Document:

CHAUCER PENSION SCHEME AS AMENDED

 Exhibit 10.3 
 

 
 Dated 10 NOVEMBER 2008 
  

 
 Rules of the Chaucer Pension Scheme 

 
  
 Constitutional Rules 

 CONTENTS 

 

							
	C Rule	 	 	  	Page	 
			
	1	 	 MEANING OF DEFINED TERMS
	  	 	3	  
	2	 	 REGISTERED AND CONTRACTED-OUT PENSION SCHEME
	  	 	4	  
	3	 	 TRUSTEE
	  	 	5	  
		 	 3.1        Appointment and removal
	  	 	5	  
		 	 3.2        Pay
	  	 	5	  
		 	 3.3        Liability
	  	 	5	  
		 	 3.4        Indemnity
	  	 	6	  
		 	 3.5        Insurance
	  	 	7	  
		 	 3.6        Administration of the Scheme
	  	 	8	  
		 	 3.7        Quorum
	  	 	9	  
		 	 3.8        Delegation
	  	 	9	  
		 	 3.9        Disputes
	  	 	9	  
		 	 3.10      Advisers
	  	 	9	  
		 	 3.11      Arrangements for receipts and payments
	  	 	10	  
		 	 3.12      Litigation
	  	 	10	  
		 	 3.13      Conflicts of Interest
	  	 	10	  
	4	 	 FUNDING AND ACCOUNTS
	  	 	12	  
		 	 4.1        Valuations and surplus
	  	 	12	  
		 	 4.2        Fund deficiency
	  	 	13	  
		 	 4.3        Audit accounts
	  	 	13	  
	5	 	 SCHEME EXPENSES
	  	 	14	  
		 	 5.1        Fund to pay expenses of the Scheme
	  	 	14	  
		 	 5.2        Principal Employer paying expenses of the Scheme
	  	 	14	  
		 	 5.3        Members’ AVC Accounts
	  	 	14	  
	6	 	 SCHEME ASSETS
	  	 	15	  
		 	 6.1        Assets held on trust
	  	 	15	  
		 	 6.2        Investment of Scheme assets
	  	 	15	  
		 	 6.3        Fund manager
	  	 	16	  
	7	 	 PARTICIPATING EMPLOYERS
	  	 	17	  
		 	 7.1        Process for starting to participate
	  	 	17	  
		 	 7.2        Ceasing to participate
	  	 	17	  
		 	 7.3        Consequences of leaving the Scheme
	  	 	17	  
	8	 	 CHANGE OF PRINCIPAL EMPLOYER
	  	 	19	  
	9	 	 TRUSTEES’ DISCRETION TO MAKE UNAUTHORISED PAYMENTS
	  	 	20	  
	10	 	 DISCRETIONARY BENEFITS AND FLEXIBLE RETIREMENT
	  	 	21	  
		 	 10.1      Discretionary benefits
	  	 	21	  
		 	 10.2      Flexible retirement
	  	 	21	  
	11	 	 PENSION SHARING
	  	 	23	  
		 	 11.1      Effect of pension sharing orders
	  	 	23	  
		 	 11.2      Benefits for a former Spouse under the Scheme
	  	 	23	  
	12	 	 ASSIGNMENT AND REDUCTION OF BENEFITS
	  	 	24	  
		 	 12.1      General prohibition
	  	 	24	  

							
		 	 12.2      Power to withhold a benefit
	  	 	24	  
		 	 12.4      Debts owed to a Employer
	  	 	25	  
		 	 12.5      Unclaimed benefits
	  	 	25	  
	13	 	 TERMINATION OF THE SCHEME
	  	 	26	  
		 	 13.1      Partial termination of the Scheme
	  	 	26	  
		 	 13.2      Power to terminate the Scheme
	  	 	29	  
	14	 	 WINDING-UP
	  	 	31	  
		 	 14.1      Power to wind-up the Scheme
	  	 	31	  
		 	 14.2      Effect of winding up on the provisions of the Scheme
	  	 	31	  
		 	 14.3      Notice of winding-up to Members
	  	 	31	  
		 	 14.4      Use of Scheme assets
	  	 	31	  
		 	 14.5      Expenses
	  	 	31	  
		 	 14.6      Securing benefits with an Insurance Company
	  	 	32	  
		 	 14.7      Transfers to other schemes
	  	 	32	  
		 	 14.8      Winding-up lump sums
	  	 	32	  
		 	 14.9      Surplus assets
	  	 	33	  
		 	 14.10    Funding deficit
	  	 	33	  
		 	 14.11    Trustees Indemnity
	  	 	33	  
		 	 14.12    Alternative to winding-up
	  	 	33	  
	15	 	 AMENDMENT
	  	 	36	  
	16	 	 LAWS
	  	 	37	  

 THESE RULES are made as a deed on 10 NOVEMBER 2008 

BY 
  

	(1)	CHAUCER SYNDICATES LIMITED (registered number 184915) whose registered office is at Plantation Place, 30 Fenchurch Street, London, EC3M 3AD (the
“Principal Employer”); and 

  

	(2)	EWEN HAMILTON GILMOUR of
                                        ,
EDWARD NELSON NOBLE of                                
                                         
                                         
              , STEPHEN ANDREW SMITH of
                                     and BRIDGE TRUSTEES
LIMITED (registered number 02600168) whose registered office is at 115 Colmore Row, Birmingham, West Midlands B3 3AL (the “Trustees”). 

 BACKGROUND 
  

	(A)	The Principal Employer is the principal employer in relation to the Chaucer Pension Scheme (the “Scheme”). The Trustees are the current trustees of the
Scheme, and are the scheme administrators for the purposes of the Finance Act 2004. The Scheme is governed by a Supplemental Trust Deed and Rules dated 25th October 2002 (as amended), and is divided into two sections, the final salary section
and the money purchase section. 

  

	(B)	By Rule 44 of the Supplemental Trust Deed and Rules the Principal Employer may with the consent of the Trustees at any time, by supplemental deed, amend, replace or add
to all or any of the provisions of the Trust Deed and Rules, subject to the other provisions of Rule 44. 

 ADOPTION OF RULES

  

	(A)	The Principal Employer and the Trustees amend the Supplemental Trust Deed and Rules with effect from the date of this Deed in accordance with Rule 44 by replacing it
with these rules (the “Rules”). The Rules are divided into three sections: 

  

	 	•	the Constitutional Rules (the “C Rules”), which apply to all Members; 

 

	 	•	the Final Salary Section Rules (the “FS Rules”), which set out the benefits payable in respect of Final Salary Section Members; and

  

	 	•	the Money Purchase Section Rules (the “MP Rules”), which set out the benefits payable in respect of Money Purchase Section Members.

  
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	(B)	These Rules include a box at the start of each Rule which outlines its key provisions. These are included for information only. 

  
 2 

 THE CONSTITUTIONAL RULES 

These C Rules set out the Rules common to all sections of the Scheme. They should be read together with the Rules for each section of the
Scheme. 
  

	1.	Meaning of defined terms 

Words with a capital first letter are defined in the first Rule of each of the FS Rules and MP Rules. 

  
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	2.	Registered and contracted-out pension scheme 

 This C Rule confirms that the Scheme is a contracted-out, registered pension scheme, and so is subject to various statutory requirements which override the provisions of these Rules. 

The Scheme is a registered pension scheme for the purposes of section 150(2) of the Finance Act 2004. 

The Scheme is contracted-out on a Reference Scheme basis and in relation to the Money Purchase Section is contracted-in. The Trustees must
operate the Scheme in compliance with the Contracting-out Laws. These Rules are deemed to incorporate any provision that must be incorporated for the Scheme to be treated as contracted-out in relation to a Member’s Service. 

  
 4 

	3.	Trustees 

 This Rule sets
out the powers relating to the appointment and liability of the Trustees, and certain administrative matters relating to them. 
  

	3.1	Appointment and removal 

  

	 	3.1.1  	The Principal Employer may at any time by deed appoint and remove trustees. Any such appointment or removal must comply with the requirements of sections 241 to 243 of
the Pensions Act 2004 (member-nominated trustees and directors). The number of trustees shall not be less than three unless a body corporate is appointed to act as sole trustee. 

 

	 	3.1.2  	A trustee may by deed validly retire provided that one trustee remains. 

  

	 	3.1.3  	A trustee may resign by giving not less than one month’s notice in writing to the Principal Employer. 

 

	3.2	Pay 

  

	 	3.2.1  	Any trustee (or officer of a corporate Trustee) may be paid any fees and expenses for his or her services which the trustee agrees with the Principal Employer. These
fees and expenses will be treated as a Scheme expense under C Rule 5 (Scheme expenses). 

  

	 	3.2.2  	Any Trustee who is a solicitor, accountant or other person engaged in any profession or business may charge and be paid all usual professional and other reasonable
charges for work done by him or his firm in connection with the Scheme, whether or not in the ordinary course of his profession or business and including acts which a Trustee, who is not in any profession or business, could have done personally.

  

	 	3.2.3  	With the consent of the Principal Employer, any Trustee, any firm of which a Trustee is a partner and any subsidiary or associated company of a Trustee or on which he
is interested as an officer or shareholder) may retain beneficially any brokerage, commission, fee, interest or other advantage derived from monies forming part of the Fund held in his, her or its name with bankers, or remuneration payable directly
or directly to him, her or it. 

  

	3.3	Liability 

  

	 	3.3.1  	Subject to section 33 of the Pensions Act 1995 (investment powers: duty of care), a trustee (or officer of a corporate trustee) will only be liable for the consequences
of any act or omission of the Trustees or their delegates or advisers if the liability is incurred as a result of his or her own willful wrongdoing (and his or her negligence if so agreed between the trustee and the Principal Employer).

  
 5 

	 	3.3.2  	No Trustee shall be responsible, chargeable or liable in any manner whatsoever for or in respect of: 

 

	 	3.3.2.1  	any loss of, or any depreciation in or default upon, any of the investments, securities, stocks or policies in which the Fund (or any part of it) may at any time be
invested in accordance with the provisions of the Rules; 

  

	 	3.3.2.2  	any delay which may occur (from whatever cause) in the investment of any monies belonging to the Fund; 

 

	 	3.3.2.3  	the safety of any securities or documents of title deposited by the Trustees for safe custody; or 

 

	 	3.3.2.4  	the exercise of any discretionary power conferred on the Trustees by this Trust Deed and Rules (including any act or omission by any agent, staff or delegate appointed
by the Trustees). 

  

	 	3.3.3  	In the case of a Professional Trustee, liability for such acts of negligence as breach the special duty of care of a Professional Trustee up to the extent of the loss
in the assets of the Fund caused by the breach on the part of that Professional Trustee. 

  

	 	3.3.4  	No Professional Trustee shall incur liability: 

  

	 	3.3.4.1  	for the acts, defaults and omissions of other Trustees whose acts, defaults or omissions have been contrary to oral or written advice given by or on behalf of that
Professional Trustee; and 

  

	 	3.3.4.2  	in respect of action taken by the other Trustees when that Professional Trustee was not a party to the decision, unless proper notice under the terms of the Scheme of
either the meeting at which those decision were taken or of the resolutions which effected those decisions had been given to the Professional Trustee. 

  

	3.4	Indemnity 

  

	 	3.4.1  	 The Principal Employer will indemnify and keep indemnified each trustee and former trustee (or officer or former officer of a corporate trustee)
against any liability and expense incurred by him or her as a 

  
 6 

	 	
trustee at all times against any actions, proceedings, claims and demands, and all costs, damages and expenses arising therefrom incurred by or claimed from the Trustees in relation to the Scheme
except in the circumstances referred to in C Rule sub-rule 3.4.3 and in the case of willful wrongdoing on the part of a trustee. This indemnity shall also apply to any liability of the Trustees arising from any act or default of any employee,
manager, custodian, agent or adviser under the Rules of the Scheme. 

  

	 	3.4.2  	If the Principal Employer fails to indemnify any such person within a reasonable period set from time to time by the Trustees, they will be indemnified from the
Scheme’s assets instead. 

  

	 	3.4.3  	This indemnity does not apply to: 

  

	 	3.4.3.1  	any liability incurred as a result of willful wrongdoing on the part of a trustee, or covered and met by insurance either under C Rule 3.5 (Insurance) or a
separate insurance arrangement; 

  

	 	3.4.3.2  	in the case of a Professional Trustee, any liability for such acts of negligence as breach the special duty of care of a Professional Trustee up to the extent of the
loss in the assets of the Fund caused by the breach on the part of that Professional Trustee; 

  

	 	3.4.3.3  	any liability to pay a fine imposed in criminal proceedings, or a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any
requirement of a regulatory nature; or 

  

	 	3.4.3.4  	any liability incurred in defending criminal proceedings in which a trustee is convicted. 

 

	3.5	Insurance 

 The Trustees
(and officers of a corporate Trustee) may take out indemnity insurance to cover any liability which they may incur under the Scheme (unless incurred as a result of willful wrongdoing). The Trustees may, with the consent of the Principal Employer,
pay for this from the Scheme’s assets except if the insurance covers fines or penalties of a kind mentioned in section 256 of the Pensions Act 2004. Such payments will be paid in accordance with C Rule 5 (Scheme expenses). 

  
 7 

	3.6	Administration of the Scheme 

  

	 	3.6.1  	The Trustees are granted all the powers, rights and privileges that are necessary in order to administer the Scheme. The Trustees will administer the Scheme on terms
which they decide are appropriate, subject to the Rules of the Scheme and any legislation which applies to them. 

  

	 	3.6.2  	Except where otherwise specified, the Trustees shall determine all questions and matters of doubt arising in connection with the Scheme, and, if deemed necessary in a
particular case, shall do so after consulting the Principal Employer. 

  

	 	3.6.3	  The Trustees shall have power to give any undertakings as may be necessary to HMRC or to the Pensions Regulator. 

 

	 	3.6.4  	The Trustees shall not be under any obligation to any person transacting business with them in relation to the Scheme to disclose how any funds in their hands are
applied. The receipt of the Trustees shall be a complete and sufficient discharge to any person paying money to the Trustees. 

  

	 	3.6.5  	The Trustees, with the consent of the Principal Employer, shall have power to borrow money from time to time from any lender on any terms and conditions and to secure
repayment and the payment of interest upon the whole or any part of the Fund. The Trustees shall apply the moneys borrowed in any manner for the purposes of the Scheme which, in their absolute discretion, they may think fit.

  

	 	3.6.6  	The Trustees shall have power to accept any donations or bequests and any cash or other assets and apply them for any purposes of the Scheme as the Trustees think fit
and subject to the Scheme’s status as a registered scheme not being prejudiced. 

  

	 	3.6.7  	The Trustees shall have power to insure any assets of the Fund against any risks and for any amounts as they think fit. 

 

	 	3.6.8  	The Trustees shall keep proper accounts relating to the Fund and a record of Members and all other persons receiving benefits or prospectively entitled to benefits and
of all other matters which should be properly recorded for the purposes of the Scheme. These records shall be sufficient to explain all transactions and identify all assets and liabilities relating to the Scheme and to disclose the financial
position of it. Accounts shall be made up to the day before the Renewal Date each year (or such other date as the Trustees may prescribe in writing from time to time) and the twelve months ending on that date shall be the Scheme year.

  
 8 

	 	3.6.9  	The Trustees may make any arrangements generally for the administration of their duties as they think fit. In particular the Trustees may by majority decision employ
any staff (including a secretary) as they may think fit to transact any business of the Scheme. 

  

	3.7	Quorum 

 The quorum for
any meeting of the Trustees will be three of the Trustees or such other number as the Trustees may from time to time decide will form a quorum. 
  

	3.8	Delegation 

 The Trustees
may delegate by unanimous decision, or authorise the sub-delegation of, any of their powers (other than their powers of investment), duties and discretions to any one or more of the Trustees or, with the consent of the Principal Employer, to any
person or corporation appointed or employed by the Trustees in connection with the Scheme. The Trustees may impose any conditions on, and may at any time by majority decision (other than the delegate) revoke, any delegation made under this C Rule
3.8 (Delegation) person and on any terms which they decide are appropriate. The Trustees may not delegate their powers of investment except in the circumstances detailed in C Rule 6.3 (Fund manager). 

 

	3.9	Disputes 

 The Trustees
will make arrangements for the resolution of disagreements in relation to the Scheme. 
  

	3.10	Advisers 

  

	 	3.10.1  	The Trustees may seek advice from professional advisers on terms which the Trustees agree with those advisers, subject to C Rule 3.8 (Delegation) and section 47
of the Pensions Act 1995 (professional advisers). 

  

	 	3.10.2  	The fees of any adviser will be treated as a Scheme expense under C Rule 5 (Scheme expenses). 

 

	 	3.10.3  	The Trustees shall not be chargeable or accountable in respect of any calculation, determination, payment or other matter or anything made, done or omitted by the
Trustees in the administration of the Scheme upon the advice of the person so appointed or consulted. 

  
 9 

	3.11	Arrangements for receipts and payments 

  

	 	3.11.1  	The Trustees may make all necessary arrangements for dealing with receipts and payments under the Scheme. 

 

	 	3.11.2  	The Trustees may, from time to time by unanimous decision, delegate in writing their powers to draw cheques on any bank account, or endorse any cheques, to any one or
more of their number or to any staff agents, custodian, brokers or other nominees as they shall decide. 

  

	 	3.11.3  	The Trustees may give, vary and revoke instructions relating to the custody and disposal of any part of the Fund, to the signing of proposal forms and certificates of
membership and to the giving of receipts and discharges in connection with the Scheme on the Trustees’ behalf. Every such receipt and discharge shall be as valid as if it were given by all the Trustees. 

 

	 	3.11.4  	The production of a written authority of the Trustees shall be sufficient protection to any person taking receipts and discharges or otherwise acting under that
authority. Unless a person has received written notice of the revocation of that authority, he shall be entitled to act on the assumption that it remains in force and to be indemnified out of the Fund in respect of any claim arising out of any act
committed in good faith and in respect of all costs, charges and expenses incurred in connection with it, despite any intervening change in the Trustees. 

  

	 	3.11.5  	Any valid receipt given to an agent, custodian, broker or nominee shall be a good and sufficient discharge to the Trustees. 

 

	3.12	Litigation 

 The Trustees
may conduct legal proceedings without the need for a Beddoe order from a Court. The Trustees may only conduct such legal proceedings upon the advice received from a duly appointed advisor. The Trustees will be reimbursed from the Scheme for costs
which they incur as a result of legal proceedings undertaken in connection with the Scheme and this will extend to both costs they incur and any costs ordered against them. 

 

	3.13	Conflicts of Interest 

 A
Trustee who is an employee or an officer of the Company or of any associated company of the Company who: 
 3.13.1  
possesses confidential or sensitive information as a result of his or her position as an employee or officer, and 

  
 10 

	 	3.13.2  	would, but for this C Rule 3.13 (Conflicts of interest), be required to disclose that information to the Trustees as a result of his or her trustee duties,

 is not required to disclose that information at any Trustee meeting at which that information is or may be
relevant. The Trustee with this information will declare that he or she has confidential information and play no part in any discussions of the matters to which it relates. 

  
 11 

	4.	Funding and accounts 

This Rule sets out the Trustees’ key duties in relation to funding valuations and reports and audited accounts. 

 

	4.1	Valuations and surplus 

  

	 	4.1.1  	The Trustees will appoint an actuary to the Scheme and will ensure that an actuarial valuation of the Scheme is carried out at least once every three years, and (to the
extent required by the Pensions Act 2004) that an actuarial report of the Scheme is carried out for any year in which a valuation is not carried out. The Trustees will ensure that any such valuations and reports comply with the requirements of
section 224 of the Pensions Act 2004 (actuarial valuations and reports). 

  

	 	4.1.2  	If a valuation discloses that the value of the Final Salary Section of the Scheme’s assets exceeds the value of its liabilities, the Principal Employer may reduce
or eliminate that surplus in one or more of the following ways: 

  

	 	4.1.2.1  	by agreeing with the Trustees to: 

  

	 	(a)	suspend the obligations of Employers or Members to pay contributions to either the Final Salary Section or the Money Purchase Section of the Scheme or both; or

  

	 	(b)	reduce the amount of contributions to the Final Salary Section or the Money Purchase Section of the Scheme or both by Employers or by Members, other than contributions
payable under FS Rule 3.3 (Members’ additional voluntary contributions) or MP Rule 3.3 (Members’ additional voluntary contributions); or 

 

	 	(c)	improve existing benefits under the Final Salary Section of the Scheme; or 

 

	 	(d)	provide new benefits under the Final Salary Section of the Scheme; or 

  

	 	4.1.2.2  	by directing the Trustees, subject to section 37 of the Pensions Act 1995 (payment of surplus to employer), to pay all or part of the surplus to the Employers in such
proportions as the Principal Employer shall decide (less any tax for which the Trustees may be liable or accountable to HMRC); or 

  
 12 

	 	4.1.2.3  	in any other way as may be permitted by HMRC. 

  

	 	4.1.3  	The Principal Employer may direct the Trustees not to do anything to reduce or eliminate a surplus and the Scheme will be subject to any tax on the amount of the
surplus as HMRC shall determine. 

  

	 	4.1.4  	The powers and obligations under this C Rule 4.1 (Valuations and surplus) may be exercised in favour of such Employers and Members as the Principal Employer may
direct. 

  

	4.2	Fund deficiency 

 If at
any time the Scheme Actuary certifies that there would be insufficient assets to meet the Scheme’s liabilities, the Trustees, after obtaining the advice of the Scheme Actuary, shall specify the action required to be taken by the Principal
Employer to restore and secure the solvency of the Fund. If the Principal Employer does not agree to take such action, then the Trustees may give notice to the Principal Employer that the Scheme shall be wound up in accordance with C Rule 14
(Winding-up). 
  

	4.3	Auditing accounts 

  

	 	4.3.1  	The Trustees will appoint an auditor to the Scheme and ensure that Scheme accounts are prepared and audited once a year. 

 

	 	4.3.2  	The following are ineligible for appointment as an auditor to the Scheme: 

  

	 	4.3.2.1  	a Member; 

  

	 	4.3.2.2  	a Trustee or any person connected with a Trustee; 

  

	 	4.3.2.3  	a person who is employed by the Trustees; 

  

	 	4.3.2.4  	an Employer of any Member or any company in the same group of companies as an Employer; and 

 

	 	4.3.2.5  	a director, officer, or employee of any Employer or company within the same group of companies as the Employer. 

 

	 	4.3.3  	The Trustees shall obtain audited accounts of the Scheme as soon as is reasonably practicable after the end of each Scheme year, but not more than seven months after
the end of that period. 

  
 13 

	5.	Scheme expenses 

 This
Rule sets out the terms on which expenses of the Scheme will be paid. 
  

	5.1	Fund to pay expenses of the Scheme 

 Unless C Rule 3.5 (Insurance) or C Rule 5.2 (Principal Employer paying expenses of the Scheme) applies, all costs, charges and expenses incurred in connection with or in relation to the
Scheme (whether disbursed by the Principal Employer, and Employer or the Trustees) and any remuneration of the Trustees shall be borne by the Fund. 
  

	5.2	Principal Employer paying expenses of the Scheme 

 The Principal Employer may from time to time elect to pay, and bear itself, the whole or any part of the costs, charges, expenses and remuneration referred to in C Rule 5.1 (Fund to pay expenses of
the Scheme). The Principal Employer shall be reimbursed by each of the other Employers to such extent and in such proportions as the Principal Employer may decide (together with any VAT). 

 

	5.3	Members’ AVC Accounts 

All administration expenses relating to Members’ AVC Accounts will be paid out of the assets, unless the Principal Employer, with the
agreement of the Trustees, decides otherwise. 

  
 14 

	6.	Scheme assets 

 This Rule
sets out the basis on which the Trustees can invest the Scheme’s assets. 
  

	6.1	Assets held on trust 

  

	 	6.1.1  	The Trustees will hold the assets and income of the Scheme on trust for the purposes of the Scheme. 

 

	 	6.1.2  	Any assets of the Scheme that relate to the provision of money purchase benefits under the Scheme (including additional voluntary contributions under the Money Purchase
Section) will only be used to provide those benefits. 

  

	6.2	Investment of Scheme assets 

  

	 	6.2.1  	The Trustees will invest or apply all or any part of the assets of the Scheme as they decide is appropriate and as if they were absolutely and beneficially entitled to
the assets. In exercising this power, the Trustees must ensure that the restrictions on employer-related investment set out in section 40 of the Pensions Act 1995 are not exceeded, 

 

	 	6.2.2  	The Trustees may (without limitation to the general power above): 

  

	 	6.2.2.1  	place trust moneys on current or deposit account with any relevant institution (as defined in Section 49(1A) of the Pensions Act 1995 except where provided for in
the Occupational Pension Schemes (Scheme Administration) Regulations (S.I. 1996/1715) at a rate of interest (if any) and upon any terms as the Trustees think fit; 

 

	 	6.2.2.2  	invest or otherwise place trust moneys in or upon the security of stocks, shares, debentures, debenture stocks, British Government stock, loans or any interest in land
or property or in unit trusts, exempt funds or mutual funds or in any other investment whatsoever and wherever situate; 

  

	 	6.2.2.3  	effect or maintain with an Insurance Company any deferred or immediate annuity, assurance, sinking fund, deposit administration or managed fund policies or contracts,
including policies or contracts conferring rights to participation in the profits of an insurance company, and to deal in or agree to any variation in the terms of those policies or contracts; 

  
 15 

	 	6.2.2.4  	make secured or unsecured loans to any persons or bodies corporate and upon any terms as the Trustees may in their absolute discretion think fit;

  

	 	6.2.2.5  	underwrite or guarantee the issue of any shares, securities or obligations of any kind in their opinion suitable for the investment of the Fund;

  

	 	6.2.2.6  	to enter into any contract or agreement binding the Scheme or the Fund; and 

 

	 	6.2.2.7  	to deal in financial futures and traded options (as an investment) within the scope, of Section 659A of the Income and Corporation Taxes Act 1988.

  

	6.3	Fund manager 

  

	 	6.3.1  	The Trustees may, with the consent of the Principal Employer, appoint one or more fund managers for the purposes of section 47(2) of the Pensions Act 1995. Separate
fund managers may be appointed in respect of separate parts of the Fund. 

  

	 	6.3.2  	The Trustees may delegate any or all of their powers and discretions regarding the investment and application of the Fund assets to a fund manager upon any terms and
conditions, including sub-delegations, as they think fit. 

  
 16 

	7.	Participating Employers 

This Rule sets out the terms on which an employer can participate and cease to participate in the Scheme. 

 

	7.1	Process for starting to participate 

 The Principal Employer may allow any employer to participate in the Scheme subject to Contracting-out Laws. 
  

	7.2	Ceasing to participate 

An employer may cease to participate in the Scheme at any time by written notice to the Trustees subject to the payment of any
contributions as required by the Rules, and shall cease to participate if required to do so by the Principal Employer. 
 When an
employer ceases to participate in the Scheme, any members who are then in employment with that employer shall become entitled to benefits as if they had then left service. 

 

	7.3	Consequences of leaving the Scheme 

 As from the effective date of a Participating Employer leaving the Scheme: 
  

	 	7.3.1  	its liability, and any liability of its Employees who are Members, to contribute to the Scheme shall cease, except in respect of: 

 

	 	(a)	any contributions (including suspended contributions) and administration expenses which became due before the effective date; 

 

	 	(b)	any administration expenses incurred in connection with its leaving the Scheme; and 

 

	 	(c)	any contributions which may be required from the Participating Employer if continued provision of death benefits are to be provided in accordance with C Rule
sub-rule 7.3.5; 

  

	 	7.3.2  	No further pension or other retirement benefits shall accrue under the Scheme for or in respect of any former or present Employees of the Participating Employer;

  
 17 

	 	7.3.3  	Subject to C Rule sub-rule 7.3.5, any benefits provided under the Scheme which are payable on the death of any Employee of the Participating Employer who is a
Member (other than any benefit relating to a return of a Member’s contributions or AVC Account or the payment of a GMP, and the pension (if any) that must be paid to him or her in accordance with the Contracting-out Laws) shall cease to be
provided; and 

  

	 	7.3.4  	A partial termination of the Scheme shall then occur in accordance with C Rule 13.1 (Partial termination of the Scheme). 

 

	 	7.3.5  	The Participating Employer may decide, with the agreement of the Trustees, to make continued provision of death benefits for any of its Employees who are Members. The
Participating Employer shall agree with the Trustees the amount and type of any continued death benefit and the period during which it may be provided, subject to the Scheme’s status as a registered scheme not being prejudiced.

  
 18 

	8.	Change of Principal Employer 

 This Rule sets out the terms on which the Principal Employer of the Scheme can change. 
  

	8.1	Any Participating Employer may take over the role of Principal Employer under the Scheme if: 

 

	 	8.1.1	  the departing Principal Employer appoints a Participating Employer which agrees to assume the position of Principal Employer under the Scheme; or

  

	 	8.1.2  	the Principal Employer is in receivership or liquidation (other than for the purpose of amalgamation or reconstruction) and the Trustees appoint a Participating
Employer which agrees to assume the position of Principal Employer under the Scheme. 

  

	8.2	Any company, firm or person which succeeds to the business of the Principal Employer may agree with the Principal Employer to assume the position of Principal Employer
under the Scheme. 

  

	8.3	For the purposes of C Rule sub-Rule 8.1 and C Rule sub-Rule 8.2 any new Principal Employer must agree by deed between the Trustee, the departing Principal
Employer and the new Principal Employer to comply with the Rules of the Scheme. 

  
 19 

	9.	Trustees’ discretion to make unauthorised payments 

 If a benefit paid under these Rules is an unauthorised payment under the Finance Act 2004, the benefit will be reduced by a tax charge of 40%, and might prejudice the registered tax status of the Scheme,
This Rule gives the Trustees the discretion to decide not to pay this benefit. 
 Where any provision in the Rules requires the
Trustees to make a payment which by virtue of section 160 of the Finance Act 2004 (payments by registered pension schemes) would be an unauthorised payment, the Trustees will have the discretion whether or not to make that payment. The Trustees will
exercise this discretion subject to the other requirements of the Rules, including obtaining the consent of any other person to the relevant payment. 

  
 20 

	10.	Discretionary benefits and flexible retirement 

 This Rule sets out the terms on which (i) an Employer can ask the Trustees to pay someone benefits from the Scheme that are different to those described in the other provisions of the Rules, and
(ii) an Employee can take his or her pension while remaining in employment. 
  

	10.1	Discretionary benefits 

If the Principal Employer agrees and the Principal Employer or the Employer pays any additional contributions which the Trustees decide
are appropriate (after consulting the Scheme Actuary), the Trustees may: 
  

	 	10.1.1  	provide increased benefits payable under the Scheme or pay any benefit in a different form or on different terms than otherwise provided under the Scheme;

  

	 	10.1.2  	provide new or additional benefits in respect of a Member; 

  

	 	10.1.3  	provide benefits in respect of any other person for whom benefits can be provided under the Scheme (including any Employee or former Employee); or

  

	 	10.1.4  	add interest to the repayment of any Member’s contributions. 

 Benefits provided under this Rule shall be consistent with the Preservation, Revaluation, Contracting-out and Transfer Value Laws, Sections 67 to 67I of the Pensions Act 1995 and the Scheme’s tax
status as a registered pension scheme under the Finance Act 2004. 
  

	10.2	Flexible retirement 

  

	 	10.2.1  	Member’s option 

  

	 	10.2.1.1  	Any Member who has reached age 50 (age 55 from 6 April 2010) may, with the consent of the Trustees, prior to, on or after his or her Normal Retirement Date
commence payment of his or her pension whilst continuing in employment. 

  

	 	10.2.1.2  	Any Member taking advantage of this option shall do so on such terms and conditions as determined by the Trustees. 

  
 21 

	 	10.2.2  	Membership status 

  

	 	10.2.2.1  	When any of a Member’s retirement benefits commence to be paid, the Member shall immediately cease to be a Pension Member of the Scheme. However, for so long as he
or she continues to be eligible, he or she shall be treated as a Death Benefit Member for the purposes of the Rules. 

  

	 	10.2.2.2  	If the Member subsequently wishes to accrue further benefits under the Scheme, he or she shall be required to apply for admission as a new member of the Money Purchase
Section of the Scheme subject to the consent of his or her Employer and the Trustees, or otherwise in accordance with the Rules in force at the time. Upon admission as a new member of the Money Purchase Section of the Scheme the Member shall
immediately cease to be a Death Benefit Member. 

  
 22 

	11.	Pension sharing 

 This
Rule sets out the basic legal framework that applies when a Member is a party to a pension sharing order. 
  

	11.1	Effect of pension sharing orders 

  

	 	11.1.1  	If a Member’s benefits must be transferred to his or her former Spouse as a result of an order made under the Welfare Reform and Pensions Act 1999
(“WRPA”), the Trustees must comply with the requirements of the WRPA when discharging their liability to the former Spouse. 

  

	 	11.1.2  	The Trustees may recover charges in respect of their costs in this regard in accordance with The Pensions on Divorce etc (Charging) Regulations 2000.

  

	 	11.1.3  	The Trustees must treat only the “safeguarded percentage” of a former Spouse’s rights as his or her “safeguarded rights” (as defined in Part
IIIA of the Pension Schemes Act 1993) when discharging their liability to that former Spouse. 

  

	 	11.1.4  	The provisions of this C Rule 11.1 (Effect of pension sharing orders) will apply with the necessary changes in respect of equivalent Northern Ireland laws.

  

	11.2	Benefits for a former Spouse under the Scheme 

  

	 	11.2.1  	The Trustees may decide that a former Spouse should be provided with benefits from the Scheme on the following conditions: 

 

	 	11.2.1.1  	the benefits must comply with the laws on safeguarded rights in Part IIIA of the Pension Schemes Act 1993; 

 

	 	11.2.1.2  	the benefits must be provided separately from any other benefits to which the former Spouse may be entitled under the Scheme; 

 

	 	11.2.1.3  	the Trustees must provide the former Spouse with written details of the benefits that will be provided in respect of him or her; and 

 

	 	11.2.1.4  	if a former Spouse dies before a Transfer Payment to another pension arrangement can be made in respect of him or her, the Trustees may instead provide benefits in
respect of the former Spouse under the Scheme from any or all of the intended Transfer Payment. These benefits must comply with the WRPA, and any unpaid amount will form part of the Scheme assets. 

  
 23 

	12.	Assignment and reduction of benefits 

 This Rule sets out the terms on which a Member’s benefits may be reduced or cease to be payable, 
  

	12.1  	General prohibition 

Benefits under the Scheme cannot be assigned, charged, surrendered, forfeited or paid for the benefit of anyone except the person entitled
under these Rules, subject to the remainder of this C Rule 12 (Assignment and reduction of benefits), FS Rule 6.2 (Exchanging for a dependant’s pension) and MP Rule 5.5 (Exchanging for a dependant’s pension) and C
Rule 11 (Pension sharing). 
 This C Rule 12 (Assignment and reduction of benefits)is subject to the Contracting-out
Laws. 
  

	12.2	Power to withhold a benefit 

  

	 	12.2.1  	Subject to sections 91 to 94 of the Pensions Act 1995 (assignment, forfeiture, bankruptcy etc), the Trustees shall withhold payment of a benefit if either the person
entitled to the benefit tries to assign or charge it, or anything else happens as a result of which the benefit or any part of it would become vested in or payable for the benefit of another person. The Trustees shall hold any benefits forfeited by
a Member in this way for the general purposes of the Scheme. 

  

	 	12.2.2  	The Trustees may pay all or part of any benefit withheld under this C Rule 12 (Assignment and reduction of benefits) to or for the benefit of the Member or
person entitled to the benefit, his Spouse or any of his Dependants in the proportions and manner decided by the Trustees so long as no payment is made to the purported assignee, mortgagee or chargee. 

 

	12.3  	Reduction of benefits for offences and other acts or omissions 

  

	 	12.3.1  	The Trustees may decide that any part of a benefit payable or prospectively payable shall be forfeited or cease to be payable if the person entitled to the benefit has
been convicted of an offence listed in section 92 of the Pensions Act 1995 (forfeiture, etc). 

  

	 	12.3.2  	If a Member owes money to the Scheme as a result of his or her criminal, negligent or fraudulent act or omission, the Trustees may reduce the Member’s benefits,
subject to the requirements of sections 91 to 94 of the Pensions Act 1995 (assignment, forfeiture, bankruptcy etc). 

  
 24 

	12.4  	Debts owed to an Employer 

  

	 	12.4.1  	If a Member owes money to an Employer as a result of his or her criminal, negligent or fraudulent act or omission, the Member’s benefits under the Scheme shall
stand charged with the payment of that sum. 

  

	 	12.4.2  	The Trustees shall, unless the Employer decides otherwise, pay out of the Scheme to the Employer the amount of the liability under this C Rule 12.4 (Debts owed
to an Employer). The payment made to the Employer shall be limited to the lesser of the amount of the liability and the value, determined by the Trustees on the advice of the Scheme Actuary, of the accrued benefits payable to and in respect of the
Member on the date on which the liability arose. 

  

	 	12.4.3  	The Employer must produce evidence to the satisfaction of the Trustees of the amount of the liability. The Trustees shall then give the Member a certificate showing the
amount to be paid to the Employer and its effect on the Member’s benefits under the Scheme. 

  

	 	12.4.4  	If the Member disputes the liability, the Trustees shall not make a payment to the Employer unless the liability has become enforceable under a court order or the award
of an arbitrator. 

  

	 	12.4.5  	The production of a certificate signed by or on behalf of the Employer that any amount is owed to it shall be sufficient evidence of the fact to the Trustees.

  

	 	12.4.6  	This C Rule 12.4 (Debts owed to an Employer) does not apply to: 

  

	 	12.4.6.1  	any benefit derived from a Transfer Amount paid to the Scheme unless the Pensions Regulator agrees otherwise; or 

 

	 	12.4.6.2  	any GMP or any accrued rights to GMP, and the pension (if any) that must be paid to him or her in accordance with the Contracting-out Laws. 

 

	12.5  	Unclaimed benefits 

 The
entitlement to any benefit which the Trustees have been unable to pay and which remains unclaimed for 6 years from the date it became payable will cease. The Trustees will keep the unpaid amount in the Scheme assets. 

  
 25 

	13.	Termination of the Scheme 

This Rule sets out the terms that apply in relation to the termination of the Scheme. In particular, it requires that active members must
then be treated as having left Pensionable Service. 
 13.1   Partial termination of the Scheme 

 

	 	13.1.1  	Appropriate proportion of the Fund 

 On the effective date on which a Participating Employer leaves the Scheme the Trustees, after obtaining the advice of the Scheme Actuary shall decide what portion of the Fund applies to the Participating
Employer in respect of: 
  

	 	13.1.1.1  	all Members who on the effective date are both in the Service of the Participating Employer and in Pensionable Service; 

 

	 	13.1.1.2  	such Members, as the Trustees after consulting the Principal Employer shall decide, who on the effective date are no longer in Pensionable Service, whether or not they
are in the Service of the Participating Employer; 

 except any Member in the Service of the Participating Employer
who transfers to the Service of another Employer immediately after the effective date; 
  

	 	13.1.1.3  	as the Trustees after consulting the Principal Employer shall decide, any person in receipt of pension from the Scheme which derives from a Member formerly in the
Service of the Participating Employer. 

  

	 	13.1.2  	For the purpose of this Rule, the appropriate portion of the Fund described in C Rule sub-rule 13.1.1 is, in relation to the Final Salary Section of the Scheme
only, the amount which the Scheme Actuary certifies in writing to be the lesser of: 

  

	 	13.1.2.1  	a share of the Fund appropriate to the Members concerned; and 

  

	 	13.1.2.2  	the value of the liabilities under the Scheme of the benefits which have accrued, or are payable, to and in respect of the Members concerned as at the effective date;

 but excluding, any liabilities relating to the AVC Accounts in respect of those Members. The appropriate parties
of the fund described in C Rule sub-rule 

  
 26 

 
13.1.1,   in relation to the Money Purchase Section only, shall be the aggregate value of the Members’ Pension Accounts of the Members concerned. 

 

	 	13.1.3  	For the purpose of C Rule sub-rule 13.1.2.1, in calculating a share of the Fund, the value of assets and liabilities of the Fund will be taken as at the
effective date or, if the Scheme Actuary decides, as at the date on which the Fund was last valued for the purpose of C Rule 4.1 (Valuations and surplus) and C Rule 4.2 (Fund deficiency). Without limiting the Scheme Actuary’s
discretion under this C Rule sub-rule 13.1.3, the Scheme Actuary may notionally reserve assets of the Fund which relate to liabilities or estimated liabilities in respect of one or more categories of beneficiaries outside the group of Members
concerned or which relate to any special contribution paid by the Participating Employer concerned and designated for a particular purpose and, accordingly, apportion only the remaining assets of the Fund. 

 

	 	13.1.4  	The value of the liabilities described in C Rule sub-rule 13.1.2.2 shall be calculated by reference to: 

 

	 	13.1.4.1  	in relation to those Members described in C Rule sub-rule 13.1.1.1, the deferred benefits (taking into account the preservation, contracting-out and revaluation
requirements of the Pension Schemes Act 1993) to which they would have been entitled had they left Pensionable Service as Qualified Members on the effective date (whether or not they would otherwise be treated as Qualified Members) and ignoring any
refunds of Members’ Contributions which might otherwise apply; 

  

	 	13.1.4.2  	in relation to those Members described in C Rule sub-rule 13.1.1.2, the benefits accrued or payable to and in respect of them at the effective date;

  

	 	13.1.4.3  	in relation to those persons described in C Rule sub-rule 13.1.1.3, the benefits payable to them at the effective date. 

 

	 	13.1.5  	The Scheme Actuary shall certify to the Trustees whether the appropriate portion of the Fund is sufficient to provide the benefits payable to and in respect of the
Members of the Final Salary Section and other persons concerned. 

  

	 	13.1.6  	The Trustees with the consent of the Principal Employer may in respect of the Final Salary Section only, increase the appropriate portion of the Fund up to:

  

	 	13.1.6.1  	the full share of the Fund which the Scheme Actuary certifies in writing to be appropriate to the Members and persons concerned; or 

  
 27 

	 	13.1.6.2  	the value of the liabilities under the Scheme (excluding those relating to AVC Accounts) at the effective date for and in respect of the Members and persons concerned,
making an allowance for future increases in Final Pensionable Salary and in pensions (whether or not in payment). The Scheme Actuary shall certify the basis of valuing these liabilities and the allowances which he considers appropriate.

  

	 	13.1.7  	Application of the appropriate portion of the Fund 

 On the partial termination of the Scheme, the Trustees shall to the extent necessary realise the assets of the Fund relating to the appropriate portion of the Fund and apply the amount in relation to the
Members and persons to which it applies, in accordance with and subject to the appropriate provisions of C Rule 13.2 (Power to terminate the Scheme) and C Rule 14 (Winding up). 

The Trustees shall realise any AVC Accounts relating to the Members concerned and apply the amount separately to provide benefits for and
in respect of those Members. 
 In applying the provisions of C Rule 13.2 (Power to terminate the Scheme) and C Rule
14 (Winding up) to a partial termination of the Scheme, references in those Rules to “winding up” shall be interpreted as references to “partial termination” and references to “the effective date of termination”
shall be interpreted as “the effective date of the Participating Employer leaving the Scheme”. 
  

	 	13.1.8  	The provisions of C Rule 14.12 (Alternative to winding-up) do not apply in respect of a partial termination of the Scheme. 

 

	 	13.1.9  	If a transfer to another occupational pension scheme or personal pension scheme is to be made in respect of any Employees or former Employees of the Participating
Employer who are Members, the Transfer Payment shall be calculated in accordance with the provisions of FS Rule 12 (Transfers to and from the Final Salary Section) and MP Rule 12 (Transfers to and from the Money Purchase Section) in
relation to any group of Members in respect of whom a bulk transfer is to be made to another occupational pension scheme. 

  
 28 

	 	13.1.10  	If C Rule sub-rule 13.1.9 applies and the Principal Employer so directs, benefits may be retained under the Scheme for certain Members. 

 

	13.2  	Power to terminate the Scheme 

 The Scheme will terminate for any of the following reasons: 
  

	 	13.2.1  	the Principal Employer terminates the Scheme at any time by giving three months’ notice in writing to the Trustees (or such shorter period as is agreed with the
Trustees); 

  

	 	13.2.2  	the Scheme Actuary certifies that the Fund is insolvent and the Employers fail, in the Trustees’ opinion and within a period specified by the Trustees in a written
notice to the Employers, to comply with the action required to remedy the position as decided by the Trustees after consulting the Scheme Actuary; 

  

	 	13.2.3  	the Trustees decide, after taking actuarial advice, that the contributions the Employers are paying, and are expected to pay in the future, are so low that the
financial position of the Fund is prejudiced; 

  

	 	13.2.4  	the Trustees decided that the intentions and objects of the Scheme have become significantly different to those which were relevant at the start of the Scheme;

  

	 	13.2.5  	the Trustees determine that the Principal Employer has failed to comply with any provisions of the Scheme which apply to it as Principal Employer and fails, within a
period specified by the Trustees in a written notice to the Principal Employer, to comply with the action required to remedy the position as decided by the Trustees after consulting the Scheme Actuary; or 

 

	 	13.2.6  	if an ‘insolvency event’ (as defined in section 121 (insolvency event, insolvency date and insolvency practitioner) of the Pensions Act 2004) occurs in
relation to the Principal Employer, or it ceases to participate and no person subsequently agrees to take over the role of Principal Employer in relation to the Scheme under C Rule 8 (Change of Principal Employer). 

 

	13.3  	On the termination of the Scheme the Trustees shall resolve either to wind-up the Scheme in accordance with the provisions of C Rule 14 (Winding-up) or to
continue the Scheme as a Frozen Scheme in accordance with the provisions of C Rule 14.12 (Alternative to winding-up). 

  
 29 

	13.4  	Effective date of termination 

  

	 	13.4.1  	In relation to the events described in C Rule 13.1 (Partial termination of the Scheme), the effective date of the termination of the Scheme is;

  

	 	13.4.1.1  	if the event described in C Rule sub-rule 13.1.1 applies, the effective date of the written notice given by the Principal Employer to the Trustees; or

  

	 	13.4.1.2  	if either of the events described in C Rule sub-rule 13.1.2 or C Rule sub-rule 13.1.3 applies, the effective date of the written notice given by the Trustees to
the Employers; or 

  

	 	13.4.1.3  	if either of the events described in C Rule sub-rule 13.1.4 or C Rule sub-rule 13.1.5 applies, the effective date of the written notice given by the Trustees to
the Principal Employer; or 

  

	 	13.4.1.4  	if the event described in C Rule sub-rule 13.1.6 applies, the date on which an ‘insolvency event’ occurs in relation to the Principal Employer or on
which the Principal Employer otherwise ceases to carry on business or ceases to exist. 

  

	13.5  	Dispute as to effective date of termination 

 In the event of a dispute as to the effective date of termination, the Trustees shall determine the effective date of termination. 

 

	13.6  	Effect on Members’ benefits and contributions 

 The Trustees will treat any Members who are in Pensionable Service when the Scheme terminates as having left Pensionable Service at this time. Those provisions of the Rules that are consistent with this
C Rule 13 (Termination of the Scheme) will then continue to apply to the Scheme. 

  
 30 

	14.	Winding-up 

 This Rule
sets out the terms that apply in relation to winding up the Scheme. 
  

	14.1  	Power to wind-up the Scheme 

 The Trustees may wind-up the Scheme if the Scheme is terminated under C Rule 13 (Termination of the Scheme). However, they may instead defer winding up the Scheme and continue it in accordance with
C Rule 13.3 by continuing the Scheme as a Frozen Scheme. 
  

	14.2  	Effect of winding up on the provisions of the Scheme 

 During winding-up, all the provisions of the Rules will continue to apply (including the amendment power), so far as they are consistent with this C Rule 14 (Winding-up). If the Principal Employer
is dissolved before the winding- up is completed, the Trustees may exercise any powers given to the Principal Employer, unless another person has taken over the role of the Principal Employer in relation to the Scheme under C Rule 8 (Change
of Principal Employer). 
  

	14.3  	Notice of winding-up to Members 

 Within one month of starting to wind-up the Scheme, the Trustees shall notify in writing each Member and other person to whom information is required to be given that the Trustees have started to wind-up
the Scheme. 
  

	14.4  	Use of Scheme assets 

 As
soon as practicable after the effective date of termination, the Trustees will apply the Scheme’s assets as described in C Rule 14.5 (Expenses) to C Rule 14.10 (Funding deficit) below. 

 

	14.5  	Expenses 

 The Trustees
must first set aside such assets as they estimate will be sufficient to pay the expenses of the Scheme until the winding-up has been completed. 

  
 31 

	14.6  	Securing benefits with an Insurance Company 

 Once an amount in respect of expenses has been put aside under C Rule 14.5 (Expenses), the Trustees will apply the remaining assets to buy an insurance policy or annuity contract from an Insurance
Company in the name of each person entitled to benefits under the Scheme, except where those assets are used to provide benefits under FS Rule 12 (Transfers to and from the Final Salary Section) or MP Rule 12 (Transfers to and from the
Money Purchase Section) or C Rule 14.8 (Winding-up lump sums). 
 Any such policies or contracts must: 

 

	 	14.6.1  	comply with the Preservation, Contracting-Out and Revaluation Laws; 

  

	 	14.6.2  	be consistent with the treatment of the Scheme as a registered pension scheme for the purposes of the Finance Act 2004; and 

 

	 	14.6.3  	provide benefits which are the same (or as similar as practicable) as those benefits which would otherwise have been provided in respect of the people for whom they are
bought under the Scheme. 

 Any policies or contracts which the Trustees bought before the winding-up began and
which the Trustees consider to be appropriate may also be transferred by the Trustees into the names of the people entitled to benefits under them. 
  

	14.7  	Transfers to other schemes 

Instead of buying insurance policies or annuity contracts under C Rule 14.6 (Securing benefits with an Insurance Company) in
respect of any person entitled to benefits under the Scheme when the Scheme begins to wind up, the Trustees have a discretion to make Transfer Payments in respect of that person in accordance with FS Rule 12 (Transfers to and from the Final
Salary Section) and MP Rule 12 (Transfers to and from the Money Purchase Section) with the Principal Employer’s agreement. Any such transfer in respect of a person in contracted-out employment must comply with the requirements of section
50 of the Pension Schemes Act 1993 (powers of Inland Revenue to approve arrangements for scheme ceasing to be certified). 
  

	14.8  	Winding-up lump sums 

 It
may be that the value of a Member’s benefit under the Scheme is such that it can be paid as a ‘winding up lump sum’ in accordance with paragraph 10 of Schedule 29 to the Finance Act 2004. If so, the Trustees may extinguish the
Member’s entitlement under the Scheme by paying him or her an immediate lump sum instead of providing other benefits. 

  
 32 

	14.9  	Surplus assets 

  

	 	14.9.1  	If the Trustees apply such of the Scheme’s assets as are needed to provide the Members’ benefits in full and they are then left with surplus assets in the
Scheme, they may, if the Principal Employer agrees, apply these surplus assets to increase any of the Members’ benefits or provide additional benefits to such extent as they decide is reasonable. Any surplus assets still remaining will be paid
to the Employers (less tax at the applicable rate), in such shares as the Principal Employer directs. 

  

	 	14.9.2  	The requirements of section 76 of the Pensions Act 1995 (excess assets on winding up) must be satisfied before any payment is made to the Employers.

  

	14.10  	Funding deficit 

  

	 	14.10.1  	If there is a deficit in the Scheme’s assets (such that they are insufficient to provide all benefits in full), the Scheme’s assets will be first used to pay
all expenses. Once these have been paid, the remaining assets will (except for assets that relate to any money purchase benefits under the Scheme) be applied in accordance with section 73 of the Pensions Act 1995 (preferential liabilities on winding
up). Any assets that relate to any money purchase benefits under the Scheme (including under the MP Section or additional voluntary contributions) will be used to provide those benefits. 

 

	 	14.10.2  	Any assets then remaining will be used to satisfy any remaining liabilities of the Scheme to any extent, and in any order of priority, as the Trustees consider
appropriate. 

  

	14.11  	Trustees indemnity 

 After
the winding up of the Scheme, the Employers shall jointly and severally keep the Trustees indemnified against any actions, proceedings, claims and demands and all costs, damages and expenses arising therefrom incurred by or claimed from the Trustees
or any of them in relation to the Scheme, except any resulting from willful wrongdoing, on the part of the Trustee. 
  

	14.12  	Alternative to winding-up 

  

	 	14.12.1  	 If, under C Rule 13.3, the Trustees resolve to continue the Scheme as a Frozen Scheme, they shall make appropriate arrangements as they think
fit for the continued administration and management of the Scheme. These arrangements shall include the execution by the Principal Employer and themselves of any necessary supplemental

  
 33 

	 	
trust deed to give effect to the arrangements and to any consequential amendments required to be made to the provisions of the Scheme. The arrangements shall not be of a kind as may prejudice the
Scheme’s status as a registered scheme with HMRC. 

  

	 	14.12.2  	If the Principal Employer is insolvent or if for any other reason it ceases to exist or carry on business, the Trustees may, by themselves alone, execute any necessary
supplemental trust deed to give effect to the arrangements made for the continued administration and management of the Scheme and to any consequential amendments required to the provisions of the Scheme. 

 

	 	14.12.3  	The Trustees may decide at any time to cancel the operation of the Scheme as a Frozen Scheme. As from the effective date of their decision, the Trustees shall either:

  

	 	14.12.3.1  	wind up the Scheme in accordance with the provisions of this C Rule 14 (Winding-up); or 

 

	 	14.12.3.2  	agree with the Principal Employer (including any new Principal Employer under the provisions of C Rule 8 (Change of Principal Employer)) to re-open the Scheme
and re-commence: 

  

	 	(a)	the payment of contributions by the Employers and, if appropriate, by the Members; and 

 

	 	(b)	the accrual of benefits for and in respect of Members; 

 whether or not any Employees who are not Members are admitted into membership of the Scheme. 
  

	 	14.12.4  	If the Scheme is re-opened, the Trustees shall make appropriate arrangements as they think fit for the administration and management of the Scheme, including the
execution by the Principal Employer and themselves of any necessary supplemental trust deed to give effect to the arrangements, and to any consequential amendments, required to be made to the provisions of the Scheme. The arrangements shall not be
of a kind as may prejudice the Scheme’s status as a registered scheme with HMRC. 

  

	 	14.12.5  	Unless arrangements are made to re-open the Scheme, the operation of the Scheme as a Frozen Scheme shall end on the date on which the Trustees cease to have any further
liabilities to or in respect of any person under the Scheme. 

  
 34 

 The Trustees shall then wind up the Scheme in accordance with the provisions of this C
Rule 14 (Winding-up). 

  
 35 

	15.	Amendment 

 This Rule sets
out the terms that apply in relation to amending the Rules. 
  

	15.1	The Principal Employer may with the consent of the Trustees at any time together by deed amend, replace or add to the Rules and may do so retrospectively, subject to
sections 67 to 67I of the Pensions Act 1995. 

  

	15.2	No amendment, replacement or addition may be made which would prejudice the Scheme’s status as a registered scheme. 

 

	15.3	The Principal Employer’s power under this C Rule 15 (Amendment) shall continue if the Scheme begins to wind up and shall continue to apply until the
winding-up has been completed. 

  
 36 

	16.	Laws 

 This Rule sets out
the legal framework which governs the Rules and the administration of the Scheme. 
  

	16.1	The Rules and the administration of the Scheme will be governed by and interpreted in accordance with the laws of England and Wales. 

 

	16.2	Any rights that a third party may have under the Contracts (Rights of Third Parties) Act 1999 are excluded. 

  
 37 

 

 
  

					
	Dated	 		 	2008

  
  

Rules of the Chaucer Pension Scheme 
  

 
 Final Salary Section 

 CONTENTS 

 

									
	FS Rule	  	 	  	 	  	Page	 
			
	1	  	MEANING OF DEFINED TERMS	  	 	1	  
	2	  	MEMBERSHIP OF THE SCHEME	  	 	10	  
		  	2.1	  	Joining the Scheme	  	 	10	  
		  	2.2	  	Opting-out	  	 	10	  
		  	2.3	  	Statutory family leave	  	 	11	  
		  	2.4	  	Additional family leave	  	 	12	  
		  	2.5	  	Absence for any other reason	  	 	12	  
	3	  	CONTRIBUTIONS	  	 	13	  
		  	3.1	  	Employer contributions	  	 	13	  
		  	3.2	  	Members’ basic contributions	  	 	14	  
		  	3.3	  	Members’ additional voluntary contributions	  	 	15	  
	4	  	ACTIVE MEMBERS’ IMMEDIATE PENSIONS	  	 	16	  
		  	4.1	  	Pension on retirement at Normal Retirement Date	  	 	16	  
		  	4.2	  	Pension on early retirement	  	 	16	  
		  	4.3	  	Early retirement not due to Incapacity	  	 	17	  
		  	4.4	  	Pension on Incapacity retirement	  	 	17	  
		  	4.5	  	Pension on late retirement	  	 	18	  
	5	  	BENEFITS FOR DEFERRED MEMBERS	  	 	20	  
		  	5.1	  	Leaving the Scheme	  	 	20	  
		  	5.2	  	Cash transfer sums and contribution refunds	  	 	20	  
		  	5.3	  	Preserved Pension at Normal Retirement Date	  	 	21	  
		  	5.4	  	Other options for the Payment of preserved pension	  	 	21	  
	6	  	EXCHANGING PENSION FOR OTHER BENEFITS	  	 	23	  
		  	6.1	  	Exchanging for a retirement lump sum	  	 	23	  
		  	6.2	  	Exchanging for a Dependant’s Pension	  	 	23	  
		  	6.3	  	Payment of a lump sum on grounds of serious ill health	  	 	23	  
	7	  	BENEFITS PAYABLE ON THE DEATH OF A MEMBER	  	 	24	  
		  	7.1	  	Benefits on death in Pensionable Service before Normal Retirement Date	  	 	24	  
		  	7.2	  	Benefits on death on or after Normal Retirement Date before pension is in payment	  	 	24	  
		  	7.3	  	Benefits on death after pension commences	  	 	25	  
		  	7.4	  	Benefits on death of a Deferred Member after leaving Pensionable Service	  	 	26	  
		  	7.5	  	Payment of lump sums on death	  	 	26	  
		  	7.6	  	Payment of Spouse’s pension on death	  	 	29	  
		  	7.7	  	Dependant’s pension	  	 	30	  
		  	7.8	  	Children’s pension	  	 	31	  
		  	7.9	  	Young Spouse	  	 	31	  
	8	  	TERMS FOR THE PAYMENT OF BENEFITS	  	 	33	  
		  	8.1	  	Frequency of pension payment	  	 	33	  
		  	8.2	  	Manner of Payment of benefits	  	 	33	  
		  	8.3	  	Incapable beneficiary	  	 	33	  

  
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		  	8.4	  	Reduction of benefits for the payment of tax	  	 	34	  
		  	8.5	  	Information from Members and others	  	 	34	  
		  	8.6	  	Enhanced protection	  	 	34	  
		  	8.7	  	Modification Regulations	  	 	34	  
	9	  	PENSION INCREASES	  	 	35	  
		  	9.1	  	Periods of review	  	 	35	  
		  	9.2	  	The rates of increase	  	 	35	  
		  	9.3	  	General Provisions	  	 	36	  
	10	  	SPECIAL BENEFITS	  	 	38	  
		  	10.1	  	Civil Partners	  	 	38	  
		  	10.2	  	Pre-6 April 2006 members	  	 	38	  
	11	  	OTHER WAYS OF CONVERTING PENSION INTO A LUMP SUM	  	 	39	  
		  	11.1	  	Trivial pension	  	 	39	  
		  	11.2	  	Payment of a lump sum on grounds of serious ill health	  	 	39	  
		  	11.3	  	Benefits in excess of the lifetime allowance	  	 	39	  
	12	  	TRANSFERS TO AND FROM THE FINAL SALARY SECTION	  	 	40	  
		  	12.1	  	Transfers to the Final Salary Section	  	 	40	  
		  	12.2	  	Transfers out of the Final Salary Section	  	 	41	  
		  	12.3	  	Statutory transfers	  	 	41	  
		  	12.4	  	Discretionary transfers	  	 	41	  
		  	12.5	  	Bulk transfers	  	 	41	  
		  	12.8	  	General	  	 	42	  
	13	  	BUY-OUT POLICIES	  	 	44	  
		  	13.1	  	Statutory buy-out	  	 	44	  
		  	13.2	  	Discretionary buy-out	  	 	44	  
		  	13.3	  	General	  	 	44	  
		  	13.4	  	Conditions of buying-out	  	 	44	  

  
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 THE FINAL SALARY SECTION RULES 

These are the Rules that govern the benefits and contributions payable under the Final Salary Section and should be read together with the
C Rules. 
  

