Document:

EX-4.28

Exhibit 4.28

EXECUTION VERSION

AMENDMENT AND RESTATEMENT AGREEMENT

Dated 26 June 2009

for

CASCAL N.V.

as the Borrower

arranged by

HSBC BANK PLC

as Arranger

and

HSBC BANK PLC

acting as Agent

and

HSBC BANK PLC

acting as Security Agent

and

HSBC BANK PLC

acting as Issuing Bank

RELATING TO A FACILITY AGREEMENT ORIGINALLY DATED 25 JUNE 2007, AS AMENDED AND RESTATED ON 2
NOVEMBER 2007, AS FURTHER AMENDED ON 19 NOVEMBER 2007, AS FURTHER AMENDED AND RESTATED ON 12 JUNE
2008 AND AS FURTHER AMENDED ON 23 FEBRUARY 2009

Ref: Philip Spittal/Nicholas Zaklama

Linklaters LLP

 

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	CLAUSE	 	 	 	PAGE	 
	 	 	 	 	 
	 	 	 	 
	 	1.	 	 	Definitions and interpretation
	 	 	1	 
	 	2.	 	 	Conditions precedent
	 	 	2	 
	 	3.	 	 	Representations
	 	 	2	 
	 	4.	 	 	Amendment and restatement
	 	 	2	 
	 	5.	 	 	Accession of Additional Borrower and Additional Guarantor
	 	 	3	 
	 	6.	 	 	Transaction expenses
	 	 	4	 
	 	7.	 	 	Fees
	 	 	4	 
	 	8.	 	 	Miscellaneous
	 	 	4	 
	 	9.	 	 	Governing law
	 	 	4	 

THE SCHEDULES

	 	 	 	 	 
	SCHEDULE	 	PAGE	 
	 
	 	 	 	 
	SCHEDULE 1 The Guarantors
	 	 	5	 
	SCHEDULE 2 Conditions Precedent
	 	 	6	 
	SCHEDULE 3 Form of Amended Agreement
	 	 	9	 

(i)

 

THIS AGREEMENT is dated
26 June 2009 and made between:

	(1)	 	CASCAL N.V. (“CNV”);
	 
	(2)	 	THE COMPANIES listed in Schedule 1 as guarantors (the “Guarantors”);
	 
	(3)	 	CASCAL INVESTMENTS (CHINA) LIMITED (“CICL”);
	 
	(4)	 	CASCAL HOLDINGS LIMITED (the “Additional Borrower”);
	 
	(5)	 	HSBC BANK PLC as mandated lead arranger (the “Arranger”);
	 
	(6)	 	HSBC BANK PLC as lender (the “Original Lender”);
	 
	(7)	 	HSBC BANK PLC as facility agent of the other Finance Parties (the “Agent”);
	 
	(8)	 	HSBC BANK PLC as security agent for the Secured Parties (the “Security Agent”); and
	 
	(9)	 	HSBC BANK PLC as issuer of the Bank Guarantee (the “Issuing Bank”).

WHEREAS

	(A)	 	The Parties (as defined below) entered into a US$30,000,000 facility agreement originally
dated 25 June 2007, as amended and restated on 2 November 2007, as further amended on 19
November 2007, as further amended and restated on 12 June 2008 and as further amended on 23
February 2009 (the “Original Facility Agreement”).
	 
	(B)	 	CNV now wishes to, and the Finance Parties have agreed to, amend and restate the Original
Facility Agreement.
	 
	(C)	 	The Parties now wish, therefore, to enter into this Agreement to record their agreement to
the terms set out below.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	"Amended Agreement” means the Original Facility Agreement, as amended and restated in the
form set out in Schedule 3 (Form of Amended Agreement).
	 
	 	 	“Amendment Fee Letter” means the fee letter dated on or before the date of this Agreement
between CNV and the Agent.
	 
	 	 	“DOLI Comfort Letter” means the comfort letter relating to directors; and officers; liability
insurance dated on or before the date of this Agreement between CNV and the Arranger.
	 
	 	 	“Effective Date” means the date specified as the “Effective Date” in the notification by the
Agent under Clause 2 (Conditions Precedent) or such other date as CNV and the Agent may
agree.
	 
	 	 	“Hedging Side Letter” means the side letter dated on or before the date of this Agreement
between CNV, CHL and the Arranger in connection with certain hedging arrangements.
	 
	 	 	“New Finance Documents” means this Agreement, the Amended Agreement, the New Security
Documents the Hedging Side Letter, the DOLI Comfort Letter, the Syndication Side Letter and
the Amendment Fee Letter and any other document designated as such by the Agent and CNV.

1

 

	 	 	“New Security Documents” means, together, the documents listed in paragraph 3 of Schedule 2
(Conditions Precedent).
	 
