte Stellvertretung) in case of each Security Document that is accessory (akzessorisch) in nature (such as a share pledge agreement).

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	27.5	No Independent Power

The Secured Parties shall not have any independent power to enforce, or have recourse to, any of the Transaction Security or to exercise any rights or powers arising under the Security Documents except through the Security Agent.

	27.6	Security Agent's Instructions

The Security Agent shall:

		(a)	unless a contrary indication appears in a Finance Document, act in accordance with any instructions given to it by the Agent and shall be entitled to assume (i) that any instructions received by it from the Agent are duly given by or on behalf of the Majority Lenders or, as the case may be, the Lenders in accordance with the terms of the Finance Documents and (ii) unless it has received actual notice of revocation, that any instructions or directions given by the Agent have not been revoked;

		(b)	be entitled to request instructions, or clarification of any direction, from the Agent as to whether, and in what manner, it should exercise or refrain from exercising any rights, powers and discretions and the Security Agent may refrain from acting unless and until those instructions or clarification are received by it; and

		(c)	be entitled to, carry out all dealings with the Lenders through the Agent and may give to the Agent any notice or other communication required to be given by the Security Agent to the Lenders.

	27.7	Security Agent's Actions

Subject to the provisions of this Clause 27:

		(a)	the Security Agent may, in the absence of any instructions to the contrary, take such action in the exercise of any of its powers and duties under the Finance Documents which in its absolute discretion it considers to be for the protection and benefit of all the Secured Parties; and

		(b)	at any time after receipt by the Security Agent of notice from the Agent directing the Security Agent to exercise all or any of its rights, remedies, powers or discretions under any of the Finance Documents, the Security Agent may, and shall if so directed by the Agent, take any action as in its sole discretion it thinks fit to enforce the Transaction Security.

	27.8	Security Agent's Discretions

The Security Agent may:

		(a)	assume (unless it has received actual notice to the contrary in its capacity as Security Agent for the Secured Parties) that (i) no Default has occurred and no Obligor is in breach of or default under its obligations under any of the Finance Documents; and (ii) any right, power, authority or discretion vested in any person has not been exercised;

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		(b)	if it receives any instructions or directions from the Agent to take any action in relation to the Transaction Security, assume that all applicable conditions under the Finance Documents for taking that action have been satisfied;

		(c)	engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts (whether obtained by the Security Agent or by any other Secured Party) whose advice or services may at any time seem necessary, expedient or desirable;

		(d)	rely upon any communication or document believed by it to be genuine and, as to any matters of fact which might reasonably be expected to be within the knowledge of a Secured Party or an Obligor, upon a certificate signed by or on behalf of that person; and

		(e)	refrain from acting in accordance with the instructions of the Agent or Lenders (including bringing any legal action or proceeding arising out of or in connection with the Finance Documents) until it has received any indemnification and/or security that it may in its absolute discretion require (whether by way of payment in advance or otherwise) for all costs, losses and liabilities which it may incur in bringing such action or proceedings.

	27.9	Security Agent's Obligations

The Security Agent shall promptly inform the Agent of:

		(a)	the contents of any notice or document received by it in its capacity as Security Agent from any Obligor under any Finance Document; and

		(b)	the occurrence of any Default or any default by an Obligor in the due performance of or compliance with its obligations under any Finance Document of which the Security Agent has received notice from any other party to this Agreement.

	27.10	Excluded Obligations

Notwithstanding anything to the contrary expressed or implied in the Finance Documents, the Security Agent shall not:

		(a)	be bound to enquire as to (i) whether or not any Default has occurred or (ii) the performance, default or any breach by an Obligor of its obligations under any of the Finance Documents;

		(b)	be bound to account to any other Secured Party for any sum or the profit element of any sum received by it for its own account;

		(c)	be bound to disclose to any other person (including but not limited to any Secured Party) (i) any confidential information or (ii) any other information if disclosure would, or might in its reasonable opinion, constitute a breach of any law or be a breach of fiduciary duty;

		(d)	be under any obligations other than those which are specifically provided for in the Finance Documents; or

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		(e)	have or be deemed to have any duty, obligation or responsibility to, or relationship of trust or agency with, any Obligor.

	27.11	Exclusion of Security Agent's liability

The Security Agent is not responsible or liable for:

		(a)	the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Security Agent or any other person in or in connection with any Finance Document or the transactions contemplated in the Finance Documents;

		(b)	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document or the Transaction Security;

		(c)	any losses to any person or any liability arising as a result of taking or refraining from taking any action in relation to any of the Finance Documents or the Transaction Security or otherwise, whether in accordance with an instruction from the Agent or otherwise, unless directly caused by its gross negligence or wilful misconduct;

		(d)	the exercise of, or the failure to exercise, any judgement, discretion or power given to it by or in connection with any of the Finance Documents, the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, the Finance Documents or the Transaction Security; or

		(e)	any shortfall which arises on the enforcement of the Transaction Security.

	27.12	No proceedings

No Party (other than the Security Agent) may take any proceedings against any officer, employee or agent of the Security Agent in respect of any claim it might have against the Security Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document or any Transaction Security and any officer, employee or agent of the Security Agent may rely on this Clause.

	27.13	Own responsibility

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Secured Party confirms to the Security Agent that it has at all times 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, creditworthiness, condition, affairs, status and nature of each member of the Group;

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		(b)	the legality, validity, effectiveness, adequacy and enforceability of any Finance Document and the Transaction Security and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or the Transaction Security;

		(c)	whether that Secured Party has recourse, and the nature and extent of that recourse, against any Party or any other person or any of their respective assets under or in connection with any Finance Document, the Transaction Security, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or the Transaction Security;

		(d)	the adequacy, accuracy and/or completeness of any information provided by the Security Agent 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 Transaction Security or the existence of any Security affecting the Charged Property,

and each Secured Party warrants to the Security Agent that it has not relied on and will not at any time rely on the Security Agent in respect of any of these matters.

	27.14	No responsibility to perfect Transaction Security

The Security Agent shall not be liable for any failure to:

		(a)	require the deposit with it of any deed or document certifying, representing or constituting the title of any Obligor to any of the Charged Property;

		(b)	obtain any licence, consent or other authority for the execution, delivery, legality, validity, enforceability or admissibility in evidence of any of the Finance Documents or the Transaction Security;

		(c)	register, file or record or otherwise protect any of the Transaction Security (or the priority of any of the Transaction Security) under any applicable laws in any jurisdiction or to give notice to any person of the execution of any of the Finance Documents or of the Transaction Security;

		(d)	take, or to require any of the Obligors to take, any steps to perfect its title to any of the Charged Property or to render the Transaction Security effective or to secure the creation of any ancillary Security under the laws of any jurisdiction; or

		(e)	require any further assurances in relation to any of the Security Documents.

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	27.15	Insurance by Security Agent

		(a)	The Security Agent shall not be under any obligation to insure any of the Charged Property, to require any other person to maintain any insurance or to verify any obligation to arrange or maintain insurance contained in the Finance Documents. The Security Agent shall not be responsible for any loss which may be suffered by any person as a result of the lack of or inadequacy of any such insurance.

		(b)	Where the Security Agent is named on any insurance policy as an insured party, it shall not be responsible for any loss which may be suffered by reason of, directly or indirectly, its failure to notify the insurers of any material fact relating to the risk assumed by the insurers or any other information of any kind, unless any Secured Party has requested it to do so in writing and the Security Agent has failed to do so within fourteen days after receipt of that request.

	27.16	Acceptance of Title

The Security Agent shall be entitled to accept without enquiry, and shall not be obliged to investigate, the right and title that each of the Obligors may have to any of the Charged Property and shall not be liable for or bound to require any Obligor to remedy any defect in its right or title.

	27.17	Refrain from Illegality

The Security Agent may refrain from doing anything which in its opinion will or may be contrary to any relevant law, directive or regulation of any jurisdiction which would or might otherwise render it liable to any person, and the Security Agent may do anything which is, in its opinion, necessary to comply with any law, directive or regulation.

	27.18	Business with the Obligors

The Security Agent may accept deposits from, lend money to, and generally engage in any kind of banking or other business with any of the Obligors.

	27.19	Releases

		(a)	Upon a disposal of any of the Charged Property or the resignation of an Obligor in accordance with Clause 25 (Changes to the Obligors):

		(i)	pursuant to the enforcement of the Transaction Security by the Security Agent;

		(ii)	if that disposal is permitted under the Finance Documents; or

		(iii)	if the Security Agent is instructed to release the Transaction Security granted by the resigning Obligor under the terms of Clause 25 (Changes to the Obligors),

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the Security Agent shall (at the cost of the Obligors) release for and on its own behalf and for and on behalf of the other Secured Parties that property from the Transaction Security or the Transaction Security given by that Obligor and is authorised to execute, without the need for any further authority from the Secured Parties, any release of the Transaction Security or other claim over that asset or Obligor and to issue any certificates of non-crystallisation of floating charges that may be required or desirable.

		(b)	Upon a disposal of shares in the capital of an Obligor pursuant to the enforcement of the Transaction Security over such shares by the Security Agent, the Security Agent is irrevocably authorised (at the cost of the Company and without any consent, sanction, authority or further confirmation from any of the Finance Parties) to release:

		(i)	that Obligor and any Subsidiary of that Obligor from all Secured Obligations (including the guarantee provided for under Clause 18 (Guarantee and Indemnity) under any of the Finance Documents;

		(ii)	any Transaction Security granted by that Obligor or any Subsidiary of that Obligor over any of its assets; and

		(iii)	any other claim of any Finance Party or member of the Group over that Obligor's assets or over the assets of any Subsidiary of that Obligor,

on behalf of the relevant Finance Parties.

	27.20	Lender indemnity to the Security Agent

Each Lender shall (in proportion to its share of the Commitments or, if the Commitments are then zero, to its share of the Commitments immediately prior to their reduction to zero) indemnify the Security Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Security Agent (otherwise than by reason of the Security Agent's gross negligence or wilful misconduct) in acting as Security Agent under the Finance Documents (unless the Security Agent has been reimbursed by an Obligor pursuant to a Finance Document).

	27.21	Resignation of Security Agent

		(a)	The Security Agent may resign and appoint one of its Affiliates as successor by giving notice to the Company and to the Agent on behalf of the Lenders.

		(b)	Alternatively the Security Agent may resign by giving notice to the other Parties (or to the Agent on behalf of the Lenders) in which case the Majority Lenders may appoint a successor Security Agent.

		(c)	If the Majority Lenders have not appointed a successor Security Agent in accordance with paragraph (b) above within 30 days after the notice of resignation was given, the Security Agent (after consultation with the Agent) may appoint a successor Security Agent.

		(d)	The retiring Security Agent shall, at its own cost, make available to the successor Security Agent such documents and records and provide such

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assistance as the successor Security Agent may reasonably request for the purposes of performing its functions as Security Agent under the Finance Documents.

		(e)	The Security Agent's resignation notice shall only take effect upon (i) the appointment of a successor and (ii) the transfer of all of the Transaction Security to that successor.

		(f)	Upon the appointment of a successor, the retiring Security Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of Clauses 26 (Role of the Agentandthe Arrangers) and 27 (Role of Security Agent). 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.

		(g)	The Majority Lenders may, by notice to the Security Agent, require it to resign in accordance with paragraph (b) above. In this event, the Security Agent shall resign in accordance with paragraph (b) above.

	27.22	Delegation

		(a)	The Security Agent may, at any time, delegate by power of attorney or otherwise to any person for any period, all or any of the rights, powers and discretions vested in it by any of the Finance Documents.

		(b)	The delegation may be made upon any terms and conditions (including the power to sub-delegate) and subject to any restrictions that the Security Agent may think fit in the interests of the Secured Parties and it shall not be bound to supervise, or be in any way responsible for any loss incurred by reason of any misconduct or default on the part of any delegate or sub-delegate.

	27.23	Additional Security Agents

		(a)	The Security Agent may at any time appoint (and subsequently remove) any person to act as a separate Security Agent or as a co-Security Agent jointly with it (i) if it considers that appointment to be in the interests of the Secured Parties or (ii) for the purposes of conforming to any legal requirements, restrictions or conditions which the Security Agent deems to be relevant or (iii) for obtaining or enforcing any judgment in any jurisdiction, and the Security Agent shall give prior notice to the Company and the Agent of that appointment.

		(b)	Any person so appointed shall have the rights, powers and discretions (not exceeding those conferred on the Security Agent by this Agreement) and the duties and obligations that are conferred or imposed by the instrument of appointment.

		(c)	The remuneration that the Security Agent may pay to any person, and any costs and expenses incurred by that person in performing its functions pursuant to that appointment shall, for the purposes of this Agreement, be treated as costs and expenses incurred by the Security Agent.

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	28.	HEDGE COUNTERPARTIES AND HEDGING LIABILITIES

	28.1	Accession of Hedge Counterparties

If any Finance Party provides hedging arrangements to an Obligor which are permitted under Clause 22.27 (Treasury Transactions) and such Finance Party is not yet a party to this Agreement as Hedge Counterparty, such Finance Party providing hedging arrangements to any Obligor shall not be entitled to share in any of the Transaction Security or in the benefit of any guarantee or indemnity in respect of any of the liabilities arising in relation to those hedging arrangements nor shall those liabilities be treated as Hedging Liabilities, unless such Finance Party accedes to this Agreement, as a Hedge Counterparty by way of such Finance Party executing a Hedge Counterparty Accession Undertaking.

	28.2	Restriction on payment of Hedging Liabilities

The Obligors shall not, and shall procure that no other member of the Group will, make any payment of the Hedging Liabilities at any time unless:

		(a)	that payment is permitted under Clause 28.3 (Permitted payments of Hedging Liabilities); or

		(b)	the taking or receipt of that payment is permitted under paragraph (c) of Clause 28.8 (Permitted enforcement by Hedge Counterparties).

	28.3	Permitted payments of Hedging Liabilities

		(a)	Subject to paragraph (b) below, the Obligors may make payments to any Hedge Counterparty in respect of the Hedging Liabilities then due to that Hedge Counterparty under any Hedging Agreement in accordance with the terms of that Hedging Agreement:

		(i)	if the payment is a scheduled payment arising under the relevant Hedging Agreement;

		(ii)	to the extent that the relevant Obligor's obligation to make the payment arises as a result of the operation of:

		(A)	any of sections 2(d) (Deduction or Withholding for Tax), 2(e) (Default Interest; Other Amounts), 8(a) (Payment in the Contractual Currency), 8(b) (Judgments) and 11 (Expenses) of the 1992 ISDA Master Agreement (if the Hedging Agreement is based on a 1992 ISDA Master Agreement);

		(B)	any of sections 2(d) (Deduction or Withholding for Tax), 8(a) (Payment in the Contractual Currency), 8(b) (Judgments), 9(h)(i) (Prior to Early Termination) and 11 (Expenses) of the 2002 ISDA Master Agreement (if the Hedging Agreement is based on a 2002 ISDA Master Agreement); or

		(C)	any provision of a Hedging Agreement which is similar in meaning and effect to any provision listed in paragraphs (A) or

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(B) above (if the Hedging Agreement is not based on an ISDA Master Agreement);

		(iii)	to the extent that the relevant Obligor's obligation to make the payment arises from a Non‐Credit Related Close‐Out;

		(iv)	to the extent that:

		(A)	the relevant Obligor's obligation to make the payment arises from a Credit Related Close‐Out in relation to that Hedging Agreement; and

		(B)	no Event of Default is continuing at the time of that payment; or

		(v)	if the Majority Lenders give prior written consent to the payment being made.

		(b)	No payment may be made to a Hedge Counterparty under paragraph (a) above if any scheduled payment due from that Hedge Counterparty to an Obligor under a Hedging Agreement to which they are both party is due and unpaid.

		(c)	Failure by an Obligor to make a payment to a Hedge Counterparty which results solely from the operation of paragraph (b) above shall, without prejudice to Clause 28.4 (Payment obligations continue), not result in a default (however described) in respect of that Obligor under that Hedging Agreement.

	28.4	Payment obligations continue

No Obligor shall be released from the liability to make any payment (including of default interest, which shall continue to accrue) under any Hedging Agreement by the operation of Clauses 28.1 (Restriction on payment of Hedging Liabilities) and 28.3 (Permitted payments of Hedging Liabilities) even if its obligation to make that payment is restricted at any time by the terms of any of those Clauses.

	28.5	Amendments and waivers of Hedging Agreements

		(a)	Subject to paragraph(b) below, the Hedge Counterparties may not, at any time, amend or waive any term of the Hedging Agreements.

		(b)	A Hedge Counterparty may amend or waive any term of a Hedging Agreement in accordance with the terms of that Hedging Agreement if that amendment or waiver does not breach another term of this Agreement.

	28.6	Security for Hedge Counterparties

The Hedge Counterparties may not take, accept or receive the benefit of any Security, guarantee, indemnity or other assurance against loss from any member of the Group in respect of the Hedging Liabilities other than:

		(a)	the Transaction Security;

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		(b)	any guarantee, indemnity or other assurance against loss contained in:

		(i)	this Agreement; or

		(ii)	the relevant Hedging Agreement no greater in extent than any of those referred to in paragraph (i) above; and

		(c)	the indemnities contained in the ISDA Master Agreements (in the case of a Hedging Agreement which is based on an ISDA Master Agreement) or any indemnities which are similar in meaning and effect to those indemnities (in the case of a Hedging Agreement which is not based on an ISDA Master Agreement).

	28.7	Restriction on enforcement by Hedge Counterparties

Subject to Clause 28.8 (Permitted enforcement by Hedge Counterparties) and Clause 28.9 (Required enforcement by Hedge Counterparties), the Hedge Counterparties shall not pre-maturely terminate or close-out any of the hedging transactions or use any right of set-off or payment netting under any of the Hedging Agreements at any time, unless explicitly permitted under this Agreement (including for the avoidance of doubt any Close Out Netting).

	28.8	Permitted enforcement by Hedge Counterparties

		(a)	To the extent it is able to do so under the relevant Hedging Agreement, a Hedge Counterparty may terminate or close‐out in whole or in part any hedging transaction under that Hedging Agreement prior to its stated maturity:

		(i)	if a notice has been served to the Company by the Agent in accordance with Clause 23.21 (Acceleration);

		(ii)	if:

		(A)	in relation to a Hedging Agreement which is based on the 1992 ISDA Master Agreement:

		(1)	an Illegality or Tax Event or Tax Event Upon Merger (each as defined in the 1992 ISDA Master Agreement); or

		(2)	an event similar in meaning and effect to a "Force Majeure Event" (as defined in paragraph (B) below),

has occurred in respect of that Hedging Agreement;

		(B)	in relation to a Hedging Agreement which is based on the 2002 ISDA Master Agreement, an Illegality or Tax Event, Tax Event Upon Merger or a Force Majeure Event (each as defined in the 2002 ISDA Master Agreement) has occurred in respect of that Hedging Agreement; or

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		(C)	in relation to a Hedging Agreement which is not based on an ISDA Master Agreement, any event similar in meaning and effect to an event described in paragraphs(A) or (B) above has occurred under and in respect of that Hedging Agreement;

		(iii)	if an Event of Default has occurred under either Clause 23.6 (Insolvency) or Clause 23.7 (Insolvency proceedings) in relation to an Obligor which is party to that Hedging Agreement;

		(iv)	if the Majority Lenders give prior written consent to that termination or close‐out being made;

		(v)	if the only Secured Obligations are the Hedging Liabilities; or

		(vi)	to the extent that termination close-out is necessary:

		(A)	to ensure that the aggregate notional amount hedged by way of interest rate hedge transactions under the Hedging Agreements does not exceed the aggregate amount of principal outstanding under this Agreement; or

		(B)	to comply with the Hedging Letters.

		(b)	If an Obligor has defaulted on any payment due under a Hedging Agreement (after allowing any applicable notice or grace periods) and the default has continued unwaived for more than 10 Business Days after notice of that default has been given to the Security Agent and the Agent, the relevant Hedge Counterparty:

		(i)	may, to the extent it is able to do so under the relevant Hedging Agreement, terminate or close‐out in whole or in part any hedging transaction under that Hedging Agreement; and

		(ii)	until such time as the Security Agent has given notice to that Hedge Counterparty that the Transaction Security is being enforced (or that any formal steps are being taken to enforce the Transaction Security), shall be entitled to exercise any right it might otherwise have to sue for, commence or join legal or arbitration proceedings against any Obligor to recover any Hedging Liabilities due under that Hedging Agreement.

	28.9	Required enforcement by Hedge Counterparties

		(a)	Subject to paragraph (b) below, a Hedge Counterparty shall promptly terminate or close‐out in full any hedging transaction under all or any of the Hedging Agreements to which it is party prior to their stated maturity, following:

		(i)	if a notice has been served to the Company by the Agent in accordance with Clause 23.21 (Acceleration) and delivery to it of a notice from the Security Agent thereof; and

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		(ii)	delivery to it of a subsequent notice from the Security Agent (acting on the instructions of the Majority Lenders) instructing it to do so.

		(b)	Paragraph (a) above shall not apply to the extent that a notice has been served to the Company by the Agent in accordance with Clause 23.21 (Acceleration) as a result of an arrangement made between any Obligor and the Majority Lenders with the purpose of bringing about such notice.

		(c)	If a Hedge Counterparty is entitled to terminate or close‐out any hedging transaction under paragraph (b) of Clause 28.8 (Permitted enforcement Hedge Counterparties) (or would have been able to if that Hedge Counterparty had given the notice referred to in that paragraph) but has not terminated or closed out each such hedging transaction, that Hedge Counterparty shall promptly terminate or close‐out in full each such hedging transaction following a request to do so by the Security Agent (acting on the instructions of the Majority Lenders).

	28.10	Treatment of payments due to Obligors on termination of hedging transactions

		(a)	If, on termination of any hedging transaction under any Hedging Agreement occurring after a notice has been served to the Company by the Agent in accordance with Clause 23.21 (Acceleration) a settlement amount or other amount (following the application of any Close‐Out Netting, Payment Netting or Inter‐Hedging Agreement Netting in respect of that Hedging Agreement) falls due from a Hedge Counterparty to the relevant Obligor then that amount shall be paid by that Hedge Counterparty to the Security Agent, treated as the proceeds of enforcement of the Transaction Security and applied in accordance with the terms of this Agreement.

		(b)	The payment of that amount by the Hedge Counterparty to the Security Agent in accordance with paragraph (a) above shall discharge the Hedge Counterparty's obligation to pay that amount to that Obligor.

	29.	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.

	30.	SHARING AMONG THE FINANCE PARTIES

	30.1	Payments to Finance Parties

If a Finance Party (a "Recovering Finance Party") receives or recovers any amount from an Obligor other than in accordance with Clause 31 (Payment mechanics) or

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Clause 33 (Application of Proceeds) (a "Recovered Amount") and applies that amount to a payment due under the Finance Documents then:

		(a)	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent;

		(b)	the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 31 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

		(c)	the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the "Sharing Payment") equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 31.6 (Partial payments).

	30.2	Redistribution of payments

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the "Sharing Finance Parties") in accordance with Clause 31.6 (Partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.

	30.3	Recovering Finance Party's rights

On a distribution by the Agent under Clause 30.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

	30.4	Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

		(a)	each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the "Redistributed Amount"); and

		(b)	as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

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	30.5	Exceptions

		(a)	This Clause 30 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

		(b)	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

		(i)	it notified that other Finance Party of the legal or arbitration proceedings; and

		(ii)	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

	30.6	Ancillary Lenders

		(a)	This Clause 30 shall not apply to any receipt or recovery by a Lender in its capacity as an Ancillary Lender at any time prior to service of notice under Clause 23.21 (Acceleration).

		(b)	Following service of notice under Clause 23.21 (Acceleration), this Clause 30 shall apply to all receipts or recoveries by Ancillary Lenders except to the extent that the receipt or recovery represents a reduction of the Permitted Gross Outstandings of a Multi-account Overdraft to or towards an amount equal to its Designated Net Amount.

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SECTION 11

 ADMINISTRATION

	31.	PAYMENT MECHANICS

	31.1	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, excluding a payment under the terms of an Ancillary Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

		(b)	Payment shall be made to such account in the principal financial centre of the country of that currency with such bank as the Agent specifies, other than a Non-Cooperative Jurisdiction as far as payments from Obligors established in France for tax purposes are concerned.

	31.2	Distributions by the Agent

Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 31.3 (Distributions to an Obligor), Clause 31.4 (Clawback and pre-funding) and Clause 26.20 (Deduction from amounts payable by the Agent) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days' notice with a bank specified by that Party in the principal financial centre of the country of that currency, other than a Non-Cooperative Jurisdiction as far as payments received from Obligors established in France for tax purposes are concerned.

	31.3	Distributions to an Obligor

The Agent may (with the consent of the Obligor or in accordance with Clause 32 (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.

	31.4	Clawback and pre-funding

		(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)	Unless paragraph (c) below applies, if the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related

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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.

		(c)	If the Agent has notified the Lenders that it is willing to make available amounts for the account of a Borrower before receiving funds from the Lenders then if and to the extent that the Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to a Borrower:

		(i)	the Agent shall notify the Company of that Lender's identity and the Borrower to whom that sum was made available shall on demand refund it to the Agent; and

		(ii)	the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower to whom that sum was made available, shall on demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

	31.5	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 31.1 (Payments to the Agent) may instead pay that amount direct to the required recipient(s). In that case such payments must be made on the due date for payment under the Finance Documents.

		(b)	A Party which has made a payment in accordance with this Clause 31.5 shall be discharged of the relevant payment obligation under the Finance Documents.

	31.6	Partial payments

		(a)	If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order:

		(i)	first, in or towards payment pro rata of any unpaid amount owing to the Agent, the Security Agent and the Arrangers under the Finance Documents;

		(ii)	secondly, 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 any principal due but unpaid under those Finance Documents; and

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		(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.

	31.7	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.

	31.8	Business Days

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

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

	31.9	Currency of account

		(a)	Subject to paragraphs (b) to (c) below, Euro is the currency of account and payment for any sum due from an Obligor under any Finance Document.

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

		(c)	Any amount expressed to be payable in a currency other than Euro shall be paid in that other currency.

	31.10	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 Company); 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).

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		(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 Company) 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.

	31.11	Disruption to Payment Systems etc.

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Company that a Disruption Event has occurred:

		(a)	the Agent may, and shall if requested to do so by the Company, consult with the Company with a view to agreeing with the Company such changes to the operation or administration of the Facilities as the Agent may deem necessary in the circumstances;

		(b)	the Agent shall not be obliged to consult with the 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 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 38 (Amendments and Waivers);

		(e)	the Agent shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 31.11; and

		(f)	the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

	32.	SET-OFF

		(a)	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.

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		(b)	Any credit balances taken into account by an Ancillary Lender when operating a net limit in respect of any overdraft under an Ancillary Facility shall on enforcement of the Finance Documents be applied first in reduction of the overdraft provided under that Ancillary Facility in accordance with its terms.

	33.	APPLICATION OF PROCEEDS

	33.1	Order of Application

All moneys from time to time received or recovered by the Security Agent in connection with the realisation or enforcement of all or any part of the Transaction Security shall be held by the Security Agent to apply them at such times as the Security Agent sees fit, to the extent permitted by applicable law, in the following order of priority:

		(a)	in discharging any sums owing to the Security Agent;

		(b)	in payment to the Agent, on behalf of the Secured Parties, for application towards the discharge of all sums due and payable by any Obligor under any of the Finance Documents in accordance with Clause 31.6 (Partial Payments) and Hedging Agreements;

		(c)	if none of the Obligors is under any further actual or contingent liability under any Finance Document (including any Hedging Agreement), in payment to any person to whom the Security Agent is obliged to pay in priority to any Obligor; and

		(d)	the balance, if any, in payment to the relevant Obligor.

	33.2	Investment of Proceeds

Prior to the application of the proceeds of the Transaction Security in accordance with Clause 33.1 (Order of Application) the Security Agent may, at its discretion, hold all or part of those proceeds in an interest bearing suspense or impersonal account(s) in the name of the Security Agent or Agent with any financial institution (including itself) and for so long as the Security Agent thinks fit (the interest being credited to the relevant account) pending the application from time to time of those monies at the Security Agent's discretion in accordance with the provisions of this Clause 33.

	33.3	Currency Conversion

		(a)	For the purpose of or pending the discharge of any of the Secured Obligations the Security Agent may convert any moneys received or recovered by the Security Agent from one currency to another, at the spot rate at which the Security Agent is able to purchase the currency in which the Secured Obligations are due with the amount received.

		(b)	The obligations of any Obligor to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting the costs of conversion.

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	33.4	Permitted Deductions

The Security Agent shall be entitled (a) to set aside by way of reserve amounts required to meet and (b) to make and pay, any deductions and withholdings (on account of Tax or otherwise) which it is or may be required by any applicable law to make from any distribution or payment made by it under this Agreement, and to pay all Tax which may be assessed against it in respect of any of the Charged Property, or as a consequence of performing its duties, or by virtue of its capacity as Security Agent under any of the Finance Documents or otherwise (except in connection with its remuneration for performing its duties under this Agreement).

	33.5	Discharge of Secured Obligations

		(a)	Any payment to be made in respect of the Secured Obligations by the Security Agent may be made to the Agent on behalf of the Lenders and that payment shall be a good discharge to the extent of that payment, to the Security Agent.

		(b)	The Security Agent is under no obligation to make payment to the Agent in the same currency as that in which any Unpaid Sum is denominated.

	33.6	Sums received by Obligors

If any of the Obligors receives any sum which, pursuant to any of the Finance Documents, should have been paid to the Security Agent, that sum shall promptly be paid to the Security Agent for application in accordance with this Clause.

	34.	NOTICES

	34.1	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.

	34.2	Addresses

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

		(a)	in the case of the Company, that identified with its name below;

		(b)	in the case of each Lender, each Ancillary Lender or any other 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 and Security Agent, that identified with its name below,

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

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	34.3	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 or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details provided under Clause 34.2 (Addresses), if addressed to that department or officer.

		(b)	Any communication or document to be made or delivered to the Agent or to the Security Agent will be effective only when actually received by the Agent or the Security Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent's or the Security 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 Company in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

		(e)	All notices to a Lender from the Security Agent shall be sent through the Agent.

	34.4	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 34.2 (Addresses) or changing its own address or fax number, the Agent shall notify the other Parties.

	34.5	Communication when Agent is Impaired Agent

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly. This provision shall not operate after a replacement Agent has been appointed.

	34.6	Electronic communication

		(a)	Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means to the extent that those two Parties agree that, unless

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and until notified to the contrary, this is to be an accepted form of communication and if those two Parties:

		(i)	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

		(ii)	notify each other of any change to their address or any other such information supplied by them by not less than five Business Days' notice.

		(b)	Any electronic communication made between those two Parties will be effective only when actually received in readable form and in the case of any electronic communication made by a Party to the Agent or the Security Agent only if it is addressed in such a manner as the Agent or Security Agent shall specify for this purpose.

		(c)	Any electronic communication which becomes effective, in accordance with paragraph (b) above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

	34.7	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.

	35.	CALCULATIONS AND CERTIFICATES

	35.1	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.

	35.2	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.

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	35.3	Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

	36.	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.