	1.	Meaning of defined terms 

  

							
			
		  	“AVC Account”	  	means, in relation to a Member, that part of the Fund which the Trustees establish and maintain as the Member’s AVC Account in respect of the additional voluntary
contributions paid or treated as paid by the Member to the Scheme under FS Rule 3.3 (Members’ additional voluntary contributions);
			
		  	“Basic Salary”	  	means the basic annual salary or wages of a Member (excluding bonuses, commission, overtime and any other fluctuating emoluments) at the date in
question;
			
		  	“Beneficiaries”	  	has the meaning given in FS Rule 7.5.2.2;
			
		  	“Buy-out Policy”	  	means an insurance policy or annuity contract which satisfies the requirements of Section 95 of the Pension Schemes Act 1993 or is otherwise permitted under regulations
relating to the Pension Schemes Act 1993;
			
		  	“Cash Equivalent”	  	 means:
  

(1)    in relation to a Relevant Person who has a right to the cash equivalent of the
benefits accrued to or in respect of him or her under Section 94 of the Pension Schemes Act 1993, the cash equivalent calculated in accordance with Section 97 of the Pension Schemes Act 1993; and

			
		  		  	 (2)    in relation to a Relevant Person who does not have a
right to the cash equivalent in accordance with Section 94 of the Pension Schemes Act 1993, the value of the benefits accrued to or in respect of him or her under the Scheme calculated in such manner as the Trustees, after obtaining the advice of
the Scheme Actuary, shall agree with the Principal Employer;

			
		  	“C Rules”	  	means the Constitutional Rules which are common to all sections of the Scheme;

  
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	“Child”	  	means a child of the Member; the Member’s stepchild; a child who has been legally adopted by the
Member; and any other child who, in the Trustees’ opinion, was
dependent on the Member at the time of
the Member’s death and whom the Trustees agree to treat as a Child;
		
		  	A child shall remain a Child for so long as he or she is under age 23 and in full-time education or training approved by the Trustees. If any child was dependent on the Member
because of physical or mental impairment, the Trustees may continue to treat the child as a Child for so long as they are satisfied that the child is suffering from the impairment;
		
	“Civil Partner”	  	has the same meaning as in the Civil Partnership Act 2004;
		
	“Civil Partnership”	  	has the same meaning as in the Civil Partnership Act 2004;
		
	“Contracting-out Laws”	  	means the laws on contracting-out set out in Part III of the Pension Schemes Act 1993;
		
	“Death Benefit Member”	  	 means:
  

(a)    a Member who has ended his or her Pensionable Service under FS Rule 2.2
(Opting-out); or
  

(b)    a person admitted into the Scheme in accordance with the Supplemental Trust Deed and
Rules dated 25th October 2002 (as amended) up until the date when these Rules take effect either as a Death Benefit Member or a Member (but who has ended his Pensionable Service in accordance with the provisions of the Supplemental Trust Deed and
Rules dated 25th October 2002 (as amended)),

		
		  	and whose benefits under the Scheme will be restricted to the lump sum death benefits payable in accordance with FS Rule 7 (Benefits payable on the death of a
Member);
		
	“Deferred Member”	  	means a Member whose Pensionable Service ends before Normal Retirement Date and who has an entitlement to deferred benefits from the Scheme payable from Normal Retirement Date,
payment of which has not started;

  
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	“Dependant”	  	means a dependant as defined in paragraph 15 of Schedule 28 to the Finance Act 2004. A dependant
shall include the member’s spouse or civil partner, a child under the age of
23, or persons whom the
Trustees consider financially dependent or mutually financially dependent on the Member or
dependent due to physical or mental impairment;
		
	“Employee”	  	means an employee of an Employer who is normally resident in the United Kingdom or such other countries as may be agreed by the Trustees, and includes a director of an Employer
provided that the Scheme’s status as a registered pension scheme under the Finance Act 2004 is not prejudiced. For the purposes of the Scheme, any such director shall be deemed to be in Service. The Principal Employer shall decide whether or
not a person is in Service and its decision shall be final;
		
	“Employer”	  	means the Principal Employer and any Participating Employers. In relation to any Employee, former Employee or Member, “Employer” means that one of the Employers by which
he or she is, or was, last employed;
		
	“Final Pensionable Salary”	  	means in relation to a Member of the Final Salary Section the greater of:
		
		  	 (1)    his or her Basic Salary on his or her Normal Retirement Date (or on the earlier date of his or her
death or termination of Pensionable Service); and

		
		  	 (2)    the highest average of his Pensionable Salary on any three consecutive Renewal Dates during the ten
years (or such shorter period as he or she is a Member) ending on the day coincident with or, if not coincident with, immediately preceding his or her Normal Retirement Date ) or the earlier date of his or her death or termination of Pensionable
Service);

		
	“Final Salary Section”	  	means the final salary section of the Scheme to which these Rules apply;

  
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	 “Former

Scheme”
	  	means the Lloyd’s Superannuation Fund established by a trust deed dated 10 October 1929, the MFK Underwriting Agencies Limited section of the Legal and General Pension
Trust established by a declaration of trust dated 19 November 1987 and any registered scheme under the Finance Act 2004 for the purpose of paying a Transfer Amount to the Scheme, and includes (unless inconsistent with the context) the trustees
or administrator of the Former Scheme;
		
	“Frozen Scheme”	  	means a scheme under which all contributions have ceased and no further benefits accrue to scheme members but the assets of the scheme continue to be held by the scheme trustees to
be applied in accordance with the rules of the scheme;
		
	“FS Rules”	  	means, together with the C Rules, the Rules that govern the benefits payable under the Final Salary Section of the Scheme;
		
	“Fund”	  	means the investments, cash and other assets for the time being held by or on behalf of the Trustees for the purposes of the Scheme;
		
	“GMP”	  	means a guaranteed minimum pension (or accrued rights to one) under the Contracting-out Laws;
		
	“HMRC”	  	means Her Majesty’s Revenue and Customs;
		
	“Incapacity”	  	means physical or mental incapacity which prevents a Member from following his or her normal occupation and seriously impairs the Member’s earning capacity. It does not mean
simply a decline in energy or ability. The Trustees’ decision as to whether a Member is suffering from an Incapacity shall be final;
		
	“Index”	  	means the Government’s Index of Retail Prices or such other index as may be agreed for the purposes of the Scheme between the Trustees and HMRC;
		
	“Insurance Company”	  	means an “insurance company” as defined in section 275 of the Finance Act 2004;

  
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	 “Lifetime Allowance

Excess
 Lump

Sum”
	  	has the same meaning as in the Finance Act 2004;
		
	“Member”	  	means a person who has joined the Final Salary Section of the Scheme and in respect of whom the Trustees have a liability to pay or provide benefits;
		
	 “Minimum

Pension Age”
	  	means age 50 (or age 55 on or after 6 April 2010);
		
	“NewScheme”	  	means a scheme registered under the Finance Act 2004 as a registered pension scheme for the purpose of accepting a Transfer Payment from the Scheme, and includes (unless
inconsistent with the context) the trustees or administrator of the New Scheme;
		
	 “Normal

Retirement

Date”
	  	means a Member’s 60th birthday;
		
	“Participating Employer”	  	means any employer for the time being participating in the Scheme in accordance with C Rule 7.1 (Process for starting to participate), other than the Principal
Employer;
		
	“Pension Member”	  	means an Employee in Pensionable Service under the Scheme;
		
	“Pensionable Salary”	  	in relation to a Member is calculated on the day he or she becomes a Pension Member and on any day thereafter and means the Member’s Basic Salary;

  
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	“Pensionable Service”	  	 means the number of complete years and months of continuous Service which a Member completes as a Pension Member before his or her
Normal Retirement Date and which, if a Member of the Final Salary Section, qualifies him for accrual of pension benefits;
  
 Pensionable Service for Members of the Final Salary Section is restricted to a maximum of 40 years;
  

Service after Normal Retirement Date shall be counted as Pensionable Service if so determined by the Principal Employer in accordance with FS Rule
4.5 (Pension on late retirement);

		
	“Preservation Laws”	  	means the laws on preservation of benefit set out in Chapter I of Part IV of the Pension Schemes Act 1993;
		
	“Principal Employer”	  	means Chaucer Syndicates Limited or any company, firm, or individual which, in accordance with C Rule 8 (Change of Principal Employer), assumes the obligations of the
Principal Employer under the Scheme;
		
	“Professional Trustee”	  	means a Trustee who is in the business of providing a trustee service for payment;
		
	“Qualified Member”	  	 means a person:
  

(1)    who has completed at least two years’ Qualifying Service in respect of a Member
of the Final Salary Section;
  

(2)    in respect of whom the Trustees have accepted a transfer relating to his rights under
a personal pension scheme; or
  

(3)    who does not satisfy the criteria in (1) or (2) above but who, with the consent of the
Principal Employer, the Trustees determine shall be treated as a Qualified Member;

		
	“Qualifying Service”	  	 means the aggregate of:
  

(1)    the last period of continuous Pensionable Service other than Service which fails
within paragraphs (2) and (3) below;

  
 6 

			
		
		  	 (2)    any prior period of at least 2 years’ Pensionable Service in
respect of which a Member remains entitled to benefits under the Scheme;
  
 Provided that if the prior period of membership is, with the Member’s consent, treated under the Scheme as continuous with the subsequent period, the Pensionable Service granted in respect of the
prior Service is the Qualifying Service in respect of that prior period;

		
		  	 (3)    periods of service which counted as pensionable service in any previous employment during which the
Member was a member of any Former Scheme and in respect of which the Trustees have received a Transfer Amount; and

		
		  	 (4)    provided that in paragraphs (1) and (2) above any breaks in
Pensionable Service will be disregarded in assessing if Pensionable Service is continuous and the two (or more) separate periods will be aggregated if one or more of the following conditions are satisfied:

 
 (a)    the break does
not exceed one month;
  

(b)    the break corresponds to the Member’s absence from work wholly or partly because
of pregnancy, confinement or childbirth and the Member returns to work after the break in exercise of a right under the Employment Rights Act 1996 and the Member returns to Pensionable Service no later than one month after returning to
work;
  

(c)    the break corresponds to the Member’s absence from work further to a trade
dispute as defined in Section 35 of the Jobseekers Act 1995;

  
 7 

			
		  	 (d)    there is a break in Service of any length and, before the break, the Member has already completed
two years’ Qualifying Service.

	 “Reference Scheme”
	  	means the reference scheme (as defined for the purposes of section 12B of the Pension Schemes Act 1993);
		
	 “Reference

Scheme

Pension”
	  	means a pension provided under a Reference Scheme;
		
	“Relevant Person”	  	means any Member or any person whose benefit is in payment from the Scheme;
		
	“Renewal Date”	  	means 1 May in each year (or another date as the Trustees may from time to time decide);
		
	“Revaluation Laws”	  	means the laws on revaluation of accrued benefits set out in Chapter II of Part IV of the Pension Schemes Act 1993;
		
	“Rules”	  	means the rules which govern the Scheme;
		
	“Scheme”	  	means the Chaucer Pension Scheme;
		
	“Scheme Actuary”	  	means the Scheme actuary appointed by the Trustees under Section 47 of the Pensions Act 1995 or another actuary appointed by the Trustees;
		
	“Scheme Earnings Cap”	  	means £117,600 for the tax year 2008/9. It shall subsequently be increased annually by reference to either the basis set out in section 590C(5) and section 590C(5A) of the
Income and Corporation Taxes Act 1988 (notwithstanding the repeal of these sections), or another basis agreed by the Principal Employer and the Trustees in writing from time to time;
		
	“Service”	  	means employment with an Employer and shall be deemed continuous although broken by periods of one month or less or performed partly with one Employer and partly with another
Employer;

  
 8 

			
	 “Spouse”
	  	means a husband, wife, widower and a widow and also includes a Civil Partner, references to a “widow” or “widower” shall include a surviving Civil Partner,
and all references to “marriage” shall include Civil Partnership and references to “married” shall be interpreted accordingly;
		
	 “Standard Lifetime Allowance”    
	  	means an amount calculated in accordance with section 218 of the Finance Act 2004;
		
	 “State Pension Age”
	  	means a man’s 65th birthday and a woman’s 60th birthday (increasing gradually to 65 between 2010 and 2020 such that it will be 65 for both men and women from 6 April
2020);
		
	 “Transfer Amount”
	  	means any cash sum or other assets which a Former Scheme may be authorised to transfer to the Scheme in respect of a Member or other person who is entitled to benefits under the
Former Scheme;
		
	 “Transfer Payment”
	  	means, in relation to a Relevant Person, the cash equivalent in respect of that Relevant Person, or such greater amount as the Trustees, after consulting the Scheme Actuary,
shall agree with the Principal Employer;
		
	 “Transfer Value Laws”
	  	means the laws on transfer values set out in Chapter IV of Part IV of the Pension Schemes Act 1993;
		
	 “Trivial Pension Limit”
	  	means an amount which is no higher than 1% of the Standard Lifetime Allowance; and
		
	 “Trustees”
	  	means the trustees from time to time of the Scheme.

  
 9 

	2.	Membership of the Scheme 

This Rule sets out the terms on which an Employee may join the Final Salary Section of the Scheme and sets out the terms governing
members’ benefits while they are away from work, including while on family leave and on secondment, 
  

	2.1	Joining the Scheme 

  

	 	2.1.1  	The Final Salary Section is closed to new Members, with the exception of any person whom the Principal Employer with the agreement of the Trustees decides from time to
time to admit to membership of it. 

  

	2.2	Opting-out 

  

	 	2.2.1  	A Pension Member may at any time before Normal Retirement Date elect to end his or her membership of the Scheme whilst remaining in Service. To do this, the Member must
give the Trustees at least one month’s written notice and complete any appropriate forms the Trustees require for this purpose. The Trustees shall inform the Member as soon as practicable of the date on which his or her Pensionable Service is
treated as ending. 

  

	 	2.2.2  	If a Member has ended his or her Pensionable Service under this FS Rule 2.2 (Opting-out), he or she will be treated as a Death Benefit Member. His or her
benefits under the Scheme will be restricted to the lump sum death benefits payable in accordance with FS Rule 7 (Benefits payable on the death of a Member). 

 

	 	2.2.3  	If a Pension Member has ended his or her Pensionable Service under this FS Rule 2.2 (Opting-out) and remains in Service, the Trustees may allow him or her to
rejoin the Scheme as a Pension Member at a later date if: 

  

	 	2.2.3.1  	at that date he or she is under age 55; and 

  

	 	2.2.3.2  	he or she accepts any special conditions in respect of his or her membership which the Trustees consider appropriate including any restrictions on benefits payable
under the Scheme on his or her death which may be subject to medical evidence of his or her good health. 

  
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	2.3	Statutory family leave 

  

	 	2.3.1  	A Member shall be treated as still a member of the Scheme in Pensionable Service while away from work during a period of statutory family leave, being:

  

	 	2.3.1.1  	ordinary maternity leave, ordinary adoption leave, or paternity leave in accordance with the Employment Rights Act 1996; and 

 

	 	2.3.1.2  	any longer period in which the Member receives pay from the Member’s Employer and which is a period of maternity leave, adoption leave, paternity leave or absence
from work for other family reasons (as defined in the Social Security Act 1989). 

  

	 	2.3.2  	During any such period of statutory leave the benefits applicable to and in respect of the member under the Scheme will continue to accrue (or, if otherwise
appropriate, will continue to be provided) on the same basis and subject to the same terms and conditions which otherwise would have applied under the Scheme had he or she been working normally subject to the other provisions of this FS Rule
2.3 (Statutory family leave). 

  

	 	2.3.3  	If a Member receives pay from his or her Employer during any period of statutory family leave (as described above), he or she shall be required to pay contributions on
the amount received. However, if a Member receives no pay for any period of statutory family leave, he or she shall not be required to pay contributions for that period and membership, Pensionable Service and benefits will continue under the Scheme.

  

	 	2.3.4  	During any period of statutory family leave (as described above), a Member may continue, start to pay or increase, reduce or stop any additional voluntary contributions
to the Scheme. 

  

	 	2.3.5  	The Member’s benefits for any period of statutory family leave shall be calculated as if the Member had worked normally and received the normal pay for doing so.

  
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	2.4	Additional family leave 

  

	 	2.4.1  	If a Member is absent from work due to any other period of paid family leave, the Member’s benefits shall be based on the pay received unless the Principal
Employer and the Trustees decide to apply other terms to the Member. 

  

	 	2.4.2  	If a Member is absent from work due to a period of unpaid additional maternity leave, additional adoption leave or parental leave: 

 

	 	2.4.2.1  	the Principal Employer and the Trustees may agree to treat the Member as still in Pensionable Service for some or all purposes of the Scheme during this time. The
Principal Employer and the Trustees shall agree terms (consistent with the Contracting-out Laws) to apply to the Member’s contributions and benefits for this further period; or 

 

	 	2.4.2.2  	the Member shall otherwise be treated as if he or she had left Pensionable Service. However, if a Member returns to work at the end of such a period of unpaid leave,
his or her Pensionable Service before being treated as having left Pensionable Service and after returning to work shall be treated as continuous (but excluding the break). 

 

	2.5	Absence for any other reason 

  

	 	2.5.1  	Where a Member is away from work for any reason other than those described above or on secondment, the Principal Employer and Trustees may agree to treat the Member as
still in Pensionable Service during this period, subject to any terms which the Principal Employer and Trustees agree (consistent with the Contracting-out Laws). In particular, a Member who is away from work shall be treated as still in Pensionable
Service for so long as the Member receives contractual pay or statutory sick pay. If a Member is not treated as still in Pensionable Service, the Member shall be treated as if he or she had left Pensionable Service. No Employee will be prevented
from joining or re-joining the Scheme solely because of his or her temporary absence. 

  
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	3.	Contributions 

 This Rule
sets out the terms for the payment of contributions to the Scheme. 
  

	3.1	Employer contributions 

  

	 	3.1.1  	Each Employer shall contribute to the Scheme in respect of Employees who are Members. An Employer’s contributions shall be paid at a rate which from time to time,
the Trustees, after obtaining the advice of the Scheme Actuary, shall agree with the Principal Employer to be necessary to provide benefits under the Scheme for and in respect of the Members, taking into account any contributions payable by Members
under FS Rule 3.2 (Members’ basic contributions) and any additional liability falling on an Employer under FS Rule 2.3 (Statutory family leave). Such Employer contributions shall not prejudice the Scheme’s status as a
registered pension scheme under the Finance Act 2004. 

  

	 	3.1.2  	An Employer with the consent of the Principal Employer and the Trustees may at any time pay a special contribution to the Scheme for any purpose consistent with the
purposes of the Scheme. The Trustees shall apply the contribution solely for the purpose stated by the Employer, provided that this does not prejudice the Scheme’s status as a registered pension scheme under the Finance Act 2004.

  

	 	3.1.3  	Each Employer’s contributions must be paid to the Trustees, or as otherwise directed by the Trustees, at such intervals as the Trustees decide.

  

	 	3.1.4  	An Employer may at any time reduce, suspend or terminate its contributions to the Scheme by giving three months’ written notice to the Principal Employer, the
Trustees and to all its Employees who are Members. Any notice of reduction, suspension or termination of contributions is without prejudice to the Employer’s obligation to pay contributions to the Scheme in respect of the period before the
effective date of the notice. Any notice of termination extends to any liability of the Members who are Employees of the Employer to contribute to the Scheme. 

 

	 	3.1.5  	If an Employer terminates its contributions under this FS Rule 3.1 (Employer contributions), the provisions of C Rule 7.2 (Ceasing to participate) will
then apply. If the Principal Employer terminates its contributions under this FS Rule 3.1 (Employer contributions), the provisions of C Rule 14 (Winding-up) will then apply. 

  
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	3.2	Members’ basic contributions 

  

	 	3.2.1  	Each Member in Pensionable Service shall contribute to the Scheme at a rate of 4% of his or her Basic Salary or at such other rate as the Trustees may determine with
the agreement of the Principal Employer and notify to the Members. These contributions will be deducted from the Member’s earnings on each pay date. The Employer will pay these contributions to the Trustees as soon as is reasonably practicable
(or as otherwise directed by the Trustees) and at such intervals as the Trustees decide being no later than the 19th day of the month following that in which the deduction is made. 

 

	 	3.2.2  	A Member will pay ordinary contributions from the date of becoming a Member until, subject to the provisions below regarding paying basic contributions beyond Normal
Retirement Date, the earliest of: 

  

	 	3.2.2.1  	his or her Normal Retirement Date; 

  

	 	3.2.2.2  	his or her date of death; or 

  

	 	3.2.2.3  	the date on which he or she leaves Pensionable Service 

 except that a Member is not required to contribute to the Scheme for more than 40 years. 
  

	 	3.2.3  	A Member may not make contributions to the Scheme in excess of the annual limit on relief described in Section 190 of the Finance Act 2004.

  

	 	3.2.4  	If a Member remains in Service after Normal Retirement Date, his or her basic contributions may, at his request, but subject to the agreement of the Trustees and the
Principal Employer, continue for the period for which he or she accrues additional Pensionable Service under FS Rule 4.5 (Pension on late retirement). If the ordinary contributions of the Member had ceased before his or her Normal Retirement
Date because he or she had then completed 40 years’ Pensionable Service although he or she remained in Service, he or she will pay ordinary contributions from his or her Normal Retirement Date for the period for which he or she accrues
additional Pensionable Service under FS Rule 4.5 (Pension on late retirement). 

  

	 	3.2.5  	A Member will continue to pay such basic contributions to the Scheme in respect of Pensionable Service after his or her Normal Retirement Date which require to be paid.
These contributions will cease on the earlier of his or her actual retirement and his or her 75th birthday. 

  
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	3.3	Members’ additional voluntary contributions 

  

	 	3.3.1  	A Member in Pensionable Service may pay additional voluntary contributions to the Scheme to provide additional or increased benefits for or in respect of him or her on
a money purchase basis. Additional voluntary contributions may be made to the Scheme so long as the Member does not start to make additional voluntary contributions on a date less than twelve months before his or her Normal Retirement Date, on terms
agreed between the Member and the Trustees subject to a minimum rate decided by the Trustees from time to time. If a Member wishes to commence paying additional voluntary contributions or change the amount that he or she pays or cease contributing,
he or she must give the Trustees one month’s written notice of this intention. 

  

	 	3.3.2  	A Member may continue to pay additional voluntary contributions to the Scheme in respect of Service after his or her Normal Retirement Date. These contributions shall
cease on the earlier of his or her actual retirement and his or her 75th birthday. 

  

	 	3.3.3  	A Member’s additional voluntary contributions will be deducted from his or her earnings on each pay date. The Employer will pay these contributions to the Trustees
at such intervals as the Trustees decide. 

  

	 	3.3.4  	The funds attributable to a Member’s additional voluntary contributions shall be used to provide additional money purchase benefits in respect of the Member.

  

	 	3.3.5  	The amount of additional voluntary contributions that can be paid by a Member of the Scheme is not subject to an upper limit. The Trustees have an absolute discretion
regarding the application of a Member’s additional voluntary contributions under the Rules. Any additional benefits secured by a Member’s voluntary contributions may be taken as cash. 

 

	 	3.3.6  	The Trustees shall invest the voluntary contributions of a Member so that the Trustees can at all times identify the contributions and any investment additions to them
and any deductions from them. C Rule 6.2 (Investment of Scheme assets) shall apply to the investment of a Member’s voluntary contributions in the same way as it applies to the investment of the remainder of the Fund. The assets of the
Fund which represent voluntary contributions and the income arising from them shall be treated as a separate fund should the Scheme wind up in accordance with C Rule 14 (Winding-up) and shall not be available for the general purposes of the
Scheme. 

  
 15 

	4.	Active Members’ immediate pensions 

 This Rule sets out the terms governing the calculation of pensions for active members who retire from service with an immediate pension. 

 

	4.1	Pension on retirement at Normal Retirement Date 

  

	 	4.1.1  	A Member who retires from Service at Normal Retirement Date and who was in Pensionable Service on the day before that date is entitled to an immediate annual pension at
a yearly rate of l/60th of Final Pensionable Salary for each complete year of Pensionable Service, subject to a maximum of 40 years, plus an additional proportion for each additional complete month of Pensionable Service. 

 

	 	4.1.2  	The Pensionable Service of a Member who for any period has been in part-time employment shall be treated as reduced during this period in the same proportion which the
number of hours he or she works each week under his contract of employment bears to the number of hours a comparable Employee (in the opinion of the Employer) would work under a full-time contract of employment. 

 

	 	4.1.3  	If a Member has been in part-time employment during any period by reference to which his or her Final Pensionable Salary is calculated, his Final Pensionable Salary
shall be increased either in the same proportion which the number of hours a comparable Employee would work under a full-time contract of employment bears to the number of hours the Member works under his contract of employment or on another basis
which the Trustees decide is fair. 

  

	4.2	Pension on early retirement 

  

	 	4.2.1  	A Member may retire from Service before his or her Normal Retirement Date if he or she is aged 50 (or age 55 from 6 April 2010) or more or at any time if he or she
is suffering from an Incapacity. Subject to the Contracting-out Laws and with the consent of the Employer and the Trustees the Member shall be entitled to receive an immediate annual pension as an alternative to any benefit payable.

  

	 	4.2.2  	Any Member wishing to retire early under the provisions of this FS Rule 4.2 (Pension on early retirement) shall, before he or she retires, inform the Trustees in
writing that he wishes his retirement benefits to become payable on his retirement. 

  
 16 

	 	4.2.3  	A pension payable under this FS Rule 4.2 (Pension on early retirement) shall, to the reasonable satisfaction of the Trustees after obtaining the advice of the
Scheme Actuary, be at least equal in value on the date it starts to be paid to the deferred pension which would be payable at the Member’s Normal Retirement Date, taking into account the Preservation, Contracting-out and Revaluation Laws. The
pension may, if necessary, be restricted to ensure that a pension of not less than the Member’s GMP, or the pension (if any) that must be paid in accordance with the Contracting-out Laws, is payable from State Pension Age. The Trustees may pay
a smaller pension before State Pension Age if they are satisfied after obtaining the advice of the Scheme Actuary that the benefits payable are at least equal in value to the benefits which would have been payable if the above condition did not
apply. If payment of an immediate pension is not possible because of this condition, the Member shall be entitled to a deferred pension under FS Rule 5 (Benefits for Deferred Members). 

 

	4.3	Early retirement not due to Incapacity 

  

	 	4.3.1  	Subject to FS Rule 4.2 (Pension on early retirement), a Member who retires from Service on or after his or her 50th birthday (or 55 age from 6 April 2010)
and before his or her Normal Retirement Date other than as a result of Incapacity is entitled to an immediate annual pension. The pension will be equal to that which he or she would otherwise have been entitled to under FS Rule 4.1 (Pension
on retirement at Normal Retirement Date), calculated on his or her Final Pensionable Salary and his or her Pensionable Service completed at the date of his or her actual retirement, but reduced by an amount determined by the Trustees, and certified
by the Scheme Actuary as reasonable, in respect of the period between the date of his or her actual retirement and his or her Normal Retirement Date. 

  

	4.4	Pension on Incapacity retirement 

  

	 	4.4.1  	Subject to FS Rule 4.2 (Pension on early retirement) and this FS Rule 4.4 (Pension on Incapacity retirement), a Member who leaves Service at any time
before Normal Retirement Date because of Incapacity is entitled to an immediate annual pension. Before they can agree to the pension being paid, the Trustees must have received evidence from a registered medical practitioner that the Member is (and
shall continue to be) incapable of carrying on his or her occupation because of physical or mental impairment. 

  

	 	4.4.2  	 A pension payable under this FS Rule 4.4 (Pension on Incapacity retirement) will be equal to the pension to which he or she would otherwise have
been entitled to under FS Rule 4.1 (Pension on retirement at Normal Retirement Date) had the date of his or her 

  
 17 

	 	
actual retirement been his or her Normal Retirement Date, calculated on his or her Final Pensionable Salary at the date of his or her actual retirement and his or her prospective Pensionable
Service up to his or her Normal Retirement Date, but reduced by an amount determined by the Trustees, and certified by the Scheme Actuary as reasonable, in respect of the period between the date of his or her actual retirement and his or her Normal
Retirement Date. 

  

	 	4.4.3  	Early retirement on pension on grounds of Incapacity, and the continuing payment of the early retirement pension, shall be subject to the production of such medical
evidence as the Trustees reasonably consider to be satisfactory proof that the Member is Incapacitated. 

  

	 	4.4.4  	If the health of an Incapacitated Member improves before Normal Retirement Date, the Trustees may decide that, in their opinion and after taking advice from qualified
medical examiners, the Member is no longer Incapacitated. In this event and subject to the Contracting-out Laws, the Trustees may, after obtaining the advice of the Scheme Actuary, reduce the pension in payment to the Member or stop further pension
payments to him or her until his Normal Retirement Date. 

  

	 	4.4.5  	In this event, the pension payable to the Member from his or her Normal Retirement Date will not be less than the deferred pension to which he or she otherwise would
have been entitled had he or she been a Qualified Member at the date he or she retired from Service but reduced by an amount determined by the Trustees, and certified by the Scheme Actuary as reasonable, in relation to the pension payments and other
benefits paid to him or her from the Scheme before his or her Normal Retirement Date. 

  

	4.5	Pension on late retirement 

  

	 	4.5.1  	Subject to the Contracting-out Laws, a Member who stays in Service after Normal Retirement Date will be entitled to an immediate annual pension when he or she leaves
Pensionable Service. If the Member’s retirement is after he or she reaches age 75, his or her pension must start to be paid from his or her 75th birthday. The pension shall be equal to the pension to which he or she would otherwise have been
entitled to under FS Rule 4.1 (Pension on retirement at Normal Retirement Date) had the date of his or her actual retirement been his or her Normal Retirement Date, increased by an amount determined by the Trustees on the advice of the Scheme
Actuary in respect of the period between the Member’s Normal Retirement Date and his or her actual date of retirement. 

  
 18 

	 	4.5.2	During any period of Service after a Member’s Normal Retirement Date which is treated as Pensionable Service, the Member shall pay any contributions required to be
paid to the Scheme under FS Rule 3.2 (Members’ basic contributions). A Member may continue to pay any voluntary contributions under FS Rule 3.3 (Members’ additional voluntary contributions) during any period of Service after
Normal Retirement Date. Contributions will cease on the earlier of his or her date of actual retirement and his or her 75th birthday. 

  

	 	4.5.3	If payment of a Member’s pension is deferred beyond State Pension Age, the Member shall for the purposes of the Scheme be treated as retiring on the 5th
anniversary of his or her attainment of State Pension Age, unless by that date he or she has retired or unless he or she consents to the payment of his or her pension being further deferred. 

 

	 	4.5.4	If a Member dies during Service after Normal Retirement Date, he or she is treated as having retired on the day before his or her death. The appropriate provisions of
FS Rule 7.1 (Benefits on death in Pensionable Service before Normal Retirement Date) and FS Rule 7.7 (Dependant’s pension) relating to death in retirement then apply. 

 

	 	4.5.5	This FS Rule 4.5 (Pension on late retirement) does not apply to a Member who has treated his or her Pensionable Service in accordance with FS Rule 2.2
(Opting-out), except to the extent which applies under this FS Rule 4 (Active Members’ immediate pensions). 

  
 19 

	5.	Benefits for Deferred Members 

 This Rule sets out the terms on which Members become deferred members, and for the payment of benefits to members who become deferred members on or after the effective date of these Rules. 

 

	5.1	Leaving the Scheme 

  

	 	5.1.1	A Member shall be treated as having left Pensionable Service for the purposes of these Rules when he or she, before his or her Normal Retirement Date:

  

	 	5.1.1.1  	leaves Service and is not entitled to, or does not receive, an immediate pension; 

 

	 	5.1.1.2  	ceases to satisfy the Scheme’s eligibility conditions; 

  

	 	5.1.1.3  	opts out of Pensionable Service by giving not less than one month’s notice in writing to the Trustees; or 

 

	 	5.1.1.4  	is otherwise treated as if he or she had left Pensionable Service under any other provision in the Rules. 

 

	 	5.1.2	If a Member is treated as having left Pensionable Service and later rejoins the Scheme, each period of Pensionable Service shall be treated separately, unless the
Principal Employer and Trustees agree otherwise, 

  

	5.2	Cash transfer sums and contribution refunds 

  

	 	5.2.1	If a Member leaves Pensionable Service before Normal Retirement Date without satisfying the ‘three month condition’ (as defined in section 101AA(2) of
the Pension Schemes Act 1993), the Trustees shall pay the Member a contribution refund excluding investment return and interest (less tax at the appropriate rate). 

 

	 	5.2.2	If a Member who satisfies the ‘three month condition’ leaves Service before Normal Retirement Date with less than ‘2 years’ Qualifying
Service’ (as defined in section 71(7) of the Pension Schemes Act 1993), the Trustees must notify him or her on the terms described in Chapter 5 of Part IV of the Pension Schemes Act 1993 about his or her options to take a cash transfer sum
or contribution refund within a reasonable period after the Member leaves Service. If the Member does not choose a cash transfer sum within the period notified by the Trustees to the Member, the Trustees shall pay the Member a contribution refund
(less tax at the appropriate rate). 

  
 20 

	 	5.2.3	Any cash transfer sum or contribution refund paid in respect of a Member under this FS Rule 5.2 (Cash transfer sums and contribution refunds) must comply with
the requirements of Chapter 5 of Part IV of the Pension Schemes Act 1993 and with the requirements of the Finance Act 2004. 

  

	5.3	Preserved pension at Normal Retirement Date 

  

	 	5.3.1	A Member who leaves Pensionable Service before Normal Retirement Date with at least 2 years’ Qualifying Service (as defined in section 71(7) of the Pension Schemes
Act 1993) shall receive a pension from Normal Retirement Date. The pension shall be calculated in accordance with FS Rule 4.1 (Pension on retirement at Normal Retirement Date), based on the Member’s Pensionable Service to the date of
leaving Pensionable Service and the Member’s Final Pensionable Salary at the date of leaving Pensionable Service. 

  

	 	5.3.2	The pension (in excess of the GMP) shall then be increased before payment in accordance with the Revaluation Laws and the GMP shall be increased in accordance with the
Contracting-out Laws. 

  

	5.4	Other options for the payment of preserved pension 

  

	 	5.4.1	A Member who becomes entitled to a pension under FS Rule 5.3 (Preserved pension at Normal Retirement Date) on leaving Pensionable Service may choose:

  

	 	5.4.1.1  	to apply the Cash Equivalent of his or her benefits to buy one or more annuities, or to acquire rights under another pension scheme or arrangement, in accordance with
the Transfer Value Laws; 

  

	 	5.4.1.2  	by informing the Trustees in writing, to commence receiving it before Normal Retirement Date (but not before reaching Minimum Pension Age, unless the Member is
suffering from Incapacity). The pension shall be reduced for early payment by an amount determined by the Trustees on a basis certified by the Scheme Actuary; 

 

	 	5.4.1.3  	to commence receiving it after Normal Retirement Date, if the Trustees and Principal Employer agree. The pension shall be increased for late payment by an amount
determined by the Trustees on a basis certified by the Scheme Actuary; or 

  
 21 

	 	5.4.1.4  	to exchange pension for a lump sum or Dependant’s pension as described in FS Rule 6.1 (Exchanging for a retirement lump sum) and FS Rule 6.2
(Exchanging for a Dependant’s pension). 

  

	 	5.4.2	The Trustees must receive advice from the Scheme Actuary that the benefits for a Member who chooses any of the options under this FS Rule 5.4 (Other options for
the payment of preserved pension) are at least equal in value to the benefits that would otherwise have been provided for the Member under the Scheme. 

  
 22 

	6.	Exchanging pension for other benefits 

 This Rule sets out the terms on which active and deferred members may exchange pension for either a cash lump sum or a Dependant’s pension. 

 

	6.1	Exchanging for a retirement lump sum 

  

	 	6.1.1	A Member may exchange part of his or her pension for a lump sum, which shall be payable when the pension is due to commence. The Trustees may convert the Member’s
pension to lump sum on a basis agreed by the Trustees after considering advice from the Scheme Actuary. 

  

	 	6.1.2	The Member may choose the amount of his or her lump sum under this FS Rule 6.1 (Exchanging for a retirement lump sum), on the condition that it may not exceed
the maximum allowable as a pension commencement lump sum under Part 4 of the Finance Act 2004. 

  

	6.2	Exchanging for a Dependant’s pension 

  

	 	6.2.1	Subject to the consent of the Principal Employer and the Trustees, a Member may choose, by giving written notice to the Trustees, to reduce the pension that would be
payable to his Spouse or Dependant if he dies in Service by up to 50 per cent and, in exchange, to increase the amount of the lump sum that would be payable to the Spouse or Dependant on his death in Service. The Trustees will convert pension
to lump sum on such basis as they may determine after considering the advice of the Scheme Actuary and which is consistent with the Contracting-out Laws. 

  

	6.3	Payment of a lump sum on grounds of serious ill health 

  

	 	6.3.1	Provided that the requirements of paragraph 4 of Schedule 29 to the Finance Act 2004 are met, the Trustees may pay a Member the whole of his or her benefits as a lump
sum. This shall extinguish the Member’s entitlement under the Scheme except that the Trustees shall retain the required amount of any contracted-out rights to purchase a pension for any widow, widower or surviving Civil Partner as required
under the Contracting-out Laws. 

  
 23 

	7.	Benefits payable on the death of a Member 

 This Rule sets out the terms on which lump sums for beneficiaries and pensions for Spouses and Children are paid in respect of Members when they die. 

 

	7.1	Benefits on death in Pensionable Service before Normal Retirement Date 

 

	 	7.1.1  	If a Member dies in Pensionable Service before his or her Normal Retirement Date, a lump sum and a pension shall be payable immediately to his or her Spouse.

  

	 	7.1.2  	For a Death Benefit Member the lump sum shall be equal to the sum of 2 times the Member’s Final Pensionable Salary. 

 

	 	7.1.3  	For a Pension Member the lump sum shall be equal to the sum of 4 times the Member’s Pensionable Salary plus his or her Member Contributions (excluding interest)
paid up to the date of his or her death plus the value of his or her additional voluntary contributions. 

  

	 	7.1.4  	For a Pension Member a pension is immediately payable to his or her Spouse equal to two thirds of the pension to which the Pension Member would have been entitled under
FS Rule 4.1 (Pension on retirement at Normal Retirement Date) at his or her Normal Retirement Date had he or she continued in Pensionable Service until that date and had his or her Final Pensionable Salary remained as it was at his or her
date of death. 

  

	 	7.1.5  	A pension payable under this FS Rule 7.1 (Benefits on death in Pensionable Service before Normal Retirement Date) to a Pension Member’s widow or widower
shall not be less than the widows or widower’s GMP, or the pension (if any) that must be paid in accordance with the Contracting-out Laws. 

  

	 	7.1.6  	Any lump sum or pension payable under this FS Rule 7.1 (Benefits on death in Pensionable Service before Normal Retirement Date) is subject to FS sub-rules
7.5.2 to 7.5.6 of FS Rule 7.5 (Payment of lump sums on death) or FS Rule 7.6 (Payment of Spouse’s pension on death) respectively. 

  

	7.2	Benefits on death on or after Normal Retirement Date before pension is in payment 

 

	 	7.2.1  	If a Pension Member or a Deferred Member dies on or after his or her Normal Retirement Date and before the start of his or her pension under the Scheme, a pension is
payable immediately to his or her Spouse and a lump sum is payable equal to five times the annual pension that would have been paid to him or her had he or she retired on the day immediately before the date of his or her death excluding any
increases which would have applied to his or her pension under FS Rule 9 (Pension increases). 

  
 24 

	 	7.2.2  	The pension is equal to two thirds of the annual pension to which the Member would have been entitled had he or she retired on the day before his or her death.

  

	 	7.2.3  	A pension payable under this FS Rule 7.2 (Benefits on death on or after Normal Retirement Date before pension is in payment) to a Pension Member’s widow or
widower shall not be less than the widows or widower’s GMP, or the pension (if any) that must be paid in accordance with the Contracting-out Laws. 

  

	 	7.2.4  	Any lump sum or pension payable under this FS Rule 7.2 (Benefits on death on or after Normal Retirement Date before pension is in payment) is subject to FS
sub-rules 7.5.2 to 7.5.6 of FS Rule 7.5 (Payment of lump sums on death) or FS Rule 7.6 (Payment of Spouse’s pension on death) respectively. 

 

	7.3	Benefits on death after pension commences 

  

	 	7.3.1  	If a Member dies while receiving a pension, a pension is payable immediately to his or her Spouse, and a lump sum is payable if the Member dies within 5 years of the
date his or her pension commences. 

  

	 	7.3.2  	If the lump sum is payable under this FS Rule 7.3 (Benefits on death after pension commences), it shall be equal to the total of the pension payments which would
have been made to the Member during the remainder of the 5 year period if the Member had not died (but disregarding any future increases). 

  

	 	7.3.3  	A Member may, by notice in writing to the Trustees, choose for a lump sum payable under this FS Rule 7.3 (Benefits on death after pension commences) to be
treated as a pension protection lump sum, in accordance with paragraph 14 of Schedule 29 to the Finance Act 2004. 

  

	 	7.3.4  	A pension payable under this FS Rule 7.3 (Benefits on death after pension commences) shall be equal to two thirds of the pension to which the Member would have
been entitled at the date of his or her retirement before: 

  

	 	7.3.4.1  	any exchange for a lump sum; or 

  

	 	7.3.4.2  	any exchange for a Dependant’s pension; 

  
 25 

 as increased (if at all) in respect of the period between the date the first installment of
the Member’s pensions feel due and the date of his or her death. 
  

	 	7.3.5  	Any lump sum or pension payable under this FS Rule 7.3 (Benefits on death after pension commences) is subject to FS sub-rules 7.5.2 to 7.5.6 of
FS Rule 7.5 (Payment of lump sums on death) or FS Rule 7.6 (Payment of Spouse’s pension on death) respectively. 

  

	 	7.3.6  	If a lump sum becomes payable under this FS Rule 7.3 (Benefits on death after pension commences) in respect of a Member aged 75 or more, the Trustees may decide
not to pay the lump sum and to increase the value of the pension payable in respect of that Member by an amount equal to the lump sum instead. 

  

	7.4	Benefits on death of a Deferred Member after leaving Pensionable Service 

 

	 	7.4.1  	If a Deferred Member dies before his or her Normal Retirement Date (whether or not still in Service) and before the start of his or her deferred pension to which he or
she is entitled under FS Rule 5 (Benefits for Deferred Members), his widow or widower is entitled to an immediate pension equal to two thirds of the deferred pension to which the Member would have been entitled had the Member retired on the
day before his or her date of death. 

  

	 	7.4.2  	If a Deferred Member dies before his or her Normal Retirement Date (whether or not still in Service) and before the start of his or her deferred pension to which he or
she is entitled under FS Rule 5 (Benefits for Deferred Members), a lump sum is payable equal to the sum of the Member’s contributions to the Scheme (excluding interest) and the value of any additional voluntary contributions.

  

	 	7.4.3  	Any lump sum or pension payable under this FS Rule 7.4 (Benefits on death of a Deferred Member after leaving Pensionable Service) is subject to FS sub-rules
7.5.2 to 7.5.6 of FS Rule 7.5 (Payment of lump sums on death) or FS Rule 7.6 (Payment of Spouse’s pension on death) respectively. 

 

	7.5	Payment of lump sums on death 

  

	 	7.5.1  	On the death of a Deferred Member who has left Service but has not retired on pension, the Trustees shall pay any lump sum death benefit payable under the Scheme to the
Member’s legal personal representatives, subject to FS sub-rule 7.5.5. 

  
 26 

	 	7.5.2  	Subject to FS sub-rule 7.5.1, the Trustees shall pay or apply any lump sum death benefit which becomes payable under the Scheme on the death of a Member on the
following trusts and subject to the following powers: 

  

	 	7.5.2.1  	during the period of 2 years from the death of a Member the Trustees shall have power to pay or apply the whole or any part of the lump sum death benefit to or for the
benefit of all or any one or more of the Member’s Beneficiaries and his or her legal personal representatives in such shares and proportions as the Trustees may in their absolute discretion decide; 

 

	 	7.5.2.2  	in exercising the power in FS sub-rule 7.5.2.1 the Trustees shall, during the 2 year period, have power to transfer the whole or any part of the lump sum death
benefit to the trustees of a separate trust for the benefit of all or any one or more of the Member’s Beneficiaries (a Member’s “Beneficiaries” for these purposes are the Member’s widow or widower; the Member’s
grandparents and their descendants and the Spouses of those descendants; the Member’s Dependants; any person with an interest in the Member’s estate (but not including the Crown, the Duchy of Lancaster or the Duke of Cornwall); and any
person nominated by the Member in writing to the Trustees), and with and subject to (without infringing the rule against perpetuities) such powers of appointment and such other discretionary trusts and powers (exercisable by the trustees of the
separate trust or by any other person), and such provisions for maintenance, education, advancement and accumulation of income during a minority, as the Trustees may in their absolute discretion think fit. The Trustees shall have power themselves to
declare any such separate trust and to appoint as trustees or trustee of that trust any two persons or a corporate body, whether or not it is a Trust Corporation as defined in Section 68 of the Trustee Act 1925, as the Trustees may decide and
to provide for the remuneration of such trustees or trustee; 

  

	 	7.5.2.3  	in exercising any of the powers in FS sub-rule 7.5.2.1 and FS sub-rule 7.5.2.2 the Trustees may (but shall not be bound to) have regard to any wishes that
the Member may have expressed in writing to the Trustees regarding 

	 	the application of any benefit to which this FS sub-rule 7.5.2.3 applies on his or her death; 

  
 27 

	 	7.5.2.4  	subject to FS sub-rule 7.5.2.1, at the expiry of the 2 year period any part of the lump sum death benefit which has not been paid, applied or transferred under
this FS sub-rule 7.5.2 shall be held by the Trustees separately from the Fund upon trust for the legal personal representatives of the Member or, if there are no such legal personal representatives, for the Member’s statutory next of kin
(on the basis that the Member died domiciled in England), subject to FS sub-rule 7.5.5. 

  

	 	7.5.3  	In exercising their discretion or in making any payment, application or transfer under this FS Rule 7 (Benefits payable on the death of a Member), the Trustees
may consult the Employer who last employed the Member before his or her death or with the Principal Employer. The Trustees may rely upon the Employer’s certificate that any person to whom or for whose benefit any amount is to be paid, applied
or transferred is a Beneficiary. In settling any benefits on a separate trust the Trustees may rely upon a solicitor’s certificate stating that the trusts upon which the benefits will be held are such that those benefits must be paid to, or
applied for the benefit of, one or more of the Beneficiaries. 

  

	 	7.5.4  	All or any expenses, fees, stamp duty or other costs incurred for the purpose of, or in connection with, any payment, application or transfer under this FS Rule
7 (Benefits payable on the death of a Member) (irrespective of how that payment, application or transfer is made) may, if the Trustees so decide, be deducted from or paid out of the benefits payable under this FS Rule 7 (Benefits payable
on the death of a Member). 

  

	 	7.5.5  	If any payment under this FS Rule 7 (Benefits payable on the death of a Member) would result in any part of the lump sum death benefit vesting in the Crown the
Duchy of Lancaster or the Duke of Cornwall as bona vacantia or in a creditor, the Trustees may instead hold the benefit in the Scheme for the general purposes of the Scheme, 

 

	 	7.5.6  	Any lump sum payable under this FS Rule 7 (Benefits payable on the death of a Member) on the death of a Member who is receiving a pension from the Scheme is
payable in accordance with the provisions of this FS sub-rule 7.5.6, In the case of a Member receiving his or her pension who had retired before his or her Normal Retirement Date, or who had left Service before that date and was entitled to a
deferred pension under FS Rule 5 (Benefits for Deferred Members), the Trustees are not required to hold the lump sum separately from the Fund at the expiry of the 2 year period if they have not paid or applied the lump sum at that date.

  
 28 

	7.6	Payment of Spouse’s pension on death 

  

	 	7.6.1  	If a Member is survived by a Spouse, the Trustees shall pay the pension to the Spouse for life on the terms of this FS Rule 7 (Benefits payable on the death of a
Member). 

  

	 	7.6.2  	The amount of the Spouse’s pension shall be as set out in FS Rule 7.1 (Benefits on death in Pensionable Service before Normal Retirement Date) to FS Rule
7.4 (Benefits on death of a Deferred Member after leaving Pensionable Service) (as applicable) unless the Spouse was neither living with nor dependent on the Member at the date of the Member’s death. If this happens, the Trustees may
instead decide not to pay some or all of the pension to the Spouse (other than any pension payable to the Spouse under the Contracting-out Laws). 

  

	 	7.6.3  	If the marriage took place after the Member left Pensionable Service or after retiring any pension payable on the Member’s death may be reduced at the discretion
of the Trustees except to the extent that it relates to any GMP or Reference Scheme Pension payable to the Spouse under the Contracting-out Laws. 

  

	 	7.6.4  	If a Member dies within six months of his or her marriage, his or her widow or widower shall not be treated as the Member’s Spouse unless the Trustees, with the
consent of the Principal Employer, decide otherwise. 

  

	 	7.6.5  	If the Trustees decide in accordance with this FS Rule 7.6 (Payment of Spouse’s pension on death) to pay a Spouse no (or a reduced) pension, the Trustees
may instead pay a pension to any of the Member’s Dependants equal in aggregate to the balance of the Spouse’s normal pension (or less). 

  

	 	7.6.6  	Where a Member dies leaving more than one surviving Spouse, the Spouse’s pension shall be paid to one or more of them in such shares as the Trustees decide
(subject to the Contracting-out Laws). 

  

	 	7.6.7  	The Trustees may, subject to the following conditions, allow a Spouse or Dependant to exchange pension for a lump sum. The conditions are that:

  

	 	7.6.7.1  	the Trustees may impose such terms for the exchange as they consider appropriate; 

  
 29 

	 	7.6.7.2  	the Trustees shall convert pension into a lump sum on an actuarial basis which they decide (after consulting the Scheme Actuary); 

 

	 	7.6.7.3  	the Spouse’s pension must comply with the requirements of the Contracting-out Laws. 

 

	7.7	Dependant’s pension 

  

	 	7.7.1  	Subject to the Contracting-out Laws a Member may, with the consent of the Trustees, elect to surrender part of his or her pension to provide an annual pension payable
on his or her death to one or more of his or her Dependants as he or she nominates. The Trustees, after obtaining the advice of the Scheme Actuary, shall determine the amount of each Dependant’s pension and the amount of pension remaining
payable to the Member. 

  

	 	7.7.2  	A Dependant’s pension provided under this FS Rule 7 (Benefits payable on the death of a Member) is subject to the further provisions of this FS Rule
7 (Benefits payable on the death of a Member) and is payable in accordance with FS Rule 7.6 (Payment of Spouse’s Pension on death). 

  

	 	7.7.3  	A Dependant’s pension shall not: 

  

	 	7.7.3.1  	be less than the Trivial Pension Limit; or 

  

	 	7.7.3.2  	when aggregated with any other Dependant’s pension payable under this FS Rule 7 (Benefits payable on the death of a Member), be more than the Member’s
pension remaining after the Member exercises this option but before he or she exercises any option to exchange part of his or her pension for a cash sum under FS Rule 6.1 (Exchanging for a retirement lump sum); or 

 

	 	7.7.3.3  	be so large as to cause the Member’s remaining pension to be less than the Member’s GMP, or the pension (if any) that must be paid to him or her in accordance
with the Contracting-out Laws. 

  

	 	7.7.4  	If the Member dies before his or her pension becomes payable under the Rules, any election made by him or her under FS sub-rule 7.7.1 is cancelled and treated as
not having been made. 

  
 30 

	 	7.7.5  	If a Member makes an election under FS sub-rule 7.7.1, he or she may at any time cancel that election and make another election provided that, in either case,
his or her retirement benefits have not become payable under the Rules. 

  

	 	7.7.6  	If a nominated Dependant dies or ceases to qualify as a Dependant before the Member’s pension becomes payable under the Rules, the election made by the Member
under FS sub-rule 7.7.1 is cancelled and is treated as not having been made. The Member may then make another election under FS sub-rule 7.7.1 before his retirement. 

 

	 	7.7.7  	If a nominated Dependant dies or ceases to qualify as a Dependant after the Member’s pension becomes payable under the Rules but before the Member’s death, no
benefit is payable in respect of that Dependant. The Member will remain entitled only to that part of his or her pension which he or she did not surrender under FS sub-rule 7.7.1. 

 

	 	7.7.8  	An election under this FS Rule 7.7 (Dependant’s Pension) must be made by the Member in writing to the Trustees in the form they require at least 1 month (or
such other period as the Trustees decide) before the date on which the first installment of the Member’s pension is payable. 

  

	7.8	Children’s pension 

  

	 	7.8.1  	If the Member is survived by a Child, and either no pension is payable under FS Rule 7.1 (Benefits on death in Pensionable Service before Normal Retirement Date)
or FS Rule 7.3 (Benefits on death after pension commences) or any Spouse’s or Dependant’s pension stops while there is still a Child, the Trustees shall pay the pension to (or for the benefit of) the Child (or Children as
applicable). The Trustees shall decide from time to time how to divide the pension between more than one Child. 

  

	 	7.8.2  	Any pensions paid under this FS Rule 7.8 (Children’s pension) are only payable for so long as the person satisfies the requirements of the definition of
‘Child’ (see FS Rule 1 (Meaning of defined terms)). 

  

	7.9	Young Spouse 

  

	 	7.9.1  	 If the Spouse was more than 10 years younger than the Member, the Spouse’s pension shall be reduced for each complete year (and in proportion for
each complete month) by which the Spouse is more than 10 years younger than the Member. The reduction shall be determined by the Trustees on a basis which is certified by the Scheme Actuary as

  
 31 

	 	
reasonable but shall not be greater than a fixed rate of 2.5% for each year of age disparity in excess of 10 years. Any pension payable to a Member’s widow or widower shall not be reduced to
an amount less than the widow or widower’s GMP and the pension (if any) must be paid to him or her in accordance with the Contracting-out Laws. 

  
 32 

	8.	Terms for the payment of benefits 

 This Rule sets out how often benefits are paid, and the terms for reducing or stopping the payment of benefits in certain circumstances (such as where benefits are insured or where a Member provides
inaccurate information). 
  

	8.1	Frequency of pension payment 

  

	 	8.1.1  	Pensions are payable monthly in arrears or on any other basis which the Trustees decide. 

 

	 	8.1.2  	If any amount of pension paid to a Member or other beneficiary exceeds his or her entitlement the Trustees may, subject to the Contracting-out Laws:

  

	 	8.1.2.1  	deduct the amount overpaid from any future payment due to the Member or beneficiary or due to any other person who derives his entitlement to benefit through the Member
or beneficiary; or 

  

	 	8.1.2.2  	recover the amount overpaid at any time from the Member or beneficiary to whom it was paid. 

 

	8.2	Manner of payment of benefits 

  

	 	8.2.1  	The Trustees may pay benefits to any person entitled to them by any method the Trustees consider appropriate. 

 

	 	8.2.2  	All payments will be in Pounds Sterling unless the Trustees decide otherwise in any particular case. 

 

	8.3	Incapable beneficiary 

  

	 	8.3.1  	If a person entitled to a benefit is a minor, or is suffering (in the opinion of the Trustees) from any incapacity making the person unable to manage his or her affairs
or to give a proper receipt, the Trustees may, subject to the Contracting-out Laws, pay the whole or part of the benefit to anyone whom they consider a proper person to receive it on his or her behalf or the Trustees may apply the whole or part of
the benefit upon trust subject to such terms as the Trustees decide from time to time and at any later date pay the amount due to the person concerned or to any other person selected by the Trustees for his or her benefit. 

 

	 	8.3.2  	The Trustees may also, for the relevant person, make any choice that he or she has under the Scheme. 

  
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	8.4	Reduction of benefits for the payment of tax 

  

	 	8.4.1  	Where a payment under the Rules of the Scheme gives rise to a tax charge, the Trustees may make the payment less any amount required to meet the tax charge.

  

	 	8.4.2  	The Trustees may recover from a Member’s present or future benefits or entitlements under the Scheme, any amount for which the Trustees are liable in respect of
the lifetime allowance charge under section 215 of the Finance Act 2004. 

  

	 	8.4.3  	The Trustees may reduce the Member’s present or future benefits or entitlement under the Scheme in respect of which the lifetime allowance charge arises so as to
reflect the amount of tax paid by the Trustees. 

  

	8.5	Information from Members and others 

  

	 	8.5.1  	If a Member, or the recipient of death benefits, has provided a declaration that is incorrect, the Trustees may with the consent of the Employer modify or restrict the
benefits provided for or in respect of the Member as the Trustees shall decide or vary the terms of the Member’s membership of the Scheme in any way they consider appropriate, including discontinuing the Member’s membership of the Scheme
as if he or she were leaving Service. 