	 	 	“Party” means a party to this Agreement.
	 
	 	 	“Syndication Side Letter” means the syndication letter dated on or before the date of this
Agreement between CNV and the Arranger.
	 
	1.2	 	Incorporation of defined terms
	 
	(a)	 	Unless a contrary indication appears, a term defined in the Amended Agreement has the same
meaning in this Agreement.
	 
	(b)	 	The principles of construction set out in the Amended Agreement shall have effect as if set
out in this Agreement.
	 
	1.3	 	Clauses
	 
	 	 	In this Agreement any reference to a “Clause”, or a “Schedule” is, unless the context
otherwise requires, a reference to a Clause of or a Schedule to this Agreement.
	 
	1.4	 	Third Party Rights
	 
	 	 	A person who is not a party to this Agreement has no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.
	 
	1.5	 	Designation
	 
	 	 	In accordance with the Original Facility Agreement, CNV and the Agent designate each of the
New Finance Documents as a Finance Document under the Amended Agreement.
	 
	2.	 	CONDITIONS PRECEDENT
	 
	 	 	The provisions of Clause 4 (Amendment and Restatement) shall be effective only once the Agent
has received all the documents and other evidence listed in Schedule 2 (Conditions Precedent)
in form and substance satisfactory to the Agent. The Agent shall notify CNV and the Lenders
promptly upon being so satisfied.
	 
	3.	 	REPRESENTATIONS
	 
	3.1	 	Obligor’s Representations
	 
	 	 	Each Obligor makes the Repeating Representations, and the representations and warranties in
clause 20.7 (No filing or stamp taxes), 20.14 (Security) and 20.21 (Shares) of the Original
Facility Agreement, by reference to the facts and circumstances then existing:

	 	(a)	 	on the date of this Agreement; and
	 
	 	(b)	 	on the Effective Date,

	 	 	but as if references in clause 20 (Representations) of the Original Facility Agreement to
“this Agreement” are instead references to this Agreement and, on the Effective Date,
references to the Amended Agreement and this Agreement.
	 
	3.2	 	Additional Borrower’s Representations
	 
	 	 	The Additional Borrower makes the Repeating Representations and the representations and
warranties in clauses 20.7 (No filing or stamp taxes) of the Amended Agreement on the
Effective Date to each Finance Party, by reference to the facts and circumstances then
existing on the Effective Date but as if references in clause 20 (Representations) of the

2

 

	 	 	Amended Agreement to “this Agreement” are instead references to the Amended Agreement and
this Agreement.

	3.3	 	CICL’s Representations
	 
	 	 	CICL makes the Repeating Representations and the representations and warranties in clauses
20.7 (No filing or stamp taxes) of the Amended Agreement on the Effective Date to each
Finance Party, by reference to the facts and circumstances then existing on the Effective
Date but as if references in clause 20 (Representations) of the Amended Agreement to “this
Agreement” are instead references to the Amended Agreement and this Agreement.
	 
	4.	 	AMENDMENT AND RESTATEMENT
	 
	4.1	 	Amendment and Restatement
	 
	 	 	With effect from the Effective Date, the Original Facility Agreement shall be amended and
restated in the form set out in Schedule 3 (Form of Amended Agreement).
	 
	4.2	 	Continuing obligations
	 
	 	 	The provisions of the Original Facility Agreement and the other Finance Documents shall, save
as amended by this Agreement, continue in full force and effect.
	 
	4.3	 	Confirmation of Guarantee and Indemnity
	 
	 	 	Each Guarantor confirms that the provisions of the guarantee and indemnity contained in
clause 19 (Guarantee and Indemnity) of the Original Facility Agreement shall continue and
remain in full force and effect on and after the Effective Date and shall extend to the
obligations of the Obligors under the Finance Documents as amended and restated by this
Agreement.
	 
	5.	 	ACCESSION OF ADDITIONAL BORROWER AND ADDITIONAL GUARANTOR
	 
	5.1	 	Accession of Additional Borrower
	 
	 	 	With effect from the Effective Date:

	 	(a)	 	the parties to the Original Facility Agreement agree that the Additional Borrower
shall become an additional Borrower;
	 
	 	(b)	 	the Additional Borrower agrees to become an additional Borrower and agrees to be
bound by the terms of the Amended Agreement as if it were a Borrower; and
	 
	 	(c)	 	all references to a “Borrower” in the Amended Agreement shall be construed to
include the Additional Borrower.

	5.2	 	Accession of Additional Guarantor
	 
	 	 	With effect from the Effective Date:

	 	(a)	 	the parties to the Original Facility Agreement agree that CICL shall become an
Additional Guarantor;
	 
	 	(b)	 	CICL agrees to become an Additional Guarantor and agrees to be bound by the terms
of the Amended Agreement, pursuant to clause 27.2 (Additional Guarantors) of the Amended
Agreement; and
	 
	 	(c)	 	all references to a “Guarantor” in the Amended Agreement shall be construed to
include CICL.

