Document:

Exhibit 10.5

 

EXECUTION COPY

 

Dated June 1, 2011

 

(1)                                  BUNGE LIMITED, as Performance Undertaking Provider

 

(2)                                  COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., as Administrative Agent

 

 

PERFORMANCE AND INDEMNITY AGREEMENT

 

 

 

CONTENTS

 

	
Clause
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Definitions
    	
2
    
	
2.
    	
 
    	
Performance Undertaking
    	
3
    
	
3.
    	
 
    	
General indemnity
    	
3
    
	
4.
    	
 
    	
Taxes
    	
4
    
	
5.
    	
 
    	
Agreement to pay costs and expenses
    	
6
    
	
6.
    	
 
    	
Obligations absolute; waivers of defenses
    	
7
    
	
7.
    	
 
    	
No impairment
    	
8
    
	
8.
    	
 
    	
Unenforceability of Performance Party’s   obligations
    	
9
    
	
9.
    	
 
    	
Representations and warranties
    	
10
    
	
10.
    	
 
    	
Covenants
    	
13
    
	
11.
    	
 
    	
Subrogation; subordination
    	
16
    
	
12.
    	
 
    	
Termination; reinstatement
    	
17
    
	
13.
    	
 
    	
Effect of bankruptcy
    	
17
    
	
14.
    	
 
    	
Judgment Currency
    	
18
    
	
15.
    	
 
    	
Benefit of Agreement
    	
18
    
	
16.
    	
 
    	
Assignment
    	
18
    
	
17.
    	
 
    	
Amendments and waivers
    	
19
    
	
18.
    	
 
    	
Notices
    	
19
    
	
19.
    	
 
    	
Governing law, jurisdiction and process
    	
20
    
	
20.
    	
 
    	
No proceedings; limited recourse
    	
20
    
	
21.
    	
 
    	
Entire agreement; severability
    	
21
    
	
22.
    	
 
    	
Execution
    	
22
    

 

 

THIS PERFORMANCE AND INDEMNITY AGREEMENT (this “Agreement”) is dated June 1, 2011 and made by and among:

 

(1)                                  BUNGE LIMITED, a company formed under the laws of Bermuda (the “Performance Undertaking Provider”), in favor of:

 

(2)                                  COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., as Administrative Agent on behalf of the Secured Parties under the Receivables Transfer Agreement and the other Transaction Documents referred to below (in such capacity, the “Administrative Agent”).

 

BACKGROUND:

 

(A)                              Each Originator has entered into an Originator Sale Agreement with an Intermediate Transferor or with the Seller, in either case as purchaser, pursuant to which such Originator, subject to the terms and conditions of such Originator Sale Agreement, will sell to such purchaser all of its right, title and interest in certain Receivables, Related Security and Collections.

 

(B)                                In order to finance its purchases of Receivables, Related Security and Collections pursuant to each Originator Sale Agreement to which it is a party, each Intermediate Transferor has entered into an Intermediate Transfer Agreement pursuant to which the Seller, subject to the terms and conditions of such Intermediate Transfer Agreement, will from time to time acquire Receivables, Related Security and Collections.

 

(C)                                In order to obtain the funds with which to acquire Receivables, Related Security and Collections from the Originators and the Intermediate Transferors, as applicable, the Seller has entered into the Receivables Transfer Agreement, pursuant to which the Conduit Purchasers may, in their sole discretion, and the Committed Purchasers shall, if a related Conduit Purchaser declines to do so, make Incremental Investments requested by the Seller from time to time, in each case subject to the terms and conditions of the Receivables Transfer Agreement.

 

(D)                               Each of the Originators and Bunge Finance B.V., a private limited liability company organized under the laws of the Netherlands (the “Master Servicer”), has entered into a Servicing Agreement with the Seller Parties and the Administrative Agent, pursuant to which, among other things, the Master Servicer has agreed to act as initial Master Servicer, and each of the Originators has agreed to act as a Sub-Servicer, in each case for the Seller Parties and the Administrative Agent, with respect to the servicing and collection of Receivables, Related Security and Collections.

 

(E)                                 The Subordinated Lender has entered into a Subordinated Loan Agreement with the Seller, pursuant to which the Subordinated Lender may, from time to time, among other things, make subordinated loans to the Seller in order to finance a portion of the purchase price of Receivables, Related Security and Collections to be acquired by the Seller from the Originators and the Intermediate Transferors and for the other purposes permitted under the Subordinated Loan Agreement.

 

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(F)                                 Each of the Originators, the initial Master Servicer, the Subordinated Lender and the Bunge Intermediate Transferor is (and any future Originator will be, and one or more future Intermediate Transferors may be) an Affiliate or direct or indirect Subsidiary of the Performance Undertaking Provider, and the Performance Undertaking Provider expects to receive substantial direct and indirect benefits from the transactions described above and the other transactions contemplated by the Originator Sale Agreements, the Intermediate Transfer Agreements, the Servicing Agreement, the Subordinated Loan Agreement and the other Transaction Documents.

 

(G)                                As an inducement for (1) the Seller Parties to purchase or otherwise acquire Receivables, Related Security and Collections from the Originators pursuant to the Originator Sale Agreements; (2) the Purchasers to make Incremental Investments under the Receivables Transfer Agreement; and (3) the Administrative Agent, the Purchasers and the other Secured Parties to participate in the transactions contemplated by the Receivables Transfer Agreement and the other Transaction Documents, the Performance Undertaking Provider has agreed, on the terms provided in this Agreement, to cause the due and punctual performance by each of the Originators and the other Performance Parties of their respective Obligations and to indemnify the Beneficiaries for any failure of such performance.

 

THIS AGREEMENT WITNESSES that:

 

1.                                       DEFINITIONS

 

1.1                                 Terms in Receivables Transfer Agreement

 

Unless otherwise defined herein, capitalized terms which are used in this Agreement have the meanings assigned to such terms in Section 1.1 (Certain defined terms) of the Receivables Transfer Agreement.  In the case of any inconsistency between such terms and the terms defined in Section 1.2 (Other defined terms) of this Agreement, the terms defined in Section 1.2 (Other defined terms) of this Agreement shall prevail for all purposes of this Agreement.  The principles of interpretation set forth in Sections 1.2 (Other terms) and 1.3 (Computations of time periods) of the Receivables Transfer Agreement apply to this Agreement as if fully set out herein.

 

1.2                                 Other defined terms

 

As used in this Agreement, capitalized terms defined in the preamble have the meanings as so defined, and the following terms have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

 

“Beneficiaries” means each of the “Secured Parties” under and as defined in the Receivables Transfer Agreement (including in their capacities as assignees of the rights of the Intermediate Transferors and the Seller).

 

“Bunge Intermediate Transferor” means the U.S. Intermediate Transferor and each other Intermediate Transferor which, at the time it becomes an Intermediate Transferor, is an Affiliate or direct or indirect Subsidiary of the Performance Undertaking Provider.

 

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“Indemnified Amounts” is defined in Section 3 (General indemnity).

 

“Indemnified Party” is defined in Section 3 (General indemnity).

 

“Obligations” means, collectively, all covenants, agreements, terms, conditions, deemed collection undertakings, indemnities and other obligations of whatever nature to be performed and observed by each Performance Party under the Transaction Documents, whether monetary or non-monetary, including the due and punctual payment of all sums which are or may become due and owing by such Performance Party under the Transaction Documents, whether for fees, expenses, indemnified amounts, deemed collections or otherwise, including interest, fees and other obligations that accrue after the commencement of any bankruptcy, insolvency, reorganization, arrangement or similar proceeding (whether or not allowed as a claim in such proceeding); provided that the Obligations shall not include any obligation of the Seller to pay Yield, Fees or any Invested Amount under the Receivables Transfer Agreement.

 

“Performance Parties” means (a) each of the Originators, (b) each of the Servicer Parties that is an Affiliate or direct or indirect Subsidiary of the Performance Undertaking Provider, (c) each Bunge Intermediate Transferor, (d) the Seller and (e) the Subordinated Lender, in each case, in any capacity in which it is a party to any Transaction Document.

 

“Receivables Transfer Agreement” means the Receivables Transfer Agreement dated the date hereof by and among the Seller, the Master Servicer, the Performance Undertaking Provider, the Conduit Purchasers and Committed Purchasers from time to time party thereto, and the Administrative Agent.

 

2.                                       PERFORMANCE UNDERTAKING

 

(a)                                  The Performance Undertaking Provider hereby agrees for the benefit of each of the Beneficiaries to cause each Performance Party to pay and perform its Obligations when and as due in accordance with the Transaction Documents.

 

(b)                                 If any Performance Party fails to pay or perform any of its Obligations when and as due in accordance with the Transaction Documents, then the Performance Undertaking Provider shall, subject to a Responsible Officer of the Performance Undertaking Provider receiving notice from any Beneficiary of or otherwise being aware of such failure and subject to any grace period applicable to the Obligations in accordance with the Transaction Documents, immediately perform, or cause the performance of, such Obligations, and shall, subject to such grace period, immediately pay to the Administrative Agent for the account of the relevant Beneficiaries, in same day funds, any such Obligations for the payment of money.

