Document:

pledgeagmt

PLEDGE AGREEMENT

PLEDGE AGREEMENT, dated as of March 13, 2003 between AMSOUTH BANK (the "Bank") and CHYRON CORPORATION (the "Pledgor").

WHEREAS, AMSOUTH INVESTOR SERVICES, INC. (the "Securities Intermediary") maintains a securities account, account No. 010-794-627, on behalf of and in the name of the Pledgor (the "Securities Account"); and

WHEREAS, the Pledgor is the owner of certain readily marketable shares of stock, readily marketable indebtedness and cash and cash equivalents contained in the Securities Account; and

WHEREAS, the Bank has made and from time to time may make loans or otherwise extend credit to the Pledgor or to other third parties guaranteed by the Pledgor and in connection therewith Pledgor hereby pledges and grants to the Bank a security interest in the Collateral described below; and

WHEREAS, the Bank, the Pledgor and the Securities Intermediary will enter into an agreement (the "Control Agreement") for the purpose of perfecting the security interest granted by the Pledgor to the Bank as contemplated by this Agreement; and

WHEREAS, each of the parties hereto desires to take such other actions as may be necessary or desirable so that the Bank will have a first priority perfected security interest in the Collateral.

NOW THEREFORE, in consideration of the premises contained herein the parties hereto hereby agree as follows:

	As security for each and every liability, direct or contingent, joint, several, or independent of the Pledgor, or guaranteed by the Pledgor, now or hereafter existing, due or to become due to, or held or to be held by, the Bank, whether created directly or acquired by assignment or otherwise (herein collectively called the "Liabilities;" which term shall also include all expenses, including without limitation, reasonable attorneys' fees, incurred by the Bank in enforcing or collecting any of the Liabilities), in addition to any collateral security in which the Bank has previously been or hereafter is granted a security interest, the Pledgor hereby pledges and assigns to the Bank and grants to the Bank a security interest in, the following property owned by the Pledgor (collectively referred to herein as the "Collateral"):

(i)the Securities Account; 

(ii) any and all free credit balance or other money, now or hereafter credited to, or owing from the Securities Intermediary to the Pledgor in respect of the Securities Account;

(iii) any and all money, securities (certificated or uncertificated), security entitlements, commodity contracts, instruments, documents, general intangibles, financial assets and/or other investment property, identified and/ or associated with, and/or contained in and/or distributed from the Securities Account;

(iv) all books and records relating to any of the foregoing and/or the Securities Account;

(v)  all the proceeds of the sale, exchange, redemption or exercise of any of the foregoing thereof, including, but not limited to, any dividend, interest payment or other distribution of cash or property in respect thereof; and

(vi) any rights incidental to the ownership of any of the foregoing, such as voting, conversion and registration rights and rights of recovery for violations of applicable securities laws. 

	The Pledgor may with the prior consent of the Bank (to be exercised in its sole and absolute discretion) in each instance substitute for any Collateral other marketable securities of like kind and equivalent value and quality (in the sole determination of the Bank) to the Collateral for which substitution is being made.  All additional and/or substituted securities shall be accompanied by proper instruments of assignment and/or stock and/or bond powers executed by the Pledgor in accordance with the instructions of the Bank.  Collateral released by the Bank shall be redelivered to the Pledgor or transferred to the Pledgor's unpledged account by the Bank and be accompanied by proper instruments of reassignment and/or stock and/or bond powers (as appropriate) executed by the Bank (or its nominee) in favor of the Pledgor or as the Pledgor shall direct, all at the expense of the Pledgor and without recourse to or warranty by the Bank or any nominee.  