3

 

	5.3	 	CICL Administrative Details
	 
	 	 	CICL’s address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) for any communication or document to be made or delivered under
or in connection with the Finance Documents is that identified with its name below or any
substitute address, fax number or department or officer as CICL may notify to the Agent by
not less than five Business Days’ notice.
	 
	6.	 	TRANSACTION EXPENSES
	 
	 	 	CNV shall promptly on demand reimburse the Agent, the Arranger, the Security Agent and the
Issuing Bank for the amount of all costs and expenses (including legal fees) reasonably
incurred by the Agent, the Arranger, the Security Agent and the Issuing Bank in connection
with the negotiation, preparation, printing and execution of this Agreement and any other
documents referred to in this Agreement.
	 
	7.	 	FEES
	 
	 	 	CNV shall pay to the Agent any fees due to be paid on the Effective Date in accordance with
the terms of the Amendment Fee Letter.
	 
	8.	 	MISCELLANEOUS
	 
	8.1	 	Incorporation of terms
	 
	 	 	The provisions of clause 36 (Notices) and clause 43 (Enforcement) of the Original Facility
Agreement shall be incorporated into this Agreement as if set out in full in this Agreement
and as if references in those clauses to “this Agreement” are references to this Agreement.
	 
	8.2	 	Counterparts
	 
	 	 	This 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 Agreement.
	 
	9.	 	GOVERNING LAW
	 
	 	 	This Agreement and any non-contractual obligations arising out of or in connection with it
are governed by English law.

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

4

 

SCHEDULE 1

The Guarantors

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Registration Number
	Name of Guarantor	 	Jurisdiction of Incorporation	 	(or equivalent, if any)
	 
	 	 	 	 	 	 	 	 
	BWS Finance Limited
	 	England and Wales	 	 	05471977	 
	Cascal Holdings Limited
	 	England and Wales	 	 	06707340	 
	Cascal Investments Limited
	 	England and Wales	 	 	02215221	 
	Cascal Services Limited
	 	England and Wales	 	 	03757398	 

5

 

SCHEDULE 2

Conditions Precedent

	1.	 	Obligors
	 
	(a)	 	A copy of the constitutional documents of each Obligor (in relation to CNV, its deed of
incorporation, articles of association and recent extract from the Dutch trade register
(handelsregister)) or a certificate of an authorised signatory of a relevant Obligor
certifying that the constitutional documents previously delivered to the Agent for the
purposes of the Original Facility Agreement have not been amended and remain in full force and
effect as at the Effective Date.
	 
	(b)	 	A copy of a resolution of the board of directors or equivalent body of each Obligor:

	 	(i)	 	approving the terms of, and the transactions contemplated by, the New Finance
Documents to which it is a party and resolving that it execute the New Finance Documents
to which it is a party;
	 
	 	(ii)	 	authorising a specified person or persons to execute the New Finance Documents to
which it is a party on its behalf;
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices (including, if relevant, any Utilisation Request) to
be signed and/or despatched by it under or in connection with the New Finance Documents
to which it is a party; and
	 
	 	(iv)	 	in relation to CNV:

	 	(A)	 	stating that entering into the New Finance Documents to which it
is a party is allowed by CNV’s articles of association, and serves the best
interest of CNV within the meaning of section 2:7 Dutch Civil Code (or
equivalent legislation in its Relevant Jurisdiction if applicable), in form and
substance acceptable to the Agent;
	 
	 	(B)	 	including a confirmation that it does not have a works council
(ondernemingsraad); and
	 
	 	(C)	 	confirming that there is no conflict of interest or, if there is,
that the general meeting of shareholders has not appointed any other person to
act for CNV with regard to the transaction.

	(c)	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph (b) above.
	 
	(d)	 	A certificate of an authorised signatory of the relevant Obligor certifying that each copy
document relating to it specified in this Schedule 2 is correct, complete and in full force
and effect as at a date no earlier than the Effective Date.
	 
	(e)	 	A copy of a resolution signed by all the holders of the issued shares in each Obligor (except
CNV), approving the terms of, and the transactions contemplated by, this Agreement.
	 
	2.	 	CICL
	 
	(a)	 	A copy of the constitutional documents of CICL.
	 
	(b)	 	A copy of a resolution of the board of directors CICL:

6

 

	 	(i)	 	approving the terms of, and the transactions contemplated by, the New Finance
Documents to which it is a party and resolving that it execute the New Finance Documents
to which it is a party;
	 
	 	(ii)	 	authorising a specified person or persons to execute the New Finance Documents to
which it is a party on its behalf; and
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices to be signed and/or despatched by it under or in
connection with the New Finance Documents to which it is a party.