 

3.                                       GENERAL INDEMNITY

 

Without limiting any other rights that any Beneficiary or any of their respective officers, directors, agents, employees, controlling Persons or Affiliates of any of the foregoing (each an “Indemnified Party”) may have hereunder, under any other Transaction Document or under applicable Law, the Performance Undertaking Provider hereby agrees

 

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to indemnify and hold harmless each Indemnified Party from and against any and all damages, losses, claims, liabilities, deficiencies, costs, disbursements and expenses, including interest, penalties, amounts paid in settlement and reasonable attorneys’ fees and expenses (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against or incurred by any Indemnified Party (including in connection with or relating to any investigation by an Official Body, litigation or lawsuit (actual or threatened) or order, consent, decree, judgment, claim or other action of whatever sort (including the preparation of any defense with respect thereto)), in each case, arising out of or resulting from this Agreement or any other Transaction Document or any transaction contemplated hereby or thereby, excluding, however, (a) Indemnified Amounts to the extent that such Indemnified Amounts resulted from the negligence, fraud or wilful misconduct on the part of such Indemnified Party; (b) recourse (except as otherwise specifically provided in this Agreement or any other Transaction Document) for Uncollectible Portfolio Receivables and the Related Security and Collections with respect thereto; (c) any Excluded Taxes and (d) any Indemnified Amount to the extent the same has been fully and finally paid in cash to such Indemnified Party pursuant to any other provision of this Agreement or any other Transaction Document; provided that nothing in this Section 3 shall be construed as constituting a guarantee or indemnity in respect of the Seller’s obligation to make payments with respect to Yield, Fees or any Invested Amounts pursuant to the Receivables Transfer Agreement.

 

4.                                       TAXES

 

(a)                                  Any and all payments and distributions by the Performance Undertaking Provider under this Agreement shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Performance Undertaking Provider shall be required to deduct any Indemnified Taxes or Other Taxes from any such payment or distribution, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 4), the recipient of such payment receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Performance Undertaking Provider shall make such deductions, and (iii) the Performance Undertaking Provider shall pay the full amount deducted to the relevant Official Body in accordance with applicable Law.

 

(b)                                 In addition, the Performance Undertaking Provider shall pay any Other Taxes to the relevant Official Body in accordance with applicable Law.

 

(c)                                  The Performance Undertaking Provider shall indemnify each Indemnified Party within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by such Indemnified Party on or with respect to any payment by or on account of any obligation of the Performance Undertaking Provider hereunder (including Indemnified Taxes or Other Taxes required to be deducted or withheld from any payment made pursuant to any Transaction Document or imposed or asserted on or attributable to amounts payable under this Section 4) and any penalties, interest and reasonable expenses

 

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arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Official Body (other than those resulting from the Indemnified Party’s gross negligence, fraud or wilful misconduct).  A certificate (along with a copy of the applicable documents from the relevant Official Body) as to the amount of such payment or liability delivered to the Performance Undertaking Provider by an Indemnified Party, or by the Administrative Agent on its own behalf or on behalf of another Indemnified Party, shall be conclusive absent manifest error.  In connection with any request for compensation pursuant to this Section 4, the relevant Indemnified Party shall deliver to the Performance Undertaking Provider a receipt (or other evidence reasonably satisfactory to the Performance Undertaking Provider) of such payment or liability with respect to which such request relates.

 

(d)                                 As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Performance Undertaking Provider to an Official Body, the Performance Undertaking Provider shall deliver to the applicable Indemnified Party the original or a certified copy of a receipt issued by such Official Body evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to such Indemnified Party.

 

(e)                                  Upon the reasonable request of the Performance Undertaking Provider, any Indemnified Party that is entitled to an exemption from or reduction of withholding Tax under the law of the jurisdiction in which the Performance Undertaking Provider is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Performance Undertaking Provider (with a copy to the Administrative Agent), such properly completed and executed documentation prescribed by applicable Law (and, so far as is practicable within the time or times required by applicable Law) as will permit such payments to be made without withholding or at a reduced rate; provided, that such Indemnified Party is legally able to complete, execute and deliver such documentation and such documentation has not already been provided by the Indemnified Party pursuant to Section 4(f) hereof.

 

(f)                                    Each Indemnified Party shall deliver to the Performance Undertaking Provider either (A) in the case of an Indemnified Party that is not a “U.S. Person” as defined in section 7701(a)(30) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), a properly completed and executed Internal Revenue Service (“IRS”) Form W-8BEN or W-8ECI, as appropriate, claiming to the effect a zero percent rate of U.S. federal income tax withholding on interest income, or (B) in the case of an Indemnified Party that is a “U.S. Person” as defined in Code section 7701(a)(30), a properly completed and executed IRS Form W-9 certifying that it is not subject to backup withholding.

 

Such IRS forms shall be delivered by each applicable Indemnified Party on or prior to the date on which such Indemnified Party becomes an Indemnified Party under this Agreement.  In addition, each Indemnified Party shall deliver such

 

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applicable IRS forms upon the obsolescence or invalidity of any IRS form previously delivered by such Indemnified Party; provided, however, that notwithstanding any other provision in this Section 4, an Indemnified Party shall not be required to deliver any such subsequent IRS form pursuant to this paragraph that such Indemnified Party is not legally able to complete, execute and deliver.

 

(g)                                 If an Indemnified Party determines, in its sole good faith discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Performance Undertaking Provider or with respect to which the Performance Undertaking Provider has paid additional amounts pursuant to this Section 4, it shall pay over such refund to the Performance Undertaking Provider (but only to the extent of indemnity payments made, or additional amounts paid, by the Performance Undertaking Provider under this Section 4 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such Indemnified Party and without interest (other than any interest paid by the relevant Official Body with respect to such refund net of any applicable Taxes payable in respect of such interest); provided that the Performance Undertaking Provider, upon the request of such Indemnified Party, agrees to repay the amount paid over to the Performance Undertaking Provider (plus any penalties, interest or other charges imposed by the relevant Official Body) to such Indemnified Party in the event such Indemnified Party is required to repay such refund to such Official Body.  This Section 4 shall not be construed to require any Indemnified Party to make available its Tax returns (or any other information relating to its Taxes which it deems confidential) to the Performance Undertaking Provider or any other Person.

 

(h)                                 Each Indemnified Party agrees that after it becomes aware of the occurrence of any event that would cause the Performance Undertaking Provider to pay an additional amount pursuant to this Section 4 with respect to Taxes or Other Taxes such Indemnified Party will use reasonable efforts to notify the Performance Undertaking Provider of such event.

 

(i)                                     Notwithstanding anything in this Section 4 to the contrary, the Performance Undertaking Provider shall not be required to pay to any Indemnified Party any amount pursuant to this Section 4 to the extent (i) such amount has been fully and finally paid in cash to such Indemnified Party pursuant to any other provision of this Agreement or any other Transaction Document or (ii) such amounts constitute Excluded Taxes.

 

5.                                       AGREEMENT TO PAY COSTS AND EXPENSES

 

The Performance Undertaking Provider further agrees, as the principal obligor and not as a surety, to pay to the Administrative Agent for the benefit of the relevant Beneficiaries immediately upon written demand and in immediately available funds any and all stamp duty and other Taxes and fees payable in connection with the execution, delivery, filing and recording of any of the Transaction Documents (or any instrument or other document

 

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to be executed, delivered, filed or recorded under or in connection with any of the Transaction Documents); and the Performance Undertaking Provider agrees to save each Indemnified Party harmless from and against any liabilities with respect to or resulting from any delay in paying or omission to pay such Taxes and fees.

 

6.                                       OBLIGATIONS ABSOLUTE; WAIVERS OF DEFENSES

 

The Performance Undertaking Provider’s obligations under this Agreement are absolute, unconditional and continuing and are in no way conditioned upon any of the matters listed below in this Section 6.  To the extent any such matter would, but for this Section 6, reduce, release, prejudice or otherwise limit or impair any of the Performance Undertaking Provider’s obligations under this Agreement, the Performance Undertaking Provider irrevocably waives:

 

(a)                                  any requirement of notice of acceptance of this Agreement or of any action taken or omitted by any Beneficiary or any other Person in reliance on this Agreement;

 

(b)                                 any requirement of presentment, protest, demand or notice of any nature (other than as expressly provided in this Agreement);

 

(c)                                  any requirement that the Administrative Agent or any other Beneficiary be diligent or prompt in giving notice of any Facility Event or other default or omission by any Performance Party under any Transaction Document or otherwise or in making any demand or asserting any rights of any Beneficiary under this Agreement;

 

(d)                                 any right (whether now existing or hereafter arising) to require any Beneficiary or any other Person:

 

(i)                                     to accelerate the repayment of any Obligations;

 

(ii)                                  to attempt to collect from any Performance Party any amounts owing by such Performance Party to any Beneficiary;

 

(iii)                               to file any claims in the event of receivership, bankruptcy, administration, arrangement or reorganization (or equivalent proceeding under any applicable Insolvency Law) of any Performance Party or any other Person;

 

(iv)                              to give notice to the Performance Undertaking Provider of the terms, time and place of any sale of any security for the Obligations; or

 

(v)                                 to proceed against any Performance Party, any other guarantor or any other Person, to proceed against or exhaust any security or collateral for any of the Obligations, or to exercise any right of set-off or any other means of obtaining payment or performance of any of the Obligations; and

 

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(e)                                  any and all defenses (i) that at any time may be available in respect of the Obligations by virtue of any Insolvency Law now or hereafter in effect and (ii) based on suretyship or impairment of collateral.