	(a)The Bank shall have the right, at any time and from time to time, without notice, to (i) transfer into its own name or that of its nominee any of the Collateral (provided the Bank shall not have the right to exercise voting rights with respect to Collateral prior to an Event of Default); (ii) notify any obligor on any of the Collateral to make payment to the Bank of any amounts due thereon, and/or (iii) take control of any proceeds of any of the Collateral.  Furthermore, any and all stock and/or liquidating dividends, distributions in property, returns of capital or other distributions made on or in respect of the Collateral, whether resulting from a subdivision, combination or reclassification of the outstanding capital stock of any issuer thereof or received in exchange for Collateral or any part thereof or as a result of any merger, consolidation, acquisition or other exchange of assets to which any such issuer may be a party or otherwise, and any and all cash and other property received in payment of the principal of or in redemption of or in exchange for any Collateral (whether at maturity, upon call for redemption or otherwise), shall be and become part of the Collateral and, if received by the Pledgor, shall forthwith be delivered to the Bank or its designated agent (accompanied by proper instruments of assignment and/or stock and/or bond powers executed by the Pledgor in accordance with the Bank's instructions) to be held subject to the terms of this Agreement.

(b)Upon the occurrence and during the continuance of an Event of Default (as hereinafter defined) or any event which with the giving of notice or the lapse of time or both would constitute an Event of Default, all rights of the Pledgor to exercise the voting and/or consensual rights and powers which it is entitled to exercise pursuant to this Agreement and/or to receive the dividends and interest payments which it is authorized to receive and retain pursuant to this Agreement shall cease, and all such rights shall thereupon become vested in the Bank which shall have the sole and exclusive right and authority to exercise such voting and/or consensual rights and powers and/or to receive and retain the dividends and/or interest payments which the Pledgor would otherwise be authorized to retain pursuant to this Agreement.  Any and all money and other property paid over to or received by the Bank pursuant to the provisions of this subsection shall be retained by the Bank as additional collateral hereunder and be applied in accordance with the provisions hereof.

	Each of the following events (each an "Event of Default") shall constitute an event of default hereunder.

(a)The failure of Pledgor or any other party liable thereon to pay when due any of the Liabilities;

(b)Any representation or warranty made by the Pledgor in this Agreement or in any certificate, agreement, instrument or statement contemplated hereby or made or delivered pursuant hereto or in connection herewith or any Liability shall prove to be incorrect in any material respect;

(c)The Pledgor or any other person obligated in connection with the Liabilities shall (i) fail to perform or observe any other term, covenant or agreement contained in this Agreement or any other agreement with the Bank on its part to be performed or observed or any other agreement with any other third party, or (ii) an "Event of Default" shall have occurred under and as defined in that certain loan agreement dated as of March 29, 1999 between the Pledgor and the Bank (as them same has been, or may hereafter be, amended, modified, supplemented or replaced from time to time), or (iii) be in default under any other document, instrument or agreement with the Bank or any other third party;

(d)This Agreement shall at any time for any reason cease to be in full force and effect or shall be declared to be null and void, or the validity or enforceability thereof shall be contested by the Pledgor or any member of the Pledgor, or the Pledgor shall deny that it has any or further liability or obligation hereunder; 

(f)If the Bank determines in its reasonable discretion that the Collateral threatens to decline speedily in value; or

(g)  The Bank for any reason deems itself insecure.

	(a)If an Event of Default shall have occurred and be continuing, then in addition to exercising any rights and remedies of a secured party under the Uniform Commercial Code in effect in the State of New York (such Uniform Commercial Code as it may be amended, supplemented, replaced, or modified form time to time, is referred to herein as the "Code"), and in addition to exercising any rights and remedies set forth in any agreement heretofore or hereafter made by the Pledgor with the Bank, the Bank shall have the right from time to time, without advertisement or demand upon or notice to the Pledgor or others or right of redemption except as shall be required by applicable statute and cannot be waived, at its option to sell, re-sell, assign, transfer and deliver all or any part of the Collateral at any brokers' board or exchange or at public or private sale, for cash or on credit or for future delivery, and in connection therewith may grant options and may impose reasonable conditions such as requiring any purchaser of any stock so sold to represent that such stock is purchased for investment purposes only.  Upon each such sale the Bank, unless prohibited by provision of any applicable statute which may not be waived, may purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of the Pledgor.