	37.	REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Finance Party or Secured Party, any right or remedy under a Finance Document shall operate as a waiver of any such right or remedy or constitute an election to affirm any Finance Document. No election to affirm any Finance Document on the part of any Finance Party or Secured Party shall be effective unless it is in writing. No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law.

	38.	AMENDMENTS AND WAIVERS

	38.1	Required consents

		(a)	Subject to Clause 38.2 (Exceptions) and Clause 27.19 (Releases) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Company and any such amendment or waiver will be binding on all Parties.

		(b)	The Agent, or in respect of the Security Documents the Security Agent, may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause.

		(c)	Without prejudice to the generality of paragraphs (c), (d) and (e) of Clause 26.8 (Rights and discretions), the Agent may engage, pay for and rely on the services of lawyers in determining the consent level required for and effecting any amendment, waiver or consent under this Agreement.

		(d)	Each Obligor (other than the Company) agrees to any such amendment or waiver permitted by this Clause 38 which is agreed to by the Company. This includes any amendment or waiver which would, but for this paragraph (d), require the consent of all of the Guarantors.

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	38.2	Exceptions

		(a)	An amendment or waiver that has the effect of changing or which relates to:

		(i)	the definition of "Majority Lenders" in Clause 1.1 (Definitions);

		(ii)	an extension to the date of payment of any amount under the Finance Documents;

		(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

		(iv)	an increase in any Commitment, an extension of any Availability Period or any requirement that a cancellation of Commitments reduces the Commitments rateably under the relevant Facility;

		(v)	a change to the Borrowers or Guarantors other than in accordance with Clause 25 (Changes to the Obligors);

		(vi)	any provision which expressly requires the consent of all the Lenders;

		(vii)	Clause 2.3 (Finance Parties' rights and obligations), Clause 19.18 (Sanctions), 22.35 (Sanctions), Clause 24 (Changes to the Lenders), this Clause 38, Clause 42 (Governing law) or Clause 43 (Enforcement);

		(viii)	the nature or scope of the guarantee and indemnity granted under Clause 18 (Guarantee and indemnity);

		(ix)	the nature or scope of the Charged Property or the manner in which the proceeds of enforcement of the Transaction Security are distributed;

		(x)	an amendment or waiver which relates to the release of any guarantee and indemnity granted under Clause18 (Guarantee and indemnity) or of any Transaction Security unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document; or

		(xi)	any amendment to the subordination under a Subordinated Shareholder Loan Agreement,

shall not be made without the prior consent of all the Lenders.

		(b)	An amendment or waiver which relates to the rights or obligations of the Agent, the Security Agent, a Reference Bank, the Arrangers, any Ancillary Lender or a Hedge Counterparty (each in their capacity as such) may not be effected without the consent of the Agent, the Security Agent, that Reference Bank, the Arrangers, that Ancillary Lender or that Hedge Counterparty, as the case may be.

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		(c)	If any Lender fails to respond to a request for a consent, waiver or 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 15 Business Days (unless the Company 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 Commitments or participations under the Facilities when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Commitments and/or participations has been obtained to approve that request.

	38.3	Excluded Commitments

If any Lender notifies the Agent that as a result of the operation of Clauses 19.18 (Sanctions) and 22.35 (Sanctions) it has no voting rights in relation to a specific vote of Lenders under the terms of this Agreement:

		(a)	its Commitment(s) shall not be included for the purpose of calculating the Total Commitments under the relevant Facility/ies when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total Commitments has been obtained; and

		(b)	its status as Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained.

	38.4	Disenfranchisement Group members

For so long as a member of the Group (including any (in)direct shareholders of the Company and its Affiliates) (i) beneficially owns a Commitment or (ii) has entered into a sub-participation agreement relating to a Commitment or other agreement or arrangement having a substantially similar economic effect and such agreement has or arrangement has not been terminated:

		(a)	in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the aggregate Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, such Commitment shall be deemed to be zero; and

		(b)	for the purposes of Clause 38.2 (Exceptions), such Group member or the person with whom it has entered into such sub-participation, other agreement or arrangement shall be deemed not to be a Lender.

	38.5	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 aggregate Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Lender's Commitments will be reduced by the amount of its Available Commitments.

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		(b)	For the purposes of this Clause 38.5 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;

		(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.

	38.6	Replacement of Lender

		(a)	If at any time:

		(i)	any Lender becomes a Non-Consenting Lender (as defined in paragraph(c) below);

		(ii)	an Obligor becomes obliged to repay any amount in accordance with Clause 8.1 (Illegality) or to pay additional amounts pursuant to Clause14.1 (Increased Costs) or Clause 13.2 (Tax gross-up) to any Lender in excess of amounts payable to the other Lenders generally; or

		(iii)	any amount payable to any Lender by an Obligor established in France for tax purposes under a Finance Document is not, or will not be (when the relevant corporate income tax is calculated) treated as a deductible charge or expense for French tax purposes for that Obligor by reason of that amount being (i) paid or accrued to a Lender incorporated, domiciled, established or acting through a Facility Office situated in a Non-Cooperative Jurisdiction, or (ii) paid to an account opened in the name of or for the benefit of that Lender in a financial institution situated in a Non-Cooperative Jurisdiction,

then the Company may, on 5 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 24 (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 by the Company, and which is acceptable to the Agent (unless the Agent is an Impaired Agent, in which case the Lenders) (acting reasonably) and 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 Utilisations and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.

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		(b)	The replacement of a Lender pursuant to this Clause shall be subject to the following conditions:

		(i)	the Company shall have no right to replace the Agent or Security Agent;

		(ii)	neither the Agent nor the Lender shall have any obligation to the Company to find a Replacement Lender;

		(iii)	in the event of a replacement of a Non-Consenting Lender such replacement must take place no later than 40 Business Days after the date the Non-Consenting Lender notifies the Company 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 Company; and

		(iv)	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 Company or the Agent (at the request of the Company) 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; and

		(ii)	Lenders whose Commitments aggregate at least 60 per cent. of the aggregate Commitments (or, if the aggregate Commitments have been reduced to zero, aggregated at least 60 per cent. of the aggregate 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".

	38.7	Replacement of a Defaulting Lender

		(a)	The Company may, at any time a Lender has become and continues to be a Defaulting Lender, by giving 5 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 24 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement;

		(ii)	require such Lender to (and such Lender shall) transfer pursuant to Clause 24 (Changes to the Lenders) all (and not part only) of the undrawn Commitment of the Lender; or

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		(iii)	require such Lender to (and such Lender shall) transfer pursuant to Clause 24 (Changes to the Lenders) all (and not part only) of its rights and obligations in respect of the Facilities,

to a Lender or other bank, financial institution, trust, fund or other entity (a "Replacement Lender") selected by the Company, 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 Utilisations and all accrued interest, 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 38.5 shall be subject to the following conditions:

		(i)	the Company shall have no right to replace the Agent or Security Agent;

		(ii)	neither the Agent nor the Defaulting Lender shall have any obligation to the Company to find a Replacement Lender;

		(iii)	the transfer must take place no later than 5 Business Days after the notice referred to in paragraph(a) above; and

		(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.

	39.	CONFIDENTIALITY

	39.1	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 39.2 (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.

	39.2	Disclosure of Confidential Information

Any Finance Party may, subject (where applicable) to the provisions of article L.511-33 of the French Code monétaire et financier, disclose:

		(a)	to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its

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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;

		(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, Related Funds, 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, Related Funds, Representatives and professional advisers;

		(iii)	appointed by any Finance Party or by a person to whom sub paragraph (b)(i) or (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 (c) of Clause 26.16 (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 paragraph b(i) or (b)(ii) above;

		(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

		(vi)	to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 24.7 (Security over Lenders' rights);

		(vii)	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

		(viii)	who is a Party; or

		(ix)	with the consent of the Company;

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in each case, such Confidential Information as that Finance Party shall consider appropriate if:

		(A)	in relation to 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;

		(B)	in relation to 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;

		(C)	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) 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 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 Company and the relevant Finance Party; and

		(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 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.

	39.3	Entire agreement

Subject to the provisions of article L.511-33 of the French Code monétaire et financier, this Clause 39 constitutes the entire agreement between the Parties in

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relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

	39.4	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.

	39.5	Notification of disclosure

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Company:

		(a)	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 39.2 (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 39.

	39.6	Continuing obligations

The obligations in this Clause 39 (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 cease to be available; and

		(b)	the date on which such Finance Party otherwise ceases to be a Finance Party.

	40.	CONFIDENTIALITY OF FUNDING RATES AND REFERENCE BANK QUOTATIONS

	40.1	Confidentiality and disclosure

		(a)	The Agent and each Obligor agree to keep each Funding Rate (and, in the case of the Agent, each Reference Bank Quotation) confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (b), (c) and (d) below.

		(b)	The Agent may disclose:

		(i)	any Funding Rate (but not, for the avoidance of doubt, any Reference Bank Quotation) to the relevant Borrower pursuant to Clause 9.4 (Notification of rates of interest); and

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		(ii)	any Funding Rate or any Reference Bank Quotation to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that 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 Agent and the relevant Lender or Reference Bank, as the case may be.

		(c)	The Agent may disclose any Funding Rate or any Reference Bank Quotation, and each Obligor may disclose any Funding Rate, to:

		(i)	any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any person to whom that Funding Rate or Reference Bank Quotation is to be given pursuant to this paragraph (i) is informed in writing of its confidential nature and that it 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 that Funding Rate or Reference Bank Quotation or is otherwise bound by requirements of confidentiality in relation to it;

		(ii)	any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;

		(iii)	any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; and

		(iv)	any person with the consent of the relevant Lender or Reference Bank, as the case may be.

		(d)	The Agent's obligations in this Clause 40 relating to Reference Bank Quotations are without prejudice to its obligations to make notifications under

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Clause 9.4 (Notification of rates of interest) provided that (other than pursuant to paragraph (b)(i) above) the Agent shall not include the details of any individual Reference Bank Quotation as part of any such notification.

		(e)	Notwithstanding this Clause 40, Alliance Data Systems Inc. and each Obligor are entitled to disclose the Funding Rates if and to the extent required to comply with any applicable laws, treaties, regulations, financial reporting requirements, or directions from any governmental authority in any jurisdiction, in effect on the Fourth Effective Date and as they may change from time to time.

	40.2	Related obligations

		(a)	The Agent and each Obligor acknowledge that each Funding Rate (and, in the case of the Agent, each Reference Bank Quotation) is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Agent and each Obligor undertake not to use any Funding Rate or, in the case of the Agent, any Reference Bank Quotation for any unlawful purpose.

		(b)	The Agent and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender or Reference Bank, as the case may be:

		(i)	of the circumstances of any disclosure made pursuant to paragraph (c)(ii) of Clause 40.1 (Confidentiality and disclosure) 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

		(ii)	upon becoming aware that any information has been disclosed in breach of this Clause 40.

	41.	COUNTERPARTS

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

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SECTION 12

 GOVERNING LAW AND ENFORCEMENT

	42.	GOVERNING LAW

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by Dutch law.

	43.	ENFORCEMENT

	43.1	Jurisdiction

		(a)	The Courts (Rechtbank) of Amsterdam, The Netherlands, subject to ordinary appeal (hoger beroep) and final appeal (cassatie) shall have exclusive jurisdiction to hear and determine any suit, action or proceeding and to settle any disputes (respectively "Proceedings" and "Disputes") arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or the consequences of its nullity) and, for such purposes, each of the parties hereto irrevocably submits to the exclusive jurisdiction of such courts.

		(b)	This Clause 43.1 (Jurisdiction) is for the benefit of the Finance Parties only. As a result, and notwithstanding paragraph (a) of Clause 43.1, any Finance Party may take proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

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

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SIGNATURES

THE COMPANY

BRAND LOYALTY GROUP B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

THE BORROWERS

BRAND LOYALTY GROUP B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY HOLDING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY INTERNATIONAL B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY AMERICAS B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY EUROPE B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY SOURCING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY USA HOLDING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY SPECIAL PROMOTIONS B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY RUSSIA B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY ASIA B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

IM DIGITAL GROUP B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

ICEMOBIL AGENCY B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

MUSE AGENCY B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY GERMANY GMBH

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY ITALIA S.P.A.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY FRANCE

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

THE GUARANTORS

BRAND LOYALTY GROUP B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY HOLDING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY INTERNATIONAL B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY AMERICAS B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY EUROPE B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY SOURCING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY USA HOLDING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY SPECIAL PROMOTIONS B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY RUSSIA B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY ASIA B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

IM DIGITAL GROUP B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

ICEMOBIL AGENCY B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

MUSE AGENCY B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY WORLDWIDE GMBH

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY SWITZERLAND GMBH

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY GERMANY GMBH

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY ITALIA S.P.A.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY JAPAN KK

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

BRAND LOYALTY FRANCE

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

THE NEW OBLIGORS

BRAND LOYALTY CANADA HOLDING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

WORLD LICENSES B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

EDISON INTERNATIONAL CONCEPTS & AGENCIES B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

MAX HOLDING B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

MERISON GROEP B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

CALWOOD B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

MERISON RETAIL B.V.

By:      /s/ Pepijn Asselberghs

Pepijn Asselberghs

Address:

Fax:

THE AGENT

ING BANK N.V.

	
By:

	 	
/s/ H.R. van Ras

	 	 

/s/ G.B. Schinning

	 	 	
H.R. van Ras

	 	
G.B. Schinning

Address:

Fax:

Attention:

THE SECURITY AGENT

ING BANK N.V.

	
By:

	 	
/s/ H.R. van Ras

	 	
/s/ G.B. Schinning

	 	 	
H.R. van Ras

	 	
G.B. Schinning

Address:

Fax:

Attention:

THE EXISTING LENDERS AND NEW LENDERS

DEUTSCHE BANK LUXEMBOURG S.A.

	
By:

	 	 

/s/ N. Hibberd

	 	 

/s/ Lewalski

	 	 	
N. Hibberd

	 	
Lewalski

Address:

Fax:

DEUTSCHE BANK AG, AMSTERDAM BRANCH

	
By:

	 	 

/s/ J.P.F. Nouws

	 	
/s/ Matijs van Middelaar

	 	 	
J.P.F. Nouws

	 	
Matijs van Middelaar

Address:

Fax:

ING BANK N.V.

	
By:

	 	 

/s/ A. Mansour

		 

/s/ E.W.Th. Hollemans

	 	 	
A. Mansour

	 	
E.W.Th. Hollemans

	 	 	
Managing Director

	 	
Director

Address:

Fax:

COÖPERATIEVE RABOBANK U.A.

	
By:

	 	 

/s/ J.A.P. van der Heiden

	 	 

/s/ D. Martina

	 	 	
J.A.P. van der Heiden

	 	
D. Martina

	 	 	
Executive Director

	 	
Director

	 	 	
Proxy AB

	 	
Proxy B

Address:

Fax:

NIBC BANK DEUTSCHLAND AG

	
By:

		 

/s/ [Illegible]

		 

/s/ [Illegible]

Address:

Fax:

THE ARRANGERS

DEUTSCHE BANK AG, AMSTERDAM BRANCH

	
By:

		 

/s/ J.P.F. Nouws

	 	 

/s/ Matijs van Middelaar

	 	 	
J.P.F. Nouws

	 	
Matijs van Middelaar

Address:

Fax:

ING BANK N.V.

	
By:

	 	 

/s/ Danielle van Rieven

	 	 

/s/ E.W.Th. Hollemans

	 	 	
Danielle van Rieven

	 	
E.W.Th. Hollemans

	 	 	
Head of TMT & Services

	 	
Director

	 	 	
Corporate Clients & Products

	 	 

Address:

Fax:

COÖPERATIEVE RABOBANK U.A.

	
By:

		 

/s/ J.A.P. van der Heiden

	 	 

/s/ D. Martina

	 	 	
J.A.P. van der Heiden

	 	
D. Martina

	 	 	
Executive Director

	 	
Director

	 	 	
Proxy AB

	 	
Proxy B

Address:

Fax:

NIBC BANK N.V.

	
By:

	 	 

/s/ [Illegible]

	 	 

/s/ [Illegible]

	 	 	
Associate Director

	 	
Managing Director

Address:

Fax:

THE EXISTING HEDGE COUNTERPARTIES

DEUTSCHE BANK A.G.

	
By:

	 	 

/s/ [Illegible]

	 	 

/s/ J.P.F. Nouws

	 	 	 	 	
J.P.F. Nouws

Address:

Fax:

ING BANK N.V.

	
By:

	 	 

/s/ Danielle van Rieven

	 	 

/s/ E.W.Th. Hollemans

	 	 	
Danielle van Rieven

	 	
E.W.Th. Hollemans

	 	 	
Head of TMT & Services

	 	
Director

	 	 	
Corporate Clients & Products

	 	 

Address:

Fax:

THE NEW HEDGE COUNTERPARTIES

COÖPERATIEVE RABOBANK U.A.

	
By:

	 	 

/s/ J.A.P. van der Heiden

	 	 

/s/ D. Martina

	 	 	
J.A.P. van der Heiden

	 	
D. Martina

	 	 	
Executive Director

	 	
Director

	 	 	
Proxy AB

	 	
Proxy B

Address:

Fax:

NIBC BANK N.V.

	
By:

	 	 

/s/ [Illegible]

	 	 

/s/ [Illegible]

	 	 	
Associate Director

	 	
Managing Director

Address:

Fax:Exhibit 10.1

 

EXECUTION VERSION

 

AMENDED AND RESTATED INTERIM SPONSORS AGREEMENT

 

AMENDED AND RESTATED INTERIM SPONSORS AGREEMENT (this “Agreement”), dated as of June 14, 2016, by and among Atlas Power, LLC, a Delaware limited liability company (the “Buyer”), Dynegy Inc., a Delaware corporation (“DYN”), and Energy Capital Partners III, LP, a Delaware limited partnership, Energy Capital Partners III-A, LP, a Delaware limited partnership, Energy Capital Partners III-B, LP, a Delaware limited partnership, Energy Capital Partners III-C, LP, a Delaware limited partnership, and Energy Capital Partners III-D, LP, a Delaware limited partnership (collectively, “ECP”), and, solely for purposes of Sections 1, 2.20 and 3, Terawatt Holdings, LP, a Delaware limited partnership (“Terawatt”). Each of ECP and DYN shall be referred to herein as a “Sponsor” and, collectively, as the “Sponsors”.

 

RECITALS

 

WHEREAS, pursuant to that certain Stock Purchase Agreement, dated as of February 24, 2016 (the “Effective Date”) (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), by and among Atlas Power Finance, LLC, a wholly-owned Subsidiary of the Buyer (the “Buyer Subsidiary”), GDF SUEZ Energy North America, Inc., a Delaware corporation (the “Company”), and International Power, S.A., a “societe anonyme” under the laws of Belgium (the “Seller”), the Seller has committed, subject to the conditions set forth therein, to sell all of the Shares (as defined in the Purchase Agreement) to the Buyer Subsidiary;

 

WHEREAS, on the Effective Date, (a) ECP, certain Affiliated investment funds of ECP, the Buyer and the Buyer Subsidiary executed an equity commitment letter (the “ECP Equity Commitment Letter”), in which ECP (and such investment funds) committed, subject to the conditions set forth therein, to contribute (directly or through one or more Affiliated entities) to the Buyer an aggregate amount up to $814.75 million (it being understood and agreed that any funds contributed under the ECP Equity Commitment Letter in excess of $414.75 million shall be in the form of a loan substantially on the terms attached hereto as Exhibit C (other than any funds contributed pursuant to Section 2.15, as contemplated by the last sentence of Section 2.15.1, the “Bridge Portion)) solely for the purpose of funding, and to the extent necessary to fund, a portion of the Buyer Subsidiary’s obligations under Sections 3.2(c) and 4.2(b)(i) of the Purchase Agreement, and related costs and expenses, and (b) ECP executed a limited guarantee in favor of the Company, in which ECP committed to guarantee certain of the obligations of the Buyer Subsidiary pursuant to the Purchase Agreement (the “ECP Guarantee”);

 

WHEREAS, DYN, on the Effective Date, executed (a) an equity commitment letter (the “DYN Equity Commitment Letter” and, together with the ECP Equity Commitment Letter, the “Equity Commitment Letters”), in which DYN committed, subject to the conditions set forth therein, to contribute (directly or through one or more Affiliated entities) to the Buyer an aggregate amount up to $770.25 million solely for the purpose of funding, and to the extent necessary to fund, a portion of the Buyer Subsidiary’s obligations under Sections 3.2(c) and 4.2(b)(i) of the Purchase Agreement, and related costs and expenses, and (b) a limited guarantee in favor of the Company, in which DYN committed to guarantee certain of the obligations of the

 

 

Buyer Subsidiary pursuant to the Purchase Agreement (the “DYN Guarantee” and, together with the ECP Guaranty, the “Guarantees”);

 

WHEREAS, it is contemplated that DYN will consummate (i) a debt financing, on terms and conditions reasonably satisfactory to DYN (the “Alternative Debt Financing”), and (ii) a registered offering of tangible equity units of DYN, on terms and conditions reasonably satisfactory to DYN (the “Alternative Equity Financing” and, together with the Alternative Debt Financing, the “Alternative Financings”);

 

WHEREAS, each of DYN and Terawatt, on the Effective Date, executed a Stock Purchase Agreement related to the purchase of certain shares of common stock of DYN by Terawatt (the “Stock Purchase Agreement”), with the proceeds from such purchase to be contributed by DYN to the Buyer in accordance with this Agreement;

 

WHEREAS, the Buyer, DYN and ECP entered into that certain Interim Sponsors Agreement, dated as of the Effective Date (the “Interim Sponsors Agreement”), that governs the actions and the relationship among the Sponsors and the Buyer with respect to the Purchase Agreement, the Equity Commitment Letters, the Guarantees, and the Debt Commitment Letter (as defined in the Purchase Agreement) (each, a “Transaction Agreement” and collectively, the “Transaction Agreements”), and the transactions contemplated hereby and thereby or to be undertaken in connection therewith; and

 

WHEREAS, the Buyer, DYN, ECP and Terawatt desire to enter into this Agreement to amend and restate the Interim Sponsors Agreement in its entirety as set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

1.             EFFECTIVENESS; DEFINITIONS.

 

1.1          Effectiveness. This Agreement shall be deemed effective as of the Effective Date and, except as specifically provided herein, shall terminate upon the earlier of, except with respect to Sections 2.4, 2.6, 2.7, 2.8, 2.9, 2.13, 2.15, 2.16 (with respect to Section 2.16, solely if the Closing occurs), 2.17 (with respect to Section 2.17, solely if the Closing occurs), 2.19, 2.20, 2.21 and 3, the Closing and the termination of the Purchase Agreement; provided that any liability for breach of, or failure to comply with, any of the provisions of this Agreement prior to such termination shall survive such termination.

 

1.2          Definitions.

 

1.2.1       “Advisor” means any advisor, consultant or other Person engaged on behalf of the Sponsors or the Buyer for the purpose of conducting due diligence with respect to the Company or negotiating the terms and conditions of the Purchase Agreement, the Equity Commitment Letters, the Guarantees and the Debt Commitment Letter, with the Seller or the Company, including but not limited to Skadden, Arps, Slate,

 

2

 

Meagher & Flom LLP, Latham & Watkins LLP and White & Case LLP. For the avoidance of doubt, any fees owed to advisors, consultants or other Persons for time or services expended negotiating the arrangements between the Sponsors shall not be fees or expenses of an Advisor for any purpose of this Agreement.

 

1.2.2       “Affiliate” means, with respect to a specified Person, any other Person, whether now in existence or hereafter created, directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, “controlling,” “controlled by” and “under common control with”) means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. For the avoidance of doubt, for purposes of this Agreement, the Company and its Subsidiaries shall not be deemed Affiliates of any party hereto and ECP and DYN shall not be deemed Affiliates of each other.

 

1.2.3       “Alternative Financing Closings” means (a) DYN having entered into a Third Amendment to Credit Agreement (the “Incremental Amendment”) among DYN, Morgan Stanley Senior Funding, Inc., BNP Paribas, Credit Agricole Corporate and Investment Bank, SunTrust Bank, Credit Suisse AG, Cayman Islands Branch, as the administrative agent, and the other parties thereto with respect to the Alternative Debt Financing, (b) DYN having received the proceeds of the Alternative Equity Financing and (c) the aggregate amount of the committed financing under the Incremental Amendment and the proceeds from the Alternative Equity Financing being equal to or greater than $2,375,000,000; provided that the amount of the committed financing under the Incremental Amendment is equal to or greater than $1,850,000,000.

 

1.2.4       “Bank of Tokyo Mitsubishi” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.

 

1.2.5       “Commitment” means, with respect to each Sponsor, the amount of the Equity Commitment (as defined and set forth in such Sponsor’s Equity Commitment Letter, as may be increased or decreased in accordance with Section 2.15.

 

1.2.6       “Commitment Percentage” means, with respect to ECP, 35%, and with respect to DYN, 65%, in each case as may be increased or decreased in accordance with Section 2.15.

 

1.2.7       “CS” means Credit Suisse Securities (USA) LLC, an Advisor to DYN.

 

1.2.8       “DB” means Deutsche Bank Securities Inc., an Advisor to DYN.

 

1.2.9       “DB Side Letter” means that certain Side Letter, dated as of the Effective Date, by and between DYN and DB.

 

1.2.10     “DYN Debt Exclusions” means (a) the Credit Agreement, dated as of April 23, 2013, as amended (the “Credit Agreement”), among DYN, as borrower, and

 

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Credit Suisse AG, Cayman Islands Branch, as administrative agent, and the lenders and other parties thereto and the Guarantee and Collateral Agreement and Intercreditor and Trust Agreement, in each case, entered into in connection therewith and dated as of April 23, 2013, as amended, among DYN, Credit Suisse AG, Cayman Islands Branch, as collateral trustee, the subsidiary guarantors party thereto from time to time and the lenders and other parties thereto, (b) the Letter of Credit Reimbursement Agreement, dated as of September 18, 2014, as amended, among DYN, Macquarie Bank Limited and Macquarie Energy LLC, (c) the letter of credit facility to be entered into by DYN with Goldman Sachs Bank or one or more of its affiliates in connection with the transactions contemplated by the Purchase Agreement, (d) any indebtedness existing as of the date hereof pursuant to any indentures of DYN and/or its Subsidiaries, and any notes issued pursuant thereto, by DYN or any of its Subsidiaries, (e) any indebtedness issued pursuant to any indentures of DYN and/or its Subsidiaries in connection with the transactions contemplated by the Purchase Agreement, (f) any indebtedness issued pursuant to a revolving credit facility or letter of credit facility entered into after the date of this Agreement not to exceed $45,000,000 in the aggregate, (g) an increase in DYN’s revolving credit facility not to exceed $75,000,000 in the aggregate, and (h) other ordinary course working capital or liquidity facilities of DYN and its Subsidiaries not to exceed $100,000,000 in the aggregate.

 

1.2.11     “ENGIE Consent” means the applicable parties to the Letter Agreement having executed and delivered the annexes to the Letter Agreement in accordance with the terms of the Letter Agreement.

 

1.2.12     “Financing Date” means July 1, 2016.

 

1.2.13     “First Buyout Condition” means the (a) occurrence of DYN’s commencement of the Alternative Financings on or prior to June 16, 2016, (b) occurrence of the Alternative Financing Closings on or prior to the Financing Date and (c) receipt of the ENGIE Consent within two (2) Business Days after the occurrence of the Alternative Financing Closings.

 

1.2.14     “GS” means Goldman, Sachs & Co., an Advisor to DYN.

 

1.2.15     “GS Side Letter” means that certain Side Letter, entered into on or about the Effective Date, by and between DYN and GS, or any other agreement, whether written or oral, to pay GS a side fee.

 

1.2.16     “Lazard” means Lazard Freres & Co. LLC, an Advisor to DYN.

 

1.2.17     “Letter Agreement” means that certain letter agreement, dated as of the date hereof, by and among DYN, the Buyer, ECP, Seller and the Company.

 

1.2.18     “LLC Agreement Form” means the form of Amended and Restated Limited Liability Company Agreement attached as Exhibit A hereto.

 

1.2.19     “Morgan Stanley” means Morgan Stanley Senior Funding, Inc.

 

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1.2.20     “MS Side Letter” that certain Side Letter, dated as of the Effective Date, by and between the Buyer Subsidiary and MS.

 

1.2.21     “PIPE Closing” has the meaning given to the term “Closing” in the Stock Purchase Agreement.

 

1.2.22     “RBC” means the Royal Bank of Canada, an Advisor to DYN.

 

1.2.23     “Second Buyout Condition” means the occurrence of the Closing or the termination of the Purchase Agreement in accordance with Section 4.3(d) or Section 4.3(f) thereof.

 

1.2.24     “Side Letters” means, collectively, the DB Side Letter and the GS Side Letter.

 

1.2.25     “Transfer” means any sale, transfer, conveyance, assignment, pledge, encumbrance, hypothecation or other disposition (other than any sale or transfer to an Affiliate of the transferring party, including, with respect to ECP, an entity controlled by ECP and formed for the purpose of effecting an investment in the Buyer by certain limited partners of ECP and Affiliated investment funds of ECP).

 

Capitalized terms used but not defined herein shall have the meanings assigned to them in the Purchase Agreement.

 

2.             AGREEMENTS AMONG THE PARTIES.

 

2.1          Equity Commitments.

 

2.1.1       Each Sponsor hereby agrees to fund or cause to be funded the Commitment under its Equity Commitment Letter, on the terms and subject to the conditions and limitations thereof. Each Sponsor hereby affirms and agrees that the Buyer is entitled to and shall enforce the provisions of the Equity Commitment Letters in accordance with this Agreement and the terms of each such Equity Commitment Letter upon the direction of the Company if the Company is permitted to cause the Buyer to enforce the provisions of such Equity Commitment Letter under the specific circumstances set forth therein and Section 11.11 of the Purchase Agreement and does in fact so cause the Buyer to enforce such provisions. Neither the Buyer nor the Sponsors shall attempt to enforce the funding of any Commitment under any Equity Commitment Letter until the applicable conditions set forth in the foregoing sentence have been satisfied and, if such conditions are satisfied, DYN shall be entitled to cause the Buyer to enforce the provisions of the ECP Equity Commitment Letter in the event ECP has not funded thereunder and ECP shall be entitled to cause the Buyer to enforce the provisions of the DYN Equity Commitment Letter in the event DYN has not funded thereunder. This Section 2.1.1 shall terminate upon the occurrence of the First Buyout Condition.

 

2.1.2       In the event that the PIPE Closing occurs concurrently with the Closing, DYN hereby agrees to use the aggregate Purchase Price (as defined in the Stock Purchase Agreement), less related costs and expenses, to fund a portion of the Commitment under

 

5

 

the DYN Equity Commitment Letter. In the event that the PIPE Closing occurs following the Closing, each Sponsor and the Buyer shall take the actions contemplated by Section 2.15.2. In the event that the parties under the Stock Purchase Agreement are required to consummate the PIPE Closing in accordance with the Stock Purchase Agreement, ECP shall cause Terawatt to pay the Purchase Price (as defined in the Stock Purchase Agreement) pursuant to the Stock Purchase Agreement and, to the extent Terawatt does not have the requisite funds to pay all of the Purchase Price (as defined in the Stock Purchase Agreement), ECP shall provide such requisite funds to Terawatt.