  

	 	8.5.2  	The Trustees shall notify the Member of writing of any decision taken under this FS Rule 8.5 (Information from Members and others). 

 

	 	8.5.3  	The Trustees may charge a Member such amount as they shall determine for the provision of information (including information regarding a Member’s benefits) to the
Member. 

  

	8.6	Enhanced protection 

  

	 	8.6.1  	No further ‘relevant benefit accrual’ as defined in paragraph 13 of Schedule 36 to the Finance Act 2004 shall accrue to a Member to whom the enhanced
protection conditions described in paragraph 12 of that Schedule apply. 

  

	8.7	Modification Regulations 

  

	 	8.7.1  	The FS Rules incorporate all of the modifications in regulations 3 - 8 of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations
2006 (the “Modification Regulations”), but without limitation to the “transitional period” as defined in the Modification Regulations. 

  
 34 

	9.	Pension increases 

 This
Rule sets out the terms for increasing pensions in payment in respect of Members whose pensions commence to be paid on or after the effective date of these Rules. 
  

	9.1	Periods of review 

  

	 	9.1.1  	The Trustees will each year review the pensions in payment under the Final Salary Section and will increase such part of each pension which exceeds the GMP, and the
pension (if any) that must be paid to a Member in accordance with the Contracting-out Laws, each year by a percentage (which may be nil) as the Trustees, with the agreement of the Principal Employer shall determine, the rate of increase being such
as will not prejudice the Scheme’s status as a registered scheme under the Finance Act 2004. 

  

	9.2	The rates of increase 

  

	 	9.2.1  	Pensions payable under the Final Salary Section which are attributable to Pensionable Service on or after 5 April 1997 (and not provided by a Member’s
additional voluntary contributions) shall be increased in accordance with the Contracting-out Laws and at least at the intervals and-by the percentage required by Section 51 to 54 of the Pensions Act 1995. 

 

	 	9.2.2  	Pensions payable under the Final Salary Section which are attributable to Pensionable Service before 5 April 1997 will be increased in accordance with the
Contracting-out Laws and the subsequent provisions of this FS Rule 9.2 (The rates of increase). 

  

	 	9.2.3  	A Member’s GMP, and the pension (if any) that must be paid to him or her in accordance with the Contracting-out Laws, will increase in each year by the increase
specified in any order made by the Secretary of State under Section 109 of the Pension Schemes Act 1993. 

  

	 	9.2.4  	Such part of any pension which exceeds the GMP, and the pension (if any) that must be paid to a Member in accordance with the Contracting-out Laws, will increase In
payment each year by: 

 (i) 5% per annum compound or the rate of increase in the Index if less to the extent
that the pension relates to Pensionable Service before 6 April 2006; and 
 (ii) 2.5% per annum compound or the rate of
increase in the Index if less to the extent that the pension relates to Pensionable Service on or after 6 April 2006. 

  
 35 

 Any GMP, and the pension (if any) that must be paid to a Member in accordance with the
Contracting-out Laws, which is in payment, shall be increased each year in accordance with the Contracting-out Laws. 
  

	9.3	General Provisions 

  

	 	9.3.1  	A pension shall be increased under this FS Rule 9 (Pension increases) on the Renewal Date next following the date when the pension starts to be paid and on each
subsequent Renewal Date. 

  

	 	9.3.2  	Any pension payable under the Scheme which derives from: 

  

	 	9.3.2.1  	the application of a Member’s AVC Account; 

  

	 	9.3.2.2  	the provision of a pension under C Rule 10 (Discretionary benefits and flexible retirement); 

 

	 	9.3.2.3  	the surrender of part of a Member’s pension under FS Rule 6.2 (Exchanging for a Dependant’s pension); and 

 

	 	9.3.2.4  	a Transfer Amount accepted from a Former Scheme under FS Rule 12 (Transfers to and from the Final Salary Section); 

shall not be increased in accordance with this FS Rule 9 (Pension increases), unless the Member or Employer had agreed with the
Trustees (or the Trustees had otherwise decided) that the pension (or part of it) is to be subject to the increases under this FS Rule 9 (Pension increases). 
  

	 	9.3.3  	If, at any Renewal Date, a pension has been in payment for less than a year, it will be increased at a rate calculated on a proportionate basis by reference to the
number of complete months for which payment of the pension has been made. 

  

	 	9.3.4  	Any pension increases payable under this FS Rule 9 (Pension increases) shall be paid with the normal installments of pension and will end when the normal
installments cease to be paid. 

  

	9.4	If the Principal Employer agrees and the Employer pays any additional contributions which the Trustees decide are appropriate (after consulting the Scheme Actuary), the
Trustees may provide: 

  

	 	9.4.1  	increased or additional benefits in respect of any Member; 

  

	 	9.4.2  	different benefits in respect of a Member, or on different terms, from those set out in the other provisions of the Rules; or 

  
 36 

	 	9.4.3  	benefits in respect of any other person for whom benefits can be provided under the Scheme (including any Employee or former Employee). 

 

	 	9.4.4  	Benefits provided under this FS sub-rule 9.4 shall be consistent with the Preservation, Revaluation, Contracting-out and Transfer Value Laws and the
Scheme’s tax status as a registered pension scheme under the Finance Act 2004. 

  
 37 

	10.	Special benefits 

 This
Rule sets out the terms that apply to Members who have benefits and/or contributions provided for them under the Scheme on a different basis to that set out elsewhere in the Rules. 

 

	10.1	Civil Partners 

  

	 	10.1.1  	With effect on and from 5 December 2005, references in this Scheme to a “Spouse” or an “ex-spouse” shall include a Civil Partner or a former
Civil Partner, references to a widow or widower shall include a surviving Civil Partner, and references to marriage shall include Civil Partnership (as defined in the Civil Partnership Act 2004) and references to married shall be interpreted
accordingly. 

  

	 	10.1.2  	In relation to contracted-out rights this modification shall only apply to Pensionable Service post 6 April 1988, In relation to all other benefits it applies to
the entirety of a Member’s Pensionable Service. 

  

	10.2	Pre-6 April 2006 members 

  

	 	10.2.1  	The benefits payable to or in respect of Members who were still in Pensionable Service on 6 April 2006 and whose Final Pensionable Salary was uncapped on
5 April 2006, shall be subject to the following limits with effect on and from 6 April 2006: 

  

	 	10.2.1.1  	the Member’s Final Pensionable Salary for the purpose of determining the benefits payable in respect of the Member’s Pensionable Service before 6 April
2006 shall be limited to the greater of: 

  

	 	(i)	the Scheme Earnings Cap; and 

  

	 	(ii)	the Member’s Pensionable Salary on 5 April 2006 (increased annually on every 5 April by the percentage increase in the retail prices index during a
reference period determined by the Trustees). 

  

	 	10.2.1.2  	the Member’s Final Pensionable Salary for the purpose of determining the benefits payable to or in respect of the Member in respect of the Member’s
Pensionable Service on and after 6 April 2006 shall not exceed the Scheme Earnings Cap. 

  

	 	10.2.2  	The Basic Salary of Members of the Final Salary Section whose Basic Salary was uncapped on 5 April 2006 shall be limited, with effect from 6 April 2006, to
the Scheme Earnings Cap for the purpose of determining the contributions payable to the Scheme by the Member on and after 6 April 2006. 

  
 38 

	11.	Other ways of converting pension into a lump sum 

 This Rule sets out the terms on which a Member’s pension may be paid as a lump sum other than a tax-free cash sum on retirement. 

 

	11.1  	Trivial pension 

  

	 	11.1.1  	The Trustees may pay a Member the whole of his or her benefits as a lump sum in accordance with paragraph 7 of Schedule 29 to the Finance Act 2004 where the
Member’s benefits, together with all benefits due to the Member from all other registered pension schemes, is no more than 1% of the Standard Lifetime Allowance. 

 

	11.2  	Payment of a lump sum on grounds of serious ill health 

  

	 	11.2.1  	Provided that the requirements of paragraph 4 of Schedule 29 to the Finance Act 2004 are met, the Trustees may pay a Member the whole of his or her benefits as a lump
sum. This shall extinguish the Member’s entitlement under the Scheme except that the Trustees shall retain the required amount of any contracted-out rights to purchase a pension for any widow, widower or surviving Civil Partner as required
under the Contracting-out Laws. 

  

	11.3  	Benefits in excess of the lifetime allowance 

  

	 	11.3.1  	If a Member’s benefits exceed the lifetime allowance applicable to the Member under the Finance Act 2004, the Trustees may pay the excess to the Member as a
pension or as a Lifetime Allowance Excess Lump Sum. The lump sum will be calculated on such basis as the Trustees may determine after considering the advice of the Scheme Actuary, and which is consistent with the Contracting-out Laws.

  
 39 

	12.	Transfers to and from the Final Salary Section

  

	12.1  	Transfers to the Final Salary Section 

  

	 	12.1.1  	Subject to FS Rule 12.1.3 and to the Contracting-out Laws, the Trustees may accept from a Former Scheme a Transfer Amount in respect of any Member or other
person. 

  

	 	12.1.2  	The Trustees may give any relevant undertakings in respect of the Transfer Amount and shall provide such benefits under the Scheme for and in respect of the Member or
other person to whom the Transfer Amount relates as the Trustees shall determine on actuarial advice and with the consent of the Principal Employer. The benefits shall comply with the preservation and contracting-out requirements of the Pension
Schemes Act 1993 and be consistent with the Scheme’s status as a registered pension scheme under the Finance Act 2004. 

  

	 	12.1.3  	The Trustees may only accept a Transfer Amount under this FS Rule 12 (Transfers to and from the Final Salary Section) if: 

 

	 	12.1.3.1  	the Trustees are satisfied that the transfer is consistent with the Scheme’s status as a registered pension scheme under the Finance Act 2004;

  

	 	12.1.3.2  	HMRC has approved the first transfer to the Scheme if, at the time when it is to be accepted, the Scheme has not been approved as a registered pension scheme;

  

	 	12.1.3.3  	the transfer satisfies the requirements of the Pension Schemes Act 1993 and any regulations made under that Act relating to transfers and contracting-out; and

  

	 	12.1.3.4  	the Trustees comply with any undertaking given by them to HMRC. 

  

	 	12.1.4  	The Trustees may accept a Transfer Amount in respect of a member of a Former Scheme without his or her consent to the transfer. If that member had acquired a right to
the Cash Equivalent of the benefits which had accrued to him under the Former Scheme but had not exercised his options under that scheme, he acquires a right to the Cash Equivalent of that benefit. He may exercise his right to that Cash Equivalent
irrespective of whether or not his Pensionable Service under the Scheme has ended. 

  
 40 

	12.2  	Transfers out of the Final Salary Section 

 The Trustees may, with the consent of the Principal Employer and subject to the Contracting-out Laws and the restrictions in this FS Rule 12 (Transfers to and from the Final Salary Section), pay a
Transfer Payment in respect of a Relevant Person to a New Scheme. The Transfer Payment may be a cash sum or other assets as the Trustees decide. 
  

	12.3  	Statutory transfers 

 If a
Deferred Member has validly exercised a right to a Cash Equivalent under by requiring the Trustees to apply the Cash Equivalent to acquire transfer credits under a New Scheme, the Trustees shall make a Transfer Payment to the New Scheme if that
scheme agrees to accept it. If the Member is dividing his Cash Equivalent between different schemes, the Trustees shall transfer the parts of his Cash Equivalent as he directs. If the New Scheme cannot accept the Member’s GMP, or the pension
(if any) that must be paid in accordance with the Contracting-out Laws, the Trustees shall transfer that part of his Cash Equivalent which relates to benefits in excess of his GMP, or the pension (if any) that must be paid in accordance with the
Contracting-out Laws. 
  

	12.4  	Discretionary transfers 

If a Deferred Member or other Relevant Person does not have a right to a Cash Equivalent (or if he has a right, but has not exercised it)
the Trustees may, with the consent of the Principal Employer, make a Transfer Payment in respect of him to a New Scheme if that scheme agrees to accept it. 
  

	12.5  	Bulk transfers 

  

	 	12.5.1  	If the Pensionable Service of a group of Members ends and those Members become entitled to rights under a New Scheme, the Trustees may make a Transfer Payment (subject
to FS Rule 12.6) in respect of the group of Members to the New Scheme if that scheme agrees to accept it. The transfer may be made without the consent of the Members concerned if the New Scheme is a registered pension scheme under the Finance
Act 2004 and the conditions set out in Regulation 12 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (S.I. 1991/167) are satisfied. 

 

	 	12.5.2  	The Trustees may also make a Transfer Payment to scheme registered as a registered pension scheme under the Finance Act 2004 without the consent of the Members
concerned if the Scheme is being wound up and the New Scheme applies to employment with the same employer. 

  
 41 

	12.6  	The Transfer Payment referred to in FS Rule 12.5 (Bulk transfers) is the total of the Members’ Cash Equivalents or such other amount which the Trustees
after obtaining actuarial advice shall agree with the Principal Employer is relevant to the group of Members concerned, having regard to the provisions of C Rule 13.1 (Partial Termination of the Scheme) and C Rule 14 (Winding-up) and
to the portion of the Fund available for transfer. 

 In calculating the Transfer Payment, the Trustees, after
consulting the Scheme Actuary, may make an allowance for the costs and expenses which have been incurred in the administration and management of the Scheme in connection with the transfer. 

 

	12.7  	Before making a Transfer Payment under FS Rule 12.5 (Bulk transfers), the Scheme Actuary shall certify to the Trustees that the transfer credits acquired for the
Members concerned under the New Scheme are at least equal in value to the rights being transferred. 

  

	12.8  	General 

 The Trustees
shall comply, in relation to each transfer, with: 
  

	 	12.8.1  	HMRC requirements so that the Scheme’s status as a registered pension scheme is not prejudiced and with any undertakings given by the Trustees to HMRC;

  

	 	12.8.2  	the preservation requirements specified in or under Sections 69 to 82 of the Pension Schemes Act 1993 to the extent applicable; and 

 

	 	12.8.3  	the applicable requirements of the Pension Schemes Act 1993, relating to the transfer of accrued rights to a GMP, or a pension (if any) payable in accordance with the
Contracting-out Laws, or of any GMP, or Reference Scheme Pension, in payment and any other applicable requirements imposed by HMRC. 

  

	12.9  	The Transfer Payment shall be subject to the following conditions: 

  

	 	12.9.1  	the Trustees shall, if appropriate, find out from the New Scheme the Act and Section under which the New Scheme is registered; 

 

	 	12.9.2  	the Trustees shall certify to the New Scheme the amount of the Transfer Payment which represents the Member’s contributions and the Member’s AVC Account and
shall notify the New Scheme of any restriction placed on the refund of these amounts; 

  

	 	12.9.3  	the Trustees shall certify to the New Scheme the period of Qualifying Service to which the transfer relates and the maximum permitted cash sum commutation in respect of
the Transfer Payment; and 

  
 42 

	 	12.9.4  	unless the Transfer Payment is made under FS Rule 12.3 (Statutory transfers), the Trustees shall ensure that the Transfer Payment shall not be less than the
value of the benefits (or the relevant part of such benefits) accrued in respect of the Member under the Scheme. 

  

	12.10  	The Trustees may make a Transfer Payment in respect of a Member without his or her written consent only: 

 

	 	12.10.1  	in accordance with the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (SI 1991/167) and the Contracting-out Laws; and 

 

	 	12.10.2  	if they are reasonably satisfied that, at the date on which the Transfer Payment is made, it is at least equal to the value (as certified by the Scheme Actuary) of the
benefits which have accrued to or in respect of the Member under the Scheme, taking into account the Preservation, Contracting-out and Revaluation Laws. 

  

	12.11  	The receipt of the New Scheme in respect of the Transfer Payment shall, except as otherwise provided by statute, discharge the Trustees of all liability under the
Scheme to and in respect of the Relevant Person in respect of those benefits represented by the Transfer Payment. This discharge is in addition to and without prejudice to any other discharge given to the Trustees. The Trustees shall be under no
liability to the application of the Transfer Payment by the New Scheme. 

  

	12.12  	If a transfer under this FS Rule 12 (Transfers to and from the Final Salary Section) relates to a Member’s contracted-out employment under the Scheme, the
New Scheme is not contracted-out and the Member has not directed the Trustees to transfer his GMP, or a pension (if any) payable in accordance with the Contracting-out Laws, to another New Scheme, the Trustees may pay a transfer premium in
accordance with the Contracting-out Laws. 

  
 43 

	13.	Buy-out Policies 

  

	13.1  	Statutory buy-out 

 If a
Deferred Member has validly exercised a right to a Cash Equivalent by requiring the Trustees to apply the Cash Equivalent to purchase a Buy-out Policy, the Trustees shall, subject to the Contracting-out Laws and the restrictions in this FS Rule
13.1 (Statutory buy-out), pay the Member’s Cash Equivalent to the Insurance Company selected by the Member and from whom the Buy-out Policy is to be purchased. If the Member is dividing his or her Cash Equivalent between different Buy-out
Policies, the Trustees shall apply the parts of his or her Cash Equivalent as he or she directs. 
  

	13.2  	Discretionary buy-out 

Subject to the Contracting-out Laws, the Trustees may, with the consent of the Principal Employer, exercise their discretion and apply
this FS Rule 13.2 (Discretionary buy-out) in respect of a Member or other beneficiary of the Scheme if that person makes a written request to the Trustees or gives his or her written consent in the form required or acceptable to the Trustees.

  

	13.3  	General 

 A Buy-out Policy
may be purchased in the name of, or assigned to, the Member or other beneficiary concerned or a trustee for the benefit of the Member or beneficiary. 
 The Member or other beneficiary shall have an absolute right to the benefits derived from the Buy-out Policy. Upon the election of the Member and subject to the Scheme’s status as a registered
pension scheme under the Finance Act 2004 not being prejudiced, the Buy-out Policy may confer benefits or options which are alternative to the benefits otherwise payable under the Scheme. Provision may also be made either under the Buy-out Policy or
otherwise for any lump sum payable on the death of the Member to be held upon discretionary trusts for the benefit of any one or more of the Member’s Beneficiaries. 

 

	13.4  	Conditions of buying-out 

The Trustees shall secure the issue of the Buy-out Policy only on terms which shall: 

 

	 	13.4.1  	satisfy the requirements of HMRC; and 

  

	 	13.4.2  	satisfy the requirements of the Pension Schemes Act 1993 and comply with the provisions of the Contracting-out Laws. 

  
 44 

	13.5  	The Trustees may impose the following additional conditions and shall do so if the Buy-out Policy is purchased for a Member who leaves Pensionable Service with at least
1 year before his or her Normal Retirement Date: 

  

	 	13.5.1  	the benefits secured by the Buy-out Policy may be commuted only if: 

  

	 	13.5.1.1  	the conditions in FS Rule 6.1 (Exchanging for a retirement lump sum) are satisfied; or 

 

	 	13.5.1.2  	the Member has attained the age of 50 (or age 55 on or after 6 April 2010), or is suffering from Incapacity, or the conditions in FS Rule 6.1 (Exchanging
for a retirement lump sum) are satisfied and, in any case, the Member has requested or consented to the commutation and the commutation does not extend to the Member’s or his widow’s or her widower’s GMP, or a pension (if any) that
must be paid in accordance with the Contracting-out Laws; 

  

	 	13.5.2  	the Insurance Company must promise the Member, or the trustees of a trust established for the benefit of him or her and, if appropriate, his or her Dependants to pay
the benefits secured by the Buy-out Policy to him or her or, as the case may be, to his or her Dependants or to the trustees of such a trust; 

  

	 	13.5.3  	if the benefits secured by the Buy-out Policy include the Member’s or his widow’s or her widower’s GMPs, or a pension (if any) that must be paid in
accordance with the Contracting-out Laws, the Buy-out Policy must contain or be endorsed with terms which ensure that: 

  

	 	13.5.3.1  	the Member’s annuity will be at least equal to his or her revalued GMP, or pension (if any) provided in accordance with the Reference Scheme, and payable at State
Pension Age; and 

  

	 	13.5.3.2  	the widow’s or widower’s annuity will be at least equal to his or her’s GMP, or the pension (if any) that must be paid in accordance with the
Contracting-out Laws; and 

  

	 	13.5.3.3  	any increase of GMPs, under Sections 109 and 110 of the Pension Schemes Act 1993, shall result in a similar increase in the annuity; 

  
 45 

	 	13.5.4  	the Policy must be endorsed with the length of the Member’s Qualifying Service or, if his or her Qualifying Service exceeds 2 years, a statement to that effect.

  

	13.6  	At the date on which a Buy-out Policy is to be purchased under this FS Rule 13 (Buy-out Policies), the Trustees must be reasonably satisfied (on obtaining the
advice of the Scheme Actuary) that the amount to be applied is at least equal to the value of the benefits which have accrued to or in respect of the Member under the Scheme (or, if only part of a Cash Equivalent is required to be applied, of the
benefits to which the amount to be applied relates), taking into account the preservation, contracting-out and revaluation requirements of the Pension Schemes Act 1993. 

 

	13.7  	Subject to the Contracting-out Laws, in purchasing one or more Buy-out Policies the Trustees must obtain the consent of the Member or, if the benefits being secured are
in respect of the Member and payable to another beneficiary, that other person, unless the Scheme is being wound-up or the following conditions apply: 

  

	 	13.7.1  	the Buy-out Policy is taken out or entered into at least 12 months after the Member left Pensionable Service; and 

 

	 	13.7.2  	the Member has less than 5 years’ Qualifying Service; and 

  

	 	13.7.3  	at least 30 days before the Buy-out Policy is taken out or entered into, the Trustees give a written notice to the Member or other beneficiary of the Scheme of their
intention to take out or enter into one or more Policies; and 

  

	 	13.7.4  	when the Trustees agree with the Insurance Company to take out or enter into the Buy-out Policy, there is no outstanding application by the Member for a Cash
Equivalent. 

  

	13.8  	If a Transfer Payment has been made under FS Rule 12 (Transfers to and from the Final Salary Section) to a registered pension scheme which is not a
contracted-out scheme, or to a personal pension scheme which is not an appropriate scheme, relating to a Member’s accrued rights (except to a GMP, or a pension (if any) that must be paid in accordance with the Contracting-out Laws) following
the exercise by the Member of his or her right to a Cash Equivalent, the Trustees may purchase a Buy-out Policy for the Member (or, as the case may be, the Member’s widow or widower) which secures the payment of the GMPs, or a pension (if any)
that must be paid in accordance with the Contracting-out Laws, as an alternative to paying them out of the Scheme. 

  
 46 

	13.9  	The Buy-out Policy may (and shall in relation to a Member who leaves Pensionable Service at least 1 year before his or her Normal Retirement Date) include provisions
which: 

  

	 	13.9.1  	subject to the Member’s written consent, enable a transfer payment to be made from the Buy-out Policy to a New Scheme of which the Member becomes a member, except
that the transfer payment shall not include any GMPs, or a pension (if any) that must be paid in accordance with the Contracting-out Laws, other than in the circumstances set out in Regulations 13 and 14 of the Contracting-out (Transfer and Transfer
Payments) Regulations 1996 (S.I. 1996/1462); and 

  

	 	13.9.2  	enable benefits to be provided by the purchase of another annuity, assurance contract or policy from another Insurance Company which satisfies the requirements of this
Rule. 

  

	13.10  	In respect of those benefits in respect of which the Trustees have purchased a Buy-out Policy, the receipt of the Insurance Company shall, except as otherwise provided
by statute, discharge the Trustees of all liability under the Scheme in respect of the Member or other beneficiary concerned. 

  
 47 

 

 
 Dated
                                         
                        2008 
  

 
 Rules of the Chaucer Pension Scheme 

 
  
 Money Purchase Section 

 CONTENTS 

 

									
	MP Rule	 	 	  	 	  	Page	 
			
	 1
	 	MEANING OF DEFINED TERMS	  	 	1	  
	 2
	 	MEMBERSHIP OF THE SCHEME	  	 	8	  
		 	2.1	  	Joining the Scheme	  	 	8	  
		 	2.2	  	Eligibility	  	 	8	  
		 	2.3	  	Discretionary Membership	  	 	8	  
		 	2.4	  	Application for membership	  	 	9	  
		 	2.5	  	Opting-out	  	 	9	  
		 	2.6	  	Re-admission to membership	  	 	10	  
		 	2.7	  	Membership subject to special terms and conditions	  	 	11	  
		 	2.8	  	Life assurance only membership	  	 	12	  
		 	2.9	  	Members away from work	  	 	13	  
		 	2.10	  	Additional family leave	  	 	14	  
		 	2.11	  	Absence for any other reason	  	 	14	  
	 3
	 	CONTRIBUTIONS	  	 	15	  
		 	3.1	  	Employer contributions	  	 	15	  
		 	3.2	  	Members’ basic contributions	  	 	16	  
		 	3.3	  	Members’ additional voluntary contributions	  	 	16	  
	 4
	 	PENSION ACCOUNTS	  	 	18	  
		 	4.1	  	Monies payable to and benefits payable from each Member’s Pension Account	  	 	18	  
		 	4.2	  	Investments	  	 	19	  
		 	4.3	  	Protected Rights Account	  	 	19	  
	 5
	 	BENEFITS FROM PENSION ACCOUNTS	  	 	21	  
		 	5.1	  	Normal retirement pensions	  	 	21	  
		 	5.2	  	Early retirement pensions	  	 	21	  
		 	5.4	  	Benefits that can be provided	  	 	23	  
		 	5.5	  	Exchanging for a Dependant’s pension	  	 	24	  
		 	5.6	  	Cash sum	  	 	25	  
		 	5.7	  	Pension increases	  	 	26	  
	 6
	 	BENEFITS FOR DEFERRED MEMBERS	  	 	27	  
		 	6.1	  	Leaving the Scheme	  	 	27	  
		 	6.3	  	Entitlement to benefit	  	 	27	  
		 	6.5	  	Cash transfer sums and contribution refunds	  	 	28	  
		 	6.6	  	The Preservation Limit	  	 	29	  
	 7
	 	BENEFITS PAYABLE ON THE DEATH OF A MEMBER	  	 	30	  
		 	7.2	  	Benefits on death before Normal Retirement Date after leaving Pensionable Service	  	 	30	  
		 	7.4	  	Disposal of lump sum death benefits	  	 	32	  
		 	7.5	  	Children’s pension	  	 	33	  
	 8
	 	SECURING PENSIONS UNDER THE SCHEME	  	 	33	  
		 	8.1	  	Annuity contract	  	 	34	  
		 	8.2	  	Other pension options	  	 	34	  

									
		 	8.3	  	Payment of pensions	  	 	34	  
	 9
	 	POWER TO VARY THE SCHEME’S BENEFITS	  	 	35	  
	 10
	 	OTHER WAYS OF CONVERTING PENSION INTO A LUMP SUM	  	 	36	  
		 	10.1	  	Trivial pension	  	 	36	  
		 	10.2	  	Serious ill health	  	 	36	  
		 	10.3	  	Benefits in excess of the lifetime allowance	  	 	36	  
	 11
	 	SPECIAL BENEFITS	  	 	37	  
		 	11.1	  	Civil Partners	  	 	37	  
	 12
	 	TRANSFERS TO AND FROM THE MONEY PURCHASE SECTION	  	 	38	  
		 	12.1	  	Transfers into the Money Purchase Section	  	 	38	  
		 	12.2	  	Transfers out of the Money Purchase Section	  	 	39	  
		 	12.3	  	Statutory transfers	  	 	39	  
		 	12.4	  	Discretionary transfers	  	 	39	  
		 	12.5	  	Bulk transfers	  	 	40	  
		 	12.8	  	General	  	 	40	  
	 13
	 	BUY-OUT POLICIES	  	 	42	  
		 	13.1	  	Statutory buy-out	  	 	42	  
		 	13.2	  	Discretionary buy-out	  	 	42	  
		 	13.3	  	General	  	 	42	  
		 	13.4	  	Conditions of buying-out	  	 	42	  

 THE MONEY PURCHASE SECTION RULES 

These are the Rules that govern the benefits and contributions payable under the Money Purchase Section and should be read together with
the C Rules. 
  

	1.	Meaning of defined terms 

  

			
	 “AVC Account”
	  	means, in relation to a Member, that part of the Fund which the Trustees establish and maintain as the Member’s AVC Account in respect of the additional voluntary
contributions paid or treated as paid by the Member to the Scheme under MP Rule 3.3 (Members’ additional voluntary contributions);
		
	 “Basic Salary”
	  	means the basic annual salary or wages of a Member (excluding bonuses, commission, overtime and any other fluctuating emoluments) at the date in question;
		
	 “Beneficiaries”
	  	has the meaning given in MP Rule 7.4.2;
		
	 “Buy-out

Policy”
	  	means an insurance policy or annuity contract which satisfies the requirements of Section 95 of the Pension Schemes Act 1993 or is otherwise permitted under regulations relating
to the Pension Schemes Act 1993;
		
	 “Cash

Equivalent”
	  	 means;
  

(1)    in relation to a Relevant Person who has a right to the cash equivalent of the
benefits accrued to or in respect of him or her under Section 94 of the Pension Schemes Act 1993, the cash equivalent calculated in accordance with Section 97 of the Pension Schemes Act 1993; and

		
		  	 (2)    in relation to a Relevant Person who does not have a right to the cash equivalent in accordance
with Section 94 of the Pension Schemes Act 1993, the value of the benefits accrued to or in respect of him or her under the Scheme calculated in such manner as the Trustees, after obtaining the advice of the Scheme Actuary, shall agree with the
Principal Employer;

		
	 “C Rules”
	  	means the Constitutional Rules that are common to all sections of the Scheme;

			
		
	 “Child”
	  	means a child of the Member; the Member’s stepchild; a child who has been legally adopted by the Member; and any other child who, in the Trustees’ opinion, was
dependent on the Member at the time of the Member’s death and whom the Trustees agree to treat as a Child;
		
		  	A child shall remain a Child for so long as he or she is under age 23 and in full-time education or training approved by the Trustees. If any child was dependent on the Member
because of physical or mental impairment, the Trustees may continue to treat the child as a Child for so long as they are satisfied that the child is suffering from the impairment;
		
	 “Civil

Partner”
	  	has the same meaning as in the Civil Partnership Act 2004;
		
	 “Civil
	  	 has the same meaning as in the Civil Partnership Act 2004;

Partnership”

		
	 “Contracting-

out Laws”
	  	means the contracting-out laws set out in Part III of the Pension Schemes Act 1993;
		
	 “Death

Benefit
 Member”
	  	means an Employee admitted into membership of the Scheme solely for the purposes of a money purchase lump sum death benefit under MP Rule 2.8 (Life assurance only
membership);
		
	 “Deferred

Member”
	  	means a Member whose Pensionable Service ends before Normal Retirement Date and who has an entitlement to deferred benefits from the Scheme payable from Normal Retirement Date,
payment of which has not started;
		
	 “Dependant”
	  	means a dependant as defined in paragraph 15 of Schedule 28 to the Finance Act 2004. A dependant shall include the Member’s Spouse or Civil Partner, a child under the age of
23, or persons whom the Trustees consider financially dependent or mutually financially dependent on the Member or dependent due to physical or mental impairment;
		
	 “Employee”‘
	  	means an employee of an Employer who is normally resident in the United Kingdom or such other countries as may be agreed by the Trustees, and includes a director of an Employer
provided that the Scheme’s status as a registered pension scheme under the Finance Act 2004 is not prejudiced. For the purposes of the Scheme, any such director shall be deemed to be in Service. The Principal Employer shall decide whether or
not a person is in Service and its decision shall be final;

  
 2 

			
		
	 “Employer”
	  	means the Principal Employer and any Participating Employers, In relation to any Employee, former Employee or Member, “Employer” means that one of the Employers by
which he or she is, or was, last employed;
		
	 “Final Salary

Section”
	  	means the Final Salary Section of the Scheme;
		
	 “Former

Scheme”
	  	means the Lloyd’s Superannuation Fund established by a trust deed dated 10 October 1929, the MFK Underwriting Agencies Limited section of the Legal and General Pension Trust
established by a declaration of trust dated 19 November 1987 and any registered scheme under the Finance Act 2004 for the purpose of paying a Transfer Amount to the Scheme, and includes (unless inconsistent with the context) the trustees or
administrator of the Former Scheme;
		
	 “Frozen

Scheme”
	  	means a scheme under which all contributions have ceased and no further benefits accrue to scheme members but the assets of the scheme continue to be held by the scheme trustees to
be applied in accordance with the rules of the scheme;
		
	 “Fund”
	  	means the investments, cash and other assets for the time being held by or on behalf of the Trustees for the purposes of the Scheme;
		
	 “HMRC”
	  	means Her Majesty’s Revenue and Customs
		
	 “Incapacity”
	  	means physical or mental incapacity which prevents a Member from following his or her normal occupation and seriously impairs the Member’s earning capacity. It does not mean
simply a decline in energy or ability. The Trustees’ decision as to whether a Member is suffering from Incapacity shall be final;
		
	 “Lifetime

Allowance
 Excess Lump
 Sum”
	  	has the same meaning as in the Finance Act 2004;
		
	 “Insurance

Company”
	  	means an “insurance company” as defined in section 275 of the Finance Act 2004;
		
	 “Member”
	  	means a person who has joined the Money Purchase Section of the Scheme and in respect of whom the Trustees have a liability to pay or provide benefits;

  
 3 

			
	 “Minimum

Pension Age”
	  	means age 50 (or age 55 on or after 6 April 2010);
		
	 “Money

Purchase

Section”
	  	means the money purchase section of the Scheme to which these Rules apply;
		
	“MP Rules”	  	means, together with the C Rules, the Rules that govern the benefits payable under the Money Purchase Section of the Scheme;
		
	 “New

Scheme”
	  	means a scheme registered under the Finance Act 2004 as a registered pension scheme for the purpose of accepting a Transfer Payment from the Scheme, and includes (unless
inconsistent with the context) the trustees or administrator of the New Scheme;
		
	 “Normal

Retirement

Date”
	  	means a Member’s 60th birthday;
		
	“Participating Employer”	  	means any employer for the time being participating in the Scheme in accordance with C Rule 7.1 (Process for starting to participate), other than the Principal
Employer;
		
	 “Pension

Account”
	  	means the account or policy that determines the value of a Member’s benefits under the Scheme, as set out in MP Rule 4.1 (Monies payable to and benefits payable from
each Member’s Pension Account);
		
	“Pensionable Salary”	  	in relation to a Member is calculated on the day he or she becomes a Pension Member and on any day thereafter and means the Member’s Basic Salary;
		
	“Pensionable Service”	  	 means the number of complete years and months of continuous Service which a Member completes as a Pension Member before his or her
Normal Retirement Date;
  
 Service after Normal Retirement Date shall be
counted as Pensionable Service if so determined by the Principal Employer in accordance with MP Rule 5.1 (Normal retirement pensions);

		
	 “Pension

Member”
	  	means an Employee in Pensionable Service under the Scheme;

  
 4 

			
		
	“Preservation Laws”	  	means the laws on preservation of benefits in Chapter I of Part IV of the Pensions Schemes Act 1993;
		
	“Principal Employer”	  	means Chaucer Syndicates Limited or any company, firm, or individual which, in accordance with C Rule 8 (Change of Principal Employer), assumes the obligations of the
Principal Employer under the Scheme;
		
	“Professional Trustee”	  	means a Trustee who is in the business of providing a trustee service for payment;
		
	“Qualifying Service”	  	means the aggregate of:
		  	 (1)    the last period of continuous Pensionable Service other than Service
which falls within paragraphs (2) and (3) below;
  
 (2)    any prior period of at least 2 years’ Pensionable Service in respect of which a Member remains entitled to benefits under the Scheme;

 

         Provided that if the prior period of membership is, with
the Member’s consent, treated under the Scheme as continuous with the subsequent period, the Pensionable Service granted in respect of the prior Service is the Qualifying Service in respect of that prior period;

 
 (3)    periods of
service which counted as pensionable service in any previous employment during which the Member was a member of any Former Scheme and in respect of which the Trustees have received a Transfer Amount; and

 
 (4)    provided that in
paragraphs (1) and (2) above any breaks in Pensionable Service will be disregarded in assessing if Pensionable Service is continuous and the two (or more) separate periods will be aggregated if one or more of the following conditions are
satisfied:
  

(a)    the break does not exceed one
month;

  
 5 

			
		  	 (b)    the break corresponds to the Member’s absence from work wholly
or partly because of pregnancy, confinement or childbirth and the Member returns to work after the break in exercise of a right under the Employment Rights Act 1996 and the Member returns to Pensionable Service no later than one month after
returning to work;
  

(c)    the break corresponds to the Member’s absence from work further to a trade
dispute as defined in Section 35 of the Jobseekers Act 1995;
  
 (d)    there is a break in Service of any length and, before the break, the Member has already completed two years’ Qualifying Service;

		
	“Relevant Person”	  	means any Member or any person whose benefit is in payment from the Scheme;
		
	“Revaluation Laws”	  	means the laws as to revaluation of accrued benefits set out in Chapter II of Part IV of the Pension Schemes Act 1993;
		
	“Rules”	  	means the rules which govern the Scheme;
		
	“Scheme”	  	means the Chaucer Pension Scheme;
		
	“Scheme Actuary”	  	means the Scheme actuary appointed by the Trustees under Section 47 of the Pensions Act 1995 or another actuary appointed by the Trustees;
		
	“Service”	  	means employment with an Employer and shall be deemed continuous although broken by periods of one month or less or performed partly with one Employer and partly with another
Employer;
		
	“Spouse”	  	means a husband, wife, widower and a widow and also includes a civil partner (as defined In the Civil Partnership Act 2004), references to a “widow” or “widower”
shall include a surviving civil partner, and all references to “marriage” shall include civil partnership (as defined in the Civil Partnership Act 2004) and references to “married” shall be interpreted
accordingly;

  
 6 

			
	“State Pension Age”	  	means a man’s 65th birthday and a woman’s 60th birthday (increasing gradually to 65 between 2010 and 2020 such that it will be 65 for both men and women from 6 April
2020);
		
	“Transfer Amount”	  	means any cash sum or other assets which a Former Scheme may be authorised to transfer to the Scheme in respect of a Member or other person who is entitled to benefits under the
Former Scheme;
		
	“Transfer Payment”	  	means, in relation to a Relevant Person, the cash equivalent in respect of that Relevant Person, or such greater amount as the Trustees, after consulting the Scheme Actuary, shall
agree with the Principal Employer;
		
	“Transfer Value Laws”	  	means the laws on transfer values in Chapter IV of Part IV of the Pension Schemes Act 1993;
		
	“Trivial Pension Limit”	  	means an amount which is no higher than 1% of the Standard Lifetime Allowance; and
		
	“Trustees”	  	means the trustees from time to time of the Scheme.

  
 7 

	2.	Membership of the Scheme 

This Rule sets out the terms on which an Employee may join the Money Purchase Section of the Scheme. 

 

	2.1	Joining the Scheme 

  

	 	2.1.1  	An Employee shall automatically join the Money Purchase Section of the Scheme as a Pension Member and enter Pensionable Service on the day on which he or she first
satisfies the eligibility conditions for a Pension Member as set out in this MP Rule 2.1 (Joining the Scheme). 

  

	 	2.1.2  	An Employee may decide not to join the Scheme or to end his or her membership within one month after becoming a Member. He or she shall make his or her decision known
to the Trustees by completing any appropriate forms they require and, unless the provisions of MP sub-rule 2.3 (Discretionary Membership) apply to him or her, he or she shall be treated as having never been a Member, 

 

	 	2.1.3  	The Trustees may, at the request of an Employer, treat any Employee who is not a Member as ineligible for membership of the Scheme. This applies whether or not the
Employee fulfils the eligibility conditions set out in MP Rule 2.2 (Eligibility). The Employer shall notify the Employee concerned. 

  

	2.2	Eligibility 

  

	 	2.2.1  	The eligibility conditions for an Employee to become a Member of the Money Purchase Section of the Scheme are that: 

 

	 	2.2.1.1  	he or she is in Service; and 

  

	 	2.2.1.2  	he or she is aged 18 years or more but is under age 59. 

  

	2.3	Discretionary Membership 

  

	 	2.3.1	The Trustees, at the request of an Employer, shall treat any Employee who does not satisfy all the eligibility conditions set out in MP Rule 2.2 (Eligibility) as
eligible for membership of the Scheme. The Employee will be a treated as a Pension Member or a Death Benefit Member on a date and on terms and conditions as the Employer agrees with the Trustees and notifies to the Employee. The Employee shall
complete any forms and supply any information and evidence to the Trustees as they require in accordance with MP Rule 2.4 (Application for membership). 

  
 8 

	 	2.3.2  	If an Employee or a Death Benefit Member does not become a Pension Member at his or her first opportunity, he or she shall become or remain a Death Benefit Member. His
or her benefits under the Scheme will be restricted to the lump sum death benefit payable under MP Rule 2.8 (Life assurance only membership). The Trustees may allow him or her, with the Employer’s consent, to become a Pension Member at a
later date, subject to any special conditions relating to his or her membership and benefits under the Scheme which the Trustees consider appropriate. 

  

	 	2.3.3  	If a Member has been notified by the Employer that he or she is no longer eligible for membership of the Scheme, the Trustees, with the Employer’s consent, may
allow him or her to remain a Member for a period not longer than 12 months, subject to any special conditions in respect of his or her membership which the Trustees consider appropriate. 

 

	2.4	Application for membership 

  

	 	2.4.1	  An Employee who is eligible for membership of the Money Purchase Section of the Scheme in accordance with MP Rule 2.2 (Eligibility) or MP Rule
2.3 (Discretionary Membership) will be notified in writing. If an Employee wishes to join the Money Purchase Section of the Scheme he or she must complete an application form and any other forms required by the Trustees and supply any
information the Trustees require either before or at any time after the Employee becomes a Member. This may include evidence of the Employee’s health and the Trustees may decide that no, or only limited, death benefits will be payable in
respect of an Employee who becomes a Member if the Trustees or the Insurance Company are not satisfied that the Member is in good health. The Trustees will notify the Member in writing accordingly, 

 

	2.5	Opting-out 

  

	 	2.5.1  	A Pension Member may at any time before Normal Retirement Date elect to end his or her membership of the Scheme whilst remaining in Service. To do this, the Member must
give the Trustees at least one month’s written notice and complete any appropriate forms the Trustees require for this purpose. The Trustees shall inform the Member as soon as practicable of the date on which his or her Pensionable Service is
treated as ending. 

  
 9 

	 	2.5.2  	If a Member has ended his or her Pensionable Service under this MP Rule 2.5 (Opting-out), he or she will be treated as a Death Benefit Member. His or her
benefits under the Scheme will be restricted to the lump sum death benefits payable in accordance with MP Rule 2.8 (Life assurance only membership). 

 

	 	2.5.3  	If a Pension Member has ended his or her Pensionable Service under this MP Rule 2.5 (Opting-out) and remains in Service, the Trustees may allow him or her to
rejoin the Scheme as a Pension Member at a later date if: 

  

	 	2.5.3.1  	at that date he or she is under age 59; 

  

	 	2.5.3.2  	he or she otherwise satisfies the eligibility conditions in MP Rule 2.2 (Eligibility); and 

 

	 	2.5.3.3  	he or she accepts any special conditions in respect of his or her membership which the Trustees consider appropriate including any restrictions on benefits payable
under the Scheme on his or her death which may be subject to medical evidence of his or her good health. 

  

	2.6	Re-admission to membership 

  

	 	2.6.1  	If an Employee who has previously been a Member applies to re-join the Scheme: 

 

	 	2.6.1.1  	after re-entering Service; 

  

	 	2.6.1.2  	because he or she is again regarded by the Employer as an Employee; or 

  

	 	2.6.1.3  	after returning to work after absence during which (or at the end of which) he or she ceased to be a Member; 

 

	 	2.6.1.4  	he or she will at the Employer’s request, but subject to the Trustees’ consent, be re-admitted into membership of the Scheme as from the appropriate date
which applies under MP Rule 2.1 (Joining the Scheme). 

  

	 	2.6.2  	Re-admission is subject to the Employee satisfying the eligibility conditions for membership set out in MP Rule 2.2 (Eligibility) and the other relevant
provisions of MP Rule 2.4 (Application for membership). Re-admission is also subject to any terms and conditions (consistent with the preservation and contracting-out requirements of the Pension Schemes Act 1993) which the Trustees, with the
consent of the Employer and with the advice of the Scheme Actuary, decide are appropriate and notify the Employee concerned. 

  
 10 

	 	2.6.3  	Any period of Service between the date of termination of the earlier period of membership and the date of re-admission does not count as Pensionable Service except to
the extent determined by the Trustees under sub-rule 7.2. 

  

	 	2.6.4  	The Trustees may, subject to the Contracting-out Laws (in respect of Members of the Final Salary Section only), MP sub-rule 2.6.2 and with the Member’s
written consent, cancel all or part of any benefits (whether deferred or in payment) payable to or in respect of the Member under the Scheme which relate to an earlier period of membership of the Scheme. 

 

	 	2.6.5  	If action is taken under MP sub-rule 2.6.4, the Trustees must credit the Member with additional benefits equivalent in value (as determined by the Trustees after
the advice of the Scheme Actuary) to the cancelled benefits. For this purpose, account is taken of: 

  

	 	2.6.5.1  	the benefits payable or paid in respect of the earlier period of membership; and 

 

	 	2.6.5.2  	the applicable rates of contributions and accrual of benefits under the Scheme in respect of the period to which the cancelled benefits relate.

  

	 	2.6.6  	The Trustees may, but need not, express the additional benefits as a period of additional Pensionable Service. 

 

	2.7	Membership subject to special terms and conditions 

  

	 	2.7.1  	The admission or re-admission of any Employee into membership of the Scheme is subject to: 

 

	 	2.7.1.1  	any variation in the benefits to be provided for or in respect of him or her under the Scheme; 

 

	 	2.7.1.2  	any variation in the rate of contributions he or she may be required to pay to the Scheme; or 

 

	 	2.7.1.3  	any other special terms and conditions; 

 which the Employer, with the agreement of the Trustees after obtaining the advice of the Scheme Actuary, decides is appropriate. 

  
 11 

	 	2.7.2  	At the request of the Employer, the Trustees may agree to admit or readmit an Employee into membership as a Death Benefit Member without requiring him or her to
complete an application form. If the Trustees agree to this, the Employee is admitted or re-admitted into membership as from a date decided by the Trustees. 

 

	 	2.7.3  	At a later date, the Employer may, if the Trustees agree after obtaining the advice of the Scheme Actuary, alter any variation in the benefits or contributions that was
imposed on or in respect of a Member. 

  

	 	2.7.4  	The Trustees must inform the Member in writing of any variation in the benefits or contributions or any other special terms and conditions that are to apply to or in
respect of him or her on or before the date he or she is admitted or re-admitted into membership of the Scheme or on or before the effective date of the variation. 

 

	2.8	Life assurance only membership 

 This Rule sets out the terms on which Employees who do not join the Money Purchase Section of the Scheme may be included in the Scheme for lump sum death in service benefits only. 

 

	 	2.8.1  	Subject to MP sub-rule 2.1.2 and MP Rule 2.4 (Application for membership) an Employee shall automatically join the Scheme as a Death Benefit Member on the
day on which he or she begins Service. 

  

	 	2.8.2  	If a Death Benefit Member who is included in the Scheme for benefits under this MP Rule 2.8 (Life assurance only membership) dies while in Service before his or
her Normal Retirement Date, a lump sum equal to: 

  

	 	2.8.2.1  	four times the Death Benefit Member’s Pensionable Salary at the date of death; and 

 

	 	2.8.2.2  	the value of his or her Pension Account at the date of death; and 

  

	 	2.8.2.3  	the value of his or her additional voluntary contributions 

 shall be payable in accordance with MP Rule 7.4 (Disposal of lump sum death benefits) (except that if the Trustees have taken out an insurance policy with in an Insurance company to meet some or
all of their obligations under this MP Rule 2.8 (Life assurance only membership) any such insured benefits will be payable only if and to the extent that the Trustees are able to recover payment under the terms of the insurance policy).

  
 12 

	2.9	Members away from work 

This Rule sets out the terms governing Members’ benefits while they are away from work, including while on family leave and on
secondment. 
  

	 	2.9.1  	Statutory family leave 

  

	 	2.9.2  	A Member shall be treated as still a member of the Scheme in Pensionable Service while away from work during a period of statutory family leave, being:

  

	 	2.9.2.1  	ordinary maternity leave, ordinary adoption leave, or paternity leave in accordance with the Employment Rights Act 1996; and 

 

	 	2.9.2.2  	any longer period in which the Member receives pay from the Member’s Employer and which is a period of maternity leave, adoption leave, paternity leave or absence
from work for other family reasons (as defined in the Social Security Act 1989). 

  

	 	2.9.3  	During any such period of statutory leave the benefits applicable to and in respect of the member under the Scheme will continue to accrue (or, if otherwise
appropriate, will continue to be provided) on the same basis and subject to the same terms and conditions which otherwise would have applied under the Scheme had he or she been working normally subject to the other provisions of this MP Rule
2.9 (Members away from work). 

  

	 	2.9.4  	If a Member receives pay from his or her Employer during any period of statutory family leave (as described above), he or she shall be required to pay contributions on
the amount received. However, if a Member receives no pay for any period of statutory family leave, he or she shall not be required to pay contributions for that period and membership, Pensionable Service and benefits will continue under the Scheme.

  

	 	2.9.5  	During any period of statutory family leave (as described above), a Member may continue, start to pay or increase, reduce or stop any additional voluntary contributions
to the Scheme. 

  

	 	2.9.6  	The Member’s benefits for any period of statutory family leave shall be calculated as if the Member had worked normally and received the normal pay for doing so.

  
 13 

	2.10	Additional family leave 

  

	 	2.10.1  	If a Member is absent from work due to any other period of paid family leave, the Member’s benefits shall be based on the pay received unless the Principal
Employer and the Trustees decide to apply other terms to the Member. 

  

	 	2.10.2  	If a Member is absent from work due to a period of unpaid additional maternity leave, additional adoption leave or parental leave: 

 

	 	2.10.2.1  	the Principal Employer and the Trustees may agree to treat the Member as still in Pensionable Service for some or all purposes of the Scheme during this time. The
Principal Employer and the Trustees shall agree terms (consistent with the Contracting-out Laws) to apply to the Member’s contributions and benefits for this further period; or 

 

	 	2.10.2.2  	the Member shall otherwise be treated as if he or she had left Pensionable Service. However, if a Member returns to work at the end of such a period of unpaid leave,
his or her Pensionable Service before being treated as having left Pensionable Service and after returning to work shall be treated as continuous (but excluding the break). 

 

	2.11	Absence for any other reason 

  

	 	2.11.1  	Where a Member is away from work for any reason other than those described above or on secondment, the Principal Employer and Trustees may agree to treat the Member as
still in Pensionable Service during this period, subject to any terms which the Principal Employer and Trustees agree (consistent with the Contracting-out Laws). In particular, a Member who is away from work shall be treated as still in Pensionable
Service for so long as the Member receives contractual pay or statutory sick pay. If a Member is not treated as still in Pensionable Service, the Member shall be treated as if he or she had left Pensionable Service. No Employee will be prevented
from joining or re-joining the Scheme solely because of his or her temporary absence. 

  
 14 

	3.	Contributions 

  

	 	This	Rule sets out the terms for the payment of contributions to the Scheme. 

  

	3.1	Employer contributions 

  

	 	3.1.1  	Each Employer shall pay such contributions each year to the Member’s Pension Account of each of its Employees who are Members of the Money Purchase Section as the
Trustees, after obtaining the advice of the Scheme Actuary, shall agree with the Principal Employer and which will not prejudice the Scheme’s status as a registered pension scheme under the Finance Act 2004. 

 

	 	3.1.2  	An Employer with the consent of the Principal Employer and the Trustees may at any time pay a special contribution to the Scheme for any purpose consistent with the
purposes of the Scheme. The Trustees shall apply the contribution solely for the purpose stated by the Employer, provided that this does not prejudice the Scheme’s status as a registered pension scheme under the Finance Act 2004.

  

	 	3.1.3  	Each Employer’s contributions must be paid to the Trustees, or as otherwise directed by the Trustees, at such intervals as the Trustees decide.

  

	 	3.1.4  	An Employer may at any time reduce, suspend or terminate its contributions to the Scheme by giving three months’ written notice to the Principal Employer, the
Trustees and to all its Employees who are Members. Any notice of reduction, suspension or termination of contributions is without prejudice to the Employer’s obligation to pay contributions to the Scheme in respect of the period before the
effective date of the notice. Any notice of termination extends to any liability of the Members who are Employees of the Employer to contribute to the Scheme. 

 

	 	3.1.5  	If an Employer terminates its contributions under MP sub-rule 3.1.4, the provisions of C Rule 7.2 (Ceasing to participate) will then apply. If the
Principal Employer terminates its contributions under MP sub-rule 3.1.4, the provisions of C Rule 14 (Winding-up) will then apply. 

  

	 	3.1.6  	If an actuarial valuation of the Scheme reveals the value of the assets which are attributed to the Final Salary Section exceed the value of liabilities attributed to
the Final Salary Section on an ongoing basis, any obligation by an Employer to contribute under this MP Rule 3.1 (Employer contributions) may be met by an allocation from the assets notionally attributed to the Final Salary Section, provided
that the Scheme Actuary advises that such allocation is not greater than the amount of such excess. 

  
 15 

	3.2	Members’ basic contributions 

  

	 	3.2.1  	Each Pension Member shall contribute to the Scheme at the rate of 3% of his or her Basic Salary or at such other rate as the Trustees may determine with the agreement
of the Principal Employer and notify to the Pension Members. A Pension Member’s contributions shall be paid into his or her Member’s Pension Account. 

 

	 	3.2.2  	A Member shall pay ordinary contributions from the date of becoming a Pension Member until, subject to MP sub-rule 3.2.3, the earliest of:

  

	 	3.2.2.1  	his or her Normal Retirement Date; 

  

	 	3.2.2.2  	his or her date of death; or 

  

	 	3.2.2.3  	the date on which he or she leaves Pensionable Service. 

  

	 	3.2.3	  If a Member remains in Service after Normal Retirement Date, his or her ordinary contributions may, at his or her request, but subject to the agreement of
the Trustees and Principal Employer, continue for the period for which he or she accrues additional Pensionable Service under MP Rule 5.3 (Late retirement pensions). 

 

	 	3.2.4  	A Member’s contributions are deducted from his or her earnings by his or her Employer on each pay date. The Employer shall pay these contributions to the Trustees
as soon as is reasonably practicable (or as otherwise directed by the Trustees) and at such intervals as the Trustees decide being no later than the 19th day of the month following that in which the deduction is made. 

 

	3.3	Members’ additional voluntary contributions 

  

	 	3.3.1  	A Member in Pensionable Service may pay additional voluntary contributions to the Scheme, so long as the Member does not start to make additional voluntary
contributions on a date less than twelve months before his or her Normal Retirement Date, on terms agreed between the Member and the Trustees subject to a minimum rate decided by the Trustees from time to time. If a Member wishes to commence paying
additional voluntary contributions or change the amount that he or she pays or cease contributing, he or she must give the Trustees one month’s written notice of this intention. 

  
 16 

	 	3.3.2  	A Member may continue to pay additional voluntary contributions to the Scheme in respect of Service after his or her Normal Retirement Date. These contributions shall
cease on the earlier of his or her actual retirement and his or her 75th birthday. 

  

	 	3.3.3  	A Member’s additional voluntary contributions will be deducted from his or her earnings on each pay date. The Employer will pay these contributions to the Trustees
at such intervals as the Trustees decide being no later than the 19th day of the month following that in which the deduction is made. 

  

	 	3.3.4  	The Trustees shall invest the voluntary contributions of a Member so that the Trustees can at all times identify the contributions and any investment additions to them
and any deductions from them. C Rule 6.2 (Investment of Scheme assets) shall apply to the investment of a Member’s voluntary contributions in the same way as it applies to the investment of the remainder of the Fund. The assets of the
Fund which represent voluntary contributions and the income arising from them shall be treated as a separate fund should the Scheme wind up in accordance with C Rule 14 (Winding-up) and shall not be available for the general purposes of the
Scheme. 

  

	 	3.3.5  	Each Member’s additional voluntary contributions shall be allocated to each Member’s Pension Account, and the proceeds shall then be used to provide
additional money purchase benefits (including as a lump sum) in respect of the Member. The Member may with the consent of the Employer choose the extent to which these benefits shall be paid in the form of a lump sum or a pension.

  

	 	3.3.6  	If these funds are to be used to provide a pension in respect of the Member, this pension must (unless the Principal Employer decides otherwise) be provided through the
purchase of an annuity contract in respect of the Member. The Member may choose the Insurance Company from which this annuity contract shall be bought. 

  
 17 

	4.	Pension Accounts 

 Each
Member shall have a Pension Account, the value of which shall determine the value of their benefits from the Money Purchase Section. This Rule sets out the matters that affect that value (for example, contributions and investment returns).

  

	4.1	Monies payable to and benefits payable from each Member’s Pension Account 

 

	 	4.1.1  	Benefits will be provided under the Scheme in respect of each Member of the Money Purchase Section as provided by the Rules of the Money Purchase Section and according
to the value of his or her Member’s Pension Account at the relevant date. Each Member’s Pension Account will comprise the assets notionally representing the total of: 

 

	 	4.1.1.1  	the Employer’s contributions paid to the Money Purchase Section under MP Rule 3.1 (Employer contributions); 

 

	 	4.1.1.2  	the Member’s contributions paid to the Money Purchase Section under MP Rule 3.2 (Members’ basic contributions); 

 

	 	4.1.1.3  	where the Member has directed the Trustees to pay them into his Member’s Pension Account, any voluntary contributions paid by the Member to the Money Purchase
Section under MP Rule 3.3 (Members’ additional voluntary contributions); 

  

	 	4.1.1.4  	any transfer payment received by the Money Purchase Section in respect of the Member; 

 

	 	4.1.1.5  	any augmentation credited in respect of the Members; and 

 together with the accumulated investment return on these assets but net of any expenses payable under the Rules out of the Member’s Pension Account. 

  
 18 

	4.2	Investments 

 The Trustees
must notify Members that the Scheme’s assets are held as one fund under a trust from which all benefits are provided. Accordingly, although the value of Pension Accounts is linked to the value of particular assets, no potential beneficiary
under the Scheme is entitled to any given Scheme asset. 
  

	 	4.2.1  	The Trustees shall delegate their powers of investment in relation to the Member’s Pension Accounts to an investment manager in accordance with C Rule 6.2
(Investment of Scheme assets). 