(b)In case of any sale by the Bank of any of the Collateral on credit or for future delivery, the property sold may be retained by the Bank until the selling price is paid by the purchaser, but the Bank shall incur no liability in case of failure of the purchaser to take up and pay for the property so sold.  In case of any such failure, the property so sold may be again similarly sold.

(c)After deducting all costs and/or expenses of every kind, the Bank may apply the residue of the proceeds of any sale or sales to pay any or all of such Liabilities, whether then due or not, making proper rebate for interest on Liabilities not then due.

	Neither the Bank, nor any director, officer or employee of the Bank, shall be liable to the Pledgor for any action taken or omitted to be taken by it or them hereunder or in connection herewith, except for its or their own gross negligence or willful misconduct; nor shall the Bank be responsible for the validity, effectiveness or sufficiency hereof or of any document or security furnished pursuant hereto or in connection herewith.  The Bank shall be entitled to rely on any communications, instrument or document believed by it to be genuine and correct and to have been signed or sent by the proper person or persons.  The Pledgor agrees to indemnify and hold harmless the Bank, and/or agents of the Bank, from and against any and all liability incurred by the Bank (or such agent) hereunder or in connection herewith, unless such liability shall be due to willful misconduct or gross negligence on the part of the Bank or such agent.

	The Pledgor hereby appoints the Bank the Pledgor's attorney-in-fact for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instrument which it may deem necessary or advisable to accomplish the purpose hereof, which appointment is irrevocable and coupled with an interest.  Without limiting the generality of the foregoing, the Bank shall have the right and power at any time (whether before or after any of such Liabilities of the Pledgor become due and payable as provided in any agreement of the Pledgor with the Bank), whenever deemed necessary or desirable by the Bank, for and in the name, place and stead of the Pledgor, to execute endorsements, assignments or other instruments of conveyance or transfer of any of all of the Collateral and to receive, endorse and collect all checks and other orders for the payment of money made payable to the Pledgor representing any dividend, interest payment or other distribution payable or distributable in respect of the Collateral or any part thereof and to give full discharge for the same, by signing the name of the Pledgor alone or by signing as attorney in fact of the Pledgor.

	The Bank shall have no responsibility for ascertaining any maturities, calls, conversions, exchanges, offers, tenders or similar matters relating to any of the  Collateral, nor for informing the Pledgor with respect to any thereof (whether or not the Bank has, or is deemed to have, knowledge); and the Bank shall not be required to take any action with respect to any thereof, provided that the Bank shall endeavor to take such action as may be requested or authorized by the Pledgor if the Bank determines in its sole discretion, that such action will not adversely affect the value as collateral of the Collateral in question and the relative request or authorization is made in writing and is received by the Bank in due time.

	The Bank shall not be bound to take any steps necessary to preserve any rights in any of the Collateral against prior parties who may be liable in connection therewith, and the Pledgor hereby agrees to take such steps.  The Bank may nevertheless at any time (a) take any action it may deem appropriate for the care or preservation of such property or of any rights of the Pledgor or the Bank therein, (b) demand, sue for, collect or receive any money or property at any time due, payable or receivable on account of or in exchange for any Collateral, (c) compromise and settle with any person liable on such property, and/or (d) extend the time of payment or otherwise change the terms of the Liabilities, as to any party liable thereon, all without notice to, without incurring responsibility to, and without affecting any of the Liabilities or any obligations of the Pledgor hereunder.

	The Pledgor shall pay to the Bank all costs and expenses, including filing fees and attorneys' fees, incurred by the Bank in connection with the custody, care, preservation or collection of the Collateral or in seeking to enforce any of the Liabilities or obligations of the Pledgor hereunder.

	This Agreement is binding upon the Pledgor and the executors, administrators, successors and assigns of the Pledgor.  If the Pledgor is more than one, the term "Pledgor" herein shall mean the Pledgor or any one or more of them.

	The Pledgor waives notice of acceptance of this Agreement and notice of any liability to which it may apply, and waives presentment, notice of payment, protest, notice of dishonor or nonpayment of any Liabilities, or of any suit or the taking of other action by the Bank against, and any other notice to, any party liable thereon.