 

7.                                       NO IMPAIRMENT

 

Each Beneficiary (and its assigns) shall be at liberty, without giving notice to or obtaining the assent of the Performance Undertaking Provider or any other Person and without relieving the Performance Undertaking Provider of any liability under this Agreement, to deal with each Performance Party, and with each other party who now is or after the date hereof becomes liable in any manner for any of the Obligations, in such manner as such Beneficiary in its sole discretion deems fit, and to this end the Performance Undertaking Provider agrees that the validity and enforceability of this Agreement, and the Performance Undertaking Provider’s obligations under this Agreement, shall not be impaired or affected by any of the following:

 

(a)                                  any extension, modification or renewal of, or indulgence with respect to, or substitution for, any or all of the Obligations at any time (including any change in the time, manner or place of payment of, or in any other term of, all or any part of the Obligations or any other extension, compromise or renewal of any Obligations) (except that such extension, modification or renewal of, or indulgence with respect to, or substitution for, any or all of the Obligations, if duly made in accordance with the Transaction Documents, shall be given effect in determining the extent of the Obligations which the Performance Undertaking Provider is required to perform or cause to be performed);

 

(b)                                 any failure or omission to enforce any right, power or remedy with respect to any or all of the Obligations or any related agreement, or any collateral securing any or all of the Obligations;

 

(c)                                  any amendment to, rescission, waiver, or other modification of, or any consent to or departure from, any of the terms of the Transaction Document (except that such amendment, rescission, waiver, modification or consent, if duly made in accordance with the Transaction Documents, shall be given effect in determining the extent of the Obligations which the Performance Undertaking Provider is required to perform or cause to be performed);

 

(d)                                 any reduction, limitation, impairment or termination of any or all of the Obligations or any of them for any reason, including any claim of waiver, release, surrender, alteration or compromise (except that any reduction, limitation, impairment or termination of any or all of the Obligations, if duly made in accordance with the Transaction Documents, shall be given effect in determining the extent of the Obligations which the Performance Undertaking Provider is required to perform or cause to be performed);

 

(e)                                  the genuineness, enforceability or validity of any or all of the Obligations, any security for the Obligations or any agreement relating to any of them;

 

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(f)            the application of moneys received from any source to the payment of any Obligations for the payment of money or to the payment of other amounts which are not Obligations even though any Beneficiary might lawfully have elected to apply such moneys in a different manner;

 

(g)           the existence of any claim, setoff or other rights which the Performance Undertaking Provider or any other Person may have at any time against any Performance Party or any Beneficiary in connection with the Transaction Documents or any related or unrelated transaction;

 

(h)           any assignment or transfer by any Secured Party of any or all of the Obligations permitted by the Transaction Documents;

 

(i)            any transfer or purported transfer, any consolidation or merger of any Beneficiary with or into any other corporation or entity, or any change whatsoever in the objects, assets, capital structure, constitution or business of such Beneficiary;

 

(j)            any failure on the part of any Performance Party or any Beneficiary to perform or comply with any term of the Transaction Documents or any other document executed in connection with or delivered pursuant to any of them;

 

(k)           any impossibility or impracticality of performance, illegality, force majeure, or any act of any Official Body with respect to the Obligations;

 

(l)            any disability or other defense of any Person with respect to the Obligations, whether consensual or arising by operation of Law;

 

(m)          any other circumstance whatsoever (with or without notice to or knowledge of the Performance Undertaking Provider) which constitutes, or might be construed to constitute, an equitable or legal discharge of, or defense available to, the Performance Undertaking Provider under this Agreement, all whether or not the Performance Undertaking Provider shall have had notice or knowledge of any act or omission, condition or occurrence referred to above in this Section 7.

 

8.             UNENFORCEABILITY OF PERFORMANCE PARTY’S OBLIGATIONS

 

(a)           This Agreement shall be binding on the Performance Undertaking Provider notwithstanding:

 

(i)            any change of ownership of any Performance Party or any other Person or the insolvency, bankruptcy, reorganization, arrangement or any other change in the legal status of any Performance Party or any other Person;

 

(ii)           any change in or the imposition of any Law, decree, regulation or other governmental act which does or might impair, delay or in any way affect the validity, enforceability or the payment when due of the Obligations;

 

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(iii)          the failure of any Performance Party or the Performance Undertaking Provider or any other Person to maintain in full force, validity or effect or to obtain or renew when required all governmental and other approvals, licenses or consents required in connection with the Obligations or this Agreement, or to take any other action required in connection with the performance of all obligations pursuant to the Obligations or this Agreement; or

 

(iv)          if any of the moneys included in the Obligations have become unrecoverable from any Performance Party for any reason other than indefeasible payment in full of the payment Obligations in accordance with their terms.

 

(b)           This Agreement shall be in addition to any other guarantee, indemnity or other security for the Obligations, and shall not be rendered unenforceable by the invalidity of any such other guarantee, indemnity or security.

 

(c)           In the event that acceleration of the time for payment of any of the Obligations is stayed upon the insolvency, bankruptcy, arrangement or reorganization of any Performance Party or for any other reason with respect to any Performance Party, all such amounts then due and owing with respect to the Obligations under the terms of the Transaction Documents, or any other agreement evidencing, securing or otherwise executed in connection with the Obligations, shall be immediately due and payable by the Performance Undertaking Provider.

 

9.             REPRESENTATIONS AND WARRANTIES

 

The Performance Undertaking Provider hereby represents and warrants to each Beneficiary, as of the date of this Agreement and each other date the Seller is required to make a representation and warranty in accordance with Section 4.1 (Representations and Warranties of the Seller) of the Receivables Transfer Agreement that:

 

(a)           The Performance Undertaking Provider (i) is a company duly organized and validly existing under the laws of its jurisdiction of organization, (ii) is duly qualified to do business, and is in good standing, in every other jurisdiction where the nature of its business requires it to be so qualified, unless the failure to so qualify would not have a Material Adverse Effect, and (iii) has all corporate or other organizational power and authority required to perform its obligations under the Transaction Documents to which it is a party and to carry on its business in each jurisdiction in which its business is now conducted unless the failure to have such power and authority would not have a Material Adverse Effect.

 

(b)           The execution, delivery and performance by the Performance Undertaking Provider of this Agreement and any other Transaction Document to which it is a party (i) are within the Performance Undertaking Provider’s corporate powers, (ii) have been duly authorized by all necessary corporate action, and (iii) do not contravene or constitute a default under (A) its Organizational Documents, (B)

 

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any applicable Law, (C) any contractual restriction binding on or affecting the Performance Undertaking Provider or its property or (D) any order, writ, judgment, award, injunction or decree binding on or affecting the Performance Undertaking Provider or its property, except in each case where any such contravention or default would not have a Material Adverse Effect, and (iv) do not result in or require the creation or imposition of any Adverse Claim (other than Permitted Adverse Claims) upon or with respect to any Portfolio Receivable, the Related Security or Collections with respect thereto or any Facility Account.  This Agreement and each other Transaction Document to which the Performance Undertaking Provider is a party have been duly executed and delivered by the Performance Undertaking Provider.

 

(c)           No authorization, approval, license, consent, qualification or other action by, and no notice to or filing or registration with, any Official Body or official thereof or any third party is required for the due execution, delivery and performance by the Performance Undertaking Provider of this Agreement or any other Transaction Document to which it is a party or any other document to be delivered by it hereunder or thereunder, except where the failure to have obtained any such authorization or approval or taken any such action or made any such filing or notice would not have a Material Adverse Effect.

 

(d)           Each of this Agreement and the other Transaction Documents to which it is a party constitutes the legal, valid and binding obligation of the Performance Undertaking Provider enforceable against the Performance Undertaking Provider in accordance with its terms, subject to any limitation on the enforceability thereof against the Performance Undertaking Provider arising from the application of any applicable Insolvency Law or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or law).

 

(e)           All information, data, exhibits, documents, books, records and reports (“Information”) furnished by or on behalf of the Performance Undertaking Provider in connection with this Agreement, any other Transaction Document or any transaction contemplated hereby or thereby is complete and accurate in all material respects as of its date, and no such Information contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they were made, not materially misleading (provided that, with respect to projected financial information provided by or on behalf of the Performance Undertaking Provider, the Performance Undertaking Provider represents only that such information was prepared in good faith by management of the Performance Undertaking Provider on the basis of assumptions believed by such management to be reasonable as of the time made).  All financial statements which have been furnished by or on behalf of the Performance Undertaking Provider (i) have been prepared in accordance with GAAP consistently applied (except as approved by the external auditors and as disclosed therein, if any) and (ii) fairly present, in all material aspects, the financial condition of the Performance Undertaking Provider and, if applicable, its consolidated Subsidiaries as of the dates set forth therein

 

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and the results of any operations of the Performance Undertaking Provider and, if applicable, its consolidated Subsidiaries for the periods ended on such dates.

 

(f)            There are no actions, suits, investigations by an Official Body, litigation or proceedings at law or in equity or by or before any Official Body or in arbitration now pending against or affecting the Performance Undertaking Provider or any of its Subsidiaries or any of its or their respective businesses, revenues or other property (i) which involve or question the validity of this Agreement or any other Transaction Document to which it is a party or any of the transactions contemplated hereby or thereby (excluding any litigation or proceeding against any Obligor) or (ii) which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.  The Performance Undertaking Provider is not in default or violation of any order, judgment or decree of any Official Body or arbitrator which would reasonably be expected to have a Material Adverse Effect.

 

(g)           The Performance Undertaking Provider has (i) timely filed or caused to be filed all material Tax returns required to be filed and (ii) paid or made adequate provision for the payment of all material Taxes, assessments and other governmental charges due and payable by it, except (A) any such Taxes, assessments or other governmental charges that are being contested in good faith by appropriate proceedings and for which the Performance Undertaking Provider has set aside in its books adequate reserves in accordance with GAAP as reasonably determined by the Performance Undertaking Provider, or (B) to the extent that failure to do so would not reasonably be expected to result in a Material Adverse Effect.

 

(h)           The Performance Undertaking Provider is not an “investment company” as defined in, or is exempt from the registration requirements of, the U.S. Investment Company Act of 1940, as amended.

 

(i)            The direct and indirect benefits to the Performance Undertaking Provider from the transactions contemplated by the Transaction Documents provide fair market value to the Performance Undertaking Provider for the obligations it undertakes pursuant to this Agreement.

 

(j)            The Performance Undertaking Provider’s obligations under this Agreement and the other Transaction Documents to which it is a party rank at least pari passu with all of its unsecured unsubordinated Indebtedness (other than any such Indebtedness that is preferred by mandatory provision of law).

 

(k)           The Performance Undertaking Provider has adequate means to obtain from each Performance Party information concerning the financial condition of such Performance Party, and it is not relying on any Beneficiary to provide any such information.