 

2.1.3       If the First Buyout Condition fails to occur, notwithstanding anything to the contrary in this Agreement and the Commitment Letters, the Sponsors hereby agree that in the event that the Buyer does not require the full amount of the Sponsors’ aggregate Commitment to fulfill its obligations under the Purchase Agreement (such unused amount, the “Excess Amount”), all or a portion of any such Excess Amount shall nevertheless be contributed to the Buyer in an amount necessary to satisfy the minimum cash balance of the Buyer required under the Debt Commitment Letter, and thereafter, the Commitment of each Sponsor shall be reduced as follows: first, ECP’s Commitment shall be reduced by up to the Bridge Portion and then, if the Excess Amount exceeds the Bridge Portion, each Sponsor’s Commitment shall be reduced by its pro rata portion (in accordance with its respective Commitment Percentage).

 

2.1.4       If the First Buyout Condition fails to occur, in exchange for each Sponsor’s Equity Commitment, at the Closing, upon execution of an Amended and Restated Limited Liability Company Agreement of the Buyer substantially in the form of the LLC Agreement Form, the Buyer shall issue, directly or indirectly, to each Sponsor an additional number of limited liability company interests in the Buyer so that each such Sponsor shall hold, directly or indirectly, a number of limited liability company interests in the Buyer equal to such Sponsor’s Commitment Percentage of the outstanding limited liability company interests in the Buyer (after giving effect to such issuances).

 

2.2          Decisions; Actions.

 

2.2.1       Except as otherwise set forth in this Section 2.2, the parties hereto hereby agree that the Buyer (on behalf of itself and the Buyer Subsidiary) shall be entitled to take or cause to be taken any and all actions required or permitted to be taken by the Buyer (on behalf of itself and the Buyer Subsidiary), in each case, in its sole discretion, regarding the Purchase Agreement, the Related Documents and the transactions contemplated thereby, including in order to comply with its obligations under the Purchase Agreement and the Related Documents, satisfying the conditions to the Closing set forth in Article IX of the Purchase Agreement and exercising the Buyer’s (and the Buyer Subsidiary’s) rights under the Purchase Agreement or the Related Documents.

 

2.2.2       The parties hereto hereby agree that the Buyer shall be controlled by DYN as managing member pursuant to the Limited Liability Company Agreement of the Buyer, dated as of the Effective Date; provided that the Buyer shall not, and shall cause the Buyer Subsidiary not to, take or cause to be taken any material actions without the

 

6

 

prior written consent of ECP; provided, further, that, for the avoidance of doubt, the following shall be considered material actions:

 

(1)                                 amending, modifying or terminating the Purchase Agreement or any Related Document;

 

(2)                                 waiving the Seller’s or the Company’s compliance with any of their respective obligations under the Purchase Agreement or the Related Documents or granting any consent requested by the Seller or the Company pursuant to the Purchase Agreement or the Related Documents;

 

(3)                                 other than as contemplated by Section 2.11, paying any consideration to obtain, or granting any other benefit or concession to obtain, or in each case to facilitate the obtaining of, any consent or approval of any Governmental Body or other Person with respect to the transactions contemplated by the Purchase Agreement;

 

(4)                                 (i) determining that the conditions to the Closing set forth in Sections 9.1(a)—(g) of the Purchase Agreement have been satisfied or (ii) determining to waive any such condition or making any claim (in writing) that a Material Adverse Effect has occurred;

 

(5)                                 making any claim (in writing) that Seller or the Company is in breach of, or default under, the Purchase Agreement or any Related Document, or instituting any proceeding or action, or threatening (in writing) to institute any proceeding or action with respect to any such breach or default;

 

(6)                                 making any determination with respect to the Debt Financing contemplated in Section 2.10; and

 

(7)                                 making any filing with a Governmental Body required under Section 8.4 of the Purchase Agreement;

 

provided, further, that the obligations of the Buyer and the Buyer Subsidiary pursuant to clauses 2.2.2(2), 2.2.2(3), 2.2.2(4)(ii), 2.2.2(6) and 2.2.2(7) above shall terminate upon the occurrence of the First Buyout Condition; provided, further, that, from and after the occurrence of the First Buyout Condition, Buyer and Buyer Subsidiary shall have no obligation to obtain ECP’s prior written consent with respect to any other material action unless such material action would adversely affect ECP’s rights under this Agreement.

 

2.2.3       Notwithstanding the foregoing, if the Buyer requests in writing that ECP approve any decision or action set forth in Section 2.2.1 or Section 2.10 and ECP does not notify the Buyer in writing of its disapproval of such decision or action by 5:00 p.m. Houston, Texas time on the third (3rd) Business Day following the date of such request,

 

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ECP shall be deemed to have irrevocably consented to and approved of such decision or action for all purposes of this Agreement.

 

2.3          Pre-Closing Matters. Each Sponsor shall use its Commercially Reasonable Efforts to, and the parties hereto shall reasonably cooperate with one another to, (a) take all actions necessary or appropriate to consummate the transactions contemplated by the Purchase Agreement, (b) cause the fulfillment at the earliest practicable date of all of the conditions to their or the Buyer Subsidiary’s respective obligations to consummate the transactions contemplated by the Purchase Agreement and (c) execute and cause to be delivered to each other party hereto or thereto such instruments and other documents, and shall take such other actions, as such other party may reasonably request (prior to, at or after the Closing) for the purposes of carrying out or evidencing any of the transactions contemplated by the Purchase Agreement. This Section 2.3 shall terminate upon the occurrence of the First Buyout Condition; provided, however, that Buyer Subsidiary shall, and DYN shall cause it to, continue to comply with its obligations under Sections 8.4 and 8.5 of the Purchase Agreement.

 

2.4          Defaulting Sponsor.

 

2.4.1       In the event that (a) the Buyer has determined that the Closing Conditions have been satisfied or waived and (i) ECP (A) fails to fund (or provides written notice to DYN of its intent not to fund) its portion of the Closing Date Purchase Price in accordance with the terms of the ECP Equity Commitment Letter, or (B) fails to effect the PIPE Closing (assuming all conditions to ECP’s obligations to effect the PIPE Closing been satisfied or waived) or (ii) DYN (A) fails to fund (or provides written notice to ECP of its intent not to fund) its portion of the Closing Date Purchase Price in accordance with the terms of the DYN Equity Commitment Letter or (B) fails to effect the PIPE Closing (assuming all conditions to DYN’s obligations to effect the PIPE Closing have been satisfied or waived), or (b) any Sponsor takes, or causes the Buyer to take, or fails to take, any material action, or makes, or fails to make, any material decision, in each case that causes the Buyer, the Buyer Subsidiary or any Sponsor to be in material breach of, or material default under, any Transaction Agreement or the Stock Purchase Agreement, after written notice and reasonable opportunity to cure to the extent that such breach or default is curable and the applicable Transaction Agreement allows for such opportunity for cure (the applicable Sponsor, in the case of clause (a) or clause (b) above, the “Defaulting Sponsor”), then in each case in clauses (a) and (b) above, the other Sponsor (the “Non-Defaulting Sponsor”) shall have the right to terminate with immediate effect the Defaulting Sponsor’s participation in the transactions contemplated by the Purchase Agreement and the Stock Purchase Agreement and fund (or cause a third party to fund) any unpaid amount of the Defaulting Sponsor’s portion of the Closing Date Purchase Price and the Defaulting Sponsor shall immediately and irrevocably transfer to the Non-Defaulting Sponsor (or such third party, as the case may be) its equity interests in the Buyer in consideration therefor (at a cost equal to the par value per share of such equity interests).

 

2.4.2       Any Defaulting Sponsor hereby makes, constitutes and appoints the Non-Defaulting Sponsor as its true and lawful attorney-in-fact for it and in its name, place and stead to sign, execute, certify, acknowledge, file and record any instrument that is now or

 

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may hereafter be deemed necessary by a Non-Defaulting Sponsor in its reasonable discretion to carry out fully any transfer contemplated by Section 2.4 (such power of attorney granted is a special power of attorney, coupled with an interest, and is irrevocable, and will survive the bankruptcy, insolvency, dissolution or cessation of existence of the Defaulting Sponsor). The termination of any Defaulting Sponsor’s participation in the transactions contemplated by the Purchase Agreement and the funding of the Defaulting Sponsor’s portion of the Closing Date Purchase Price in the manner set forth above shall not affect, alter or impair the Buyer’s, the Buyer Subsidiary’s, the Non-Defaulting Sponsor’s, the Company’s or the Seller’s rights or remedies against the Defaulting Sponsor under this Agreement (including, without limitation, Sections 2.1.1 and 2.8) or the Transaction Agreements, with respect to the Defaulting Sponsor’s failure to fund or any other action or inaction. Nothing in Section 2.4 shall obligate or require the Non-Defaulting Sponsor to exercise its right to terminate the Defaulting Sponsor’s participation in the transactions contemplated by the Purchase Agreement or fund the Defaulting Sponsor’s portion of the Closing Date Purchase Price.

 

2.4.3       Notwithstanding anything to the contrary contained in this Agreement, Sections 2.4.1 and 2.4.2 shall terminate upon the occurrence of the First Buyout Condition.

 

2.5          LLC Agreement and Service Agreement.

 

2.5.1       If the First Buyout Condition fails to occur, each Sponsor agrees, on the Closing Date, to enter into an Amended and Restated Limited Liability Company Agreement of the Buyer substantially in the form of the LLC Agreement Form.

 

2.5.2       Each Sponsor agrees to negotiate in good faith the terms of a service agreement relating to the provision of certain services by DYN to the Buyer and its Subsidiaries following the Closing in accordance with the terms set forth on Exhibit B in order to execute such service agreement on the Closing Date. This Section 2.5.2 shall terminate upon the occurrence of the First Buyout Condition.

 

2.6          Company Payments. Until such time as the Closing occurs, each Sponsor agrees that any damages, costs, fees, expenses or other amounts to be paid by the Seller or the Company to the Sponsors or the Buyer under or with respect to any Transaction Agreement to which the Buyer (or the Buyer Subsidiary) is a party or the transactions contemplated thereby (collectively, the “Company Payments”) shall (a) first be used to pay the fees and expenses of the Advisors in their capacity as such (other than Lazard, RBC, DB, GS and CS) and (b) thereafter be paid to the Sponsors in proportion to their respective Commitment Percentages at the time of the event that triggered payment of any of the Company Payments (provided, that upon the occurrence of the First Buyout Condition, ECP shall have no right to any payment pursuant to this clause (b)); provided, however, that, until the occurrence of the First Buyout Condition, in the event a Sponsor becomes a Defaulting Sponsor, (x) such Defaulting Sponsor hereby waives all rights and shall have no right or claim to all or any portion of the Company Payments and (y) in the event any Company Payment is or has been paid to the Defaulting Sponsor by the Company, the Defaulting Sponsor shall immediately remit all such amounts to the Non-Defaulting Sponsors.

 

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2.7          Expenses.

 

2.7.1       In the event the Purchase Agreement is not terminated and the Closing occurs, the Company and/or the Buyer shall bear and pay any amounts due to each Advisor and all fees and expenses payable to the providers of the Debt Financing (including the fees and expenses of RBC, DB, GS, Morgan Stanley (including pursuant to the MS Side Letter) and Bank of Tokyo Mitsubishi related to the Debt Financing other than fees and expenses of (i) DB or GS pursuant to the Side Letters or (ii) Lazard, CS and RBC (to the extent not related to the Debt Financing)).

 

2.7.2       In the event the Purchase Agreement is terminated, after the application pursuant to Section 2.6 of any Company Payments, each Sponsor shall bear and pay its proportionate share (based on its respective Commitment Percentage) of any amounts due to each Advisor (including the fees and expenses of RBC, DB, GS, Morgan Stanley (including pursuant to the MS Side Letter) and Bank of Tokyo Mitsubishi related to the Debt Financing other than fees and expenses of (i) DB or GS pursuant to the Side Letters or (ii) Lazard, CS and RBC (to the extent not related to the Debt Financing)), solely in its capacity as an Advisor.

 

2.7.3       All fees and expenses of Lazard, RBC and CS related to the Purchase Agreement or the transactions contemplated thereby (but not including any such fees and expenses to the extent related to the Debt Financing) and all fees and expenses of DB or GS pursuant to the Side Letters, notwithstanding each of Lazard’s, RBC’s, DB’s, GS’s and CS’s status as an Advisor, shall be borne entirely by DYN and not by the Buyer, the Buyer Subsidiary, the Company or ECP.

 

2.7.4       Notwithstanding Sections 2.7.1 and 2.7.2, upon the occurrence of the First Buyout Condition and within 30 days of receipt of a written invoice from DYN, ECP shall pay to DYN 35% of any amounts covered by Section 2.7.1 (but only with respect to such amounts incurred prior to the occurence of the First Buyout Condition), excluding, for the avoidance of doubt, any such amounts related to the Alternative Financings, and ECP shall have no further obligations under this Section 2.7.

 

2.8          The Buyer and Defaulting Sponsor Indemnification. Notwithstanding anything to the contrary in this Agreement, in the event a Sponsor becomes a Defaulting Sponsor (or otherwise breaches any of its obligations under any Transaction Agreement to which it is a party) and the Non-Defaulting Sponsor is obligated to make any payment in respect of any resulting claim or liability under any Transaction Agreement, such Defaulting Sponsor will (i) be solely responsible for such payment and (ii) defend, indemnify and hold harmless the Non-Defaulting Sponsor, the Buyer and the Buyer Subsidiary from and against, and reimburse the Non-Defaulting Sponsor and the Buyer and the Buyer Subsidiary for, all claims, actions, proceedings, liabilities, obligations, damages, losses, harms, charges, costs and expenses of whatever nature and however arising from such breach or any action or inaction of the Defaulting Sponsor that the Non-Defaulting Sponsor or the Buyer or the Buyer Subsidiary may suffer or incur, or become subject to, under or arising from the Purchase Agreement or any of the other Transaction Agreements or in respect thereof.

 

2.9          Information Supplied; Indemnification. From and after the Effective Date, each

 

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Sponsor (the “Indemnifying Sponsor”) will defend, indemnify and hold harmless the other Sponsor and the Buyer (each, an “Indemnified Party” and collectively, the “Indemnified Parties”) from and against, and reimburse the Indemnified Parties for, all claims, actions, proceedings, liabilities, obligations, damages, losses, charges, costs or expenses of whatever nature and however arising that any Indemnified Party may suffer or incur, or become subject to, as a result of any information that (a) contains an untrue statement of a material fact or omits to state any material fact required to be stated therein in order to make such statement, in light of the circumstances in which it was made, not misleading and (b) is supplied by such Sponsor for inclusion in the filings or notifications with Governmental Bodies required to be made under the Purchase Agreement.

 

2.10        Debt Financing. The Sponsors shall cause the Buyer (and the Buyer shall cause the Buyer Subsidiary) to comply with the Buyer Subsidiary’s obligations under the Purchase Agreement to enter into and borrow under definitive agreements relating to the Debt Financing; provided that, without ECP’s prior written consent, the Buyer and the Buyer Subsidiary shall not make any determination to take any action, or determination to not act, with respect to the Debt Commitment Letter or with respect to any agreement on additional or modified terms related to the Debt Financing (subject to the terms of the Purchase Agreement). In addition, DYN shall permit, and shall cause the Buyer and the Buyer Subsidiary to permit, ECP to participate in (a) all “road shows”, lender meetings and similar meetings with respect to obtaining the Debt Financing and (b) the preparation and negotiation of all material documents necessary to consummate the Debt Financing. This Section 2.10 shall terminate upon the occurrence of the First Buyout Condition.

 

2.11        Regulatory Matters. Each Sponsor shall, and shall cause its Affiliates to, (a) make or assist the Buyer and the Buyer Subsidiary in making, as applicable, all filings and notifications with Governmental Bodies and (b) use its reasonable best efforts to obtain or assist the Buyer and the Buyer Subsidiary in obtaining, as applicable, all necessary consents, authorizations and approvals of any Governmental Body that, in each case of clause (a) or (b) above, are necessary to consummate the transactions to be effected pursuant to the Stock Purchase Agreement or Purchase Agreement. Without limiting the generality of the foregoing, each Sponsor shall, and shall cause its Affiliates to, (i) supply and provide all information (which information shall be accurate in all material respects) to the other Sponsors or the Buyer, as applicable, that is reasonably required in connection with any such filings or notifications or in connection with obtaining any such consents, authorizations or approvals and (ii) cooperate with the other Sponsor and the Buyer in responding to any action taken by any Governmental Body in connection with or in response to any such filings or notifications or any such consents, authorizations and approvals. In connection with and without limiting the foregoing, each Sponsor shall, and shall cause its Affiliates to, take promptly any and all steps necessary to avoid or eliminate each and every impediment under any Regulatory Laws that may be asserted by any federal, state and local and non-United States antitrust or competition authority, so as to enable the parties to the Purchase Agreement to effect the Closing and the PIPE Closing as expeditiously as possible; provided that ECP shall not be required to effect or commit to effect, by consent decree, hold separate orders, trust or otherwise (A) the sale or disposition of any of the assets or businesses of ECP or its Affiliates or (B) any other restriction, limitation or encumbrance on businesses or assets of ECP or its Affiliates (and in no event shall ECP be deemed to be a Defaulting Sponsor by failing to effect, or failing to commit to effect, any such

 

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action contemplated by clause (A) or clause (B) above). To the extent that any consent decree, hold separate orders, holding in trust of any of assets or business or any other restriction, limitation or encumbrance on any businesses or assets other than any sale or disposition of any businesses or assets of any Person (collectively, but expressly excluding any sale or disposition of any businesses or assets of any Person, the “Mitigation Actions”) is necessary to avoid or eliminate each and every impediment under any Regulatory Laws and is necessary to consummate the Closing under the Purchase Agreement or the PIPE Closing, DYN shall (1) first propose to the applicable authority that such Mitigation Actions be taken by the Company Group or by DYN and its Subsidiaries or both, (2) determine (which determination will be made by DYN in an economically rational manner and assuming that it indirectly owns all of the equity interests of the Company Group) which businesses or assets of the Company Group or DYN or its Subsidiaries, as applicable, will be subject to such Mitigation Actions and which Mitigation Actions will be taken (provided such Mitigation Actions avoid, mitigate or eliminate such impediments) and (3) cause the Company or it or any such DYN Subsidiary, as applicable, to take such Mitigation Action following the Closing under the Purchase Agreement. To the extent that sales or dispositions of assets or businesses of the Company Group are necessary to avoid or eliminate each and every impediment under any Regulatory Laws and are necessary to consummate the Closing under the Purchase Agreement or the PIPE Closing following the taking of the actions contemplated by the two preceding sentences, DYN shall (x) propose to the applicable authority that sale or dispositions of businesses or assets of the Company Group be undertaken by the Company Group, (y) determine (which determination will be made by DYN in an economically rational manner and assuming that it indirectly owns all of the equity interests of the Company Group) which businesses or assets of the Company Group will be sold or disposed (provided such sales or dispositions avoid, mitigate or eliminate such impediments) and (z) cause the Company to undertake such sales or dispositions following the Closing under the Purchase Agreement.

 

2.12        Exclusivity. Each Sponsor agrees that, for so long as this Agreement shall remain in effect, except for the Alternative Financings, it shall not become Affiliated with, enter into discussions with, or make an equity investment with, any other Person in relation to any transaction involving the Seller or the Company that could reasonably be expected to be competitive to, or interfere with, the negotiation or consummation of the transactions contemplated by the Purchase Agreement. This Section 2.12 shall terminate upon the occurrence of the First Buyout Condition.

 

2.13        Cooperation. Each Sponsor shall comply with, and be bound by, the Buyer Subsidiary’s obligations under Section 8.8 of the Purchase Agreement as if such Sponsor was the Buyer Subsidiary under Purchase Agreement. Each Sponsor agrees to cooperate with each other Sponsor reasonably and in good faith with respect to the publication of any press release or public announcement or other communication with any news media in respect of the Transaction Agreements or the transactions contemplated thereby. Unless otherwise required by Law or the rules of any stock exchange or regulatory authority (including a self-regulatory organization), no party hereto may issue any press release or otherwise make any public announcement or comment relating to the transactions contemplated by the Purchase Agreement without the prior coordination with the other Sponsors, including, without limitation, allowing, to the extent reasonably practicable, the other Sponsors a reasonable opportunity to comment on such press release, public announcement or other communication in advance of such issuance or publication

 

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(including any public announcement required by Law or the rules of any stock exchange). This Section 2.13 shall terminate upon the occurrence of the First Buyout Condition.

 

2.14        Restrictions on Transfer. Except as contemplated by Section 2.19.1, for so long as this Agreement shall be in force or remain in effect, no Sponsor shall permit any Transfer of any equity or other interest of the Buyer. Except for the Alternative Financings, each Sponsor shall not, and shall cause its Affiliates not to, permit any direct or indirect Transfer (including by issuance of equity interests) of any equity interest of such Sponsor or the beneficial ownership of any equity interest of such Sponsor if such Transfer would be reasonably be expected to adversely affect or materially delay obtaining or making the consents, authorizations and approvals of any Governmental Body that are necessary to consummate the transactions contemplated by the Purchase Agreement or the Related Documents. Notwithstanding the foregoing, Energy Capital Partners III-A, LP shall be permitted to Transfer all or a portion of the limited liability company interests that it holds in the Buyer to any of Energy Capital Partners III, LP, Energy Capital Partners III-B, LP, Energy Capital Partners III-C, LP, and Energy Capital Partners III-D, LP. This Section 2.14 shall terminate upon the occurrence of the First Buyout Condition.

 

2.15        Additional Financing.

 

2.15.1             In the event that the PIPE Closing does not occur prior to or concurrently with the Closing as a result of the failure of any of the conditions to the PIPE Closing under the Stock Purchase Agreement to have been satisfied or waived or because the Stock Purchase Agreement has been terminated, ECP shall be required to provide $150 million to DYN or the Buyer, as applicable, through one of the following options (provided that if (x) the First Buyout Condition fails to occur (other than in the circumstances described in clause (z) below), ECP can elect either option in its sole discretion, (y) the First Buyout Condition occurs, only the provisions of clause (i) below shall apply and (z) in the event that the First Buyout Condition fails to occur and the PIPE Closing has not occurred or does not occur as a result of the failure of the condition set forth in Section 2.04(g) of the Stock Purchase Agreement, only the provisions of clause (ii) below shall apply): (i) ECP and DYN shall enter into a loan agreement, the specific terms of which shall include the ability of DYN to repay all or a portion of the loan at any time without penalty and shall otherwise be agreed by ECP and DYN, acting reasonably and in good faith, prior to the Closing, pursuant to which ECP shall loan DYN $150 million (the “ECP Loan”), which DYN shall use to fund the Buyer Subsidiary’s obligations under the Purchase Agreement or (ii) (a) ECP’s Commitment shall be increased by $150 million and DYN’s Commitment shall be decreased by $150 million, (b) each Sponsor’s Commitment Percentage shall be increased or decreased, as the case may be, in accordance with the $150 million increase or decrease contemplated by the foregoing clause (a), and (c) ECP shall be required to contribute such additional $150 million to the Buyer at the Closing, subject to the satisfaction or waiver of the conditions set forth in the ECP Equity Commitment Letter; provided that, in each case in the foregoing clauses (i) and (ii), each of DYN and Terawatt shall continue to comply with its obligations set forth in the Stock Purchase Agreement (including effecting the PIPE Closing, subject to the satisfaction or waiver of the conditions set forth in the Stock Purchase Agreement), and provided further that if any of the conditions to the PIPE

 

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Closing under the Stock Purchase Agreement are not satisfied or the Stock Purchase Agreement is terminated, in either case due to a material breach of, or material default under, the Stock Purchase Agreement by DYN, ECP shall not be required to provide the ECP Loan, ECP’s Commitment shall not be increased pursuant to clause (ii)(a) above and ECP shall not be required to contribute the additional $150 million to the Buyer at the Closing pursuant to clause (ii)(c) above, unless ECP elects, in its sole discretion, to either provide the ECP Loan or contribute such additional $150 million to the Buyer. For the avoidance of doubt, in the event that ECP contributes an additional $150 million to the Buyer pursuant to this Section 2.15.1, such contribution shall not constitute a Bridge Portion and shall instead be deemed an equity contribution by ECP to the Buyer under the ECP Equity Commitment Letter.

 

2.15.2             In the event that the PIPE Closing occurs after the actions contemplated in clauses (i) or (ii) of Section 2.15.1 have occurred, the Sponsors hereby agree that (a) ECP shall be deemed to have paid $150 million of DYN’s Commitment on DYN’s behalf, (b) such payment by ECP on DYN’s behalf shall be offset against, and shall be treated as satisfying, Terawatt’s obligation to pay the Purchase Price (as defined in the Stock Purchase Agreement) at the PIPE Closing, (c) in the case of clause (i) of Section 2.15.1, $150 million of the outstanding principal of the ECP Loan shall have been deemed repaid but any accrued and unpaid interest thereon shall be paid to ECP in full by DYN, and (d) in the case of clause (ii) of Section 2.15.1, for purposes of determining the ownership of Units (as defined in the LLC Agreement Form) and the Capital Contributions (as defined in the LLC Agreement Form) of each Sponsor, the actions set forth in clauses (ii)(a) and (ii)(b) of Section 2.15.1 shall be deemed to have not occurred and DYN shall be deemed to have funded DYN’s Commitment as contemplated as of the date hereof (for the avoidance of doubt, at the price per Unit paid by the Sponsors at the Closing).

 

2.16        Bridge Portion. Subject to Section 2.1.3, at the Closing and concurrently with the funding of ECP’s Commitment in accordance with the ECP Equity Commitment Letter, ECP shall provide the Bridge Portion to the Buyer substantially on the terms attached hereto as Exhibit C. Notwithstanding the foregoing or anything to the contrary in Section 2.2, through the Closing Date, DYN may, without ECP’s prior written consent, cause the Buyer to negotiate and obtain replacement financing from a third party that is not an Affiliate of DYN with respect to the Bridge Portion on terms materially more favorable to the Buyer in the aggregate than the terms of the Bridge Portion (which replacement financing shall (i) not be convertible into any equity of the Buyer or any of its Subsidiaries, (ii) not have any make-whole, cash interest, amortization, mandatory prepayment or redemption, financial covenants and call protection features and (iii) have a lower interest rate for the duration of such replacement financing and a maturity of at least four (4) years from the date of incurrence). This Section 2.16 shall terminate upon the occurrence of the First Buyout Condition.

 

2.17        Liquidity Facility. At the Closing, DYN and the Buyer shall enter into a liquidity facility, substantially on the terms attached hereto as Exhibit D. This Section 2.17 shall terminate upon the occurrence of the First Buyout Condition.

 

2.18        Alternative Financings. From and after the date hereof, DYN shall use its

 

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commercially reasonable efforts to cause the Alternative Financing Closings to occur as promptly as reasonably practicable and, in any event, by the Financing Date. This Section 2.18 shall terminate upon the occurrence of the First Buyout Condition.

 

2.19        ECP Buyout.

 

2.19.1             Upon the occurrence of the First Buyout Condition, (a) ECP shall promptly, and in any event within two (2) Business Days, (i) enter into an assignment agreement, in substantially the form attached hereto as Exhibit E, with Dynegy Atlas Holdings, LLC, a Delaware limited liability company, and (ii) deliver to Dynegy Atlas Holdings, LLC a certificate of non-foreign status from each seller of limited liability company interests in the Buyer prepared pursuant to section 1445(b)(2) of the Internal Revenue Code of 1986, as amended, and Treasury regulations section 1.1445-2(b)(2), and (b) DYN or the Buyer, whichever is applicable, shall promptly, and in any event within two (2) Business Days, (i) deliver to ECP a certification that interests in the Buyer are not U.S. real property interests prepared pursuant to Treasury regulation Section 1.897-2(h) and Treasury regulation 1.1445-2(c), and (ii) to the extent not already entered into and delivered to ECP, deliver to ECP a termination agreement in respect of the ECP Equity Commitment Letter and the ECP Guarantee in the form attached hereto as Exhibit F, duly executed by the Buyer, the Buyer Subsidiary and the Company.

 

2.19.2             Upon the occurrence of the First Buyout Condition and, thereafter, the Second Buyout Condition, DYN shall pay to ECP and its affiliated funds, by wire transfer of immediately available funds to an account (or accounts) designated in writing by ECP, an aggregate amount in cash (the “Purchase Price”) as set forth below:

 

(1)         $375,000,000, if DYN pays the Purchase Price in full on or prior to the later of (i) December 31, 2016 and (ii) the date that is three (3) months after the occurrence of the Second Buyout Condition (such later date, the “First Payment Date”);

 

(2)         $400,000,000, if DYN pays the Purchase Price in full after the First Payment Date but on or prior to the date that is three (3) months after the First Payment Date (such date, the “Second Payment Date”);

 

(3)         $425,000,000, if DYN pays the Purchase Price in full after the Second Payment Date but on or prior to the date that is six (6) months after the First Payment Date (such date, the “Third Payment Date”);

 

(4)         $450,000,000 if DYN pays the Purchase Price in full after the Third Payment date but on or prior to the date that is nine (9) months after the First Payment Date (the “Fourth Payment Date”); or

 

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(5)         if DYN does not pay the Purchase Price in full on or prior to the Fourth Payment Date, DYN shall pay ECP an amount equal to $468,500,000 on or prior to the date that is twelve (12) months from the First Payment Date (such date, together with the First Payment Date, the Second Payment Date, the Third Payment Date and the Fourth Payment Date, the “Payment Dates”).

 

DYN may make one or more partial payments of the Purchase Price at any time, whether on or prior to a Payment Date. If DYN makes any such partial payment, DYN shall owe, and be obligated to pay, only a proportionate amount of the Purchase Price increases reflected in Sections 2.19.2(2)—(5) based on the amount of the Purchase Price paid prior to any applicable Payment Date relative to the amount of the Purchase Price owed as of such applicable Payment Date.

 

2.19.3             In the event that the First Buyout Condition and the Second Buyout Condition have occurred and DYN has not paid the Purchase Price in full on or prior to March 15, 2017, DYN shall pay ECP an aggregate amount equal to $10,000,000 by wire transfer of immediately available funds; provided that, upon such payment, the Purchase Price shall be reduced by $10,000,000.