  

	 	4.2.2  	Members may link the value of their Pension Accounts to any of the investment options that the Trustees offer, or if the Member does not do so, the Trustees may do so
for the Member. The Trustees shall adjust the value of each Member’s Pension Account by reference to the changes in the value of each linked investment option. The Trustees shall not be liable for any loss arising from the choice of any
investment option. 

  

	 	4.2.3  	No Member or any other person claiming through or in respect of the Member shall have any right, title or interest to any particular asset in the Fund.

  

	4.3	Protected Rights Account 

The Member’s “protected rights” are the Member’s rights to contracted-out money purchase benefits in respect of the
Member’s protected rights account. 
 If a Member is in contracted-out employment under the Scheme, he or she shall have a
protected rights account included in his or her Pension Account. This protected rights account shall be maintained by the Trustees. 
 The following payments shall be credited to a Member’s protected rights account: 
  

	 	4.3.1  	minimum payments under MP Rule 3 (Contributions), and under regulation 12(5) of the Personal Pension Schemes (Appropriate Schemes) Regulations 1997, which
together must be invested on behalf of a Member within one month after the end of the income tax month to which they relate; 

  

	 	4.3.2  	age-related payments made to the Scheme by the Secretary of State under Section 42A(3), Pension Schemes Act 1993, which must be invested on behalf of the Member
within one month of the date of payment by the Secretary of State; and 

  
 19 

	 	4.3.3  	other contracted-out rights transferred into the Scheme from other pension arrangements under the Contracting-out Laws. 

  
 20 

	5.	Benefits from Pension Accounts 

 This Rule sets out the benefits that can be provided from Members’ Pension Accounts and the terms relating to those benefits. 

 

	5.1	Normal retirement pensions 

  

	 	5.1.1  	Each Member’s Pension Account shall be used to provide benefits for the Member (and accordingly the value of the Member’s Pension Account at the date on which
the benefits are to be provided shall determine the value of those retirement benefits) as provided by the rules of the Money Purchase Section of the Scheme. These benefits will take the form of whichever one or more of the following the Member
chooses: 

  

	 	5.1.1.1  	a pension payable to the Member from Normal Retirement Date; 

  

	 	5.1.1.2  	a lump sum payable to the Member from Normal Retirement Date; 

  

	 	5.1.1.3  	one or more pensions payable on the Member’s death after his or her pension has started to any one or more of his or her Spouse or Dependants;

  

	 	5.1.1.4  	annual increases in the pension payable under MP sub-rule 5.1.1.1 and MP sub-rule 5.1.1.3. 

 

	 	5.1.2  	The Trustees shall pay a Member his or her benefits from the Scheme from Normal Retirement Date or from such later date as the Member leaves Service or (if earlier)
reaches age 75. 

  

	5.2	Early retirement pensions 

  

	 	5.2.1  	It may be that a Member leaves Service before Normal Retirement Date. If so, the Member’s benefits can commence to be paid before Normal Retirement Date, on the
condition that the Member is either at or after Minimum Pension Age, or suffering from an Incapacity. If a Member is suffering from an Incapacity, his or her retirement benefits may commence to be paid before Minimum Pension Age. The Trustees will
use the Member’s Pension Account to provide benefits for or in respect of him in accordance with MP Rule 5.1 (Normal retirement pensions) but as if reference to Normal Retirement Date were instead to the date from which the benefits are
payable. 

  
 21 

	 	5.2.2  	Before paying any benefit before Minimum Pension Age on account of a Member’s Incapacity, the Trustees must obtain advice from a registered medical practitioner
that the Member is (and shall continue to be) incapable of carrying on his or her occupation because of a physical or mental impairment and that the requirements of paragraph 1 of Schedule 28 to the Finance Act 2004 have been met.

  

	 	5.2.3  	If a Member wishes to retire early under the provisions of this MP Rule 5.2 (Early retirement pensions) he or she must, before he or she retires, inform the
Trustees in writing that he or she wishes his or her retirement benefits to become payable on his or her retirement. 

  

	5.3	Late retirement pensions 

  

	 	5.3.1  	If a Member remains in Service after his or her Normal Retirement Date, he or she shall be entitled to benefits from the Scheme on his or her actual retirement. If the
Member retires after he or she reaches age 75, his or her pension must start to be paid from his or her 75th birthday. The Trustees will use the Member’s Pension Account to provide benefits for and in respect of him and her in accordance with
MP Rule 5.1 (Normal retirement pensions) but as if reference to Normal Retirement Date were instead to the date from which the benefits are payable. 

 

	 	5.3.2  	During any period of Service after a Member’s Normal Retirement Date which is treated as Pensionable Service, the Member shall pay any contributions required to be
paid by the Scheme under MP Rule 3.2 (Members’ basic contributions). A Member may continue to pay any voluntary contributions under MP Rule 3.3 (Members’ additional voluntary contributions) during any period of Service after
Normal Retirement Date. Contributions will cease on the earlier of his or her date of actual retirement and his 75th birthday. 

  

	 	5.3.3  	If payment of a Member’s pension is deferred beyond State Pension Age, the Member shall for the purposes of the Scheme be treated as retiring on the 5th
anniversary of his or her attainment of State Pension Age, unless by that date he or she has retired or unless he or she consents to the payment of his or her pension being further deferred. 

 

	 	5.3.4  	If a Member dies during Service after Normal Retirement Date, he or she is treated as having retired on the day before his or her death, The appropriate provisions of
MP Rule 7 (Benefits payable on the death of a Member) relating to death in retirement then apply. 

  
 22 

	 	5.3.5  	This MP Rule 5.3 (Late retirement pensions) does not apply to a Member who has ended his or her Pensionable Service in accordance with MP Rule 2.5
(Opting-out), except to the extent which applies under this MP Rule 5 (Benefits from Pension Accounts). 

  

	5.4	Benefits that can be provided 

 The Member must choose for his or her Pension Account to be used to provide one or more of the benefits described in this Rule, and then notify the Trustees of that choice on such terms regarding
notification as the Trustees may decide from time to time. The Trustees shall then, subject to C Rule 9 (Trustees’ discretion to make unauthorised payments), use the Member’s Pension Account to provide the benefits chosen.

 The benefits that a Member can choose from are: 

 

	 	5.4.1  	a pension payable to the Member for life (or with the Trustees’ agreement, a different period), and which may at the election of the Member be guaranteed for a
specified minimum period of up to 10 years; 

  

	 	5.4.2  	death benefits payable in respect of the Member under MP Rule 7 (Benefits payable on the death of a Member) to any one or more of his or her Spouse or
Dependants; 

  

	 	5.4.3  	a cash sum payable to the Member under MP Rule 5.6 (Cash sum) when the Member’s pension commences to be paid; and/or 

 

	 	5.4.4  	annual increases in the pension payable under MP Rule sub-rule 5.4.1 and MP Rule sub-rule 5.4.3. 

If a Member who chooses a guaranteed pension under MP Rule sub-rule 5.4.1 above for a period of five years or less dies during the
period of the guarantee, the Trustees must pay a lump sum on the Member’s death equal to the pension payments that would have been made during the remainder of the period (disregarding any further increases). This benefit must comply with the
requirements of MP Rule 7.3 (Benefits on death after retirement), and the lump sum must not exceed the maximum permitted as a ‘pension commencement lump sum’ under Part 4 of the Finance Act 2004. 

A pension payable to a Spouse or adult Dependant will be payable for life under MP Rule sub-rule 5.4.2 above will be payable for
life. A pension payable to a Child will cease when he or she ceases to be Dependant. 

  
 23 

 No benefit payable under this MP Rule 5.2 will be of a form or amount which could
prejudice the Scheme’s status as a registered pension scheme as described in C Rule 2 (Registered and contracted-out pension scheme) 
 Any benefits payable under the Scheme including from Member’s protected rights accounts must comply with the relevant Contracting-out Laws. 

 

	5.5	Exchanging for a Dependant’s pension 

  

	 	5.5.1  	A Member may, with the Trustees’ agreement, exchange part of his or her pension before it commences for a pension payable on the Member’s death to one or more
of his or her Dependants as he nominates. The Trustees, after obtaining the advice of the Scheme Actuary, shall determine the amount of each Dependant’s pension and the amount of pension remaining payable to the Member.

  

	 	5.5.2  	A Dependant’s pension provided under this MP Rule 5.5 (Exchanging for a Dependant’s pension) is subject to the further provisions of this MP Rule
5.5 (Exchanging for a Dependant’s pension). 

  

	 	5.5.3  	A Dependant’s pension shall not: 

  

	 	5.5.3.1  	be less than the Trivial Pension Limit; or 

  

	 	5.5.3.2  	when aggregated with any other Dependant’s pension payable under this MP Rule 5.5 (Exchanging for a Dependant’s pension), be more than the
Member’s pension remaining after the Member exercises this option but before he or she exercises any option to exchange part of his or her pension for a cash sum under MP Rule 5.6 (Cash sum). 

 

	 	5.5.4  	If the Member dies before his or her pension becomes payable under the Rules, any election made by him or her under MP Rule 5 (Benefits from Pension Accounts) is
cancelled and treated as not having been made. 

  

	 	5.5.5  	If a Member makes an election under MP sub-rule 5.1.1.3, he or she may at any time cancel that election and make another election provided that, in either case,
his or her retirement benefits have not become payable under the Rules. 

  

	 	5.5.6  	If a nominated Dependant dies or ceases to qualify as a Dependant before the Member’s pension becomes payable under the Rules, the election made by the Member
under MP sub-rule 5.1.1.3 is cancelled and is treated as not having been made. The Member may then make another election under MP sub-rule 5.1.1.3 before his or her retirement. 

  
 24 

	 	5.5.7  	If a nominated Dependant dies or ceases to qualify as a Dependant after the Member’s pension becomes payable under the Rules but before the Member’s death, no
benefit is payable in respect of that Dependant. The Member will remain entitled only to that part of his or her pension which he or she did not surrender under this MP Rule 5.5 (Exchanging for a Dependant’s pension).

  

	 	5.5.8  	If a Dependant’s pension is payable under this MP Rule 5.5 (Exchanging for a Dependant’s pension), it shall be paid in addition to any Dependant’s
pension payable under MP Rule 7.1 (Benefits on death in Pensionable Service). 

  

	 	5.5.9  	An election made under this MP Rule 5.5 (Exchanging for a Dependant’s pension) must be made by the Member in writing to the Trustees in a form prescribed by
the Trustees at least 1 month (or such other period as the Trustees decide) before the date on which the first installment of the Member’s pension is payable. 

 

	5.6	Cash sum 

  

	 	5.6.1  	A Member may elect for part or all of his or her pension to be commuted for a cash sum payable on the date of his retirement. Subject to any restrictions determined by
the Trustees, the Member can choose a lump sum of any amount up to the maximum permitted as a ‘pension commencement lump sum’ under Part 4 of the Finance Act 2004. 

 

	 	5.6.2  	The basis for calculating the cash sum described in MP sub-rule 5.6.1 applies where Pensionable Service consists wholly of full-time Service. Where Pensionable
Service consists wholly or partly of part-time Service, each period of part-time Service is separately converted to a period of equivalent full-time Service. The conversion basis for this is the same as applies for calculating the Member’s
pension. 

  

	 	5.6.3  	Any pension provided for a Member by his or her AVC Account may not be exchanged for a cash sum, unless the Trustees have accepted a Transfer Amount in respect of the
Member which relates to voluntary contributions which he or she first paid, or entered into an agreement to pay them, to a Former Scheme before 8th April 1987 (or unless HMRC agrees otherwise). 

  
 25 

	 	5.6.4  	An election under this MP Rule 5.6 (Cash sum) must be made by the Member in writing to the Trustees in the form they require at least 1 month (or such other
period as the Trustees decide) before the date on which the first installment of the Member’s pension is payable. 

  

	 	5.6.5  	The rate at which an amount of pension is to be exchanged for a cash sum shall be determined by the Scheme Actuary. Any calculations made by the Scheme Actuary for this
purpose shall be consistent with any other calculations made for the Member and for other purposes of the Scheme. The pension payable to the Member shall be reduced accordingly. 

 

	 	5.6.6  	The lump sum payable under this MP Rule 5.6 (Cash sum) shall be determined by the Trustees on a basis which is certified by the Scheme Actuary as reasonable and
which does not prejudice the Scheme’s status as a registered pension scheme as described in C Rule 2 (Registered and contracted-out pension scheme). 

 

	5.7	Pension increases 

 Each
Member shall determine, before any pension comes into payment, the rate at which it shall increase from time to time once it is in payment. However, if the Member dies before receiving his or her benefits under the Scheme, the Trustees shall choose
the rate at which it may increase (including none) instead. 

  
 26 

	6.	Benefits for deferred members 

 This Rule sets out the terms on which Members become deferred members and for the payment of benefits to members who become deferred members on or after the effective date of these Rules. 

 

	6.1	Leaving the Scheme 

 A
Member shall be treated as having left Pensionable Service for the purposes of these Rules when he or she, before his or her Normal Retirement Date: 
  

	 	6.1.1  	leaves Service and is not entitled to, or does not receive, an immediate pension; 

 

	 	6.1.2  	ceases to satisfy the Scheme’s eligibility conditions; 

  

	 	6.1.3  	opts out of Pensionable Service under MP Rule 2.5 (Opting-out) by giving not less than 1 month’s notice in writing to the Trustees; or

  

	 	6.1.4  	is otherwise treated as if he or she had left Pensionable Service under any other provision in the Rules. 

 

	6.2	If a Member is treated as having left Pensionable Service and later rejoins the Scheme, each period of Pensionable Service shall be treated separately, unless the
Principal Employer and Trustees agree otherwise. 

  

	6.3	Entitlement to benefit 

  

	 	6.3.1  	This MP Rule 6.3 (Entitlement to benefit) applies to Members who meet the Preservation Limit, as set out in MP Rule 6.6 (the Preservation Limit).

  

	 	6.3.2  	A Member who is treated as having left Pensionable Service without becoming entitled to immediate benefits in accordance with MP Rule 5.1 (Normal retirement
pensions) shall remain entitled to benefits under the Scheme. The Trustees shall then provide retirement benefits for the relevant Member as set out in MP Rule 4 (Pension accounts) on the Member’s Normal Retirement Date.

  

	 	6.3.3  	However, the Member may instead choose to receive retirement benefits from: 

 

	 	6.3.3.1  	a later date (but not later than the Member’s 75th birthday); or 

  

	 	6.3.3.2  	an earlier date (but not before the Member’s Minimum Pension Age, unless the Member is suffering from an Incapacity). 

  
 27 

	 	6.3.4  	If the Member dies before commencing to receive benefits under the Scheme, death benefits shall be provided as set out in MP Rule 7.1 (Benefits on death in
Pensionable Service). 

  

	6.4	Right to transfer 

  

	 	6.4.1  	This MP Rule applies to Members who meet the Preservation Limit, as set out in MP Rule 6.6 (The Preservation Limit) below. 

 

	 	6.4.2  	Subject to C Rule 9 (Trustees’ discretion to make unauthorised payments), a Member who leaves Service at least one year before Normal Retirement Date (or,
with the Trustees’ consent, at any other time) may require the Trustees to use his or her Pension Account to acquire rights under another pension arrangement (including to any person permitted under the Financial Services and Markets Act 2000
to effect or carry out contracts of long-term insurance), so that benefits in respect of that person are provided under the other arrangement instead. 

  

	 	6.4.3  	The transfer must comply with the Transfer Value Laws and it must be paid in accordance with the Finance Act 2004. 

 

	6.5	Cash transfer sums and contribution refunds 

  

	 	6.5.1  	If a Member leaves Pensionable Service before Normal Retirement Date without satisfying the ‘three month condition’ (as defined in section 101AA(2) of
the Pension Schemes Act 1993), the Trustees shall pay the Member a contribution refund excluding investment return and interest (less tax at the appropriate rate). 

 

	 	6.5.2  	If a Member who satisfies the ‘three month condition’ leaves Pensionable Service before Normal Retirement Date with less than ‘1 year’s
Qualifying Service’, the Trustees must notify such a Member on the terms described in Chapter 5 of Part IV of the Pension Schemes Act 1993 about his or her options to take a cash transfer sum or contribution refund within a reasonable
period after the Member leaves Pensionable Service. If the Member does not choose a cash transfer sum within the period notified by the Trustees to the Member, the Trustees shall pay the Member a contribution refund excluding investment return and
interest (less tax at the appropriate rate). 

  

	 	6.5.3  	If a Member is to receive a contribution refund from the Scheme, the Principal Employer may require the Trustees to use any remaining monies in the Member’s
Pension Account after it has been paid to meet the Employers’ obligations to make contributions to the Scheme. 

  
 28 

	 	6.5.4  	Any cash transfer sum or contribution refund paid in respect of a Member under this MP Rule 6.5 (Cash transfer sums and contribution refunds) must comply with
the requirements of Chapter 5 of Part IV of the Pension Schemes Act 1993. 

  

	6.6	The Preservation Limit 

For the purposes of this MP Rule 6 (Benefits for deferred members), a Member shall meet the Preservation Limit if: 

 

	 	6.6.1  	the Member has at least 1 year’s Qualifying Service; or 

  

	 	6.6.2  	a transfer has been received by the Scheme of a payment in respect of the Member’s rights under a personal pension scheme; or 

 

	 	6.6.3  	the Member is already either a deferred or pensioner member of the Scheme (and thereby remains entitled to benefits under it from a previous period of Pensionable
Service). 

  
 29 

	7.	Benefits payable on the death of a Member 

 This Rule sets out the death benefits that Members can choose to be paid in respect of them when they die, together with the insured lump sum death in service payment. 

 

	7.1	Benefits on death in Pensionable Service 

  

	 	7.1.1  	If a Member dies in Pensionable Service before his or her Normal Retirement Date, a lump sum and a pension shall be payable. The lump sum shall be equal to the sum of
four times the Member’s Pensionable Salary plus the value of his or her Pension Account at the date of his or her death plus the value of his or her additional voluntary contributions. 

 

	 	7.1.2  	If a Member dies in Pensionable Service before his or her Normal Retirement Date, the Trustees shall pay an immediate pension from a sum equal to four times the
Member’s Pensionable Salary to his Dependants in such proportions as they see fit (except that if the Trustees have taken out an insurance policy with an Insurance Company to meet some or all of their obligations under this MP Rule 7.1
any such insured benefits will be payable only if and to the extent that the Trustees are able to recover payment under the terms of the insurance policy). The form of the pension shall be as agreed between the Trustees and the Member’s
Dependants. 

  

	7.2	Benefits on death before Normal Retirement Date after leaving Pensionable Service 

 

	 	7.2.1  	If a Deferred Member dies before his or her Normal Retirement Date (whether or not he or she is still in Service) and before the start of his or her deferred pension, a
lump sum is payable equal to the value of his or her Pension Account at the date of his or her death plus the value of his or her additional voluntary contributions. 

 

	 	7.2.2  	If a Deferred Member dies before his or her Normal Retirement Date (whether or not he or she is still in Service) and before the start of his or her deferred pension,
the Trustees shall pay the value of the Member’s Pension Account to his estate, Spouse, relatives or Dependants in such proportions as the Trustees see fit. 

 

	7.3	Benefits on death after retirement 

  

	 	7.3.1  	If a Member elects to have his or her pension guaranteed for a period of five years or less and dies within that period, a lump sum is payable equal to the total
installments of pension remaining unpaid that would have been paid to him or her had he or she survived until the end of the guarantee period but excluding any future increases which would have applied to his or her pension.

  
 30 

	 	7.3.2  	On the death of a Member after retirement there shall also be paid: 

  

	 	7.3.2.1  	any pension payable to a Dependant under MP Rule 5 (Benefits from Pension Accounts); and 

 

	 	7.3.2.2  	if the Member elected to have his or her pension guaranteed for a period of between five and ten years and dies within the period, the pension remaining unpaid that
would have been paid to the Member had he or she survived until the end of that period shall be paid to his or her estate, Spouse, relatives or Dependants in such proportions as the Trustees see fit. 

 

	 	7.3.3  	The Trustees shall provide all or any of the benefits set out below on a Member’s death after his or her benefits from the Scheme commence. These benefits shall be
chosen by each Member before his or her benefits from the Scheme commence to be paid, and the Trustees must accordingly seek to ensure that the Member makes this choice. 

 

	 	7.3.4  	The benefits payable from the Scheme are one or more of: 

  

	 	7.3.4.1  	if the Member’s pension under MP Rule 5.1 (Normal retirement pensions) is guaranteed and the Member dies before the end of the guarantee period, a pension
or lump sum under the terms of the guarantee and payable as set out in this MP Rule 7 (Benefits payable on the death of a Member); 

  

	 	7.3.4.2  	a lump sum on the terms set out in this MP Rule 7 (Benefits payable on the death of a Member) if this would comply with the requirements of sections 15 to 19 of
Part 2 of Schedule 29 of the Finance Act 2004; 

  

	 	7.3.4.3  	an immediate non-assignable and non-commutable pension for his or her Spouse or a Dependant. The Trustees may treat an individual as a Member’s Spouse for these
purposes if that individual was the Member’s Spouse at the time the Member’s pension commenced, but who has subsequently ceased to be the Member’s Spouse. 

  
 31 

	7.4	Disposal of lump sum death benefits 

  

	 	7.4.1  	The Trustees shall pay any lump sum death benefit to (or for the benefit of) one or more of the Beneficiaries in such shares as the Trustees decide.

  

	 	7.4.2  	A Member’s “Beneficiaries” for these purposes are the Member’s widow or widower; the Member’s grandparents and their descendants and the
Spouses of those descendants; the Member’s Dependants; any person with an interest in the Member’s estate (but not including the Crown, the Duchy of Lancaster or the Duke of Cornwall); and any person nominated by the Member in writing to
the Trustees. 

  

	 	7.4.3  	If any part of the lump sum has not been paid or applied within 2 years of the Member’s death, the Trustees shall keep that part in a separate account outside the
Scheme and pay it to a Beneficiary in accordance with this MP Rule 7.4 (Disposal of lump sum death benefits) as soon as possible afterwards. No lump sum shall be paid if there are no surviving Beneficiaries when the Member dies,

  

	 	7.4.4  	The Trustees may: 

  

	 	7.4.4.1  	pay all or part of any lump sum payable under this MP Rule 7 (Benefits payable on the death of a Member) to the trustees of a different trust (providing that
only Beneficiaries may be entitled to any pension from this trust); or 

  

	 	7.4.4.2  	hold, or require other trustees to hold, all or part of any lump sum payable under this MP Rule 7 (Benefits payable on the death of a Member) on trust for the
benefit of one or more of the Beneficiaries from time to time. This trust shall include any powers and provisions (including as to selection and variation) as the Trustees consider appropriate. 

 

	 	7.4.5  	In exercising any of the powers the Trustees may have under this MP Rule 7.4 (Disposal of lump sum death benefits), the Trustees may (but shall not be bound to)
have regard to any wishes that the Member may have expressed in writing to the Trustees regarding the application of any benefit to which this MP Rule 7.4 (Disposal of lump sum death benefits) applies. 

 

	 	7.4.6  	On the death of a Deferred Member who has left Service but has not retired on pension, the Trustees shall pay any lump sum benefit payable under the Scheme to the
Member’s legal personal representatives (but not including the Crown, the Duchy of Lancaster or the Duke of Cornwall). 

  
 32 

	 	7.4.7  	In the case of a Member who had retired before his or her Normal Retirement Date, or who had left Service before that date and was entitled to a deferred pension, the
Trustees are not required to hold the lump sum in a separate account outside the Scheme at the expiry of the two year period if they have not paid or applied the lump sum at that date. 

 

	7.5	Children’s pensions 

  

	 	7.5.1  	A pension shall be payable in respect of the Member’s Children if: 

  

	 	7.5.1.1  	a pension is being paid to a Spouse under MP Rule 7.1 (Benefits on death in Pensionable Service) , MP Rule 7.2 (Benefits on death before Normal Retirement
Date after leaving Pensionable Service) or MP Rule 7.3 (Benefits on death after retirement) and on the date of the Spouse’s death there are Children; or 

 

	 	7.5.1.2  	a Spouse’s pension would have been in payment but for the fact that the Spouse had predeceased the Member and on the date of the Member’s death there are
Children. 

  

	 	7.5.2  	The pension shall be equal to the annual pension the Spouse was receiving at the date of his or her death, as increased from time to time, or which he or she would have
received at the date of the Member’s death. 

  

	 	7.5.3  	The pension payable in respect of a Member’s Children under this MP Rule 7.5 (Children’s pension) shall be divided in such proportions as the Trustees
shall decide between the children who qualify as Children at the date of payment. The pension shall cease when the last Child dies or ceases to be a Child, whichever occurs first. 

 

	8.	Securing pensions under the Scheme 

 This Rule sets out the ways in which pensions which be secured for members, including to give members the flexibility under the Finance Act 2004 to request a short term annuity or income withdrawal.

  
 33 

	8.1	Annuity contract 

  

	 	8.1.1  	Subject to MP Rule 8.2 (Other pension options), the Trustees shall use the Member’s Pension Account to buy an annuity contract from an Insurance Company.
The amount of the pension shall depend on the rates quoted by the Insurance Company. If the Member asks the Trustees to buy an annuity from a particular Insurance Company, the Trustees shall comply with the Member’s request.

  

	 	8.1.2  	An annuity may be bought in the Member’s name, the Trustees’ name, or in the name of the person for whom the benefit is to be provided. If the contract is
bought in the Trustees’ name, the Trustees may transfer it to the Member or another person at any time. 

  

	8.2	Other pension options 

  

	 	8.2.1  	The Trustees may, at the request of a Member and with the consent of the Principal Employer, allow the Member at any time before age 75 to choose to use some or all of
the Member’s Pension Account to buy an annuity contract from an Insurance Company or to take a pension payable from the Scheme in accordance with the requirements for a short term annuity or income withdrawal (as applicable) under the Finance
Act 2004. 

  

	 	8.2.2  	The Trustees shall tell the Member the terms on which a short term annuity or income withdrawal are available under the Scheme. In particular, a Member in receipt of
payments under income withdrawal from the Scheme must give the Trustees at least one month’s notice in writing if he or she wishes the payments under income withdrawal no longer to be paid. 

 

	8.3	Payment of pensions 

  

	 	8.3.1  	Pensions are payable monthly, except that the Trustees may pay pensions less often. 

 

	 	8.3.2  	Any pensions secured with an annuity contract shall be paid in accordance with the terms of the contract. This shall be the case for most pensions under the Scheme.

  
 34 

	9.	Power to vary the Scheme’s benefits 

 This Rule sets out the terms on which an Employer can ask the Trustees to pay someone benefits from the Scheme that are different to those described in the other provisions of the Rules. 

 

	9.1	If the Principal Employer agrees and the Employer pays any additional contributions which the Trustees decide are appropriate (after consulting the Scheme Actuary), the
Trustees may provide: 

  

	 	9.1.1  	increased or additional benefits in respect of any Member; 

  

	 	9.1.2  	different benefits in respect of a Member, or on different terms, from those set out in the other provisions of the Rules; or 

 

	 	9.1.3  	benefits in respect of any other person for whom benefits can be provided under the Scheme (including any Employee or former Employee). 

 

	9.2	Benefits provided under this MP Rule 9 (Power to vary the Scheme’s benefits) shall be consistent with the Preservation, Revaluation, Contracting-out and
Transfer Value Laws and the Scheme’s tax status as a registered pension scheme under the Finance Act 2004. 

  
 35 

	10.	Other ways of converting pension into a lump sum 

 This Rule sets out the terms on which a Member’s pension may be paid instead as a lump sum other than when taking a tax-free cash sum on retirement. 

 

	10.1  	Trivial pension 

  

	 	10.1.1  	The Trustees may pay a Member the whole of his benefits as a lump sum in accordance with paragraph 7 of Schedule 29 to the Finance Act 2004 where the Member’s
benefits, together with all benefits due to the Member from all other registered pension schemes, is no more than 1% of the Standard Lifetime Allowance. 

  

	10.2  	Serious ill health 

  

	 	10.2.1  	Provided that the requirements of paragraph 4 of Schedule 29 to the Finance Act 2004 are met, the Trustees may pay a Member the whole of his benefits as a lump sum.
This shall extinguish the Member’s entitlement under the Scheme except that the Trustees shall retain the required amount of any contracted-out rights to purchase a pension for any widow, widower or surviving Civil Partner as required under the
Contracting-out Laws. 

  

	10.3  	Benefits in excess of the lifetime allowance 

  

	 	10.3.1  	If a Member’s benefits exceed the lifetime allowance applicable to the Member under the Finance Act 2004, the Trustees may pay the excess to the Member as a
pension or as a Lifetime Allowance Excess Lump Sum. The lump sum will be calculated on such basis as the Trustees may determine after considering the advice of the Scheme Actuary, and which is consistent with the Contracting-out Laws.

  
 36 

	11.	Special benefits 

 This
Rule sets out the terms that apply to Members who have benefits and/or contributions provided for them under the Scheme on a different basis to that set out elsewhere in the Rules. 

 

	11.1  	Civil Partners 

 With
effect on and from 5 December 2005, all references in the Rules to a “spouse” or an “ex-spouse” shall include a Civil Partner or a former Civil Partner, all references to a widow or widower shall include a
surviving Civil Partner, and all references to marriage shall include Civil Partnership and references to married shall be interpreted accordingly. 
 In relation to Contracted-Out Rights this modification shall only apply to pensionable service post 6 April 1988. In relation to all other benefits it applies to the entirety of a Member’s
pensionable service. 

  
 37 

	12.	Transfers to and from the Money Purchase Section

  

	12.1  	Transfers into the Money Purchase Section 

  

	 	12.1.1  	Subject to MP Rule 12.1.3, the Trustees may accept from a Former Scheme a Transfer Amount in respect of any Member or other person.

  

	 	12.1.2  	The Trustees may give any relevant undertakings in respect of the Transfer Amount and shall provide such benefits under the Scheme for and in respect of the Member or
other person to whom the Transfer Amount relates as the Trustees shall determine on actuarial advice and with the consent of the Principal Employer. The benefits shall comply with the preservation requirements of the Pension Schemes Act 1993 and be
consistent with the Scheme’s status as a registered pension scheme under the Finance Act 2004. 

  

	 	12.1.3  	The Trustees may only accept a Transfer Amount under this MP Rule 12 (Transfers to and from the Money Purchase Section) if: 

 

	 	12.1.3.1  	the Trustees are satisfied that the transfer is consistent with the Scheme’s status as a registered pension scheme under the Finance Act 2004;

  

	 	12.1.3.2  	HMRC has approved the first transfer to the Scheme if, at the time when it is to be accepted, the Scheme has not been approved as a registered pension scheme;

  

	 	12.1.3.3  	the transfer satisfies the requirements of the Pension Schemes Act 1993 and any regulations made under that Act relating to transfers; and 

 

	 	12.1.3.4  	the Trustees comply with any undertaking given by them to HMRC. 

  

	 	12.1.4  	The Trustees shall obtain from the Former Scheme a statement certifying: 

  

	 	12.1.4.1  	the amount of the Transfer Amount which represents the contributions which the Member was obliged to make under the Former Scheme, and the Trustees shall treat that
amount as if it were derived from contributions made by the Member under MP Rule 3 (Contributions); 

  
 38 

	 	12.1.4.2  	the amount of the Transfer Amount which represents the voluntary contributions made by the Member under the Former Scheme, and the Trustees shall treat that amount as
if it were derived from voluntary contributions made by the Member under MP Rule 3 (Contributions); 

  

	 	12.1.4.3  	what conditions, if any, apply to the refund of those contributions to the Member; 

 

	 	12.1.4.4  	the period of service of the Member or other person in the Former Scheme which ranks as qualifying service for the purposes of the Pension Schemes Act 1993; and

  

	 	12.1.4.5  	the maximum amount (if any) which could be taken by the Member or other person as a cash sum under the rules of the Former Scheme. 

 

	 	12.1.5  	The Trustees may accept a Transfer Amount in respect of a member of a Former Scheme without his or her consent to the transfer. If that member had acquired a right to
the cash equivalent of the benefits which had accrued to him under the Former Scheme but had not exercised his options under that scheme, he acquires a right to the Cash Equivalent of that benefit. He may exercise his right to that Cash Equivalent
irrespective of whether or not his Pensionable Service under the Scheme has ended. 

  

	12.2  	Transfers out of the Money Purchase Section 

 The Trustees may, in accordance with the restrictions in this MP Rule 12 (Transfers to and from the Money Purchase Section), pay a Transfer Payment in respect of a Relevant Person to a New Scheme.
The Transfer Payment may be a cash sum or other assets as the Trustees decide. 
  

	12.3  	Statutory transfers 

 If a
Deferred Member has validly exercised a right to a Cash Equivalent under by requiring the Trustees to apply the Cash Equivalent to acquire transfer credits under a New Scheme, the Trustees shall make a Transfer Payment to the New Scheme if that
scheme agrees to accept it. If the Member is dividing his Cash Equivalent between different schemes, the Trustees shall transfer the parts of his Cash Equivalent as he directs. 

 

	12.4  	Discretionary transfers 

If a Deferred Member or other Relevant Person does not have a right to a Cash Equivalent (or if he has a right, but has not exercised it)
the Trustees may make a Transfer Payment in respect of him to a New Scheme if that scheme agrees to accept it. 

  
 39 

	12.5	Bulk transfers 

  

	 	12.5.1  	If the Pensionable Service of a group of Members ends and those Members become entitled to rights under a New Scheme, the Trustees may make a Transfer Payment (subject
to MP Rule 12.6) in respect of the group of Members to the New Scheme if that scheme agrees to accept it. The transfer may be made without the consent of the Members concerned if the New Scheme is a registered pension scheme under the Finance
Act 2004 and the conditions set out in Regulation 12 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (S.I. 1991/167) are satisfied. 

 

	 	12.5.2  	The Trustees may also make a Transfer Payment to a scheme registered as a registered pension scheme under the Finance Act 2004 without the consent of the Members
concerned if the Scheme is being wound up and the New Scheme applies to employment with the same Employer. 

  

	12.6  	The Transfer Payment referred to in MP Rule 12.5 (Bulk transfers) is the total of the Members’ Cash Equivalents or such other amount which the Trustees
after obtaining actuarial advice shall agree with the Principal Employer is relevant to the group of Members concerned, having regard to the provisions of C Rule 13.1 (Partial termination of the Scheme) and C Rule 14 (Winding-up) and
to the portion of the Fund available for transfer. 

  

	12.7  	In calculating the Transfer Payment, the Trustees, after obtaining actuarial advice, may make an allowance for the reasonable costs and expenses which have been
incurred in the administration and management of the Scheme in connection with the transfer. 

  

	12.8  	General 

  

	 	12.8.1  	The Trustees shall comply, in relation to each transfer, with: 

  

	 	12.8.1.1  	HMRC requirements so that the Scheme’s status as a registered pension scheme is not prejudiced and with any undertakings given by the Trustees to HMRC; and

  

	 	12.8.1.2  	the preservation requirements specified in or under Sections 69 to 83 of the Pension Schemes Act 1993 to the extent applicable. 

  
 40 

	 	12.8.2  	The Transfer Payment shall be subject to the following conditions: 

  

	 	12.8.2.1  	the Trustees shall, if appropriate, find out from the New Scheme the Act and Section under which the New Scheme is registered; 

 

	 	12.8.2.2  	the Trustees shall certify to the New Scheme the amount of the Transfer Payment which represents the Member’s contributions and the Member’s AVC Account and
shall notify the New Scheme of any restriction placed on the refund of these amounts; 

  

	 	12.8.2.3  	the Trustees shall certify to the New Scheme the period of Qualifying Service to which the transfer relates and the maximum permitted cash sum commutation in respect of
the Transfer Payment; and 

  

	 	12.8.2.4  	unless the Transfer Payment is made under MP Rule 12.3 (Statutory transfers), the Trustees shall ensure that the Transfer Payment shall not be less than the
value of the Member’s Pension Account and AVC Account. 

  

	 	12.8.3  	The Trustees may make a Transfer Payment in respect of a Member without his or her written consent only: 

 

	 	12.8.3.1  	in accordance with the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (SI 1991/167); and 

 

	 	12.8.3.2  	if they are reasonably satisfied that, at the date on which the Transfer Payment is made, it is at least equal to the value (as certified by the Scheme Actuary) of the
benefits which have accrued to or in respect of the Member under the Scheme, taking into account the preservation requirements of the Pension Schemes Act 1993. 

 

	 	12.8.4  	The receipt of the New Scheme in respect of the Transfer Payment shall, except as otherwise provided by statute, discharge the Trustees of all liability under the
Scheme to and in respect of the Relevant Person in respect of those benefits represented by the Transfer Payment. This discharge is in addition to and without prejudice to any other discharge given to the Trustees. The Trustees shall be under no
liability to the application of the Transfer Payment by the New Scheme. 

  
 41 

	13.	Buy-out Policies 

  

	13.1  	Statutory buy-out 

 If a
Deferred Member has validly exercised a right to a Cash Equivalent by requiring the Trustees to apply the Cash Equivalent to purchase a Buy-out Policy, the Trustees shall, subject to the Contracting-out Laws and the restrictions in this MP Rule
13 (Buy-out Policies), pay the Member’s Cash Equivalent to the Insurance Company selected by the Member and from whom the Buy-out Policy is to be purchased. If the Member is dividing his or her Cash Equivalent between different Buy-out
Policies, the Trustees shall apply the parts of his or her Cash Equivalent as he directs. 
  

	13.2  	Discretionary buy-out 

The Trustees may, with the consent of the Principal Employer, exercise their discretion and apply this MP Rule 13 (Buy-out
Policies) in respect of a Member or other beneficiary of the Scheme if that person makes a written request to the Trustees or gives his or her written consent in the form required or acceptable to the Trustees. 

 

	13.3  	General 

 A Buy-out Policy
may be purchased in the name of, or assigned to, the Member or other beneficiary concerned or a trustee for the benefit of the Member or beneficiary. 
 The Member or other beneficiary shall have an absolute right to the benefits derived from the Buy-out Policy. Upon the election of the Member and subject to the Scheme’s status as a registered
pension scheme under the Finance Act 2004 not being prejudiced, the But-out Policy may confer benefits or options which are alternative to the benefits otherwise payable under the Scheme. Provision may also be made either under the Buy-out Policy or
otherwise for any lump sum payable on the death of the Member to be held upon discretionary trusts for the benefit of any one or more of the Member’s Beneficiaries. 

 

	13.4  	Conditions of buying-out 

The Trustees shall secure the issue of the Buy-out Policy only on terms which shall: 

 

	 	13.4.1  	satisfy the requirements of HMRC; and 

  

	 	13.4.2  	satisfy the requirements of the Pension Schemes Act 1993. 

  
 42 

	13.5  	The Trustees may impose the following additional conditions and shall do so if the Buy-out Policy is purchased for a Member who leaves Pensionable Service at least one
year before his or her Normal Retirement Date: 

  

	 	13.5.1  	the benefits secured by the Buy-out Policy may be commuted only if: 

  

	 	13.5.1.1  	the conditions in MP Rule 5 (Benefits from Pension Accounts) are satisfied; or 

 

	 	13.5.1.2  	the Member has attained the age of 50 (or age 55 on or after 6 April 2010), or his or her earning capacity is destroyed or seriously impaired by physical or mental
deterioration, or the conditions in MP Rule 5 (Benefits from Pension Accounts) are satisfied and, in any case, the Member has requested or consented to the commutation. 

 

	 	13.5.2  	the Insurance Company must promise the Member, or the trustees of a trust established for the benefit of him or her and, if appropriate, his or her Dependants to pay
the benefits secured by the Buy-out Policy to him or her or, as the case may be, to his or her Dependants or to the trustees of such a trust; 

  

	 	13.5.3  	the Policy must be endorsed with the length of the Member’s Qualifying Service or, if his or her Qualifying Service exceeds one year, a statement to that effect.

  

	13.6  	At the date on which a Buy-out Policy is to be purchased under this MP Rule 13 (Buy-out Policies), the Trustees must be reasonably satisfied (on obtaining the
advice of the Scheme Actuary) that the amount to be applied is at least equal to the value of the Member’s Pension Account and AVC Account (or, if only part of a Cash Equivalent is required to be applied, of the benefits to which the amount to
be applied relates), taking into account the preservation requirements of the Pension Schemes Act 1993. 

  

	13.7  	In purchasing one or more Buy-out Policies the Trustees must obtain the consent of the Member or, if the benefits being secured are in respect of the Member and payable
to another beneficiary, that other person, unless the Scheme is being wound-up or the following conditions apply: 

  

	 	13.7.1  	the Buy-out Policy is taken out or entered into at least 12 months after the Member left Pensionable Service; 

  
 43 

	 	13.7.2  	the Member has less than 5 years’ Qualifying Service; 

  

	 	13.7.3  	at least 30 days before the Buy-out Policy is taken out or entered into, the Trustees give a written notice to the Member or other beneficiary of the Scheme of their
intention to take out or enter into one or more Buy-out Policies; and 

  

	 	13.7.4  	when the Trustees agree with the Insurance Company to take out or enter into the Buy-out Policy, there is no outstanding application by the Member for a Cash
Equivalent. 

  

	13.8  	The Buy-out Policy may (and shall in relation to a Member who leaves Pensionable Service at least one year before his or her Normal Retirement Date) include provisions
which: 

  

	 	13.8.1  	subject to the Member’s written consent, enable a transfer payment to be made from the Buy-out Policy to a New Scheme of which the Member becomes a member; and

  

	 	13.8.2  	enable benefits to be provided by the purchase of another annuity, assurance contract or policy from another Insurance Company which satisfies the requirements of this
MP Rule 13 (Buy-out Policies). 

  

	13.9	In respect of those benefits in respect of which the Trustees have purchased a Buy-out Policy, the receipt of the Insurance Company shall, except as otherwise provided
by statute, discharge the Trustees of all liability under the Scheme in respect of the Member or other beneficiary concerned. 

  
 44 

 

 
 Dated 28 May 2010 
  

	(1)	CHAUCER SYNDICATES LIMITED 

  

	(2)	E H GILMOUR, E N NOBLE, S A SMITH, BRIDGE TRUSTEES LIMITED. M I SMITH and D C TURNER 

 
  
 Deed of amendment 
  
  

Chaucer Pension Scheme 
  

					
	Eversheds LLP	  	T +44 (0) 845 497 9797	  	
	115 Colmore Row	  	F +44 (0) 845 497 1900	  	
	Birmingham	  	Int +44 121 232 1000	  	
	B3 3AL	  	DX 13004 Birmingham	  	
		  	www.eversheds.com	  	

 THIS DEED OF AMENDMENT is made on 28 May 2010 

BY 
  

	(1)	CHAUCER SYNDICATES LIMITED (registered number 184915) whose registered office is at Plantation Place, 30 Fenchurch Street, London EC3M 3AD (the
“Principal Employer”); and 

  

	(2)	EWEN HAMILTON GILMOUR of
                                         
        EDWARD NELSON NOBLE of
                                         
                        STEPHEN ANDREW SMITH of
                                         
                BRIDGE TRUSTEES LIMITED (registered number 02600168) whose registered office is at 115 Colmore Row, Birmingham, West Midlands B3 3AL MICHAEL IAN
SMITH
                                         
            and DAVID CHARLES TURNER of
                                         
                    (the “Trustees”). 

 BACKGROUND 
  

	(A)	The Principal Employer is the current principal employer in relation to the Chaucer Pension Scheme (the “Scheme”). The Trustees are the current
trustees of the Scheme. The Scheme is governed by Rules dated 10 November 2008 (the “Rules”). 

  

	(B)	C Rule 15 (Amendment) of the Rules provides that the Principal Employer may with the consent of the Trustees at any time together by deed amend, replace or add
to the Rules and may do so retrospectively, subject to sections 67 to 67I of the Pensions Act 1995, and provided that no amendment, replacement or addition may be made which would prejudice the Scheme’s status as a registered scheme. The
Principal Employer with the consent of the Trustees wishes to amend the Rules with effect on and from 1 June 2010 (the “Effective Date”) to make miscellaneous changes to the final salary and money purchase sections of the
Scheme, to increase the normal retirement date to age 65 in the money purchase section and to make changes to the final salary section of the Scheme in accordance with the announcements to members dated 28 May 2010 so that

  

	 	(i)	from 1 June 2010 increases in Pensionable Salary are limited to the lower of the actual monetary increase in Basic Pay over the previous year and 5% of Pensionable
Salary twelve months earlier; 

  

	 	(ii)	from the Effective Date benefit accrues at the rate of 1/75th of Final Pensionable Salary for each year of Pensionable Service; 

 

	 	(iii)	from the Effective Date Normal Retirement Date is increased to age 65; 

  

	 	(iv)	the contributions of a member to the Scheme are increased to 5% of the Member’s Pensionable Salary from 1 May 2011 and to 6% of the Member’s Pensionable
Salary from 1 May 2014; 

  

	 	(v)	benefit accrued after the Effective Date will be subject to actuarial reduction if payment commences before certain specified ages; 

 

	 	(vi)	from the Effective Date the lump sum payable on death in service will be based upon Basic Salary and not Pensionable Salary; 

 

	 	(vii)	a late retirement factor will be applied to benefit accrued before 1 June 2010 where the Member retires after the age of 60, and this advantages the Member, and

  

	 	(viii)	the benefits applicable to Executive Members are amended and documented. 

  

	(C)	The Trustees have received legal advice confirming that a certificate made under section 67 (the subsisting rights provisions) of the Pensions Act 1995 is not needed
for the changes set out in this deed and a certificate of confirmation under Regulation 42 (alteration of rules of contracted-out schemes) of The Occupational Pension Schemes (Contracting-out) Regulations 1996 is attached. 

OPERATIVE PROVISIONS 
 The Principal
Employer with the consent of the Trustees makes the amendments set out in this deed to the Rules of the Final Salary Section with effect from the Effective Date in accordance with C Rule15 (Amendment): 

 

	1.	Limits on increases in Pensionable Salary  

  

	1.1	FS Rule 1 (Meaning of defined terms) is amended by deleting paragraph (1) of the definition of Final Pensionable Salary and replacing it with the following:

 “(1) his or her Pensionable Salary on his or her Normal Retirement Date (or on the earlier date of his or
her death or termination of Pensionable Service); and” 
  

	1.2	FS Rule 1 (Meaning of defined terms) is amended by deleting the definition of Pensionable Salary and replacing it with the following: 

 

			
	“ “Pensionable Salary”	  	in relation to a Member is calculated on the day he or she becomes a Pension Member and on any day thereafter and means the Member’s Basic Salary. However with effect on and
from 1 June 2010 annual increases in Pensionable Salary will be capped at 5% in the following manner:
		
		  	(a) If the Member’s Basic Salary increases in the period from 1 June 2010 to 1 January 2011 his or her Pensionable Salary will increase by the lower of the actual
monetary increase in the Member’s Basic Salary in that period and 5% of the Member’s Pensionable Salary at 1 June 2010;

  
 3 

			
		
		  	(b) If the Member’s Basic Salary increases in any 12 month period ending on 1 January of 2012 or of any subsequent year his Pensionable Salary will increase by the
lower of the actual monetary increase in the Member’s Basic Salary in that period and 5% of the Member’s Pensionable Salary at the start of the period;”

  

	2.	Contribution rate 

  

	2.1	FS Rule 3.2.1 (Members’ basic contributions) is amended by deleting the first sentence and replacing it with the following: 

“Each Member in Pensionable Service (who is not an Executive Member) shall contribute to the Scheme at a rate of 4% of his or her
Pensionable Salary until 30 April 2011, and at a rate of 5% of his or her Pensionable Salary from 1 May 2011 until 30 April 2014, and at a rate of 6% of his or her Pensionable Salary from 1 May 2014. An Executive Member in
Pensionable Service shall contribute to the Scheme at a rate of 6% of his or her Pensionable Salary from 1 June 2010. A Member’s contributions may at any time be at such other rate as the Trustees may determine with the agreement of the
Principal Employer and notify to the Members. “ 
  

	3.	Normal Retirement Date  

  

	3.1	FS Rule 1 (Meaning of defined terms) is amended by deleting the definition of Normal Retirement Date and replacing it with the following:

 “ “Normal Retirement Date” means a Member’s 65th birthday;” 

 

	3.2	FS Rule 4.2.1 (Pension on early retirement) is amended by deleting the second sentence and replacing it with the following: 

“Subject to the Contracting-out Laws, and with the consent of the Employer and the Trustees (unless the Member is aged over 60 or
suffering from an Incapacity), the Member shall be entitled to receive an immediate annual pension as an alternative to any benefit payable.” 

  
 4 

	3.3	FS Rule 4.3.1 (Early retirement not due to Incapacity) is amended by deleting it and replacing it with the following: 

“Subject to FS Rule 4.2 (Pension on early retirement), a Member who is not an Executive Member and who retires from Service on
or after his or her 55th birthday and before his or her Normal retirement Date other than as a result of Incapacity is entitled to an immediate annual pension The pension will be equal to that to which he or she would otherwise have been entitled
under FS Rule 4.1 (Pension on retirement at Normal Retirement Date), calculated on his or her Final Pensionable Salary and his or her Pensionable Service completed at the date of his or her actual retirement. The pension accrued before
1 June 2010 shall be reduced in respect of any period between the date of the Member’s actual retirement and his or her 60th birthday. The pension accrued on and after 1 June 2010 shall be reduced in respect of the period between the
date of the Member’s actual retirement and his or her: 
 4.3.1.1     60th birthday if
the Member was born on or before 1 June 1955; 
 4.3.1.2     61st birthday if the Member
was born between 2 June 1955 and 1 June 1956; 
 4.3.1.3     62nd birthday if the
Member was born between 2 June 1956 and 1 June 1957; 
 4.3.1.4     63rd birthday
if the Member was born between 2 June 1957 and 1 June 1958; 
 4.3.1.5     64th
birthday if the Member was born between 2 June 1958 and 1 June 1959, and 
 4.3.1.6
    65th birthday if the Member was born on or after 2 June 1959. 
 Any reduction shall be of an amount
determined by the Trustees, and certified by the Scheme Actuary as reasonable.” 
  

	3.4	FS Rule 4.4.2 (Pension on Incapacity retirement) is amended by deleting it and replacing it with the following: 

“ A pension payable under this FS Rule 4.4 (Pension on incapacity retirement) to a Member who is not an Executive Member will
be equal to the pension to which he or she would otherwise have been entitled under FS Rule 4.1 (Pension on retirement at Normal Retirement Date) had the date of his or her actual retirement been his or her Normal Retirement Date, calculated on his
or her Final Pensionable Salary at the date of his or her actual retirement and his 

  
 5 

	 	
or her prospective Pensionable Service up to age 60. The pension shall be reduced in respect of any period between the date of the Member’s actual retirement and his or her 60th birthday.
Any reduction shall be of an amount determined by the Trustees, and certified by the Scheme Actuary as reasonable.” 

  

	3.5	MP Rule 1 (Meaning of defined terms) is amended by deleting the definition of “Normal Retirement Date” and replacing it with the following:

 ““Normal Retirement Date” means a Member’s 65th birthday;” 

 

	4.	Accrual rate  

  

	4.1	FS Rule 4.1.1 (Pension on retirement at Normal Retirement Date) is amended by deleting it and replacing it with the following: 

“A Member (who is not an Executive Member) who retires from Service at Normal Retirement Date and who was in Pensionable Service on
the day before that date is entitled to an immediate annual pension equal to the sum of: 
 A/60 x Final Pensionable
Salary, 
 and 
 (B-A)/75 x Final Pensionable Salary 
 where 

A is the Member’s years of Pensionable Service completed before 1 June 2010, plus an additional proportion for each additional
complete month of Pensionable Service before 1 June 2010; 
 B is the Member’s total years of Pensionable Service,
subject to a maximum of 40 years, plus an additional proportion for each additional complete month of Pensionable Service 

PROVIDED ALWAYS THAT for so long as the Scheme remains subject to the Contracting-out Laws the pension so calculated shall not be
less than would be provided for the Member under a reference scheme as described in section 12B of the Pension Schemes Act 1993.” 
  

	5.	Benefits on death in Pensionable Service before Normal Retirement Date  

 

	5.1	FS Rule 7.1.3 (Benefits on death in Pensionable Service before Normal Retirement Date) is amended by deleting it and replacing it with the following:

 “For a Pension Member the lump sum shall be equal to the sum of 4 times the Member’s Basic Salary plus
his or her Member Contributions (excluding interest) paid up to the date of his or her death plus the value of his or her additional voluntary contributions.” 

  
 6 

	5.2	FS Rule 7.1.4 (Benefits on death in Pensionable Service before Normal Retirement Date) is amended by deleting it and replacing it with the following: 

 “For a Pension Member a pension is immediately payable to his or her Spouse equal to two thirds of the
pension to which the Pension Member would have been entitled under FS Rule 4.1 (Pension on retirement at Normal Retirement Date) at his or her Normal Retirement Date had he or she continued in Pensionable Service until his or her 

 

	 	7.1.4.1  	60th birthday if the Member was born on or before 1 June 1955; 

  

	 	7.1.4.2  	61st birthday if the Member was born between 2 June 1955 and 1 June 1956; 

 

	 	7.1.4.3  	62nd birthday if the Member was born between 2 June 1956 and 1 June 1957; 

 

	 	7.1.4.4  	63rd birthday if the Member was born between 2 June 1957 and 1 June 1958; 

 

	 	7.1.4.5  	64th birthday if the Member was born between 2 June 1958 and 1 June 1959, and 

 

	 	7.1.4.6  	65th birthday if the Member was born on or after 2 June 1959. 

  

	6.	Retirement on or after the age of 60  

 FS Rule 4 (Active Members’ immediate pensions) is amended by the addition of the following Rule which shall be numbered FS Rule 4.6 : 

“Pension on retirement over the age of 60 
 If a Member retires under any of the preceding provisions of this FS Rule 4 (Active Members’ immediate pensions) on or after his or her 60th birthday any pension accrued before 1 June
2010 shall be calculated as if the Member had left Service at age 60 and increased by an amount determined by the Trustees on the advice of the Scheme Actuary in respect of the period between the Member’s 60th birthday and his or her actual
date of retirement.” 

  
 7 

	7.	Retirement after leaving Service  

  

	7.1	FS Rule 5.3.1 (Preserved pension at Normal Retirement Date) is amended by deleting the second sentence and replacing it with the following:

 “The pension shall be calculated in accordance with FS Rule 4.1 and FS Rule 4.6 (Pension on
retirement at Normal Retirement Date) based on the Member’s Pensionable Service to the date of leaving Pensionable Service and the Member’s Final Pensionable Salary at the date of leaving Pensionable Service.” 

 

	7.2	FS Rule 5.4.1.2 (Other options for the payment of preserved pension) is amended by deleting the second sentence and replacing it with the following:

 “The pension shall be adjusted by an amount determined on a basis certified by the Scheme Actuary to
reflect early or late retirement relative to the Member’s 60th birthday in respect of the pension accrued (or deemed to be accrued) before 1 June 2010. It shall be further adjusted relative to the following dates in respect of the pension
accrued (or deemed to be accrued) on or after 1 June 2010 by Members who are not Executive Members: 
  

	 	5.4.1.2.1  	60th birthday if the Member was born on or before 1 June 1955; 

  

	 	5.4.1.2.2  	61st birthday if the Member was born between 2 June 1955 and 1 June 1956; 

 

	 	5.4.1.2.3  	62nd birthday if the Member was born between 2 June 1956 and 1 June 1957; 

 

	 	5.4.1.2.4  	63rd birthday if the Member was born between 2 June 1957 and 1 June 1958; 

 

	 	5.4.1.2.6  	64th birthday if the Member was born between 2 June 1958 and 1 June 1959, and 

 

	 	5.4.1.2.7  	65th birthday if the Member was born on or after 2 June 1959. 

  

	8.	Executive Members  

  

	8.1	FS Rule 1 (Meaning of defined terms) is amended by the addition of the following definition in its correct alphabetical position: 

 

	 	““Executive Member”  	means a Member who has been notified in writing by his Employer that he is to be treated for the purposes of the FS Rules as an Executive Member;”

  
 8 

	8.2	FS Rule 4.1.1 (Pension on retirement at Normal Retirement Date) is amended by the addition of the following sub-Rule which shall be numbered FS Rule 4.1.2
and all subsequent sub-Rules shall be renumbered accordingly: 

 “An Executive Member who retires from Service
at Normal Retirement Date and who was in Pensionable Service on the day before that date is entitled to an immediate annual pension equal to the sum of: 
 A/45 x Final Pensionable Salary, 
 and 

(B-A)/60x Final Pensionable Salary 
 where 
 A is the Member’s years of Pensionable Service completed before
1 June 2010, plus an additional proportion for each additional complete month of Pensionable Service before 1 June 2010; 
 B is the Member’s total years of Pensionable Service, subject to a maximum of 40 years, plus an additional proportion for each additional complete month of Pensionable Service. 

 

	8.3	FS Rule 4.3 (Early retirement not due to Incapacity) is amended by the addition of the following sub-Rule which shall be numbered FS Rule 4.3.2:

 “Subject to FS Rule 4.2 (Pension on early retirement), an Executive Member who retires from Service
on or after his or her 55th birthday and before his or her Normal Retirement Date other than as a result of Incapacity is entitled to an immediate annual pension. The pension will be equal to that to which he or she would otherwise have been
entitled under FS Rule 4.1 (Pension on retirement at Normal Retirement Date), calculated on his or her Final Pensionable Salary and his or her Pensionable Service completed at the date of his or her actual retirement. The pension accrued
before 1 June 2010 shall be reduced in respect of any period between the date of the Executive Member’s actual retirement and his or her 60th birthday. The pension accrued on and after 1 June 2010 shall be reduced in respect of the
period between the date of the Executive Member’s actual retirement and his or her 65th birthday. Any reduction shall be of an amount determined by the Trustees, and certified by the Scheme Actuary as reasonable.” 

  
 9 

	8.4	FS Rule 4.4 (Pension on Incapacity retirement) is amended by the addition of the following sub-Rule which shall be numbered FS Rule 4.4.3 and all
subsequent sub-Rules shall be renumbered accordingly: 

 “A pension payable under this FS Rule 4.4
(Pension on incapacity retirement) to an Executive Member will be equal to the pension to which he or she would otherwise have been entitled under FS Rule 4.1 (Pension on retirement at Normal Retirement Date) had the date of his or her
actual retirement been his or her Normal Retirement Date, calculated on his or her Final Pensionable Salary at the date of his or her actual retirement and his or her prospective Pensionable Service up to age 60. The pension accrued before
1 June 2010 shall be reduced in respect of any period between the date of the Executive Member’s actual retirement and his or her 60th birthday. The pension accrued on and after 1 June 2010 shall be reduced in respect of the period
between the date of the Executive Member’s actual retirement and his or her 65th birthday. Any reduction shall be of an amount determined by the Trustees, and certified by the Scheme actuary as reasonable.” 