 

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10.           COVENANTS

 

Until the Final Payout Date, the Performance Undertaking Provider will:

 

10.1         Compliance with Laws, etc.

 

Comply in all material respects with all applicable Laws and preserve and maintain its corporate existence, rights, franchises, qualifications and privileges, except to the extent that the failure so to comply with such Laws or the failure so to preserve and maintain such existence, rights, franchises, qualifications and privileges would not have a Material Adverse Effect.

 

10.2         Reporting requirements

 

Furnish or cause to be furnished:

 

(a)           Annual audited financial statements

 

To the Administrative Agent as soon as available and in any event within 120 days after the close of each of its fiscal years, audited financial statements of the Performance Undertaking Provider and its consolidated Subsidiaries as of the end of and for that fiscal year in each case prepared in accordance with GAAP consistently applied throughout the period reflected therein and with prior periods (except as approved by its accountants and disclosed therein), certified by its independent public accountants; provided, however, that the Performance Undertaking Provider shall not be required to deliver the financial statements described in this clause (a) if (i) such statements are available within the time period required by applicable laws on EDGAR or from other public sources and (ii) the Performance Undertaking Provider provides notice to the Administrative Agent of the public availability of such statements.

 

(b)           Quarterly financial statements

 

To the Administrative Agent as soon as available and in any event within 60 days after the end of each of its first three fiscal quarters of each fiscal year, financial statements of the Performance Undertaking Provider and its consolidated Subsidiaries as of the end of and for that fiscal quarter in each case prepared in accordance with GAAP consistently applied throughout the period reflected therein and with prior periods (except as approved by its chief financial officer), certified by the chief financial officer of the Performance Undertaking Provider; provided, however, that the Performance Undertaking Provider shall not be required to deliver the financial statements described in this clause (b) if (i) such statements are available within the time period required by applicable laws on EDGAR or from other public sources and (ii) the Performance Undertaking Provider provides notice to the Administrative Agent of the public availability of such statements.

 

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(c)           Officer’s certificate

 

To the Administrative Agent concurrently with each of the financial statements to be delivered under Sections 10.2(a) and (b), a certificate of the chief financial officer, treasurer or controller of the Performance Undertaking Provider stating that no Facility Event has occurred and is continuing (or, if any such event is continuing, describing in reasonable detail such event and the steps, if any, being taken or to be taken by the Performance Undertaking Provider or any of the Performance Parties to remedy such event).

 

(d)           Notice of Facility Events

 

As soon as possible and in any event within two Business Days after a Responsible Officer of the Performance Undertaking Provider obtains knowledge of the occurrence of any Facility Event, to each Agent a statement of a Responsible Officer of the Performance Undertaking Provider setting forth details of such Facility Event and, if applicable, the action that the Performance Undertaking Provider or any of the Facility Parties has taken and proposes to take with respect thereto.

 

(e)           Notice of downgrades

 

As soon as possible and in any event within five (5) Business Days after a Responsible Officer of the Performance Undertaking Provider obtains knowledge thereof, to each Agent notice of any downgrade in the Applicable S&P Rating or Applicable Moody’s Rating, respectively (or the withdrawal by either S&P or Moody’s of the Applicable S&P Rating or Applicable Moody’s Rating, respectively), setting forth the debt affected and the nature of such change (or withdrawal).

 

(f)            Termination or Suspension of Originator Sale Agreement or Intermediate Transfer Agreements

 

To each Agent (i) at least two (2) Business Days’ prior written notice of any termination of the sale of Receivables by an Originator to the Seller or an Intermediate Transferor, as the case may be, pursuant to the related Originator Sale Agreement to which such Originator is a party and (ii) as soon as possible and in any event within two (2) Business Days  after a Responsible Officer of the Performance Undertaking Provider obtains knowledge of the occurrence thereof, notice of any Seller Event under any Originator Sale Agreement.

 

(g)           Litigation; Material Adverse Effect

 

Promptly (and in any event within five (5) Business Days) after a Responsible Officer of the Performance Undertaking Provider obtains knowledge thereof, to each Agent notice of:

 

(i)            (A) the filing or commencement of, or any written threat or notice of intention of any Person to file or commence, any action, suit, litigation or proceeding, whether at law or in equity or by or before any Official Body

 

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or in arbitration against, or any investigation by any Official Body that may exist with respect to any Transaction Party, the Facility Accounts, the Transaction Documents or the transactions contemplated thereby, in each case, which could reasonably be expected, in the reasonable discretion of the Performance Undertaking Provider, to have a Material Adverse Effect or (B) any material adverse development that has occurred with respect to any such previously disclosed litigation, investigation or proceeding; and

 

(ii)           any other event or condition with respect to any Transaction Party that has had, or in the reasonable discretion of the Performance Undertaking Provider would reasonably be expected to have, a Material Adverse Effect.

 

(h)           Other information

 

As soon as reasonably practical and in any event no later than ten (10) Business Days after a request by any Agent, such other information with respect to (i) the Portfolio Receivables, the Related Security and Collections with respect thereto or the Facility Accounts as such Agent may from time to time reasonably request, or (ii) any Facility Event or Material Adverse Effect related to the Performance Undertaking Provider as such Agent may from time to time reasonably request (which shall include an explanation of the reason for such request).

 

10.3         Mergers, etc.

 

Except to the extent expressly permitted by the Transaction Documents, not liquidate or dissolve or enter into any amalgamation, merger or consolidation with any Person (other than any amalgamation, consolidation or merger of any Subsidiary with and into the Performance Undertaking Provider so long as the Performance Undertaking Provider shall be the surviving, resulting or continuing company), or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions), all or substantially all of the property (whether now owned or hereafter acquired) of the Performance Undertaking Provider and its consolidated Subsidiaries (taken as a whole) to any Person (each, a “Restricted Transaction”), unless (a) the Performance Undertaking Provider shall, subject to applicable Law, have given the Administrative Agent and each Committed Purchaser twenty (20) Business Days’ prior written notice of such Restricted Transaction, (b) if applicable, the surviving entity provides an acknowledgment or reaffirmation of its obligations hereunder and under the other Transaction Documents to which it is (or the applicable non-surviving entity was) a party, together with such opinions of counsel as any Agent may reasonably request, in each case, in form and substance reasonably satisfactory to such Agent, (c) no Material Adverse Effect would occur as a result of such Restricted Transaction and (d) no Facility Event exists after giving effect to such Restricted Transaction.

 

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10.4         Taxes

 

File all material Tax returns and reports required by Law to be filed by it and will within the time period required by applicable Law or regulation pay all material Taxes and governmental charges at any time then due and payable by it, except to the extent such Taxes or governmental charges are being contested in good faith by appropriate proceedings and the Performance Undertaking Provider has set aside in its books adequate reserves in accordance with GAAP as reasonably determined by the Performance Undertaking Provider or the failure to do so would not reasonably be expected to have a Material Adverse Effect.

 

10.5         Sales, liens, etc.

 

Not sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim (except for Permitted Adverse Claims) upon or with respect to, the Portfolio Receivables, the Related Security and Collections with respect thereto, or the Facility Accounts, or any of its rights, title, interest in, to and under any of them (including any right to receive income in respect thereof) except pursuant to, and in accordance with, the Transaction Documents.

 

10.6         Amendments

 

Not make any material amendment or other modification to any Transaction Document to which it is a party except in accordance with the amendment provisions thereof.

 

10.7         Licenses, etc.

 

Shall maintain in full force and effect all licenses, approvals, authorizations, consents, registrations and notifications which are at any time required in connection with the performance of its duties and obligations hereunder and under the other Transaction Documents to which it is a party, except to the extent failure to do so would not have a Material Adverse Effect.

 

10.8         Change in auditors or accounting policies

 

Promptly notify the Administrative Agent of (i) any change in its auditors or (ii) any material change in its accounting policies to the extent such change in accounting policies could reasonably be expected to have a Material Adverse Effect.

 

11.           SUBROGATION; SUBORDINATION

 

11.1         Notwithstanding anything to the contrary contained herein, the Performance Undertaking Provider:

 

(a)           will not exercise or assert, until the Final Payout Date, any rights of subrogation (whether contractual, at law or in equity or otherwise) to the claims of any Beneficiary against any Performance Party, and until the Final Payout Date hereby waives any and all contractual, statutory or legal or equitable rights of

 

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contribution, reimbursement, indemnification and similar rights and claims which the Performance Undertaking Provider might now have or hereafter acquire against any Performance Party in connection with, or as a result of, the existence or performance of the Performance Undertaking Provider’s obligations under this Agreement;

 

(b)           will not claim any setoff, recoupment or counterclaim against any Performance Party in respect of any liability of the Performance Undertaking Provider to any Performance Party until the Final Payout Date; and

 

(c)           waives any benefit of and any right to participate in any collateral security which may be held by any Beneficiary (or its assigns).

 

11.2         The payment of any amounts due with respect to any indebtedness of any Performance Party now or hereafter owed to the Performance Undertaking Provider is hereby subordinated to the Obligations.  The Performance Undertaking Provider agrees that, after the occurrence of any default in the payment or performance of any of the Obligations, until the Final Payout Date, the Performance Undertaking Provider will not demand, sue for or otherwise attempt to collect any indebtedness of any Performance Party to the Performance Undertaking Provider in its capacity as such.  If, notwithstanding the foregoing sentence, the Performance Undertaking Provider collects, enforces or receives any amounts in respect of such indebtedness before the Final Payout Date, it shall collect, enforce or receive and hold such amounts as trustee for the Beneficiaries and shall pay such amounts to the Administrative Agent on behalf of the Beneficiaries on account of the Obligations, without affecting in any manner the liability of the Performance Undertaking Provider under the other provisions of this Agreement.