	None of the terms or conditions of this Agreement may be changed, waived, modified or varied in any manner whatever unless in a writing duly signed on behalf of the Bank; and each such waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair the rights of the Bank or the obligations of the Pledgor to the Bank in any other respect at any other time.

	No invalidity, irregularity or unenforceability of the Liabilities hereby secured shall affect, impair or be a defense to any agreement herein contained.  In the event that the Pledgor is a partnership or limited liability company, this Agreement shall continue in effect and apply to all Liabilities of the Pledgor and successor partnership(s), or limited liability company(ies), as the case may be, from time to time incurred or accruing before or after any dissolution, termination or changes in personnel of the Pledgor and/or any successor partnership(s), or limited liability company(ies), as the case may be.

	The Pledgor represents and warrants that: (i) the Pledgor is the sole owner of the Collateral, (ii) the Pledgor has not created and is not aware of any security interest, lien or encumbrance on or affecting the Collateral other than that created hereby, and (iii) the transfer of the Collateral does not result in the insolvency of the Pledgor.

	This Agreement and the rights and obligations of the Bank and of the Pledgor shall be governed by and construed in accordance with the laws of the State of New York.  Unless otherwise defined herein or unless the context clearly indicates otherwise, all terms used herein that are defined under the Code shall have their respective meanings under such Code.

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IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed and delivered by their proper and duly authorized officer as of the day and year first above written.

CHYRON CORPORATION

/s/ Michael Wellesley-Wesley

Name:  Michael Wellesley-Wesley

Title:  Chief Executive Officer

AMSOUTH BANK

/s/ Barry S. Renow

Name:  Barry S. Renow

Title: Attorney-in-Fact

 

ATTACHMENT TO

UCC FINANCING STATEMENT OF

CHYRON CORPORATION (the "DEBTOR")

IN FAVOR OF AMSOUTH BANK

SCHEDULE OF COLLATERAL

 

(i)  securities account No. 010-794-627 in the name of the Debtor (the "Securities Account") maintained with AMSOUTH INVESTOR SERVICES, INC. (the "Securities Intermediary"); and

(ii)   any and all free credit balance or other money, now or hereafter credited to, or owing from the Securities Intermediary to the Pledgor in respect of the Securities Account;

(iii) any and all money, securities (certificated or uncertificated), security entitlements, commodity contracts, instruments, documents, general intangibles, financial assets and/or other investment property, identified and/ or associated with, and/or contained in and/or distributed from the Securities Account;

(iv)   all books and records relating to any of the foregoing and/or the Securities Account;

(v)    all the proceeds of the sale, exchange, redemption or exercise of any of the foregoing thereof, including, but not limited to, any dividend, interest payment or other distribution of cash or property in respect thereof; and

(vi)   any rights incidental to the ownership of any of the foregoing, such as voting, conversion and registration rights and rights of recovery for violations of applicable securities laws.28 February 2003

28 February 2003

The Directors

Chyron UK Holdings Limited

Pro-Bel Limited

Danehill

Lower Earley

Reading

Berkshire

RG6 4PB

 

 

Barclays Bank PLC ("the Bank") is pleased to offer an overdraft facility ("the Facility") up to a gross limit of 2,000,000 (two million pounds sterling) and a net limit of 2,000,000 (two million pounds sterling) to Chyron UK Holdings Limited ("the Parent") and its subsidiaries named below.  The Parent and each such subsidiary named below (including any additional subsidiary admitted under paragraph 8 below) are referred to individually as a "Borrower" and collectively as the "Borrowers".

After completion of the acceptance formalities specified in paragraph 14 below, the Facility will be available for drawing by the Borrowers, subject to the terms and conditions stated below.

1.The Facility

The Facility will be available under the Composite Accounting System ("CAS") in accordance with a Composite Accounting Agreement made between the Borrowers and the Bank, subject to the sub-limits stated below.  Interest will be chargeable at a margin of 2.25% per annum over the Bank's Base Rate current from time to time.  Interest will be calculated on the net indebtedness for the time being owing by the Borrowers under the Facility (after deduction of any credit balances on the CAS Accounts).