 

2.19.4             Until the earlier of (a) the failure of the First Buyout Condition to have occurred, (b) the payment of the Purchase Price in full and (c) the termination of the Purchase Agreement in accordance with its terms (other than a termination pursuant to Section 4.3(d) or Section 4.3(f) thereof), DYN shall not and shall cause its Subsidiaries not to:

 

(1)         subject to any applicable fiduciary duties of DYN’s board of directors, consummate any merger, consolidation or similar business combination transaction with any Person that is not an Affiliate of DYN involving consideration in excess of $300,000,000;

 

(2)         consummate any investments in, or loans or advances to, any Person that is not an Affiliate of DYN in excess of $100,000,000 individually or $300,000,000 in the aggregate;

 

(3)         other than with respect to the Alternative Debt Financings or the DYN Debt Exclusions, incur or guarantee debt for borrowed money in excess of $150,000,000 in the aggregate unless the proceeds are used to pay the Purchase Price;

 

(4)         enter into any agreement (other than pursuant to agreements or arrangements in effect as of June 14, 2016) to voluntarily prepay indebtedness in excess of $100,000,000 in the aggregate;

 

(5)         materially change lines of business;

 

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(6)         sell any physical assets (regardless of whether sold directly or indirectly in an asset or equity sale) in excess of $50,000,000 in the aggregate unless the proceeds thereof are used to pay the Purchase Price;

 

(7)         other than the Alternative Financings, issue any equity securities of DYN to any third party in exchange for cash, unless, in each case, the proceeds are used to pay the Purchase Price; or

 

(8)         utilize the existing restricted payment basket in the Credit Agreement in excess of $50,000,000 in the aggregate, except to pay fees, expenses and pre-funded interest expense for the Alternative Financings.

 

Notwithstanding the foregoing, nothing in this Section 2.19.4 shall restrict DYN’s ability to restructure or refinance in whole or in part the existing indebtedness of Illinois Power Generating Company, including restricting (i) the ability of DYN or any of its Subsidiaries to issue indebtedness to the lenders to Illinois Power Generating Company or (ii) DYN’s or IPH, LLC’s ability to make payments to the lenders to Illinois Power Generating Company.

 

2.20        ICC Sale. From and after the occurrence of the First Buyout Condition until the earlier of (a) the payment of the Purchase Price in full or (b) the termination of the Purchase Agreement in accordance with its terms (other than a termination pursuant to Section 4.3(d) or Section 4.3(f) thereof), DYN shall use its commercially reasonable efforts to sell Independence CC located in Oswego, New York (“ICC”) or to pursue a project financing of ICC. DYN shall use the proceeds from such sale or project financing, less related fees and expenses, to satisfy its obligations under Section 2.19.2. Notwithstanding the foregoing, if DYN does not enter into a definitive agreement relating to the sale of ICC on or prior to the Third Payment Date, DYN shall use its commercially reasonable efforts to pursue a project financing of ICC and shall use the proceeds of such project financing, less related fees and expenses, to fund the Purchase Price.

 

2.21        ROFR Waiver. Terawatt hereby waives all rights it has with respect to the Alternative Equity Financing under Section 5.06 of the Stock Purchase Agreement.

 

2.22        Representations and Warranties. Each Sponsor represents and warrants to the other Sponsor that:

 

2.22.1             such Sponsor is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization and has full power and legal right to execute and deliver this Agreement and to perform its obligations hereunder;

 

2.22.2             the execution, delivery and performance of this Agreement by such Sponsor has been and remains duly authorized by all necessary partnership action, and does not contravene any provision of its organizational documents or any Law or contravene or violate any provision of, or result in the termination or acceleration of, or entitle any party to accelerate any obligation or indebtedness under, any mortgage, lease, franchise, license, permit, Contract or instrument, to which such Sponsor is a party or by which any of such Sponsor’s assets or properties are bound;

 

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2.22.3             no other entity or governing body proceedings or approvals on the part of such Sponsor or any direct or indirect equity holders, managers or partners are necessary to authorize the execution, delivery and performance of this Agreement;

 

2.22.4             other than as disclosed in the Purchase Agreement (including the schedules thereto) or any notice to or filing with the FERC in connection with this Agreement, no notice to, filing with or consent or approval of any Governmental Body having jurisdiction is required for the execution, delivery and performance of this Agreement and no other proceedings or actions on the part of such Sponsor or any other Person (other than any proceedings that have previously occurred or actions that have been previously taken) are necessary in connection with the execution, delivery and performance of this Agreement;

 

2.22.5             other than as disclosed in the Purchase Agreement (including the schedules thereto), no notice to, filing with or consent or approval of any Governmental Body having jurisdiction is required for the execution, delivery and performance of the Stock Purchase Agreement or the Transaction Agreements by such Sponsor or the Buyer as a result of such Sponsor’s participation in the transactions contemplated by the Transaction Agreements (excluding, for the avoidance of doubt, the transactions contemplated by the Stock Purchase Agreement); and

 

2.22.6             to the knowledge of such Sponsor (including the knowledge that would have been obtained after due inquiry), the representations and warranties of the Buyer Subsidiary contained in the Purchase Agreement are true and accurate in all respects.

 

3.             MISCELLANEOUS.

 

3.1          Amendment. This Agreement may be amended or modified, and the provisions hereof waived, only by an agreement in writing signed by the parties hereto.

 

3.2          Severability. In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect, such provision shall be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law. The provisions hereof are severable, and in the event any provision hereof should be held invalid or unenforceable in any respect, it shall not invalidate, render unenforceable or otherwise affect any other provision hereof.

 

3.3          Notice. All notices and other communications hereunder shall be in writing and shall be deemed duly delivered (i) four Business Days after being sent by registered or certified mail, return receipt requested, postage prepaid, (ii) one Business Day after being sent for next Business Day delivery, fees prepaid, via a reputable nationwide overnight courier service, or (iii) on the date of confirmation of receipt (or, the first Business Day following such receipt if the date of such receipt is not a Business Day) of transmission by electronic mail or facsimile, in each case to the intended recipient as set forth below:

 

18

 

if to ECP:

 

Energy Capital Partners
 11943 El Camino Real, Suite 220
 San Diego, California 92130
 Facsimile: (858) 703-4401

Email: asinger@ecpartners.com; cleininger@ecpartners.com
 Attention: Andrew Singer; Chris Leininger

 

with a copy to (which alone shall not constitute notice):

 

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Facsimile: (212) 751-4864

Email: david.kurzweil@lw.com; paul.kukish@lw.com

Attn: David Kurzweil; Paul Kukish

 

if to DYN:

 

Dynegy Inc.
 601 Travis Street
 Houston, TX 77002
 Facsimile: (713) 507-6808
 E-mail: catherine.james@dynegy.com 
 Attention: Catherine James, Esq., Executive Vice President and General Counsel

 

with a copy (which shall not constitute notice) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP
 1440 New York Avenue, N.W.
 Washington, DC 20005
 Facsimile: (202) 661-8200 
 E-mail: michael.rogan@skadden.com 
 Attention: Michael P. Rogan

 

3.4          Governing Law; Jurisdiction; Venue; Waiver of Jury Trial.

 

3.4.1       This Agreement, and all claims or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to this letter agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), shall be governed by, and construed in accordance with, the internal laws of the State of Delaware, applicable to contracts executed in and to be performed entirely within that State.

 

19

 

3.4.2       This Agreement, and all claims or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), shall be governed by, and construed in accordance with, the internal laws of the State of Delaware, without reference to the choice of law provisions thereof. All claims, causes of action, suits, actions or proceedings shall be raised to and exclusively determined by the Court of Chancery for the State of Delaware or, if such court disclaims jurisdiction, the U.S. District Court for the District of Delaware or, if such court disclaims jurisdiction, the courts of the State of Delaware, and in each case, any appellate court from any decision thereof, to whose exclusive jurisdiction and venue the Parties unconditionally consent and submit. Service of process in connection with any such claim, cause of action suit, action or proceeding may be served on each Party anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the Parties irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

3.4.3       THE PARTIES HERETO EACH HEREBY WAIVES, AND AGREES TO CAUSE ITS AFFILIATES TO WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

3.5          Specific Performance. The parties hereto acknowledge and agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached and that any remedy at law for any breach of the provisions of this Agreement would be inadequate. Accordingly, the parties hereto acknowledge and agree that each party hereto shall be entitled to an injunction, specific performance or other equitable relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, including the right of a party hereto to cause the other party hereto consummate the transactions contemplated by the Transaction Agreements, in the courts provided for in Section 3.4.2, this being in addition to any other remedy to which they are entitled at law or in equity. Each Party agrees that it will not oppose

 

20

 

the granting of specific performance and other equitable relief on the basis that any other party hereto has an adequate remedy at law or that an award of specific performance is not an appropriate remedy for any reason at law or equity. The parties hereto acknowledge and agree that any party hereto seeking an injunction to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in accordance with this Section 3.5 shall not be required to provide any bond or other security in connection with any such injunction.

 

3.6          No Recourse. Notwithstanding anything to the contrary that may be expressed or implied in this Agreement or any document or instrument delivered contemporaneously herewith, and notwithstanding the fact that any Sponsor or any of its successors or permitted assignees may be a partnership or a limited liability company, each of ECP, DYN and the Buyer, by its acceptance of the benefits hereof, covenants, agrees and acknowledges that no Person other than ECP, DYN and the Buyer and their respective successors and permitted assignees shall have any obligation hereunder, and that it has no rights of recovery against, and no recourse hereunder or under any documents or instruments delivered in connection herewith shall be had against, any former, current or future director, officer, agent, advisor, attorney, representative, Affiliate, manager or employee of any of ECP, DYN or the Buyer (or any of their successors or assignees), against any former, current or future general or limited partner, manager, member or stockholder of ECP, DYN or the Buyer, or any Affiliate thereof or against any former, current or future director, officer, agent, advisor, attorney, representative, employee, Affiliate, assignee, general or limited partner, stockholder, manager or member of any of the foregoing, whether by or through attempted piercing of the corporate veil, by the enforcement of any judgment or assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable Law, or otherwise.

 

3.7          Exercise of Rights and Remedies. No delay of or omission in the exercise of any right, power or remedy accruing to any party as a result of any breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default, or of any similar breach or default occurring later; nor shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring before or after that waiver.

 

3.8          Other Agreements. This Agreement, together with the Transaction Agreements and all agreements referenced herein and therein, constitutes the entire agreement and supersedes all prior agreements, understandings and statements, both written and oral, among the parties hereto with respect to the subject matter contained herein.

 

3.9          Assignment. No party hereto may assign any of its rights or obligations under this Agreement without the prior written consent of the other party; provided that ECP may assign this Agreement (in whole or in part) to one or more of its Affiliates as long as ECP remains liable hereunder.

 

3.10        Third Parties. No Person who is not a party to this Agreement shall have any rights to enforce this Agreement; provided that the parties hereto expressly intend that the Buyer shall be regarded as, and shall be entitled to rely upon its status as, an intended third party beneficiary of Section 2.8 hereof.

 

21

 

3.11        Counterparts. This Agreement may be executed in counterparts, all of which, when taken together, shall constitute one and the same agreement.

 

3.12        Amendment and Restatement. Effective from and after the date hereof, this Agreement amends and restates the Interim Sponsors Agreement in its entirety.

 

[Signature pages follow]

 

22

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.

 

	
 
    	
ENERGY   CAPITAL PARTNERS III, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyler Reeder
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-A, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyler Reeder
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-B, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyler Reeder
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
					

 

[Signature Page to Amended and Restated Interim Sponsors Agreement]

 

 

	
 
    	
ENERGY   CAPITAL PARTNERS III-C, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyler Reeder
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-D, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyler Reeder
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
TERAWATT HOLDINGS, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyler Reeder
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew D. Singer
    
	
 
    	
 
    	
Name:   Andrew D. Singer
    
	
 
    	
 
    	
Title:   Secretary and General Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
DYNEGY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert C. Flexon
    
	
 
    	
 
    	
Name:   Robert C. Flexon
    
	
 
    	
 
    	
Title:   President & Chief Executive Officer
    
					

 

[Signature Page to Amended and Restated Interim Sponsors Agreement]

 

 

	
 
    	
ATLAS POWER, LLC
    
	
 
    	
 
    
	
 
    	
By:   Dynegy Atlas Holdings, LLC, its managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert C. Flexon
    
	
 
    	
Name:   Robert C. Flexon
    
	
 
    	
Title:   President & Chief Executive Officer
    

 

[Signature Page to Amended and Restated Interim Sponsors Agreement]

 

 

EXHIBIT A

 

FORM OF LLC AGREEMENT

 

 

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

 

ATLAS POWER, LLC

 

a Delaware limited liability company

 

effective as of [·]

 

UNITS IN ATLAS POWER, LLC, A DELAWARE LIMITED LIABILITY COMPANY, HAVE NOT BEEN REGISTERED WITH OR QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE.  THE UNITS ARE BEING SOLD IN RELIANCE UPON EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS.  THE UNITS CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERABILITY CONTAINED IN THIS LIMITED LIABILITY COMPANY AGREEMENT OF ATLAS POWER, LLC AND APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 

 

CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I.   ORGANIZATION
    	
2
    
	
 
    	
 
    	
 
    
	
Section 1.01
    	
Continuation of the   Company
    	
2
    
	
Section 1.02
    	
Name
    	
2
    
	
Section 1.03
    	
Registered Office;   Registered Agent
    	
2
    
	
Section 1.04
    	
Principal Place of Business
    	
2
    
	
Section 1.05
    	
Purpose; Powers
    	
2
    
	
Section 1.06
    	
Fiscal Year
    	
3
    
	
Section 1.07
    	
Foreign Qualification   Governmental Filings
    	
3
    
	
Section 1.08
    	
Duration
    	
3
    
	
Section 1.09
    	
Units
    	
3
    
	
Section 1.10
    	
New Unitholders
    	
3
    
	
Section 1.11
    	
Tax Classification
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE II.   CORPORATE GOVERNANCE
    	
4
    
	
 
    	
 
    
	
Section 2.01
    	
Board of Managers
    	
4
    
	
Section 2.02
    	
Removal
    	
5
    
	
Section 2.03
    	
Vacancies
    	
5
    
	
Section 2.04
    	
Voting Agreements
    	
6
    
	
Section 2.05
    	
Governance Expense
    	
6
    
	
Section 2.06
    	
Board Actions
    	
6
    
	
Section 2.07
    	
Officers
    	
9
    
	
Section 2.08
    	
Certain Powers of   Nominated Directors
    	
9
    
	
Section 2.09
    	
Annual Plan
    	
9
    
	
Section 2.10
    	
ECP Representative
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE III.   CAPITAL CONTRIBUTIONS AND DISTRIBUTIONS
    	
10
    
	
 
    	
 
    
	
Section 3.01
    	
Capital Contributions
    	
10
    
	
Section 3.02
    	
Distributions
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE IV.   ISSUANCE OF NEW SECURITIES; RESTRICTIONS ON TRANSFERS
    	
11
    
	
 
    	
 
    
	
Section 4.01
    	
Resale of Units
    	
11
    
	
Section 4.02
    	
Issuance of New   Securities; Pre-Emptive Rights
    	
12
    
	
Section 4.03
    	
ECP Put Right
    	
13
    
	
Section 4.04
    	
Dynegy Call Right
    	
16
    
	
Section 4.05
    	
Right of First Offer
    	
17
    
	
Section 4.06
    	
Drag Along Rights
    	
19
    
	
Section 4.07
    	
Tag Along Rights
    	
20
    
	
Section 4.08
    	
Void Assignment
    	
20
    

 

 

	
Section 4.09
    	
Cooperation
    	
21
    
	
Section 4.10
    	
Expenses
    	
21
    
	
Section 4.11
    	
Bridge Loan
    	
21
    
	
 
    	
 
    
	
ARTICLE V.   TERMINATION; LIQUIDATION
    	
22
    
	
 
    	
 
    
	
Section 5.01
    	
Initial Public Offering
    	
22
    
	
Section 5.02
    	
Liquidation; Voluntary   Termination
    	
22
    
	
Section 5.03
    	
Dissolution
    	
22
    
	
 
    	
 
    
	
ARTICLE VI.   [RESERVED]
    	
22
    
	
 
    	
 
    
	
ARTICLE VII.   COVENANTS
    	
22
    
	
 
    	
 
    
	
Section 7.01
    	
Confidentiality
    	
22
    
	
Section 7.02
    	
Information Rights
    	
24
    
	
Section 7.03
    	
Management Rights   Letter
    	
25
    
	
Section 7.04
    	
Limitation of Duties;   Separate Interests
    	
25
    
	
Section 7.05
    	
FIRPTA Compliance
    	
26
    
	
Section 7.06
    	
Notification of Certain   Transactions
    	
26
    
	
Section 7.07
    	
Dispute Resolution
    	
26
    
	
Section 7.08
    	
Registration Rights
    	
27
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII.   INDEMNIFICATION; LIMITATION OF LIABILITY
    	
27
    
	
 
    	
 
    
	
Section 8.01
    	
Indemnification;   Limitation of Liability
    	
27
    
	
Section 8.02
    	
D&O Insurance
    	
29
    
	
 
    	
 
    
	
ARTICLE IX.   GENERAL PROVISIONS
    	
29
    
	
 
    	
 
    
	
Section 9.01
    	
Successors and Assigns
    	
29
    
	
Section 9.02
    	
Specific Performance
    	
29
    
	
Section 9.03
    	
Governing Law
    	
29
    
	
Section 9.04
    	
Submission to   Jurisdiction; Consent to Service of Process
    	
29
    
	
Section 9.05
    	
Waiver of Jury Trial
    	
29
    
	
Section 9.06
    	
Interpretation
    	
30
    
	
Section 9.07
    	
Notices
    	
30
    
	
Section 9.08
    	
Counterparts
    	
32
    
	
Section 9.09
    	
Severability
    	
32
    
	
Section 9.10
    	
Amendment and Waiver
    	
32
    
	
Section 9.11
    	
Tax Withholding
    	
33
    
	
Section 9.12
    	
Entire Agreement
    	
33
    
	
Section 9.13
    	
Legends
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE X.   DEFINITIONS
    	
34
    

 

iii

 

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

ATLAS POWER, LLC

 

This AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of ATLAS POWER, LLC, a Delaware limited liability company (the “Company”), dated and effective as of [·] (the “Effective Date”), is made and entered into by and among:

 

(i)                                     the Company;

 

(ii)                                  Energy Capital Partners III, LP, a Delaware limited partnership (“ECP III”), Energy Capital Partners III-A, LP, a Delaware limited partnership (“ECP III-A”), Energy Capital Partners III-B, LP, a Delaware limited partnership (“ECP III-B”), Energy Capital Partners III-C, LP, a Delaware limited partnership (“ECP III-C”), Energy Capital Partners III-D, LP, a Delaware limited partnership (“ECP III-D” and, together with ECP III, ECP III-A, ECP III-B and ECP III-C, collectively, the “ECP Funds”); and

 

(iii)                               Dynegy Atlas Holdings, LLC, a Delaware limited liability company (“Dynegy” and, together with the ECP Funds, the “Principal Unitholders”).

 

Each of the parties hereto are sometimes referred to individually as a “Party” and collectively as the “Parties” in this Agreement.

 

RECITALS

 

WHEREAS, the Company was formed under the name “Atlas Power, LLC” as a limited liability company under the Delaware Limited Liability Company Act pursuant to the Certificate of Formation of the Company (the “Delaware Certificate”) filed with the Delaware Secretary of State on February 23, 2016;

 

WHEREAS, the Principal Unitholders and the Company previously entered into that certain Limited Liability Company Agreement of the Company, dated as of February [·], 2016 (the “Original Agreement”);

 

WHEREAS, (i) the ECP Funds have purchased from the Company an aggregate of [·] Units (as defined below) in exchange for $[·], representing [·]% of the issued and outstanding number of Units, and (ii) Dynegy has purchased from the Company an aggregate of [·] Units in exchange for $[·], representing [·]% of the issued and outstanding number of Units(1);

 

(1)  Note to Draft:  For the avoidance of doubt, these amounts and amounts set forth on Exhibit A to take into account all equity amounts funded by the ECP Funds and Dynegy, respectively, as of the Effective Date, including any amounts funded by the ECP Funds to the Company because the PIPE transaction has not yet been consummated.

 

1

 

WHEREAS, the Parties desire to promote their mutual interests by agreeing to certain matters relating to the operations of the Company and the disposition and voting of the Units;

 

WHEREAS, the Principal Unitholders wish to amend and restate the Original Agreement in its entirety and do hereby adopt this Agreement as the Limited Liability Company Agreement of the Company, effective as of the Effective Date.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties intending to be legally bound agree as follows:

 

ARTICLE I.
  ORGANIZATION

 

Section 1.01                             Continuation of the Company.  The Company was organized as a Delaware limited liability company on February 23, 2016 by the filing of the Delaware Certificate in the office of the Delaware Secretary of State pursuant to the Delaware Act.  The Unitholders desire to continue the Company for the purposes and upon the terms and conditions set forth herein.  As of the Effective Date, the ECP Funds and Dynegy constitute all of the Unitholders of the Company.  Except as provided herein, the rights, duties and liabilities of each Unitholder will be as provided in the Delaware Act.

 

Section 1.02                             Name.  The name of the Company is “Atlas Power, LLC”.  Company business will be conducted in such name or such other names that comply with applicable Law as the Board may select from time to time.

 

Section 1.03                             Registered Office; Registered Agent. The registered office of the Company in the State of Delaware will be the initial registered office designated in the Delaware Certificate or such other office (which need not be a place of business of the Company) as the Board may designate from time to time in the manner provided by law.  The registered agent of the Company in the State of Delaware will be the initial registered agent designated in the Delaware Certificate, or such other person or persons as the Board may designate from time to time in the manner provided by law.

 

Section 1.04                             Principal Place of Business.  The principal place of business of the Company will be at 601 Travis Street, Suite 1400, Houston, TX 77002, or such other location as the Board may designate from time to time, which need not be in the State of Delaware.  The Company may have such other offices as the Board may determine appropriate.

 

Section 1.05                             Purpose; Powers.  The Company shall have the power to engage in any and all lawful businesses or activities and exercise any powers in which a limited liability company may be engaged under applicable Law, including the Delaware Act.  The Company

 

2

 

will have all powers permitted to be exercised by a limited liability company organized in the State of Delaware.

 

Section 1.06                             Fiscal Year.  The fiscal year of the Company (the “Fiscal Year”) for financial statement and federal income tax purposes will end on December 31st unless otherwise determined by the Board or required under the Code.

 

Section 1.07                             Foreign Qualification Governmental Filings.  The Board is authorized to cause the Company to comply, to the extent procedures are available, with all requirements necessary to qualify the Company as a foreign limited liability company in any jurisdiction where the Company may conduct business.  Each Officer is authorized, on behalf of the Company, to execute, acknowledge, swear to and deliver all certificates and other instruments as may be necessary or appropriate in connection with such qualifications.  Further, each Unitholder will execute, acknowledge, swear to and deliver all certificates and other instruments that are necessary or appropriate to qualify, or, as appropriate, to continue or terminate such qualification of, the Company as a foreign limited liability company in all such jurisdictions in which the Company may conduct business.

 

Section 1.08                             Duration.  The Company commenced on the date the Certificate of Formation was filed with the Delaware Secretary of State, and the Company will be perpetual in duration unless terminated pursuant to this Agreement.

 

Section 1.09                             Units.  As of the date hereof, the Equity Interests of the Company shall be comprised of units (the “Units”).  Upon the execution hereof by the Parties, [·] Units were issued and outstanding as more fully set forth on Exhibit A hereto (the “Schedule of Unitholders”). The Company may (but need not) issue certificates representing the Units at the election of the Board.

 

Section 1.10                             New Unitholders.  Subject to the provisions of this Agreement, including Section 2.06(c)(i), Section 4.02 and Section 4.11, upon the approval of the Board, additional persons may be admitted to the Company as Unitholders and Equity Interests may be created and issued to such persons as determined by the Board on such terms and conditions as the Board may determine at the time of admission.  The terms of admission may provide for the creation of different classes or series of Equity Interests having different rights, powers and duties.  As a condition to the admission of any person as a Unitholder of the Company, such person must agree to be bound by the terms of this Agreement by executing and delivering a joinder to this Agreement in the form attached hereto as Exhibit B.  The Board is hereby authorized to update the Schedule of Unitholders as it may determine to be necessary from time to time, including to reflect the creation and issuance of additional Equity Interests pursuant to this Section 1.10, and such updates shall not be deemed to be amendments to this Agreement.

 

Section 1.11                             Tax Classification.  It is intended that the Company will be classified as an association taxable as a corporation for U.S. federal and applicable state and local income tax purposes, and the Company shall make (and not revoke) an election under Treasury Regulation Section 301.7701-3 to be treated as such, effective as of its date of formation.  The Company, the

 

3

 

Managers and the Officers are hereby authorized to sign and make such election (and any analogous election under state, local or other applicable income tax law).

 

ARTICLE II.
  CORPORATE GOVERNANCE

 

Section 2.01                             Board of Managers.

 

(a)                                 Except as otherwise provided in this Agreement or by applicable Law, the power and authority to manage, direct and control the Company will be vested in the Board.  The Board will have full, complete and exclusive authority to manage, direct and control the business, affairs and properties of the Company, and to perform any and all other acts or activities customary or incident to the management of the Company’s activities.  Unless expressly authorized to do so by the provisions hereof or by action of the Board, no Unitholder may claim or exercise any authority to act, or to enter into any contract or agreement, on behalf of the Company.

 

(b)                                 The board of managers of the Company (the “Board,” and each member thereof, a “Manager”) shall initially consist of the following five (5) Managers: (i) one (1) Manager nominated by ECP-III, who shall initially be Andy Singer (the “ECP III Manager”), (ii) one (1) Manager nominated by ECP III-A, who shall initially be Tyler Reeder (the “ECP III-A Manager” and, together with ECP III Manager, the “ECP Managers”), and (iii) three (3) Managers nominated by Dynegy, who shall initially be Robert Flexon, Hank Jones and Clint Freeland.

 

(c)                                  Each Unitholder shall vote all of its Units and any other voting securities of the Company over which such Unitholder has voting control and shall take all other necessary or desirable actions within its control (whether in its capacity as a unitholder, director, member of a board committee, or officer or otherwise, and including attendance at meetings in person or by proxy for purposes of obtaining a Quorum and execution of written consents in lieu of meetings), and the Company shall take all necessary or desirable actions within its control (including calling special board and unitholders meeting) to ensure, and each of the Parties agrees, that:

 

(i)                                     The authorized number of Managers shall be five (5) Managers (or such other number as unanimously agreed upon by the Principal Unitholders);

 

(ii)                                  Until such time as the ECP Funds and their Affiliate Transferees (the “ECP Parties”) shall collectively own less than twenty percent (20%) of the outstanding Units due to the circumstances described below, the ECP Parties shall collectively be entitled to nominate two (2) Managers, with each of ECP III and ECP III-A (or their Affiliate Transferees) entitled to nominate one (1) Manager and, following such time as the ECP Parties own less than twenty percent (20%) of the outstanding Units due to (individually or in the aggregate) (A) the occurrence of a Partial Put or a Partial Call and/or (B) being a Non-Subscribing Unitholder with respect to any New Securities approved pursuant to Section 2.06(c)(i), the ECP Parties shall collectively be entitled to nominate one (1) Manager (in which case Dynegy shall be entitled to nominate one (1) of the Managers previously nominated by the ECP Parties to the extent that Dynegy is then

 

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entitled to nominate at least three (3) Managers pursuant to clause (iii) below and which Manager seat shall remain vacant if Dynegy is not then so entitled); and

 

(iii)                               Until such time as Dynegy and its Affiliate Transferees (the “Dynegy Parties”) shall collectively own less than fifty percent (50%) of the outstanding Units due to the circumstances described below, the Dynegy Parties shall collectively be entitled to nominate three (3) Managers, and following such time as the Dynegy Parties own less than (A) fifty percent (50%) of the outstanding Units due to (individually or in the aggregate) (1) a failure to exercise the Dynegy Repayment Option in an amount necessary to maintain ownership of at least fifty percent (50%) of the outstanding Units and/or (2) being a Non-Subscribing Unitholder with respect to any New Issuance approved pursuant to Section 2.06(c)(i), the Dynegy Parties shall be entitled (subject to the succeeding clause (B)) to nominate two (2) Managers (in which case the ECP Funds shall be entitled to nominate one of the Managers previously nominated by the Dynegy Parties to the extent that the ECP Parties are then entitled to nominate at least two (2) Managers pursuant to clause (ii) above and this clause (iii) and which Manager seat shall remain vacant if the ECP Parties are not then so entitled) and (B) twenty percent (20%) of the outstanding Units due to (individually or in the aggregate) (1) a failure to exercise the Dynegy Repayment Option in an amount necessary to maintain ownership of at least twenty percent (20%) of the outstanding Units and/or (2) being a Non-Subscribing Unitholder with respect to any New Securities approved pursuant to Section 2.06(c)(i), the Dynegy Parties shall be entitled to nominate one (1) Manager (in which case ECP shall be entitled to nominate all but one of the Managers previously nominated by the Dynegy Parties to the extent that the ECP Parties are then entitled to nominate at least two (2) Managers pursuant to clause (ii) above and this clause (iii) and which Manager seat shall remain vacant if the ECP Parties are not then so entitled).

 

(d)                                 The Principal Unitholders shall have the right to nominate a corresponding percentage of members to any committee of the Board as such Principal Unitholder may nominate to the Board itself pursuant to Section 2.01(c).

 

Section 2.02                             Removal.  The ECP Parties or the Dynegy Parties who have the right to nominate any Manager pursuant to Section 2.01(c) shall also have the right to send a notice to the Parties electing to remove such Manager.  Upon receipt of such notice, the Parties shall immediately remove such Manager from the Board and any committee thereof, and the Parties shall take all necessary action to fill the vacancy created by such removal in accordance with Section 2.01(c).

 

Section 2.03                             Vacancies. In the event that any Manager ceases to serve as a member of the Board or any committee thereof for any reason, in each case, during such member’s term of office, the resulting vacancy on the Board or committee, as applicable, shall be filled by the Parties in the manner provided in Section 2.01.  In the event that any person for any reason ceases to serve as a member of any committee of the Board during such member’s term of office, the resulting vacancy shall be filled by the Company (acting at the direction of the Board) in the manner provided in Section 2.01(d).

 

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Section 2.04                             Voting Agreements.  Each Unitholder agrees to vote all its Units owned or held of record by it (a) to elect (or to execute a written consent consenting to the election of) the nominees nominated pursuant to Section 2.01 and Section 2.03, (b) not to remove (and not to execute a written consent consenting to the removal of) any Manager other than pursuant to Section 2.02, (c) to remove (or to execute a written consent consenting to the removal of) any Manager pursuant to Section 2.02 and (d) to effect any decisions made in accordance with the provisions of Section 2.08.  The voting agreements contained herein are coupled with an interest and may not be revoked or amended except as set forth in this Agreement.

 

Section 2.05                             Governance Expense.  The Company shall reimburse all Managers for reasonable travel, lodging and related expenses incurred in connection with meetings of the Board or otherwise in service as a Manager.