	(c)	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph (b) above.
	 
	(d)	 	A certificate of an authorised signatory of CICL certifying that each copy document relating
to it specified in this Schedule 2 is correct, complete and in full force and effect as at a
date no earlier than the Effective Date.
	 
	(e)	 	A copy of a resolution signed by all the holders of the issued shares in CICL, approving the
terms of, and the transactions contemplated by, the New Finance Documents to which CICL is
party.
	 
	3.	 	Principal Documents
	 
	 	 	Copies of each New Finance Document duly signed or executed and delivered by the parties to
those documents, including the following new security documents (the “New Security
Documents”):
	 
	(a)	 	an English law share charge relating to the entire issued share capital of CHL executed by
CNV in favour of the Security Agent for and on behalf of the Finance Parties;
	 
	(b)	 	an English law accounts charge relating to the Collection Account executed by CNV in favour
of the Security Agent for and on behalf of the Finance Parties;
	 
	(c)	 	an English law accounts charge relating to the Operating Account executed by CNV in favour of
the Security Agent for and on behalf of the Finance Parties;
	 
	(d)	 	an English law accounts charge relating to the Prepayment Account executed by CNV in favour
of the Security Agent for and on behalf of the Finance Parties;
	 
	(e)	 	an English law fixed and floating document executed by CHL in favour of the Security Agent
for and on behalf of the Finance Parties;
	 
	(f)	 	an English law fixed and floating document executed by CICL in favour of the Security Agent
for and on behalf of the Finance Parties; and
	 
	(g)	 	an English law accounts charge executed by CIL in favour of the Security Agent for and on
behalf of the Finance Parties.
	 
	4.	 	Legal Opinions
	 
	(a)	 	A legal opinion of Linklaters LLP, London, English legal advisers to the Arranger, the
Security Agent and the Agent in England, substantially in the form distributed to the Original
Lenders prior to signing this Agreement.

7

 

	(b)	 	A legal opinion of Linklaters LLP, Amsterdam, Dutch legal advisers to the Arranger, the
Security Agent and the Agent in England, substantially in the form distributed to the Original
Lenders prior to signing this Agreement.
	 
	5.	 	Other documents and evidence
	 
	(a)	 	A copy of the revised Forecast Model.
	 
	(b)	 	A copy of the revised Group Structure Chart initialled by CNV.
	 
	(c)	 	Evidence that the fees, costs and expenses (including legal fees) due from CNV pursuant to
Clause 6 (Transaction expenses) and Clause 7 (Fees) of this Agreement and clause 13 (Fees) of
the Amended Agreement (as applicable) have been paid.
	 
	(d)	 	A copy of any other Authorisation or other document, opinion or assurance which the Agent
considers to be necessary or desirable (if it has notified CNV accordingly) in connection with
the entry into and performance of the transaction contemplated by the New Finance Documents or
for the validity and enforceability of the New Finance Documents.
	 
	(e)	 	Evidence satisfactory to the Agent that each Lender has carried out and is satisfied it has
complied with all necessary “know your customer” or other similar checks in respect of CICL
under all applicable laws and regulations pursuant to the transactions contemplated in the
Finance Documents and New Finance Documents.

8

 

SCHEDULE 3

Form of Amended Agreement

9

 

US$70,000,000

FACILITY AGREEMENT

dated 25 June 2007

as amended and restated on 2 November 2007, as further amended on 19 November 2007,

as further amended and restated on 12 June 2008, as further amended on 23 February 2009

and as further amended and restated on 26 June 2009

for

CASCAL N.V.

CASCAL HOLDINGS LIMITED

as Borrowers

arranged by

HSBC BANK PLC

as Mandated Lead Arranger

with

HSBC BANK PLC

acting as Agent

and

HSBC BANK PLC

acting as Security Agent

and

HSBC BANK PLC

acting as Issuing Bank

Ref: Philip Spittal/Nicholas Zaklama

 

 

CONTENTS

	 	 	 	 	 	 	 
	CLAUSE	 	PAGE	 
	 
	 	 	 	 	 	 
	SECTION 1
	INTERPRETATION
	1
	 	Definitions and Interpretation	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2
	THE FACILITIES
	2
	 	The Facilities	 	 	22	 
	3
	 	Purpose	 	 	23	 
	4
	 	Conditions of Utilisation	 	 	23	 
	 
	 	 	 	 	 	 
	SECTION 3
	UTILISATION
	5
	 	Utilisation — Revolving Facility Loans	 	 	26	 
	6
	 	Utilisation — Bank Guarantee	 	 	27	 
	7
	 	Bank Guarantee	 	 	30	 
	 