Accrued interest will be debited to the relevant CAS Accounts quarterly in arrear on the Bank's normal quarterly charging dates in March, June, September and December of each year, or at such other times as may be determined by the Bank.  Interest will accrue from day to day (after as well as before judgment) and be calculated on the basis of actual days elapsed over a 365 day year (or on such other day count basis as the Bank considers is consistent with the then applicable market practice for facilities of this kind).

2.Facility Limits

The gross indebtedness owing by the Borrowers under the Facility (before deduction of any credit balances on the CAS Accounts) shall not at any time exceed the gross facility limit stated above and the net indebtedness owing by the Borrowers under the Facility (after deduction of any such credit balances) shall not at any time exceed the net facility limit stated above.

Each Borrower may utilise the Facility only up to the amount of the individual sub-limit stated below opposite its name:

	
Name of Borrower:
	
Sub-Limit: (pounds sterling)

	 	 
	
Pro-bel Limited
	
2,000,000

	 	 
	
Ancillary Limits
	 
	 	 
	
Company Barclaycard limit
	
150,000

	
Bonds Guarantees & Indemnities Limit
	
500,000

	
BACS facility
	
250,000

	
BusinessMaster facility
	
100,000

	 	 

 

3.Availability

All money owing by each Borrower under the Facility is repayable upon written demand by the Bank at any time.  Any undrawn amount of the Facility may be cancelled by the Bank at any time.  After such demand or cancellation, no further drawing may be made by any Borrower under the Facility.

Any money not paid following a demand under this paragraph shall continue to carry interest as calculated in accordance with paragraph 1.  Interest shall, if unpaid, be compounded on the Bank's normal quarterly charging dates. Interest will continue to be charged and compounded on this basis after as well as before judgment.

The Borrowers jointly and severally agree to indemnify the Bank on demand against any loss or expense which the Bank may sustain or incur as a consequence of any such cancellation or demand or any default or delay by a Borrower in the payment of any amount when due under this facility letter.

In the absence of demand or cancellation by the Bank, the Facility is available for utilisation until 31 December 2003 ("the Review Date").  The Bank will be pleased to discuss the Borrowers' future requirements shortly before the Review Date and the Facility may continue for a further period if expressly agreed in writing by the Bank (in its entire discretion without any obligation to do so).

The rights of set-off conferred on the Bank by each Borrower under the CAS Agreement and the CAS Guarantee to which it is a party may be exercised by the Bank without the Bank first making a demand for payment of any liability represented by the debit balance which is to be satisfied by the exercise of such right.  The amount for the time being standing to the debit or credit of each CAS Account will be treated, for all purposes of such CAS Agreement and each such CAS Guarantee, as immediately due and payable.

4.CAS Accounts

Each Borrower represents and warrants to the Bank that it is and will remain the beneficial owner of all amounts for the time being standing to the credit of its CAS Account with the Bank.  Each Borrower also undertakes that it will not at any time assign, charge or otherwise alienate or encumber any of its rights to such amounts (except in favour of the Bank) or permit any charge or other encumbrance to subsist over such rights.

5.Security

The Borrower's obligations hereunder will be secured by any security which is now held, or hereafter may be held, by the Bank to secure all moneys and liabilities  which shall from time to time be due, owing or incurred to the Bank by the Borrower, whether actually or contingently:

- Debenture on Bank standard form dated 18 February 1998 from Pro-bel Limited

- Debenture on Bank standard form dated 2 March 1979 from Chyron UK Holdings Limited

- Unlimited CAS Guarantees dated 27 March 1998 between Pro-bel Limited and Chyron UK Holdings Limited

- First legal charge on Bank standard form dated 28 August 1998 over premises at Danehill, Lower Earley, Reading in the name of Pro-bel Limited.

6.Information

The Parent undertakes to provide the Bank with:

- copies of its audited consolidated profit and loss account and balance sheet as soon as they are available and not later than 180 days from the end of each accounting reference period.