 

Section 2.06                             Board Actions.  Each of the Parties shall take all reasonable actions to cause the following procedures to be followed by the Board:

 

(a)                                 Quorum.  A quorum of the Board as to any action of the Board shall consist of (i) at least a majority of the Managers (excluding any vacancies), (ii) at least one (1) Manager nominated by the ECP Parties unless the ECP Parties are entitled to nominate three (3) Managers pursuant to Section 2.01(c), in which case at least two (2) Managers nominated by the ECP Parties shall be required for such quorum, and (iii) at least two (2) Managers nominated by the Dynegy Parties unless the Dynegy Parties are entitled to nominate one (1) Manager pursuant to Section 2.01(c), in which case at least one (1) Manager nominated by the Dynegy Parties shall be required for such quorum (a “Quorum”); provided, however, that with respect to the actions addressed by Section 2.08, a Quorum shall be deemed to exist with the presence of solely the Directors specified therein; provided, further, that if there is a failure of quorum at any such meeting as a result of the absence of a ECP Manager if the Dynegy Parties are entitled to nominate a majority of the Managers, or the absence of a Dynegy Manager if the ECP Parties are entitled to nominate a majority of the Managers, as the case may be, the Managers in attendance may adjourn such meeting and recall it not less than seventy-two (72) hours thereafter by written notice to each Manager, and at such recalled meeting, the presence of an ECP Manager or a Dynegy Manager, as the case may be, shall not be required for the presence of a quorum.  A Quorum must be present at all Board meetings (whether in person or by proxy, by telephone, videoconference or otherwise) to conduct business.  A Quorum must exist at all times during any Board meeting, including the reconvening of a meeting adjourned, in order for any action taken at such meeting to be valid.

 

(b)                                 Voting.  On all matters requiring the vote or action of the Board, each Manager shall be entitled to one vote and all actions, approvals and consents undertaken by the Board must be authorized (i) at any Board meeting at which a Quorum is present, by the affirmative vote of a majority of the number of votes represented by the Managers (excluding any vacancies), or such higher threshold required by Section 2.06(c), or (ii) in the manner specified in Section 2.06(d) with respect to actions by written consent; provided, however, that the matters addressed in Section 2.08 shall require only the determinations of the Directors specified therein.  Managers may participate in any meeting in person or by proxy (which proxy may be granted by e-mail), or through telephonic or similar communications equipment, and, such participation

 

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shall constitute attendance at such meeting. For the avoidance of doubt, unless specified otherwise in this Section 2.06 or this Agreement, any action, approval or consent of the Board required pursuant to this Agreement shall require the affirmative vote of a majority of the number of votes represented by the Managers (excluding any vacancies).

 

(c)                                  Actions Requiring Supermajority Approval.  Notwithstanding anything to the contrary in this Agreement but subject to Section 4.11, neither the Company nor any Subsidiary thereof nor any officer or agent of the Company or its respective Subsidiaries shall take any of the actions described in this Section 2.06(c) without the affirmative vote of at least seventy five percent (75%) of the number of votes represented by the Managers (excluding any vacancies); provided, however that the actions described in clauses (v), (vi) and (xv) below shall not be taken by the Company or any Subsidiary thereof (nor any officer or agent of the Company or its respective Subsidiaries) without the unanimous vote of the Managers:

 

(i)                                     request or accept any Capital Contributions or other equity capital from any Unitholder or any other person or issue, or authorize the issuance of, any Units or other Equity Interests of the Company or any of its Subsidiaries;

 

(ii)                                  agree to any merger, consolidation or combination of the Company or its Subsidiaries with a third person (other than the Company or its Subsidiaries), or to a sale of all or substantially all of the assets of the Company or any of its Subsidiaries, other than in connection with the exercise of any Drag Along Rights pursuant to Section 4.06 or an ECP Forced Sale;

 

(iii)                               enter into or agree to any recapitalization, restructuring or reorganization of the Company or any of its Subsidiaries;

 

(iv)                              commence any voluntarily liquidation, winding up, or dissolution of the Company or any of its Subsidiaries;

 

(v)                                 commence or acquiesce in any bankruptcy, insolvency, reorganization, debt arrangement, composition or other case under any bankruptcy, insolvency law, or making an assignment for the benefit of creditors;

 

(vi)                              change any material tax elections or tax policies;

 

(vii)                           other than to the Company or a Subsidiary thereof, sell, license, transfer or otherwise dispose of (including through merger or consolidation) any assets or properties of the Company or any of its Subsidiaries having a fair market value in excess of $[·], or any equity interests owned by the Company or a Subsidiary thereof, in each case in any single transaction or series of related transactions;

 

(viii)                        purchase or otherwise acquire all or any part of the assets or business of, or Equity Interests or other evidences of beneficial ownership of, invest in or participate in any joint venture, partnership or similar arrangement (other than in the ordinary course of business) with, any person or entity (other than the Company or any of its

 

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Subsidiaries), in each case involving a commitment in excess of $[·], in each case in any single transaction or series of related transactions;

 

(ix)                              cause the Company, or any Subsidiary thereof, to consummate an Initial Public Offering or any other public securities offering;

 

(x)                                 (A) other than with respect to [·](2) or, until the first (1st) anniversary of this Agreement, Indebtedness from a third party that is not an Affiliate of any Unitholder on terms materially more favorable to the Company in the aggregate than the Bridge Loan (which Indebtedness shall (i) not be convertible into Equity Interests, (ii) not have any make-whole, cash interest, amortization, mandatory prepayment or redemption, financial covenants and call protection features and (iii) have a lower interest rate for the duration of such Indebtedness and a maturity of at least four (4) years from the date of incurrence), the proceeds of which are used solely to repay all or a portion of the Bridge Loan, incur, assume, guarantee or otherwise become responsible for Indebtedness in excess of $[·] in any single transaction or series of related transactions, (B) make any material amendment to, waiver of, or consent in respect of, any Indebtedness, (C) extend any credit or make any loan to any person or entity in excess of $[·] or (iv) other than the Bridge Loan, optionally repay any outstanding debt in excess of $[·]; provided; however, that, notwithstanding the foregoing, with the approval of a majority of the Board (and not 75%), the Company may enter into a liquidity facility that has terms not materially less favorable to the Company than to Dynegy Parent’s liquidity facility under the Dynegy Parent Credit Agreement as in existence on February 24, 2016;

 

(xi)                              other than with respect to the Service Agreement, enter into or agree to enter into any transaction or series of related transactions between the Company or any of its Subsidiaries, on the one hand, and any Principal Unitholder or any of its Affiliates (other than the Company or any of its Subsidiaries), on the other hand;

 

(xii)                           make any Distribution to the Unitholders;

 

(xiii)                        commence or settle any claim or litigation of the Company or any of its Subsidiaries (including any tax disputes) in excess of $[·] or agree to any injunctive or declaratory relief in respect of any such material claim or litigation;

 

(xiv)                       approve, amend or modify any Annual Plan;

 

(xv)                          amend or modify the Service Agreement in a manner that is disproportionately adverse to the ECP Parties; or(3)

 

(2)  Note to Draft: To reference acquisition financing credit facilities, the Bridge Loan and the liquidity facility.

 

(3)  Note to Draft: At the Board’s first meeting, it will approve a delegation of authority policy to the appropriate officers that generally permits expenditures under $[·] million.

 

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(xvi)                       agree or commit to do any of the foregoing, or delegate any of the foregoing to the Company or any of its Subsidiaries or any officer or agent of the Company or Subsidiary thereof.

 

(d)                                 Action by Written Consent or Telephone.  Any action permitted or required by applicable Law or this Agreement to be taken at a meeting of the Board may be taken without a meeting if a consent in writing, setting forth the action to be taken, is signed by all of the Managers then in office.  Such consent shall have the same force and effect as a unanimous vote at a meeting and may be stated as such in any document or instrument filed with the Secretary of State of Delaware, and the execution of such consent shall constitute attendance or presence in person at a meeting of the Board.  Subject to the requirements of applicable Law or this Agreement for notice of meetings, the Managers may participate in and hold a meeting of the Board by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in such meeting shall constitute attendance and presence in person at such meeting, except where a person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened or is not called or convened in accordance with this Agreement.

 

Section 2.07                             Officers.  The Board may, from time to time, designate one or more persons to be Officers of the Company, with such titles as the Board may assign to such persons.  No Officer need be a Unitholder or a resident of the State of Delaware.  Officers so designated will have such authority and perform such duties as the Board may, from time to time, delegate to them and, unless otherwise specified by the Board, will have the authority and responsibilities generally held by officers of a Delaware corporation holding the same titles.  Any number of offices may be held by the same person.  The salaries or other compensation, if any, of the Officers and agents of the Company will be fixed from time to time by the Board.  Any Officer may resign as such at any time.  Such resignation will be made in writing and will take effect at the time specified therein, or if no time be specified, at the time of its receipt by the Board.  Any Officer may be removed as such, either with or without cause, by the Board, in its sole discretion.  Any vacancy occurring in any office of the Company may be filled by the Board.

 

Section 2.08                             Certain Powers of Nominated Directors.  Notwithstanding anything to the contrary in this Agreement, the ECP Managers or the Dynegy Managers, as applicable, shall have the sole power and authority to cause the Company to take (or refrain from taking) any action with respect to the enforcement of the Company’s and its Subsidiaries’ rights against the Principal Unitholder (or its Affiliates) that did not appoint such Managers in respect of any contract between the Company or any of its Subsidiaries and such Principal Unitholder (or its Affiliates).

 

Section 2.09                             Annual Plan.  At least sixty (60) days prior to the start of each fiscal year of the Company, or in the case of the fiscal year during which the date of this Agreement occurs, [within ten (10) days of the date of this Agreement], the Officers of the Company (or Dynegy pursuant to the Service Agreement), shall submit to the Board a proposed operating plan for such fiscal year (the “Annual Plan”). Such Annual Plan shall include: (a) a financial projection setting forth estimates of revenues, costs, fees, expenses and capital expenditures to be realized or borne

 

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by the Company or any of its Subsidiaries on a month-to-month basis for the next fiscal year, (b) a proposed operating budget for the Company and its Subsidiaries setting forth the authorized limit of the fees, costs, expenses and capital expenditures which may be incurred by the Company without additional prior approval by the Board, (c) risk management plans for the Company and its Subsidiaries, and (d) hedging strategies for the Company and its Subsidiaries.  The Board shall consider the Annual Plan for approval prior to the start of the fiscal year to which it pertains and the members of the Board shall use all reasonable efforts to resolve any disagreements as to any item contained in the Annual Plan prior to beginning of such fiscal year.  If any Annual Plan submitted to the Board in accordance with this Section 2.09 is not approved by the Board, then the Annual Plan most recently approved by the Board pursuant to this Section 2.09, as amended or modified pursuant to Section 2.06(c)(xiv), shall remain in effect as the Annual Plan for the next fiscal year, with the following adjustments: (x) all prior period non-recurring items shall be excluded, and (y) all prior period fees, costs, expenses, maintenance and on-going project-based capital expenditures and other similar items shall be increased by 5%.

 

Section 2.10                             ECP Representative.  Each of the ECP Funds has designated the ECP Representative to act as its representative with respect to the making of, and the delivery and receipt of, all notices, elections, approvals, requests or other instructions or determinations (including as to whether any condition has been met to the satisfaction of such ECP Fund) (each, a “Notice”) and to otherwise act on behalf of any or all of the ECP Funds with respect to any Notices delivered in connection with this Agreement.  The ECP Funds shall cause the ECP Representative to act at the direction of the ECP Funds holding a majority of Units held by all of the ECP Funds with respect to all such Notices.  Each of Dynegy and the Company shall direct any Notice to be made to any ECP Fund to the ECP Representative and agree that any Notice delivered under this Agreement by the ECP Representative shall be deemed to be a Notice delivered by the ECP Funds.  Any Notice made to the ECP Representative (referencing the ECP Funds) shall be deemed to have been made to the ECP Funds in the form and at the time made to the ECP Representative.

 

ARTICLE III.
  CAPITAL CONTRIBUTIONS AND DISTRIBUTIONS

 

Section 3.01                             Capital Contributions.

 

(a)                                 (i) The ECP Funds have made an initial Capital Contribution to the Company in the amount of $[·], and (ii) Dynegy has made an initial Capital Contribution to the Company in the amount of $[·].

 

(b)                                 None of the Unitholders shall be obligated to make or commit to make any additional Capital Contributions to the Company and none of the Unitholders shall be obligated to make or commit to make any loans or similar advances of capital to the Company.

 

Section 3.02                             Distributions.

 

(a)                                 Subject to the provisions of Section 18-607 of the Delaware Act and Section 2.06(c)(xii), the Board may in its sole discretion make Distributions at any time or from

 

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time to time, provided that the Board shall not authorize any Distribution without the affirmative vote of at least seventy five percent (75%) of the number of votes represented by the Managers (excluding any vacancies) if at such time any available amount of the [·](4) is drawn by the Company.(5)

 

(b)                                 Except as otherwise expressly provided in this Agreement, all Distributions shall be distributed to the Unitholders pro rata in accordance with the number of Units owned by each Unitholder as of the date of such Distribution. Any Distributions pursuant to this Section 3.02 made in error or in violation of Section 18-607(a) of the Delaware Act, will, upon demand by the Board, be returned to the Company.

 

ARTICLE IV.
  ISSUANCE OF NEW SECURITIES; RESTRICTIONS ON TRANSFERS

 

Section 4.01                             Resale of Units.

 

(a)                                 None of the Unitholders shall transfer all or any portion of its Units other than in reliance upon, and in accordance with, this Article IV.

 

(b)                                 Notwithstanding any provision in this Article IV to the contrary, a Unitholder may transfer (other than pledge) its Units to a Controlled Affiliate (an “Affiliate Transferee”) and such transfer shall not be subject to any restrictions set forth in this Article IV (other than the restrictions set forth in Section 4.01(c)).  Furthermore, a Unitholder may transfer (other than pledge) its Units to a Third Party Purchaser pursuant to Section 4.03(d) or if (i) the Principal Unitholders consent in writing to such transfer (such consent not to be unreasonably withheld, delayed or conditioned) and the Transferring Unitholder complies with the provisions of Section 4.05, and (ii) following compliance with the immediately preceding clause (i), the Unitholder complies with Section 4.06 and Section 4.07, as applicable; provided, however that a Dragging Group may exercise a Drag Along Right pursuant to Section 4.06 without first obtaining the consent of the other Principal Unitholders contemplated by the immediately preceding clause (i) so long as such Dragging Group complies with the provisions of Section 4.05.  In each case in clauses (i) and (ii), the Third Party Purchaser shall execute a joinder to this Agreement in the form attached as Exhibit B and such documents and instruments as the Board may request as necessary or appropriate to confirm such transferee as a Permitted Transferee and as a Unitholder in the Company. Any Permitted Transferee (other than an Affiliate Transferee) purchasing Units in accordance with this Article IV shall assume the rights and obligations of a “Unitholder” hereunder and no other rights or obligations; provided, however, that in the event that the ECP Funds, on the one hand, or Dynegy, on the other, sells all of their or its Units, as applicable, in a single transaction or series of related transactions in each case in compliance with this Article IV, then the ECP Funds or Dynegy, as applicable, shall be entitled to transfer to the Third Party Purchaser in such transfer or transfers all of the Manager

 

(4)  Note to Draft: To reference the liquidity facility.

 

(5)  Note to Draft: Additional Distribution terms may be required to address the parties’ agreement on treatment of Dynegy Parent’s incremental costs under the Service Agreement.

 

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nomination rights of such Party set forth in Article II and such Third Party Purchaser shall be deemed to be the “ECP Parties” or the “Dynegy Parties”, as applicable, for all purposes of this Agreement.

 

(c)                                  Notwithstanding any provision herein to the contrary, none of the Unitholders may (i) transfer any Units to an Affiliate Transferee pursuant to this Article IV unless such Affiliate Transferee executes a joinder to this Agreement in the form of Exhibit B agreeing to be bound by the relevant provisions which bind the Transferring Unitholder, or (ii) pledge any Units without the prior written consent of all of the Unitholders.

 

Section 4.02                             Issuance of New Securities; Pre-Emptive Rights.

 

(a)                                 In the event that the Company intends to issue any Units or other Equity Interests (including securities that are convertible into or exchangeable for Units or other Equity Interests) after approval of the Board pursuant to Section 2.06(c)(i) and after the date hereof, other than any Excluded Issuance (the “New Securities”), the Company shall give written notice (a “Preemption Notice”) to the Unitholders.  The Preemption Notice shall specify (i) the number of Units or other Equity Interests to be issued, the price per Unit or other Equity Interest and such Unitholder’s Pro Rata Share (such amount being such Unitholder’s “Subscription Securities”), (ii) the general purpose for which the Units or Equity Interests are being issued and (iii) the closing date of the issuance of the Units or Equity Interests (the “Issuance Date”).

 

(b)                                 The Company shall send to each Unitholder the Preemption Notice at least twenty-five (25) days prior to the Issuance Date, and no later than twelve (12) Business Days prior to the Issuance Date, each Unitholder shall either (A) commit, by written notice to the Company, to subscribe for and purchase all or part of its Subscription Securities or (B) decline to subscribe for and purchase any portion of its Subscription Securities. Any Unitholder that does not respond within twelve (12) Business Days prior to the Issuance Date shall be deemed to have declined to subscribe for and purchase all of its Subscription Securities and thereafter shall not be permitted to subscribe for and purchase any such Subscription Securities without prior approval of the Board (which approval shall be subject to the supermajority Board approval pursuant to Section 2.06(c)(i)).

 

(c)                                  If any Unitholder (each such Unitholder, a “Non-Subscribing Unitholder”) (A) declines to subscribe for all or any portion of its Subscription Securities in accordance with Section 4.02(b) (“Non-Penalized Unsubscribed Securities”), or (B) commits to subscribe for all or any portion of its Subscription Securities pursuant to the immediately preceding clause (b) but then fails to actually purchase such amount (“Penalized Unsubscribed Securities”), and any other Unitholder has subscribed for all of its Subscription Securities (each such Unitholder, a “Fully Subscribing Unitholder”), then:

 

(i)                                     each Fully Subscribing Unitholder (if any) may, but shall not be required to, subscribe for its Pro Rata Share (calculated for this purpose by not taking into account the Pro Rata Share of any Non-Subscribing Unitholder) of any Non-Penalized Unsubscribed Securities and Penalized Unsubscribed Securities (or, if another Fully Subscribing Unitholder chooses not to subscribe to such Pro Rata Share, such first Fully

 

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Subscribing Unitholder (having purchased both its Subscription Securities and its Pro Rata Share (calculated for this purpose by not taking into account the Pro Rata Share of any Non-Subscribing Unitholder) of any Non-Penalized Unsubscribed Securities and Penalized Unsubscribed Securities) may also fund the other Fully Subscribing Unitholder’s Pro Rata Share (calculated for this purpose by not taking into account the Pro Rata Share of any Non-Subscribing Unitholder) of any remaining deficiency such that after giving effect to the foregoing, the entire amount of any Non-Penalized Unsubscribed Securities and Penalized Unsubscribed Securities may be purchased by one or more Fully Subscribing Unitholders); provided, however, that any Fully Subscribing Unitholder shall be required to fund its Pro Rata Share (calculated for this purpose by not taking into account the Pro Rata Share of any Non-Subscribing Unitholder) of any Non-Penalized Unsubscribed Securities to the extent it has elected to purchase its Pro Rata Share (calculated for this purpose by not taking into account the Pro Rata Share of any Non-Subscribing Unitholder) of any Penalized Unsubscribed Securities; and

 

(ii)                                  in connection with each issuance of New Securities pursuant to this Section 4.02(c), the Company shall issue to each Fully Subscribing Unitholder the number of Units equal to the New Subscription Units.

 

(d)                                 Notwithstanding anything to the contrary in this Agreement, any ECP Fund may, in its sole discretion, cause one or more Affiliated Funds to purchase any New Securities that such ECP Fund commits to subscribe for (and any ECP Fund may, in lieu of any other ECP Fund, make any commitment hereunder that any other ECP Fund would otherwise be entitled to make) and to cause such Affiliated Fund(s) be admitted as an ECP Fund in accordance with Section 1.10, or, once such Affiliated Fund has been admitted as an ECP Fund, to cause such Affiliated Fund to increase the number of its Units by subscribing for and purchasing any future New Securities.

 

(e)                                  Notwithstanding any provision herein to the contrary, any issuance of Equity Interests (other than an Excluded Issuance) by any Subsidiary of the Company other than to the Company or a wholly owned Subsidiary of the Company shall be deemed an issuance by the Company of its Equity Interests to which the preemptive rights under this Section 4.02 shall apply.

 

Section 4.03                             ECP Put Right.

 

(a)                                 Subject to Section 4.03(b), at any time following the earliest of (i) the fourth (4th) anniversary of this Agreement and (ii) the eighteen (18) month anniversary of delivery of a Call Exercise Notice for a Partial Call, the ECP Funds shall have the right, but not the obligation, exercisable in the sole discretion of the ECP Funds, upon the terms and subject to the conditions set forth in this Section 4.03, to require Dynegy to purchase the Units owned by the ECP Funds in the manner described below (the “Put Units”) for aggregate cash consideration (or other consideration, to the extent permitted below) equal to (i) the outstanding principal amount of the Bridge Loan and any accrued and unpaid interest thereon (or, in the case of a Partial Put or Second Put Right, fifty percent (50%) of such amount) plus (ii) the ECP Consideration Amount (the “Put Right”).

 

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(b)                                 Within thirty (30) calendar days following delivery of a Put Exercise Notice, Dynegy shall have the right to (i) acquire all of the Units specified in such Put Exercise Notice; or (ii) subject to Section 4.03(c), elect to acquire only fifty percent (50%) of the Put Units (the “Partial Put”), in which case the ECP Representative shall determine the number of Units each ECP Fund will sell pursuant to such Partial Put and such Units collectively shall be deemed “Put Units” for purposes of Section 4.03(f); or (iii) subject to Section 4.03(d), decline to acquire any of the Put Units; provided, however, Dynegy shall not be permitted to elect a Partial Put if a Partial Call has previously been elected by Dynegy in connection with the exercise of its Call Right.

 

(c)                                  In the event of a Partial Put pursuant to Section 4.03(b)(ii), at any time following the first (1st) anniversary of delivery of the first Put Exercise Notice, the ECP Funds shall have the right, but not the obligation, exercisable in the sole discretion of the ECP Funds, upon the terms and subject to the conditions in this Section 4.03, to require Dynegy to purchase all, but not less than all, of the Units owned by the ECP Funds at the time (the “Remaining Put Units”) for aggregate cash consideration (or other consideration, to the extent permitted below) equal to the ECP Consideration Amount (the “Second Put Right”) by delivering a Put Exercise Notice to Dynegy pursuant to Section 4.03(e).

 

(d)                                 ECP Forced Sale.

 

(i)                                     In the event that Dynegy declines to acquire any of the Put Units pursuant to Section 4.03(b)(iii) or fails to acquire any of the Put Units pursuant to Section 4.03(g) or Section 4.03(h), without limiting any other rights or remedies of the ECP Funds in such event, the ECP Representative shall have the right, but not the obligation, to cause a sale of the Company and its Subsidiaries (the “ECP Forced Sale”) by providing written notice to the Company and Dynegy (the “ECP Forced Sale Notice”).

 

(ii)                                  In the event that the ECP Representative provides an ECP Forced Sale Notice, the Company (including the Board) shall promptly pursue a sale of the Company and its Subsidiaries (including by appointing investment banking and legal advisors which are reasonably acceptable to the ECP Representative).  The ECP Forced Sale may take the form of an equity sale, asset sale, merger or any other form whatsoever, to be determined by the ECP Representative; provided, that (i) in the case of an equity sale, the ECP Forced Sale shall be structured in a way to sell all of the Units, and (ii) in all cases, the ECP Forced Sale shall be on arms-length terms (as reasonably determined by the ECP Representative) with a third party that is not an Affiliate of any Unitholder. Each Unitholder hereby agrees to cooperate to effectuate an ECP Forced Sale and to take all actions that the ECP Representative reasonably deems necessary or desirable in connection with the foregoing, including executing any necessary or appropriate documents or forms, consenting to amendments to the Agreement to implement the foregoing and converting or exchanging its Units into shares of stock, other classes of Units or other property; provided, however that the ECP Representative shall consult with the other Principal Unitholders regarding their tax and structuring considerations relating to any such transactions and shall use reasonable efforts acting in good faith to address such tax and structuring considerations in effecting any such transaction.

 

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Notwithstanding the foregoing, (i) the Company shall not (and Dynegy shall not be obligated to) execute any definitive agreement with respect to an ECP Forced Sale unless the proceeds from such ECP Forced Sale that Dynegy is reasonably expected to receive exceeds Dynegy’s aggregate Capital Contribution as of such date (after taking into account any Distributions previously received by Dynegy), and (ii) none of the Unitholders (other than the ECP Parties) shall be required to provide indemnities as to any other person in excess of such Unitholder’s Percentage Interest of the purchase price under the ECP Forced Sale.

 

(e)                                  The ECP Representative may exercise the Put Right or the Second Put Right, as applicable, on behalf of the ECP Funds by delivery to Dynegy of a written notice given in the manner specified in Section 9.07 (the “Put Exercise Notice”) stating that the ECP Representative is exercising the Put Right or the Second Put Right, as applicable, on behalf of the ECP Funds and setting forth in such notice wire instructions for each of the ECP Funds.

 

(f)                                   The closing of the exercise of the Put Right or the Second Put Right, as applicable, (each, a “Put Right Closing”) shall take place on the sixtieth (60th) calendar day following the delivery of a Put Exercise Notice (or such earlier date as the Parties shall agree or such later date that is immediately following the obtaining of any consent or approval of any Governmental Entity or the stockholders of Dynegy Parent, in each case required to consummate such transaction) and shall occur at the offices of Latham & Watkins LLP, 885 Third Avenue, New York, New York at 10:00 a.m., New York City time (or such other place as the Parties shall agree) (each such date, a “Put Closing Date”).

 

(g)                                  At the applicable Put Right Closing, the ECP Representative shall deliver to Dynegy all of the Put Units or the Remaining Put Units, as applicable, in each case free and clear of all Liens, and shall make, or cause the applicable ECP Funds to make, individual representations (and no other representations or agreements) relating to such Put Units or Remaining Put Units (which such individual representations shall be limited to capacity, ownership of such Units to be sold by it (including its ability to convey title free and clear of all liens, encumbrances, adverse claims or similar restrictions), no conflicts with agreements to which it is a party, no conflicts with law, authority and enforceability on its part, and Dynegy shall make payment by wire transfer in immediately available funds to the accounts specified in the applicable Put Exercise Notice an aggregate amount equal to (i) the outstanding principal amount of the Bridge Loan and any accrued and unpaid interest thereon (or, in the case of a Partial Put or Second Put Right, fifty percent (50%) of such amount) plus (ii) the ECP Consideration Amount; provided that Dynegy shall be permitted to pay a portion of the consideration due to each ECP Fund in shares of common stock of Dynegy Parent solely if Dynegy Parent has not undergone a Change of Control prior to the applicable Put Right Closing and solely in the event that shares of common stock of Dynegy Parent are then listed on NYSE or another national share exchange, the value of each such share being equal to the Dynegy Parent Share Value, and provided further (i) that the aggregate number of shares of common stock of Dynegy Parent that Dynegy may use as consideration in connection with the Put Right and the Second Put Right shall not exceed a number of shares of Dynegy Parent common stock that is greater than five percent (5%) of the total number of shares of Dynegy Parent common stock outstanding prior to such issuance, and (ii) in the event that the obtaining of any consent or

 

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approval necessary for the consummation of such transaction (whether a consent or approval of a Governmental Entity, the stockholders of Dynegy Parent or otherwise), due to any portion of the consideration being in shares of common stock of Dynegy Parent, is either not obtained or is conditioned on any action (or failure to act) of the ECP Funds which would, or would reasonably be expected to, have an adverse impact on the ECP Funds or their Affiliates, as reasonably determined by the ECP Representative, then Dynegy shall not be entitled to pay a portion of the consideration due to each ECP Fund in shares of common stock of Dynegy Parent and Dynegy shall pay such amount in cash, and (iii) if fifty percent (50%) or more (by value) of the relevant ECP Consideration Amount is to be paid in the form of shares of common stock of Dynegy Parent, then Dynegy and the ECP Representative shall use reasonable efforts acting in good faith to structure the acquisition of such Put Units or such Remaining Put Units, as applicable, as a tax-free reorganization for U.S. federal income tax purposes.

 

(h)                                 Notwithstanding anything to the contrary in this Section 4.03, (i) the ECP Funds shall have the right, but not the obligation, to exercise their Put Right or Second Put Right, as applicable, within fifteen (15) days of the delivery of a Dynegy Parent Change of Control Notice, after which time, notwithstanding any right to exercise the Put Right or Second Put Right pursuant to Section 4.03(a), no such Put Right or Second Put Right may be exercised until after the Change of Control has been consummated or the agreement with respect to the Change of Control has been terminated and (ii) if the ECP Funds exercise their Put Right or Second Put Right pursuant to this Section 4.03(h), the Put Right Closing shall occur at the closing of the Change of Control of Dynegy Parent; provided that Dynegy shall take all necessary action, notwithstanding the time periods in this Section 4.03(h), to ensure that the Dynegy Parent Change of Control Notice is delivered in a timely fashion such that the ECP Funds may exercise their Put Right or Second Put Right pursuant to clause (i) and the Put Right Closing can occur at the closing of the Change of Control of Dynegy Parent.  Subject to the proviso in the immediately preceding sentence, each of the other terms and procedures of this Section 4.03 shall apply to any such exercise of the Put Right or Second Put Right, as applicable,

 

Section 4.04                             Dynegy Call Right.

 

(a)                                 At any time after the date hereof, Dynegy shall have the right, but not the obligation, exercisable in the sole discretion of Dynegy, upon the terms and subject to the conditions set forth in this Section 4.04, to purchase from the ECP Parties (i) if a Partial Put has not previously been elected by Dynegy in connection with the exercise of the Put Right, all of their Units or 50% of their Units (a “Partial Call”), and (ii) if a Partial Put has previously been elected by Dynegy in connection with the exercise of the Put Right, all of their Units (in each case, as applicable, the “Call Units”), for aggregate cash consideration equal to (i) the outstanding principal amount of the Bridge Loan and any accrued and unpaid interest thereon (or in the case of a Partial Call or Second Call Right, fifty percent (50%) of such amount) plus (ii) the greater of the ECP Consideration Amount and the 2.25x Value (such greater amount plus the aggregate amount in clause (i), the “Final Call Purchase Price”), and, upon exercise of such right, each ECP Party shall be required to sell such ECP Party’s Units to Dynegy (the “Call Right”).  If Dynegy elects a Partial Call in connection with its exercise of the Call Right, the ECP Representative shall determine the number of Units each ECP Party will sell pursuant to such Partial Call.

 

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(b)                                 Dynegy may exercise a Call Right by delivery to the ECP Representative of a written notice given in the manner specified in Section 9.07 (the “Call Exercise Notice”) stating that Dynegy is exercising the Call Right.  The ECP Representative shall provide Dynegy with the wire instructions for each ECP Party within three (3) Business Days of Dynegy giving the ECP Representative the Call Exercise Notice (“Call Option Wire Notice”).

 

(c)                                  In the event of a Partial Call pursuant to Section 4.04(a), at any time after the consummation of such Partial Call, Dynegy shall have the right, but not the obligation, exercisable in the sole discretion of Dynegy, upon the terms and subject to the conditions set forth in this Section 4.04, to purchase from the ECP Parties all, but not less than all, of the Units owned by the ECP Parties at the time (the “Remaining Call Units”) for aggregate consideration equal to the ECP Consideration Amount (the “Second Call Right”) by delivering a Call Exercise Notice to Dynegy pursuant to Section 4.04(b).