 

	8.5	FS Rule 5.4.1.2 (Other options for the payment of preserved pension) is further amended by the addition of the following sentence at its end:

 “For an Executive Member it shall be adjusted relative to his or her 65th birthday in respect of the
pension accrued (or deemed to be accrued) on or after 1 June 2010.” 
  

	9.	Miscellaneous amendments  

  

	9.1	FS Rule 1 (Meaning of defined terms) is amended by deleting the first paragraph of the definition of “Child” and replacing it with the
following: 

  

	 	““Child”  	means a legitimate child of the Member; a child who has been legally adopted by the Member; and any stepchild, illegitimate child or other child who, in the
Trustees’ opinion, was dependent on the Member at the time of the Member’s death and whom the Trustees agree to treat as a Child (including in any case a child conceived but unborn);” 

 

	9.2	FS Rule 1 (Meaning of defined terms) is amended by adding the following sentence at the end of the definition of “Spouse”:

 “For the purposes of FS Rules 7.1, 7.2 and 7.3 a Spouse may include with the consent of the
Principal Employer another person who at the death of the Member and in the opinion of the Trustees was living with the Member as his or her spouse and was financially dependent upon the Member;” 

  
 10 

	9.3	FS Rule 7.5.2.2 (Payment of lump sums on death) is amended by deleting it and replacing it with the following: 

“in exercising the power in FS sub-rule 7.5.2.1 the Trustees shall during the 2 year period, have power to transfer the whole
or any part of the lump sum death benefit to the trustees of a separate trust for the benefit of all or any one or more of the Member’s Beneficiaries. A Member’s “Beneficiaries” for these purposes and for the purposes of
FS sub-rule 7.5.2.1 are the Member’s widow or widower; the grandparents of the Member or his or her widow or widower and their descendants (whether legitimate or illegitimate) and the Spouses of those descendants (including those of the
half-blood and those conceived but not yet born) and the Spouses of those descendants; any step-parents, step-brothers, step-sisters and step-children (whether legitimate or illegitimate) of the Member and of the Member’s Spouse, and any
individual related by adoption to the Member or the Member’s Spouse and the spouses of those step-relatives or adopted relatives; the Member’s Dependants; any person or body with an interest in the Member’s estate (but not including
the Crown, the Duchy of Lancaster or the Duke of Cornwall); and any person nominated in writing by the Member to the Trustees, and with and subject to (without infringing the rule against perpetuities) such powers of appointment and such other
discretionary trusts and powers (exercisable by the trustees of the separate trust or any other person), and such provisions for maintenance, education, advancement and accumulation of income during a minority, as the Trustees may in their absolute
discretion think fit. The Trustees shall have power themselves to declare any such separate trust and to appoint as trustees or trustee of that trust any two persons or a corporate body, whether or not it is a trust corporation as defined in
Section 68 of the Trustee Act 1925, as the Trustees may decide and to provide for the remuneration of such trustees or trustee.” 
  

	9.4	FS Rule 7.6.2 (Payment of Spouse’s pension on death) is amended by deleting the following words: 

“... unless the Spouse was neither living with nor dependent on the Member at the date of the Member’s death. If this
happens, the Trustees may instead decide not to pay some or all of the pension to the Spouse (other than any pension payable to the Spouse under the Contracting-out Laws).” 

 

	9.5	FS Rule 7.6.5 (Payment of Spouse’s pension on death) is amended by deleting it and replacing it with the following: 

“If the Member is survived by a Child, and either no pension is payable to a Spouse or a Spouse’s pension stops while there is
still a Child, the Trustees shall pay the pension to (or for the benefit of) the Child (or Children as applicable). The Trustees shall decide from time to time how to divide the pension between more than one Child.” 

  
 11 

	9.6	FS Rule 11.1.1 (Trivial pension) is amended by deleting it and replacing it with the following: 

“Subject to the following conditions, the Trustees may allow a Member who has a trivial pension under the Scheme to exchange all his
or her benefits (including those payable on death) for a lump sum in either of the following ways: 
  

	 	11.1.1.2  	If the value of the aggregate of all benefits payable in respect of a Member from the Scheme and from all other registered pension schemes does not exceed one per cent
of the standard lifetime allowance under section 218 of the Finance Act 2004, the Trustees may pay the Member the whole of his or her benefits as a lump sum in accordance with paragraphs 7 to 9 of Schedule 29 to the Finance Act 2004 (and less tax).

  

	 	11.1.1.3  	If the value of all benefits payable in respect of a Member from the Scheme does not exceed £2000, the Trustees may pay the Member an amount equal to the value of
the Member’s benefits in accordance with part 2 of The Registered Pension Schemes (Authorised Payments) Regulations 2009. 

 Each of these shall extinguish the Member’s entitlement under the Scheme. 

The Trustees shall determine the value of the Member’s benefits on a basis which is consistent with the Contracting-out and
Preservation Laws.” 
  

	9.7	FS Rule 10.2.1.2 (Pre-April 2006 members) is amended by deleting it and replacing it with the following: 

“the Member’s Final Pensionable Salary for the purpose of determining the benefits payable to or in respect of the Member
(excluding for the avoidance of doubt lump sum benefits payable under FS Rule 7.1 (Benefits on death in Pensionable Service before Normal Retirement Date)) in respect of the Member’s Pensionable Service on and after 6 April 2006
shall not exceed the Scheme Earnings Cap.” 
  

	9.8	MP Rule 1 (Meaning of defined terms) is amended by deleting the second paragraph of the definition of Pensionable Service and replacing it with the following:

 “ Service after Normal Retirement Date shall be counted as Pensionable Service if so determined by the
Principal Employer.” 
  

	9.9	MP Rule 7.4.2 (Disposal of lump sum death benefits) is amended by deleting it and replacing it with the following; 

  
 12 

 “A Member’s “Beneficiaries” for these purposes are the
Member’s widow or widower; the grandparents of the Member or his or her widow or widower and their descendants (whether legitimate or illegitimate) and the Spouses of those descendants (including those of the half-blood and those conceived but
not yet born) and the Spouses of those descendants; any step-parents, step-brothers, step-sisters and step-children (whether legitimate or illegitimate) of the Member and of the Member’s Spouse, and any individual related by adoption to the
Member or the Member’s Spouse and the spouses of those step-relatives or adopted relatives; the Member’s Dependants; any person or body with an interest in the Member’s estate (but not including the Crown, the Duchy of Lancaster or
the Duke of Cornwall); and any person nominated in writing by the Member to the Trustees, and with and subject to (without infringing the rule against perpetuities) such powers of appointment and such other discretionary trusts and powers
(exercisable by the trustees of the separate trust or any other person), and such provisions for maintenance, education, advancement and accumulation of income during a minority, as the Trustees may in their absolute discretion think fit. The
Trustees shall have power themselves to declare any such separate trust and to appoint as as trustees or trustee of that trust any two persons or a corporate body, whether or not it is a trust corporation as defined in Section 68 of the Trustee
Act 1925, as the Trustees may decide and to provide for the remuneration of such trustees or trustee.” 
  

	9.10	MP Rule 10.1 (Trivial pension) is amended by deleting it and replacing it with the following: 

“Subject to the following conditions, the Trustees may allow a Member who has a trivial pension under the Scheme to exchange all his
or her benefits (including those payable on death) for a lump sum in either of the following ways: 
  

	 	10.1.1  	If the value of the aggregate of all benefits payable in respect of a Member from the Scheme and from all other registered pension schemes does not exceed one per cent
of the standard lifetime allowance under section 218 of the Finance Act 2004, the Trustees may pay the Member the whole of his or her benefits as a lump sum in accordance with paragraphs 7 to 9 of Schedule 29 to the Finance Act 2004 (and less tax).

  

	 	10.1.2  	If the value of all benefits payable in respect of a Member from the Scheme does not exceed £2000, the Trustees may pay the Member an amount equal to the value of
the Member’s benefits in accordance with part 2 of The Registered Pension Schemes (Authorised Payments) Regulations 2009. 

 Each of these shall extinguish the Member’s entitlement under the Scheme. 

  
 13 

 The Trustees shall determine the value of the Member’s benefits on a basis which is
consistent with the Contracting-out and Preservation Laws.” 
  

	10.	Successors 

 This deed
will bind the respective successors of the Trustees and the Principal Employer, and any references in this deed to the Trustees or to the Principal Employer shall be treated as including a reference to their respective successors and not just to the
specific signatories to this deed. 
  

	11.	Counterparts 

 This deed
may be executed and delivered in any number of counterparts, each of which when executed will be an original, but together will constitute one and the same deed. 

  
 14LETTER OF CREDIT FACILITY

 Exhibit 10.4 

 

					
	

	  	 	CONFORMED COPY	  

 Standby Letter of Credit Facility 
 Chaucer Holdings plc 
 As Account Party 
 Barclays Bank PLC, Lloyds TSB Bank plc and The Royal Bank of Scotland plc 
 As Mandated Lead
Arrangers 
 Lloyds TSB Bank plc 
 As
Bookrunner 
 Lloyds TSB Bank plc 
 As
Facility Agent 
 Lloyds TSB Bank plc 

As Security Agent 
 29 November 2010

 CONTENTS 

 

							
	CLAUSE	 	 	  	PAGE	 
	 1.
	 	DEFINITIONS AND INTERPRETATION	  	 	1	  
	 2.
	 	THE FACILITY	  	 	16	  
	 3.
	 	PURPOSE	  	 	17	  
	 4.
	 	RANKING AND APPLICATION OF FUNDS AT LLOYD’S	  	 	17	  
	 5.
	 	CONDITIONS OF UTILISATION	  	 	17	  
	 6.
	 	UTILISATION	  	 	18	  
	 7.
	 	EXTENSION OF THE FACILITY	  	 	19	  
	 8.
	 	TERMINATION OF LETTERS OF CREDIT	  	 	20	  
	 9.
	 	NOTIFICATION	  	 	21	  
	 10.
	 	ACCOUNT PARTY’S LIABILITIES IN RELATION TO LETTERS OF CREDIT	  	 	21	  
	 11.
	 	COLLATERALISATION AND CANCELLATION	  	 	22	  
	 12.
	 	COMMISSION AND FEES	  	 	25	  
	 13.
	 	TAX GROSS-UP AND INDEMNITIES	  	 	26	  
	 14.
	 	INCREASED COSTS	  	 	30	  
	 15.
	 	OTHER INDEMNITIES	  	 	31	  
	 16.
	 	ILLEGALITY	  	 	32	  
	 17.
	 	MITIGATION BY THE LENDERS	  	 	32	  
	 18.
	 	COSTS AND EXPENSES	  	 	33	  
	 19.
	 	DEFAULT INTEREST AND BREAKAGE COSTS	  	 	34	  
	 20.
	 	CHANGES TO THE CALCULATION OF INTEREST	  	 	35	  
	 21.
	 	GUARANTEE AND INDEMNITY	  	 	36	  
	 22.
	 	REPRESENTATIONS	  	 	38	  
	 23.
	 	INFORMATION UNDERTAKINGS	  	 	42	  
	 24.
	 	FINANCIAL CONDITION	  	 	46	  
	 25.
	 	GENERAL UNDERTAKINGS	  	 	48	  
	 26.
	 	EVENTS OF DEFAULT	  	 	52	  
	 27.
	 	CHANGES TO THE LENDERS	  	 	56	  
	 28.
	 	CHANGES TO THE OBLIGORS	  	 	60	  
	 29.
	 	ROLE OF THE FACILITY AGENT AND THE ARRANGERS	  	 	61	  
	 30.
	 	ROLE OF THE SECURITY AGENT	  	 	67	  
	 31.
	 	CONDUCT OF BUSINESS BY THE FINANCE PARTIES	  	 	74	  
	 32.
	 	SHARING AMONG THE FINANCE PARTIES	  	 	74	  
	 33.
	 	PAYMENT MECHANICS	  	 	75	  
	 34.
	 	SET-OFF	  	 	78	  
	 35.
	 	APPLICATION OF PROCEEDS	  	 	78	  
	 36.
	 	NOTICES	  	 	80	  
	 37.
	 	CALCULATIONS AND CERTIFICATES	  	 	82	  
	 38.
	 	PARTIAL INVALIDITY	  	 	82	  
	 39.
	 	REMEDIES AND WAIVERS	  	 	82	  
	 40.
	 	AMENDMENTS AND WAIVERS	  	 	82	  
	 41.
	 	CONFIDENTIALITY	  	 	84	  
	 42.
	 	COUNTERPARTS	  	 	87	  
	 43.
	 	GOVERNING LAW	  	 	87	  
	 44.
	 	ENFORCEMENT	  	 	87	  
	SCHEDULE 1	  	 	88	  
	The Original Parties	  	 	88	  
	Part 1 - The Original Guarantors	  	 	88	  
	Part 2 - The Original Lenders	  	 	88	  
	SCHEDULE 2	  	 	89	  
	Conditions Precedent	  	 	89	  
	Part 1 - Conditions Precedent to Initial Utilisation	  	 	89	  
	Part 2 - Conditions Precedent Required to be Delivered by an Additional Guarantor	  	 	92	  
	SCHEDULE 3	  	 	93	  
	 Utilisation Request
	  	 	93	  

							
	 SCHEDULE 4
	  	 	94	  
	 Form of Letter of Credit
	  	 	94	  
	 SCHEDULE 5
	  	 	99	  
	 Letter of Comfort
	  	 	99	  
	 SCHEDULE 6
	  	 	101	  
	 Form of Transfer Certificate
	  	 	101	  
	 SCHEDULE 7
	  	 	103	  
	 Form of Assignment Agreement
	  	 	103	  
	 THE SCHEDULE
	  	 	104	  
	 SCHEDULE 8
	  	 	106	  
	 Form of Accession Letter
	  	 	106	  
	 Part 1 - Form of Guarantor Accession Letter
	  	 	106	  
	 Part 2 – Form of New Lender Accession Letter
	  	 	107	  
	 SCHEDULE 9
	  	 	108	  
	 Form of Resignation Letter
	  	 	108	  
	 SCHEDULE 10
	  	 	109	  
	 Form of Compliance Certificate
	  	 	109	  
	 SCHEDULE 11
	  	 	111	  
	 LMA Form of Confidentiality Undertaking
	  	 	111	  
	 SCHEDULE 12
	  	 	116	  
	 Form of Facility Extension Notice
	  	 	116	  

 THIS AGREEMENT is made on 29 November 2010 

BETWEEN: 
  

	(1)	CHAUCER HOLDINGS PLC (the “Account Party”); 

  

	(2)	THE COMPANIES listed in part 1 of schedule 1 (The Original Parties) as original guarantors (the “Original Guarantors”);

  

	(3)	BARCLAYS BANK PLC, LLOYDS TSB BANK PLC AND THE ROYAL BANK OF SCOTLAND PLC as mandated lead arrangers (the “Arrangers”);

  

	(4)	LLOYDS TSB BANK PLC as bookrunner (the “Bookrunner”); 

 

	(5)	THE FINANCIAL INSTITUTIONS listed in part 2 of schedule 1 (The Original Parties) as lenders (the “Original Lenders”); 

 

	(6)	LLOYDS TSB BANK PLC as provider of the Overdraft Facility (the “Overdraft Provider”); 

 

	(7)	LLOYDS TSB BANK PLC as agent of the other Finance Parties (the “Facility Agent”); and 

 

	(8)	LLOYDS TSB BANK PLC as security agent of the other Secured Parties (the “Security Agent”). 

THE PARTIES AGREE AS FOLLOWS: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

 In this
agreement: 
 “Accession Date” means, in relation to an accession by a New Lender pursuant to clauses 7
(Extension of the Facility) and 27 (Changes to the Lenders), the later of: 
  

	 	(a)	the proposed Accession Date specified in the relevant Accession Letter; and 

 

	 	(b)	the date on which the Facility Agent executes the relevant Accession Letter; 

 “Accession Letter” means: 
  

	 	(a)	in respect of a proposed Additional Guarantor, a document substantially in the form set out in part 1 of schedule 8 (Form of Guarantor Accession Letter); or

  

	 	(b)	in respect of any proposed New Lender pursuant to clause 7 (Extension of the Facility) a document substantially in the form set out in part 2 of schedule 8 (Form of New
Lender Accession Letter); 

 “Accounting Principles” means generally accepted accounting
principles in the United Kingdom including IFRS; 
 “Additional Guarantor” means a company which becomes an
Additional Guarantor in accordance with clause 28 (Changes to the Obligors); 
 “Affiliate” means, in relation
to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company; 

  
 1 

 “Approved Credit Institution” means a credit institution within the meaning
of the Council Directive on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions (No. 2006/48/EC) which has been approved by the Council of Lloyd’s for
the purpose of providing guarantees and issuing or confirming letters of credit comprising a Member’s Funds at Lloyd’s; 
 “Assignment Agreement” means an agreement substantially in the form set out in schedule 7 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and
assignee; 
 “Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing,
notarisation or registration; 
 “Authorised Signatory” means, in relation to any Obligor, any person who is
duly authorised (in such manner as may be reasonably acceptable to the Facility Agent) and in respect of whom the Facility Agent has received a certificate signed by a director of that Obligor setting out the name and signature of that person and
confirming that person’s authority to act; 
 “Availability Period” means the period from and including the
date of this agreement to and including 31 December 2012; 
 “Available Commitment” means, in relation to a
Lender at any time and save as otherwise provided in this agreement, its Commitment minus: 
  

	 	(a)	the amount of its participation in the Outstandings at that time; and 

  

	 	(b)	in relation to any proposed Utilisation, the amount of its participation in any other Utilisations that are due to be made on or before the proposed Utilisation Date.

 For the purposes of calculating a Lender’s Available Commitment in relation to any proposed Utilisation,
the amount of that Lender’s participation in any Letter of Credit that is due to expire or be returned as cancelled on or before the proposed Utilisation Date shall not be deducted from a Lender’s Commitments; 

“Available Facility” means, at any time, the aggregate of the Available Commitments of the Lenders; 

“Base Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to
the Facility Agent at its request by the Base Reference Banks, in relation to LIBOR, as the rate at which the relevant Base Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period, were
it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; 
 “Base Reference Banks” means, in relation to LIBOR, the principal London offices of Barclays Bank PLC, Lloyds TSB Bank plc and The Royal Bank of Scotland plc or such other banks as may be
appointed by the Facility Agent in consultation with the Account Party; 
 “Business Day” means a day (other
than a Saturday or Sunday) on which banks are open for general business in London; 
 “Cash Collateral” means,
in relation to a Letter of Credit or (as applicable) any Lender’s Proportion of a Letter of Credit, a cash deposit in the Specified Account and “Cash Collateralised” shall be construed accordingly; 

  
 2 

 “Charged Property” means all of the assets which from time to time are, or
are expressed to be, the subject of the Security; 
 “Chaucer Names” means Chaucer Corporate Capital (No. 2)
Limited and Chaucer Corporate Capital (No. 3) Limited and “Chaucer Name” means either one of them; 

“Chaucer No. 2” means Chaucer Corporate Capital (No. 2) Limited; 

“Collateralised Outstandings” means the Outstandings in respect of which the Account Party has provided funds by way of
Cash Collateral to the Security Agent in accordance with the terms of this agreement; 
 “Commencement Date”
means, in relation to any Letter of Credit, the date as and from which the Lenders’ liabilities (whether actual or contingent) under that Letter of Credit start to accrue; 
 “Commitment” means: 
  

	 	(a)	in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in part 2 of schedule 1 (The Original Parties) and
the amount of any other Commitment transferred to it under this agreement or assumed by it pursuant to clause 7 (Extension of the Facility); and 

  

	 	(b)	in relation to any other Lender, the amount of any Commitment transferred to it under this agreement or assumed by it pursuant to clause 7 (Extension of the Facility),

 to the extent not cancelled, reduced or transferred by it under this agreement; 

“Compliance Certificate” means a certificate substantially in the form set out in schedule 10 (Form of Compliance
Certificate); 
 “Confidential Information” means all information relating to the Account Party, any Guarantor,
the Group, the Finance Documents or the Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a
Finance Party under, the Finance Documents or the Facility from either: 
  

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

  

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

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

	 	(i)	is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of clause 41 (Confidentiality); or

  

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

 

	 	(iii)	is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by
that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise
subject to, any obligation of confidentiality; 

  
 3 

 “Confidentiality Undertaking” means a confidentiality undertaking
substantially in a recommended form of the LMA as set out in schedule 11 (LMA Form of Confidentiality Undertaking) or in any other form agreed between the Account Party and the Facility Agent; 

“Corporate Member” means a corporate member of Lloyd’s; 

“Corporate Member’s Deed” means Lloyd’s Security and Trust Deed or such other deed or document as Lloyd’s
may from time to time require each Chaucer Name (being or having applied to become a Member) to execute and deliver for the purposes of providing a Lloyd’s Deposit; 
 “CTA” means the Corporation Tax Act 2009; 

“Default” means an Event of Default or any event or circumstance specified in clause 26 (Events of Default) which would
(with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default; 

“Defaulting Lender” means any Lender: 
  

	 	(a)	which has rescinded or repudiated a Finance Document; or 

  

	 	(b)	with respect to which an Insolvency Event has occurred and is continuing; 

 “Delegate” means any delegate, agent, attorney or co-trustee appointed by the Security Agent; 
 “Deposit Agreement” means the deposit agreement dated on or about the date of this agreement and executed by the Account Party and the Security Agent pursuant to which a charge is granted
by the Account Party to the Security Agent in respect of the Specified Account; 
 “Disruption Event” means
either or both of: 
  

	 	(a)	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be
made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

  

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

  

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

  

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

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

“Encumbrance” means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or
any other agreement or arrangement having a similar effect; 
 “Event of Default” means any event or
circumstance specified as such in clause 26 (Events of Default); 

  
 4 

 “Existing Facility Agreement” means the £51,000,000 standby letter of
credit facility agreement dated 22 November 2002 as amended and restated from time to time, between, amongst others, the Account Party and Lloyds TSB Bank plc; 
 “Expiry Date” means, in relation to any Letter of Credit, the date on which the maximum aggregate liability thereunder is reduced to zero; 

“Extreme Stress Scenario” means an extreme event which is not a Realistic Disaster Scenario and which falls outside the
guidelines issued by Lloyd’s’ Franchise Performance Directorate department; 
 “Facility Extension”
means the exercising by the Account Party of the option to increase the Total Commitments of the Facility by up to £10,000,000 in accordance with clause 7 (Extension of the Facility); 

“Facility Extension Amount” has the meaning given to it in clause 7(a) (Extension of the Facility”); 

“Facility Extension Notice” means a notice in the form set out in schedule 14 (Form of Facility Extension Notice);

 “Facility” means the sterling letter of credit facility granted to the Account Party in this agreement;

 “Facility Office” means the office or offices notified by a Lender to the Facility Agent in writing on or
before the date it becomes a Lender (or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it will perform its obligations under this agreement; 

“FAL Providers Deed” means the FAL providers deed dated on or around the date of this agreement between the Facility
Agent, the Account Party, the Chaucer Names and Flagstone Reassurance Suisse SA – Bermuda Branch; 
 “Fee
Letter” means any letter or letters dated on or about the date of this agreement between the Arrangers and the Account Party (or the Facility Agent and the Account Party or the Security Agent and the Account Party) setting out any of the
fees referred to in clause 12 (Commission and Fees); 
 “Finance Document” means this agreement, any Fee Letter,
any Accession Letter, any Resignation Letter, the Security Documents and any other document designated as such by the Facility Agent and the Account Party; 
 “Finance Party” means the Facility Agent, the Security Agent, an Arranger or a Lender; 
 “Financial Indebtedness” means any indebtedness for or in respect of: 
  

	 	(a)	Indebtedness for Borrowed Money; 

  

	 	(b)	any documentary or standby letter of credit facility or performance bond facility; 

 

	 	(c)	any interest rate swap, currency swap, forward foreign exchange transaction, cap, floor, collar or option transaction or any other treasury transaction or any
combination thereof or any other transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and the amount of the Financial Indebtedness in relation to any such transaction shall be calculated by
reference to the mark-to-market valuation of such transaction at the relevant time); and 

  

	 	(d)	any guarantee or indemnity for any of the items referred to in paragraphs (a) to (c) above; 

  
 5 

 “FSA Handbook” means the UK Financial Services Authority Handbook of Rules
and Guidance (as amended from to time); 
 “Funds at Lloyd’s” or “FAL” has the meaning
given in paragraph 16 of the Membership Byelaw (No. 5 of 2005); 
 “GAAP” means generally accepted accounting
principles in the United Kingdom, including IFRS; 
 “General Prudential Sourcebook” means the General
Prudential Sourcebook for Banks, Building Societies, Insurers and Investment Firms which forms part of the FSA Handbook; 

“Group” means the Account Party and its Subsidiaries for the time being; 

“Guaranteed Documents” means the Finance Documents and the Overdraft Letter; 

“Guaranteed Finance Parties” means the Finance Parties and the Overdraft Provider; 

“Guarantor” means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance
with clause 28 (Changes to the Obligors); 
 “Holding Company” means, in relation to a company or corporation,
any other company or corporation in respect of which it is a Subsidiary; 
 “IFRS” means international
accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements; 
 “Impaired Agent” means the Agent at any time when: 
  

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

  

	 	(b)	the Agent otherwise rescinds or repudiates a Finance Document; 

  

	 	(c)	(if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a) of the definition of Defaulting Lender; or 

 

	 	(d)	an Insolvency Event has occurred and is continuing with respect to the Agent; 

 “Indebtedness for Borrowed Money” means any indebtedness (other than such indebtedness incurred by a Managed Syndicate as a result of a Syndicate Arrangement) for or in respect of:

  

	 	(a)	moneys borrowed; 

  

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

 

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

 

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

  
 6 

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

 

	 	(f)	any agreement or option to re-acquire on asset if one of primary reasons for entering into such agreement or option is to raise finance; 

 

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

  

	 	(h)	any redeemable preference share; 

  

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

  

	 	(j)	the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (i) (inclusive) above;

 “Insolvency Event” means, in relation to a Finance Party: 

 

	 	(a)	any receiver, administrative receiver, administrator, liquidator, bank liquidator, bank administrator, compulsory manager or other similar officer is appointed in
respect of that Finance Party or all or substantially all of its assets; 

  

	 	(b)	that Finance Party is subject to any event which has an analogous effect to any of the events specified in paragraph (a) above under the applicable laws of any
jurisdiction; or 

  

	 	(c)	that Finance Party suspends making payments on all or substantially all of its debts or publicly announces an intention to do so; 

“Interest Period” means, save as otherwise provided herein, in relation to an Unpaid Sum, any of those periods mentioned
in clause 19.1 (Default Interest Periods); 
 “ITA” means the Income Tax Act 2007; 

“L/C Commission Rate” means: 
  

	 	(a)	in relation to the portion of any Letter of Credit that is not Cash Collateralised, 2.85 per cent. per annum; and 

 

	 	(b)	in relation to any portion of any Letter of Credit that is Cash Collateralised, 0.30 per cent. per annum; 

“Legal Reservations” means: 
  

	 	(a)	the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency,
reorganisation and other laws generally affecting the rights of creditors; 

  

	 	(b)	the time barring of claims under applicable statutes of limitation, the possibility that an undertaking to assume liability for or indemnify a person against
non-payment of stamp duty may be void and defences of set-off or counterclaim; 

  

	 	(c)	similar principles, rights and defences under the laws of any jurisdiction of incorporation of any Obligor; and 

 

	 	(d)	any other matters which are set out as qualifications or reservations as to matters of law of general application in any legal opinion delivered pursuant to clause 5
(Conditions of Utilisation) or clause 28 (Changes to the Obligors); 

  
 7 

 “Lender” means: 

 

	 	(a)	any Original Lender; and 

  

	 	(b)	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with clause 27 (Changes to the Lenders), 

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

“Letter of Comfort” means a letter of comfort from Lloyd’s to the Account Party in substantially the form set out in
schedule 5 (Letter of Comfort) or in such other form as may be agreed between the Facility Agent and the Account Party in order to procure the execution of that letter by Lloyd’s; 

“Letter of Credit” means a letter of credit issued or to be issued pursuant to clause 6 (Utilisation) substantially in
the form set out in schedule 4 (Form of Letter of Credit); 
 “LIBOR” means, in relation to any Unpaid Sum:

  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	(if no Screen Rate is available for the currency or Interest Period) the Base Reference Bank Rate, 

as at 11.00 a.m. on the Quotation Day for the currency of that Unpaid Sum and for a period comparable to the Interest Period for that
Unpaid Sum; 
 “Lloyd’s” means the Society incorporated by Lloyd’s Act 1871 by the name of
Lloyd’s; 
 “Lloyd’s Deposit” has the meaning given in the Definitions Byelaw (No. 7 of 2005);

 “Lloyd’s Syndicate Accounting Rules” means the Lloyd’s syndicate accounting rules within the
meaning of the Definitions Byelaw (No. 7 of 2005); 
 “LMA” means the Loan Market Association; 

“Majority Lenders” means a Lender or Lenders whose Commitments aggregate more than 66 2/3 per cent. of the Total Commitments (or, if the Commitments
have been reduced to zero, aggregated more than
66 2/3 per cent. of the Commitments immediately
prior to the reduction); 
 “Managed Syndicate” means: 

 

	 	(a)	any one of Syndicate 1084, Syndicate 1176, Syndicate 4000; and 

  

	 	(b)	any other Syndicate at Lloyd’s managed by the Managing Agent and through which a Chaucer Name underwrites business at Lloyd’s of more than ten per cent. of
the aggregate underwriting risk in respect of all such Syndicates; 

  
 8 

 “Managing Agent” means Chaucer Syndicates Limited; 

“Material Adverse Effect” means a material adverse effect on: 

 

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

 

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

 

	 	(c)	the validity or enforceability of any Finance Document or the rights or remedies of the Finance Parties under the Finance Documents; 

“Material Company” means, at any time: 
  

	 	(a)	an Obligor; 

  

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

  

	 	(c)	a Subsidiary of the Account Party which has profit before tax representing five per cent. or more of consolidated profit before tax of the Group or has gross assets
representing five per cent. or more of the gross assets of the Group, calculated on a consolidated basis. 

Compliance with the conditions set out in paragraph (c) above shall be determined by reference to the latest annual or semi-annual
financial statements of that Subsidiary (consolidated in the case of a Subsidiary which itself has Subsidiaries) and the latest annual or semi-annual consolidated financial statements of the Group delivered pursuant to clause 23.1(a) (Financial
Statements) or clause 23.1(b) (Financial Statements). However, if a Subsidiary has been acquired since the date as at which the latest audited consolidated financial statements of the Group were prepared, the financial statements shall be deemed to
be adjusted in order to take into account the acquisition of that Subsidiary; 
 A report by the auditors of the Account Party
that a Subsidiary is or is not a Material Company shall, in the absence of manifest error, be conclusive and binding on all Parties; 
 “Member” means a Corporate Member or a Name; 

“Member’s Syndicate Premium Limit” means a Member’s syndicate premium limit within the meaning of paragraph 26
of the Membership Byelaw (No. 5 of 2005); 
 “Month” means a period starting on one day in a calendar month and
ending on the numerically corresponding day in the next calendar month, except that: 
  

	 	(a)	if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if
there is one, or if there is not, on the immediately preceding Business Day; and 

  

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

 The above exceptions will only apply to the last Month of any period; “Monthly” shall be
construed accordingly; 
 “Name” means an individual member of Lloyd’s; 

“New Lender” has the meaning given to it in clause 7(c) (Extension of the Facility); 

“Notice of Termination” means a notice of the kind defined in clause 8.1 (Availability and Termination Provisions);

  
 9 

 “Obligor” means the Account Party or a Guarantor; 

“Obligors’ Agent” means the Account Party, appointed to act on behalf of each Obligor in relation to the Finance
Documents pursuant to clause 2.3 (Obligors’ Agent); 
 “Original Financial Statements” means: 

 

	 	(a)	in relation to the Account Party, the audited consolidated financial statements of the Group for the financial year ended 31 December 2009; and

  

	 	(b)	in relation to each Original Guarantor, its audited financial statements for its financial year ended 31 December 2009; 

“Original Obligor” means the Account Party or an Original Guarantor; 

“Other FAL” means, in relation to Chaucer No. 2, its Funds at Lloyd’s other than Own FAL, Reinsurance FAL and
FAL provided under this agreement; 
 “Outstandings” means, at any time, the aggregate of the maximum actual and
contingent liabilities of the Lenders in respect of any outstanding Letter of Credit; 
 “Overdraft” means the
£2,000,000 overdraft facility made available to the Account Party by Lloyds TSB Bank plc and which is documented by the Overdraft Letter; 
 “Overdraft Letter” means the overdraft facility letter between Lloyds TSB Bank plc and the Account Party dated on or about the date of this agreement, as amended, supplemented or extended
from time to time, which documents the terms and conditions of a £2,000,000 overdraft facility made available to the Account Party; 
 “Own FAL” means, in relation to Chaucer No. 2, such part of its Funds at Lloyd’s as is provided by the Account Party or by Chaucer No. 2 by way of cash and/or investments
and/or covenant and charge or otherwise as permitted by Lloyd’s from time, to time excluding the Reinsurance FAL; 

“Party” means a party to this agreement; 
 “Permitted Encumbrance” means: 
  

	 	(a)	any Encumbrance entered into pursuant to the Finance Documents; 

  

	 	(b)	any Encumbrance granted with the prior consent of the Majority Lenders, provided the amount secured thereby is not increased; 

 

	 	(c)	any Encumbrance granted or subsisting under any deed or agreement required by Lloyd’s or by the Financial Services Authority to be executed or entered into by or
on behalf of a Chaucer Name in connection with its insurance business at Lloyd’s; 

  

	 	(d)	any Encumbrance over or affecting any asset forming part of a trust fund (or, in the case of reinsurance recoveries or other things in action, whose proceeds will form
part of a trust fund) which is held subject to the provisions of any deed or agreement of the kind referred to in paragraph (c) above, where that Encumbrance is created to secure obligations arising under a Syndicate Arrangement;

  

	 	(e)	any Encumbrance over or affecting any asset acquired by a member of the Group after the date of this agreement and subject to which that asset is acquired, provided:

  

	 	(i)	that Encumbrance was not created in contemplation of the acquisition of that asset by a member of the Group; 

  
 10 

	 	(ii)	the amount secured by that Encumbrance has not been increased in contemplation of, or since the date of, the acquisition of that asset by a member of the Group; and

  

	 	(iii)	that Encumbrance is released or discharged within six months of the date of acquisition of that asset; 

 

	 	(f)	any Encumbrance over or affecting any asset of any company which becomes a member of the Group after the date of this agreement, where that Encumbrance is created prior
to the date on which that company becomes a member of the Group, provided: 

  

	 	(i)	that Encumbrance was not created in contemplation of the acquisition of that company; 

 

	 	(ii)	the amount secured by that Encumbrance has not been increased in contemplation of, or since the date of, the acquisition of that company; and 

 

	 	(iii)	such Encumbrance is released or discharged within six months of that company becoming a member of the Group; 

 

	 	(g)	any netting or set-off arrangement entered into by any member of the Group in the normal course of its banking arrangements for the purpose of netting debit and credit
balances; 

  

	 	(h)	any title transfer or retention of title arrangement entered into by any member of the Group in the normal course of its trading activities on the counterparty’s
standard or usual terms; 

  

	 	(i)	any lien arising by operation of law and in the normal course of business, provided that lien is discharged within ten days of the date on which it arises;

  

	 	(j)	any Encumbrance securing amounts outstanding under the Existing Facility Agreement, provided such Encumbrance is irrevocably released on or before the first Utilisation
Date; 

  

	 	(k)	any Encumbrance that is registered at Companies House at the date of this agreement in respect of any Obligor; and 

 

	 	(l)	any other Encumbrance securing Financial Indebtedness, provided the amount secured by the aggregate of any such Encumbrances does not at any time exceed £500,000;

  

	 	“Permitted	Financial Indebtedness” means Financial Indebtedness: 

  

	 	(a)	arising under the Existing Facility Agreement, provided such Financial Indebtedness is discharged in full on or before the first Utilisation Date;

  

	 	(b)	arising under the Finance Documents; 

  

	 	(c)	arising under the Overdraft Letter provided that the principal amount borrowed under the Overdraft Letter does not exceed £2,000,000 (or its equivalent);

  

	 	(d)	arising under any Syndicate Arrangement; 

  

	 	(e)	arising under the Subordinated Loan Notes; 

  

	 	(f)	approved in writing by the Majority Lenders; and 

  

	 	(g)	other Indebtedness for Borrowed Money of members of the Group not exceeding in aggregate £500,000; 

  
 11 

 “Proportion” means, in relation to a Lender: 

(a) the proportion borne by its Commitment to the Total Commitments (or, if the Total Commitments are then zero, by its Commitment to the
Total Commitments immediately prior to their reduction to zero); and 
 (b) in respect of any Letter of Credit and save as
otherwise provided in this agreement, the proportion (expressed as a percentage) borne by that Lender’s Available Commitment to the Available Facility immediately prior to the issue of that Letter of Credit; 

“Qualifying Lender” has the meaning given to it in clause 13 (Tax Gross-Up and Indemnities); 

“Quotation Day” means, in relation to any period for which an interest rate is to be determined, the first day of that
period; 
 “Realistic Disaster Scenario” means any realistic disaster scenario presented in a business plan
prepared in relation to a Managed Syndicate under paragraph 35 of the Underwriting Byelaw (No. 2 of 2003) which shows the potential impact upon a Managed Syndicate of a catastrophic event, which for the avoidance of doubt, shall not be taken to
include any Extreme Stress Scenario which may be requested to be covered by Lloyd’s from time to time; 

“Receiver” means a receiver or receiver and manager, or administrative receiver, administrator or trustee (as the context
requires) or other similar officer of the whole or any part of the Charged Property; 
 “Reinsurance FAL” means,
in relation to Chaucer No. 2, any letter or letters of credit to be provided to Lloyd’s on behalf of the Account Party and/or Chaucer No. 2 and which are supported by a reinsurance contract; 

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

“Relevant Interbank Market” means the London interbank market; 

“Repeating Representations” means each of the representations set out in clauses 22.1 (Status) to 22.6 (Legality,
Validity and Enforceability) (inclusive), clauses 22.10 (No Filing or Stamp Taxes) to 22.13 (Audited Financial Statements) (inclusive), clauses 22.15 (No Proceedings Pending or Threatened) to 22.18 (Shares) (inclusive) and clause 22.21 (No Breach of
Borrowing Restrictions); 
 “Representative” means any delegate, agent, manager, administrator, nominee,
attorney, trustee or custodian; 
 “Resignation Letter” means a letter substantially in the form set out in
schedule 9 (Form of Resignation Letter); 
 “Screen Rate” means, in relation to LIBOR, the British Bankers’
Association Interest Settlement Rate for the relevant currency and period displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Facility Agent may specify another page or
service displaying the appropriate rate after consultation with the Account Party and the Lenders; 

  
 12 

 “Secured Obligations” means all present and future obligations at any time
due, owing or incurred by any Obligor to any Secured Party under the Guaranteed Documents, both actual and contingent and whether incurred solely or jointly and as principal or surety or in any other capacity; 

“Secured Party” means the Security Agent, any Receiver or Delegate, or any other Guaranteed Finance Party; 

“Security” means the security granted under or pursuant to the Security Documents; 

“Security Documents” means each of the documents listed as being a Security Document in part 1 of schedule 2 (Conditions
Precedent to Initial Utilisation) together with any other document entered into by any Obligor creating or expressed to create any Encumbrance over all or any part of its assets in respect of the obligations of any of the Obligors under any of the
Guaranteed Documents; 
 “Specified Account” means the interest-bearing account in the name of the Account Party
held with the Security Agent, at the Security Agent’s branch at 39 Threadneedle Street, London EC2R 8AU, with account number 2677355, sort code 30-00-09 and designated LTSB re Chaucer Holdings plc; 

“Sterling” and “£” means the lawful currency of the United Kingdom; 

“Subordinated Funds at Lloyd’s” has the meaning given to it in clause 4.1 (Ranking of Funds at Lloyd’s);

 “Subordinated Loan Notes” means: 

 

	 	(a)	the 30 year subordinated loan notes issued by the Account Party on 16 November 2004 in a principal amount of €12,000,000 (or its equivalent in another
currency); and 

  

	 	(b)	the $50,000,000 subordinated loan notes issued by the Account Party on 21 September 2006 due 2036; 

“Subsidiary” means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006; 

“Substitution Letter” a letter dated on or about the date of this agreement from Lloyd’s to the Account Party in the
form agreed between the Facility Agent and the Account Party; 
 “Syndicate” means a group of Members or a
single Corporate Member underwriting insurance business at Lloyd’s through the agency of a managing agent to which a particular syndicate number is assigned by the Council of Lloyd’s; 

“Syndicate Allocated Capacity” means, in relation to any Syndicate, a reference to the aggregate of the Member’s
Syndicate Premium Limits of all the members for the time being that Syndicate; 
 “Syndicate Arrangement” means
any arrangement (whether pursuant to guarantees, letters of credit or otherwise) entered into by a managing agent at Lloyd’s on behalf of the Chaucer Names, together with the other members of a Syndicate with respect to financing or reinsurance
for the purposes of or in connection with the underwriting business carried on by all such members of that Syndicate; 

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or
interest payable in connection with any failure to pay or any delay in paying any of the same); 

  
 13 

 “Term” means, save as otherwise provided in this agreement: 

 

	 	(a)	in relation to any Letter of Credit, the period from its Commencement Date until its Expiry Date; and 

 

	 	(b)	in relation to an Unpaid Sum, any Interest Period; 

 “Third Party Syndicate” means a syndicate at Lloyd’s: 
  

	 	(a)	which is managed by the Third Party Syndicate Managing Agent; or 

  

	 	(b)	through which the Chaucer Name underwrites business at Lloyd’s, 

 and which, in each case, is not a Managed Syndicate; 
 “Third Party
Syndicate Managing Agent” means the Managing Agent or a limited liability company which is controlled by the Account Party; 
 “Total Commitments” means, at any time, the aggregate of the Lenders’ Commitments, being £90,000,000 at the date of this agreement; 

“Transfer Certificate” means a certificate substantially in the form set out in schedule 6 (Form of Transfer Certificate)
or any other form agreed between the Facility Agent and the Account Party; 
 “Transfer Date” means, in relation
to an assignment or a transfer, the later of: 
  

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

 

	 	(b)	the date on which the Facility Agent executes the relevant Assignment Agreement or Transfer Certificate; 

“Uncollateralised Outstandings” means the Outstandings in respect of which the Account Party has not provided funds by
way of Cash Collateral to the Security Agent; 
 “Unpaid Sum” means any sum due and payable but unpaid by an
Obligor under the Finance Documents; 
 “US Dollars” and “$” means the lawful currency of the
USA; 
 “Utilisation” means a utilisation of the Facility; 

“Utilisation Date” means the date of a Utilisation, being the date on which the relevant Letter of Credit is to be issued
(or, as applicable, amended); 
 “Utilisation Request” means a notice substantially in the form set out in
schedule 3 (Requests); 
 “VAT” means value added tax as provided for in the Value Added Tax Act 1994 and any
other tax of a similar nature; and 
 “Voluntary Collateralisation Date” means, in any year, any of
1 January, 31 March, 30 June and 30 September or, if such date is not a Business Day, the next Business Day. 

  
 14 

	1.2	Construction 

  

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

  

	 	(i)	the “Facility Agent”, the “Arrangers”, the “Security Agent”, any “Secured Party”, any
“Finance Party”, any “Lender”, the “Overdraft Provider”, any “Obligor” or any “Party” or any other person shall be construed so as to include its successors in
title, permitted assigns and permitted transferees; 

  

	 	(i)	“amendment” includes any amendment, supplement, variation, novation, modification, replacement or restatement and “amend”,
“amending” and “amended” shall be construed accordingly; 

  

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

 

	 	(iii)	a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated,
supplemented, extended or restated (however fundamentally) (excluding any amendment, novation, supplement, extension or restatement made contrary to any provision of the Finance Documents); 

 

	 	(iv)	“including” means including without limitation and “includes” and “included” shall be construed accordingly;

  

	 	(v)	“indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future,
actual or contingent; 

  

	 	(vi)	a “person” includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture,
consortium or partnership (whether or not having separate legal personality) of two or more of the foregoing; 

  

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

  

	 	(viii)	“controlled” for the purposes of the defined term “Third Party Syndicate Managing Agent” means that the Account Party:

  

	 	(A)	has the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to cast, or control the casting of, more than 50 per cent. of the
maximum number of votes that might be cast at a general meeting of the relevant company; or 

  

	 	(B)	holds beneficially 50 per cent. or more of the issued share capital of such a company (excluding any part of that issued share capital that carries no right to
participate beyond a specified amount in a distribution of either profits or capital); 

  

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

 

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

  

	 	(b)	Clause and schedule headings are for ease of reference only. 

  
 15 

	 	(c)	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this agreement. 

  

	 	(d)	A Default is “continuing” if it has not been remedied or waived. 

 

	1.3	Third Party Rights 

  

	 	(a)	Unless expressly provided to the contrary in a Finance Document a person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the
“Third Parties Act”) to enforce or to enjoy the benefit of any term of this agreement. 

  

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

  

	2.	THE FACILITY 

  

	2.1	The Facility 

 Subject to
the terms of this agreement, the Lenders make available to the Account Party a sterling letter of credit facility in an aggregate principal amount equal to the Total Commitments. 

 

	2.2	Finance Parties’ Rights and Obligations 

  

	 	(a)	The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does
not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. 

 

	 	(b)	The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents
to a Finance Party from an Obligor shall be a separate and independent debt. 

  

	 	(c)	A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents. 

 

	2.3	Obligors’ Agent 

  

	 	(a)	Each Guarantor by its execution of this agreement or an Accession Letter irrevocably appoints the Account Party to act on its behalf as its agent in relation to the
Finance Documents and irrevocably authorises: 

  

	 	(i)	the Account Party on its behalf to supply all information concerning itself contemplated by this agreement to the Finance Parties and to give all notices and
instructions, to execute on its behalf any Accession Letter, to make such agreements and to effect the relevant amendments, supplements and variations (in each case, however fundamental) capable of being given, made or effected by any Guarantor
(notwithstanding that they may increase the Guarantor’s obligations or otherwise affect the Guarantor) and to give confirmation as to continuation of surety obligations, without further reference to or the consent of that Guarantor; and

  
 16 

	 	(ii)	each Finance Party to give any notice, demand or other communication to that Guarantor pursuant to the Finance Documents to the Account Party, 

and in each case the Guarantor shall be bound as though the Obligor itself had given the notices and instructions (including, without
limitation, any Utilisation Requests) or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication. 

 

	 	(b)	Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Obligors’
Agent or given to the Obligors’ Agent under any Finance Document on behalf of a Guarantor or in connection with any Finance Document (whether or not known to any Guarantor and whether occurring before or after such Guarantor became a Guarantor
under any Finance Document) shall be binding for all purposes on that Guarantor as if that Guarantor had expressly made, given or concurred with it. In the event of any conflict between any notices or other communications of the Obligors’ Agent
and any Guarantor, those of the Obligors’ Agent shall prevail. 

  

	3.	PURPOSE 

  

	3.1	Purpose and Application 

 The Facility is made available to the Account Party for the purpose of providing one or more Letters of Credit to be used as Funds at Lloyd’s to support and stand security for the general business at
Lloyd’s of Chaucer No. 2 for the 2010, 2011 and 2012 years of account and each prior open year of account and, accordingly, the Account Party shall ensure that Chaucer No. 2 will apply all amounts raised by it under this agreement
towards the satisfaction of that purpose. 
  

	3.2	Monitoring 

 No Finance
Party is bound to monitor or verify the application of any amount raised pursuant to this agreement. 
  

	4.	RANKING AND APPLICATION OF FUNDS AT LLOYD’S 

  

	4.1	Ranking of Funds at Lloyd’s 

 It is acknowledged by the Parties that, subject to the duties of Lloyd’s as trustee of all Funds at Lloyd’s and to any conditions and requirements prescribed under the Membership Byelaw (No. 5
of 2005) which are for the time being applicable, the Facility will provide Funds at Lloyd’s for Chaucer No. 2 for the 2010, 2011 and 2012 years of account and each prior open year of account which, to the extent that the Account Party is
able to procure the same upon and subject to the terms of this agreement, shall rank senior to all Funds at Lloyd’s of Chaucer No. 2 constituted from time to time by Own FAL, Reinsurance FAL and Other FAL (together the
“Subordinated Funds at Lloyd’s”). 
  

	4.2	Application of Funds at Lloyd’s  

 The Account Party shall use all reasonable endeavours to ensure that the Subordinated Funds at Lloyd’s of Chaucer No. 2 are applied or otherwise utilised to the fullest extent possible before
any payment is requested under a Letter of Credit. 
  

	5.	CONDITIONS OF UTILISATION 

  

	5.1	Initial Conditions Precedent 

 The Account Party may only deliver a Utilisation Request if the Facility Agent has received all of the documents and other evidence listed in part 1 of schedule 2 (Conditions Precedent) in form and
substance satisfactory to the Facility Agent. The Facility Agent shall notify the Account Party and the Lenders promptly upon being so satisfied. 

  
 17 

	5.2	Further Conditions Precedent 

 Subject to clause 5.1 (Initial Conditions Precedent), the Lenders will only be obliged to comply with clause 6.4 (Each Lender’s Participation in Letters of Credit) if, on the date of the Utilisation
Request and on the proposed Utilisation Date: 
  

	 	(a)	no Default is continuing or would result from the issue of the proposed Letter of Credit; and 

 

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

 

	6.	UTILISATION 

  

	6.1	Delivery of a Utilisation Request 

 The Account Party may utilise the Facility by delivery to the Facility Agent of a duly completed Utilisation Request no later than five Business Days before the proposed Utilisation Date (or such shorter
period as the Facility Agent may agree). 
  

	6.2	Completion of a Utilisation Request 

 Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless: 
  

	 	(a)	the proposed Utilisation Date is a Business Day falling on or before 31 December 2011; 

 

	 	(b)	the proposed Term of the Letter of Credit is not less than four years and the Expiry Date of the Letter of Credit is no later than 31 December 2015;

  

	 	(c)	the proposed Commencement Date of the Letter of Credit is a Business Day falling within the Availability Period; 

 

	 	(d)	the Letter of Credit is substantially in the form set out in schedule 4 (Form of Letter of Credit); 

 

	 	(e)	the beneficiary of the Letter of Credit is Lloyd’s; 

  

	 	(f)	the currency and amount of the Letter of Credit comply with clause 6.3 (Currency and Amount); and 

 

	 	(g)	as a result of the proposed Utilisation, no more than three Letters of Credit would be outstanding. 

 

	6.3	Currency and Amount 

  

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

  

	 	(b)	The amount of the proposed Letter of Credit is: 

  

	 	(i)	a minimum of £250,000 or, if less, the Available Facility; and 

  

	 	(ii)	less than or equal to the Available Facility. 

  
 18 

	6.4	Each Lender’s Participation in Letters of Credit 

  

	 	(a)	If the conditions set out in this agreement have been met, each Lender shall participate in each Letter of Credit through its Facility Office. 

 

	 	(b)	Save as otherwise provided in this agreement, the amount of each Lender’s participation in each Letter of Credit issued in accordance with this clause 6 will be
equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to the issue of that Letter of Credit. 

  

	6.5	Applied Letters of Credit 

 If, notwithstanding the provisions of clause 4.2 (Application of Funds at Lloyd’s), any sum is paid under a Letter of Credit (an “Applied Letter of Credit”) which is greater than any
sum which would have been paid had Subordinated Funds at Lloyd’s been applied prior to the Funds at Lloyd’s provided pursuant to this Facility in accordance with clause 4.2 (Application of Funds at Lloyd’s) (the difference between the
sum paid under the Applied Letter of Credit and the sum which should have been paid being the “Overpayment”), the Account Party shall, to any extent necessary to facilitate the indemnification of the Lenders under clause 10.1
(Account Party’s Indemnity to the Lenders), use all reasonable endeavours to procure the release by Lloyd’s of the Subordinated Funds at Lloyd’s and, upon the Lenders being indemnified in full thereunder (but subject to the Lenders
receiving confirmation in writing from the Account Party that no Default is continuing): 
  

	 	(a)	a supplementary Letter of Credit will be issued by the Facility Agent on behalf of the Lenders in an amount equal to the Overpayment having an Expiry Date which is the
same as that of the Applied Letter of Credit; or 

  

	 	(b)	the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the Overpayment. 

 

	6.6	Completion of Letters of Credit 

 The Facility Agent is authorised to arrange for the issue or amendment of any Letter of Credit pursuant to clause 6.2 (Completion of a Utilisation Request) or clause 6.5 (Applied Letters of Credit) by:

  

	 	(a)	completing the Commencement Date and the Expiry Date of that Letter of Credit; 

 

	 	(b)	(in the case of an amendment increasing or decreasing the amount thereof) amending that Letter of Credit in such manner as Lloyd’s may agree;

  

	 	(c)	completing schedule 1 to that Letter of Credit with the percentage participation of each Lender as allocated pursuant to the terms of this agreement;

  

	 	(d)	executing that Letter of Credit and following such execution delivering that Letter of Credit to Lloyd’s on the Utilisation Date; and 

 

	 	(e)	issuing such formal notification as Lloyd’s may require confirming that the Letter of Credit has been issued or amended. 

 

	7.	EXTENSION OF THE FACILITY 

  

	 	(a)	The Account Party may, on one occasion only during the life of the Facility, request that the Total Commitments are increased by up to an additional £10,000,000
(the “Facility Extension Amount”) if the remaining provisions of this clause 7 are complied with. 

  
 19 

	 	(b)	The Account Party may confirm that one or more Lenders or any other entity referred to in paragraph (c) below (each a “Facility Extension Lender”)
have agreed to participate in the Facility Extension by delivering to the Facility Agent, within the Availability Period, a Facility Extension Notice duly signed by those parties that have agreed to participate in the Facility Extension. Upon
receipt of Facility Extension Notice, the Facility Agent shall notify the Lenders of the name of any Facility Extension Lender who is a New Lender. 

  

	 	(c)	The Account Party shall offer the existing Lenders at the relevant time the opportunity to provide a proportion of the Facility Extension Amount. If no, or
insufficient, Lenders give a notice of an intention to provide that Facility Extension Amount (an “Existing Lender Notice”) on terms satisfactory to the Account Party within any time limit specified by the Account Party in that
offer to the Lenders (being not less than ten Business Days) then, subject to compliance with the terms of this clause 7 (Extension of the Facility), any other bank, financial institution, trust, fund or other entity which is regularly engaged in or
established for the purpose of making, purchasing or investing in loans, securities or other financial assets (a “New Lender”) may provide or participate in that Facility Extension provided that such New Lender is an Approved Credit
Institution. 

  

	 	(d)	A New Lender shall accede as a Lender in accordance with clause 27.5 (Procedure for Transfer or Accession). 

 

	8.	TERMINATION OF LETTERS OF CREDIT 

  

	8.1	Availability and Termination Provisions 

 The Finance Parties agree that each Letter of Credit will continue in effect until such time as a notice is given in accordance with the terms of clause 8.2 (Notice of Termination) and that accordingly
such Letter of Credit will expire on the later of the date specified in the notice and: 
  

	 	(a)	in relation to any Letter of Credit that the parties intend to cover the 2011 year of account (and each prior open year of account but no subsequent year of account),
31 December 2014; and 

  

	 	(b)	in relation to any Letter of Credit that the parties intend to cover the 2012 year of account (and each prior open year of account but no subsequent year of account),
31 December 2015. 

  

	8.2	Notice of Termination 

The parties hereto agree that, in respect of every Letter of Credit issued in accordance with this Agreement, the Facility Agent shall, in
respect of: 
  

	 	(a)	the 2010 year of account and 2011 year of account (and each prior open year of account but no subsequent year of account) no earlier than 1 October 2010 and no
later than 31 December 2010, give a Notice of Termination to Lloyd’s so that each such Letter of Credit expires on 31 December 2014; and 

  

	 	(b)	the 2012 year of account (and each prior open year of account but no subsequent year of account) no earlier than 1 October 2011 and no later than 31 December
2011, give a Notice of Termination to Lloyd’s so that each such Letter of Credit expires on 31 December 2015, 

 and upon such expiry, the maximum actual and contingent liabilities of the Finance Parties thereunder are reduced to zero). 

  
 20 

	9.	NOTIFICATION 

  

	9.1	Letters of Credit 

 Not
less than one Business Day before the first day of a Letter of Credit, the Facility Agent shall notify each Lender of: 
  

	 	(a)	the proposed length of the relevant Term; and 

  

	 	(b)	the aggregate principal amount, 

of that Letter of Credit allocated to that Lender pursuant to this agreement. 

 

	9.2	Demands under a Letter of Credit 

 If a demand is made under a Letter of Credit, the Facility Agent shall promptly make demand upon the Account Party in accordance with this agreement and notify the Lenders. 

 

	10.	ACCOUNT PARTY’S LIABILITIES IN RELATION TO LETTERS OF CREDIT 

  

	10.1	Account Party’s Indemnity to the Lenders 

 The Account Party shall irrevocably and unconditionally as a primary obligation indemnify each Finance Party, within 3 Business Days of a written demand by the Facility Agent, against: 

 

	 	(a)	any sum paid or due and payable by that Finance Party under or in connection with any Letter of Credit; and 

 

	 	(b)	all liabilities, costs (including, without limitation, any costs incurred in funding any amount which falls due from that Finance Party under or in connection with any
Letter of Credit), claims, losses and expenses which that Finance Party may at any time incur or sustain in connection with any Letter of Credit (other than as a result of its gross negligence or wilful misconduct). 

 

	10.2	Preservation of Rights 

The obligations of the Account Party under this clause 10 will not be affected by any act, omission, matter or thing which, but for this
clause, would reduce, release or prejudice any of its obligations under this clause including (without limitation and whether or not known to it or any other person): 
  

	 	(a)	any time, waiver or consent granted to, or composition with, any Obligor, any beneficiary under a Letter of Credit or any other person; 

 

	 	(b)	the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor or any member of the Group;

  

	 	(c)	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Obligor, any beneficiary under a Letter of Credit or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

  

	 	(d)	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor, any beneficiary under a Letter of
Credit or any other person; 

  
 21 

	 	(e)	any amendment (however fundamental) or replacement of a Finance Document, any Letter of Credit or any other document or security; 

 

	 	(f)	any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document, any Letter of Credit or any other document or security; or

  

	 	(g)	any insolvency or similar proceedings. 

  

	10.3	Settlement Conditional 

Any settlement or discharge between the Account Party and the Facility Agent or any Lender shall be conditional upon no security or
payment to the Facility Agent or any Lender by the Account Party, or any other person on behalf of the Account Party, being avoided or reduced by virtue of any laws relating to bankruptcy, insolvency, liquidation or similar laws of general
application and, if any such security or payment is so avoided or reduced, the Facility Agent shall be entitled to recover the value or amount of such security or payment from the Account Party subsequently as if such settlement or discharge had not
occurred. 
  