 

11.3         The provisions of this Section 11 shall be supplemental to and not in derogation of any rights and remedies of any Beneficiary under any separate subordination agreement which any Beneficiary may at any time and from time to time enter into with the Performance Undertaking Provider.

 

12.           TERMINATION; REINSTATEMENT

 

The Performance Undertaking Provider’s obligations under this Agreement shall continue in full force and effect until the Final Payout Date; provided that this Agreement shall continue to be effective or shall be reinstated, as the case may be, if at any time payment or other satisfaction of any of the Obligations is rescinded or must otherwise be restored or returned upon the bankruptcy, insolvency, arrangement or reorganization of any Performance Party or otherwise, as though such payment had not been made or such other satisfaction had not occurred.

 

13.           EFFECT OF BANKRUPTCY

 

This Agreement shall survive the bankruptcy, insolvency, reorganization or arrangement of any Performance Party and the commencement of any case or proceeding by or against any Performance Party under any applicable bankruptcy, insolvency or similar Law of any jurisdiction.  No stay of actions or remedies under any applicable bankruptcy,

 

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insolvency or similar Law of any jurisdiction to which any Performance Party is subject shall postpone the obligations of the Performance Undertaking Provider under this Agreement, except to the extent required by Law.

 

14.           JUDGMENT CURRENCY

 

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

 

14.2         The obligations of the Performance Undertaking Provider in respect of any sum due to any Beneficiary shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due under this Agreement (the “Agreement Currency”), be discharged only to the extent that, on the Business Day following receipt by that Beneficiary of any sum adjudged to be so due in the Judgment Currency, the Beneficiary may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Beneficiary in the Agreement Currency, the Performance Undertaking Provider agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Beneficiary against such loss.  The obligations of the Performance Undertaking Provider contained in this Section 14 shall survive the termination of this Agreement and the payment of all other amounts owing under this Agreement.

 

15.           BENEFIT OF AGREEMENT

 

15.1         This Agreement shall be binding upon the Performance Undertaking Provider, its successors and permitted assigns, and shall inure to the benefit of and be enforceable by each Beneficiary and its successors and assigns.

 

15.2         Notwithstanding any other term or condition of this Agreement, but subject to Section 17 (Amendments and Waivers), the consent of any Person who is not a party hereto is not required to rescind or vary this Agreement at any time.

 

16.           ASSIGNMENT

 

16.1         The Performance Undertaking Provider may not assign or transfer any of its obligations under this Agreement without the prior written consent of the Administrative Agent and the Purchaser Agents.

 

16.2         The Performance Undertaking Provider acknowledges that each Secured Party may assign its rights, remedies, powers and privileges under this Agreement to the extent permitted in the Receivables Transfer Agreement.  The Performance Undertaking Provider agrees that the Administrative Agent shall have the right to enforce this

 

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Agreement and to exercise directly all of its rights, remedies, powers and privileges under this Agreement (including the right to give or withhold any consents or approvals to be given or withheld by it under this Agreement) and the Performance Undertaking Provider agrees to cooperate fully with the Administrative Agent in the exercise of such rights, remedies, powers and privileges; provided that each of the Secured Parties shall only enforce or otherwise take action under this Agreement by acting through the Administrative Agent.

 

17.           AMENDMENTS AND WAIVERS

 

No amendment or waiver of any provision of this Agreement and no consent to any departure by the Performance Undertaking Provider from any provision of this Agreement shall be effective unless the same is in writing and signed by the Administrative Agent (with the consent or at the direction of the Required Committed Purchasers) and the Performance Undertaking Provider; provided that no amendment, waiver or consent, unless in writing and signed by the Administrative Agent and each Purchaser Agent shall release the Performance Undertaking Provider from its obligations under this Agreement.  No failure on the part of any Beneficiary to exercise, and no delay in exercising, any power, right or remedy under this Agreement shall operate as a waiver of that power, right or remedy; nor shall any single or partial exercise of any power, right or remedy under this Agreement preclude any other or further exercise of that power, right or remedy or the exercise of any other power, right or remedy.  The rights and remedies herein provided shall be cumulative and non-exclusive of any rights and remedies provided by law.

 

18.           NOTICES

 

All communications and notices provided for under this Agreement shall be provided in the manner and to the addresses set out in Schedule 2 (Address and Notice Information) to the Receivables Transfer Agreement.

 

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19.           GOVERNING LAW, JURISDICTION AND PROCESS

 

19.1         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

19.2         Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of the Supreme Court of the State of New York sitting in the Borough of Manhattan and of the United States District Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement.  Each party hereto hereby irrevocably waives, to the fullest extent that it may legally do so, the defense of an inconvenient forum to the maintenance of such action or proceeding.  Each party hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

19.3         Each of the parties hereto consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to it at its address specified herein.  Nothing in this Section 19.3 shall affect the right of any party to serve legal process in any manner permitted by law.

 

19.4         TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO WAIVES ITS RIGHT TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE.  EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

 

20.           NO PROCEEDINGS; LIMITED RECOURSE

 

(a)           The Performance Undertaking Provider hereby agrees that:

 

(i)            it will not institute against any Conduit Purchaser (or its related commercial paper issuer) any proceeding of the type referred to in the definition of Event of Bankruptcy so long as any Commercial Paper or other senior indebtedness issued by such Conduit Purchaser shall be

 

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outstanding or there shall not have elapsed two years plus one day since the last day on which any such Commercial Paper or other senior indebtedness shall have been outstanding; and

 

(ii)           notwithstanding anything to the contrary contained herein or in any other Transaction Document, the obligations of each Conduit Purchaser under the Transaction Documents are solely the corporate obligations of such Conduit Purchaser and shall be payable only at such time as funds are actually received by, or are available to, such Conduit Purchaser in excess of funds necessary to pay in full all outstanding Commercial Paper issued by such Conduit Purchaser and shall be non-recourse other than with respect to such excess funds and, without limiting Section 20(a)(ii), if ever and until such time as such Conduit Purchaser has sufficient funds to pay such obligation, shall not constitute a claim against such Conduit Purchaser; and

 

(b)           No claim may be made by any party against any other party or their respective Affiliates, directors, officers, employees, attorneys or agents (each a “Default Party”) for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any other Transaction Document, or any act, omission or event occurring in connection herewith or therewith, except with respect to any claim arising out of the willful misconduct or gross negligence of such Default Party; and each party hereto hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 

21.           ENTIRE AGREEMENT; SEVERABILITY

 

(a)           This Agreement constitutes the entire agreement of the parties hereto with respect to the matters set forth herein.

 

(b)           The rights and remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by law or any other agreement.

 

(c)           In any action or proceeding in any jurisdiction, if the obligations of the Performance Undertaking Provider under this Agreement would otherwise be held or determined to be avoidable, invalid or unenforceable on account of the amount of the Performance Undertaking Provider’s liability under this Agreement, then, notwithstanding any other provision of this Agreement to the contrary, the amount of such liability shall, without any further action by the Performance Undertaking Provider or any Beneficiary, be automatically limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding.

 

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(d)           The provisions of this Agreement are severable.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall be ineffective to the extent of such prohibition or unenforceability in that jurisdiction without invalidating or making unenforceable any of the remaining provisions in that jurisdiction or that provision or any other provision in any other jurisdiction.

 

22.           EXECUTION

 

This Agreement may be executed in any number of counterparts, and by different parties on separate counterparts, each of which shall be an original and all of which shall constitute one and the same agreement.  Delivery by facsimile transmission or by electronic file in a format that is accessible by the recipient of a copy of an executed signature page of this Agreement shall operate as delivery of an executed counterpart of this Agreement.

 

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EXECUTION of Performance   Undertaking Provider:
    	
 
    
	
 
    	
 
    
	
BUNGE LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Alberto Weisser
    	
 
    
	
 
    	
Name: Alberto Weisser
    	
 
    
	
 
    	
Title: Chief Executive Officer   and Chairman
    	
 
    

 

Performance and Indemnity Agreement

 

S-4

 

	
Execution of Performance and   Indemnity Agreement:
    	
 
    
	
 
    	
 
    
	
The Administrative Agent:
    	
 
    
	
 
    	
 
    
	
COÖPERATIEVE CENTRALE   RAIFFEISEN-
    	
 
    
	
BOERENLEENBANK B.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ James Han
    	
 
    
	
 
    	
Name: James Han
    	
 
    
	
 
    	
Title: Executive Director
    	
 
    

 

Performance and Indemnity Agreement

 

S-4Exhibit 10.6

 

EXECUTION COPY

 

Dated June 1, 2011

 

(1)                                  BUNGE FINANCE B.V., as Subordinated Lender

 

(2)                                  BUNGE SECURITIZATION B.V., as Seller

 

(3)                                  BUNGE FINANCE B.V., as Master Servicer

 

(4)                                  COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., as Administrative Agent

 

 

SUBORDINATED LOAN AGREEMENT

 

 

 

CONTENTS

 

	
Clause
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Definitions and interpretation
    	
1
    
	
2.
    	
 
    	
The Subordinated Loans
    	
2
    
	
3.
    	
 
    	
Interest, repayment and payments
    	
4
    
	
4.
    	
 
    	
Representations
    	
5
    
	
5.
    	
 
    	
Covenants
    	
6
    
	
6.
    	
 
    	
Events of Default
    	
7
    
	
7.
    	
 
    	
Subordination
    	
8
    
	
8.
    	
 
    	
Miscellaneous
    	
9
    
	
 
    	
 
    	
 
    	
 
    

 

Exhibit

 

	
A.
    	