- copies of Quarterly Management Accounts for Chyron Corporation within 45 days of each quarter end.

- copies of Monthly Management Accounts for Chyron UK Holdings Limited/Pro-bel Limited within 30 days of each month end.

7.Change of Circumstances

In the event of any change in applicable law or regulation or in the existing requirements of, or any new requirements being imposed by, any central bank, governmental, fiscal, monetary, regulatory or other authority in any applicable jurisdiction (whether or not having the force of law) including, without limitation, any resulting from the introduction or operation of the euro, the result of which, in the sole opinion of the Bank, is to increase the cost (directly or indirectly) to it of funding, maintaining or making available amounts drawn under the Facility (or any undrawn  amount of the Facility) or to reduce the effective return to the Bank, then each Borrower shall pay to the Bank such sum as may be certified by the Bank to such Borrower as being necessary to compensate the Bank for such increased cost or such reduction.

8.Authority of Parent to agree changes to the composition of the Borrowers and to extend, renew and/or vary the Facility

By countersigning this facility letter, each Borrower (other than the Parent) irrevocably authorises the Parent (which is hereby appointed the agent of each Borrower for such purposes) from time to time (i) to agree with the Bank in writing to add any further subsidiary or subsidiaries as a Borrower or Borrowers, and/or (ii) to remove any subsidiary as a Borrower, and/or (iii) to extend or renew the Facility, or increase or reduce the limit and (if applicable) sub-limits and the interest margin applicable to the Facility and/or to vary the other terms applicable to the Facility as the Parent may determine,and/or (iv) to sign any document and perform any act on behalf of the Borrowers (or any of them) required to effect or implement any of the foregoing or to record or restate the terms for the time being applicable to the Facility (as extended or renewed if applicable).  Each change so agreed by the Parent shall be binding on each Borrower and the Bank may assume that all requisite approvals (if any) have been obtained by the Parent from the other Borrowers.  The authority hereby conferred on the Parent shall continue after the Review Date. The terms applicable to the Facility will continue in full force and effect, save as expressly amended thereby.

Any demand for payment or any other demand or notice to a Borrower may be sufficiently made or given by the Bank to such Borrower by posting it to or leaving it at the Parent's last known place of business or (at the Bank's option) at the Parent's registered office.

9.Admission of a New Participating Subsidiary

The admission of a new subsidiary ("a New Participating Subsidiary") shall take effect at the commencement of the fifth business day after the delivery to the Bank of the following documents in form and substance satisfactory to the Bank:

(a)an agreement supplemental to this facility letter signed by the Parent and the New Participating Subsidiary;

(b)an agreement supplemental to the CAS Agreement signed by the Parent and the New Participating Subsidiary, together with a CAS Guarantee signed by the New Participating Subsidiary and a CAS Guarantee signed by the Parent;

(c)a certified true copy of a resolution of the New Participating Subsidiary's Board of Directors:

(i)accepting the Facility on the terms and conditions stated herein, approving the terms of the documents referred to in sub-paragraphs (a) and (b) above to which the New Participating Subsidiary is a party and  authorising a specified person, or persons, to sign and return to the Bank each such document on its behalf;

(ii)authorising the Bank to accept instructions and confirmations in connection with the operation of the Facility signed in accordance with the Bank's mandate current from time to time;

(iii)appointing the Parent to act as agent of the New Participating Subsidiary for the purposes contemplated in paragraph 8 above and paragraph 13 below;

(d)a certified true copy of a resolution of the Parent's Board of Directors, approving the admission of the new Participating Subsidiary and approving the terms of the documents referred to in sub-paragraphs (a) and (b) above to which the Parent is a party and authorising a specified person, or persons, to sign and return to the Bank each such document on its behalf.

The Bank shall not be bound to admit a new subsidiary under the above procedure if the Bank considers that its admission might result in a breach of Section 151 of the Companies Act 1985 (prohibition of financial assistance by a company for acquisition of its own shares).