	10.4	Right to make Payments under Letters of Credit 

  

	 	(a)	Each Lender shall be entitled to make any payment in accordance with the terms of a Letter of Credit without any reference to or further authority from the Account
Party, the other Finance Parties or any other investigation or enquiry. The Account Party irrevocably authorises the Lenders to comply with any demand under a Letter of Credit which appears on its face to be in order (a “demand”).

  

	 	(b)	The obligations of the Account Party under this clause 10 will not be affected by: 

 

	 	(i)	the sufficiency, accuracy or genuineness of any demand or other document; or 

 

	 	(ii)	any incapacity of, or limitation on the powers of, any person signing a demand or other document. 

 

	11.	COLLATERALISATION AND CANCELLATION 

  

	11.1	Cancellation of the Facility 

 The Account Party may, by giving to the Facility Agent not less than five Business Days’ prior notice to that effect, cancel the whole or any part (being a minimum amount of £2,500,000 and an
integral multiple of £500,000) of the Available Facility. Any such cancellation shall reduce the Available Commitment and Commitment of each Lender rateably. 
  

	11.2	Mandatory Cash Collateralisation of Letters of Credit 

  

	 	(a)	On or prior to the first Utilisation Date, the Account Party shall procure, in accordance with the condition precedent at paragraph 5.1, Part 1 of Schedule 2
(Conditions Precedent), that the liability of the Lenders under any Letter of Credit is Cash Collateralised so that the aggregate Collateralised Outstandings in respect of all Letters of Credit are (and shall remain) no less than £10,000,000.

  

	 	(b)	On or prior to 24 November 2011, the Account Party shall procure that either: 

 

	 	(i)	the aggregate Outstandings are reduced; or 

  
 22 

	 	(ii)	the liability of the Lenders under any Letter of Credit is Cash Collateralised in minimum amounts of £1,000,000 (and in integral multiples of £1,000,000
thereafter), 

 so that the aggregate Uncollateralised Outstandings in respect of all Letters of Credit are (and
shall remain) no greater than £50,000,000. 
  

	11.3	Voluntary Cash Collateralisation of Letters of Credit 

  

	 	(a)	The Account Party may, by giving to the Facility Agent not less than five Business Days’ prior notice to that effect, procure that, on any Voluntary
Collateralisation Date, the liability of the Lenders under any Letter of Credit is Cash Collateralised in minimum amounts of £1,000,000 (and in integral multiples of £1,000,000 thereafter) up to a maximum aggregate amount of 50 per
cent. of the Outstandings at any time. On receipt by the Facility Agent of such notice, the Facility Agent shall promptly notify the Lenders of the Account Party’s intention to provide Cash Collateral. 

 

	 	(b)	On receipt by the Facility Agent of Cash Collateral in accordance with paragraph (a) above or at any time where the Account Party has provided Cash Collateral to
the Facility Agent in respect of any Letter of Credit pursuant to the terms of this agreement, the Letter of Credit Commission Rate on the maximum actual and contingent liabilities of the Lenders under the relevant Letter of Credit in respect of
which Cash Collateral has been provided by the Account Party shall fall to 0.30 per cent. per annum at that time. 

  

	 	(c)	For so long as no Event of Default has occurred which is continuing, the Account Party may give the Facility Agent not less than five Business Days’ notice of its
intention to procure that on any Voluntary Collateralisation Date the Account Party shall have the right to withdraw any Cash Collateral provided in accordance with paragraph (a) above (whereupon it shall do so). At any time when the Account
Party has withdrawn Cash Collateral in respect of any Letter of Credit pursuant to the terms of this agreement, the Letter of Credit Commission Rate on the maximum actual and contingent liabilities of the Lenders under all Letters of Credit in
respect of the Uncollateralised Outstandings shall immediately be increased to 2.85 per cent. per annum at that time. 

  

	11.4	Change of control 

  

	 	(a)	If any person or group of persons acting in concert gains control of the Account Party: 

 

	 	(i)	the Account Party shall promptly notify the Facility Agent upon becoming aware of that event; 

 

	 	(ii)	the Lenders shall not thereafter be obliged to participate in or issue any further Letter of Credit; 

 

	 	(iii)	the Facility Agent shall, if so instructed by all the Lenders, by not less than five Business Days’ notice to the Account Party, cancel the Total Commitments and
declare all amounts (together with any accrued interest, commission and fees) accrued under the Finance Documents immediately due and payable; 

  

	 	(iv)	the Account Party shall procure that on such date as the Facility Agent shall have specified (acting on the instructions of all the Lenders) the liabilities of the
Lenders under or in respect of each Letter of Credit is reduced to zero or otherwise secured by providing Cash Collateral in an amount equal to the aggregate Outstandings; and 

  
 23 

	 	(v)	the Facility Agent shall give a Notice of Termination to Lloyd’s in respect of each Letter of Credit for which the Outstandings are reduced to zero in accordance
with this clause 11.4. 

  

	 	(b)	For the purpose of this clause 11.4, “control” means: 

  

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

 

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

  

	 	(B)	appoint or remove all, or the majority, of the directors or other equivalent officers of the Account Party; or 

 

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

  

	 	(ii)	the holding beneficially of more than one half of the issued share capital of the Account Party (excluding any part of that issued share capital that carries no right
to participate beyond a specified amount in a distribution of either profits or capital). 

  

	 	(c)	For the purpose of this clause 11.4, “acting in concert” means, a group of persons who, pursuant to an agreement or understanding (whether formal or
informal), actively co-operate, through the acquisition by any of them, either directly or indirectly, of shares in the Account Party, to obtain or consolidate control of the Account Party. 

 

	11.5	Notice of Removal of a Lender 

 If: 
  

	 	(a)	any sum payable to any Lender by an Obligor is required to be increased pursuant to clause 13.2 (Tax Gross-up); or 

 

	 	(b)	any Lender claims indemnification from the Account Party under clause 13.3 (Tax Indemnity) or clause 14 (Increased Costs); or 

 

	 	(c)	any Lender is a Defaulting Lender 

the Account Party may, whilst such circumstance giving rise to the requirement or indemnification continues or (as the context requires)
whilst the relevant Lender is a Defaulting Lender, give the Facility Agent at least five Business Days’ notice (which notice shall be irrevocable) of its intention to procure that the liabilities of that Lender under each Letter of Credit are
reduced to zero and/or provide Cash Collateral in an amount equal to such Lender’s Proportion of each Letters of Credit. 

Upon receipt by the Facility Agent of such notice, the Commitment of the relevant Lender shall immediately be reduced to zero and, on the
last day of each Term which ends after the Account Party has given any such notice (or, if earlier, the date specified by the Account Party in that notice) the Account Party shall procure either that that Lender’s Proportion of each Letter of
Credit be reduced to zero (by reduction of the amount of that Letter of Credit in an amount equal to that Lender’s Proportion) or that it is otherwise secured by providing Cash Collateral to the Facility Agent in an amount equal to that
Lender’s Outstandings. 

  
 24 

	11.6	No Further Availability 

A Lender whose total aggregate liabilities under each Letter of Credit have been reduced to zero or Cash Collateralised pursuant to clause
11.5 (Notice of Removal of a Lender) or have been Cash Collateralised pursuant to clause 11.3 (Voluntary Cash Collateralisation of Letters of Credit) shall not be obliged to participate in any Letter of Credit issued on or after the date upon which
the Facility Agent receives the Account Party’s notice of its intention to procure the repayment of or provide Cash Collateral in respect of such Lender’s share of the Outstandings, and such Lender’s Available Commitment shall be
reduced to zero. 
  

	11.7	No Other Cancellation 

The Available Facility may be cancelled, and the liabilities of each Lender under any Letter of Credit may be reduced to zero, only at the
times and in the manner expressly provided for herein. 
  

	11.8	Reduction of Liabilities to Zero 

 For the purposes of this Clause 11 and all other purposes of this agreement, each Lender’s liability under any Letter of Credit shall be deemed to be reduced to zero upon the determination by
Lloyd’s (or other trustee for the time being) of the trusts created by the Corporate Member’s Deed in respect of that Letter of Credit and the return to each Lender of that Letter of Credit for cancellation. 

 

	12.	COMMISSION AND FEES 

  

	12.1	Letter of Credit Commission 

 The Account Party shall, in respect of each Letter of Credit requested by it, pay to the Facility Agent for the account of each Lender (for distribution in proportion to each Lender’s Proportion of
such Letter of Credit) a letter of credit commission in Sterling at the relevant L/C Commission Rate on the Outstandings under the relevant Letter of Credit. Such letter of credit commission shall be paid in arrears in respect of each successive
period of three months (or such shorter period as shall end on the relevant Expiry Date) which begins during the Term of the relevant Letter of Credit, the first such payment to be made on the date falling three months after the Utilisation Date for
such Letter of Credit and thereafter on the last day of each successive three month period. 
  

	12.2	Commitment Fee 

  

	 	(a)	The Account Party shall pay to the Facility Agent (for the account of each Lender) a commitment fee in Sterling computed at the rate of 1.14 per cent. per annum on
that Lender’s Available Commitment under the Facility for the Availability Period. 

  

	 	(b)	The accrued commitment fee is payable quarterly in arrears on the last day of each successive period of three Months which ends during the relevant Availability Period,
on the last day of a Availability Period and on any cancelled amount of the Lender’s Commitment at the time the cancellation is effective. 

  

	12.3	Participation Fee 

 The
Account Party shall pay to the Facility Agent (for the account of each Original Lender) a participation fee in the amount and at the time agreed in a Fee Letter. 
  

	12.4	Agency Fee 

 The Account
Party shall pay to the Facility Agent and the Security Agent an agency fee in the amount and at the times agreed in a Fee Letter. 

  
 25 

	13.	TAX GROSS-UP AND INDEMNITIES 

  

	13.1	Definitions 

  

	 	(a)	In this agreement: 

“Protected Party” means a Finance Party which is or will be subject to any liability, or required to make any payment,
for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document; 
 “Qualifying Lender” means: 
  

	 	(i)	a Lender (other than a Lender within paragraph (ii) below) which is beneficially entitled to interest payable to that Lender in respect of an advance under a
Finance Document and is: 

  

	 	(A)	a Lender: 

  

	 	(aa)	which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Finance Document; or 

 

	 	(bb)	in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the time that that advance
was made, 

 and which is within the charge to United Kingdom corporation tax as respects any payments of interest
made in respect of that advance; or 
  

	 	(B)	a Treaty Lender; or 

  

	 	(ii)	a building society (as defined for the purpose of section 880 of the ITA) making an advance under a Finance Document; 

“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax; 

“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment under a Finance Document;

 “Tax Payment” means an increased payment made by an Obligor to a Finance Party under clause 13.2 (Tax
Gross-Up) or a payment under clause 13.3 (Tax Indemnity); 
 “Treaty Lender” means a Lender which: 

 

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

 

	 	(ii)	does not carry on a business in the United Kingdom through a permanent establishment with which that Lender’s participation in the Loan is effectively connected;
and 

 “Treaty State” means a jurisdiction having a double taxation agreement (a
“Treaty”) with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest. 

  
 26 

	 	(b)	Unless a contrary indication appears, in this clause 13 a reference to “determines” or “determined” means a determination made in the
absolute discretion of the person making the determination. 

  

	13.2	Tax Gross-Up 

  

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

 

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

  

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

  

	 	(d)	A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by the United Kingdom if on the date on which the
payment falls due: 

  

	 	(i)	the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is not or has
ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this agreement in (or in the interpretation, administration, or application of) any law or Treaty, or any published practice or published
concession of any relevant taxing authority; or 

  

	 	(ii)	the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax
Deduction had that Lender complied with its obligations under paragraph (g) below. 

  

	 	(e)	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the
time allowed and in the minimum amount required by law. 

  

	 	(f)	Within 30 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to
the Facility Agent for the Finance Party entitled to the payment a statement under section 975 of the ITA or other evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment
paid to the relevant taxing authority. 

  

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

  

	13.3	Tax Indemnity 

  

	 	(a)	The Account Party shall (within three Business Days of demand by the Facility Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that
Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document. 

  
 27 

	 	(b)	Paragraph (a) above shall not apply: 

  

	 	(i)	with respect to any Tax assessed on a Finance Party: 

  

	 	(A)	under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is
treated as resident for tax purposes; or 

  

	 	(B)	under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,

 if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum
deemed to be received or receivable) by that Finance Party; or 
  

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

  

	 	(A)	is compensated for by an increased payment under clause 13.2 (Tax Gross-Up); or 

 

	 	(B)	would have been compensated for by an increased payment under clause 13.2 (Tax Gross-Up) but was not so compensated solely because one of the exclusions in clause
13.2(d) (Tax Gross-Up) applied. 

  

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

  

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

 

	13.4	Tax Credit 

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

	 	(a)	a Tax Credit is attributable to all or part of that Tax Payment; and 

  

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

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

	13.5	Lender Status Confirmation 

Each Lender which becomes a Party to this agreement after the date of this agreement shall indicate, in the Transfer Certificate,
Assignment Agreement or Accession Letter which it executes on becoming a Party, and for the benefit of the Facility Agent and without liability to any Obligor, which of the following categories it falls in: 

 

	 	(a)	not a Qualifying Lender; 

  

	 	(b)	a Qualifying Lender (other than a Treaty Lender); or 

  
 28 

	 	(c)	a Treaty Lender. 

 If a new
Lender fails to indicate its status in accordance with this clause 13.5 then such new Lender shall be treated for the purposes of this agreement (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the
Facility Agent which category applies (and the Facility Agent, upon receipt of such notification, shall inform the Account Party). For the avoidance of doubt, a Transfer Certificate or Assignment Agreement shall not be invalidated by any failure of
a Lender to comply with this clause 13.5. 
  

	13.6	Stamp Taxes 

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

	13.7	VAT 

  

	 	(a)	All amounts set out or expressed in a Finance Document to be payable by any Party to a Finance Party which (in whole or in part) constitute the consideration for a
supply or supplies for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such supply or supplies, and accordingly, subject to paragraph (b) below, if VAT is chargeable on any supply made by any Finance Party to any
Party under a Finance Document, that Party shall pay to the Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of such VAT (and such Finance Party shall promptly
provide an appropriate VAT invoice to such Party). 

  

	 	(b)	If VAT is or becomes chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the “Recipient”)
under a Finance Document, and any Party other than the Recipient (the “Subject Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being
required to reimburse the Recipient in respect of that consideration), such Party shall also pay to the Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT. The Recipient will promptly pay
to the Subject Party an amount equal to any credit or repayment obtained by the Recipient from the relevant tax authority which it reasonably determines is in respect of such VAT. 

 

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

  

	 	(d)	Any reference in this clause 13.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and
unless the context otherwise requires) a reference to the representative member of such group at such time (the term “representative member” to have the same meaning as in the Value Added Tax Act 1994). 

  
 29 

	14.	INCREASED COSTS 

  

	14.1	Increased Costs 

  

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

  

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

 

	 	(ii)	compliance with any law or regulation, 

 made after the date of this agreement. 
  

	 	(b)	In this agreement “Increased Costs” means: 

  

	 	(i)	a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital; 

 

	 	(ii)	an additional or increased cost; or 

  

	 	(iii)	a reduction of any amount due and payable under any Finance Document, 

 which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its
obligations under any Finance Document. 
  

	14.2	Increased Cost Claims 

  

	 	(a)	A Finance Party intending to make a claim pursuant to clause 14.1 (Increased Costs) shall notify the Facility Agent of the event giving rise to the claim, following
which the Facility Agent shall promptly notify the Account Party. 

  

	 	(b)	Each Finance Party shall, as soon as practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Increased Costs.

  

	14.3	Exceptions 

  

	 	(a)	Clause 14.1 (Increased Costs) does not apply to the extent that any Increased Cost is: 

 

	 	(i)	attributable to a Tax Deduction required by law to be made by an Obligor; 

  

	 	(ii)	compensated for by clause 13.3 (Tax Indemnity) (or would have been compensated for under clause 13.3 (Tax Indemnity) but was not so compensated solely because any of
the exclusions in clause 13.3(b) (Tax Indemnity) applied); or 

  

	 	(iii)	attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation. 

 

	 	(b)	In this clause 14.3, a reference to a “Tax Deduction” has the same meaning given to the term in clause 13.1 (Definitions). 

  
 30 

	15.	OTHER INDEMNITIES 

  

	15.1	Currency Indemnity 

  

	 	(a)	If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be
converted from the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of: 

 

	 	(i)	making or filing a claim or proof against that Obligor; 

  

	 	(ii)	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, 

that Obligor shall as an independent obligation, within three Business Days of demand, indemnify each Finance Party to whom that Sum is
due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate
or rates of exchange available to that person at the time of its receipt of that Sum. 
  

	 	(b)	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it
is expressed to be payable. 

  

	15.2	Other Indemnities 

 The
Account Party shall (or shall procure that an Obligor will), within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of: 

 

	 	(a)	the occurrence of any Event of Default; 

  

	 	(b)	a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of
clause 32 (Sharing among the Finance Parties); 

  

	 	(c)	issuing or making arrangements to issue a Letter of Credit requested by the Account Party in a Utilisation Request but not issued by reason of the operation of any one
or more of the provisions of this agreement (other than by reason of default or negligence by that Finance Party alone). 

  

	15.3	Indemnity to the Facility Agent 

 The Account Party shall promptly indemnify the Facility Agent against any cost, loss or liability incurred by the Facility Agent (acting reasonably) as a result of: 

 

	 	(a)	investigating any event which it reasonably believes is a Default; or 

  

	 	(b)	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised. 

 

	15.4	Indemnity to the Security Agent 

  

	 	(a)	Each Obligor shall promptly indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them:

  

	 	(i)	(acting reasonably) as a result of the taking, holding or protection of the Security; 

  
 31 

	 	(ii)	as a result of enforcement of the Security; 

  

	 	(iii)	(acting reasonably at any time other than when a Default is continuing) as a result of the exercise of any of the rights, powers, discretions and remedies vested in the
Security Agent and each Receiver and Delegate by the Finance Documents or by law; or 

  

	 	(iv)	any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents. 

 

	 	(b)	The Security Agent may, in priority to any payment to the Secured Parties, indemnify itself out of the Charged Property in respect of, and pay and retain, all sums
necessary to give effect to the indemnity in this clause 15.4 and shall have a lien on the Security and the proceeds of the enforcement of the Security for all monies payable to it. 

 

	16.	ILLEGALITY 

 The
provisions of this clause 16 shall take effect subject to clause 17.1 (Mitigation). If, at any time, it is or becomes unlawful in any applicable jurisdiction or prohibited pursuant to any request from or requirement of any central bank or other
fiscal, monetary or other authority (being a request or requirement with which banks are accustomed to comply) for a Lender to make, fund, issue, participate in or allow to remain outstanding all or part of the Letters of Credit, or to perform any
of its obligations as contemplated by this agreement, then: 
  

	 	(a)	that Lender shall, promptly after becoming aware of the same, deliver to the Account Party through the Facility Agent a notice to that effect; 

 

	 	(b)	that Lender shall not, following delivery of a notice in accordance with paragraph (a) above, be obliged to participate in or issue any Letter of Credit and its
Commitment shall be immediately reduced to zero; and 

  

	 	(c)	if that Lender so requires, the Account Party shall, on such date as the Facility Agent shall have specified: 

 

	 	(i)	repay all amounts owing to that Lender under this agreement; and 

  

	 	(ii)	ensure that the liabilities of that Lender under or in respect of each affected Letter of Credit are reduced to zero or otherwise secured by providing Cash Collateral
in an amount equal to that Lender’s Proportion of the Outstandings under that Letter of Credit. 

  

	17.	MITIGATION BY THE LENDERS 

  

	17.1	Mitigation 

  

	 	(a)	Each Finance Party shall, in consultation with the Account Party, take all reasonable steps to mitigate any circumstances which arise and which would result in any
amount becoming payable under or pursuant to, or cancelled pursuant to, any of clause 13 (Tax Gross-Up and Indemnities), clause 14 (Increased Costs) or clause 16 (Illegality) or including (but not limited to) transferring its rights and obligations
under the Finance Documents to another Affiliate or Facility Office. 

  

	 	(b)	Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents. 

  
 32 

	17.2	Limitation of Liability 

  

	 	(a)	The Account Party shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it
under clause 17.1 (Mitigation). 

  

	 	(b)	A Finance Party is not obliged to take any steps under clause 17.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it. 

  

	18.	COSTS AND EXPENSES 

  

	18.1	Transaction Expenses 

 The
Account Party shall, promptly on demand pay the Facility Agent, the Arrangers and the Security Agent the amount of all costs and expenses (including legal fees) reasonably incurred by any of them in connection with the negotiation, preparation,
printing, execution, syndication and perfection of: 
  

	 	(a)	this agreement and any other documents referred to in this agreement and the Security; and 

 

	 	(b)	any other Finance Documents executed after the date of this agreement. 

  

	18.2	Amendment Costs 

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to clause 33.9 (Change of
Currency), the Account Party shall, within three Business Days of demand, reimburse the Facility Agent, the Security Agent and any Receiver for the amount of all costs and expenses (including legal fees) reasonably incurred by any of them in
responding to, evaluating, negotiating or complying with that request or requirement. 
  

	18.3	Security Agent’s Ongoing Costs 

  

	 	(a)	In the event of: 

  

	 	(i)	a Default; or 

  

	 	(ii)	the Security Agent considering it necessary or expedient; or 

  

	 	(iii)	the Security Agent being requested by an Obligor or the Majority Lenders to undertake duties which the Security Agent and the Account Party agree to be of an
exceptional nature and/or outside the scope of the normal duties of the Security Agent under the Finance Documents, 

 the Account Party shall pay to the Security Agent any additional remuneration that may be agreed between them. 
  

	 	(b)	If the Security Agent and the Account Party fail to agree upon the nature of the duties or upon any additional remuneration, that dispute shall be determined by an
investment bank (acting as an expert and not as an arbitrator) selected by the Security Agent and approved by the Account Party or, failing approval, nominated (on the application of the Security Agent) by the President for the time being of the Law
Society of England and Wales (the costs of the nomination and of the investment bank being payable by the Account Party) and the determination of any investment bank shall be final and binding upon the Parties. 

  
 33 

	18.4	Enforcement and Preservation Costs 

 The Account Party shall, within three Business Days of demand, pay to the Arrangers and each other Secured Party the amount of all costs and expenses (including legal fees) incurred by it in connection
with the enforcement of or the preservation of any rights under any Finance Document and the Security and any proceedings instituted by or against the Security Agent as a consequence of taking or holding the Security or enforcing these rights.

  

	19.	DEFAULT INTEREST AND BREAKAGE COSTS 

  

	19.1	Default Interest Periods 

If any sum due and payable by an Obligor under a Finance Document is not paid on its due date or if any sum due and payable by the Obligor
under any judgement of any court in connection with any Finance Document is not paid on the date of such judgement, the period beginning on such due date or, as the case may be, the date of such judgement and ending on the date upon which the
obligation of such Obligor to pay such sum is discharged shall be divided into successive periods, each of which (other than the first) shall start on the last day of the preceding such period and the duration of each of which shall (except as
otherwise provided in this clause 19) be selected by the Facility Agent. 
  

	19.2	Default Interest 

 An
Unpaid Sum shall bear interest during each Term in respect thereof at the rate per annum which is the sum from time to time of 2.0 per cent. per annum above LIBOR (on the Quotation Day therefor) plus: 

 

	 	(a)	in respect of any portion of an Unpaid Sum under clause 10.1 (Account Party’s Indemnity to the Lenders) which is Cash Collateralised, 0.30 per cent. per
annum; and 

  

	 	(b)	in respect of the balance of an Unpaid Sum or any other Unpaid Sum, 2.85 per cent. per annum. 

 

	19.3	Payment of Default Interest 

 Any interest which has accrued under clause 19.2 (Default Interest) in respect of an Unpaid Sum shall be due and payable and shall be paid by the Obligor owing such Unpaid Sum on the last day of each
Interest Period in respect thereof or on such other dates as the Facility Agent may specify by notice to such Obligor. 
  

	19.4	Break Costs 

 If any
Lender or the Facility Agent on its behalf receives or recovers all or any part of an Unpaid Sum otherwise than on the last day of a Term in respect thereof, the Account Party shall pay to the Facility Agent on demand for the account of that Lender
an amount equal to the amount (if any) by which (a) the additional interest which would have been payable on the amount so received or recovered had it been received or recovered on the last day of such Term exceeds (b) the amount of
interest which in the opinion of the Facility Agent would have been payable to the Facility Agent on the last day of that Term in respect of a sterling deposit equal to the amount so received or recovered placed by it with a prime bank in the London
Interbank Market for a period starting on the first Business Day following the date of such receipt or recovery and ending on the last day of that Term. 

  
 34 

	20.	CHANGES TO THE CALCULATION OF INTEREST 

  

	20.1	Absence of Quotations 

Subject to clause 20.2 (Market Disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not
supply a quotation by 11.00 a.m. on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks. 
  

	20.2	Market Disruption 

  

	 	(a)	If a Market Disruption Event occurs in relation to an Unpaid Sum for any Interest Period, then the rate of interest on each Lender’s share of that Unpaid Sum for
the Interest Period shall be the percentage rate per annum which is the sum of: 

  

	 	(i)	two per cent. per annum; plus 

  

	 	(ii)	the rate notified to the Facility Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to
be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Unpaid Sum from whatever source it may reasonably select; and 

 

					
	(iii)	  	    (A)	  	 in respect of any portion of an Unpaid Sum under clause 10.1 (Account Party’s Indemnity to the Lenders) which is Cash Collateralised,
0.30 per cent. per annum; and

  

	 	(B)	in respect of the balance of an Unpaid Sum or any other Unpaid Sum, 2.85 per cent. per annum. 

 

	 	(b)	In this agreement “Market Disruption Event” means: 

  

	 	(i)	at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference Banks supplies a rate to
the Facility Agent to determine LIBOR for the relevant currency and Interest Period; or 

  

	 	(ii)	before close of business in London on the Quotation Day for the relevant Interest Period, the Facility Agent receives notifications from a Lender or Lenders (whose
participations in a Loan exceed 35 per cent. of that Unpaid Sum) that the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR. 

 

	20.3	Alternative Basis of Interest or Funding 

  

	 	(a)	If a Market Disruption Event occurs and the Facility Agent or the Account Party so requires, the Facility Agent and the Account Party shall enter into negotiations (for
a period of not more than 30 days) with a view to agreeing a substitute basis for determining the rate of interest. 

  

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

  
 35 

	21.	GUARANTEE AND INDEMNITY 

  

	21.1	Guarantee and Indemnity 

Each Guarantor irrevocably and unconditionally jointly and severally: 

 

	 	(a)	guarantees to each Guaranteed Finance Party punctual performance by each other Obligor of all that Obligor’s obligations under the Guaranteed Documents;

  

	 	(b)	undertakes with each Guaranteed Finance Party that whenever another Obligor does not pay any amount when due under or in connection with any Guaranteed Document, that
Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and 

  

	 	(c)	agrees with each Guaranteed Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and
primary obligation, indemnify that Guaranteed Finance Party immediately on demand against any cost, loss or liability it incurs as a result of the Account Party not paying any amount which would, but for such unenforceability, invalidity or
illegality, have been payable by it under any Guaranteed Document on the date when it would have been due. The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this clause 21 if the amount
claimed had been recoverable on the basis of a guarantee. 

  

	21.2	Continuing Guarantee 

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Guaranteed
Documents, regardless of any intermediate payment or discharge in whole or in part. 
  

	21.3	Reinstatement 

 If any
discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Guaranteed Finance Party in whole or in part on the basis of any payment, security or other
disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this clause 21 will continue or be reinstated as if the discharge, release or
arrangement had not occurred. 
  

	21.4	Waiver of Defences 

 The
obligations of each Guarantor under this clause 21 will not be affected by an act, omission, matter or thing which, but for this clause, would reduce, release or prejudice any of its obligations under this clause 21 (without limitation and whether
or not known to it or any Guaranteed Finance Party) including: 
  

	 	(a)	any time, waiver or consent granted to, or composition with, any Obligor or other person; 

 

	 	(b)	the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

  

	 	(c)	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; 

 

	 	(d)	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person;

  

	 	(e)	any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Guaranteed Document or any other
document or security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Guaranteed Document or other document or security;

  
 36 

	 	(f)	any unenforceability, illegality or invalidity of any obligation of any person under any Guaranteed Document or any other document or security; or

  

	 	(g)	any insolvency or similar proceedings. 

  

	21.5	Guarantor Intent 

 Without
prejudice to the generality of clause 21.4 (Waiver of Defences), each Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to
any of the Guaranteed Documents and/or any facility or amount made available under any of the Guaranteed Documents for the purposes of or in connection with any of the following: acquisitions of any nature; increasing working capital; enabling
investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such
facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing. 
  

	21.6	Immediate Recourse 

 Each
Guarantor waives any right it may have of first requiring any Guaranteed Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that
Guarantor under this clause 21. This waiver applies irrespective of any law or any provision of a Guaranteed Document to the contrary. 
  

	21.7	Appropriations 

 Until all
amounts which may be or become payable by the Obligors under or in connection with the Guaranteed Documents have been irrevocably paid in full, each Guaranteed Finance Party (or any trustee or agent on its behalf) may: 

 

	 	(a)	refrain from applying or enforcing any other moneys, security or rights held or received by that Guaranteed Finance Party (or any trustee or agent on its behalf) in
respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and 

 

	 	(b)	hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this clause 21.

  

	21.8	Deferral of Guarantors’ Rights 

 Until all amounts which may be or become payable by the Obligors under or in connection with the Guaranteed Documents have been irrevocably paid in full and unless the Facility Agent otherwise directs, no
Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Guaranteed Documents or by reason of any amount being payable, or liability arising under this clause 21: 

 

	 	(a)	to be indemnified by an Obligor; 

  

	 	(b)	to claim any contribution from any other guarantor of any Obligor’s obligations under the Guaranteed Documents; 

  
 37 

	 	(c)	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Guaranteed Finance Parties under the Guaranteed Documents
or of any other guarantee or security taken pursuant to, or in connection with, the Guaranteed Documents by any Finance Party; 

  

	 	(d)	to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a
guarantee, undertaking or indemnity under clause 21.1 (Guarantee and Indemnity); 

  

	 	(e)	to exercise any right of set-off against any Obligor; and/or 

  

	 	(f)	to claim or prove as a creditor of any Obligor in competition with any Guaranteed Finance Party. 

If a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or
distribution to the extent necessary to enable all amounts which may be or become payable to the Guaranteed Finance Parties by the Obligors under or in connection with the Guaranteed Documents to be repaid in full on trust for the Guaranteed Finance
Parties and shall promptly pay or transfer the same to the Facility Agent or as the Facility Agent may direct for application in accordance with clause 33 (Payment Mechanics). 

 

	21.9	Release of Guarantors’ Right of Contribution 

 If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with the terms of the Guaranteed Documents for the purpose of any sale or other disposal of that Retiring
Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor: 
  

	 	(a)	that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution
to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Guaranteed Documents; and 

  

	 	(b)	each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Guaranteed Documents to take the benefit (in whole or in
part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Guaranteed Document or of any other security taken pursuant to, or in connection with, any Guaranteed Document where such rights or security are
granted by or in relation to the assets of the Retiring Guarantor. 

  

	21.10	Additional Security 

 This
guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Guaranteed Finance Party. 
  

	22.	REPRESENTATIONS 

 Each
Obligor makes the representations and warranties set out in this clause 22 to each Finance Party on the date of this agreement. 
  

	22.1	Status 

  

	 	(a)	It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation. 

 

	 	(b)	It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted. 

  
 38 

	22.2	Binding Obligations 

Subject to the Legal Reservations, the obligations expressed to be assumed by it in each Finance Document are legal, valid, binding and
enforceable obligations. 
  

	22.3	Non-Conflict with other Obligations 

 The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with: 

 

	 	(a)	any law or regulation applicable to it; 

  

	 	(b)	its constitutional documents; or 

  

	 	(c)	any agreement or instrument binding upon it or any of its assets in such a way which is likely to have a material adverse effect on the interest of the Lenders under
the Finance Documents. 

  

	22.4	Power and Authority 

 It
has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents.

  

	22.5	Validity and Admissibility in Evidence 

 All Authorisations required: 
  

	 	(a)	to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; and 

 

	 	(b)	to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation, 

have been obtained or effected and are in full force and effect. 

 

	22.6	Legality, Validity and Enforceability 

 All acts, conditions and things required to be done, fulfilled and performed (other than compliance with section 860 of the Companies Act 2006) in order (a) to enable it lawfully to enter into,
exercise its rights under and perform and comply with the obligations expressed to be assumed by it in the Finance Documents and (b) to ensure that (subject to the Legal Reservations) the obligations expressed to be assumed by it in the Finance
Documents are legal, valid, binding and enforceable have been done, fulfilled and performed. 
  

	22.7	No Material Adverse Change 

Since the date as at which the most recent audited financial statements of the Group were stated to be prepared and save as disclosed in
writing to the Facility Agent on or prior to the date of this agreement, there has been no material adverse change in its business or financial condition or, as the case may be, that of the Group as a whole. 

 

	22.8	Insolvency 

 No:

  

	 	(a)	corporate action, legal proceeding or other procedure or step described in clause 26.8(a) (Insolvency Proceedings); or 

  
 39 

	 	(b)	creditors’ process described in clause 26.9 (Creditors’ Process), 

 has been taken or, to the knowledge of the Account Party, threatened in relation to a member of the Group; and none of the circumstances described in clause 26.7 (Insolvency) applies to a member of the
Group. 
  

	22.9	Deduction of Tax 

 It is
not required under the law of its jurisdiction of incorporation to make any deduction for or on account of Tax from any payment it may make under any Finance Document. 
  

	22.10	No Filing or Stamp Taxes 

Under the law of its jurisdiction of incorporation, it is not necessary that the Finance Documents be filed, recorded or enrolled with any
court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents, save for the registration of any registrable
charges created under the Security Documents and the payment of a fee in connection therewith. 
  

	22.11	No Default 

  

	 	(a)	No Event of Default and, on the date of this agreement, no Default is continuing or might reasonably be expected to result from the making of any Utilisation.

  

	 	(b)	No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or
to which its (or any of its Subsidiaries’) assets are subject which would have a Material Adverse Effect. 

  

	22.12	No Misleading Information 

All written information provided to a Finance Party by any member of the Group was true, complete and accurate in all material respects as
at the date it was provided and is not misleading in any material respect. No information has been given or withheld that results in the information supplied to the Finance Parties by any member of the Group being untrue or misleading in any
material respect. 
  

	22.13	Audited Financial Statements 

 Its most recent audited financial statements, which at the date of this agreement are the Original Financial Statements, (consolidated, if appropriate): 

 

	 	(a)	were prepared in accordance with accounting principles generally accepted in its jurisdiction of incorporation and consistently applied; 

 

	 	(b)	disclose all liabilities (contingent or otherwise) of which its directors were or might reasonably be expected to have been aware and all unrealised or anticipated
losses of such Obligor (or, as the case may be, any member of the Group); and 

  

	 	(c)	save as disclosed therein, give a true and fair view of the financial condition and operations of such Obligor (or, as the case may be, the Group) during the relevant
financial year. 

  

	22.14	Pari Passu Ranking 

 Its
payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally. 

  
 40 

	22.15	No Proceedings Pending or Threatened 

 No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a material adverse effect on
its business or financial condition have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries or involves a Managed Syndicate in the ordinary course of its insurance business. 

 

	22.16	Ranking 

 The Security has
or (when duly registered) will have first ranking priority and is not subject to any prior ranking or pari passu ranking Encumbrances other than any Permitted Encumbrances which have prior ranking or pari passu ranking. 

 

	22.17	Security 

 Subject to the
Legal Reservations, each Security Document to which it is a party validly creates each of the Encumbrances which is expressed by that Security Document and evidences each of the Encumbrances it is expressed to evidence. 

 

	22.18	Shares 

  

	 	(a)	The shares of any member of the Group which are subject to the Security are fully paid and not subject to any option to purchase or similar rights.

  

	 	(b)	The constitutional documents of companies whose shares are subject to the Security do not and could not restrict or inhibit any transfer of those shares on creation or
enforcement of the Security. 

  

	 	(c)	There are no agreements in force which provide for the issue or allotment of, or grant any person the right to call for the issue or allotment of, any share or loan
capital of any member of the Group (including any option or right of pre-emption or conversion). 

  

	22.19	Encumbrances 

 Save for
Permitted Encumbrances, no Encumbrance exists over all or any of the present or future revenues or assets of any member of the Group. 
  

	22.20	Ownership of the Chaucer Name 

 Each Chaucer Name is a wholly owned subsidiary of the Account Party and is duly authorised to underwrite business at Lloyd’s. 

 

	22.21	No Breach of Borrowing Restrictions 

 The utilisation of the Facility in full by the Account Party will not result in or cause a breach of any borrowing restriction which applies to any Obligor. 

 

	22.22	Repetition 

 The Repeating
Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on: 
  

	 	(a)	the date of each Utilisation Request; and 

  

	 	(b)	the Commencement Date of each Letter of Credit; and every six months after that date until the Expiry Date of that Letter of Credit. 

  
 41 

	23.	INFORMATION UNDERTAKINGS 

The undertakings in this clause 23 remain in force from the date of this agreement for so long as any amount is outstanding under the
Finance Documents or any Commitment is in force. 
  

	23.1	Financial Statements 

 The
Account Party shall supply to the Facility Agent in sufficient copies for all the Lenders: 
  

	 	(a)	as soon as the same become available, but in any event within 150 days after the end of each of its financial years: 

 

	 	(i)	its audited consolidated financial statements for that financial year; and 

 

	 	(ii)	the audited financial statements of each Obligor for that financial year, 

 in each case audited by an internationally recognised firm of independent auditors licensed to practice in its jurisdiction of incorporation; 

 

	 	(b)	as soon as the same become available, but in any event within 90 days after the end of each first half of each of its financial years, its unaudited consolidated
financial statements for that financial half year; and 

  

	 	(c)	as soon as the same become available, but in any event within 60 days after the end of each quarter of its financial years, its consolidated management accounts for
that quarter. 

  

	23.2	Budget 

  

	 	(a)	The Account Party shall supply to the Facility Agent in sufficient copies for all the Lenders, as soon as the same have been approved by its board of directors but in
any event no later than 30 days prior to the start of each of its financial years, an annual budget and/or annual consolidated Budget for that financial year. 

 

	 	(b)	The Account Party shall ensure that each budget: 

  

	 	(i)	is in a form reasonably acceptable to the Facility Agent and includes a projected consolidated profit and loss account (or equivalent income statement), balance sheet
and cashflow statement for the Group and projected financial covenant calculations; 

  

	 	(ii)	is prepared in accordance with the Accounting Principles and the accounting practices and financial reference periods applied to financial statements under clause 23.1
(Financial Statements), 

 and has been approved by the board of directors of the Account Party 

 

	23.3	Compliance Certificate 

  

	 	(a)	The Account Party shall supply to the Facility Agent, with each set of financial statements delivered pursuant to clauses 23.1(a), 23.1(b) or 23.1(c) (Financial
Statements), a Compliance Certificate: 

  

	 	(i)	setting out (in reasonable detail) computations as to compliance with clause 24 (Financial Conditions) as at the date as at which those financial statements were drawn
up; and 

  
 42 

	 	(ii)	listing all Material Companies and setting out (in reasonable detail) computations which determine those companies’ classification as Material Companies.

  

	 	(b)	Each Compliance Certificate shall be signed by two directors of the Account Party. 

 

	23.4	Annual Report for each Managed Syndicate 

 The Account Party shall, as soon as the same become available, but in any event within 90 days after the end of each year of account of each Managed Syndicate, deliver to the Facility Agent in sufficient
copies for all the Lenders, the annual report for that Managed Syndicate, audited by an internationally recognised firm of auditors licensed to practice in the jurisdiction of incorporation of the Managing Agent and on the list of auditors approved
by the Council of Lloyd’s from time to time. 
  

	23.5	Quarterly Information Pack 

The Account Party shall, as soon as the same become available, but in any event within 60 days after the end of each quarter of each year
of account of each Managed Syndicate, deliver to the Facility Agent an information pack which will include (but is not limited to) a profit and loss statement, balance sheet, cashflow statement, quarterly returns or its equivalent, settlement
statistics, a statement of current Forecast Losses, forecast underwriting results and a statement on the solvency deficit position (including calculations in reasonable detail) for each Managed Syndicate. 

 

	23.6	Business Plan and Realistic Disaster Scenario for each Managed Syndicate 

 The Account Party shall, as soon as the same becomes available, but in any event within five days of the date prescribed by the Council of Lloyd’s with respect to the preparation and despatch
thereof, deliver to the Facility Agent the annual business plan then prepared in respect of a Managed Syndicate (including details of the capital stack and reinsurance layers) and (if separate) the Realistic Disaster Scenario relating thereto.

  

	23.7	Reinsurance Resume for each Managed Syndicate 

 The Account Party shall, as soon as the same becomes available but in any event within 90 days of 1 January each year, deliver to the Facility Agent a copy of the reinsurance resume of each Managed
Syndicate as delivered by the Account Party to Lloyd’s from time to time in accordance with the Lloyd’s Syndicate Accounting Rules. 
  

	23.8	Information in respect of Third Party Syndicates 

 The Account Party shall, as soon as the same become available but in any event within 90 days after the end of each year of account of each Third Party Syndicate, deliver to the Facility Agent the annual
report of that Third Party Syndicate audited by an internationally recognised firm of auditors licensed to practise in the jurisdiction of incorporation of the Managing Agent and on the list of auditors approved by the Council of Lloyd’s from
time to time. 
  

	23.9	Requirements as to Financial Statements 

  

	 	(a)	Each set of financial statements delivered by the Account Party pursuant to clause 23.1 (Financial Statements) shall be certified by a director of the relevant company
as fairly representing its financial condition as at the date as at which those financial statements were drawn up. 

  

	 	(b)	 The Account Party shall procure that each set of financial statements of an Obligor delivered pursuant to clauses 23.1(a) and 23.1(b) (Financial
Statements) is prepared using accounting policies, practices, procedures and reference periods 

  
 43 

	 	
consistent with those applied in the preparation of the Original Financial Statements for that Obligor unless, in relation to any set of financial statements, it notifies the Facility Agent that
there has been a change in such accounting policies, practices, procedures or reference periods and its auditors (or, if appropriate, the auditors of the Obligor) deliver to the Facility Agent: 

 

	 	(i)	a description of any change necessary for those financial statements to reflect the accounting policies, practices, procedures and reference periods upon which that
Obligor’s Original Financial Statements were prepared; and 

  

	 	(ii)	sufficient information, in form and substance as may be reasonably required by the Facility Agent, to enable the Lenders to determine whether clause 24 (Financial
Conditions) has been complied with and make an accurate comparison between the financial position indicated in those financial statements and that Obligor’s Original Financial Statements. 

Any reference in this agreement to those financial statements shall be construed as a reference to those financial statements as adjusted
to reflect the basis upon which the Original Financial Statements were prepared. 
  

	23.10	Lloyd’s Syndicate Accounting Rules 

 The Account Party shall ensure that each annual report in respect of each Managed Syndicate delivered pursuant to clause 23.4 (Annual Report for each Managed Syndicate) is prepared in accordance with
Lloyd’s Syndicate Accounting Rules under accounting policies consistently applied. 
  

	23.11	Litigation and Regulatory Intervention 

 The Account Party shall notify the Facility Agent of any actual or (upon it becoming aware of the same) any threatened litigation or arbitration (whether as plaintiff or defendant and whether civil,
criminal or administrative) and/or any actual or threatened regulatory intervention by Lloyd’s and/or the Financial Services Authority in respect of the Group and/or a Managed Syndicate which are likely to be adversely determined and/or made
and which, if adversely determined and/or made, would have a material adverse effect on the business or financial condition of the Group and/or a Managed Syndicate (but excluding any litigation or arbitration involving a Managed Syndicate in the
ordinary course of its insurance business). 
  

	23.12	Inspection of Books and Records 

 If there are reasonable grounds to believe that an Event of Default has occurred and is continuing, each Obligor shall, on request of the Facility Agent and upon reasonable notice, provide the Facility
Agent and/or its advisers with access, during the normal business hours to and permit inspection of its books and records. 
  

	23.13	Information on FAL 

 The
Account Party shall provide the Facility Agent with a description and valuation of its FAL in the Compliance Certificate to be accompanied with the quarterly financial statements delivered in accordance with clause 23.1(c) (Financial Statements).

  

	23.14	Information: Miscellaneous 

The Account Party shall supply to the Facility Agent (in sufficient copies for all the Lenders, if the Facility Agent so requests):

  

	 	(a)	all documents dispatched by the Account Party to its shareholders (or any class of them) or its creditors generally at the same time as they are dispatched;

  
 44 

	 	(b)	all regulatory returns dispatched by the Account Party to Lloyd’s; 

  

	 	(c)	promptly, such information as the Security Agent may reasonably require about the Charged Property and compliance of the Obligors with the terms of any Security
Documents; and 

  

	 	(d)	promptly, such further information regarding the financial condition and business of any member of the Group, the Managed Syndicates and the Third Party Syndicates as
any Finance Party (through the Facility Agent) may reasonably request except (i) where the furnishing of such information is restricted or prohibited by applicable law or regulation or (ii) the furnishing of such information does not
comply with any requirement as to confidentiality which applies to such Obligor. 

  

	23.15	Notification of Default 

  

	 	(a)	Each Obligor shall notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence.

  

	 	(b)	Promptly upon a request by the Facility Agent, the Account Party shall supply to the Facility Agent a certificate signed by two of its directors or senior officers on
its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it). 

 

	23.16	“Know Your Customer” Checks 

  

	 	(a)	If: 

  

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

  

	 	(ii)	any change in the status of an Obligor or the composition of the shareholders of an Obligor after the date of this agreement; or 

 

	 	(iii)	a proposed assignment or transfer by a Lender of any of its rights and obligations under this agreement to a party that is not a Lender prior to such assignment or
transfer, 

 obliges the Facility Agent or any Lender (or, in the case of paragraph (iii) above, any
prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Facility
Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in
paragraph (iii) above, on behalf of any prospective new Lender) in order for the Facility Agent, such Lender or, in the case of the event described in paragraph (iii) above, any prospective new Lender to carry out and be satisfied it has
complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. 

 

	 	(b)	Each Lender shall promptly upon the request of the Facility Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by
the Facility Agent (for itself) in order for the Facility Agent to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents. 

  
 45 

	 	(c)	The Account Party shall, by giving not less than ten Business Days’ prior written notice to the Facility Agent, notify the Facility Agent (which shall promptly
notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Guarantor pursuant to clause 28 (Changes to the Obligors). 

 

	 	(d)	Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Additional Guarantor obliges the Facility Agent or any Lender to
comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Account Party shall promptly upon the request of the Facility Agent or any Lender
supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the
Facility Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the accession
of such Subsidiary to this agreement as an Additional Guarantor. 

  

	24.	FINANCIAL CONDITION 

  

	24.1	Financial Condition 

 The
Account Party shall ensure that: 
  

	 	(a)	the Financial Condition of the Group is such that: 

  

	 	(i)	Consolidated Tangible Net Worth shall not at any time be less than the aggregate of: 

 

	 	(A)	£220,000,000; 

  

	 	(B)	50 per cent. of the net proceeds of any share capital issued or raised by the Account Party after 30 September 2010; and 

 

	 	(C)	50 per cent. of the cumulative consolidated profit after tax of the Group since 30 September 2010 (for the avoidance of doubt, ignoring any financial years in
which such consolidated profit is a negative amount) (as detailed in the relevant audited consolidated financial statements of the Account Party and related Compliance Certificate most recently delivered pursuant to clause 23.3 (Compliance
Certificate)); 

  

	 	(ii)	Consolidated Net Borrowings shall not at any time exceed 35 per cent. of Consolidated Tangible Net Worth; and 

 

	 	(iii)	the Uncollateralised Outstandings shall not at any time exceed 25 per cent. of the total Funds at Lloyd’s of the Account Party (including Subordinated Funds
at Lloyd’s and FAL provided in accordance with this agreement); and 

  

	 	(b)	the Financial Condition of the Account Party is such that: 

  

	 	(i)	Forecast Losses for any one year of account for any Managed Syndicate, in respect of any year of account, shall not exceed 10 per cent. of the aggregate Syndicate
Allocated Capacities for those Managed Syndicates in respect of that single year of account; and 

  

	 	(ii)	the aggregate of the Member’s Share of the estimated net losses in respect of any of the scenarios contained in the Realistic Disaster Scenarios prepared in
relation to Syndicate 1084 of each Underwriting Member shall not exceed 20 per cent. of the aggregate Member’s Syndicate Premium Limit of such Underwriting Members in any one year of account. 

  
 46 

	24.2	Financial Definitions 

 In
clause 24.1 (Financial Condition) the following terms shall have the following meanings: 
 “Consolidated Net
Borrowings” means at any time the aggregate amount of all Financial Indebtedness of the Group (excluding any subordinated Financial Indebtedness to the extent considered Lower Tier 2 Capital and the Outstandings in respect of which the
Account Party has provided funds by way of cash collateral in accordance with and pursuant to clauses 11.2 (Mandatory Cash Collateralisation of Letters of Credit) and clause 11.3 (Voluntary Cash Collateralisation of Letters of Credit)) adjusted to
take account of the aggregate amount of unencumbered, freely available and transferable cash and cash equivalents held by any member of the Group (and so that no amount shall be included or excluded more than once). 

“Consolidated Tangible Net Worth” means, at any time the aggregate of the amounts paid up or credited as paid up on the
issued share capital of the Account Party (other than any redeemable shares) and the aggregate amount of the reserves of the Group including: 
  

	 	(a)	any amount credited to the share premium account; 

  

	 	(b)	any capital redemption reserve fund; 

  

	 	(c)	any balance standing to the credit of the consolidated profit and loss account of the Group; 

 

	 	(d)	any subordinated loan notes issued by a member of the Group to the extent they are considered Lower Tier 2 Capital, including the Subordinated Loan Notes; and

  

	 	(e)	any other subordinated Financial Indebtedness to the extent considered Lower Tier 2 Capital. 

but deducting: 
  

	 	(i)	any debit balance on the consolidated profit and loss account of the Group; 

 

	 	(ii)	(to the extent included) any amount shown in respect of goodwill (including goodwill arising only on consolidation) or other intangible assets of the Group and
interests of non Group members in Group subsidiaries; 

  

	 	(iii)	(to the extent included) any amount set aside for taxation, deferred taxation or bad debts; and 

 

	 	(iv)	(to the extent included) any amounts arising from an upward revaluation of assets (excluding Investments) made at any time after 31 December 2009,

 and so that no amount shall be included or excluded more than once. 

“Forecast Losses” means the mid-point projection of losses that it is projected will be incurred by the Managed
Syndicates in respect of a particular year of account in the Syndicate quarterly returns and other information of the Managed Syndicates to be delivered pursuant to clauses 23.4 (Annual Report for each Managed Syndicate) and 23.5 (Quarterly
Information Pack), from time to time. 

  
 47 

 “FSA” means the Financial Services Authority or any successor regulatory
body or other governmental authority in the United Kingdom exercising prudential supervision of insurance companies. 

“Investments” means all investments which are permitted syndicate investments as prescribed by Lloyd’s from time to
time. 
 “Lower Tier 2 Capital” has the meaning given to it from time to time by the FSA. 

“Member’s Share” means the Member’s Syndicate Premium Limit of an Underwriting Member divided by the Syndicate
Allocated Capacity of the Managed Syndicate on which the Lloyd’s Member writes business. 
 “Underwriting
Member” means any one of the Chaucer Names. 
  

	24.3	Breach of Consolidated Tangible Net Worth Covenant 

 If, at any time, any of the requirements in clause 24.1 (Financial Condition) are not satisfied, the Facility Agent may provide written notice to the Account Party requiring that the Account Party makes
no further dividends until such point at which the Facility Agent may provide written consent to the Account Party for any further issue of dividends (such consent not to be unreasonably withheld). On receipt of such written notice, the Account
Party shall agree to withhold making any further dividends until such point at which the Facility Agent may provide consent to the Account Party for any further issue of dividends (such consent not to be unreasonably withheld). 

 

	24.4	Financial Testing 

 The
financial covenants set out in clause 24.1 (Financial Condition) shall be complied with at all times but compliance with such financial covenants shall be verified by reference to each of the relevant financial statements and each relevant
Compliance Certificate delivered pursuant to clause 23.3 (Compliance Certificate). 
  

	24.5	Accounting Terms 

 All
accounting expressions which are not otherwise defined in this agreement shall be construed in accordance with generally accepted accounting principles in the Account Party’s jurisdiction of incorporation. 

 

	25.	GENERAL UNDERTAKINGS 

 The
undertakings in this clause 25 remain in force from the date of this agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. 

 

	25.1	Authorisations 

 Each
Obligor shall promptly: 
  

	 	(a)	obtain, comply with and do all that is necessary to maintain in full force and effect; and 

 

	 	(b)	supply certified copies to the Facility Agent of, 

 any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity,
enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document. 

  
 48 

	25.2	Compliance with Laws 

Each Obligor shall comply in all respects with all laws, by-laws and regulations (including, without limitation, under the Financial
Services and Markets Act 2000, the Lloyds’ Acts 1871 to 1982 and any conditions or requirements prescribed thereunder) to which it may be subject, if failure so to comply would reasonably be expected to have a Material Adverse Effect.

  

	25.3	Negative Pledge 

  

	 	(a)	No Obligor shall (and the Account Party shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets other than
a Permitted Encumbrance. 

  

	 	(b)	No Obligor shall (and the Account Party shall ensure that no other member of the Group will): 

 

	 	(i)	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other Group Company;

  

	 	(ii)	sell, transfer or otherwise dispose of any of its receivables on recourse terms; 

 

	 	(iii)	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

  

	 	(iv)	enter into any other preferential arrangement having a similar effect, 

 in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset, other than a Permitted
Encumbrance. 
  

	25.4	Disposals 

  

	 	(a)	No Obligor shall (and the Account Party shall ensure that no other member of the Group will), enter into a single transaction or a series of transactions (whether
related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset. 

  

	 	(b)	Paragraph (a) does not apply to any sale, lease, transfer or other disposal: 

 

	 	(i)	of any investments made in the ordinary course of business of the disposing entity; 

 

	 	(ii)	of obsolete assets for cash; 

  

	 	(iii)	made with the prior consent of the Majority Lenders; or 

  

	 	(iv)	of tangible assets where the book value (when aggregated with the book value of all other tangible assets sold, leased, transferred or otherwise disused of in the same
financial year) does not exceed £500,000 (or its equivalent in another currency or currencies). 

  
 49 

	25.5	Merger 

 No Obligor shall
(and the Account Party shall ensure that no other member of the Group will) enter into any amalgamation, demerger, merger or corporate reconstruction without the prior consent of the Majority Lenders (which consent, in the case of a merger or
amalgamation between two members of the Group which are not Obligors, shall not be unreasonably withheld or delayed). 
  

	25.6	Change of Business 

 The
Account Party shall procure that no substantial change is made to the general nature of the business of the Account Party or the Group from that carried on at the date of this agreement. 

 

	25.7	Financial Indebtedness 

No Obligor shall (and the Account Party shall ensure that no other member of the Group will) incur or allow to remain outstanding any
Financial Indebtedness other than Permitted Financial Indebtedness. 
  

	25.8	Pari Passu Ranking 

 Each
Obligor shall ensure that at all times the claims of a Finance Party against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are
mandatorily preferred by laws of general application to companies. 
  

	25.9	Insurance 

 Each Obligor
shall (and the Account Party shall ensure that each other member of the Group will) maintain insurance (other than and in addition to any reinsurance in respect of such members’ underwriting business) on and in relation to its business and
assets against those risks and to such extent as is usual for companies carrying on the same or substantially similar business with any reputable underwriters or reputable insurance company. 

 

	25.10	Further Assurance 

 Each
Obligor shall take all steps reasonably requested by the Facility Agent to ensure the creation, perfection and maintenance at all times of the Security intended to be constituted by the Security Documents. 

 

	25.11	Ownership of the Chaucer Names 

 The Account Party shall ensure that each Chaucer Name remains its wholly owned Subsidiary. 
  

	25.12	Application of Funds at Lloyd’s and Cash Calls 

  

	 	(a)	The Account Party shall use all reasonable endeavours to ensure that the Subordinated Funds at Lloyd’s of the Account Party are applied to the fullest extent
possible before any payment is requested under a Letter of Credit. 

  

	 	(b)	The Account Party shall ensure that the Managing Agent will make a request for funds of a Chaucer Name in its capacity as a member of each Managed Syndicate before
applying the Funds at Lloyd’s of that Chaucer Name in the payment of any claims, expenses or outgoings made or incurred in connection with its underwriting business. 

  
 50 

	25.13	Demands for Payment of FAL 

The Account Party shall upon service on it by Lloyd’s (or the trustee for the time being of such Funds at Lloyd’s) of a written
demand for the payment of a sum on account of its Funds at Lloyd’s immediately inform the Facility Agent of such demand. 
  

	25.14	Investment Strategy 

 The
Account Party shall ensure that there is no material change to the investment strategy pursued by the Group as at the date of this agreement without the prior written consent of the Majority Lenders. 

 

	25.15	Business plan 

 The
Account Party shall ensure that there is no material change to the business plan submitted in accordance with clause 23.6 (Business Plan and Realistic Disaster Scenario for each Managed Syndicate) without the prior written consent of the Majority
Lenders. 
  

	25.16	Prohibition on underwriting by Obligors 

 The Account Party will procure that the only members of the Group to underwrite business at Lloyd’s will be the Chaucer Names. 

 

	25.17	Reinsurance FAL 

  

	 	(a)	The Account Party will not amend its FAL arrangements, including the addition of any Reinsurance FAL, without first obtaining the written consent of the Majority
Lenders, such consent not to be unreasonably withheld or delayed. 

  

	 	(b)	If the Account Party obtains any Reinsurance FAL for the 2012 year of account (“2012 Reinsurance FAL”), the Account Party shall use its best endeavours
to: 

  

	 	(i)	obtain and deliver to the Facility Agent, a replacement Letter of Comfort executed by Lloyd’s incorporating the 2012 Reinsurance FAL as additional Subordinated
Funds at Lloyd’s for the 2012 year of account; and 

  

	 	(ii)	procure an amendment to the FAL Providers Deed to provide for the accession of the provider or providers of the 2012 Reinsurance FAL and to amend clause 2.5 of the FAL
Providers Deed so that the order of priority includes the application of 2012 Reinsurance FAL prior to the FAL provided under this agreement. 