 
    	
Form of Subordinated Loan Investment   Request
    	
13
    

 

 

THIS SUBORDINATED LOAN AGREEMENT (this “Agreement”) is dated June 1, 2011 and made by and among:

 

(1)                                  BUNGE FINANCE B.V., a private limited liability company organized under the laws of the Netherlands, as Subordinated Lender (the “Subordinated Lender”);

 

(2)                                  BUNGE SECURITIZATION B.V., a private limited liability company organized under the laws of the Netherlands, as Seller (the “Seller”);

 

(3)                                  BUNGE FINANCE B.V., a private limited liability company organized under the laws of the Netherlands, as Master Servicer (the “Master Servicer”); and

 

(4)                                  COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., as Administrative Agent (the “Administrative Agent”).

 

IT IS AGREED that:

 

1.                                       DEFINITIONS AND INTERPRETATION

 

1.1                                 Defined terms

 

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

 

“Article 122a” means Article 122a of Directive 2006/48/EC (as amended by Directive 2009/111/EC) and any corresponding law or rule as in effect in any country in the European Economic Area and applicable to any Purchaser or its holding company.

 

“Event of Default” is defined in Section 6.1 (Events of Default).

 

“Facility Amount” is defined in Section 2.1 (The Subordinated Loans).

 

“Lender Permitted Payments” is defined in Section 7.2 (Lender Permitted Payments).

 

“Lender Subordinated Obligations” means all obligations which may now or hereafter be owing by the Seller or any of its successors or assigns to the Subordinated Lender or any of its successors or assigns.

 

“Receivables Transfer Agreement”  means the Receivables Transfer Agreement dated the date hereof by and among the Seller, the Master Servicer, the Performance Undertaking Provider, the Conduit Purchasers and Committed Purchasers from time to time party thereto, and the Administrative Agent.

 

“Senior Obligations” means all obligations which may now or hereafter be owing by the Seller to the Administrative Agent, the Conduit Purchasers, the Committed Purchasers, the other Secured Parties or the Indemnified Parties under the Receivables Transfer Agreement and the other Transaction Documents.

 

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“Subordinated Loan” means each loan made by the Subordinated Lender to the Seller pursuant hereto.

 

“Subordinated Loan Date” is defined in Section 2.3 (Borrowing procedures).

 

“Subordinated Loan Investment Request” is defined in Section 2.2 (Investment request).

 

1.2                                 Receivables Transfer Agreement

 

Unless otherwise defined herein, capitalized terms which are used herein shall have the meanings assigned to such terms in Section 1.1 (Certain defined terms) of the Receivables Transfer Agreement.  In the case of any inconsistency between such terms and the terms set forth in Section 1.1 of this Agreement, the terms set forth in Section 1.1 of this Agreement shall prevail for all purpose of this Agreement.  The principles of interpretation set forth in Sections 1.2 (Other terms) and 1.3 (Computations of time periods) of the Receivables Transfer Agreement shall apply to this Agreement as if fully set forth herein.

 

2.                                       THE SUBORDINATED LOANS

 

2.1                                 Subordinated Loans

 

The Subordinated Lender hereby grants to the Seller, upon the terms and subject to the conditions hereof, a committed revolving credit facility in an amount equal to (i) the excess of (a) the aggregate Unpaid Balance of the Receivables to be purchased by the Seller pursuant to the Originator Sale Agreements and the Intermediate Transfer Agreements, over (b) the aggregate Cash Purchase Price of the Investments made by the Purchasers to the Seller in respect of such Receivables (it being understood that at the end of each Calculation Period there will be a true-up of Investments under the Receivables Transfer Agreement to determine the permitted amount of Cash Purchase Price for such Calculation Period funded by the Purchasers during such Calculation Period and such true-up may result in the Subordinated Lender making a Subordinated Loan hereunder with respect to the Receivables purchased by the Seller for such Calculation Period) and (ii) on any Settlement Date, an amount necessary to pay amounts payable on such Settlement Date pursuant to Section 2.6(f)(i) through (iii) (Collections prior to Facility Termination Date) or 2.7(b)(i) through (iii) (Collections after Facility Termination Date)(solely for the first Settlement Date on which amounts are distributed pursuant to such Section 2.7 and not to exceed the amount applied to the Purchase Price of Receivables during the related Calculation Period), as applicable, of the Receivables Transfer Agreement (the “Facility Amount”).  Notwithstanding the commitment set forth above, this facility is not intended to provide a guaranty of the Senior Obligations or the collectibility of the Receivables and no Subordinated Loans shall be required to be made by the Subordinated Lender hereunder in excess of the Facility Amount.

 

2.2                                 Investment request

 

The Seller (or the Master Servicer acting on behalf of the Seller) may from time to time request the Subordinated Lender to make a Subordinated Loan to the Seller by delivering (or causing to be delivered) to the Subordinated Lender a Subordinated

 

2

 

Loan Investment Request, substantially in the form of Exhibit A (Form of Subordinated Loan Investment Request) (each, a “Subordinated Loan Investment Request”), no later than the end of the day (London time) on the third Business Day preceding the Subordinated Loan Date for such Subordinated Loan (including the initial Subordinated Loan) or such other time as the Subordinated Lender and the Seller (or the Master Servicer acting on behalf of the Seller) may agree (it being understood and agreed that, if the Seller is unable to defer the Purchase Price for any Receivables to be acquired under an Originator Sale Agreement or Intermediate Transfer Agreement because of a limitation on the amount of permitted Deferred RPA Purchase Price, a Subordinated Loan Investment Request shall be made by the Seller hereunder for a Subordinated Loan Date which is the same day as the delivery of such request).

 

2.3                                 Investment procedures

 

Each such Subordinated Loan Investment Request shall specify (a) the desired date of such Subordinated Loan, which shall be a Business Day (each a “Subordinated Loan Date”); (b) the currency of such Subordinated Loan, which shall be an Approved Currency and, to the extent applicable, shall match the applicable Approved Currency of the Purchase Price of Receivables with respect to which such Subordinated Loan is allocable; (c) the desired amount of such Subordinated Loan (which shall be in a minimum denomination of EUR 50,000 (or the equivalent in the applicable currency)); and (d) all other information specified in Exhibit A (Form of Subordinated Loan Investment Request).  Each Subordinated Loan shall be remitted to the applicable Seller Operating Account or such other account as the Seller (or the Master Servicer acting on behalf of the Seller), with the consent of the Administrative Agent, may specify from time to time on each such Subordinated Loan Investment Request; provided that, following the occurrence of a Facility Event or Portfolio Event, each Subordinated Loan shall be remitted solely to the applicable Seller Operating Account.

 

2.4                                 Use of proceeds

 

The proceeds of the Subordinated Loans made hereunder shall be used by the Seller to pay (i) the Purchase Price of Receivables, and the Related Security and Collections with respect thereto, pursuant to, and in accordance with, any of the applicable Originator Sale Agreements or the Intermediate Transfer Agreements and (ii) the other amounts described in Section 2.19(b) of the Receivables Transfer Agreement.

 

2.5                                 Availability

 

If the Seller (or the Master Servicer acting on behalf of the Seller) requests a Subordinated Loan pursuant to Section 2.2 (Investment request), the Subordinated Lender shall make such Subordinated Loan in accordance with the provisions hereof on the Subordinated Loan Date for such Subordinated Loan, unless on such Subordinated Loan Date:

 

(a)                                  after giving effect to such Subordinated Loan, the aggregate outstanding principal amount of all Subordinated Loans would exceed the Facility Amount;

 

3

 

(b)                                 an Event of Default shall have occurred and be continuing; or

 

(c)                                  an Event of Bankruptcy shall have occurred with respect to the Seller;

 

provided that, in the event that any of the conditions specified in clauses (a) through (c) are not satisfied on any Subordinated Loan Date, the Subordinated Lender may, if it so elects, make such Subordinated Loan to the Seller notwithstanding anything in this Section 2.5  to the contrary.

 

3.                                       INTEREST, REPAYMENT AND PAYMENTS

 

3.1                                 Interest

 

The Seller shall pay interest with respect to each Subordinated Loan on the aggregate outstanding principal amount of such Subordinated Loan from time to time at a variable rate per annum equal to the Eurocurrency Rate for the applicable currency in effect for any corresponding Tranche Period under the Receivables Transfer Agreement plus 4.8% (or at such other rate of interest that the Seller and the Subordinated Lender (with the consent of the Administrative Agent (such consent not to be unreasonably withheld)) agree more accurately reflects a market rate of interest on loans similar to the loans to be made hereunder).  In the event that the Seller and the Subordinated Lender choose to use an interest rate other than the Eurocurrency Rate, the Seller and Subordinated Lender shall document such agreed upon interest rate in the Subordinated Loan Investment Request.  Such interest shall, in accordance with Sections 2.6 (Collections prior to Facility Termination Date) and 2.7 (Collections after Facility Termination Date), as applicable, of the Receivables Transfer Agreement, be paid on each Settlement Date on which the Subordinated Loan is repayable in accordance with Section 3.2 to the extent that the Seller has available funds that are not needed to satisfy Senior Obligations then due and owing.

 

3.2                                 Repayment

 

The Seller shall, in accordance with Sections 2.6 (Collections prior to Facility Termination Date) and 2.7 (Collections after Facility Termination Date), as applicable, of the Receivables Transfer Agreement, repay the outstanding principal amount of the Subordinated Loans (or any portion thereof) from time to time on each Settlement Date to the extent the Seller has funds that are not needed to satisfy Senior Obligations then due and owing or to pay for new Receivables, Related Security and Collections with respect thereto pursuant to, and in accordance with, any applicable Originator Sale Agreement or Intermediate Transfer Agreement; provided that, notwithstanding anything herein to the contrary, the aggregate outstanding principal amount of all of the Subordinated Loans shall in any event be due and payable not later than two years after the Final Payout Date.

 

3.3                                 Payments

 

(a)                                  Subject to clause (c) below, on each date on which this Agreement requires an amount to be paid by the Seller to the Subordinated Lender, such amount shall be paid by wire transfer of same day funds to the account designated by the Subordinated Lender from time to time.