 

(d)                                 The closing of the exercise of the Call Right or the Second Call Right (each, a “Call Right Closing”) shall take place on the fourteenth (14th) Business Day following delivery of the Call Exercise Notice (or such earlier date as the parties shall agree or such later date that is immediately following the obtaining of any consent or approval of any Governmental Entity, in each case required to consummate such transaction) and shall occur at the offices of Latham & Watkins LLP, 885 Third Avenue, New York, New York at 10:00 a.m., New York City time (or such other place as the Parties shall agree) (such date, the “Call Closing Date”).

 

(e)                                  At the applicable Call Right Closing, the ECP Parties shall deliver to Dynegy the Call Units or the Remaining Call Units, as applicable, free and clear of all Liens, and shall make, or cause the applicable ECP Parties to make, individual representations (and no other representations or agreements) relating to such Call Units or Remaining Call Units (which such individual representations shall be limited to capacity, ownership of such Units to be sold by it (including its ability to convey title free and clear of all liens, encumbrances, adverse claims or similar restrictions), no conflicts with agreements to which it is a party, no conflicts with law, authority and enforceability on its part, and Dynegy shall make payment (entirely in cash) by wire transfer in immediately available funds to the accounts specified in the Call Option Wire Notice an aggregate in amount equal to the Final Call Purchase Price.

 

(f)                                   After the delivery of a Call Exercise Notice, the ECP Funds may not exercise a Put Right until the sale of the Call Units has been consummated.

 

Section 4.05                             Right of First Offer.

 

(a)                                 In the event that any Unitholder (a “Transferring Unitholder”) desires to transfer any or all of its Units (the “ROFO Units”) to any person other than to an Affiliate Transferee (the “Third Party Purchaser”) and other than pursuant to Section 4.03 or Section 4.04, then the Transferring Unitholder shall first give written notice (the “ROFO Notice”) of such desire to the other Unitholders (the “ROFO Unitholders”).

 

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(b)                                 Within thirty (30) days (the “ROFO Offer Period”) of receipt of the ROFO Notice by a ROFO Unitholder, such ROFO Unitholder shall have a right to make an offer (a “ROFO Offer”) to purchase all, but not less than all, of the ROFO Units (the “ROFO Sale”).

 

(c)                                  Each ROFO Offer (i) shall set forth the proposed amount and form of consideration and terms and conditions of payment offered by the ROFO Unitholder and a summary of any other material terms pertaining to the transfer and (ii) must remain open for at least thirty (30) days following the date on which the Transferring Unitholder receives the ROFO Offer.

 

(d)                                 If the Transferring Unitholder does not receive any ROFO Offer from a ROFO Unitholder within the ROFO Offer Period, or if all ROFO Unitholders inform the Transferring Unitholder in writing that they will not be exercising their right of first offer rights hereunder, then the Transferring Unitholder may, subject to the requirements of Section 4.05(h), transfer all of the ROFO Units to a Third Party Purchaser at a price and on terms and conditions acceptable to such Transferring Unitholder.

 

(e)                                  If the Transferring Unitholder receives a ROFO Offer within the ROFO Offer Period, the Transferring Unitholder may accept or reject such ROFO Offer in its sole discretion.

 

(f)                                   If a Transferring Unitholder accepts a ROFO Offer, then the Transferring Unitholder and the ROFO Unitholder shall negotiate in good faith to consummate the ROFO Offer as promptly as reasonably practicable and in any event within forty-five (45) days from the date of the ROFO Offer, and shall not transfer any ROFO Units described in such ROFO Offer to any Third Party Purchaser.

 

(g)                                  If the Transferring Unitholder rejects a ROFO Offer from a ROFO Unitholder, then the Transferring Unitholder may, subject to the requirements of Section 4.05(h), sell any ROFO Units which are not subject to any accepted ROFO Offer to a Third Party Purchaser at a price higher than that offered in all of the rejected ROFO Offers, and on such terms and conditions which, when taken as a whole, are at least as favorable in the aggregate to the Transferring Unitholder as those set forth in the most favorable rejected ROFO Offer (as determined by the Board acting in good faith).

 

(h)                                 The Transferring Unitholder may only sell ROFO Units to a Third Party Purchaser as permitted under Section 4.05(d) and Section 4.05(g), and the Transferring Unitholder shall consummate such sale within one hundred and eighty (180) days of the conclusion of the ROFO Offer Period; provided that to the extent the Transferring Unitholder has used commercially reasonable efforts to obtain all required approvals and consents prior to the expiration of such 180-day period, the Transferring Unitholder may extend such 180-day period by up to 120 days if necessary to obtain any required regulatory approvals or third party consents.

 

(i)                                     If the Transferring Unitholder does not meet the deadlines described in Section 4.05(h), then any proposed transfer by such Transferring Unitholder shall once again be subject to the terms and conditions of this Section 4.05.

 

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(j)                                    In the event of a potential sale by a Transferring Unitholder to a Third Party Purchaser pursuant to the terms of Section 4.05(h), the Managers and Officers shall (i) permit such potential Third Party Purchaser, after executing a confidentiality agreement in a form satisfactory to the Board, to conduct a due diligence review of the Company and its business, operations, prospects, assets, liabilities, financial condition, and results of operations, and (ii) make available the officers and technical personnel of the Company, during normal business hours, upon reasonable advance notice and at such Transferring Unitholder’s sole cost and expense, for the purpose of making presentations to, and answering questions from, such potential Third Party Purchaser.

 

Section 4.06                             Drag Along Rights.

 

(a)                                 In the event that (x) one or more Unitholders that in the aggregate hold more than fifty percent (50%) of the issued and outstanding Units (such Unitholder or Unitholders, the “Dragging Group”) desires to transfer in one transaction, or a series of related bona fide transactions (other than pursuant to Section 4.03 or Section 4.04), 100% of the relevant Dragging Group’s Units to a Third Party Purchaser, after complying with Section 4.05, and (y) in the event that Dynegy and its Affiliate Transferees hold any of the Units held by the Dragging Group, the aggregate proceeds to the ECP Funds from such transfer would equal or exceed an amount equal to the Final Call Purchase Price (a “Drag Along Sale”), then the Dragging Group shall have the right (a “Drag Along Right”), but not the obligation, to require all (and not less than all) other Unitholders in the Company (such other Parties, the “Non-Dragging Unitholders”), to tender for purchase by the Third Party Purchaser, on the same terms and conditions as apply to the Dragging Group, all of the Units held by the Non-Dragging Unitholder.

 

(b)                                 If the Dragging Group elects to exercise its Drag Along Right under this Section 4.06, the Dragging Group shall notify each other Party in writing (collectively, the “Drag Along Notices”).  Each Drag Along Notice shall set forth (i) the proposed amount and form of consideration and terms and conditions of payment offered by the Third Party Purchaser(s) and a summary of any other material terms pertaining to the transfer (“Drag Along Terms”), (ii) in the event Dynegy and its Affiliate Transferees hold any of the Units held by the Dragging Group, the Dragging Group’s calculation of the Final Call Purchase Price, and (iii) in the event that Dynegy and its Affiliate Transferees hold any of the Units held by the Dragging Group, a statement of the Dragging Group’s good-faith belief that proceeds from the Drag Along Sale would equal or exceed the Final Call Purchase Price.  The Drag Along Notices shall be given at least thirty (30) days before the closing of the proposed Drag Along Sale.

 

(c)                                  Upon receipt of a Drag Along Notice, each Non-Dragging Unitholder shall be obligated to sell all of its Units on the Drag Along Terms.  Each Non-Dragging Unitholder shall (i) receive the benefits of the same terms and conditions as the Dragging Group in connection with such transfer, including receiving the same valuation of consideration and form of consideration, and (ii) only make representations, warranties and covenants and assume any post-closing obligations that are in each case the same as the Dragging Group (adjusted as appropriate for each Party’s Percentage Interest); provided, however, that notwithstanding anything to the contrary in this Agreement, none of the Non-Dragging Unitholders shall be required to provide indemnities as to any other person in excess of such Unitholder’s Percentage Interest of the

 

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purchase price under the Drag Along Sale; provided, that for the avoidance of doubt, in no event shall a Non-Dragging Unitholder be required to sell less than all of its Units in a Drag Along Sale.

 

Section 4.07                             Tag Along Rights.

 

(a)                                 If any Unitholder proposes to transfer to a Third Party Purchaser the Units held by it and its Affiliates (collectively referred to in this Section 4.07 as the Transferring Unitholder) that in the aggregate exceed fifteen percent (15%) of the issued and outstanding Units, after complying with Section 4.05, in a single transfer or a series of related transfers (other than pursuant to Section 4.03 or Section 4.04), then each other Unitholder shall have the right (a “Tag Along Right”) to require that the Third Party Purchaser purchase (a “Tag Along Sale”) from such other Unitholder up to a number of Units equal to (i) the total number of Units that the proposed Third Party Purchaser has agreed or committed to purchase multiplied by (ii) the Pro Rata Share of such other Unitholder, on the same terms and conditions as apply to the Transferring Unitholders (the “Tag Along Terms”).

 

(b)                                 The Transferring Unitholders pursuant to Section 4.07(a) shall notify each other Unitholder in writing of any Tag Along Right at least thirty (30) days prior to the date on which the Transferring Unitholders expect to consummate the Tag Along Sale (the “Tag Along Notice”).  The Tag Along Notice shall specify the number of Units which the Third Party Purchaser intends to purchase in the Tag Along Sale as well as the price to be paid by the Third Party Purchaser (on a per Unit basis) and a reasonably detailed description of all of the material terms and conditions of such Tag Along Sale.  The Tag Along Right may be exercised by each other Principal Unitholder by delivery of a written notice to the Transferring Unitholder (the “Tag Along Exercise Notice”) within ten (10) days following receipt of the Tag Along Notice.

 

(c)                                  Each other Unitholder shall (i) be offered the benefits of the same terms and conditions as the Transferring Unitholder in connection with such transfer, including receiving the same valuation of consideration and form of consideration and (ii) only make representations, warranties and covenants and assume any post-closing obligations that are in each case the same as the Transferring Unitholder; provided, however, that notwithstanding anything to the contrary in this Agreement, none of the other Unitholders shall be required to provide indemnities as to any other person in excess of such Unitholder’s Percentage Interest of the purchase price under the Tag Along Sale. Any decision by the Third Party Purchaser to reduce the number of Units included in the Tag Along Notice shall result in a corresponding pro rata reduction of the number of Units to be sold by each Transferring Unitholder and each other Unitholder, as applicable.

 

Section 4.08                             Void Assignment.  Any purported transfer of any Equity Interests of the Company in contravention of this Agreement shall be void and ineffectual and shall not bind or be recognized by the Company or any other Party, and the Company shall not record such transfer on its books or treat any purported transferee of such Equity Interests as the owner of such Equity Interests for any purpose.  In the event of any transfer in contravention of this Agreement, the purported transferee shall have no right to any profits, losses or distributions of the Company or any other rights of a Unitholder.

 

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Section 4.09                             Cooperation.  In the event of (i) the exercise of a Drag Along Right pursuant to Section 4.06, or (ii) the exercise of a Tag Along Right pursuant to Section 4.07 or (iii) the ECP Forced Sale, subject to the last sentence of Section 4.03(d)(ii), each Party shall consent to and raise no objections against the proposed transfer or transactions contemplated thereby.  Without limiting the generality of the foregoing, each Party agrees to:  (A) consent to and raise no objections against the transaction, (B) execute any unit purchase agreement, merger agreement or other agreement entered into with the Third Party Purchaser with respect to the transaction setting forth the Drag Along Terms or Tag Along Terms, as applicable, or the sale terms in the event of an ECP Forced Sale, and in each case any ancillary agreement with respect thereto, (C) vote the Units held by any Party in favor of the transaction, and (D) refrain from the exercise of, and waive, dissenters’ appraisal rights with respect to the transaction.

 

Section 4.10                             Expenses.  Subject to the following sentence, each Unitholder shall bear its own expenses incurred in connection with this Article IV, and any Unitholder effecting a transfer pursuant to this Article IV (other than pursuant to an ECP Forced Sale) shall reimburse the Company for any expenses incurred by the Company in connection therewith.  All reasonable and documented fees and expenses of experts and advisors of the Company and the Unitholders incurred in connection with an ECP Forced Sale shall be borne by the Company.

 

Section 4.11                             Bridge Loan.

 

(a)                                 If the Bridge Loan (together with accrued and unpaid interest thereon) has not been repaid in full on or prior to the one (1) year anniversary of the date of this Agreement (the “Repayment Option Date”), then, on the Repayment Option Date (or the first Business Day thereafter to the extent the Repayment Option Date does not fall on a Business Day), and not thereafter, Dynegy may, or may cause any of its Controlled Affiliates to, contribute to the Company an amount up to the Option Bridge Loan Amount, in exchange for Units at the price per Unit as of the date of this Agreement (such transaction, the “Dynegy Repayment Option”), and the Company shall use the proceeds from such contribution to partially repay the Bridge Loan.

 

(b)                                 If the Bridge Loan (together with accrued and unpaid interest thereon) has not been repaid in full and Dynegy does not exercise the Dynegy Repayment Option in full on the Repayment Option Date (or the first Business Day thereafter to the extent the Repayment Option Date does not fall on a Business Day), at any time after the Repayment Option Date, ECP may, or may cause the lender under the Bridge Loan to, convert all or any portion of the then Outstanding Bridge Loan Amount (all or such portion thereof, the “Conversion Amount”) into the number of Units equal to the quotient of (i) the product of (A) the Conversion Amount, multiplied by (B) the Conversion Multiple, divided by (ii) the price per Unit as of the date of this Agreement, and such Conversion Amount shall be deemed repaid in accordance with the terms of the Bridge Loan Agreement.

 

(c)                                  If Dynegy exercises the Dynegy Repayment Option in full, on the Repayment Option Date, ECP shall, or shall cause the lender under the Bridge Loan to, convert the remaining Outstanding Bridge Loan Amount into Units at the price per Unit as of the date of this

 

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Agreement, and such converted amount shall be deemed repaid in accordance with the terms of the Bridge Loan Agreement.

 

(d)                                 None of the terms or procedures set forth in Section 4.02 shall apply to this Section 4.11.  The Board shall take all necessary action to effectuate the provisions of this Section 4.11, including authorizing and issuing the Units in respect of any Conversion Amount or in respect of a conversion pursuant to Section 4.11(a) or Section 4.11(c). Notwithstanding anything to the contrary in Section 2.06(c), no vote of the Board shall be required to effectuate the issuance of any Units pursuant to this Section 4.11.

 

ARTICLE V.
  TERMINATION; LIQUIDATION

 

Section 5.01                             Initial Public Offering.  Article II, Article III and Article IV shall automatically terminate upon the consummation of an Initial Public Offering.

 

Section 5.02                             Liquidation; Voluntary Termination. This Agreement shall terminate automatically upon the complete liquidation of the Company or an agreement for the sale, lease or other disposition by the Company of all or substantially all of the Company’s assets, or otherwise with the written consent of each Principal Unitholder; provided that such transaction is duly approved pursuant to, and complies with, the other provisions of this Agreement.

 

Section 5.03                             Dissolution.  The Company will dissolve and its affairs will be wound up upon the first to occur of any of the following:

 

(a)                                 the approval of the Board in accordance with Section 2.06(c)(iv); or

 

(b)                                 the occurrence of any other event causing dissolution of the Company under the Delaware Act;

 

provided that, upon dissolution pursuant to clause (b) of this Section 5.03, any or all of the remaining Unitholders may elect to continue the business of the Company within 90 days after the occurrence of the event causing such dissolution.  The death, resignation, withdrawal, bankruptcy, insolvency or expulsion of any Unitholder will not dissolve the Company.

 

For the avoidance of doubt, any and all distributions in the event of a liquidation, after the payment of all debts and liabilities of the Company and payment of the expenses of dissolution and liquidation, will be made accordance with Section 3.02.

 

ARTICLE VI.
  [RESERVED]

 

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ARTICLE VII.
  COVENANTS

 

Section 7.01                             Confidentiality.

 

(a)                                 Each Party agrees and acknowledges that the Managers nominated by the Principal Unitholders may share confidential, non-public information about the Company and any of its Subsidiaries with any of the Principal Unitholders.

 

(b)                                 No Party shall disclose any information relating to the Company or any Subsidiary thereof (the “Confidential Information”) without the prior written consent of the Board; provided that (i) Confidential Information may be disclosed if required by applicable Law, legal process or any stock exchange or other self-regulatory organization (subject to the provisions of Section 7.01(c)) and (ii) each Party may disclose Confidential Information to its Representatives that are actively engaged in the monitoring or oversight of such Party’s investment in the Company and its Subsidiaries, so long as (x) such Representatives agree to keep such information confidential or the Party directs such Representative to keep such information confidential, and in either case such Party shall be liable for any failure on the part of its Representatives to so keep such information confidential, and to limit their use of such information to the use and monitoring of such Party’s investment in the Company and its Subsidiaries, and (y) the sharing of such Confidential Information with such Representatives does not violate any applicable Law; provided, further, that the ECP Funds, their Affiliates and their respective Representatives shall be permitted to disclose such information regarding the direct or indirect investment in the Company by such ECP Funds or Affiliates, as applicable, the financial performance and operations of the Company and its Subsidiaries, and such other information relevant to such investment in the Company to the limited partners, investors or other direct or indirect equity owners of, or prospective investors of, the ECP Funds or their Affiliates who are under customary duties or obligations of confidentiality and provided, further that any Confidential Information may be shared with bona fide potential acquirors of Units to the extent the applicable Transfer would be in accordance with Article IV of this Agreement and so long as the recipient of such Confidential Information agrees to keep it confidential pursuant to a customary confidentiality agreement enforceable by the Company as a party thereto or as a third party beneficiary thereunder.  The term “Confidential Information” does not include information that (A) is or has become generally available to the public other than as a result of a direct or indirect disclosure by a Party or any of its Representatives in breach of the provisions hereof or (B) was within the possession of a Party or any of its Representatives from a source other than the Company prior to its being furnished to such Party by or on behalf of the Company; provided, that in the case of (B) above, the source of such information was not known by such Party to be bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation of confidentiality to, the Company with respect to such information.

 

(c)                                  In the event that any Party is required by applicable Law, legal process or any stock exchange or other self-regulatory organization, to disclose any of the Confidential Information, such Party shall promptly notify the Company in writing so that the Company may seek a protective order or other appropriate remedy.  Nothing herein shall be deemed to prevent any Party from honoring a subpoena (or governmental order) that seeks discovery of the Confidential Information if (A) a motion for a protective order, motion to quash and/or other motion filed to prevent the production or disclosure of the Confidential Information has been denied or is not made; provided, however, that such Party shall disclose only that portion of the Confidential Information which such Party’s legal counsel advises is required and that it exercise commercially reasonable efforts to preserve the confidentiality of the remainder of the

 

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Confidential Information; or (B) the Company consents in writing to having the Confidential Information produced or disclosed pursuant to the subpoena (or governmental order).  In no event will any Party or any of its Representatives oppose any action by the Company to obtain a protective order or other relief to prevent the disclosure of the Confidential Information or to obtain reliable assurance that confidential treatment will be afforded the Confidential Information.  The Company shall promptly reimburse the Party for any reasonable costs and expenses (including fees and disbursements of counsel) incurred in connection with any action that the Party may be required to take, or is requested by the Company to take, under this Section 7.01.

 

Section 7.02                             Information Rights.

 

(a)                                 The Company will furnish each of the ECP Funds and Dynegy, so long as each such Principal Unitholder holds any Units, as soon as available and in any event:

 

(i)                                     within the later of (i) ninety (90) days after the end of each fiscal year of the Company, and (ii) the period of time provided in the Dynegy Parent Credit Agreement with respect to Dynegy Parent’s similar obligation therein (so long as the Dynegy Parent Credit Agreement is in effect), the consolidated balance sheet of the Company and its Subsidiaries as at the end of each such fiscal year and the consolidated statements of income, cash flows and changes in unitholders’ equity for such year of the Company and its Subsidiaries, setting forth in each case in comparative form the figures for the next preceding fiscal year, accompanied by the report of independent certified public accountants of recognized national standing, to the effect that, except as set forth therein, such consolidated financial statements have been prepared in accordance with GAAP applied on a basis consistent with prior years and fairly present in all material respects the financial condition of the Company and its Subsidiaries at the dates thereof and the results of their operations and changes in their cash flows and unitholders’ equity for the periods covered thereby;

 

(ii)                                  within the later of (i) forty-five (45) days after the end of each quarterly accounting period in each fiscal year (other than the last fiscal quarter of the fiscal year), and (ii) the period of time provided in the Dynegy Parent Credit Agreement with respect to Dynegy Parent’s similar obligation therein (so long as the Dynegy Parent Credit Agreement is in effect), unaudited consolidated balance sheets of the Company and its Subsidiaries as at the end of each such fiscal quarter and for the current fiscal year to date and unaudited consolidated statements of income, cash flows and changes in unitholders’ equity for such fiscal quarter and for the current fiscal year to date, in each case setting forth in comparative form the figures for the corresponding periods of the previous fiscal quarter, all in reasonable detail and all prepared in accordance with GAAP applied on a basis consistent with prior years and fairly present in all material respects the financial condition of the Company and its Subsidiaries at the dates thereof and the results of their operations and changes in their cash flows and unitholders’ equity for the periods covered thereby and an update of material developments affecting the business and operations of the Company and its Subsidiaries; and

 

24

 

(iii)                               within forty five (45) days after the end of each monthly accounting period in each fiscal quarter (other than the last month of the fiscal quarter) the Monthly Management Plan for the applicable month (beginning with the first full calendar month during which this Agreement is executed).

 

(b)                                 To the extent permitted by, and not inconsistent with, applicable Law, and without limiting the provisions of Section 7.03, regularly reported financial information and such other information as each of the ECP Funds and Dynegy, so long as such Principal Unitholder holds at least five percent (5%) of the issued and outstanding Units, may reasonably request or any other information that is delivered by the Company or the Board to any of the Principal Unitholders shall be made available to such Principal Unitholder.

 

(c)                                  Without limiting the provisions of Section 7.03, upon the request of any of the ECP Funds or Dynegy, so long as such Principal Unitholder holds at least five percent (5%) of the issued and outstanding Units, such Principal Unitholder and any Representatives of such Principal Unitholder shall have (i) reasonable access (at reasonable times and upon reasonable notice) to all executive officers and accountants of the Company and its Subsidiaries and (ii) reasonable access (at reasonable times and upon reasonable notice) to all premises, properties, books, records (including tax records), contracts, financial and operating data and information and documents pertaining to the Company and its Subsidiaries and shall be entitled to make copies, at such Unitholder’s sole expense, of such books, records, contracts, data, information and documents as such Principal Unitholder or its Representatives may reasonably request.

 

Section 7.03                             Management Rights Letter. So long as any of the ECP Funds owns any Units, each such ECP Fund will have the right to inspect the books and records of the Company and to consult with and advise the management of the Company and any of its Subsidiaries (including the right to meet with management personnel at least quarterly at the request of such ECP Fund) on matters relating to the business and financial affairs of the Company and any of its Subsidiaries.  The rights granted to the ECP Funds under this Section 7.03 are intended to constitute “management rights” within the meaning of U.S. Department of Labor Regulation § 2510.3-101(d)(3)(ii), and the Company and its Subsidiaries will be operated consistent with the status of the Company as a “venture capital investment” of each of the ECP Funds.

 

Section 7.04                             Limitation of Duties; Separate Interests.  No Unitholder or Manager (in its or his capacity as such) shall have any duties (including fiduciary duties) or liabilities relating thereto to the Company or the other Unitholders or Managers, except for the implied covenant of good faith and fair dealing and except as may be specifically provided herein or required by any provisions of the Delaware Act or other applicable Law that cannot be waived.  Accordingly, subject to the preceding sentence, each Manager shall be entitled to act solely on behalf, and in the interests, of the Unitholder that has designated such Manager.  In the event that any Unitholder or its Affiliates acquires knowledge of a potential transaction or matter that may be a corporate opportunity for the Company, its Subsidiaries or any of their Affiliates, no such Unitholder or Affiliate will have any duty (contractual or otherwise) to communicate or present such corporate opportunity to the Company, its Subsidiaries or any of their Affiliates and, notwithstanding any provision of this Agreement to the contrary, will not be liable to the Company, its Subsidiaries, any of the Unitholders or any of their respective Affiliates for breach

 

25

 

of any duty (contractual or otherwise) by reason of the fact that such Unitholder or Affiliate directly or indirectly pursues or acquires such opportunity for itself, directs such opportunity to another person, or does not present such opportunity to the Company, its Subsidiaries, any of the Unitholders or any of their respective Affiliates.  Furthermore, the Company, on behalf of itself and its Subsidiaries, and each Principal Unitholder acknowledges and affirms that each ECP Fund and its respective Permitted Transferees and Affiliates and each person who is a Board representative or nominee of such ECP Fund or its Permitted Transferees (the “Affiliated Parties”) (i) have participated (directly or indirectly) and will continue to participate (directly or indirectly) in private equity, venture capital and other direct investments in corporations, joint ventures, limited liability companies and other entities (“Other Investments”), including Other Investments engaged in various aspects of the power generating business (and related services businesses) that may, are or will be competitive with the Company’s business or that could be suitable for the Company, (ii) have interests in, participate with, aid and maintain seats on the board of directors or similar governing bodies of, Other Investments, (iii) may develop or become aware of business opportunities for Other Investments; and (iv) may or will, as a result of or arising from the matters referenced in this Section 7.04, the nature of the Affiliated Parties’ businesses and other factors, have conflicts of interest or potential conflicts of interest.

 

Section 7.05                             FIRPTA Compliance.  If requested by any Principal Unitholder in writing, the Company shall promptly provide such Principal Unitholder with a duly executed statement pursuant to Treasury Regulation Section 1.897-2(h) informing such Principal Unitholder whether or not the Units constitute a “United States real property interest” (and shall comply with the related notice requirements in Treasury Regulation Section 1.897-2(h)(2)).

 

Section 7.06                             Notification of Certain Transactions.

 

(a)                                 Without limiting the obligations set forth in Section 7.06(b), each Unitholder shall provide notice to the Company and the Principal Unitholders of any acquisition or other transaction through which it acquires directly, or becomes an “affiliate” as defined in 18 C.F.R. § 35.36 of an entity that owns, (i) electric generation, transmission or distribution assets, (ii) intrastate natural gas transportation, storage or distribution facilities, or (iii) physical coal supply sources or coal transportation, in each case no later than five days following the closing of such transaction.  Such notice shall include information sufficient for the Company or any entity in which the Company owns an equity interest to make any necessary change-in-status filing with the Federal Energy Regulatory Commission and otherwise to take any actions required to maintain its entitlement to market-based rate authority under Section 205 of the Federal Power Act.

 

(b)                                 As soon as reasonably practicable after Dynegy reasonably determines that the provision of a Dynegy Parent Change of Control Notice is necessary to provide the ECP Funds the opportunity to exercise their Put Right or Second Put Right based on the occurrence of any of the events described in the definition thereof, Dynegy shall provide a Dynegy Parent Change of Control Notice to the ECP Representative.

 

Section 7.07                             Dispute Resolution.  Each of the ECP Representative and Dynegy shall jointly determine all components of the calculation of the Put/Call Purchase Price, the 2.25x

 

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Value and the Dynegy Parent Share Value.  If after a reasonable negotiation period, the ECP Representative and Dynegy are unable to reach an agreement on any such component, either such Party may engage an independent nationally-recognized investment banking or valuation firm selected by such Party, acting reasonably, to determine such component; provided, that in determining such component, the valuation firm must (x) use the methodologies set forth in this Agreement with respect to calculating each such component, if applicable, and (y) not assign a value greater than the greatest value claimed by the ECP Representative or Dynegy for such component, or less than the smallest value claimed by the ECP Representative or Dynegy for such component, which determined amount shall constitute the value of such component for all purposes of this Agreement. The fees of the valuation firm shall be split equally by the ECP Representative and Dynegy.

 

Section 7.08                             Registration Rights.  The Unitholders agree that in the event of an IPO, the Company will enter into a registration rights agreement with each Principal Unitholder containing customary provisions for a transaction of this type, including the right of each Principal Unitholder to make customary demand registration requests, piggyback registration requests, and when the Company is eligible for shelf registration, continuous shelf registration requests, subject to customary carve-back provisions and other exceptions.

 

ARTICLE VIII.
  INDEMNIFICATION; LIMITATION OF LIABILITY

 

Section 8.01                             Indemnification; Limitation of Liability.

 

(a)                                 Indemnification.  Except as limited by applicable Law and subject to the provisions of this Section 8.01, the Managers of the Company, and the directors or managers of each Subsidiary thereof (each an “Indemnitee”), shall not be liable for, and shall be indemnified and held harmless by the Company against, any losses, liabilities and reasonable expenses (including attorneys’ fee) (each, a “Loss”), arising from proceedings in which such Indemnitee may be involved, as a party or otherwise, by reason of he or she being a Manager of the Company, or director or manager of any Subsidiary thereof, or by reason of his or her involvement in the management of the affairs of the Company or its Subsidiaries, whether or not he or she continues to be such at the time any such Loss is paid or incurred.  Notwithstanding the foregoing, an Indemnitee shall not be held harmless or indemnified under this Section 8.01 for any Losses arising out of the fraud, intentional misconduct, or knowing or reckless breach of Indemnitee’s obligations under this Agreement, or bad faith of such Indemnitee.  The rights of indemnification provided in this Section 8.01 are in addition to any rights to which an Indemnitee may otherwise be entitled by contract or as a matter of Law.  Without limiting the foregoing, an Indemnitee shall be entitled to indemnification by the Company against reasonable expenses (as incurred), including attorneys’ fees, incurred by the Indemnitee in connection with the defense of any action to which the Indemnitee may be made a party (without regard to the success of such defense), to the fullest extent permitted under the provisions of the DGCL or any other applicable statute.

 

(b)                                 Payments Prior to Final Disposition.  Except as limited by applicable Law, expenses incurred by an Indemnitee in defending any proceeding (except a proceeding by or in

 

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the right of the Company or any Principal Unitholder against such Indemnitee) will be paid by the Company in advance of the final disposition of the proceeding, upon receipt of a written undertaking by or on behalf of such Indemnitee to repay such amount if such Indemnitee is determined pursuant to this Section 8.01 or adjudicated to be ineligible for indemnification.  This undertaking shall be an unlimited general obligation of the Indemnitee but does not need to be secured unless so determined by the Board.

 

(c)                                  Heirs and Representatives.  The indemnification provided by this Section 8.01 shall inure to the benefit of the heirs and personal representatives of each Indemnitee.

 

(d)                                 Officers and Agents.  The Company may, at the direction of the Board, indemnify and advance expenses to any Officer, employee or agent of the Company or its Subsidiaries to the same extent and subject to the same conditions under which it may indemnify and advance expenses under Section 8.01(a) and Section 8.01(b).

 

(e)                                  Not Exclusive.  The right to indemnification and the advancement and payment of expenses conferred in this Section 8.01 shall not be exclusive of any other right that a Manager or other person indemnified pursuant to this Section 8.01 may have or hereafter acquire under any Law or provision of this Agreement.