10.Fees and Expenses

An arrangement fee of 10,000 (pounds sterling) will be payable to the Bank on acceptance of this offer.

The Borrowers jointly and severally undertake to reimburse to the Bank on demand on a full indemnity basis (whether or not the Facility is utilised) all valuation and legal fees and other out-of-pocket expenses (including VAT), if any, incurred or chargeable by the Bank in connection with the valuation or revaluation of any security held by the Bank or the enforcement and preservation by the Bank of its rights under this facility letter (and the documents referred to herein) and the Bank may debit such fees and expenses to such accounts of the Borrowers with the Bank as the Bank may determine without further authority from the Borrowers.

11.Miscellaneous

If the UK moves to the third stage of EMU, the Bank shall be entitled to make such changes to this facility letter as it reasonably considers are necessary to reflect the changeover to the euro (including, without limitation, the rounding (up or down) of fixed monetary amounts to convenient fixed amounts in the euro and amending any provisions to reflect the market conventions for a facility of the kind contemplated in this facility letter).

12.Interpretation

In this facility letter:

(a)"business day" means a day (excluding Saturdays) on which the Bank is ordinarily open to effect transactions of the kind contemplated in this Facility Letter and, if a payment is to be made in euros, on which such payment system as the Bank chooses is operating for the transfer of funds for the same day value;

(b)"CAS Account" means an account of a Borrower with the Bank within a CAS arrangement for the time being in force between them;

(c)"EMU" means Economic and Monetary Union as contemplated in the Treaty establishing the European Community, as amended from time to time

(d)"euro" and "E" means the single currency of the participating Member States adopted under Council Regulation (EC) No 974/98;

(e)"indebtedness" includes any obligation for the payment or repayment of money, whether present or future, actual or contingent;

(f)"subsidiary" has the meaning attributed to the expression "subsidiary undertaking" in Section 258 of the Companies Act 1985;

(g)"UK" means the United Kingdom of Great Britain and Northern Ireland.

Reference to any statutory provision includes any amended, extended or re-enacted version of it with effect from the date on which it comes into force. Reference to this facility letter or any other document includes this facility letter or such document as amended, extended, supplemented or restated in any manner from time to time and/or any document which amends, extends, supplements or restates this facility letter or such document.

13.Governing Law 

This facility letter shall be governed by and construed in with English law.

14.Period for Acceptance of this Offer

This offer will remain available for a period of one month from the date of this facility letter, after which it will lapse if not accepted by the Borrowers.

15.Acceptance

Before the Facility may be utilised, the Parent shall provide the Bank with the following in form and substance satisfactory to the Bank:

(a)the enclosed duplicate of this facility letter, together with a CAS Agreement and a CAS Guarantee, duly signed on each Borrower's behalf;

(b)a certified true copy of a resolution of the Board of Directors of the Parent:

(i)accepting the Facility on the terms and conditions stated above and approving the terms of the CAS Agreement and the CAS Guarantee to be  given by  it;

(ii)authorising a specified person or persons to sign and return to the Bank the duplicate of this facility letter;

(iii)authorising the Bank to accept instructions in connection with the operation of the Facility signed in accordance with the Bank's signing mandate current from time to time;

(iv)accepting the appointment of the Parent as agent of the Borrowers for the purposes set out in paragraph 8 and paragraph 13 above; and

(c)a certified true copy of a resolution of the Board of Directors of each Borrower (except the Parent):

(i)accepting the Facility on the terms and conditions stated herein and approving the terms of the CAS Agreement and the CAS Guarantee to be given by it;

(ii)  authorising a specified person, or persons, to sign and return to the Bank the duplicate of this facility letter;

(iii) authorising the Bank to accept instructions in connection with the operation of the Facility signed in accordance with the Bank's signing mandate current from time to time;

(iv)appointing the Parent to act as agent of the Borrower for the purposes contemplated in paragraph 8 and paragraph 13 above.

 

Yours sincerely,

 

/s/ David Smith

David Smith  

Associate Director, Business Support

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