 

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(b)                                 Subject to clause (c) below, on each Subordinated Loan Date, the Subordinated Lender shall remit the aggregate amount of each Subordinated Loan to be made on such Subordinated Loan Date to the Seller by wire transfer of same day funds to the account specified in Clause 2.3 (Borrowing procedures).

 

(c)                                  Notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document, any payments to be made by the Seller in respect of the Subordinated Loans shall be made solely from funds available to the Seller which are not otherwise required to be applied or set-aside for the payment of any higher ranking obligations of the Seller under the Receivables Transfer Agreement or any other Transaction Document, shall be non-recourse other than with respect to such funds and, without limiting Section 8.9(a) (No proceedings; limited recourse), if ever and until such time as the Seller has sufficient funds to make such payment, shall not constitute a claim against the Seller.

 

(d)                                 All payments of principal and interest in respect of any Subordinated Loan shall be made in the same currency as the currency in which such Subordinated Loan is denominated.  All other payments to be made by the Seller hereunder shall be made solely in Dollars or EUR.

 

4.                                       REPRESENTATIONS

 

4.1                                 Seller’s representations

 

The Seller represents and warrants to the Subordinated Lender that on the Closing Date and on each Subordinated Loan Date:

 

(a)                                  it is a limited liability company duly incorporated and validly existing under the laws of its jurisdiction of organization, with power to enter into this Agreement and to exercise its rights and perform its obligations hereunder, and all corporate and other action required to authorize its execution and performance of this Agreement has been duly taken; and

 

(b)                                 it has not taken any corporate action nor have any other steps been taken or legal proceedings been started or (to the best of the Seller’s knowledge) threatened against it for its suspension of payments, bankruptcy, winding-up or dissolution or for any similar proceedings in any jurisdiction.

 

4.2                                 Subordinated Lender’s representation

 

The Subordinated Lender hereby represents and warrants on the date hereof and on each Subordinated Loan Date that:

 

(a)                                  The Subordinated Lender (i) is duly organized and validly existing under the laws of its jurisdiction of organisation, (ii) is duly qualified to do business in every jurisdiction where the nature of its business requires it to be so qualified, unless the failure to be so qualified would not have a Material Adverse Effect and (iii) has all corporate or other organizational power and authority required to perform its obligations under this Agreement and to carry on its business in

 

5

 

each jurisdiction in which its business is now conducted unless the failure to have such power and authority would not have a Material Adverse Effect.

 

(b)                                 The execution, delivery and performance by the Subordinated Lender of this Agreement (i) are within the Subordinated Lender’s corporate powers, (ii) have been duly authorised by all necessary corporate action, and (iii) do not contravene or constitute a default under (A) its Organizational Documents, (B) any applicable Law, (C) any contractual restriction binding on or affecting the Subordinated Lender or its property or (D) any order, writ, judgment, award, injunction or decree binding on or affecting the Subordinated Lender or its property except in each case where any such contravention or default would not have a Material Adverse Effect. This Agreement has been duly executed and delivered by the Subordinated Lender.

 

(c)                                  No authorization, approval, license, consent, qualification or other action by, and no notice to or filing or registration with, any Official Body or official thereof or any third party is required for the due execution, delivery and performance by the Subordinated Lender of this Agreement, except for the actions duly made or taken, as the case may be, and in full force and effect, except where the failure to have obtained any such authorization or approval or taken any such action or made any such filing, notice or registration would not have a Material Adverse Effect.

 

(d)                                 This Agreement constitutes the legal, valid and binding obligation of the Subordinated Lender, enforceable against the Subordinated Lender in accordance with its terms, subject to any limitation on the enforceability thereof against the Subordinated Lender arising from the application of any applicable Insolvency Law or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or law).

 

(e)                                  There are no actions, suits, investigations, litigation or proceedings at law or in equity or by or before any Official Body or in arbitration now pending against or affecting the Subordinated Lender (i) which question the validity of this Agreement or any of the transactions contemplated hereby, or (ii) which individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. The Subordinated Lender is not in default or violation of any order, judgement or decree of any Official Body or arbitrator which could reasonably be expected to have a Material Adverse Effect.

 

(f)                                    The Subordinated Lender is and will be tax resident in the Netherlands.

 

5.                                       COVENANTS

 

5.1                                 Seller’s covenants

 

At all times from the date hereof to the Final Payout Date, unless the Subordinated Lender shall otherwise consent in writing:

 

(a)                                  the Seller shall obtain, comply with the terms of and do all that is necessary to maintain in full force and effect all authorizations, approvals, licenses and consents required to enable it lawfully to enter into and perform its obligations

 

6

 

under this Agreement or to ensure the legality, validity, enforceability or admissibility in evidence of this Agreement;

 

(b)                                 the Seller shall promptly notify the Subordinated Lender, the Master Servicer and the Administrative Agent of the occurrence of any Event of Default hereunder;

 

(c)                                  the Seller shall not engage in any business other than the transactions contemplated by the Transaction Documents and activities reasonably incidental thereto; and

 

(d)                                 the Seller shall apply and otherwise use the proceeds of each Subordinated Loan in accordance with Section 2.4 (Use of proceeds).

 

5.2                                 Subordinated Lender’s covenants

 

The Subordinated Lender shall (i) retain at least a 5% net economic interest within the meaning of and in accordance with paragraph 1 of Article 122a through the retention of at least one half of the Subordinated Loans made hereunder (and not entering into any credit risk mitigation or credit risk hedge of such net economic interest) and (ii) make available such additional information, if any, reasonably available to the Subordinated Lender, as the Purchasers may reasonably require in order to assist any such Purchaser and, as appropriate, Persons providing facilities to any such Purchasers in relation to the transactions contemplated by the Transaction Documents in complying with the requirements of Article 122a applicable to such Persons in connection with any investment in or assumption of credit exposure in connection with the transactions contemplated by the Transaction Documents.

 

6.                                       EVENTS OF DEFAULT

 

6.1                                 Events of Default

 

Each of the following shall constitute an “Event of Default”:

 

(a)                                  the Seller fails, and such failure remains unremedied for three Business Days after the due date for payment, to pay any amount payable by it under this Agreement in circumstances where it has sufficient funds available to make that payment which are not otherwise required to be applied or set-aside for the payment of any Senior Obligations of the Seller under the Receivables Transfer Agreement or any other Transaction Document;

 

(b)                                 any representation or statement made by the Seller in this Agreement is or proves to have been incorrect or misleading in any material respect when made and such failure continues for 60 days after notice thereof has been provided to the Seller and the Administrative Agent by the Subordinated Lender;

 

(c)                                  the Seller fails duly to perform or comply with any of the material obligations expressed to be assumed by it in Section 5.1 (Covenants) and such failure continues for 60 days after notice thereof has been provided to the Seller and the Administrative Agent by the Subordinated Lender; or

 

7

 

(d)                                 an Event of Bankruptcy shall occur with respect to the Seller.

 

6.2                                 Remedies

 

Upon the occurrence of any Event of Default under Section 6.1(d) (Events of Default), the Subordinated Loans shall become immediately due and payable together with accrued interest thereon, and the Subordinated Lender’s commitment to make further Subordinated Loans pursuant hereto shall forthwith be cancelled.  Upon the occurrence of any other Event of Default, the Subordinated Lender may by written notice to the Seller (with a copy to the Administrative Agent and the Master Servicer) declare the Subordinated Loans to be immediately due and payable together with accrued interest thereon, and the Subordinated Lender’s commitment to make further Subordinated Loans pursuant hereto shall forthwith be cancelled.

 

7.                                       SUBORDINATION

 

7.1                                 Subordination

 

The payment and performance of the Lender Subordinated Obligations is hereby subordinated to the Senior Obligations and, except as set forth in this Section 7, the Subordinated Lender will not ask, demand, sue for, take or receive from the Seller, by setoff or in any other manner, the whole or any part of any Lender Subordinated Obligations, unless and until the Senior Obligations shall have been fully paid and satisfied (the temporary reduction of outstanding Senior Obligations not being deemed to constitute full payment or satisfaction thereof).

 

7.2                                 Lender Permitted Payments

 

Notwithstanding Section 7.1 (Subordination) and subject to Sections 7.3 (No exercise of remedies) and 7.5 (Claims, etc.), the Seller may repay any Subordinated Loan made hereunder together with any interest accrued thereon, from funds available therefor in accordance with Sections 2.6 (Collections prior to Facility Termination Date) and 2.7 (Collections after Facility Termination Date), as applicable, of the Receivables Transfer Agreement (all such payments being herein called “Lender Permitted Payments”).  To the extent the Seller has funds available that are not needed to satisfy Senior Obligations then due and payable, the Seller will, to the extent that it elects to, make any Lender Permitted Payment (i) first, for the payment or provision of payment when due of accrued interest pursuant to, and in accordance with, Section 3.1 (Interest), and (ii) second, to the payment of the outstanding principal amount of the Subordinated Loans.

 

7.3                                 No exercise of remedies

 

Prior to payment in full of the Senior Obligations, the Subordinated Lender shall not have any right to sue for, nor otherwise exercise any remedies with respect to, any Lender Permitted Payment, nor otherwise take any action against the Seller nor the Seller’s property with respect to any Lender Permitted Payment, except as provided for in Section 6.2 (Remedies).  Prior to payment in full of the Senior Obligations, the Subordinated Lender hereby irrevocably waives any right to exercise any right of set-off and counterclaim, or any other right that it may have at law or otherwise to exercise such right of set-off in order to appropriate and apply to the Lender

 

8

 

Subordinated Obligations any balances, credits, deposits, accounts or monies of the Seller, including, without limitation, amounts on deposit in any account of the Seller.