 

(f)                                   No Unitholder Personal Liability for Indemnification.  Any indemnification pursuant to this Section 8.01 shall be made only out of the assets of the Company and shall not cause any Principal Unitholder to incur any personal liability or result in any liability of any Principal Unitholder to any third party.

 

(g)                                  Priority.  The Company hereby acknowledges that each Indemnitee that is a nominee of Dynegy or any of the ECP Funds, or heir or representative of any such nominee (each, a “JV Indemnitee”), may have certain rights to indemnification, advancement of expenses and/or insurance provided by or on behalf of Dynegy or its Affiliates or the ECP Funds or their Affiliates, as applicable (collectively, the “Sponsor Indemnitors”).  Notwithstanding anything to the contrary in this Agreement:  (i) the Company is the indemnitor of first resort and the Sponsor Indemnitors are the indemnitors of last resort in connection with any claims for indemnification from the JV Indemnitees, (ii) the Company will be required to advance the full amount of expenses incurred by each JV Indemnitee and will be liable for the full amount of all Losses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by this Section 8.01, without regard to any rights each JV Indemnitee may have against the Sponsor Indemnitors, and (iii) the Parties irrevocably waive, relinquish and release the Sponsor Indemnitors from any and all claims against the Sponsor Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.  Notwithstanding anything to the contrary in this Agreement, no advancement or payment by the Sponsor Indemnitors on behalf of an JV Indemnitee with respect to any claim for which such JV Indemnitee has sought indemnification or advancement of expenses from the Company will affect the foregoing and the Sponsor Indemnitors will have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such JV Indemnitee against the Company.  The Sponsor Indemnitors are express third party beneficiaries of the terms of this Section 8.01(g).

 

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Section 8.02                             D&O Insurance.  The Company shall purchase and maintain director and officer liability insurance (“D&O Insurance Policy”) in the amount approved by the Board on behalf of any person who is or was a Manager or Officer of the Company, or any director, officer or manager of any Subsidiary thereof, against any liability asserted against such person or incurred by such person in any capacity identified in Section 8.01 or arising out of such person’s status as an Indemnitee, whether or not the Company would have the power to indemnify such person against that liability under Section 8.01.

 

ARTICLE IX.
  GENERAL PROVISIONS

 

Section 9.01                             Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, heirs, legatees, successors and assigns.

 

Section 9.02                             Specific Performance.  Each Party, in addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, shall be entitled to specific performance of the Party’s rights under this Agreement.  Each Party agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by the Party of the provisions of this Agreement and each Party hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.

 

Section 9.03                             Governing Law.  This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware, regardless of the Laws that might otherwise govern under applicable principles of conflicts of Laws thereof.

 

Section 9.04                             Submission to Jurisdiction; Consent to Service of Process..

 

(a)                                 Each of the Parties hereto hereby (i) irrevocably submits to the exclusive jurisdiction of the court of chancery of the state of Delaware (or, if the chancery court of the state of Delaware declines to accept jurisdiction over a particular matter, any state or federal court within the state of Delaware) over all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this agreement, (ii) irrevocably waives, to the fullest extent permitted by applicable Law, any objection which it may now or hereafter have to the laying of venue of any such dispute, claim or cause of action brought in such court or any defense of inconvenient forum for the maintenance of such dispute and (iii) agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.

 

(b)                                 Each of the Parties hereto hereby consents to process being served by any party to this Agreement in any Legal Proceeding by the delivery of a copy thereof in accordance with the provisions of Section 9.07.

 

Section 9.05                             Waiver of Jury Trial.  EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND

 

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THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDING BROUGHT BY OR AGAINST IT, DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

Section 9.06                             Interpretation.  The headings of the Sections contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not affect the meaning or interpretation of this Agreement. Unless the context otherwise requires: (a) an accounting term not otherwise defined has the meaning assigned to it in accordance with then-applicable GAAP; (b) “or” is not exclusive; (c) words in the singular include the plural, and words in the plural include the singular; (d) provisions apply to successive events and transactions; (e) the words “herein,” “hereof” and other words of similar import refer to this Agreement as a whole and not to any particular Article, or other subdivision; (f) all references herein to Articles, Sections, Recitals, Exhibits, Appendixes, Annexes, paragraphs, subparagraphs and clauses shall be deemed to be references to Articles, Sections, Recitals, paragraphs, subparagraphs and clauses of, and Exhibits, Appendixes and Annexes to, this Agreement unless the context shall otherwise require; (g) the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; (h) the word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”; (i) references to “$” or “dollars” shall mean United States dollars; (j) any Losses, liabilities, payments, adjustments, or other payment obligations or financial amounts referenced herein or relating hereto shall be measured in, settled in, paid in and deemed to refer to United States dollars; and (h) unless otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.

 

Section 9.07                             Notices.  All notices, requests, demands, waivers and other communications required or permitted to be given or made under this Agreement shall be in writing and shall be deemed to have been duly given or made if (a) delivered personally, (b) mailed by certified or registered mail with postage prepaid, (c) sent by next-Business Day or overnight mail or delivery, or (d) sent by facsimile or email, provided that delivery of such facsimile or email is promptly confirmed, as follows (or at such other address for a Party as shall be specified by like notice):

 

(i)                                     if to any of the ECP Funds, to

 

Energy Capital Partners
 11943 El Camino Real, Suite 220
 San Diego, California 92130
 Fax:  (858) 703-4401
 Attention:  Andrew Singer
 Email:  asinger@ecpartners.com

 

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with a copy (which shall not constitute notice) to:

 

Latham & Watkins LLP
 885 Third Avenue

New York, New York 10022-4834

Fax:  (212) 751-4864
 Attention:  David A. Kurzweil and Paul F. Kukish
  Email: David.Kurzweil@LW.com and Paul.Kukish@LW.com

 

(ii)                                  if to Dynegy, to

 

Dynegy Inc.

601 Travis Street

Houston, TX 77002

Facsimile: (713) 507-6808

Attention: Catherine James, Esq., Executive Vice President and General Counsel

E-mail: catherine.james@dynegy.com

 

with a copy (which shall not constitute notice) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

1440 New York Avenue, N.W.

Washington, DC 20005

Facsimile: (202) 661-8200

Attention: Michael P. Rogan

E-mail: michael.rogan@skadden.com

 

(iii)                               if to the Company, to

 

Energy Capital Partners
 11943 El Camino Real, Suite 220
 San Diego, California 92130
 Fax:  (858) 703-4401
 Attention:  Andrew Singer
 Email:  asinger@ecpartners.com

 

and:

 

Dynegy Inc.

601 Travis Street

Houston, TX 77002

Facsimile: (713) 507-6808

Attention: Catherine James, Esq., Executive Vice President and General Counsel

E-mail: catherine.james@dynegy.com

 

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with copies (which shall not constitute notice) to:

 

Latham & Watkins LLP
 885 Third Avenue

New York, New York 10022-4834

Fax:  (212) 751-4864
 Attention:  David A. Kurzweil and Paul Kukish
  Email:  David.Kurzweil@LW.com and Paul.Kukish@LW.com

 

and

 

Skadden, Arps, Slate, Meagher & Flom LLP

1440 New York Avenue, N.W.

Washington, DC 20005

Facsimile: (202) 661-8200

Attention: Michael P. Rogan

E-mail: michael.rogan@skadden.com

 

All such notices, requests, demands, waivers and other communications will be deemed to have been received (w) if by personal delivery, on the day of such delivery, (x) if by certified or registered mail, on the fifth Business Day after the mailing thereof, (y) if by next-Business Day or overnight mail or delivery, on the day delivered or (z) if by email prior to 5:00 p.m. at the place of receipt, on the day on which such email was sent, provided that a copy is also sent by certified or registered mail.

 

Section 9.08                             Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to constitute one and the same agreement. This Agreement may be executed by facsimile or electronic transmission in portable document format (.pdf), each of which shall be deemed an original.

 

Section 9.09                             Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal, or unenforceable in any respect for any reason, the validity, legality, and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be in any way impaired thereby.

 

Section 9.10                             Amendment and Waiver.  This Agreement may be amended, and the observance of any term of this Agreement may be waived, with (and only with) the written consent of the Company and all of the Principal Unitholders and Permitted Transferees who hold any Units at the time of the amendment or waiver.  No waiver of any breach shall be deemed to be a further or continuing waiver of such breach or a waiver of any other or subsequent breach.  Except as otherwise expressly provided herein, no failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single or partial

 

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exercise of such right, power or remedy by such Party preclude any other or further exercise thereof, or the exercise of any other right, power or remedy.

 

Section 9.11                             Tax Withholding.  The Company shall be entitled to deduct and withhold from amounts payable to any Unitholder any sums required by federal, state, or local tax law to be withheld by the Company with respect to the issuance, vesting, exercise, repurchase, or cancellation of, or otherwise with respect to, any Units or any option to purchase any Units.

 

Section 9.12                             Entire Agreement.  This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof.

 

Section 9.13                             Legends.  To the extent the Units are certificated at any time, each certificate representing Units from time to time owned by the Principal Unitholders shall bear a legend substantially as follows:

 

“THE UNITS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR STATE SECURITIES LAWS AND CANNOT BE OFFERED, SOLD, OR TRANSFERRED IN THE ABSENCE OF REGISTRATION OR EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS AND REGULATIONS PROMULGATED THEREUNDER.  THE UNITS REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED BY THE REGISTERED OWNER HEREOF FOR INVESTMENT AND NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION THEREOF IN VIOLATION OF THE SECURITIES ACT.  THE UNITS MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 

THE UNITS REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT BY AND AMONG THE COMPANY AND CERTAIN UNITHOLDERS THEREOF INITIALLY DATED AS OF [·].  A COPY OF SUCH AGREEMENT SHALL

 

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BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”

 

ARTICLE X.
 DEFINITIONS

 

For purposes of this Agreement, the following terms shall have the respective meanings set forth below:

 

“2.25x Value” means, as of any date of determination, the product of (i) the product of (A) $[•],(6) plus any Capital Contributions made by the ECP Parties to the Company after the date hereof, plus any Conversion Amount and any amounts of the Bridge Loan converted pursuant to Section 4.11(c), minus any Capital Contributions returned through Distributions to the ECP Parties prior to the date of determination minus any ECP Consideration paid to the ECP Parties in connection with a Partial Put or Partial Call, and (B) 2.25, multiplied by (ii) the amount expressed as a percentage that equals the quotient of (A) the Units being sold by the ECP Parties in respect of the applicable Call Right divided by (B) the aggregate number of Units held by the ECP Parties.(7)

 

“Affiliate Transferee” has the meaning set forth in Section 4.01(b).

 

“Affiliate” means, with respect to any specified person, any other person that, at the time of determination, directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such specified person.

 

“Affiliated Fund” means, with respect to any ECP Fund, (i) ECP III, (ii) any investment fund controlled, directly or indirectly, by the members of the investment committee of Energy Capital Partners III, LLC, a Delaware limited liability company, or the investment committee of ECP III and (iii) any investment vehicle or other arrangement investing on a parallel basis with ECP III.

 

“Affiliated Parties” has the meaning set forth in Section 7.04.

 

“Agreement” has the meaning set forth in the introductory paragraph hereof.

 

“Applicable EBITDA” means, with respect to the Company and its Subsidiaries, the Consolidated Adjusted EBITDA for the twelve-month period ending on the last full calendar month immediately prior to the date the Call Exercise Notice is received by the ECP Representative or a Put Exercise Notice is received by Dynegy, as applicable, for which internal financial statements are available.

 

(6)  Note to Draft: ECP’s initial cash contribution to the company, to match dollar amount applicable to the ECP Funds from the third WHEREAS clause.

 

(7)  Note to Draft: Additional terms of this definition may be required to address the parties’ agreement on treatment of Dynegy Parent’s incremental costs under the Service Agreement.

 

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“Average Dynegy Parent EBITDA Multiple” means, (i) so long as a Dynegy Parent Change of Control has not been consummated prior to the delivery of the Put Exercise Notice or the Call Exercise Notice, as applicable, the arithmetic mean of the Dynegy Parent EBITDA Multiple for the six (6) month period prior to the delivery of the Put Exercise Notice or the Call Exercise Notice, as applicable; provided, however, that if the ECP Parties exercise their Put Right or Second Put Right pursuant to Section 4.03(h), the Dynegy Parent EBITDA Multiple shall be such multiple determined by deriving the Dynegy Parent Market Value from the valuation of Dynegy in the Change of Control transaction described in the Dynegy Parent Change of Control Notice, and (ii) if a Dynegy Parent Change of Control has been consummated prior to the delivery of the Put Exercise Notice or the Call Exercise Notice, as applicable, eight (8).

 

“Beneficially Own” means, with respect to any securities, having “beneficial ownership” of such securities for purposes of Rule 13d-3 or 13d-5 under the Exchange Act as in effect on the date hereof.

 

“Board” has the meaning set forth in Section 2.01(b).

 

“Bridge Loan” means the loan provided under the Bridge Loan Agreement.

 

“Bridge Loan Agreement” means [·].

 

“Business Day” means any day other than a Saturday, Sunday or other day on which banking institutions in New York, New York are required or authorized by Law or executive order to be closed.

 

“Call Closing Date” has the meaning set forth in Section 4.03(d)(ii).

 

“Call Closing Date” has the meaning set forth in Section 4.04(d).

 

“Call Exercise Notice” has the meaning set forth in Section 4.04(b).

 

“Call Option Wire Notice” has the meaning set forth in Section 4.04(b).

 

“Call Right Closing” has the meaning set forth in Section 4.04(d).

 

“Call Right” has the meaning set forth in Section 4.04(a).

 

“Capital Contribution” means any cash or contributed property that a Principal Unitholder contributes to the Company pursuant to Article III or in exchange for New Securities pursuant to Section 4.02.

 

“Change of Control” means (a) any transaction or series of related transactions that results in the directors comprising the Board of Directors of Dynegy Parent (or any parent or successor thereto) immediately prior to such transaction ceasing to represent the majority of the directors comprising the Board of Directors of Dynegy Parent or the board of directors of the person surviving or resulting from such transaction (or the

 

35

 

ultimate parent entity thereof); provided, however, that any directors comprising such Board or board that were nominated, elected, appointed or recommended by the Board immediately prior to such transaction or series of related transactions shall be deemed for purposes of this clause (a) to have been members of the Board of Directors of Dynegy Parent immediately prior to such transaction or series of related transactions; (b) the acquisition of Dynegy Parent (or any parent or successor thereto) by another person by means of any transaction or series of related transactions, whether or not Dynegy Parent is a party thereto (including any stock acquisition, reorganization, merger or consolidation), that results in the holders of the common stock of Dynegy Parent (or any parent or successor thereto) immediately prior to such transaction or series of related transactions failing to represent, immediately after such transaction or series of transactions, a majority of the total outstanding voting securities of the surviving person (or the ultimate parent entity thereof); (c) any transaction or series of related transactions, whether or not Dynegy Parent (or any parent or successor thereto) is a party thereto, after giving effect to which, in excess of a majority of the voting securities is Beneficially Owned directly, or indirectly through one or more persons, by any person and its Affiliates; or (d) a sale or disposition of all or substantially all of the assets of Dynegy Parent and its Subsidiaries on a consolidated basis.

 

“Code” means the Internal Revenue Code of 1986 and any successor statute, as amended from time to time.

 

“Company” has the meaning set forth in the introductory paragraph hereof.

 

“Confidential Information” has the meaning set forth in Section 7.01(b).

 

“Consolidated Adjusted EBITDA” means, with respect to the Company and its Subsidiaries or Dynegy and its Subsidiaries, as applicable, for any period, consolidated net income (or loss) (determined in accordance with GAAP) of such person for such period, plus the sum of, to the extent included in the calculation of net income (or loss) of such person, but without duplication, (i) consolidated interest expense for such period, (ii) consolidated income tax expense for such period, (iii) consolidated amounts attributable to depreciation expense for such period, and (iv) consolidated amortization expense for such period, in each case as reported in the financial statements included with Dynegy Parent’s most recent quarterly report on Form 10-Q filed with the SEC on [•] and most recent annual report on Form 10-K filed with the SEC on [•], and adjusted consisted with such financial statements, including for gains and losses on the sale of certain assets, the impacts of mark to market changes on derivatives related to Dynegy Parent’s generation portfolio, interest rate swaps, warrants, the impact of impairment charges and certain costs associated with acquisitions and other material items.

 

“Control” or “Controlled” means, as for any person, the possession, directly or indirectly of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting securities, by contract or otherwise.

 

36

 

“Controlled Affiliate” means, with respect to the ECP Parties, (a) ECP III and (b) any Subsidiary of ECP III, and with respect to Dynegy, (x) Dynegy Parent and (b) any Subsidiary of Dynegy Parent.

 

“Conversion Amount” has the meaning set forth in Section 4.11(b).

 

“Conversion Multiple” means [·].(8)

 

“D&O Insurance Policy” has the meaning set forth in Section 8.02.

 

“Delaware Act” means the Delaware Limited Liability Company Act, 6 Del.L. § 18-101, et seq., as it may be amended from time to time, and any successor to the Delaware Act.

 

“Delaware Certificate” has the meaning set forth in the recitals.

 

“Distribution” means each distribution in respect of any Equity Interests of the Company made by the Company to a Unitholder, whether in cash, property or securities of the Company and whether by liquidating distribution, redemption, repurchase or otherwise.

 

“Drag Along Notices” has the meaning set forth in Section 4.06(b).

 

“Drag Along Right” has the meaning set forth in Section 4.06(a).

 

“Drag Along Sale” has the meaning set forth in Section 4.06(a).

 

“Drag Along Terms” has the meaning set forth in Section 4.06(b).

 

“Dragging Group” has the meaning set forth in Section 4.06(a).

 

“Dynegy” has the meaning set forth in the introductory paragraph hereof.

 

“Dynegy Parent” means Dynegy Inc., a Delaware corporation.

 

“Dynegy Parent Change of Control Notice” means a written notice provided by Dynegy to the ECP Representative notifying the ECP Representative of (a) a definitive and binding agreement with respect to a Change of Control of Dynegy Parent, which shall set forth all material terms and conditions of such agreement or (b) the taking of any other action by any Person other than Dynegy Parent or its Affiliates or Representatives that is publicly disclosed and that has resulted in, or would reasonably be expected to result in, a Change of Control.

 

(8)  Note to Draft:  Parties to agree on specific wording to reflect the dilution mechanics set forth in the spreadsheet attached hereto.

 

37

 

“Dynegy Parent Credit Agreement” means the Credit Agreement, dated as of April 23, 2013, among Dynegy Parent, as borrower and the guarantors, lenders and other parties thereto (as may be amended from time to time).

 

“Dynegy Parent EBITDA Multiple” means the quotient resulting from a fraction, the numerator of which shall be the Dynegy Parent Market Value and the denominator of which shall be the Consolidated Adjusted EBITDA of Dynegy Parent and its Subsidiaries for the twelve-month period ending on the last full calendar month immediately prior to the date of determination for which internal financial statements are available.

 

“Dynegy Parent Market Value” means, as of any date of determination, the principal net amount of indebtedness for borrowed money of Dynegy Parent (or any successor thereto) and its Subsidiaries (for the avoidance of doubt, (a) Illinois Power Holdings shall be deemed to be a Subsidiary of Dynegy Parent, (b) such amount of indebtedness for borrowed money shall be reduced by restricted and unrestricted cash of Dynegy Parent and its Subsidiaries and (c) and such amount of net indebtedness for borrowed money shall include Dynegy’s Pro Rata Share of any net indebtedness for borrowed money of the Company), plus the product of (i) the total number of issued and outstanding shares of common stock of Dynegy Parent (or any successor thereto) and (ii) the Dynegy Parent Share Value.

 

“Dynegy Parent Share Value” means, so long as Dynegy Parent is listed on NYSE (or another other national share exchange on which shares of Dynegy Parent common stock are listed if not listed on NYSE), the weighted average price of a share of common stock of Dynegy Parent listed on NYSE (or such other national share exchange on which shares of Dynegy Parent common stock are listed if not listed on NYSE) for the 90 trading day period ending on the Business Day immediately preceding the date of delivery of the applicable Put Exercise Notice or the Call Exercise Notice, as applicable, and, if Dynegy Parent is not listed on NYSE (or another other national share exchange) the Fair Market Value of a share of Dynegy Parent (or any successor thereto) common stock.

 

“Dynegy Parties” has the meaning set forth in Section 2.01(c)(iii).

 

“Dynegy Repayment Option” has the meaning set forth in Section 4.11(a).

 

“ECP Consideration Amount” means, with respect to the Put Right, the Second Put Right, the Call Right or the Second Call Right, as applicable and when calculated, an amount equal to the product of (i) the applicable Per Unit Put/Call Purchase Price and (ii) the number of Units being sold by the ECP Funds on the applicable Put Closing Date or Call Closing Date.

 

“ECP Forced Sale” has the meaning set forth in Section 4.03(c).

 

“ECP Forced Sale Notice” has the meaning set forth in Section 4.03(d)(i).

 

“ECP Funds” has the meaning set forth in the introductory paragraph hereof.

 

38

 

“ECP III” has the meaning set forth in the introductory paragraph hereof.

 

“ECP III Manager” has the meaning set forth in Section 2.01(b).

 

“ECP III-A” has the meaning set forth in the introductory paragraph hereof.

 

“ECP III-A Manager” has the meaning set forth in Section 2.01(b).

 

“ECP III-B” has the meaning set forth in the introductory paragraph hereof.

 

“ECP III-C” has the meaning set forth in the introductory paragraph hereof.

 

“ECP III-D” has the meaning set forth in the introductory paragraph hereof.

 

“ECP Managers” has the meaning set forth in Section 2.01(b).

 

“ECP Parties” has the meaning set forth in Section 2.01(c)(ii).

 

“ECP Representative” means Energy Capital Partners GP III, LP, a Delaware limited partnership, or, upon written notice to each other Principal Unitholder from any of the ECP Funds, any other person appointed in lieu of Energy Capital Partners GP III, LP (or any subsequent ECP Representative) to be the “ECP Representative” by the ECP Funds.

 

“Effective Date” has the meaning set forth in the introductory paragraph hereof.

 

“Equity Interests” means (i) in relation to the Company, (A) Units or other equity interests in the Company (including other classes, groups or series thereof having such relative rights, powers, and/or obligations as may from time to time be established by the Board, as the case may be, including rights, powers, and/or duties different from, senior to or more favorable than existing classes, groups and series of units and other equity interests in the Company), (B) obligations, evidences of indebtedness or other securities or interests convertible or exchangeable into Units or other equity interests in the Company, and (C) warrants, options or other rights to purchase or otherwise acquire units or other equity interests in the Company and (ii) in relation to any person, any capital stock of or other type of equity interest in a person or other securities to purchase capital stock or other types of equity interests.

 

“Estimated EBITDA” means, with respect to the Company and its Subsidiaries, the projected Consolidated Adjusted EBITDA for the twelve-month period beginning on the first day of the first full calendar month occurring after the date the Call Exercise Notice is received by the ECP Representative or a Put Exercise Notice is received by Dynegy, as applicable, determined in a manner consistent with the then-applicable Annual Plan.

 

“Excluded Issuance” means (i) any Equity Interests issued as equity distributions, or pursuant to unit splits, recapitalization or other similar events that do not adversely

 

39

 

affect the proportionate amount of the Units held by the Principal Unitholders, (ii) securities issued pursuant to an Initial Public Offering, and (iii) Equity Interests, or warrants or options to purchase Equity Interests, issued to the third party seller or strategic partner in acquisitions, mergers or strategic partner transactions, the terms of which are approved by the Board (including pursuant to Section 2.06(c)).

 

“Fair Market Value” means the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of the relevant facts.

 

“Final Call Purchase Price” has the meaning set forth in Section 4.04(a).

 

“Fiscal Year” has the meaning set forth in Section 1.06.

 

“Fully Subscribing Unitholder” has the meaning set forth in Section 4.02(d).

 

“GAAP” means United States generally accepted accounting principles.

 

“Governmental Entity” means any federal, state, county, township, municipal, local or foreign government, or any legislature, administrative or regulatory authority, agency, commission, board, bureau, branch, department, division, court, tribunal, magistrate, justice, multi-national organization, quasi-governmental body, or other similar recognized organization, body or instrumentality of any federal, state, county, township, municipal, local or foreign government or any other similar recognized organization, body or instrumentality exercising similar powers or authority.

 

“Indebtedness” means, with respect to any person as of any particular time, without duplication, the sum of all amounts owing by such person to repay full amounts due and terminate all obligations (including any accrued interest and any cost or penalty associated with prepaying any such indebtedness or similar amounts) with respect to (i) all obligations for borrowed money of such person, (ii) all obligations of such person evidenced by bonds, debentures, notes, or other similar instruments or debt securities, (iii) all obligations, contingent or otherwise, of such person in respect of any letters of credit or bankers’ acceptances (to the extent drawn), (iv) any interest rate swap, forward contract or other hedging arrangement of such person, (v) all obligations for the deferred purchase price of assets, property or services, including any unpaid purchase price obligations relating to acquisitions, (vi) all obligations under capital or direct financing leases and purchase money and/or vendor financing, (vii) to the extent not otherwise included, any obligation by such person to be liable for, or to pay, as obligor, guarantor or otherwise, on the obligations of a third person of the type referred to in clauses (i) through (vi) above, other than by endorsement of negotiable instruments for collection in the ordinary course of business and (viii) any unpaid principal, premium, accrued and unpaid interest, prepayment penalties, commitment and fees, reimbursements, indemnities and all other amounts payable in connection with any of the foregoing.

 

“Indemnitee” has the meaning set forth in Section 8.01(a).

 

40

 

“Initial Public Offering” means an underwritten public offering of Company’s equity securities with an aggregate offering price equal to or greater than $[·] pursuant to a registration statement on Form S-1 filed with the SEC where such equity securities Stock will be listed on the New York Stock Exchange, the NASDAQ Global Market or any other internationally recognized stock exchange.

 

“Issuance Date” has the meaning set forth in Section 4.02(a).

 

“JV Indemnitee” has the meaning set forth in Section 8.01(g).

 

“Law” means any law (statutory, common or otherwise), constitution, treaty, convention, statute, ordinance, code, rule, regulation, standard, judgment, order, writ, injunction, ruling, decree, decision, arbitration award, agency requirement or other similar authority enacted, adopted, promulgated, entered or applied by any Governmental Entity.

 

“Liens” means any lien, statutory or otherwise, security interest, mortgage, deed of trust, priority, pledge, charge, right of first refusal or other encumbrance or similar right of others.

 

“Loss” has the meaning set forth in Section 8.01(a).

 

“Manager” has the meaning set forth in Section 2.01(b).

 

“Monthly Management Plan” means a monthly report with respect to the Company and its Subsidiaries setting forth in reasonable detail the results of operations and financial results for such month in a manner consistent with Dynegy Parent’s internal monthly reporting practices.

 

“New Securities” has the meaning set forth in Section 4.02(a).

 

“New Subscription Units” means, in relation to any Fully Subscribing Unitholder under Section 4.02(d), a number of Units equal to (i) such Unitholder’s Subscription Securities plus any Non-Penalized Unsubscribed Securities purchased by such Fully Subscribing Unitholder plus (ii) the product of (A) any Penalized Unsubscribed Securities purchased by such Fully Subscribing Unitholder and (B) 1.[·].

 

“Non-Dragging Unitholders” has the meaning set forth in Section 4.06(a).

 

“Non-Subscribing Unitholder” has the meaning set forth in Section 4.02(d).

 

“Non-Penalized Unsubscribed Securities” has the meaning set forth in Section 4.02(d).

 

“Notice” has the meaning set forth in Section 2.10.

 

“NYSE” means the New York Stock Exchange.

 

41

 

“Officer” means any person designated as an officer of the Company pursuant to Section 2.07.

 

“Option Bridge Loan Amount” means sixty-five percent (65%) of the outstanding principal amount of the Bridge Loan (together with accrued and unpaid interest thereon) as of the Option Repayment Date.

 

“Original Agreement” has the meaning set forth in the recitals.

 

“Other Investments” has the meaning set forth in Section 7.04.

 

“Outstanding Bridge Loan Amount” means, as of any date, the outstanding principal amount of the Bridge Loan (together with accrued and unpaid interest thereon) as of such date.

 

“Partial Put” has the meaning set forth in Section 4.03(b).

 

“Party” or “Parties” has the meaning set forth in the introductory paragraph hereof.

 

“Penalized Unsubscribed Securities” has the meaning set forth in Section 4.02(d).

 

“Per Unit Put/Call Purchase Price” means, as of any date of determination, an amount equal to the quotient obtained by dividing (i) the Put/Call Purchase Price by (ii) the number of issued and outstanding Units on the applicable Put Closing Date.

 

“Percentage Interest” means, with respect to any Unitholder, the percentage derived by dividing (i) the aggregate number of Units owned by such Unitholder, by (ii) the aggregate number of Units owned by all Unitholders.

 

“Permitted Transferee” means any Affiliate Transferee or any transferee that has received Units from any Principal Unitholder in accordance with Section 4.05 (Right of First Offer), Section 4.06 (Drag Along Rights) and Section 4.07 (Tag Along Rights), and a “Permitted Transfer” means any transfer from a Principal Unitholder to such Affiliate Transferee or transferee in accordance with the foregoing.

 

“person” means an individual, corporation, partnership, joint venture, limited liability company, association, trust, unincorporated organization or other entity.

 

“Preemption Notice” has the meaning set forth in Section 4.02(a).

 

“Principal Unitholders” has the meaning set forth in the introductory paragraph hereof.

 

“Pro Rata Share” means the percentage which corresponds to the ratio which each Unitholder’s Percentage Interest bears to the total Percentage Interests of all Unitholders.

 

42

 

“Put Closing Date” has the meaning set forth in Section 4.03(d)(ii).

 

“Put Exercise Notice” has the meaning set forth in Section 4.03(d)(ii).

 

“Put Right Closing” has the meaning set forth in Section 4.03(d)(ii).

 

“Put Right” has the meaning set forth in Section 4.03(a).

 

“Put Units” has the meaning set forth in Section 4.03(a).

 

“Put/Call Purchase Price” means, as of any date of determination, the difference resulting from (a) the product of (i) the arithmetic mean of the Applicable EBITDA and Estimated EBITDA and (ii) the Average Dynegy Parent EBITDA Multiple minus (b) the principal net amount of indebtedness for borrowed money of the Company and its Subsidiaries (for the avoidance of doubt, such amount of indebtedness for borrowed money shall be reduced by restricted and unrestricted cash of the Company and its Subsidiaries).

 

“Quorum” has the meaning set forth in Section 2.06(a).

 

“Remaining Call Units” has the meaning set forth in Section 4.04(c).

 

“Remaining Put Units” has the meaning set forth in Section 4.03(c).

 

“Repayment Option Date” has the meaning set forth in Section 4.11(a).

 

“Repayment Option Percentage” means the difference of (i) 100%, minus (ii) the percentage of the Option Bridge Loan Amount contributed by Dynegy (or its Controlled Affiliates) pursuant to Section 4.11(a).

 

“Representatives” as to any person, means such person’s directors, officers, employees, Affiliates, financial advisors, attorneys and accountants or agents.

 

“ROFO Notice has the meaning set forth in Section 4.05(a).

 

“ROFO Offer” has the meaning set forth in Section 4.05(b).