	 	 	 	 	 	 
	SECTION 4
	REPAYMENT, PREPAYMENT AND CANCELLATION
	8
	 	Repayment of Revolving Facility Loans and Bank Guarantees	 	 	34	 
	9
	 	Prepayment and Cancellation	 	 	34	 
	 
	 	 	 	 	 	 
	SECTION 5
	COSTS OF UTILISATION
	10
	 	Interest	 	 	41	 
	11
	 	Interest Periods	 	 	42	 
	12
	 	Changes to the Calculation of Interest	 	 	42	 
	13
	 	Fees	 	 	43	 
	 
	 	 	 	 	 	 
	SECTION 6
	ADDITIONAL PAYMENT OBLIGATIONS
	14
	 	Tax Gross Up and Indemnities	 	 	45	 
	15
	 	Increased Costs	 	 	49	 
	16
	 	Other Indemnities	 	 	50	 
	17
	 	Mitigation by the Lenders	 	 	51	 
	18
	 	Costs and Expenses	 	 	52	 
	 
	 	 	 	 	 	 
	SECTION 7
	GUARANTEE AND SECURITY
	19
	 	Guarantee and Indemnity	 	 	54	 
	 
	 	 	 	 	 	 
	SECTION 8
	REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT
	20
	 	Representations	 	 	58	 
	21
	 	Information Undertakings	 	 	64	 
	22
	 	Financial Covenants	 	 	69	 
	23
	 	General Undertakings	 	 	73	 
	24
	 	CHL Additional Covenants and Undertakings	 	 	79	 
	25
	 	Events of Default	 	 	80	 

 i

 

	 	 	 	 	 	 	 
	CLAUSE	 	PAGE	 
	 
	 	 	 	 	 	 
	SECTION 9
	CHANGES TO PARTIES
	26
	 	Changes to the Lenders	 	 	85	 
	27
	 	Changes to the Obligors	 	 	88	 
	 
	 	 	 	 	 	 
	SECTION 10
	THE FINANCE PARTIES
	28
	 	Role of the Agent and the Arranger	 	 	90	 
	29
	 	Role of the Security Agent	 	 	95	 
	30
	 	Expenses	 	 	100	 
	31
	 	Order of Application	 	 	100	 
	32
	 	Conduct of Business by the Finance Parties	 	 	100	 
	33
	 	Sharing among the Finance Parties	 	 	101	 
	 
	 	 	 	 	 	 
	SECTION 11
	ADMINISTRATION
	34
	 	Payment Mechanics	 	 	103	 
	35
	 	Set-Off	 	 	105	 
	36
	 	Notices	 	 	106	 
	37
	 	Calculations and Certificates	 	 	107	 
	38
	 	Partial Invalidity	 	 	108	 
	39
	 	Remedies and Waivers	 	 	108	 
	40
	 	Amendments and Waivers	 	 	108	 
	41
	 	Counterparts	 	 	109	 
	42
	 	Confidentiality	 	 	109	 
	 
	 	 	 	 	 	 
	SECTION 12
	GOVERNING LAW AND ENFORCEMENT
	43
	 	Governing Law	 	 	114	 
	44
	 	Enforcement	 	 	114	 

THE SCHEDULES

	 	 	 	 	 
	SCHEDULE	 	PAGE	 
	 
	 	 	 	 
	SCHEDULE 1 The Original Parties
	 	 	115	 
	SCHEDULE 2 Conditions Precedent
	 	 	117	 
	SCHEDULE 3 Requests
	 	 	127	 
	SCHEDULE 4 Mandatory Cost Formulae
	 	 	129	 
	SCHEDULE 5 Form of Transfer Certificate
	 	 	132	 
	SCHEDULE 6 Form of accession Letter
	 	 	135	 
	SCHEDULE 7 Form of Compliance Certificate
	 	 	137	 
	SCHEDULE 8 Timetables
	 	 	139	 
	SCHEDULE 9 Security Agency Provisions
	 	 	141	 
	SCHEDULE 10 Existing Indebtedness
	 	 	145	 
	SCHEDULE 11 Existing Security
	 	 	150	 

 ii

 

	
THIS AGREEMENT is dated 25 June 2007, as amended and restated on 2 November 2007, as further
amended on 19 November 2007, as further amended and restated on 12 June 2008, as further amended on
23 February 2009, and as further amended and restated on
26 June 2009 and made between:

	(1)	 	THE COMPANIES listed in Part I of Schedule 1 as borrowers (The Original Obligors) as
borrowers (the “Borrowers”);
	 
	(2)	 	THE COMPANIES listed in Part I of Schedule 1 (The Original Obligors) as original guarantors
(the “Original Guarantors”);
	 
	(3)	 	HSBC BANK PLC as mandated lead arranger (the “Arranger”);
	 
	(4)	 	THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original Obligors) as lenders
(the “Original Lenders”);
	 
	(5)	 	HSBC BANK PLC as facility agent of the other Finance Parties (the “Agent”);
	 
	(6)	 	HSBC BANK PLC as security agent for the Finance Parties (the “Security Agent”); and
	 
	(7)	 	HSBC BANK PLC as issuer of the Bank Guarantee (the “Issuing Bank”).