 

7.4           Turnover

 

Should any payment or distribution be received by the Subordinated Lender upon or with respect to the Lender Subordinated Obligations (other than Lender Permitted Payments) prior to the satisfaction of all of the Senior Obligations, the Subordinated Lender shall receive and hold the same in trust, as trustee, for the benefit of the holders of the Senior Obligations, and shall forthwith deliver the same directly to the Administrative Agent (in the form received, except where endorsement or assignment by the Subordinated Lender is necessary), for application to the Senior Obligations, whether or not then due.

 

7.5           Claims, etc.

 

In the event of any Event of Bankruptcy with respect to the Seller (a) the Subordinated Lender shall promptly file a claim or claims, in the form required in such Event of Bankruptcy, for the full outstanding amount of the Lender Subordinated Obligations, and shall use commercially reasonable efforts to cause such claim or claims to be approved and all payments or other distributions in respect thereof to be made directly to the Administrative Agent (for the benefit of the holders of Senior Obligations) until all Senior Obligations shall have been paid and performed in full and in cash; and (b) the Subordinated Lender shall not be subrogated to the rights of any such holder to receive payments or distributions from the Seller until two years and one day after the payment in full and in cash of all Senior Obligations.

 

7.6           Reinstatement

 

If at any time any payment (in whole or in part) made with respect to any Senior Obligation is rescinded or must be restored or returned (whether in connection with any Event of Bankruptcy or otherwise), the subordination provisions contained in this Section 7 shall continue to be effective or shall be reinstated, as the case may be, as though such payment had not been made.

 

7.7           Continuing obligations

 

The subordination provisions contained in this Section 7 shall not be impaired by amendment or modification to the Transaction Documents or any lack of diligence in the enforcement, collection or protection of, or realization on, the Senior Obligations or any security therefor.

 

8.             MISCELLANEOUS

 

8.1           Term of Agreement

 

This Agreement shall not be terminated prior to the payment in full and in cash of all Senior Obligations but shall terminate no later than two years and one day thereafter; provided that (a) the rights and remedies of the Administrative Agent and the other Secured Parties with respect to any representation and warranty made or deemed to be

 

9

 

made by the Subordinated Lender pursuant to this Agreement and (b) the agreements set forth in Section 7 (Subordination) and Sections 8.4 and 8.9 shall be continuing and shall survive any termination of this Agreement.

 

8.2           Waivers; amendments

 

(a)           No failure or delay on the part of any party hereto in exercising any power, right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other further exercise thereof or the exercise of any other power, right or remedy.  The rights and remedies herein provided shall be cumulative and nonexclusive of any rights or remedies provided by law.

 

(b)           Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Seller, the Master Servicer, the Subordinated Lender and the Administrative Agent.

 

8.3           Notices

 

All communications and notices provided for hereunder shall be provided in the manner described in Schedule 2 (Address and Notice Information) to the Receivables Transfer Agreement.

 

8.4           Governing law, jurisdiction and process

 

(a)           THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

(b)           Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of the Supreme Court of the State of New York sitting in the Borough of Manhattan and of the United States District Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement.  Each party hereto hereby irrevocably waives, to the fullest extent that it may legally do so, the defense of an inconvenient forum to the maintenance of such action or proceeding.  Each party hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

(c)           Each of the parties hereto consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to it at its address specified herein.  Nothing in this Section 8.4 shall affect the right of any party to serve legal process in any manner permitted by law.

 

(d)           TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO WAIVES ITS RIGHT TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY

 

10

 

ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE.  EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

 

8.5           Integration

 

This Agreement contains the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire Agreement among the parties hereto with respect to the subject matter hereof superseding all prior oral or written understandings.

 

8.6           Severability and partial invalidity

 

(a)           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 in any other situation or in any other jurisdiction.

 

(b)           If a court of competent jurisdiction determines that any term or provision of this Agreement as written is invalid or unenforceable, the parties agree that the court making the determination of invalidity or unenforceability shall reduce the scope, duration, or area of the term or provision, delete specific words or phrases, or replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the court’s judgment may be appealed.

 

8.7           Counterparts; facsimile delivery

 

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Agreement. Delivery by facsimile or by electronic file in a format that is accessible by the recipient, in either case, of an executed signature page of this Agreement shall be effective as delivery of an executed counterpart hereof.

 

11

 

8.8           Successors and assigns; binding effect

 

(a)           Without prejudice to Section 5.2 (Subordinated Lender’s Covenants), this Agreement shall be binding on the parties hereto and their respective successors and assigns, provided that the Subordinated Lender may not assign any of its rights nor delegate any of its duties hereunder without the prior written consent of the Administrative Agent (not to be unreasonably withheld) and furthermore provided that, in case the Subordinated Lender assigns any of its rights in relation to a Subordinated Loan, the minimum amount transferred in relation to a Subordinated Loan shall be at least EUR 50,000 (or the equivalent in any other currencies) or, if it is less, the party accepting the transfer of an amount of a Subordinated Loan shall confirm in writing to the Seller that it is a professional market party within the meaning of the Act on the Financial Supervision (Wet op het financieel toezicht).

 

(b)           The Seller may assign its rights hereunder only to the Administrative Agent pursuant to the Transaction Documents.

 

8.9           No proceedings; limited recourse

 

Each of the parties hereto hereby agrees that:

 

(a)           it will not institute against any Conduit Purchaser (or its related commercial paper issuer) any proceeding of the type referred to in the definition of Event of Bankruptcy so long as any Commercial Paper or other senior indebtedness issued by such Conduit Purchaser shall be outstanding or there shall not have elapsed two years plus one day since the last day on which any such Commercial Paper or other senior indebtedness issued by such Conduit Purchaser (or its related commercial paper issuer) shall have been outstanding; and

 

(b)           notwithstanding anything to the contrary contained herein or in any other Transaction Document, the obligations of each Conduit Purchaser under the Transaction Documents are solely the corporate obligations of such Conduit Purchaser and shall be payable only at such time as funds are actually received by, or are available to, such Conduit Purchaser in excess of funds necessary to pay in full all outstanding Commercial Paper issued by such Conduit Purchaser and shall be non-recourse other than with respect to such excess funds and, without limiting Section 8.9(a), if ever and until such time as such Conduit Purchaser has sufficient funds to pay such obligation, shall not constitute a claim against such Conduit Purchaser.

 

12

 

EXHIBIT A
 FORM OF SUBORDINATED LOAN INVESTMENT REQUEST

 

BUNGE SECURITIZATION B.V. (the “Seller”), pursuant to Section 2.2 (Investment Request) of the Subordinated Loan Agreement, dated May      , 2011 (the “Agreement”), among the Seller, BUNGE FINANCE B.V., as Subordinated Lender, BUNGE FINANCE B.V., as Master Servicer, and COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., as Administrative Agent, hereby requests that the Subordinated Lender make one or more Subordinated Loan(s) as set forth below.  Capitalized terms used herein and not otherwise defined herein have the meaning assigned to them in the Agreement.

 

The Subordinated Loan Date of the Subordinated Loan(s) will be:                .

 

The currency(ies) of the Subordinated Loan(s) will be:                     .

 

The amount of [each/the] Subordinated Loan(s) will be:                   .*

 

The account into which the Subordinated Loan(s) will be paid:  [insert account details].

 

The Seller hereby certifies that the Subordinated Loan(s) will be used to pay the purchase price of Receivables in accordance with the Transaction Documents or otherwise in accordance with Section 2.4 (Use of proceeds) of the Agreement.

 

The Seller hereby certifies as of the date hereof that the conditions precedent to such Subordinated Loan(s) set forth in the Agreement have been satisfied, and that all of the representations and warranties made in Section 4 (Representations) of the Agreement are true and correct on and as of the Subordinated Loan Date, both before and after giving effect to such Subordinated Loan.

 

	
Dated:
    	
 
    
	
 
    	
 
    
	
BUNGE   SECURITIZATION B.V.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

**  Minimum of EUR 50,000 or the equivalent thereof in the applicable currency.

 

1

 

	
EXECUTION of Subordinated Loan   Agreement:
    	
 
    
	
 
    	
 
    
	
The Subordinated Lender
    	
 
    
	
 
    	
 
    
	
BUNGE FINANCE B.V.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Steven Claassens
    	
 
    
	
 
    	
Name:   
    	
Steven   Claassens
    	
 
    
	
 
    	
Title:   
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Luc Dekkers
    	
 
    
	
 
    	
Name:   
    	
Luc   Dekkers
    	
 
    
	
 
    	
Title:   
    	
Director
    	
 
    

 

Subordinated Loan Agreement

 

S-1

 

	
  The Seller
    	
 
    
	
 
    	
 
    
	
  BUNGE   SECURITIZATION B.V.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Frans M.J. van Rijn
    	
 
    
	
 
    	
Name:   
    	
Frans   M.J. van Rijn
    	
 
    
	
 
    	
Title:   
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   L.F.S. Bagchus
    	
 
    
	
 
    	
Name:   
    	
L.F.S.   Bagchus
    	
 
    
	
 
    	
Title:   
    	
Proxy   Holder
    	
 
    

 

Subordinated Loan Agreement

 

S-2

 

	
The Master Servicer
    	
 
    
	
 
    	
 
    
	
BUNGE FINANCE B.V.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Steven Claassens
    	
 
    
	
 
    	
Name:   
    	
Steven   Claassens
    	
 
    
	
 
    	
Title:   
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Luc Dekkers
    	
 
    
	
 
    	
Name:   
    	
Luc   Dekkers
    	
 
    
	
 
    	
Title:   
    	
Director
    	
 
    

 

Subordinated Loan Agreement

 

S-3

 

	
The Administrative Agent
    	
 
    
	
 
    	
 
    
	
COÖPERATIEVE CENTRALE   RAIFFEISEN-BOERENLEENBANK B.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   James Han
    	
 
    
	
 
    	
Name:   
    	
James   Han
    	
 
    
	
 
    	
Title:   
    	
Executive   Director
    	
 
    

 

Subordinated Loan Agreement

 

S-4

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