  

	25.18	Ownership of Obligors 

The Account Party shall ensure that each other Obligor is and remains a direct or indirect Subsidiary of the Account Party. 

 

	25.19	No redemption of the Subordinated Loan Notes 

 The Account Party shall not redeem the Subordinated Loan Notes (in full or in part) during the term of the Facility. 
  

	25.20	Centre of Main Interests 

No Obligor shall, and each Obligor will procure that none of its Subsidiaries will, do anything to change the location of its centre of
main interests, for the purposes of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings, where that change would be reasonably likely to be materially adverse to the interests of the Finance Parties. 

  
 51 

	25.21	Condition Subsequent 

 The
Account Party shall procure that a list of the Encumbrances granted by the Account Party in favour of Lloyd’s which have not been discharged are delivered to the Facility Agent within 30 days of the date of this agreement. 

 

	26.	EVENTS OF DEFAULT 

 Each
of the events or circumstances set out in clause 26 is an Event of Default (save for clause 26.23 (Acceleration and Cancellation)). 
  

	26.1	Non-Payment 

 An Obligor
does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless: 
  

	 	(a)	its failure to pay is caused by: 

  

	 	(i)	administrative or technical error; or 

  

	 	(ii)	a Disruption Event; and 

  

	 	(b)	payment is made within five Business Days of its due date. 

  

	26.2	Financial Condition and Other Specific Covenants 

  

	 	(a)	At any time any requirement of clause 24.1 (Financial Condition) is not satisfied. 

 

	 	(b)	An Obligor fails duly to perform or comply with any of the obligations expressed to be assumed by it in clause 23 (Information Undertakings), clause 24.3 (Breach of
Consolidated Tangible Net Worth Covenant), clause 25.3 (Negative Pledge), clause 25.4 (Disposals), clause 25.5 (Mergers), clause 25.7 (Financial Indebtedness), clause 25.11 (Ownership of the Chaucer Names), clause 25.12(a) (Application of Funds at
Lloyd’s and Cash Calls) and clause 25.13 (Demands for Payment of FAL). 

  

	26.3	Other Obligations 

  

	 	(a)	An Obligor does not comply with any provision of the Finance Documents (other than those referred to in clause 26.1 (Non-Payment) and clause 26.2 (Financial Condition
and Other Specific Covenants)). 

  

	 	(b)	No Event of Default under paragraph (a) will occur if the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier of:

  

	 	(i)	the Facility Agent giving notice to the Account Party; and 

  

	 	(ii)	an Obligor becoming aware of the failure to comply. 

  

	26.4	Misrepresentation 

 Any
representation or statement made or deemed to be made by an Obligor in the Finance Documents or any notice or other document, certificate or statement delivered by or on behalf of any Obligor under or in connection with any Finance Document is or
proves to have been incorrect or misleading in any material respect when made or deemed to be made. 

  
 52 

	26.5	Cross Default 

  

	 	(a)	Any Financial Indebtedness of any member of the Group is not paid when due nor within any originally applicable grace period. 

 

	 	(b)	Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of
default (however described). 

  

	 	(c)	Any commitment for any Financial Indebtedness of any member of the Group is cancelled or suspended by a creditor of any member of the Group as a result of an event of
default (however described). 

  

	 	(d)	Any creditor of any member of the Group becomes entitled to declare any Financial Indebtedness of any member of the Group due and payable prior to its specified
maturity as a result of an event of default (however described). 

  

	 	(e)	No Event of Default will occur under this clause 26.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within
paragraphs (a) to (d) (inclusive) above is less than £1,000,000 (or its equivalent in any other currency or currencies). 

  

	26.6	Failure to Comply with Final Judgment 

 Any Obligor fails to comply with or pay any sum due from it under any final judgement or any final order made or given by any court of competent jurisdiction within ten Business Days of any such judgement
or order being made or given. 
  

	26.7	Insolvency 

  

	 	(a)	An Obligor is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated
financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness. 

  

	 	(b)	The value of the assets of any Obligor is less than its liabilities (taking into account contingent and prospective liabilities). 

 

	 	(c)	A moratorium is declared in respect of any indebtedness of any Obligor. 

  

	26.8	Insolvency Proceedings 

  

	 	(a)	Any corporate action, legal proceedings or other procedure or step is taken in relation to: 

 

	 	(i)	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of
arrangement or otherwise) of any Obligor; 

  

	 	(ii)	a composition, compromise, assignment or arrangement with any creditor of any Obligor; 

 

	 	(iii)	the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any Obligor or any of its
assets; or 

  

	 	(iv)	enforcement of any Security over any assets of any Obligor provided such enforcement is not stayed within 15 Business Days or any event occurs which under the laws of
any jurisdiction has a similar or analogous effect. 

  
 53 

	 	(b)	Paragraph (a)(i) to (iii) shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 30 days of
commencement or, if earlier, the date on which it is advertised. 

  

	26.9	Creditors’ Process 

Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of an Obligor and is not discharged within
15 Business Days. 
  

	26.10	Similar Events Elsewhere 

There occurs in relation to any Obligor or any of its assets in any country or territory in which it is incorporated or carries on
business or to the jurisdiction of whose courts it or any of its assets is subject any event which appears to the Facility Agent to correspond in that country or territory with any of those mentioned in clauses 26.7 (Insolvency) to 26.9
(Creditors’ Process) (inclusive). 
  

	26.11	Unlawfulness 

  

	 	(a)	It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents. 

 

	 	(b)	Any Finance Document or any obligation of an Obligor thereunder are not or ceases to be in full force and effect or is alleged by an Obligor to be ineffective for any
reason. 

  

	26.12	Repudiation 

 An Obligor
repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 
  

	26.13	Cessation of Business 

Any member of the Group suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of the
business which it carries on at the date of this agreement or enters into any unrelated business. 
  

	26.14	Litigation 

 Any
litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced against any member of the Group or its assets which, in the opinion of the Majority Lenders (acting reasonably), has, or
is reasonably likely to have, a Material Adverse Effect. 
  

	26.15	Solvency Test 

 A Chaucer
Name fails as a Member to maintain the members’ capital resources requirement calculated by Lloyd’s and notified to it in accordance with the General Prudential Sourcebook and INSPRU. 

 

	26.16	Ownership of the Chaucer Names 

 Any Chaucer Name ceases to be a wholly owned subsidiary of the Account Party. 
  

	26.17	Financial Services and Markets Act 2000 and Lloyd’s Acts 1871-1982 

 

	 	(a)	 A failure by Lloyd’s (or, where appropriate, the members of Lloyd’s taken together) to satisfy the solvency requirements to which it is or
they are subject by virtue of Part XIX of the Financial Services and Markets Act 2000, the Lloyd’s Acts 1871 - 1982 

  
 54 

	 	
(and any subordinated legislation made thereto), the FSA Handbook or any statutory provision enacted after the date of this agreement and a failure to comply with any binding requirement to
rectify the position within the time period permitted for such rectification; or 

  

	 	(b)	the authorisation or permission granted to Lloyd’s to carry on a regulated activity pursuant to the Financial Markets and Services Act 2000 is withdrawn, removed,
revoked or cancelled by the Financial Services Authority, 

 which, in either such case, in the reasonable opinion
of the Majority Lenders, is reasonably likely materially and adversely to affect the ability of the Account Party to perform or comply with its material obligations under the Finance Documents. 

 

	26.18	Modification of Lloyd’s Acts, Byelaws or Trusts 

 Any modification, repeal, amendment, replacement or revocation of Lloyd’s Acts 1871 to 1982, any byelaw or any deed or agreement required by Lloyd’s to be executed or entered into by any person
in connection with insurance business at Lloyd’s (whether carried on by such person or otherwise) or any trust created thereby is made or proposed which, in the reasonable opinion of the Majority Lenders, is reasonably likely materially and
adversely to affect the ability of the Account Party to perform or comply with its material obligations under the Finance Documents. 
  

	26.19	Lloyd’s Market Reorganisation Order 

 The making of a Lloyd’s Market Reorganisation Order provided that: 
  

	 	(a)	the Account Party is an affected market participant as defined in the Insurers (Reorganisation and Winding Up) (Lloyd’s) Regulations 2005; and

  

	 	(b)	the making of the order in the reasonable opinion of the Facility Agent (acting on the instructions of the Majority Lenders) is reasonably likely materially and
adversely to affect the ability of the Account Party to perform or comply with its material obligations under the Finance Documents. 

  

	26.20	FAL Providers Deed 

  

	 	(a)	Any party to the FAL Providers Deed (other than the Facility Agent) does not comply with any provision of the FAL Providers Deed. 

 

	 	(b)	No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier of:

  

	 	(i)	the Facility Agent giving notice to the Account Party; and 

  

	 	(ii)	an Obligor becoming aware of the failure to comply. 

  

	 	(c)	Any representation or statement made or deemed to be made by a party in the FAL Providers Deed (other than the Facility Agent) or any notice or other document,
certificate or statement delivered by or on behalf of any such party under or in connection with the FAL Providers Deed is or proves to have been incorrect or misleading in any material respect when made or deemed to be made.

  

	 	(d)	The FAL Providers Deed or any obligation of a party (other than the Facility Agent) thereunder is not or ceases to be in full force and effect or is alleged by any such
party to be ineffective for any reason. 

  
 55 

	26.21	Cash Collateral 

 The
Account Party fails duly to perform or comply with its obligations to pay Cash Collateral into the Specified Account in the amounts and at the times required under clause 11.2 (Mandatory Cash Collateralisation of Letters of Credit). 

 

	26.22	Material Adverse Change 

Any event or circumstance occurs which the Majority Lenders reasonably believe has or is reasonably likely to have a Material Adverse
Effect. 
  

	26.23	Acceleration and Cancellation 

 On and at any time after the occurrence of an Event of Default which is continuing, the Facility Agent may, and shall if so directed by all the Lenders: 

 

	 	(a)	by notice to the Account Party: 

  

	 	(i)	require the Account Party to use best endeavours to procure that the liabilities of the Lenders under each Letter of Credit are promptly reduced to zero; and/or

  

	 	(ii)	require the Account Party to procure that Cash Collateral is provided for each Letter of Credit in an amount specified by the Facility Agent (acting on the instructions
of the Majority Lenders) (whereupon the Account Party shall do so); and/or 

  

	 	(iii)	declare that the whole of the Available Facility shall be cancelled, whereupon the same shall be cancelled and the Available Commitment of each Lender shall be reduced
to zero; 

  

	 	(b)	require the Account Party to use best endeavours to procure that: 

  

	 	(i)	all Letters of Credit are cancelled and returned by Lloyd’s to the Facility Agent; and 

 

	 	(ii)	in relation to any Letters of Credit which are cancelled, Lloyd’s deliver written confirmation to the Facility Agent (on behalf of the Lenders) that:

  

	 	(A)	Lloyd’s has not retained any copies of any Letter of Credit; and 

  

	 	(B)	Lloyd’s no longer places any reliance on any Letter of Credit, 

 in form and substance reasonably satisfactory to the Facility Agent; 
  

	 	(c)	exercise (or direct the Security Agent to exercise) any or all of its rights, remedies, powers or discretions under any of the Finance Documents; and/or

  

	 	(d)	give a Notice of Termination to Lloyd’s in respect of any Letter of Credit. 

 

	27.	CHANGES TO THE LENDERS 

  

	27.1	Assignments and Transfers by the Lenders 

 Subject to this clause 27, a Lender (the “Existing Lender”) may: 
  

	 	(a)	assign any of its rights; or 

  
 56 

	 	(b)	transfer by novation any of its rights and obligations, to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or
established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the “New Lender”) provided that such bank, financial institution, trust, fund or other entity is an Approved Credit
Institution. 

  

	27.2	Conditions of Assignment, Transfer or Accession 

  

	 	(a)	An assignment will only be effective on: 

  

	 	(i)	receipt by the Facility Agent (whether in the Assignment Agreement or otherwise) of written confirmation from the New Lender (in form and substance satisfactory to the
Facility Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender; and 

 

	 	(ii)	performance by the Facility Agent (to the extent it thinks fit) of all necessary “know your customer” or other similar checks under all applicable laws and
regulations in relation to such assignment to a New Lender, the completion of which the Facility Agent shall promptly notify to the Existing Lender and the New Lender. 

 

	 	(b)	A transfer or accession will only be effective if the procedure set out in clause 27.5 (Procedure for Transfer or Accession) is complied with. 

 

	 	(c)	If: 

  

	 	(i)	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and 

 

	 	(ii)	as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender
acting through its new Facility Office under clause 13 (Tax Gross-Up and Indemnities) or clause 14 (Increased Costs), 

 then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those clauses to the same extent as the Existing Lender or Lender acting through its previous
Facility Office would have been if the assignment, transfer or change had not occurred. 
  

	 	(d)	Each New Lender, by executing the relevant Transfer Certificate, Assignment Agreement or Accession Letter, confirms, for the avoidance of doubt, that the Facility Agent
has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this agreement on or prior to the date on which the transfer or assignment or accession
becomes effective in accordance with this agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender. 

 

	27.3	Assignment, Transfer or Accession Fee 

 The New Lender shall, on the date upon which an assignment, transfer or accession takes effect, pay to the Facility Agent (for its own account) a fee of £3,000. 

  
 57 

	27.4	Limitation of Responsibility of Existing Lenders 

  

	 	(a)	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

  

	 	(i)	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents; 

 

	 	(ii)	the financial condition of any Obligor; 

  

	 	(iii)	the performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or 

 

	 	(iv)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document, 

and any representations or warranties implied by law are excluded. 

 

	 	(b)	Each New Lender confirms to the Existing Lender and the other Finance Parties that it: 

 

	 	(i)	has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities
in connection with its participation in this agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and 

 

	 	(ii)	will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under
the Finance Documents or any Commitment is in force. 

  

	 	(c)	Nothing in any Finance Document obliges an Existing Lender to: 

  

	 	(i)	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this clause 27; or 

 

	 	(ii)	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or
otherwise. 

  

	27.5	Procedure for Transfer or Accession 

  

	 	(a)	Subject to the conditions set out in clause 27.2 (Conditions of Assignment, Transfer or Accession) a transfer or accession is effected in accordance with paragraph
(c) below when the Facility Agent executes an otherwise duly completed (i) Transfer Certificate delivered to it by the Existing Lender and the New Lender or (ii) Accession Letter duly completed by the New Lender. The Facility Agent
shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate or Accession Letter appearing on its face to comply with the terms of this agreement and delivered in
accordance with the terms of this agreement, execute that Transfer Certificate or Accession Letter. 

  

	 	(b)	The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender or an Accession Letter delivered to
it by a New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender. 

 

	 	(c)	On the Transfer Date: 

  

	 	(i)	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the
Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the “Discharged
Rights and Obligations”); 

  
 58 

	 	(ii)	each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights
and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender; 

  

	 	(iii)	the Facility Agent, the Arrangers, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have
acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Facility Agent, the Arrangers and the Existing Lender shall each be
released from further obligations to each other under the Finance Documents; and 

  

	 	(iv)	the New Lender shall become a Party as a “Lender”. 

  

	 	(d)	On the Accession Date: 

  

	 	(i)	each of the New Lender and the other Parties shall assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an
Original Lender with the rights and obligations acquired as a result of the Accession Letter; and 

  

	 	(ii)	the New Lender shall become a Party to this agreement as a “Lender”. 

 

	27.6	Procedure for Assignment 

  

	 	(a)	Subject to the conditions set out in clause 27.2 (Conditions of Assignment, Transfer or Accession) an assignment may be effected in accordance with paragraph
(c) below when the Facility Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender. The Facility Agent shall, subject to paragraph (b) below, as soon as reasonably
practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this agreement and delivered in accordance with the terms of this agreement, execute that Assignment Agreement.

  

	 	(b)	The Facility Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has
complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assignment to such New Lender. 

 

	 	(c)	On the Transfer Date: 

  

	 	(i)	the Existing Lender will assign absolutely to the New Lender the rights under the Finance Documents expressed to be the subject of the assignment in the Assignment
Agreement; 

  

	 	(ii)	the Existing Lender will be released by each Obligor and the other Finance Parties from the obligations owed by it (the “Relevant Obligations”) and
expressed to be the subject of the release in the Assignment Agreement; and 

  

	 	(iii)	the New Lender shall become a Party as a “Lender” and will be bound by obligations equivalent to the Relevant Obligations. 

  
 59 

	 	(d)	Lenders may utilise procedures other than those set out in this clause 27.6 to assign their rights under the Finance Documents (but not, without the consent of the
relevant Obligor or unless in accordance with clause 27.5 (Procedure for Transfer), to obtain a release by that Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender)
provided that they comply with the conditions set out in clause 27.2 (Conditions of Assignment, Transfer or Accession). 

  

	27.7	Copy of Transfer Certificate or Assignment Agreement to Account Party 

 The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Account Party a copy of that Transfer Certificate or
Assignment Agreement. 
  

	27.8	Security over Lenders’ rights 

 In addition to the other rights provided to Lenders under this clause 27, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create
Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation: 

 

	 	(a)	any charge, assignment or other Security to secure obligations to a federal reserve or central bank or to a government authority, department or agency (including,
without limitation, HM Treasury); and 

  

	 	(b)	in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations
owed, or securities issued, by that Lender as security for those obligations or securities, 

 except that no such
charge, assignment or Security shall: 
  

	 	(i)	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as
a party to any of the Finance Documents; or 

  

	 	(ii)	require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to
the relevant Lender under the Finance Documents. 

  

	28.	CHANGES TO THE OBLIGORS 

  

	28.1	Assignments and Transfer by Obligors 

 No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents. 
  

	28.2	Additional Guarantors 

  

	 	(a)	Subject to compliance with the provisions of clauses 23.16(c) and (d) (“Know Your Customer” Checks), the Account Party may request that any of its wholly
owned Subsidiaries become an Additional Guarantor. 

  

	 	(b)	The Account Party shall procure that any other member of the Group which is a Material Company shall, as soon as possible after becoming a Material Company, become an
Additional Guarantor. 

  
 60 

	 	(c)	A Subsidiary shall become an Additional Guarantor if: 

  

	 	(i)	all the Lenders and the Overdraft Provider approve the addition of that Subsidiary (and each Lender hereby approves each Material Company); 

 

	 	(ii)	the Account Party delivers to the Security Agent a duly completed and executed Accession Letter; and 

 

	 	(iii)	the Security Agent has received all of the documents and other evidence listed in part 2 of schedule 2 (Conditions Precedent) in relation to that Additional Guarantor,
each in form and substance satisfactory to the Security Agent. 

  

	 	(d)	The Security Agent shall notify the Account Party and all the Guaranteed Finance Parties promptly upon being satisfied that it has received (in form and substance
satisfactory to it) all the documents and other evidence listed in part 2 of schedule 2 (Conditions Precedent). 

  

	28.3	Repetition of Representations 

 Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the Repeating Representations are true and correct in relation to it as at the date of delivery as if made by
reference to the facts and circumstances then existing. 
  

	28.4	Resignation of a Guarantor 

  

	 	(a)	The Account Party may request that a Guarantor (other than the Account Party) ceases to be a Guarantor by delivering to the Security Agent a Resignation Letter.

  

	 	(b)	The Security Agent shall accept a Resignation Letter and notify the Account Party and the Facility Agent, the Lenders and the Overdraft Provider of its acceptance if:

  

	 	(i)	no Default is continuing or would result from the acceptance of the Resignation Letter (and the Account Party has confirmed this is the case); AND

  

	 	(ii)	all the Lenders and the Overdraft Provider have consented to the Account Party’s request. 

 

	29.	ROLE OF THE FACILITY AGENT AND THE ARRANGERS 

  

	29.1	Appointment of the Facility Agent 

  

	 	(a)	Each of the Finance Parties appoints the Facility Agent to act as its facility agent under and in connection with the Finance Documents. 

 

	 	(b)	Each of the Finance Parties authorises the Facility Agent to exercise the rights, powers, authorities and discretions specifically given to the Facility Agent under or
in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions. 

  

	29.2	Duties of the Facility Agent 

  

	 	(a)	Subject to paragraph (b) below, the Facility Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Facility
Agent for that Party by any other Party. 

  

	 	(b)	Without prejudice to clause 27.7 (Copy of Transfer Certificate or Assignment Agreement to Account Party), paragraph (a) above shall not apply to any Transfer
Certificate or to any Assignment Agreement. 

  
 61 

	 	(c)	Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any
document it forwards to another Party. 

  

	 	(d)	If the Facility Agent receives notice from a Party referring to this agreement, describing a Default and stating that the circumstance described is a Default, it shall
promptly notify the Finance Parties. 

  

	 	(e)	If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Facility Agent or
the Arrangers or the Security Agent) under this agreement it shall promptly notify the other Finance Parties. 

  

	 	(f)	The Facility Agent’s duties under the Finance Documents are solely mechanical and administrative in nature. 

 

	29.3	Role of the Arrangers 

Except as specifically provided in the Finance Documents, the Arrangers has no obligations of any kind to any other Party under or in
connection with any Finance Document. 
  

	29.4	No Fiduciary Duties 

  

	 	(a)	Nothing in this agreement constitutes the Facility Agent or the Arrangers as a trustee or fiduciary of any other person. 

 

	 	(b)	None of the Facility Agent nor the Arrangers or the Security Agent shall be bound to account to any Lender for any sum or the profit element of any sum received by it
for its own account. 

  

	29.5	Business with the Group 

The Facility Agent and the Arrangers may accept deposits from, lend money to and generally engage in any kind of banking or other business
with any member of the Group. 
  

	29.6	Rights and Discretions of the Facility Agent 

  

	 	(a)	The Facility Agent may rely on: 

  

	 	(i)	any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and 

 

	 	(ii)	any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or
within his power to verify. 

  

	 	(b)	The Facility Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that: 

 

	 	(i)	no Default has occurred (unless it has actual knowledge of a Default arising under clause 26.1 (Non-Payment)); 

 

	 	(ii)	any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised; and 

 

	 	(iii)	any notice or request made by the Account Party (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors.

  
 62 

	 	(c)	The Facility Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts. 

 

	 	(d)	The Facility Agent may act in relation to the Finance Documents through its personnel and agents. 

 

	 	(e)	The Facility Agent may disclose to any other Party any information it reasonably believes it has received as agent under this agreement. 

 

	 	(f)	Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility Agent nor the Arrangers is obliged to do or omit to do anything if it
would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality. 

  

	29.7	Majority Lenders’ Instructions 

  

	 	(a)	Unless a contrary indication appears in a Finance Document, the Facility Agent shall: 

 

	 	(i)	exercise any right, power, authority or discretion vested in it as Facility Agent in accordance with any instructions given to it by the Majority Lenders (or, if so
instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Facility Agent); and 

  

	 	(ii)	not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders.

  

	 	(b)	Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties other than the
Security Agent. 

  

	 	(c)	The Facility Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such
security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions. 

  

	 	(d)	In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the Facility Agent may act (or refrain from taking action) as it considers
to be in the best interest of the Lenders. 

  

	 	(e)	The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating
to any Finance Document. 

  

	29.8	Responsibility for Documentation 

 Neither the Facility Agent nor the Arrangers: 
  

	 	(a)	is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Facility Agent, the Arrangers, an Obligor or
any other person given in or in connection with any Finance Document or the transactions contemplated by the Finance Documents; or 

  

	 	(b)	is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or Security or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance Document or the Security; or 

  
 63 

	 	(c)	is responsible for any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be
regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise. 

  

	29.9	Exclusion of Liability 

  

	 	(a)	Without limiting paragraph (b) below, and without prejudice to the provisions of clause 33.10(e) (Disruption to Payment Systems etc.) the Facility Agent will not
be liable (including, without limitation, for negligence or any other category of liability whatsoever) for any action taken by it under or in connection with any Finance Document or the Security, unless directly caused by its gross negligence or
wilful misconduct. 

  

	 	(b)	No Party (other than the Facility Agent) may take any proceedings against any officer, employee or agent of the Facility Agent in respect of any claim it might have
against the Facility Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Facility Agent may rely on this clause subject to clause 1.3
(Third Party Rights) and the provisions of the Third Parties Act. 

  

	 	(c)	The Facility Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid
by the Facility Agent if the Facility Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Facility Agent for that
purpose. 

  

	 	(d)	Nothing in this agreement shall oblige the Facility Agent or the Arrangers to carry out any “know your customer” or other checks in relation to any person on
behalf of any Lender and each Lender confirms to the Facility Agent and the Arrangers that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the
Facility Agent or the Arrangers. 

  

	29.10	Lenders’ Indemnity to the Facility Agent 

 Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero)
indemnify the Facility Agent, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Facility Agent (otherwise than by
reason of the Facility Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to clause 33.10 (Disruption to Payment Systems etc.) notwithstanding the Facility Agent’s negligence, gross
negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent) in acting as Facility Agent under the Finance Documents (unless the Facility Agent has been reimbursed by an Obligor
pursuant to a Finance Document). 
  

	29.11	Resignation of the Facility Agent 

  

	 	(a)	The Facility Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor by giving notice to the other Finance
Parties and the Account Party. 

  

	 	(b)	Alternatively the Facility Agent may resign by giving 30 days’ notice to the other Finance Parties and the Account Party, in which case the Majority Lenders (after
consultation with the Account Party) may appoint a successor Facility Agent. In addition, the Majority Lenders (after consultation with the Account Party) may require an Impaired Agent to resign after any notice period and (after consultation with
the Account Party) may appoint a successor Facility Agent. 

  
 64 

	 	(c)	If the Majority Lenders have not appointed a successor Facility Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given,
the retiring Facility Agent (after consultation with the Account Party) may appoint a successor Facility Agent (acting through an office in the United Kingdom). 

 

	 	(d)	The retiring Facility Agent shall, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the
successor Facility Agent may reasonably request for the purposes of performing its functions as Facility Agent under the Finance Documents. 

  

	 	(e)	The Facility Agent’s resignation notice shall only take effect upon the appointment of a successor. 

 

	 	(f)	Upon the appointment of a successor, the retiring Facility Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain
entitled to the benefit of this clause 29. Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. 

 

	 	(g)	After consultation with the Account Party, the Majority Lenders may, by notice to the Facility Agent, require it to resign in accordance with paragraph (b) above.
In this event, the Facility Agent shall resign in accordance with paragraph (b) above. 

  

	29.12	Confidentiality 

  

	 	(a)	In acting as agent for the Finance Parties, the Facility Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from
any other of its divisions or departments. 

  

	 	(b)	If information is received by another division or department of the Facility Agent, it may be treated as confidential to that division or department and the Facility
Agent shall not be deemed to have notice of it. 

  

	 	(c)	Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility Agent nor the Arrangers are obliged to disclose to any other person:

  

	 	(i)	any confidential information; or 

  

	 	(ii)	any other information 

 if the
disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty. 
  

	29.13	Relationship with the Lenders 

  

	 	(a)	The Facility Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Facility Agent’s principal office as
notified to the Finance Parties from time to time) as the Lender acting through its Facility Office: 

  

	 	(i)	entitled to or liable for any payment due under any Finance Document on that day; and 

  
 65 

	 	(ii)	entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on
that day, 

 unless it has received not less than five Business Days’ prior notice from that Lender to the
contrary in accordance with the terms of this agreement. 
  

	 	(b)	Each Lender shall supply the Facility Agent with any information that the Security Agent may reasonably specify (through the Facility Agent) as being necessary or
desirable to enable the Security Agent to perform its functions as Security Agent. Each Lender shall deal with the Security Agent exclusively through the Facility Agent and shall not deal directly with the Security Agent. 

 

	 	(c)	Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched
to that Lender under the Finance Documents. Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under clause 36.6 (Electronic communication)) electronic mail address
and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a
substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of clause 36.2 (Addresses) and clause 36.6(a)(iii) (Electronic communication) and the Facility Agent shall be entitled to treat such
person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender. 

  

	29.14	Credit Appraisal by the Lenders 

 Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Facility Agent and the Arrangers
that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to: 

 

	 	(a)	the financial condition, status and nature of each member of the Group; 

  

	 	(b)	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and the Security and any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any Finance Document or the Security; 

  

	 	(c)	whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance
Document, the Security, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

  

	 	(d)	the adequacy, accuracy and/or completeness of any other information provided by the Facility Agent, any Party or by any other person under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

  

	 	(e)	the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any of the Security or the existence of any
Encumbrance affecting the Charged Property. 

  
 66 

	29.15	Deduction from Amounts Payable by the Facility Agent 

 If any Party owes an amount to the Facility Agent under the Finance Documents the Facility Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that
Party which the Facility Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as
having received any amount so deducted. 
  

	30.	ROLE OF THE SECURITY AGENT 

  

	30.1	Appointment of the Security Agent 

  

	 	(a)	Each of the Guaranteed Finance Parties appoints the Security Agent to act as its security agent under and in connection with the Guaranteed Documents.

  

	 	(b)	Each of the Guaranteed Finance Parties authorises the Security Agent to exercise the rights, powers, authorities and discretions specifically given to the Security
Agent under or in connection with the Guaranteed Documents together with any other incidental rights, powers, authorities and discretions. 

  

	30.2	Trust 

  

	 	(a)	The Security Agent declares that it shall hold the Security on trust for the Secured Parties on the terms contained in this agreement. 

 

	 	(b)	Each of the Parties agrees that the Security Agent shall have only those duties, obligations and responsibilities expressly specified in this agreement or in the
Security Documents to which the Security Agent is expressed to be a party (and no others shall be implied). 

  

	30.3	No Independent Power 

 The
Secured Parties shall not have any independent power to enforce, or have recourse to, any of the Security or to exercise any rights or powers arising under the Security Documents (other than the Facilities Agreement) except through the Security
Agent. 
  

	30.4	Instructions to Security Agent and Exercise of Discretion 

  

	 	(a)	Subject to paragraphs (d) and (e) below, the Security Agent shall act in accordance with any instructions given to it by the Majority Lenders or, if so
instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Security Agent and shall be entitled to assume that (i) any instructions received by it from the Facility Agent, the Lenders
or a group of Lenders are duly given in accordance with the terms of the relevant Finance Documents and (ii) unless it has received actual notice of revocation, that those instructions or directions have not been revoked.

  

	 	(b)	The Security Agent shall be entitled to request instructions, or clarification of any direction, from the Majority Lenders as to whether, and in what manner, it should
exercise or refrain from exercising any rights, powers, authorities and discretions and the Security Agent may refrain from acting unless and until those instructions or clarification are received by it. 

 

	 	(c)	Any instructions given to the Security Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties. 

 

	 	(d)	Paragraph (a) above shall not apply: 

  
 67 

	 	(i)	where a contrary indication appears in this agreement; 

  

	 	(ii)	where this agreement requires the Security Agent to act in a specified manner or to take a specified action; 

 

	 	(iii)	in respect of any provision which protects the Security Agent’s own position in its personal capacity as opposed to its role of Security Agent for the Secured
Parties including, without limitation, the provisions set out in clauses 30.6 (Security Agent’s Discretions) to clause 30.21 (Disapplication) (inclusive). 

 

	 	(e)	In exercising any discretion to exercise a right, power or authority under this agreement where it has not received any instructions from the Majority Lenders as to the
exercise of that discretion, the Security Agent shall do so having regard to the interests of all the Secured Parties. 

  

	30.5	Security Agent’s Actions 

 The Security Agent may (but shall not be obliged to), in the absence of any instructions to the contrary, take such action in the exercise of any of its powers and duties under the Finance Documents as it
considers in its discretion to be appropriate. 
  

	30.6	Security Agent’s Discretions 

 The Security Agent may: 
  

	 	(a)	assume (unless it has received actual notice to the contrary from the Facility Agent) that (i) no Default has occurred and no Obligor is in breach of or default
under its obligations under any of the Guaranteed Documents and (ii) any right, power, authority or discretion vested by any Guaranteed Document in any person has not been exercised; 

 

	 	(b)	if it receives any instructions or directions from the Agent to take any action in relation to the Security, assume that all applicable conditions under the Guaranteed
Documents for taking that action have been satisfied 

  

	 	(c)	engage, pay for and rely on the advice or services of any legal advisers, accountants, tax advisers, surveyors or other experts (whether obtained by the Security Agent
or by any other Secured Party) whose advice or services may at any time seem necessary, expedient or desirable; 

  

	 	(d)	rely upon any communication or document believed by it to be genuine and, as to any matters of fact which might reasonably be expected to be within the knowledge of a
Secured Party or an Obligor, upon a certificate signed by or on behalf of that person; and 

  

	 	(e)	refrain from acting in accordance with the instructions of any Party (including bringing any legal action or proceeding arising out of or in connection with the
Guaranteed Documents) until it has received any indemnification and/or security that it may in its discretion require (whether by way of payment in advance or otherwise) for all costs, losses and liabilities which it may incur in so acting.

  

	30.7	Security Agent’s Obligations 

 The Security Agent shall promptly: 
  

	 	(a)	copy to the Facility Agent the contents of any notice or document received by it from any Obligor under any Finance Document; 

  
 68 

	 	(b)	forward to a Party the original or a copy of any document which is delivered to the Security Agent for that Party by any other Party provided that, except where a
Finance Document expressly provides otherwise, the Security Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party; and 

 

	 	(c)	inform the Facility Agent of the occurrence of any Default or any default by an Obligor in the due performance of or compliance with its obligations under any
Guaranteed Document of which the Security Agent has received notice from any other party to this agreement. 

  

	30.8	Excluded Obligations 

Notwithstanding anything to the contrary expressed or implied in the Guaranteed Documents, the Security Agent shall not: 

 

	 	(a)	be bound to enquire as to (i) whether or not any Default has occurred or (ii) the performance, default or any breach by an Obligor of its obligations under
any of the Guaranteed Documents; 

  

	 	(b)	be bound to account to any other Party for any sum or the profit element of any sum received by it for its own account; 

 

	 	(c)	be bound to disclose to any other person (including but not limited to any Secured Party) (i) any confidential information or (ii) any other information if
disclosure would, or might in its reasonable opinion, constitute a breach of any law or be a breach of fiduciary duty; or 

  

	 	(d)	have or be deemed to have any relationship of trust or agency with any Obligor. 

 

	30.9	Exclusion of Liability 

None of the Security Agent, any Receiver nor any Delegate shall accept responsibility or be liable for: 

 

	 	(a)	the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Security Agent or any other person in or in connection with any
Guaranteed Document or the transactions contemplated in the Guaranteed Documents, or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Guaranteed Document;

  

	 	(b)	the legality, validity, effectiveness, adequacy or enforceability of any Guaranteed Document, the Charged Property or any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with any Guaranteed Document or the Charged Property; 

  

	 	(c)	any losses to any person or any liability arising as a result of taking or refraining from taking any action in relation to any of the Guaranteed Documents, the Charged
Property or otherwise, whether in accordance with an instruction from the Facility Agent or otherwise unless directly caused by its gross negligence or wilful misconduct; 

 

	 	(d)	the exercise of, or the failure to exercise, any judgment, discretion or power given to it by or in connection with any of the Guaranteed Documents, the Charged
Property or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, the Guaranteed Documents or the Charged Property; or 

 

	 	(e)	any shortfall which arises on the enforcement or realisation of the Charged Property. 

  
 69 

	30.10	No Proceedings 

 No Party
(other than the Security Agent, that Receiver or that Delegate) may take any proceedings against any officer, employee or agent of the Security Agent, a Receiver or a Delegate in respect of any claim it might have against the Security Agent, a
Receiver or a Delegate or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Guaranteed Document or any Charged Property and any officer, employee or agent of the Security Agent, a Receiver or a
Delegate may rely on this clause subject to clause 1.3 (Third Party Rights) and the provisions of the Third Parties Rights Act. 
  

	30.11	Own Responsibility 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Guaranteed
Document, each Secured Party confirms to the Security Agent that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Guaranteed
Document including but not limited to: 
  

	 	(a)	the financial condition, status and nature of each member of the Group; 

  

	 	(b)	the legality, validity, effectiveness, adequacy and enforceability of any Guaranteed Document, the Charged Property and any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with any Guaranteed Document or the Charged Property; 

  

	 	(c)	whether that Secured Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any
Guaranteed Document, the Charged Property, the transactions contemplated by the Guaranteed Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Guaranteed
Document or the Charged Property; 

  

	 	(d)	the adequacy, accuracy and/or completeness of any information provided by the Security Agent or by any other person under or in connection with any Guaranteed Document,
the transactions contemplated by any Guaranteed Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Guaranteed Document; and 

 

	 	(e)	the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any of the Security or the existence of any
Security affecting the Charged Property, 

 and each Secured Party warrants to the Security Agent that it has not
relied on and will not at any time rely on the Security Agent in respect of any of these matters. 
  

	30.12	No Responsibility to Perfect Security 

 The Security Agent shall not be liable for any failure to: 
  

	 	(a)	require the deposit with it of any deed or document certifying, representing or constituting the title of any Obligor to any of the Charged Property;

  

	 	(b)	obtain any licence, consent or other authority for the execution, delivery, legality, validity, enforceability or admissibility in evidence of any of the Guaranteed
Documents or the Security; 

  
 70 

	 	(c)	register, file or record or otherwise protect any of the Security (or the priority of any of the Security) under any applicable laws in any jurisdiction or to give
notice to any person of the execution of any of the Guaranteed Documents or of the Security; 

  

	 	(d)	take, or to require any of the Obligors to take, any steps to perfect its title to any of the Charged Property or to render the Security effective or to secure the
creation of any ancillary Encumbrance under the laws of any jurisdiction; or 

  

	 	(e)	require any further assurances in relation to any of the Security Documents. 

 

	30.13	Insurance by Security Agent 

  

	 	(a)	The Security Agent shall not be under any obligation to insure any of the Charged Property, to require any other person to maintain any insurance or to verify any
obligation to arrange or maintain insurance contained in the Guaranteed Documents. The Security Agent shall not be responsible for any loss which may be suffered by any person as a result of the lack of or inadequacy of any such insurance.

  

	 	(b)	Where the Security Agent is named on any insurance policy as an insured party, it shall not be responsible for any loss which may be suffered by reason of, directly or
indirectly, its failure to notify the insurers of any material fact relating to the risk assumed by such insurers or any other information of any kind, unless the Facility Agent shall have requested it to do so in writing and the Security Agent
shall have failed to do so within fourteen days after receipt of that request. 

  

	30.14	Custodians and Nominees 

The Security Agent may appoint and pay any person to act as a custodian or nominee on any terms in relation to any assets of the trust as
the Security Agent may determine, including for the purpose of depositing with a custodian this agreement or any document relating to the trust created under this agreement and the Security Agent shall not be responsible for any loss, liability,
expense, demand, cost, claim or proceedings incurred by reason of the misconduct, omission or default on the part of any person appointed by it under this agreement or be bound to supervise the proceedings or acts of any person. 

 

	30.15	Acceptance of Title 

 The
Security Agent shall be entitled to accept without enquiry, and shall not be obliged to investigate, any right and title that any of the Obligors may have to any of the Charged Property and shall not be liable for or bound to require any Obligor to
remedy any defect in its right or title. 
  

	30.16	Refrain from Illegality 

Notwithstanding anything to the contrary expressed or implied in the Guaranteed Documents, the Security Agent may refrain from doing
anything which in its opinion will or may be contrary to any relevant law, directive or regulation of any jurisdiction and the Security Agent may do anything which is, in its opinion, necessary to comply with any such law, directive or regulation.

  

	30.17	Business with the Obligors 

The Security Agent may accept deposits from, lend money to, and generally engage in any kind of banking or other business with any of the
Obligors. 

  
 71 

	30.18	Winding up of Trust 

 If
the Security Agent, with the approval of the Majority Lenders, determines that (a) all of the Secured Obligations and all other obligations secured by the Security Documents have been fully and finally discharged and (b) none of the
Secured Parties is under any commitment, obligation or liability (actual or contingent) to make advances or provide other financial accommodation to any Obligor pursuant to the Guaranteed Documents: 

 

	 	(a)	the trusts set out in this agreement shall be wound up and the Security Agent shall release, without recourse or warranty, all of the Security and the rights of the
Security Agent under each of the Security Documents; and 

  

	 	(b)	any Retiring Security Agent shall release, without recourse or warranty, all of its rights under each of the Security Documents. 

 

	30.19	Powers Supplemental 

 The
rights, powers and discretions conferred upon the Security Agent by this agreement shall be supplemental to the Trustee Act 1925 and the Trustee Act 2000 and in addition to any which may be vested in the Security Agent by general law or otherwise.

  

	30.20	Trustee Division Separate 

  

	 	(a)	In acting as trustee for the Secured Parties, the Security Agent shall be regarded as acting through its trustee division which shall be treated as a separate entity
from any of its other divisions or departments. 

  

	 	(b)	If information is received by another division or department of the Security Agent, it may be treated as confidential to that division or department and the Security
Agent shall not be deemed to have notice of it. 

  

	30.21	Disapplication 

Section 1 of the Trustee Act 2000 shall not apply to the duties of the Security Agent in relation to the trusts constituted by this
agreement. Where there are any inconsistencies between the Trustee Act 1925 or the Trustee Act 2000 and the provisions of this agreement, the provisions of this agreement shall, to the extent allowed by law, prevail and, in the case of any
inconsistency with the Trustee Act 2000, the provisions of this agreement shall constitute a restriction or exclusion for the purposes of that Act. 
  

	30.22	Resignation of the Security Agent 

  

	 	(a)	The Security Agent may resign and appoint one of its affiliates as successor by giving notice to the Account Party and the Secured Parties. 

 

	 	(b)	Alternatively the Security Agent may resign by giving notice to the other Parties in which case the Majority Lenders may appoint a successor Security Agent.

  

	 	(c)	After consultation with the Account Party, the Majority Lenders may, by notice to the Security Agent, terminate the appointment of the Security Agent and appoint a
successor Security Agent. That termination and new appointment may be made in respect of all or any part of the Security Agent’s duties, obligations and responsibilities. 

 

	 	(d)	If the Majority Lenders have not appointed a successor Security Agent in accordance with paragraph (b) or (c) above within 30 days after the notice of
resignation or termination was given, the Security Agent (after consultation with the Facility Agent) may appoint a successor Security Agent. 

  
 72 

	 	(e)	The resigning or terminated Security Agent (the “Retiring Security Agent”) shall, at its own cost (in the case of resignation) and at the Account
Party’s cost (in the case of termination), make available to the successor Security Agent such documents and records and provide such assistance as the successor Security Agent may reasonably request for the purposes of performing its functions
as Security Agent under the Guaranteed Documents. 

  

	 	(f)	The Security Agent’s resignation or termination shall only take effect upon the transfer of all of the Charged Property to a duly appointed successor (unless the
Security Agent, the intended successor and the Majority Lenders agree otherwise). 

  

	 	(g)	Upon the appointment of a successor, the Retiring Security Agent shall be discharged from any further obligation in respect of the Guaranteed Documents (other than its
obligations under clause 30.18 (Winding up of Trust) and under paragraph (d) above) but shall, in respect of any act or omission by it whilst it was the Security Agent, remain entitled to the benefit of clauses 30 (Role of the Security Agent)
and clause 10.1 (Account Party’s Indemnity to the Secured Parties). Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if that successor had been an original Party.

  

	30.23	Delegation 

  

	 	(a)	Each of the Security Agent, any Receiver and any Delegate may, at any time, delegate by power of attorney or otherwise to any person for any period, all or any of the
rights, powers and discretions vested in it by any of the Guaranteed Documents. 

  

	 	(b)	That delegation may be made upon any terms and conditions (including the power to sub-delegate) and subject to any restrictions that the Security Agent, that Receiver
or that Delegate (as the case may be) may, in its discretion, think fit in the interests of the Secured Parties and it shall not be bound to supervise, or be in any way responsible for any loss incurred by reason of any misconduct or default on the
part of any such delegate or sub-delegate. 

  

	30.24	Additional Security Agents 

  

	 	(a)	The Security Agent may at any time appoint (and subsequently remove) any person to act as a separate trustee or as a co-trustee jointly with it (i) if it considers
that appointment to be in the interests of the Secured Parties or (ii) for the purposes of conforming to any legal requirements, restrictions or conditions which the Security Agent deems to be relevant or (iii) for obtaining or enforcing
any judgment in any jurisdiction, and the Security Agent shall give prior notice to the Account Party and to the Facility Agent of that appointment. 

  

	 	(b)	Any person so appointed shall have the rights, powers and discretions (not exceeding those conferred on the Security Agent by this agreement) and the duties and
obligations that are conferred or imposed by the instrument of appointment. 

  

	 	(c)	The remuneration that the Security Agent may pay to that person, and any costs and expenses (together with any applicable VAT) incurred by that person in performing its
functions pursuant to that appointment shall, for the purposes of this agreement, be treated as costs and expenses incurred by the Security Agent. 

  
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	31.	CONDUCT OF BUSINESS BY THE FINANCE PARTIES 

 No provision of this agreement will: 
  

	 	(a)	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; 

 

	 	(b)	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

  

	 	(c)	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 

 

	32.	SHARING AMONG THE FINANCE PARTIES 

  

	32.1	Payments to Finance Parties 

 If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor other than in accordance with clause 33 (Payment Mechanics) (a “Recovered
Amount”) and applies that amount to a payment due under the Finance Documents then: 
  

	 	(a)	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Facility Agent; 

 

	 	(b)	the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or
recovery been received or made by the Facility Agent and distributed in accordance with clause 33 (Payment Mechanics), without taking account of any Tax which would be imposed on the Facility Agent in relation to the receipt, recovery or
distribution; and 

  

	 	(c)	the Recovering Finance Party shall, within three Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the “Sharing
Payment”) equal to such receipt or recovery less any amount which the Facility Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with clause 33.5 (Partial Payments).

  

	32.2	Redistribution of Payments 

The Facility Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance
Parties (other than the Recovering Finance Party) (the “Sharing Finance Parties”) in accordance with clause 33.5 (Partial Payments) towards the obligations of that Obligor to the Sharing Finance Parties. 

 

	32.3	Recovering Finance Party’s Rights 

 On a distribution by the Facility Agent under clause 32.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the
Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor. 
  

	32.4	Reversal of Redistribution 

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering
Finance Party, then: 
  

	 	(a)	each Sharing Finance Party shall, upon request of the Facility Agent, pay to the Facility Agent for the account of that Recovering Finance Party an amount equal to the
appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to
pay) (the “Redistributed Amount”); and 

  
 74 

	 	(b)	as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by
that Obligor. 

  

	32.5	Exceptions 

  

	 	(a)	This clause 32 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this clause, have a valid and enforceable
claim against the relevant Obligor. 

  

	 	(b)	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of
taking legal or arbitration proceedings, if: 

  

	 	(i)	it notified that other Finance Party of the legal or arbitration proceedings; and 

 

	 	(ii)	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received
notice and did not take separate legal or arbitration proceedings. 

  

	33.	PAYMENT MECHANICS 

  

	33.1	Payments to the Facility Agent 

  

	 	(a)	On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the
Facility Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Facility Agent as being customary at the time for settlement of transactions in the relevant
currency in the place of payment. 

  

	 	(b)	Payment shall be made to such account in the principal financial centre of the country of that currency with such bank as the Facility Agent specifies.

  

	33.2	Distributions by the Facility Agent 

 Each payment received by the Facility Agent under the Finance Documents for another Party shall, subject to clause 33.3 (Distributions to an Obligor) and clause 33.4 (Clawback), be made available by the
Facility Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the
Facility Agent by not less than five Business Days’ notice with a bank in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre of a Participating Member State or London).

  

	33.3	Distributions to an Obligor 

 The Facility Agent may (with the consent of the Obligor or in accordance with clause 34 (Set-Off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency
and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied. 
  

	33.4	Clawback 

  

	 	(a)	Where a sum is to be paid to the Facility Agent under the Finance Documents for another Party, the Facility Agent is not obliged to pay that sum to that other Party (or
to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. 

  
 75 

	 	(b)	If the Facility Agent pays an amount to another Party and it proves to be the case that the Facility Agent had not actually received that amount, then the Party to whom
that amount (or the proceeds of any related exchange contract) was paid by the Facility Agent shall on demand refund the same to the Facility Agent together with interest on that amount from the date of payment to the date of receipt by the Facility
Agent, calculated by the Facility Agent to reflect its cost of funds. 

  

	33.5	Partial Payments 

  

	 	(a)	If the Facility Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Facility
Agent shall (to the extent permitted by applicable law) apply that payment towards the obligations of that Obligor under the Finance Documents in the following order: 

 

	 	(i)	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Facility Agent and the Security Agent under the Finance Documents;

  

	 	(ii)	secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this agreement; 

 

	 	(iii)	thirdly, in or towards payment pro rata of any principal due but unpaid under this agreement; and 

 

	 	(iv)	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

 

	 	(b)	The Facility Agent shall, if so directed by Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) (inclusive) above. 

 

	 	(c)	Paragraphs (a) and (b) above will override any appropriation made by an Obligor. 

 

	33.6	No Set-Off by Obligors 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any
deduction for) set-off or counterclaim. 
  

	33.7	Business Days 

  

	 	(a)	Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the
preceding Business Day (if there is not). 

  

	 	(b)	During any extension of the due date for payment of any principal or Unpaid Sum under this agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date. 

  

	33.8	Currency of Account 

  

	 	(a)	Subject to paragraphs (b) to (e) (inclusive) below, Sterling is the currency of account and payment for any sum due from an Obligor under any Finance
Document. 

  
 76 

	 	(b)	A repayment or prepayment of an Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency in which that Unpaid Sum is denominated on its due date.

  

	 	(c)	Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

  

	 	(d)	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. 

 

	 	(e)	Any amount expressed to be payable in a currency other than Sterling shall be paid in that other currency. 

 

	33.9	Change of Currency 

  

	 	(a)	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency
of that country, then: 

  

	 	(i)	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid
in, the currency or currency unit of that country designated by the Facility Agent (after consultation with the Account Party); and 

  

	 	(ii)	any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that
currency or currency unit into the other, rounded up or down by the Facility Agent (acting reasonably). 

  

	 	(b)	If a change in any currency of a country occurs, this agreement will, to the extent the Facility Agent (acting reasonably and after consultation with the Account Party)
specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency. 

 

	33.10	Disruption to Payment Systems etc. 

 If either the Facility Agent determines (in its discretion) that a Disruption Event has occurred or the Facility Agent is notified by the Account Party that a Disruption Event has occurred: 

 

	 	(a)	the Facility Agent may, and shall if requested to do so by the Account Party, consult with the Account Party with a view to agreeing with the Account Party such changes
to the operation or administration of the Facilities as the Facility Agent may deem necessary in the circumstances; 

  

	 	(b)	the Facility Agent shall not be obliged to consult with the Account Party in relation to any changes mentioned in paragraph (a) above if, in its opinion, it is not
practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes; 

  

	 	(c)	the Facility Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) above but shall not be obliged to do so if, in its
opinion, it is not practicable to do so in the circumstances; 

  

	 	(d)	any such changes agreed upon by the Facility Agent and the Account Party shall (whether or not it is finally determined that a Disruption Event has occurred) be binding
upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of clause 40 (Amendments and Waivers); 

  
 77 

	 	(e)	the Facility Agent shall not be liable for any damages, costs or losses whatsoever (including, without limitation for negligence, gross negligence or any other category
of liability whatsoever but not including any claim based on the fraud of the Facility Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this clause 33.10; and 

 

	 	(f)	the Facility Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above. 

 

	33.11	Impaired Agent 

  

	 	(a)	If, at any time, the Facility Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Facility
Agent in accordance with this clause 33 may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with a Lender nominated by the Majority Lenders and in relation to which no Insolvency
Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents. In each
case such payments must be made on the due date for payment under the Finance Documents. 

  

	 	(b)	All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their
respective entitlements. 

  

	 	(c)	A Party which has made a payment in accordance with this clause 33.11 shall be discharged of the relevant payment obligation under the Finance Documents and shall not
take any credit risk with respect to the amounts standing to the credit of the trust account. 

  

	 	(d)	Promptly upon the appointment of a successor Facility Agent in accordance with this agreement, each Party which has made a payment to a trust account in accordance with
this clause 33.11 shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Facility Agent for distribution in accordance with clause 33.2
(Distributions by the Facilities Agent). 

  

	34.	SET-OFF 

 Following an
Event of Default which is continuing, a Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance
Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual
course of business for the purpose of the set-off. 
  

	35.	APPLICATION OF PROCEEDS 

  

	35.1	Order of Application 

 All
amounts from time to time received or recovered by the Security Agent in connection with the realisation or enforcement of all or any part of the Security shall be held by the Security Agent on trust to apply them at any time as the Security Agent
(in its discretion) sees fit, to the extent permitted by applicable law (and subject to the provisions of this clause 35), in the following order of priority: 
  

	 	(a)	in discharging any sums owing to the Security Agent, any Receiver or any Delegate; 

  
 78 

	 	(b)	in payment to the Agent, on behalf of the Secured Parties (or, in the case of the Overdraft Facility, directly to the Overdraft Provider), for application on a pro rata
basis towards the discharge of all sums due and payable by any Obligor under any of the Finance Documents (to be applied) in accordance with clause 33.5 (Partial Payments) and the Overdraft Facility Letter to the extent that it constitutes Permitted
Financial Indebtedness; 

  

	 	(c)	if none of the Obligors is under any further actual or contingent liability under any Guaranteed Document, in payment to any person to whom the Security Agent is
obliged to pay in priority to any Obligor; and 

  

	 	(d)	the balance, if any, in payment to the relevant Obligor. 

  

	35.2	Investment of Proceeds 

Prior to the application of the proceeds of the Security Property in accordance with clause 35.1 (Order of Application), the Security
Agent may, in its discretion, hold all or part of those proceeds in an interest-bearing suspense or impersonal account(s) in the name of the Security Agent with such financial institution (including itself) and for so long as the Security Agent
shall think fit (the interest being credited to the relevant account) pending the application from time to time of those monies in the Security Agent’s discretion in accordance with the provisions of this clause 35. 

 

	35.3	Currency Conversion 

  

	 	(a)	For the purpose of, or pending the discharge of, any of the Secured Obligations, the Security Agent may convert any moneys received or recovered by the Security Agent
from one currency to another, at the Security Agent’s spot rate of exchange. 

  

	 	(b)	The obligations of any Obligor to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting the costs of
conversion. 

  

	35.4	Permitted Deductions 

 The
Security Agent shall be entitled, in its discretion, (a) to set aside by way of reserve amounts required to meet and (b) to make and pay, any deductions and withholdings (on account of taxes or otherwise) which it is or may be required by
any applicable law to make from any distribution or payment made by it under this agreement, and to pay all Taxes which may be assessed against it in respect of any of the Charged Property, or as a consequence of performing its duties, or by virtue
of its capacity as Security Agent under any of the Finance Documents or otherwise (other than in connection with its remuneration for performing its duties under this agreement). 

 

	35.5	Good Discharge 

  

	 	(a)	Any payment to be made in respect of the Secured Obligations by the Security Agent may be made to the Facility Agent on behalf of the Lenders or (as applicable) the
Overdraft Provider and any payment made in that way shall be a good discharge, to the extent of that payment, by the Security Agent. 

  

	 	(b)	The Security Agent is under no obligation to make the payments to the Facility Agent or (as applicable) the Overdraft Provider under paragraph (a) above in the
same currency as that in which the Secured Obligations owing to the relevant Lender or (as applicable) the Overdraft Provider are denominated. 

  
 79 

	35.6	Sums received by Obligors 

If any of the Obligors receives any sum which, pursuant to any of the Guaranteed Documents, should have been paid to the Security Agent,
that sum shall promptly be paid to the Security Agent for application in accordance with this clause 35. 
  

	36.	NOTICES 

  

	36.1	Communications in Writing 

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may
be made by fax or letter. 
  

	36.2	Addresses 

 The address
and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is: 

 

	 	(a)	in the case of the Account Party, that identified with its name below; 

  

	 	(b)	in the case of each Lender or any other Original Obligor, that notified in writing to the Facility Agent on or prior to the date on which it becomes a Party; and

  

	 	(c)	in the case of the Facility Agent or the Security Agent, that identified with its name below, 

or any substitute address or fax number or department or officer as the Party may notify to the Facility Agent (or the Facility Agent may
notify to the other Parties, if a change is made by the Facility Agent) by not less than five Business Days’ notice. 
  

	36.3	Delivery 

  

	 	(a)	Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

  

	 	(i)	if by way of fax, when received in legible form; or 

  

	 	(ii)	if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to
it at that address, 

 and, if a particular department or officer is specified as part of its address details
provided under clause 36.2 (Addresses), if addressed to that department or officer. 
  

	 	(b)	Any communication or document to be made or delivered to the Facility Agent or the Security Agent will be effective only when actually received by the Facility Agent
and then only if it is expressly marked for the attention of the department or officer identified with the Facility Agent’s signature below (or any substitute department or officer as the Facility Agent shall specify for this purpose).

  

	 	(c)	All notices from or to an Obligor shall be sent through the Facility Agent. 

 

	 	(d)	Any communication or document made or delivered to the Account Party in accordance with this clause will be deemed to have been made or delivered to each of the
Obligors. 

  
 80 

	36.4	Notification of Address and Fax Number 

 Promptly upon receipt of notification of an address or fax number or change of address or fax number pursuant to clause 36.2 (Addresses) or changing its own address or fax number, the Facility Agent shall
notify the other Parties. 
  

	36.5	Communication when Facility Agent is Impaired Agent 

 If the Facility Agent is an Impaired Agent, the Parties may, instead of communicating with each other through the Facility Agent, communicate with each other directly and (while the Facility Agent is an
Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Facility Agent shall be varied so that communications may be made and notices given to or by the relevant Parties
directly. This provision shall not operate after a replacement Facility Agent has been appointed. 
  

	36.6	Electronic Communication 

  

	 	(a)	Any communication to be made between the Facility Agent and a Lender or the Security Agent under or in connection with the Finance Documents may be made by electronic
mail or other electronic means, if the Facility Agent, the Security Agent and the relevant Lender: 

  

	 	(i)	agree that, unless and until notified to the contrary, this is to be an accepted form of communication; 

 

	 	(ii)	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

  

	 	(iii)	notify each other of any change to their address or any other such information supplied by them. 

 

	 	(b)	Any electronic communication made between the Facility Agent and a Lender or the Security Agent will be effective only when actually received in readable form and in
the case of any electronic communication made by a Lender to the Facility Agent or the Security Agent only if it is addressed in such a manner as the Facility Agent or the Security Agent shall specify for this purpose. 

 

	36.7	English Language 

  

	 	(a)	Any notice given under or in connection with any Finance Document must be in English. 

 

	 	(b)	All other documents provided under or in connection with any Finance Document must be: 

 

	 	(i)	in English; or 

  

	 	(ii)	if not in English, and if so required by the Facility Agent, accompanied by a certified English translation and, in this case, the English translation will prevail
unless the document is a constitutional, statutory or other official document. 