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

	1	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	“Acceleration Date” means the date (if any) on which the Agent gives a notice under Clause
25.21 (Acceleration);
	 
	 	 	“Accession Letter” means a document substantially in the form set out in Schedule 6 (Form of
Accession Letter);
	 
	 	 	“Accounting Group” means CNV, its Subsidiaries and its Joint Ventures.
	 
	 	 	“Accounting Month” means each period of approximately thirty days ending on the last day of
each calendar month in any financial year of CNV;
	 
	 	 	“Accounting Quarter” means each period of three Accounting Months ending on 31 March, 30
June, 30 September and 31 December in any financial year of CNV;
	 
	 	 	“Additional Cost Rate” has the meaning given to it in Schedule 4 (Mandatory Cost formulae);
	 
	 	 	“Additional Guarantor” means a company which becomes an Additional Guarantor in accordance
with Clause 27.2 (Additional Guarantors) ;
	 
	 	 	“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;
	 
	 	 	“Agreed Form” means, in relation to a document, that:

1

 

	 	(a)	 	it is in a form initialled by or on behalf of CNV and the Agent on or before
the signing of this Agreement for the purposes of identification; or
	 
	 	(b)	 	if not falling within paragraph (a), it is in form and substance satisfactory
to the Agent (acting reasonably) and initialled by or on behalf of the Agent for the
purposes of identification;

	 	 	“Amendment Agreement 1” means an amendment and restatement agreement dated 12 June 2008 made
between, amongst others, CNV as borrower, the Original Lenders, the Agent and the Security
Agent;
	 
	 	 	“Amendment Agreement 2” means the amendment
and restatement agreement dated ___ June 2009
made between, amongst others, CNV as borrower, the Original Lenders, the Agent and the
Security Agent;
	 
	 	 	“Amendment Agreements” means each of Amendment Agreement 1 and Amendment Agreement 2;
	 
	 	 	“Amendment Date 1” means the date on which the Agent notifies CNV and Lenders that each of
the conditions precedent under Amendment Agreement 1 have been satisfied pursuant to Clauses
2 (Conditions Precedent) and 4 (Amendment and Restatement) of Amendment Agreement 1;
	 
	 	 	“Amendment Date 2” means the date on which the Agent notifies the Borrowers and Lenders that
each of the conditions precedent under Amendment Agreement 2 have been satisfied pursuant to
Clauses 2 (Conditions Precedent) and 4 (Amendment and Restatement) of Amendment Agreement 2;
	 
	 	 	“Applicable Accounting Principles” means Dutch GAAP and practices and financial reference
periods used in the Original Financial Statements;
	 
	 	 	“Applicable Rate” means in relation to any overdue amount, the rate which would have been
payable if the overdue amount had, during the period of non-payment, constituted a Revolving
Facility Loan in US Dollars of the overdue amount for successive Interest Periods, each of a
duration selected by the Agent (acting reasonably);
	 
	 	 	“Artesian Facilities” means any of the facilities entered into between BWH plc and The Royal
Bank of Scotland and which are novated to Artesian Finance plc or Artesian Finance II plc as
part of the securitisation programme for raising funds for BWH plc;
	 
	 	 	“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration;
	 
	 	 	“Availability Period” means, in relation to the Facilities, the period from and including
the date of this Agreement to and including the date falling one Month prior to the
Termination Date (or, if applicable, the Extension Date);
	 
	 	 	“Available Commitment” means, in relation to a proposed Utilisation under a Facility, a
Lender’s Commitment under that Facility minus:

	 	(a)	 	the amount of its participation in any outstanding Utilisations; and
	 
	 	(b)	 	in relation to any proposed Utilisation, the amount of its participation in any
Utilisations that are due to be made on or before the proposed Utilisation Date;

	 	 	other than that Lender’s participation in any Utilisations that are due to be repaid or
prepaid on or before the proposed Utilisation Date;

2

 

	 	 	“Available Facility” means, in relation to a Facility, the aggregate for the time being of
each Lender’s Available Commitment in respect of that Facility;
	 
	 	 	“Bank Guarantee” means a bank guarantee substantially in an Agreed Form;
	 
	 	 	“Base Currency” means United States dollars;
	 