 

“ROFO Offer Period” has the meaning set forth in Section 4.05(b).

 

“ROFO Sale” has the meaning set forth in Section 4.05(b).

 

“ROFO Units” has the meaning set forth in Section 4.05(a).

 

“ROFO Unitholders” has the meaning set forth in Section 4.05(a).

 

“SEC” means the Securities and Exchange Commission of the United States.

 

“Second Call Right” has the meaning set forth in Section 4.04(c).

 

43

 

“Second Put Right” has the meaning set forth in Section 4.03(c).

 

“Service Agreement” means the Service Agreement, dated as of the date hereof, by and between Dynegy Parent and the Company.

 

“Schedule of Unitholders” has the meaning set forth in Section 1.09.

 

“Sponsor Indemnitors” has the meaning set forth in Section 8.01(g).

 

“Subscription Securities” has the meaning set forth in Section 4.02(a).

 

“Subsidiary” means, as to any Person, any corporation or other entity of which: (a) such Person, or a Subsidiary of such Person, is a general partner or manager; (b) at least a majority of the outstanding equity interest having by the terms thereof ordinary voting power to elect a majority of the board of directors or similar governing body of such corporation or other entity (irrespective of whether or not at the time any equity interest of any other class or classes of such corporation or other entity shall have or might have ordinary voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more of its Subsidiaries; or (c) any corporation or other entity as to which such Person consolidates for accounting purposes.  Notwithstanding the foregoing or any reduction in Dynegy’s Percentage Interest in the Company, for purposes of the definitions of “Consolidated Adjusted EBITDA” and “Dynegy Parent EBITDA Multiple”, the Company shall be deemed a Subsidiary of Dynegy Parent.

 

“Tag Along Exercise Notice” has the meaning set forth in Section 4.07(b).

 

“Tag Along Notice” has the meaning set forth in Section 4.07(b).

 

“Tag Along Right” has the meaning set forth in Section 4.07(a).

 

“Tag Along Sale” has the meaning set forth in Section 4.07(a).

 

“Tag Along Terms” has the meaning set forth in Section 4.07(a).

 

“Third Party Purchaser” has the meaning set forth in Section 4.05(a).

 

“transfer” means any direct or indirect sale, bequest, exchange, assignment, gift, transfer, pledge, creation of any security interest or other encumbrance, and any other disposition of any kind (whether with or without consideration and whether voluntary or involuntary or by operation of Law) affecting title to or possession of any Units; provided, that, for the avoidance of doubt, with respect to any of the ECP Funds, any direct or indirect transfer, sale, assignment, exchange, gift, pledge, grant of a security interest, conveyance or other disposition of Equity Interests in such Principal Unitholder, to any person that does not have the right to vote with respect to, or otherwise control, the day-to-day management activities of such Principal Unitholder shall not be deemed to be a “transfer” for purposes this Agreement.

 

44

 

“Transferring Unitholder” has the meaning set forth in Section 4.05(a).

 

“Unit” has the meaning set forth in Section 1.09.

 

“Unitholder” means any owner of one or more Units as reflected on the Company’s books and records. For purposes of the Delaware Act, the Unitholders shall constitute the “members” (as defined in the Delaware Act) of the Company.

 

(Signature Pages Follow)

 

45

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed as of the date first written above.

 

 

	
 
    	
ATLAS   POWER, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III, LP
    
	
 
    	
 
    
	
 
    	
By:   
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:   
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
Energy   Capital Partners III, LLC
    
	
 
    	
 
    	
Its:   
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
[ · ]
    
	
 
    	
 
    	
 
    	
Managing   Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-A, LP
    
	
 
    	
 
    
	
 
    	
By:   
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:   
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
Energy   Capital Partners III, LLC
    
	
 
    	
 
    	
Its:   
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
[ · ]
    
	
 
    	
 
    	
 
    	
Managing   Member
    
					

 

Signature Page to LLC Agreement

 

 

	
 
    	
ENERGY   CAPITAL PARTNERS III-B, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
[ · ]
    
	
 
    	
 
    	
 
    	
Managing   Member
    
	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-C, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
[ · ]
    
	
 
    	
 
    	
 
    	
Managing   Member
    
	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-D, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
[ · ]
    
	
 
    	
 
    	
 
    	
Managing   Member
    
	
 
    	
 
    
	
 
    	
DYNEGY   ATLAS HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title
    
					

 

Each Permitted Transferee has agreed to be bound by the terms of this Agreement by execution and delivery of the signature page set forth as Exhibit B hereto.

 

Signature Page to LLC Agreement

 

 

EXHIBIT A

 

SCHEDULE OF UNITHOLDERS

 

	
Unitholder
    	
 
    	
Capital
   Contribution
    	
 
    	
Units
    	
 
    	
Percentage of Units
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-1

 

EXHIBIT B

 

FORM OF SIGNATURE PAGE TO

ATLAS POWER, LLC LIMITED LIABILITY COMPANY AGREEMENT

 

By execution of this signature page, the undersigned agrees to (i) become a party to the Limited Liability Company Agreement of Atlas Power, LLC, dated as of [·], by and among Atlas Power, LLC, a Delaware limited lability company, [ECP] and Dynegy Atlas Holdings, LLC, a Delaware limited liability company, as amended from time to time thereafter and (ii) be bound by the obligations of, and receive the benefits of, a [Unitholder] pursuant thereto.

 

 

	
 
    	
 
    
	
 
    	
[Name   of Permitted Transferee]
    
	
 
    	
 
    
	
 
    	
Notice   Information:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Acknowledged and accepted by:
    
	
 
    	
 
    
	
 
    	
Atlas   Power, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

A-1

 

EXHIBIT B

 

 

Project Delta

Summary of Indicative Terms

Services Agreement (the “Agreement”)

 

This Term Sheet has been provided as a general outline of certain of the key terms to be contained in the Services Agreement referred to in the Interim Sponsors Agreement to which this Term Sheet is attached.

 

	
Services Provider:
    	
 
    	
Dynegy Inc. (the “Provider”).
    
	
 
    	
 
    	
 
    
	
Services Recipient:
    	
 
    	
Atlas Power, LLC and its subsidiaries (collectively,   the “Recipient”).
    
	
 
    	
 
    	
 
    
	
Term:
    	
 
    	
Six years shall be the initial term, with annual   evergreen thereafter.
    
	
 
    	
 
    	
 
    
	
Services:
    	
 
    	
The Provider will perform for the benefit of the   Recipient the Services described and defined in the draft Service Agreement,   dated February 22, 2016 (the “Draft Agreement”),   as well as certain other services which are related to the operation,   administration, maintenance, use, energy management, and ownership of the   Recipient’s business (the “Business”) to   be agreed (the “Services”).   The Services shall include all necessary services to fully commercialize the   Business.
    
	
 
    	
 
    	
 
    
	
Standard of Performance:
    	
 
    	
The Provider will perform the Services in accordance   with (a) applicable laws, regulations, orders, licenses and permits,   (b) agreements related to the Business which the Provider is aware,   (c) prudent utility practice, (d) reasonable prudence and sound   business judgment, (e) in conformance with the standards of diligence   and skill customarily provided by providers of comparable services in the   power generation industry and (f) other standards to be agreed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, the Provider will (i) act in a   non-discriminatory manner (including with respect to energy management, terms   of gas supply, commodity hedging and, generally, pricing received and paid in   connection with purchase of fuel and sale of power) vis-à-vis its other power   generation assets as set forth in the protocol described in the immediately   succeeding sentence, (ii) use its commercially reasonable efforts to   provide the Business with the benefits associated with Dynegy fleet-wide   master services agreements , and (iii) not disadvantage the Business to   the advantage of the Provider with respect to long-term turbine service,   maintenance and parts. ECP and
    

 

 

	
 
    	
 
    	
Dynegy will seek to negotiate in good faith a   protocol to (1) ensure that the Business is not disadvantaged vis-à-vis   other Dynegy power generation assets and (2) ensure that the Business   benefits from the synergies which arise from the Provider’s majority   ownership of the Business which have been discussed between ECP and Dynegy   prior to the date of this Term Sheet.
    
	
 
    	
 
    	
 
    
	
Limitations on Authority:
    	
 
    	
The Provider will be subject to the limitations set   forth in Sections 2.3, 3.3 and 3.4 of the Draft Agreement. In addition, the   Provider shall not otherwise act in a manner which is inconsistent with the   LLC Agreement referred to in the Interim Sponsors Agreement and any other   governance document entered into between ECP and Dynegy. ECP will be afforded   the right to cure the Recipient’s defaults and enforce the rights of the   Recipient under the Agreement.
    
	
 
    	
 
    	
 
    
	
Fees:
    	
 
    	
The fee to be promptly agreed following the   execution of the Interim Sponsors Agreement. The Provider will provide the Services   to the Recipient for such fee.
    
	
 
    	
 
    	
 
    
	
Credit Support:
    	
 
    	
The Recipient will not have to provide the Provider   with any credit support under the Agreement.
    
	
 
    	
 
    	
 
    
	
Accounts Receivable:
    	
 
    	
The Recipient shall maintain title to and directly   receive all accounts receivable, revenues and cash related to the Business’   revenues.
    
	
 
    	
 
    	
 
    
	
Limitation on Liability:
    	
 
    	
The Provider will not be liable to the Recipient for   indirect, special or consequential damages. If the Provider defaults and the   Agreement is terminated as a result of such default, the Recipient will be   able to receive damages which are intended to cover the lost synergy benefits   contemplated by the Agreement. The aggregate liability for the Provider under   the Agreement will be in an amount to be promptly agreed following the   execution of the Interim Sponsors Agreement.
    
	
 
    	
 
    	
 
    
	
Defaults / Termination:
    	
 
    	
The Provider will not have the right to optionally   terminate the Agreement. Generally, given that the Recipient’s performance   under the Agreement will largely be controlled by the Provider, provisions   will be included in the Agreement to prevent a termination which results from   the Provider failing to cause the Recipient to perform or for events (other   than payment defaults) which do not materially and adversely impact the   Provider’s ability to provide the Services.
    

 

 

	
Documentation:
    	
 
    	
The Agreement will not be less favorable to the   Recipient than the Draft Agreement, as modified by this Term Sheet.
    
	
 
    	
 
    	
 
    
	
Applicable Law:
    	
 
    	
State of New York.
    

 

 

EXHIBIT C

 

TERMS OF BRIDGE LOAN

 

	
Borrower:
    	
 
    	
Atlas   Power, LLC (the “Borrower”) (a joint venture indirectly formed by   Dynegy Inc. (“Dynegy”) and Energy Capital Partners III, LLC (“ECP”)).
    
	
 
    	
 
    	
 
    
	
Lenders:
    	
 
    	
ECP   and/or one of its designated investment vehicles or managed funds   (collectively, the “Lenders”).
    
	
 
    	
 
    	
 
    
	
Facility:
    	
 
    	
An   unsecured loan facility in an aggregate principal amount of up to $400   million (the “Facility”), which shall be available   in a single draw (the “Loan”) on the   Closing Date (as defined below).
    
	
 
    	
 
    	
 
    
	
Closing   Date:
    	
 
    	
The   date the acquisition of GDF SUEZ Energy North America, Inc., a Delaware   corporation (the “Target” and   such acquisition, the “Acquisition”)   is consummated (the “Closing Date”).
    
	
 
    	
 
    	
 
    
	
Use   of Proceeds:
    	
 
    	
The   Facility will be used to fund, in part, the purchase price for the   Acquisition.
    
	
 
    	
 
    	
 
    
	
Maturity   / Term:
    	
 
    	
4   years from the Closing Date (“Maturity”).
    
	
 
    	
 
    	
 
    
	
OID:
    	
 
    	
The   Loan will be made at par.
    
	
 
    	
 
    	
 
    
	
Stated   Coupon:
    	
 
    	
From the Closing Date until the first anniversary thereof, interest   shall accrue at a rate of 11.0% and thereafter at a rate of 18.0% (“Coupon”) per annum, payable quarterly in arrears, subject   to the Pay-In-Kind Provisions described below. The first quarterly payment   shall be made on the last day of the calendar quarter immediately following   the Closing Date and thereafter on the last day of each calendar quarter (“Quarterly Dates”). Interest shall be calculated on a   360-day year consisting of 12 30-day months. 
    
	
 
    	
 
    	
 
    
	
Pay-In-Kind:
    	
 
    	
The   Borrower, at its option, can elect to defer interest at each Quarterly Date   during the first 12 months after the Closing Date, provided   that no event of default has occurred and is continuing. Any amount deferred   will be added to the principal balance of the Loan.
    
	
 
    	
 
    	
 
    
	
Amortization:
    	
 
    	
None.   The entire unpaid principal amount of the Loan, together with accrued and   unpaid interest thereon, shall be due and payable
    

 

 

	
 
    	
 
    	
at   Maturity.
    
	
 
    	
 
    	
 
    
	
Default   Interest:
    	
 
    	
2%   per annum in excess of the Coupon otherwise chargeable on the Facility.
    
	
 
    	
 
    	
 
    
	
Voluntary   Prepayment:
    	
 
    	
The   Facility may be repaid fully or partially at any time, at the option of the   Borrower, without premium or penalty.
    
	
 
    	
 
    	
 
    
	
Collateral:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Affirmative   Covenants:
    	
 
    	
Usual   and customary for transactions of this type and, in any event, to apply   solely to the Borrower.
    
	
 
    	
 
    	
 
    
	
Negative   Covenants:
    	
 
    	
Usual   and customary negative covenants for transactions of this type (and, in any   event, to apply solely to the Borrower), including, without limitation:

 

(i)                            No additional indebtedness;

(ii)                         Restrictions on the direct or indirect use   of Dynegy Inc.’s revolving and letter of credit facilities to support the   Borrower or any of its subsidiaries;

(iii)                      No change of control or merger;

(iv)                     Restrictions on asset sales;

(v)                        Restrictions on investments and liens;

(vi)                     No voluntary prepayment of subsidiary debt   for borrowed money; and

(vii)                  No dividends or other restricted payments   (subject to permitted restricted payments to comply with prepayment   obligations under the Dynegy credit agreement, but only to the extent   corresponding restricted payments are permitted pursuant to the terms of the   credit facility to be entered into by the Target in connection with the   Acquisition).
    
	
 
    	
 
    	
 
    
	
Financial   Covenant:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Representations   and Warranties:
    	
 
    	
Usual   and customary for transactions of this type and, in any event, to apply   solely to the Borrower.
    
	
 
    	
 
    	
 
    
	
Conditions   Precedent to Closing:
    	
 
    	
Usual   and customary for transactions of this type, including, without limitation:

 

(i)               execution of mutually acceptable definitive   documents;

(ii)            concurrent closing of the Acquisition and   funding of senior secured acquisition debt on the terms contemplated by the   debt
    

 

 

	
 
    	
 
    	
commitment papers; and

(iii)         absence of default.
    
	
 
    	
 
    	
 
    
	
Events   of Default:
    	
 
    	
Usual   and customary for transactions of this type (and, in any event, to apply   solely to the Borrower), including, without limitation, failure to pay principal   and interest at Maturity. In the event the Loan is accelerated, the Lenders   shall have the option to convert the Loan to equity in the Borrower at the   penalty rate as set forth in Section 4.11(b) of the LLC Agreement   Form.
    
	
 
    	
 
    	
 
    
	
Conversion   to Equity:
    	
 
    	
If   the Loan (together with accrued and unpaid interest thereon) has not been   repaid in full on or before the one year anniversary of the Closing Date and   Dynegy does not exercise the Dynegy Repayment Option (as defined in the LLC   Agreement Form) in full, as contemplated in Section 4.11(a) of the   LLC Agreement Form, then the Loan, at the option of the Lenders, will be   subject to conversion into equity of the Borrower as provided for in   Section 4.11(b) of the LLC Agreement Form.

 

Any   unconverted portion of the Loan which remains outstanding after the one year   anniversary of the Closing Date shall bear interest at the 18% per annum rate   described above under “Stated Coupon”.

 

No   portion of the Loan shall convert to equity in the Borrower to the extent   repaid prior to the one year anniversary of the Closing Date.

 

Attached   to this term sheet as Schedule I are sample calculations of the   conversion mechanics described herein.
    

 

 

	
ECP Equity
    	
 
    	
$
    	
415
    	
 
    	
12.1
    	
%
    
	
Dynegy Equity
    	
 
    	
770
    	
 
    	
22.4
    	
%
    
	
Total equity
    	
 
    	
1,185
    	
 
    	
34.5
    	
%
    
	
Term Loan B
    	
 
    	
1,850
    	
 
    	
53.9
    	
%
    
	
ECP Bridge
    	
 
    	
400
    	
 
    	
11.6
    	
%
    
	
Total   Uses
    	
 
    	
$
    	
3,435
    	
 
    	
100.0
    	
%
    

 

	
Purchase Price
    	
 
    	
$
    	
3,300
    	
 
    
	
Financing Fees
    	
 
    	
$
    	
105
    	
 
    
	
Expenses
    	
 
    	
$
    	
30
    	
 
    
	
Total   Uses
    	
 
    	
$
    	
3,435
    	
 
    

 

Initial equity contribution

 

	
ECP equity
    	
 
    	
$
    	
415
    	
 
    	
35.0
    	
%
    
	
DYN equity
    	
 
    	
$
    	
770
    	
 
    	
65.0
    	
%
    
	
Total equity
    	
 
    	
$
    	
1,185
    	
 
    	
 
    	
 
    

 

Convertible PIK Facility

 

	
Initial Amount
    	
 
    	
$
    	
400
    	
 
    	
 
    	
 
    
	
Interest (assume   100% PIK)
    	
 
    	
11.0
    	
%
    	
 
    	
 
    
	
Punitive   Dilution Percentage
    	
 
    	
50.0
    	
%
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Outstanding   Principal Amount @ Maturity
    	
 
    	
$
    	
444
    	
 
    	
 
    	
 
    
	
Assumed DYN repayment   %
    	
 
    	
65.0
    	
%
    	
 
    	
 
    
	
DYN Repayment   Amount
    	
 
    	
$
    	
289
    	
 
    	
 
    	
 
    
	
ECP automatic   conversion %
    	
 
    	
35.0
    	
%
    	
 
    	
 
    
	
ECP automatic   conversion amount ($)
    	
 
    	
$
    	
155
    	
 
    	
 
    	
 
    
	
ECP optional   conversion of DYN’s unpaid 65%
    	
 
    	
100.0
    	
%
    	
 
    	
 
    
	
$ amount (incl.   punitive dilution)
    	
 
    	
—
    	
 
    	
 
    	
 
    
	
ECP optional conversion   of its 35%
    	
 
    	
100.0
    	
%
    	
 
    	
 
    
	
$ amount
    	
 
    	
—
    	
 
    	
 
    	
 
    
	
Total ECP   Conversion Amount
    	
 
    	
$
    	
155
    	
 
    	
 
    	
 
    
	
Loan amount   remaining
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    

 

Pro forma ownership - w/ dilution

 

	
Initial ECP   equity
    	
 
    	
$
    	
415
    	
 
    	
25.5
    	
%
    
	
Initial DYN   equity
    	
 
    	
$
    	
770
    	
 
    	
47.3
    	
%
    
	
ECP Conversion   Amount
    	
 
    	
$
    	
155
    	
 
    	
9.5
    	
%
    
	
DYN Conversion   Amount
    	
 
    	
$
    	
289
    	
 
    	
17.7
    	
%
    
	
Total equity
    	
 
    	
$
    	
1,629
    	
 
    	
 
    	
 
    
	
ECP   ownership
    	
 
    	
35.0
    	
%
    	
 
    	
 
    
	
DYN   ownership
    	
 
    	
65.0
    	
%
    	
 
    	
 
    

 

Note: all conversion and dilution calculations shall be based on capital contributions (no market value concept)

 

 

EXHIBIT D

 

TERMS OF LIQUIDITY FACILITY

 

	
Borrower:
    	
 
    	
Atlas Power Finance, LLC (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
Lender:
    	
 
    	
Dynegy Inc. (“Dynegy” or   the “Lender”).
    
	
 
    	
 
    	
 
    
	
Facility Amount:
    	
 
    	
$100.0 million (the “Facility   Amount”).
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Facility shall be available as loans (“Loans”) and/or by way of letters of credit (“Letters of Credit”) issued for the account of Dynegy under   the Credit Agreement or such other letter of credit facility as Dynegy may   determine in its sole discretion to support obligations of the Borrower; provided   that the aggregate principal amount of Loans and aggregate face amount of   Letters of Credit may not, in the aggregate, exceed the Facility Amount.
    
	
 
    	
 
    	
 
    
	
Letters of Credit:
    	
 
    	
The Borrower shall be obligated to reimburse Dynegy   for all costs and fees incurred by it in connection with the issuance of any   Letter of Credit (including, without limitation, Letter of Credit Fees and   Facing Fees) and shall reimburse Dynegy in full in cash in immediately   available funds immediately upon any drawing under any Letter of Credit.
    
	
 
    	
 
    	
 
    
	
Interest Rate/Borrowings:
    	
 
    	
The Borrower may elect that the Loans comprising   each borrowing bear interest and be subject to Interest Periods consistent   with those applicable to either Base Rate Loans or LIBOR Loans under the   Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Maturity:
    	
 
    	
Consistent with the initial maturity date with   respect to term loans under that certain term loan facility to be entered   into by the direct subsidiary of the Borrower in connection with the “Delta”   acquisition in an aggregate principal amount of up to $1,850.0 million or, if   later, the maturity date with respect to the latest maturing revolving   facility tranche under the Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Call Protection:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Guaranties:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Applicable Law:
    	
 
    	
State of New York.
    

 

 

EXHIBIT E

 

FORM OF ASSIGNMENT AGREEMENT

 

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”) is effective as of                      , 2016, by and among Energy Capital Partners III, LP, a Delaware limited partnership, Energy Capital Partners III-A, LP, a Delaware limited partnership, Energy Capital Partners III-B, LP, a Delaware limited partnership, Energy Capital Partners III-C, LP, a Delaware limited partnership, and Energy Capital Partners III-D, LP, a Delaware limited partnership (collectively, the “Assignors”), and Dynegy Atlas Holdings, LLC, a Delaware limited liability company (“Assignee”).

 

R E C I T A L S

 

WHEREAS, the Assignors collectively own 35% of the limited liability company interests in Atlas Power, LLC, a Delaware limited liability company (the “Transferred Interests”); and

 

WHEREAS, the Assignors desire to sell, assign, convey, transfer and deliver to Assignee, and Assignee desires to acquire from the Assignors, all of the Transferred Interests on the terms and conditions of this Assignment.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, including as set forth in the Amended and Restated Interim Sponsors Agreement, dated as of June 14, 2016, by and among Dynegy Inc., Atlas Power, LLC, the Assignors and Terawatt Holdings, LP, the receipt and adequacy of which are acknowledged, the parties hereto do hereby agree as follows:

 

1.  Purchase and Sale.  Each Assignor hereby sells, assigns, conveys, transfers and delivers to Assignee, free and clear of all claims, liens, pledges, options, charges, licenses, easements, security interests, restrictions, encumbrances or other interests or rights of any person, and Assignee hereby acquires from such Assignor, all of such Assignor’s right, title and interest in and to the Transferred Interests.

 

2.  Further Assurances.  The parties hereto will execute and deliver such further instruments and do such further acts and things as may be required to carry out the intent and purpose of this Assignment and the sale and assignment of the Transferred Interests  contemplated hereby.

 

3.  Governing Law.  This Assignment, including the interpretation, construction, validity and enforceability hereof, and the transactions contemplated herein, and all disputes between the parties under or related to this Assignment or the facts and circumstances leading to its execution or performance, whether in contract, tort or otherwise will be governed by the laws of the State of Delaware without regard to the conflict of laws rules thereof.

 

4.  Successors and Assigns.  This Assignment shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns.

 

 

5.  Counterparts.  This Assignment may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.  A facsimile transmission of this Assignment bearing a signature on behalf of a party will be legal and binding on such party.

 

[SIGNATURE PAGES FOLLOW]

 

2

 

IN WITNESS WHEREOF, the parties hereto have executed, or caused their duly authorized representatives to execute, this Assignment as of the date first above written.

 

	
 
    	
ENERGY   CAPITAL PARTNERS III, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-A, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-B, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
					

 

[SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION AGREEMENT]

 

 

	
 
    	
ENERGY   CAPITAL PARTNERS III-C, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-D, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
					

 

[SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION AGREEMENT]

 

 

	
 
    	
DYNEGY ATLAS HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Robert   C. Flexon
    
	
 
    	
 
    	
Title:
    	
President &   Chief Executive Officer
    

 

[SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION AGREEMENT]

 

 

EXHIBIT F

 

FORM OF TERMINATION AGREEMENT

 

 

EQUITY COMMITMENT AND GUARANTEE TERMINATION AGREEMENT

 

This EQUITY COMMITMENT AND GUARANTEE TERMINATION AGREEMENT (this “Agreement”) dated as of [·], 2016 (the “Execution Date”), by and among Atlas Power, LLC, a Delaware limited liability company (the “Atlas Power”), Atlas Power Finance, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Atlas Power (“Atlas Power Finance”), Energy Capital Partners III, LP, a Delaware limited partnership (“ECP III”), Energy Capital Partners III-A, LP, a Delaware limited partnership (“ECP III-A”), Energy Capital Partners III-B, LP, a Delaware limited partnership (“ECP III-B”), Energy Capital Partners III-C, LP, a Delaware limited partnership (“ECP III-C”), and Energy Capital Partners III-D, LP, a Delaware limited partnership (“ECP III-D” and together with ECP III, ECP III-A, ECP III-B and ECP III-C, “ECP”), International Power, S.A., a “societe anonyme” under the laws of Belgium (“International Power”), and GDF SUEZ Energy North America, Inc., a Delaware corporation and a wholly-owned subsidiary of International Power (“GDF”).

 

RECITALS

 

WHEREAS, GDF, International Power and Atlas Power Finance entered into that certain purchase agreement, dated as of February 24, 2016 (the “SPA”);

 

WHEREAS, in connection with the SPA, ECP III-A entered into that certain limited guarantee, dated as of February 24, 2016, for the benefit of GDF (the “Guarantee”); and

 

WHEREAS, in connection with the SPA, ECP, Atlas Power and Atlas Power Finance entered into that certain equity commitment letter, dated as of February 24, 2016 (the “ECL”), to which GDF is a third-party beneficiary.

 

NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENT

 

1.             Termination.  Effective as of the Execution Date, (i) each of GDF and International Power acknowledges and agrees for all purposes that the Guarantee is fully and finally terminated in its entirety for all Guaranteed Obligations (as such term is defined in the Guarantee) or other obligations covered by the Guarantee and is of no further force or effect whatsoever, and that no claim may be made against ECP III-A under the Guarantee, and (ii) each of GDF, International Power, Atlas Power and Atlas Power Finance agrees and acknowledges for all purposes that the ECL is fully and finally terminated in its entirety for the Equity Commitment (as such term is defined in the ECL) or other obligations covered by the ECL and is of no further force or effect whatsoever, and that no claim may be made against any of ECP III, ECP III-A, ECP III-B, ECP III-C or ECP III-D under the ECL.

 

2.             Release and Discharge.  Effective as of the Execution Date, (i) each of GDF and International Power, on behalf of itself and its successors and assigns, hereby fully, finally,

 

1

 

unconditionally, irrevocably and absolutely releases and forever discharges each of ECP III, ECP III-A, ECP III-B, ECP III-C and ECP III-D and each of their representatives, and their respective successors and assigns (collectively, the “ECP Releasees”) from any and all demands, Proceedings (as defined below), causes of action, orders, obligations, contracts, agreements, debts and liabilities whatsoever, whether known or unknown, suspected or unsuspected, both at law and in equity (collectively, “Claims”), which each of GDF and International Power now has, has ever had or may hereafter have against the respective ECP Releasees arising under or pursuant to the Guarantee (including with respect to any of the Guaranteed Obligations) or the ECL (including with respect to the Equity Commitment), and (ii) each of Atlas Power and Atlas Power Finance, on their behalf and on the behalf of their successors and assigns, hereby fully, finally, unconditionally, irrevocably and absolutely releases and forever discharges each of the ECP Releasees from any and all demands, Proceeding and Claims, which each of Atlas Power and Atlas Power Finance now has, has ever had or may hereafter have against the respective ECP Releasees arising under or pursuant to the ECL (including with respect to the Equity Commitment).

 

3.             No Proceeding.  Each of GDF, International Atlas Power and Atlas Power Finance hereby irrevocably covenants to refrain from, directly or indirectly, asserting any Claim, or commencing, instituting or causing to be commenced any action, suit, investigation, claim, hearing, arbitration or proceeding at law or in equity (“Proceeding”), of any kind against any ECP Releasee, based upon any matter released pursuant to the terms of this Agreement.

 

4.             Binding Effect.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto.

 

5.             Governing Law. This Agreement and all claims or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), shall be governed by the laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rules (whether of the State of Delaware or otherwise) that would cause the application of laws of any other jurisdiction.

 

6.             Submission to Jurisdiction; Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY (I) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE (OR, IF THE CHANCERY COURT OF THE STATE OF DELAWARE DECLINES TO ACCEPT JURISDICTION OVER A PARTICULAR MATTER, ANY STATE OR FEDERAL COURT WITHIN THE STATE OF DELAWARE) OVER ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS AGREEMENT, (II) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH DISPUTE, CLAIM OR CAUSE OF ACTION BROUGHT IN SUCH COURT OR ANY DEFENSE OF INCONVENIENT FORUM FOR THE MAINTENANCE OF SUCH DISPUTE AND (III) AGREES THAT A JUDGMENT IN ANY SUCH DISPUTE MAY BE ENFORCED IN OTHER

 

 

JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

 

EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDING BROUGHT BY OR AGAINST IT, DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

7.             Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all the counterparts together shall constitute one and the same instrument.

 

8.             Severability.  Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision so long as the economic or legal substance of the transactions contemplated herein are not affected in any manner materially adverse to any party to this Agreement.  Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated herein are fulfilled as originally contemplated to the fullest extent possible.

 

[signature page follows]

 

 

IN WITNESS WHEREOF, the patties hereto have caused this Agreement to be duly executed by its duly authorized representative as of the Execution Date.

 

	
 
    	
ENERGY   CAPITAL PARTNERS III, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-A, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-B, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
					

 

Signature Page to Termination Agreement

 

 

	
 
    	
ENERGY   CAPITAL PARTNERS III-C, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
ENERGY   CAPITAL PARTNERS III-D, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners GP III, LP
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Energy   Capital Partners III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Tyler Reeder
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
ATLAS   POWER, LLC
    
	
 
    	
 
    
	
 
    	
By:  Dynegy Atlas Holdings, LLC, its managing   member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Robert   C. Flexon
    
	
 
    	
Title:
    	
President &   Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ATLAS   POWER FINANCE, LLC
    
	
 
    	
 
    
	
 
    	
By:  Atlas Power, LLC, its sole member
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Robert   C. Flexon
    
	
 
    	
Title:
    	
President &   Chief Executive Officer
    
					

 

 

	
 
    	
GDF   SUEZ ENERGY NORTH AMERICA, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTERNATIONAL   POWER, S.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Signature Page to Termination Agreement

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