  
 81 

	37.	CALCULATIONS AND CERTIFICATES 

  

	37.1	Accounts 

 In any
litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate. 

 

	37.2	Certificates and Determinations 

 Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

  

	37.3	Day Count Convention 

 Any
interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days or, in any case where the practice in the London interbank market
differs, in accordance with that market practice. 
  

	38.	PARTIAL INVALIDITY 

 If,
at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality,
validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. 
  

	39.	REMEDIES AND WAIVERS 

 No
failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or
other exercise or the exercise of any other right or remedy. The rights and remedies provided in this agreement are cumulative and not exclusive of any rights or remedies provided by law. 

 

	40.	AMENDMENTS AND WAIVERS 

  

	40.1	Required Consents 

  

	 	(a)	Subject to clause 40.2 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Account Party and
any such amendment or waiver will be binding on all Parties. 

  

	 	(b)	The Facility Agent or in respect of the Security Documents, the Security Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this
clause. 

  

	 	(c)	Each Obligor agrees to any such amendment or waiver permitted by this clause 40. which is agreed to by the Account Party. This includes any amendment or waiver which
would, but for this paragraph (c), require the consent of all of the Guarantors. 

  

	40.2	Exceptions 

  

	 	(a)	An amendment or waiver that has the effect of changing or which relates to: 

 

	 	(i)	the definition of “Majority Lenders” in clause 1.1 (Definitions); 

  
 82 

	 	(ii)	an extension to the date of payment of any amount under the Finance Documents; 

 

	 	(iii)	a reduction in the amount of any payment of principal, interest, fees or commission payable; 

 

	 	(iv)	an increase in or an extension of any Commitment; 

  

	 	(v)	a change to the Guarantors other than in accordance with clause 28 (Changes to the Obligors); 

 

	 	(vi)	any provision which expressly requires the consent of all the Lenders; 

  

	 	(vii)	clause 2.2 (Finance Parties’ Rights and Obligations), clause 27 (Changes to the Lenders), clause 32 (Sharing among the Finance Parties) or this clause 40;

  

	 	(viii)	clause 11.4 (Change of Control); 

  

	 	(ix)	the definition of “Availability Period” in clause 1.1 (Definitions); 

 

	 	(x)	clause 24.1 (Financial Condition); 

  

	 	(xi)	a waiver of an Event of Default; 

  

	 	(xii)	the nature or scope of the guarantee and indemnity granted under clause 20 (Guarantee and Indemnity); 

 

	 	(xiii)	the nature and scope of the Charged Property or the manner in which the proceeds of enforcement of the Security are distributed; or 

 

	 	(xiv)	the release of any Security, 

shall not be made without the prior consent of all the Lenders. 

 

	 	(b)	An amendment or waiver which relates to the rights or obligations of the Facility Agent, an Arranger or the Security Agent (each in their capacity as such) may not be
effected without the consent of the Facility Agent, that Arranger or, as the case may be, the Security Agent. 

  

	 	(c)	An amendment or waiver which relates to the rights or obligations of the Overdraft Provider (including any such amendment or waiver referred to in paragraphs (a)(v),
(viii), (ix) or (x) above) may not be effected without the consent of the Overdraft Provider. 

  

	40.3	Replacement of a Defaulting Lender 

  

	 	(a)	The Account Party may, at any time a Lender has become and continues to be a Defaulting Lender, by giving ten Business Days’ prior written notice to the Facility
Agent and that Lender: 

  

	 	(i)	replace that Lender by requiring that Lender to (and that Lender shall) transfer pursuant to clause 27 (Changes to the Lenders) all (and not part only) of its rights
and obligations under this agreement; 

  

	 	(ii)	require that Lender to (and that Lender shall) transfer pursuant to clause 27 (Changes to the Lenders) all (and not part only) of the undrawn Commitment of that Lender;
or 

  
 83 

	 	(iii)	require that Lender to (and that Lender shall) transfer pursuant to clause 27 (Changes to the Lenders) all (and not part only) of its rights and obligations in respect
of the Facility, 

 to a Lender or other Approved Credit Institution selected by the Account Party, and which
(unless the Facility Agent is an Impaired Agent) is acceptable to the Facility Agent (acting reasonably), which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Lender
(including the assumption of the transferring Lender’s participations on the same basis as the transferring Lender). 
  

	 	(b)	Any transfer of rights and obligations of a Defaulting Lender pursuant to this clause shall be subject to the following conditions: 

 

	 	(i)	the Account Party shall have no right to replace the Facility Agent or Security Agent; 

 

	 	(ii)	the Default Lender must receive the purchase price in cash payable at the time of transfer equal to any amount paid by that Defaulting Lender under or in connection
with any Letter of Credit and all accrued interest, fees, break costs and any other amount payable to such Defaulting Lender under the Finance Documents; 

  

	 	(iii)	neither the Facility Agent nor the Defaulting Lender shall have any obligation to the Account Party to find a replacement Lender; and 

 

	 	(iv)	in no event shall the Defaulting Lender be required to pay or surrender to the replacement Lender any of the fees received by the Defaulting Lender pursuant to the
Finance Documents. 

  

	41.	CONFIDENTIALITY 

  

	41.1	Confidential Information 

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted
by clause 41.2 (Disclosure of Confidential Information), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information. 

 

	41.2	Disclosure of Confidential Information 

 Any Finance Party may disclose: 
  

	 	(a)	to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such
Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of
such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise
bound by requirements of confidentiality in relation to the Confidential Information; 

  

	 	(b)	to any person: 

  

	 	(i)	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and
to any of that person’s Affiliates, Related Funds, Representatives and professional advisers; 

  
 84 

	 	(ii)	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction
under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

  

	 	(iii)	appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered
pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed of clause 29.13(c) (Relationship with the Lenders)); 

  

	 	(iv)	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or
(b)(ii) above; 

  

	 	(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority
or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation; 

  

	 	(vi)	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations,
proceedings or disputes; 

  

	 	(vii)	who is a Party; or 

  

	 	(viii)	with the consent of the Account Party; 

 in each case, such Confidential Information as that Finance Party shall consider appropriate if: 
  

	 	(A)	in relation to paragraphs (b)(i), (b)(ii) and b(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality
Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

  

	 	(B)	in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise
bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information; 

 

	 	(C)	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and
that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

  
 85 

	 	(c)	to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in
respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service
provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master
Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Account Party and the relevant Finance Party; 

 

	 	(d)	to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out
its normal rating activities in relation to the Finance Documents and/or the Obligors if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential
Information may be price-sensitive information; 

  

	 	(e)	the size and term of the Facilities and the name of each of the Obligors to any investor or a potential investor in a securitisation (or similar transaction of broadly
equivalent economic effect) of that Lender’s rights or obligations under the Finance Documents. 

  

	41.3	Entire agreement 

 This
clause 41 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether
express or implied, regarding Confidential Information. 
  

	41.4	Inside information 

 Each
of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law
relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose. 
  

	41.5	Notification of disclosure 

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Account Party: 

 

	 	(a)	of the circumstances of any disclosure of Confidential Information made pursuant to clause 41.2(b)(v) (Disclosure of Confidential Information) except where such
disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and 

  

	 	(b)	upon becoming aware that Confidential Information has been disclosed in breach of this clause 41 (Confidentiality). 

 

	41.6	Continuing obligations 

The obligations in this clause 41 (Confidentiality) are continuing and, in particular, shall survive and remain binding on each Finance
Party for a period of twelve months from the earlier of: 
  

	 	(a)	the date on which all amounts payable by the Obligors under or in connection with this agreement have been paid in full and all Commitments have been cancelled or
otherwise cease to be available; and 

  

	 	(b)	the date on which such Finance Party otherwise ceases to be a Finance Party. 

  
 86 

	42.	COUNTERPARTS 

 Each
Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 

 

	43.	GOVERNING LAW 

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

	44.	ENFORCEMENT 

  

	 	(a)	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this agreement (including a dispute relating to the
existence, validity or termination of this agreement or any non-contractual obligation arising out of or in connection with this agreement) (a “Dispute”). 

 

	 	(b)	The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

  

	 	(c)	This clause 44 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any
other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions. 

  

	44.2	Service of Process 

  

	 	(a)	Without prejudice to any other mode of service allowed under any relevant law, each Guarantor (other than a Guarantor incorporated in England and Wales):

  

	 	(i)	irrevocably appoints the Account Party as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance
Document the Account Party by its execution of this agreement, accepts that appointment); and 

  

	 	(ii)	agrees that failure by an agent for service of process to notify the relevant Guarantor of the process will not invalidate the proceedings concerned.

  

	 	(b)	If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, the Account Party (on behalf of all the
Obligors) must immediately (and in any event within five days of such event taking place) appoint another agent on terms acceptable to the Facility Agent. Failing this, the Facility Agent may appoint another agent for this purpose.

  

	 	(c)	The Account Party expressly agrees and consents to the provisions of this clause 44 and clause 43 (Governing Law). 

IN WITNESS whereof this agreement has been executed on the date first above written 

  
 87 

 SCHEDULE 1 
 The Original Parties 
 Part 1 - The Original Guarantors 

 

					
			
	Name of Original Guarantor	  	Registration number (or equivalent, if any)	  	
			
	Chaucer Holdings plc	  	2847982	  	
			
	Chaucer Corporate Capital (No. 2) Limited	  	03099078	  	
			
	Chaucer Corporate Capital (No. 3) Limited	  	05203226	  	

 Part 2 - The Original Lenders 

 

					
			
	Name of Original Lender	  	Commitment	  	
			
	Lloyds TSB Bank plc	  	£40,000,000	  	
			
	Barclays Bank PLC	  	£25,000,000	  	
			
	The Royal Bank of Scotland plc	  	£25,000,000	  	
			
		  	£90,000,000	  	

  
 88 

 SCHEDULE 2 
 Conditions Precedent 
 Part 1 - Conditions Precedent to Initial
Utilisation 
  

	1.	ORIGINAL OBLIGORS 

 In
this section 1 of Part 1 of Schedule 2, Original Obligor and Original Guarantor shall include Chaucer Freeholds Limited 
  

	1.1	A copy of the constitutional documents of each Original Obligor. 

  

	1.2	A copy of a resolution of the board of directors of each Original Obligor: 

 

	 	(a)	approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which
it is a party; 

  

	 	(b)	authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and 

 

	 	(c)	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be
signed and/or despatched by it under or in connection with the Finance Documents to which it is a party. 

  

	1.3	A specimen of the signature of each person authorised by the resolution referred to in paragraph 1.2 above. 

 

	1.4	A copy of a resolution signed by all the holders of the issued shares in each Original Guarantor, approving the terms of, and the transactions contemplated by, the
Finance Documents to which the Original Guarantor is a party. 

  

	1.5	A certificate of the Account Party (signed by a director) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any
borrowing, guaranteeing or similar limit binding on any Original Obligor to be exceeded. 

  

	1.6	A certificate of an authorised signatory of the relevant Original Obligor certifying that each copy document relating to it specified in this part 1 of schedule 2 is
correct, complete and in full force and effect as at a date no earlier than the date of this agreement. 

  

	2.	FINANCE DOCUMENTS 

  

	2.1	This agreement executed by the members of the Group party to it. 

  

	2.2	The Fee Letters executed by the parties to it. 

  

	2.3	The following Security Documents, executed and delivered by the parties to it: 

 

			
	 Name of Obligor/third party security provider
	 	 Description of Security Document

	 The Account Party
	 	English law debenture
	 The Account Party
	 	Deposit Agreement
	 Chaucer Freeholds Limited
	 	A legal mortgage over the land on the south side of Thanet Way, Whitstable, Canterbury, Kent and which is registered at HM Land Registry with Title Number
K803147

  
 89 

	3.	PERFECTION OF SECURITY 

  

	3.1	Notices of assignment or charge to be sent under the Security Documents executed on behalf of each relevant Obligor. 

 

	3.2	A copy of all share certificates, transfers and stock transfer forms or equivalent and executed by the relevant Obligor in relation to the assets subject to or
expressed to be subject to the Security. 

  

	3.3	A certified extract of the register of members of each relevant member of the Group, the shares of which are subject to or expressed to be subject to the Security.

  

	3.4	The following in relation to Security over Properties in England and Wales granted under the Security Documents: 

 

	 	(a)	satisfactory priority searches of HM Land Registry and Land Charges Searches; 

 

	 	(b)	an effective discharge of all Security affecting the Properties (if any) together with all requisite Land Registry forms (including (where relevant) information
relating to the identity of any releasing chargee); and 

  

	 	(c)	a letter of undertaking from counsel to the Account Party, concerning the registration of the charge over Properties and, if a relevant registration fee is required, a
cheque for such amount. 

  

	4.	LEGAL OPINIONS 

  

	4.1	A legal opinion of Ashurst LLP, legal advisers to the Arrangers and the Facility Agent in England, substantially in the form distributed to the Original Lenders prior
to signing this agreement. 

  

	4.2	If an Original Obligor is incorporated in a jurisdiction other than England and Wales, a legal opinion of the legal advisers to the Arrangers and the Facility Agent in
the relevant jurisdiction, substantially in the form distributed to the Original Lenders prior to signing this agreement. 

  

	5.	OTHER DOCUMENTS AND EVIDENCE 

  

	5.1	Evidence, satisfactory to the Facility Agent, that on or before the first Utilisation Date, £10,000,000 is deposited by the Account Party into the Specified
Account, as Cash Collateral. 

  

	5.2	A Substitution Letter in respect of the substitution of a Letter of Credit for the letter of credit issued under the Existing Facility, executed by Lloyd’s.

  

	5.3	The Letter of Comfort, executed by Lloyd’s. 

  

	5.4	The FAL Providers Deed, executed by the parties to it. 

  

	5.5	A certified copy of the whole account aggregate excess of loss reinsurance slip between the Account Party or Chaucer No. 2 and Flagstone Reassurance Suisse SA
– Bermuda Branch (“Flagstone”) dated on or around the date of this agreement evidencing, to the satisfaction of the Facility Agent, a minimum of £46,500,000 of Subordinated Funds at Lloyd’s provided by Flagstone.

  
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	5.6	Evidence, satisfactory to the Facility Agent, that on or before the first Utilisation Date, all amounts outstanding under the Existing Facility Agreement, have been or
will be refinanced and the facility made available under the Existing Facility Agreement has been cancelled in full and all Encumbrances granted under the Existing Facility Agreement have been irrevocably released. 

 

	5.7	The Original Financial Statements of each Original Obligor. 

  

	5.8	Evidence that the fees, costs and expenses then due from the Account Party pursuant to clause 12 (Commission and Fees) and clause 18 (Costs and Expenses) have been paid
or will be paid within three Business Days of the signing of this agreement. 

  

	5.9	A certificate of the Account Party (signed by a director) addressed to the Finance Parties confirming which companies within the Group are Material Companies and which
has earnings before interest, tax, depreciation and amortisation representing five per cent. or more of consolidated earnings before interest, tax, depreciation and amortisation of the Group or has gross assets representing five per cent., or more
of the gross assets of the Group, calculated on a consolidated basis. 

  

	5.10	Evidence satisfactory to the Facility Agent that all Encumbrances (if any) other than Permitted Encumbrances over the revenues or assets of the Account Party and its
subsidiaries have been released or discharged. 

  

	5.11	In respect of any floating charge (which has not been discharged) granted by any of the Obligors in favour of Lloyd’s, confirmation (from Lloyd’s and
addressed to the Finance Parties): 

  

	 	(a)	of non-crystallisation of such floating charge; and 

  

	 	(b)	that no consent, pursuant to the terms of such floating charge, is required from Lloyd’s to such Obligor’s entry into any of the Security Documents.

  

	5.12	Customary and required “know your customer” information for each Lender in respect of the Original Obligors. 

 

	5.13	The Overdraft Letter, executed by the parties to it. 

  
 91 

 Part 2 - Conditions Precedent Required to be Delivered by an Additional Guarantor 

 

	1.	An Accession Letter, duly executed by the Additional Guarantor and the Account Party. 

 

	2.	A copy of the constitutional documents of the Additional Guarantor. 

  

	3.	A copy of a resolution of the board of directors of the Additional Guarantor: 

 

	3.1	approving the terms of, and the transactions contemplated by, the Accession Letter and the Finance Documents and resolving that it execute the Accession Letter;

  

	3.2	authorising a specified person or persons to execute the Accession Letter on its behalf; and 

 

	3.3	authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices to be signed and/or despatched by it under or in
connection with the Finance Documents. 

  

	4.	A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above. 

 

	5.	A copy of a resolution signed by all the holders of the issued shares of the Additional Guarantor, approving the terms of, and the transactions contemplated by, the
Finance Documents to which the Additional Guarantor is a party. 

  

	6.	A certificate of the Additional Guarantor (signed by a director) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any
borrowing, guaranteeing or similar limit binding on it to be exceeded. 

  

	7.	A certificate of an authorised signatory of the Additional Guarantor certifying that each copy document listed in this part 2 of schedule 2 is correct, complete and in
full force and effect as at a date no earlier than the date of the Accession Letter. 

  

	8.	A copy of any other Authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary or desirable in connection with the entry
into and performance of the transactions contemplated by the Accession Letter or for the validity and enforceability of any Finance Document. 

  

	9.	If available, the latest audited financial statements of the Additional Guarantor. 

 

	10.	A legal opinion of Ashurst LLP, legal advisers to the Arrangers and the Facility Agent in England and Wales. 

 

	11.	If the Additional Guarantor is incorporated in a jurisdiction other than England and Wales, a legal opinion of the legal advisers to the Arrangers and the Facility
Agent in the jurisdiction in which the Additional Guarantor is incorporated. 

  

	12.	If the proposed Additional Guarantor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in clause 44.2 (Service
of Process), if not an Obligor, has accepted its appointment in relation to the proposed Additional Guarantor. 

  

	13.	Customary and required “know your customer” information for each Lender in respect of each Additional Guarantor. 

  
 92 

 SCHEDULE 3 
 Utilisation Request 
  

	From:	Chaucer Holdings plc (the “Account Party”) 

  

	To:	Lloyds TSB Bank plc (the “Facility Agent”) 

  

	Dated:	

 Dear Sirs 

Chaucer Holdings plc – standby letter of credit facility agreement dated [•] (the “Agreement”) 

 

	1.	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different
meaning in this Utilisation Request. 

  

	2.	We wish to arrange for a Letter of Credit to be issued by the Lenders on the following terms: 

 

			
	 Applicant:
	  	Chaucer Corporate Capital (No. 2) Limited
		
	 Proposed Utilisation Date:
	  	[•] (or, if that is not a Business Day, the next Business Day)
		
	 Commencement Date of Letter of Credit:
	  	[•]
		
	 Face amount:
	  	[•] or, if less, the Available Facility
		
	 Term:
	  	[•]
		
	 Expiry Date:
	  	[•]

  

	3.	We confirm that each condition specified in clause 5.2 (Further Conditions Precedent) is satisfied on the date of this Utilisation Request. 

 

	4.	This Utilisation Request is irrevocable. 

  

	5.	The Letter of Credit should be issued in favour of Lloyd’s in the form attached and delivered to the recipient at The Society and the Council of Lloyd’s, C/o
The Manager, Market Services, Fidentia House, Walter Burke Way, Chatham Maritime, Chatham, Kent ME4 4RN. 

  

	
	Yours faithfully
	
	  
	 authorised signatory for

Chaucer Holdings plc

  
 93 

 SCHEDULE 4 
 Form of Letter of Credit 
 Letter of Credit to be issued by the Facility
Agent on behalf of the Banks 
  

	To:	The Society and the Council of Lloyd’s 

 c/o The Manager, Market Services 
 Fidentia House 

Walter Burke Way 

Chatham Maritime 

Chatham, Kent ME4 4RN 
 [Commencement Date] 
 Dear Sirs 

Irrevocable Standby Letter of Credit No. [            ] 

 

	Re:	Chaucer Corporate Capital (No. 2) Limited (the “Applicant”) 

 This Clean Irrevocable Standby Letter of Credit (the “Credit”) is issued by the banks whose names are set out in schedule 1 to this Credit (the “Issuing Banks”, and each an
“Issuing Bank”) in favour of the Society of Lloyd’s (“Lloyd’s”) on the following terms: 
  

	1.	Subject to the terms hereof, the Issuing Banks shall make payments within two business days of demand on Lloyds TSB Bank plc (the “Facility Agent”) in
accordance with paragraph 4 below. 

  

	2.	Upon a demand being made by Lloyd’s pursuant to paragraph 4 below, each Issuing Bank shall pay that proportion of the amount demanded which is equal to the
proportion which its Commitment set out in schedule 1 to this Credit bears to the aggregate Commitments of all the Issuing Banks set out in schedule 1 to this Credit, provided that the obligations of the Issuing Banks under this Credit shall be
several and no Issuing Bank shall be required to pay an amount exceeding its Commitments set out in schedule 1 (Issuing Banks’ Commitments) to this Credit and the Issuing Banks shall not be obliged to make payments hereunder in aggregate
exceeding a maximum amount of [amount in sterling]. Any payment by an Issuing Bank under this Credit shall be made in sterling to the Lloyd’s account specified in the demand made by Lloyd’s pursuant to paragraph 4 below.

  

	3.	This Credit is effective from [•] (the “Commencement Date”) and will expire on the Final Expiration Date. This Credit shall remain in force until
we give you not less than four years’ notice in writing terminating the same on the fourth anniversary of the Commencement Date or on any date subsequent thereto as specified in such notice (the “Final Expiration Date”), our
notice to be sent by registered mail for the attention of the Manager, Members’ Services at the above address. 

  

	4.	Subject to paragraph 3 above, the Issuing Banks shall pay to Lloyd’s under this Credit upon presentation of a demand by Lloyd’s on the Facility Agent at
Lloyds TSB Bank plc., Trade Operations London, 4th Floor, 48 Chiswell Street, London. EC1Y 4XX. Attention Guarantees Department substantially in the form set out in schedule 2 (Form of Demand (Pounds Sterling)) to this Credit the amount specified
therein (which amount shall not, when aggregated with all other amounts paid by the Issuing Banks to Lloyd’s under this Credit, exceed the maximum amount referred to in paragraph 2 above). 

 

	5.	The Facility Agent has signed this Credit as agent for disclosed principals and accordingly shall be under no obligation to Lloyd’s hereunder other than in its
capacity as an Issuing Bank. 

  
 94 

	6.	All charges are for the Applicant’s account. 

  

	7.	Subject to any contrary indication herein, this Credit is subject to the International Standby Practices - ISP98 (1998 publication - International Chamber of Commerce
Publication No. 590). 

  

	8.	This Credit and all non-contractual obligations arising from or in connection with it shall be governed by and interpreted in accordance with English law and the
Issuing Banks hereby irrevocably submit to the jurisdiction of the High Court of Justice in England. 

  

	9.	Each Issuing Bank engages with Lloyd’s that demands made under and in compliance with the terms and conditions of this Credit will be duly honoured on
presentation. 

  

	
	Yours faithfully
	
	  
	 for and on behalf of

Lloyds TSB Bank plc

 For and on behalf of 
 [Names of all Issuing Banks including the Facility Agent] 

  
 95 

 Schedule 1 to the Letter of Credit 

Issuing Banks’ Commitments 
  

			
	 Name and Address of Issuing Bank
	  	Commitment (Pounds Sterling)
	
	 Total
Value:                                        
                                         
   

  
 96 

 Schedule 2 to the Letter of Credit 

Form of Demand (Pounds Sterling) 
 [On Lloyd’s letterhead] 
 Dear Sir/Madam 

THE SOCIETY OF LLOYD’S 
 TRUSTEE
OF 
 LETTER OF CREDIT NO. 

With reference to the above, we enclose for your attention a Bill of Exchange, together with the respective Letter of Credit. Payment should be made by
way of CHAPS. The account details are as follows: 
  

			
	 Lloyd’s of London
	  	
	 NatWest

City of London Office

P.O. Box 12258
 1 Princes Street
 London

EC2R 8AP
	  	

 Please quote Member Code: 
 Yours faithfully 
  

			
	 for Manager
 Market
Services

		
	By:	 	 
	Name:	 	
	Title:	 	
	
	Your ref:
	
	Our ref:     MEM/     /     /     /
		
	Extn:	 	

  
 97 

 BILL OF EXCHANGE 
 The Society of Lloyd’s 
 Trustee of 

Letter of Credit No. 
 Please pay in accordance
with the terms of the Letter of Credit to our order the amount of £            . 
  

	
	For and on behalf of
	
	  
	 Authorised Signatory
 Market Services

  

	To:	Lloyds TSB Bank plc 

 as Bank

  
 98 

 SCHEDULE 5 
 Letter of Comfort 
 [on Lloyd’s letterhead]

 To: 
 Chaucer Holdings plc

 Plantation Place 
 30 Fenchurch
Street 
 London, EC3M 3AD 
 [date] 
 Dear Sir / Madam 
 CHAUCER HOLDINGS PLC 
  

	1.	We acknowledge that Chaucer Holdings plc (Holdings) has procured or may procure the provision to Lloyd’s of: (i) a letter of credit provided to Lloyd’s
in respect of Chaucer Corporate Capital (No.2) Limited (the Member) by Lloyds TSB Bank plc, Barclays Bank plc and The Royal Bank of Scotland plc pursuant to a facility agreement dated on or about the date of this letter, such letter of credit having
an aggregate amount of £90,000,000 (the Bank LOC); and (ii) a letter of credit backed by a reinsurance agreement with Flagstone Reassurance Suisse S.A. - Bermuda Branch (the Reinsurer LOC). The Bank LOC and the Reinsurer LOC form part of
the Funds at Lloyd’s of the Member. 

  

	2.	You have asked whether, in the event of monies having to be drawn down or applied out of the Member’s Funds at Lloyd’s, the letters of credit and other Funds
at Lloyd’s of the Member may be drawn down in a pre-determined order namely: 

  

	 	(a)	in respect of Syndicates 1084 and 1176 for the 2010 and 2011 and prior open years of account, Syndicate 4242 for the 2010 and prior open years of account and Syndicate
4000 for the 2008 year of account: 

  

	 	(i)	first, from all the Member’s Funds at Lloyd’s (other than the Member’s Funds at Lloyd’s comprising the Bank LOC and the Reinsurer LOC) until such
funds are exhausted; 

  

	 	(ii)	secondly, from the Reinsurer LOC until such funds are exhausted; and 

  

	 	(iii)	thirdly, from the Bank LOC until such funds are exhausted, 

  

	 	(b)	in respect of Syndicates 1084 and 1176 for the 2012 year of account: 

  

	 	(i)	first, from all the Member’s Funds at Lloyd’s (other than the Member’s Funds at Lloyd’s comprising the Bank LOC and the Reinsurer LOC) until such
funds are exhausted; and 

  

	 	(ii)	secondly, from the Bank LOC until such funds are exhausted. 

  

	3.	In addition to the order set out in paragraph 2, it is intended that the Reinsurer LOC shall not form part of the Funds at Lloyd’s of the Member in respect of
Syndicates 1084 and 1176 for the 2012 year of account. 

  

	4.	As you are aware, the letters of credit and other Funds at Lloyd’s of the Member are held by Lloyd’s in its capacity as trustee. Any decision to draw down or
apply any such letter of credit involves an exercise of discretion in light of the circumstances prevailing at the time of such decision and thus no binding undertaking can be given now by Lloyd’s as to the order of drawdown or application.

  
 99 

	5.	However, we confirm that at the time of considering the drawdown or application of the Member’s Funds at Lloyd’s, Lloyd’s will take into account:

  

	 	(a)	the requested order of drawdown set out in the second paragraph of this letter; and 

 

	 	(b)	the intention in relation to the Reinsurer LOC for the 2012 year of account set out in the third paragraph of this letter. 

 

	6.	For the avoidance of doubt, Lloyd’s shall not be responsible to you or any other person for any losses incurred by you or such other person as a consequence of
acting in reliance upon this letter. 

  

	
	Yours faithfully
	
	  
	 for and on behalf of

Lloyd’s of London

  
 100

 SCHEDULE 6 
 Form of Transfer Certificate 
  

	To:	[•] as Facility Agent 

  

	From:	[The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

 Dated: 

Chaucer Holdings plc- £90,000,000 Facility Agreement 
 dated [•] (the “Agreement”) 
  

	1.	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different
meaning in this Transfer Certificate. 

  

	2.	We refer to clause 27.5 (Procedure for Transfer): 

  

	2.1	the Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender’s Commitment,
rights and obligations referred to in the schedule in accordance with clause 27.5 (Procedure for Transfer); 

  

	2.2	the proposed Transfer Date is [•]; 

  

	2.3	the Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of clause 36.2 (Addresses) are set out in the schedule.

  

	3.	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in clause 27.4(c) (Limitation of Responsibility of Existing
Lenders). 

  

	4.	The New Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is: 

 

	 	(c)	[a Qualifying Lender falling within paragraph (i)(A) [or paragraph (ii)] of the definition of Qualifying Lender;] 

 

	 	(d)	[a Treaty Lender;] 

  

	 	(e)	[not a Qualifying Lender]. 

  

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

  

	6.	This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law. 

 

	7.	This Transfer Certificate has been entered into on the date stated at the beginning of this Transfer Certificate. 

THE SCHEDULE 
 Commitment/Rights and Obligations to be Transferred 

[insert relevant details] 

  
 101

 [Facility Office address, fax number and attention details

 for notices and account details for payments] 

 

									
	[Existing Lender]	 		 	[New Lender]
					
	 By:
	 	 	 		 	By:	 	 

 This Transfer Certificate is accepted by the Facility Agent and the Transfer Date is confirmed as [•]. 

 

			
	[Facility Agent]
		
	By:	 	 
		 	

  
 102

 SCHEDULE 7 
 Form of Assignment Agreement 
  

	To:	[            ] as Facility Agent and
[            ] as Account Party, for and on behalf of each Obligor 

  

	From:	[the Existing Lender] (the “Existing Lender”) and [the New Lender] (the “New Lender”) 

Dated: 
 Chaucer Holdings
plc- £90,000,000 Facility Agreement 
 dated
[            ] (the “Agreement”) 
  

	1.	We refer to the Agreement. This is an Assignment Agreement. Terms defined in the Agreement have the same meaning in this Assignment Agreement unless given a different
meaning in this Assignment Agreement. 

  

	2.	We refer to clause 27.6 (Procedure for Assignment): 

  

	 	(a)	The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Agreement and the other Finance Documents which relate to that
portion of the Existing Lender’s Commitments and participations in Loans under the Agreement as specified in the Schedule. 

  

	 	(b)	The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitments and
participations in Loans under the Agreement specified in the Schedule. 

  

	 	(c)	 The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph
(b) above.1 

 

	3.	The proposed Transfer Date is [            ]. 

 

	4.	On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender. 

 

	5.	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of clause 36.2 (Addresses) are set out in the Schedule.

  

	6.	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in clause 27.4(c) (Limitation of Responsibility of Existing
Lenders). 

  

	7.	The New Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is: 

 

	 	(i)	[a Qualifying Lender falling within paragraph (i)(A) [or paragraph (ii)] of the definition of Qualifying Lender;] 

 

	 	(ii)	[a Treaty Lender;] 

  

	 	(iii)	 [not a Qualifying
Lender].2 

 
  

	1 	 If the Assignment Agreement is used in place of a Transfer Certificate in order to avoid a novation of rights/obligations for reasons relevant to a
civil jurisdiction, local law advice should be sought to check the suitability of the Assignment Agreement due to the assumption of obligations contained in paragraph 2(c). This issue should be addressed at primary documentation stage.

  
 103

	8.	[The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

  

	 	(a)	a company resident in the United Kingdom for United Kingdom tax purposes; or 

 

	 	(b)	a partnership each member of which is: 

  

	 	(i)	a company so resident in the United Kingdom; or 

  

	 	(ii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in
computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or 

 

	 	(c)	 a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]3 

  

	[8/9].	This Assignment Agreement acts as notice to the Facility Agent (on behalf of each Finance Party) and, upon delivery in accordance with clause 27.7 (Copy of Transfer
Certificate or Assignment Agreement to Account Party), to the Account Party (on behalf of each Obligor) of the assignment referred to in this Assignment Agreement. 

 

	[9/10].	This Assignment Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of
this Assignment Agreement. 

  

	[10/11].	This Assignment Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law. 

 

	[11/12].	This Assignment Agreement has been entered into on the date stated at the beginning of this Assignment Agreement. 

THE SCHEDULE 
 Rights to be assigned and obligations to be released and undertaken 

[insert relevant details] 
 [Facility office address, fax number and attention details for notices and account details for payments] 

 

									
	[Existing Lender]	 		 	[New Lender]
					
	By:	 	 	 		 	By:	 	 
		 		 		 		 	

  
  

	2 	 Delete as applicable - each New Lender is required to confirm which of these three categories it falls within. 

	3 	 Include only if New Lender is a UK Non-Bank Lender - i.e. falls within paragraph (i)(B) of the definition of Qualifying Lender in clause 13.1
(Definitions). 

  
 104

 This Assignment Agreement is accepted by the Facility Agent and the Transfer Date is confirmed as
[            ]. 
 Signature of this Assignment Agreement by the Facility Agent
constitutes confirmation by the Facility Agent of receipt of notice of the assignment referred to herein, which notice the Facility Agent receives on behalf of each Finance Party. 

 

			
	[Facility Agent]
		
	By:	 	 
		 	

  
 105

 SCHEDULE 8 
 Form of Accession Letter 
 Part 1 - Form of Guarantor Accession Letter

  

	To:	[•] as Facility Agent 

  

	From:	[Subsidiary] and [Account Party] 

 Dated: 
 Dear Sirs 
 Chaucer Holdings plc-£90,000,000 Facility Agreement 
 dated [•]
(the “Agreement”) 
  

	9.	We refer to the Agreement. This is an Accession Letter. Terms defined in the Agreement have the same meaning in this Accession Letter unless given a different meaning
in this Accession Letter. 

  

	10.	[Subsidiary] agrees to become an Additional Guarantor and to be bound by the terms of the Agreement as an Additional Guarantor pursuant to clause 28.2
(Additional Guarantors) of the Agreement. [Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction]. 

  

	11.	[Subsidiary’s] administrative details are as follows: 

 Address: 
 Fax No: 

Attention: 
  

	12.	This Accession Letter and any non-contractual obligations arising out of or in connection with it are governed by English law. 

This Guarantor Accession Letter is entered into by deed. 
  

			
	 [Account Party]
	  	[Subsidiary]

  
 106

 Part 2 - Form of New Lender Accession Letter 

 

	To:	[•] as Facility Agent 

  

	From:	[The New Lender] (the “New Lender”) 

 Dated: 
 Chaucer Holdings plc-£90,000,000 Facility Agreement

 dated [•] (the “Agreement”) 

 

	1.	We refer to the Agreement. This is an Accession Letter. Terms defined in the Agreement have the same meaning in this Accession Letter unless given a different meaning
in this Accession Letter; 

  

	2.	We refer to clause 27.5 (Procedure for Transfer or Accession); 

  

	2.1	the New Lender agrees to be bound by the terms of the Agreement and the other Finance Documents as a Lender; 

 

	2.2	the proposed Accession Date is [•]; 

  

	2.3	the Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of clause 36.2 (Addresses) are set out in the schedule;

  

	3.	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in clause 27.4(c) (Limitation of Responsibility of Existing
Lenders). 

  

	4.	The New Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is: 

 

	 	(f)	[a Qualifying Lender falling within paragraph (i)(A) [or paragraph (ii)] of the definition of Qualifying Lender;] 

 

	 	(g)	[a Treaty Lender;] 

  

	 	(h)	[not a Qualifying Lender]. 

  

	5.	This Accession Letter may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this
Transfer Certificate. 

  

	6.	This Accession Letter and any non-contractual obligations arising out of or in connection with it are governed by English law. 

 

	7.	This Accession Letter has been entered into on the date stated at the beginning of this Accession Letter. 

  
 107

 SCHEDULE 9 
 Form of Resignation Letter 
  

	To:	[•] as Facility Agent 

  

	From:	[resigning Obligor] and [Account Party] 

 Dated: 
 Dear Sirs 
 Chaucer Holdings plc - £90,000,000 Facility Agreement 
 dated
[•] (the “Agreement”) 
  

	1.	We refer to the Agreement. This is a Resignation Letter. Terms defined in the Agreement have the same meaning in this Resignation Letter unless given a different
meaning in this Resignation Letter. 

  

	2.	Pursuant to clause 28.4 (Resignation of a Guarantor), we request that [resigning Obligor] be released from its obligations as a Guarantor under the
Agreement. 

  

	3.	We confirm that no Default is continuing or would result from the acceptance of this request. 

 

	4.	This Resignation Letter and any non-contractual obligations arising out of or in connection with it are governed by English law. 

 

			
	 [Account Party]
	  	[Subsidiary]
		
	 By:
	  	By:

  
 108

 SCHEDULE 10 
 Form of Compliance Certificate 
  

	To:	Lloyds TSB Bank plc as Facility Agent 

  

	From:	Chaucer Holdings plc 

 Dated: 

Dear Sirs 
 Chaucer Holdings
plc - £90,000,000 Facility Agreement 
 dated [•] (the “Agreement”) 

 

	1.	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have the same meaning when used in this Compliance Certificate unless given
a different meaning in this Compliance Certificate. 

  

	2.	We confirm that as at [Insert Date]: 

  

	 	(a)	Consolidated Tangible Net Worth was £[        ]; 

 

	 	(b)	50 per cent. of the net proceeds of any share capital issue or raised by the Account Party after 30 September 2010 until [Insert Date] is
£[•]; and 

  

	 	(c)	50 per cent. of the cumulative consolidated profit after tax of the Group since 30 September 2010 (for the avoidance of doubt, ignoring any financial years in
which such consolidated profit is a negative amount) (as detailed in the relevant audited consolidated financial statements of the Account Party and related Compliance Certificate most recently delivered pursuant to clause 23.3 (Compliance
Certificate)); and 

  

	 	(d)	Consolidated Net Borrowings were £[•]; 

  

	3.	Therefore, Consolidated Tangible Net Worth is not less than £[220,000,000] plus [Insert aggregate figure from 2(c) and (d)] and as at [Insert
Date] Consolidated Net Borrowings (excluding the Subordinated Loan Notes) did not exceed 35% of Consolidated Tangible Net Worth. 

  

	4.	The Uncollateralised Outstandings as at 31 December [year] were [•]. 

 

	5.	The total Funds at Lloyd’s of Chaucer Holdings plc (including Subordinated Funds at Lloyd’s and FAL provided in accordance with this agreement) were [•]
as at 31 December [year]. 

  

	6.	Therefore, we confirm that as at [Insert Date] the Uncollateralised Outstandings do not exceed 25% of the total Funds at Lloyd’s of Chaucer Holdings
plc (including Subordinated Funds at Lloyd’s). 

  

	7.	The Forecast Losses for the years of account for a Managed Syndicate were as follows: 

 

	 	(a)	[Managed Syndicate] [year of account] - [Losses] 

  

	 	(b)	the aggregate of the Member’s Share of the estimated net losses in respect of any of the scenarios contained in the Realistic Disaster Scenarios prepared in
relation to Syndicate 1084 for [•] year of account was £[•]; 

  
 109

	 	(c)	the aggregate Member’s Syndicate Premium Limit of such Underwriting Member for [•] year of account was £[•]; 

 

	8.	Therefore: 

  

	 	(a)	Forecast Losses in respect of [•] year of account for any Managed Syndicate, do not exceed 10 per cent. of the aggregate Syndicate Allocated Capacities for
those Managed Syndicates in respect of that year of account; and 

  

	 	(b)	the aggregate of the Member’s Share of the estimated net losses in respect of any of the scenarios contained in the Realistic Disaster Scenarios prepared in
relation to Syndicate 1084 shall not exceed 20 per cent. of the aggregate Member’s Syndicate Premium Limit of such Underwriting Members in any one year of account. 

 

	9.	[We confirm that the following companies constitute Material Companies for the purposes of the Facilities Agreement: [X].] 

[Computations which determine those companies classification as Material Companies (in reasonable detail) to be included]

  

	10.	We confirm that, as at the date hereof no Event of Default or Default has occurred which is continuing. 

 

									
					
	Signed:	 	 	 		 		 	 
		 	 Director
 of

Chaucer Holdings plc
	 		 		 	 Director
 of

Chaucer Holdings plc

  
 110

 SCHEDULE 11 
 LMA Form of Confidentiality Undertaking 
 [Letterhead of Transferring
Lender] 
  

	To:	[insert name of Potential Lender] 

  

	Re:	Chaucer Holdings Plc - £90,000,000 facility agreement dated [•] (the “Facility”) 

 

	Company:	        (the “Company”) 

 Date: 
 Facility Agent: 
 Dear Sirs 
 We understand that you are considering participating in the Facility. In consideration
of us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows: 
  

	1.	CONFIDENTIALITY UNDERTAKING 

 You undertake: 
  

	1.1	to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by paragraph 2 below and to ensure that all
Confidential Information is protected with security measures and a degree of care that would apply to your own confidential information; 

  

	1.2	to keep confidential and not disclose to anyone except as provided for by paragraph 2 below the fact that the Confidential Information has been made available or that
discussions or negotiations are taking place or have taken place between us in connection with the Facility; 

  

	1.3	to use the Confidential Information only for the Permitted Purpose; and 

  

	1.4	to use all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless disclosed under paragraph 2.2 below) acknowledges and
complies with the provisions of this letter as if that person were also a party to it; [and 

  

	1.5	not to make enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the
Facility. 

  

	2.	PERMITTED DISCLOSURE 

 We
agree that you may disclose such Confidential Information and those matters referred to in paragraph 1.2 above: 
  

	2.1	to members of the Participant Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any
auditors of members of the Participant Group; 

  
 111

	2.2	where: 

  

	 	(a)	requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body; 

 

	 	(b)	required by the rules of any stock exchange on which the shares or other securities of any member of the Participant Group are listed; or 

 

	 	(c)	required by the laws or regulations of any country with jurisdiction over the affairs of any member of the Participant Group; or 

 

	2.3	with the prior written consent of us and the Company. 

  

	3.	NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE 

 You agree (to the extent permitted by law and except where disclosure is to be made to any competent supervisory or regulatory body during the ordinary course of its supervisory or regulatory function
over you) to inform us of the full circumstances of any disclosure under paragraph 2.2 above or upon becoming aware that Confidential Information has been disclosed in breach of this letter. 

 

	4.	RETURN OF COPIES 

 If we
so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase (to the extent technically practicable) all copies of Confidential Information made by you and use all reasonable endeavours
to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases (to the extent technically practicable) such Confidential Information and any copies made by them, in each case save to the extent that you
or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with internal policy, or where the
Confidential Information has been disclosed under paragraph 2.2 above. 
  

	5.	CONTINUING OBLIGATIONS 

The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between
you and us. Notwithstanding the previous sentence, the obligations in this letter shall cease on the earlier of: 
  

	 	(a)	the date you become a party to or otherwise acquire (by assignment, sub participation or otherwise) an interest, direct or indirect in the Facility; and

  

	 	(b)	12 months after you have returned all Confidential Information supplied to you by us and destroyed or permanently erased [to the extent technically practicable] all
copies of Confidential Information made by you (other than such Confidential Information or copies which have been disclosed under paragraph 2 above (other than paragraph 2.1) or which, pursuant to paragraph 4 above, are not required to be returned
or destroyed); and 

  

	 	(c)	36 months from the date of this letter. 

  

	6.	NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC. 

 You acknowledge and agree that: 
  

	6.1	neither we nor any of our officers, employees or advisers (each a “Relevant Person”): 

 

	 	(a)	make any representation or warranty, express or implied, as to, or assume any responsibility for, the accuracy, reliability or completeness of any of the Confidential
Information or any other information supplied by us or any member of the Group or the assumptions on which it is based; or 

  
 112

	 	(b)	shall be under any obligation to update or correct any inaccuracy in the Confidential Information or any other information supplied by us or any member of the Group or
be otherwise liable to you or any other person in respect of the Confidential Information or any such information; and 

  

	6.2	we or members of the Group may be irreparably harmed by the breach of the terms of this letter and damages may not be an adequate remedy; each Relevant Person or member
of the Group may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you. 

  

	7.	NO WAIVER; AMENDMENTS, ETC. 

 This letter sets out the full extent of your obligations of confidentiality owed to us in relation to the information the subject of this letter. No failure or delay in exercising any right, power or
privilege under this letter will operate as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any other right. power or privileges under this letter.
The terms of this letter and your obligations under this letter may only be amended or modified by written agreement between us. 
  

	8.	INSIDE INFORMATION 

 You acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation
[including securities law]4 relating to insider dealing
and market abuse and you undertake not to use any Confidential Information for any unlawful purpose. 
  

	9.	NATURE OF UNDERTAKINGS 

The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part) are also
given for the benefit of the Company and each other member of the Group. 
  

	10.	THIRD PARTY RIGHTS 

  

	10.1	Subject to paragraphs 6 and 9, the terms of this letter may be enforced and relied upon only by you and us and the operation of the Contracts (Rights of Third Parties)
Act 1999 is excluded. 

  

	10.2	Notwithstanding any provisions of this letter, the parties to this letter do not require the consent of any Relevant Person or any member of the Group to rescind or
vary this letter at any time. 

  

	11.	GOVERNING LAW AND JURISDICTION 

 This letter (including the agreement constituted by your acknowledgement of its terms) and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in
accordance with the laws of England and the parties submit to the non-exclusive jurisdiction of the English courts. 
  

 

	4 	 Insert if relevant. 

  
 113

	12.	DEFINITIONS 

 In this
letter (including the acknowledgement set out below): 
 “Confidential Information” means
any information relating to the Company, the Group and/or the Facility [including, without limitation, the information memorandum)]5 provided to you by us or any of our affiliates or advisers, in whatever form, and includes information given orally and
any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that: 

 

	 	(a)	is or becomes public information other than as a direct or indirect result of any breach of this letter; or 

 

	 	(b)	is known by you before the date the information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you after that date, other
than from a source which is connected with the Group and which, in either case, as far as you are aware, has not been obtained in violation of, and is not otherwise subject to, any obligation of confidentiality. 

“Group” means the Company and each of its holding companies and subsidiaries and each subsidiary of each of its holding
companies (as each such term is defined in the Companies Act 2006). 
 “Participant Group” means you, each of
your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such term is defined in the Companies Act 2006). 
 “Permitted Purpose” means considering and evaluating whether to enter into the Facility. 
 Please acknowledge your agreement to the above by signing and returning the enclosed copy. 
  

	
	Yours faithfully
	
	  
	 For and on behalf of

[Transferring Lender]

  

	5 	 Insert if relevant. 

  
 114

	To:	[Transferring Lender] 

	 	The Company and each other member of the Group 

  

	
	We acknowledge and agree to the above:
	
	  
	 For and on behalf of

[Potential Lender]

  
 115

 SCHEDULE 12 
 Form of Facility Extension Notice 
 Facility Extension Notice (number:
[...]) 
  

	To:	Lloyds TSB Bank plc (the “Facility Agent”) 

  

	From:	Chaucer Holdings plc (the “Account Party”) 

  

	Dated:	[•] 

 Dear Sirs 

Chaucer Holdings plc –£90,000,000 Facility Agreement 

dated [•] 2010 (as amended from time to time, the “Facility Agreement”) 

 

	1.	We refer to the Facility Agreement and in particular clause 7 (Extension of the Facility) of the Facility Agreement. Terms defined in the Facility Agreement have the
same meaning when used in this Facility Extension Notice. 

  

	2.	We have agreed with the following institutions (the “Facility Extension Lenders”) that they commit a Facility Extension Amount as follows:

  

					
	 Name of Facility Extension Lender
	  	Existing Lender (yes/no)	  	Facility Extension Amount (£)
		  		  	
		  		  	
		  		  	
	 TOTAL:
	  		  	

  

	3.	The date on which the Facility Extension Amounts referred to above are to become effective (the “Facility Extension Amount Date”) is [•].

  

	4.	[insert any other relevant matters referred to in clause 7 (Extension of the Facility)]. 

 

	
	Yours faithfully
	
	  
	 [Authorised Signatory]
 For
and on behalf of Chaucer Holdings plc

  
 116

 SIGNATURES 
 THE ACCOUNT PARTY 
 CHAUCER HOLDINGS PLC 

 

			
	 By:
	  	K.D. Curtis
	 Address:
	  	Plantation Place
		  	30 Fenchurch Street
		  	London
		  	EC3M 3AD
	 Fax:
	  	+44 (0)207 397 9710
	 Attention:
	  	Company Secretary

 THE ORIGINAL GUARANTORS 
 CHAUCER CORPORATE CAPITAL (NO. 2) LIMITED 
  

			
	 By:
	  	K.D. Curtis
	 Address:
	  	Plantation Place
		  	30 Fenchurch Street
		  	London
		  	EC3M 3AD
	 Fax:
	  	+44 (0)207 397 9710
	 Attention:
	  	Company Secretary

 CHAUCER CORPORATE CAPITAL (NO. 3) LIMITED 

 

			
	 By:
	  	K.D. Curtis
	 Address:
	  	Plantation Place
		  	30 Fenchurch Street
		  	London
		  	EC3M 3AD
	 Fax:
	  	+44 (0)207 397 9710
	 Attention:
	  	Company Secretary

 THE ARRANGERS 
 BARCLAYS BANK PLC 
  

			
	 By:
	  	John French
	 Address:
	  	1 Churchill Place
		  	London
		  	E14 5HP
	 Fax:
	  	+44 (0)207 116 6919
	 Attention:
	  	John French

 LLOYDS TSB BANK PLC 
  

			
	 By:
	  	Ian Baggott
	 Address:
	  	25 Gresham Street
		  	London
		  	EC2V 7HN
	 Fax:
	  	+44 (0)207 661 4790
	 Attention:
	  	Mark Jackson

 THE ROYAL BANK OF SCOTLAND PLC 
  

			
	 By:
	  	Jamie Mehmood
	 Address:
	  	280 Bishopsgate
		  	London
		  	EC2M 4RB
	 Fax:
	  	+44 (0)207 672 1073
	 Attention:
	  	David Weaver

  
 117

 THE BOOKRUNNER 
 LLOYDS TSB BANK PLC 
  

			
	 By:
	  	Ian Baggott
	 Address:
	  	Lloyds TSB Bank plc
		  	CityMark
		  	150 Fountainbridge
		  	Edinburgh EH3 9PE
	 Fax number:
	  	+44 (0)207 1583204
	 Attention:
	  	Wholesale Loans Servicing Agency Operations

 For Non Operational Matters (such as documentation; covenant compliance; amendments and waivers etc): 

 

			
	 Address:
	  	Lloyds TSB Bank plc
		  	10 Gresham Street
		  	London EC2V 7AE
	 Fax Number:
	  	+44 (0)207 1583198
	 Attention:
	  	Wholesale Loans Agency

  
 118

 THE OVERDRAFT PROVIDER 
 LLOYDS TSB BANK PLC 
  

			
	 By:
	  	Ian Baggott
	 Address:
	  	Lloyds TSB Bank plc
		  	CityMark
		  	150 Fountainbridge
		  	Edinburgh EH3 9PE
	 Fax number:
	  	+44 (0)207 1583204
	 Attention:
	  	Wholesale Loans Servicing Agency Operations

 For Non Operational Matters (such as documentation; covenant compliance; amendments and waivers etc): 

 

			
	 Address:
	  	Lloyds TSB Bank plc
		  	10 Gresham Street
		  	London EC2V 7AE
	 Fax Number:
	  	+44 (0)207 1583198
	 Attention:
	  	Wholesale Loans Agency

 THE FACILITY AGENT 
 LLOYDS TSB BANK PLC 
  

			
	 By:
	  	Ian Baggott
	 Address:
	  	Lloyds TSB Bank plc
		  	CityMark
		  	150 Fountainbridge
		  	Edinburgh EH3 9PE
	 Fax number:
	  	+44 (0)207 1583204
	 Attention:
	  	Wholesale Loans Servicing Agency Operations

 For Non Operational Matters (such as documentation; covenant compliance; amendments and waivers etc): 

 

			
	 Address:
	  	Lloyds TSB Bank plc
		  	10 Gresham Street
		  	London EC2V 7AE
	 Fax Number:
	  	+44 (0)207 1583198
	 Attention:
	  	Wholesale Loans Agency

 THE SECURITY AGENT 
 LLOYDS TSB BANK PLC 
  

			
	 By:
	  	Ian Baggott

 For Operational Duties (such as Utilisation Requests, Interest Rate Fixing, Interest/fee calculations and payments):

  

			
	 Address:
	  	Lloyds TSB Bank plc
		  	CityMark
		  	150 Fountainbridge
		  	Edinburgh EH3 9PE
	 Fax number:
	  	+44 (0)207 1583204
	 Attention:
	  	Wholesale Loans Servicing Agency Operations

 For Non Operational Matters (such as documentation; covenant compliance; amendments and waivers etc): 

 

			
	 Address:
	  	Lloyds TSB Bank plc
		  	10 Gresham Street
		  	London EC2V 7AE
	 Fax Number:
	  	+44 (0)207 1583198
	 Attention:
	  	Wholesale Loans Agency

  
 119

 THE ORIGINAL LENDERS 
 BARCLAYS BANK PLC 
  

			
	 By:
	  	John French
	 Address:
	  	1 Churchill Place
		  	London
		  	E14 5HP
	 Fax:
	  	+44 (0)207 116 6919
	 Attention:
	  	John French

 LLOYDS TSB BANK PLC 
  

			
	 By:
	  	Ian Baggott
	 Address:
	  	25 Gresham Street
		  	London
		  	EC2V 7HN
	 Fax:
	  	+44 (0)207 661 4790
	 Attention:
	  	Mark Jackson

 THE ROYAL BANK OF SCOTLAND PLC 
  

			
	 By:
	  	Jamie Mehmood
	 Address:
	  	3rd Floor
		  	280 Bishopsgate
		  	London
		  	EC2M 4RB
	 Fax:
	  	+44 (0)20 7672 1067
	 Attention:
	  	David Weaver

  
 120

 CONFORMED COPY 
 AMENDMENT LETTER 
  

	To:	Chaucer Holdings plc 

	 	Plantation Place 

	 	30 Fenchurch Street 

	 	London 

	  	EC3M 3AD 

  

	Attn:	The Company Secretary 

  

	Dated:	28 February 2011 

 Dear Sirs 

£90,000,000 letter of credit facility agreement dated 29 November 2010 between, among others, Chaucer Holdings plc as the account party,
Barclays Bank PLC, Lloyds TSB Bank plc and The Royal Bank of Scotland plc as mandated lead arrangers and Lloyds TSB Bank plc as bookrunner, facility agent and security agent (the “Facility Agreement”) 

 

	1.	INTRODUCTION 

  

	1.1	We refer to the Facility Agreement. Unless a contrary indication appears, a term defined in the Facility Agreement (as the context requires) has the same meaning when
used in this letter and in this letter “Effective Date” means the date on which the Facility Agent notifies the Account Party that it has received this letter duly signed by the Account Party as Obligors’ Agent on behalf of
itself and each other Obligor. 

  

	1.2	The Facility Agent acting on the instructions of the Majority Lenders, has agreed to make certain amendments to the Facility Agreement in the terms set out in this
letter. 

  

	1.3	Except as varied by the terms of this letter, the Facility Agreement will remain in full force and effect and any reference in any Finance Document to the Facility
Agreement or to any provision therein will be construed as a reference to the Facility Agreement as amended by this letter. 

  

	2.	AMENDMENTS TO THE FACILITY AGREEMENT 

  

	2.1	With effect from the Effective Date the Facility Agreement shall be amended as set out in this paragraph 2.1. 

 

	 	(a)	The following shall be inserted as a new definition into clause 1.1 (Definitions): 

““Deed of Priority” means the deed of priority dated February 2011 between the Security Agent, the Account Party
and Lloyd’s;” 
  

	 	(b)	The definition of Finance Document in clause 1.1 (Definitions) shall be deleted and replaced with the following: 

““Finance Document” means this agreement, any Fee Letter, any Accession Letter, any Resignation Letter, the
Security Documents, the Deed of Priority and any other document designated as such by the Facility Agent and the Account Party;” 

  
 1 

	 	(c)	The following clause shall be inserted into clause 26 (Events of Default) as sub-clause 26.23: 

“Deed of Priority 
 (a) Any party to the Deed of Priority (other than the Security Agent) does not comply with any provision of the Deed of Priority. 
 (b) No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier of: 

 

	 	(i)	the Facility Agent giving notice to the Account Party; and 

  

	 	(ii)	an Obligor becoming aware of the failure to comply. 

 (c) The Deed of Priority or any obligation of a party (other than the Security Agent) thereunder is not or ceases to be in full force and effect or is alleged by any such party to be ineffective for any
reason.” 
 and Clause 26.23 (Acceleration and Cancellation) shall be renumbered to 26.24 and all consequential changes in
respect of such amendment, including any amendments to cross-references, to any Finance Document shall be made. 
  

	3.	EFFECTIVE DATE 

  

	3.1	The Facility Agent will notify the other Parties to the Facility Agreement promptly when the Effective Date occurs. 

 

	3.2	If the Effective Date has not occurred by 28 February 2011 (or any later date which the Facility Agent and the Account Party may agree), then paragraph 2
(Amendments to the Facility Agreement) will lapse and none of the amendments recorded in paragraph 2 (Amendments to the Facility Agreement) will take effect. 

 

	4.	CONFIRMATIONS 

  

	4.1	Each Guarantor confirms, that with effect from (and including) the Effective Date, the guarantees and indemnities set out in clause 21 (Guarantee and Indemnity) of the
amended Facility Agreement shall apply and extend to the obligations of each Obligor under the Finance Documents. 

  

	4.2	Each Obligor confirms that all of its liabilities and obligations arising under the Facility Agreement (as amended) form part of (but do not limit) the
“Indebtedness” or “Secured Obligations” (as each term is defined in the Security Documents to which that Obligor is a party). 

 

	5.	MISCELLANEOUS 

  

	5.1	This letter is designated as a Finance Document. 

  

	5.2	This letter may be executed in counterparts all of which will, when read together, constitute one and the same document. 

 

	5.3	This letter (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this letter) shall be governed by English
law and the Account Party submits to the jurisdiction of the English courts in the terms set out in clause 44 (Enforcement) of the Facility Agreement. 

  
 2 

	
	
	Signed by Ian Baggott
	 for and on behalf of

the Facility Agent on behalf of the Majority Lenders

  

	
	
	Signed by Ian Baggott
	 for and on behalf of
 the
Security Agent

  

	
	We agree to the terms of this letter
	
	Signed by K.D. Curtis
	 for and on behalf of

Chaucer Holdings plc
 for itself and as
Obligors’ Agent on behalf of each Obligor

  
 3

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