	 	 	“Base Currency Amount” means, in relation to a Guarantee Facility Utilisation, the amount
specified in the Utilisation Request delivered by either Borrower for that Guarantee
Facility Utilisation (or, if the amount requested is not denominated in the Base Currency,
that amount converted into the Base Currency at the Lender’s Spot Rate of Exchange on the
date which is three Business Days before the Utilisation Date or, if later, on the date the
Lender receives the Utilisation Request) adjusted to reflect any repayment;
	 
	 	 	“Break Costs” means the amount (if any) by which:

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

	 	 	exceeds:

	 	(b)	 	the amount which that Lender would be able to obtain by placing an amount equal
to the principal amount or Unpaid Sum received by it on deposit with a leading bank in
the Relevant Interbank Market for a period starting on the Business Day following
receipt or recovery and ending on the last day of the current Interest Period;

	 	 	“BSTID” means the Borrower Security Trust and Intercreditor Deed dated 20 April 2005 as
amended by a deed of amendment and restatement dated 30 April 2008;
	 
	 	 	“Budget” means the initial budget of CNV in the Agreed Form;
	 
	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in London and New York;
	 
	 	 	“Business Plan” means the business plan in relation to an acquisition for which the Total
Consideration exceeds US$40,000,000 prepared by CNV and in the Agreed Form;
	 
	 	 	“BWH Group” means BWH Group Limited;
	 
	 	 	“BWH Holdings” means Bournemouth & West Hampshire Water Holdings Group Limited;
	 
	 	 	“BWH plc” means Bournemouth & West Hampshire Water plc;
	 
	 	 	“Calculation Date” means the last day of an Accounting Quarter;
	 
	 	 	“Capital Expenditure” means any expenditure which should in accordance with the Applicable
Accounting Principles be treated as capital expenditure in the audited consolidated
financial statements of the Group;
	 
	 	 	“Cash” means any credit balance on any deposit, savings, current or other account, and any
cash in hand, which is:

	 	(a)	 	freely withdrawable on demand;

3

 

	 	(b)	 	not subject to any Security (other than pursuant to any Security Document);
	 
	 	(c)	 	denominated and payable in freely transferable and freely convertible currency;
and
	 
	 	(d)	 	capable of being remitted to an Obligor in the United Kingdom;

	 	 	“Cash Equivalent Investments” means:

	 	(a)	 	securities with a maturity of less than 12 months from the date of acquisition
issued or fully guaranteed or fully insured by the Government of the United States or
any member state of the European Union which is rated at least A-1 by Standard & Poor’s
Ratings Group or P-1 by Moody’s Investors Service, Inc.;
	 
	 	(b)	 	commercial paper or other debt securities issued by an issuer rated at least
A-1 by Standard & Poor’s Ratings Group or P-1 by Moody’s Investors Service, Inc. and
with a maturity of less than 12 months; and
	 
	 	(c)	 	certificates of deposit or time deposits of any commercial bank (which has
outstanding debt securities rated as referred to in paragraph (b)) and with a maturity
of less than three months,

	 	 	in each case not subject to any Security or Quasi Security (other than pursuant to any
Security Document), denominated and payable in freely transferable and freely convertible
currency and the proceeds of which are capable of being remitted to an Obligor in the United
Kingdom;
	 
	 	 	“Cash Flow” has the meaning given to it in Clause 22.5 (Definitions);
	 
	 	 	“Charged Assets” means the assets over which Security is expressed to be created pursuant to
any Security Document;
	 
	 	 	“Chargor” means any person expressed to create Security pursuant to any Security Document;
	 
	 	 	“Chief Financial Officer” means Steve Hollinshead and any replacement chief financial
officer (or equivalent officer, as appropriate) from time to time of CNV;
	 
	 	 	“CIL” means Cascal Investments Limited (formerly Biwater Supply Limited);
	 
	 	 	“CNV” means Cascal N.V.;
	 
	 	 	“Collection Account” means the account of CNV with HSBC Bank plc, account number 67634020
with sort code 400515, Account Title: Cascal N.V. Collection Account or such other account
as CNV, the Agent and the Security Agent may from time to time agree in writing;
	 
	 	 	“Collection Date” has the meaning given to it in Clause 9.10 (Collection Account);
	 
	 	 	“Commitment” means a Guarantee Facility Commitment or a Revolving Facility Commitment;
	 
	 	 	“Compliance Certificate” means a certificate substantially in the form set out in Schedule 7
(Form of Compliance Certificate);
	 
	 	 	“Confidential Information” means all information relating to the Borrowers, any Obligor, the
Group, the Finance Documents or a 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

4

 

	 	 	a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the
Finance Documents or a 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 42
(Confidentiality);
	 
	 	(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;

	 	 	“Confidentiality Undertaking” means a confidentiality undertaking substantially in the form
agreed between CNV and the Arranger on or prior to the date of this Agreement or in any
other form agreed between CNV and the Agent;
	 
	 	 	“CSL” means Cascal Services Limited;
	 
	 	 	“CWC” means The China Water Company Limited;
	 
	 	 	“Debt Service” has the meaning given to it in Clause 22.5 (Definitions);
	 
	 	 	“Default” means an Event of Default or any event or circumstance specified in Clause 25
(Events of Default) which would (with the lapse of time, 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;
	 
	 	 	“Default Interest Rate” means a rate which, subject to Clause 10.3(b), is the sum of:

	 	(a)	 	the Applicable Rate; and
	 
	 	(b)	 	one per cent. per annum;

	 	 	“Discharge Date” means the date on which the Security Agent is satisfied that all
obligations under the Finance Documents have been fully and irrevocably paid and discharged
and all commitments of the Finance Parties under this Agreement have expired or been
cancelled;
	 
	 	 	“Disruption Event” means either or both of:

	 	(a)	 	a material disruption to those payment or communications systems or to those
financial markets which are, in each case, required to operate in order for payments to
be made in connection with the Facilities (or otherwise in order for the

5

 

	 	 	 	transactions contemplated by the Finance Documents to be carried out) which
disruption is not caused by, and is beyond the control of, any of the Parties; or
	 
	 	(b)	 	the occurrence of any other event which results in a disruption (of a technical
or systems-related nature) to the treasury or payments operations of a Party preventing
that, or any other Party:

	 	(i)	 	from performing its payment obligations under the Finance
Documents; or
	 
	 	(ii)	 	from communicating with other Parties in accordance with the
terms of the Finance Documents,

	 	 	and which (in either such case) is not caused by, and is beyond the control of, the Party
whose operations are disrupted;
	 
	 	 	“Dormant Company” means a company:

	 	(a)	 	which has been dormant since its incorporation or since the end of its previous
financial year (and for this purpose “dormant” has the meaning given to it in Section
249 AA(4) of the Companies Act 1985 with regard to financial years beginning before 6
April 2008 and Section 1169 of the Companies Act 2006 for financial years beginning on
and after 6 April 2008); and
	 
	 	(b)	 	which holds no shares in any other person (other than another Dormant Company);

	 	 	“Dutch Company” means any Obligor or any Subsidiary of such Obligor incorporated in the
Netherlands;
	 
	 	 	“Dutch Financial Supervision Act” means the Dutch Financial Supervision Act (Wet op het
financieel toezicht) dated 28 September 2006 published in the Dutch government gazette nr.
475 on 31 October 2006, as amended from time to time;
	 
	 	 	“Dutch GAAP” means generally accepted accounting principles, standards and practices in the
Netherlands;
	 
	 	 	“Dutch Guarantor” means any Guarantor incorporated in the Netherlands;
	 
	 	 	“Dutch Obligor” means any Obligor incorporated in the Netherlands;
	 
	 	 	“EBITDA” has the meaning given to it in Clause 22 (Financial covenants);
	 
	 	 	“English Companies” means each Obligor and its Subsidiaries incorporated in England and
Wales;
	 
	 	 	“Environment” means living organisms including the ecological systems of which they form
part and the following media:

	 	(a)	 	air (including air within natural or man-made structures, whether above or
below ground);
	 
	 	(b)	 	water (including territorial, coastal and inland waters, water under or within
land and water in drains and sewers); and
	 
	 	(c)	 	land (including land under water);

	 	 	“Environmental Law” means all laws and regulations of any relevant jurisdiction which:

	 	(a)	 	have as a purpose or effect the protection of, and/or prevention of harm or
damage to, the Environment;

6

 

	 	(b)	 	provide remedies or compensation for harm or damage to the Environment; or
	 
	 	(c)	 	relate to Hazardous Substances or health and safety matters;

	 	 	“Environmental Licence” means any Authorisation required at any time under Environmental
Law;
	 
	 	 	“€” or “Euro” means the single currency unit of the Participating Member States;
	 
	 	 	“Event of Default” means any event or circumstance specified as such in Clause 25 (Events of
Default);
	 
	 	 	“Existing Indebtedness” means the Financial Indebtedness of the Group evidenced by the
agreements set out in Schedule 10 (Existing Indebtedness) in the form they are in on the
date of this Agreement without any further increase or other amendment that could result in
increased liability, obligations or Financial Indebtedness for the relevant Group Member;
	 
	 	 	“Existing Security” means any Security granted pursuant to the agreements set out in
Schedule 11 (Existing Security) in the form they are in on the date of this Agreement
without any further amendment;
	 
	 	 	“Extension Date” means 30 June 2012;
	 
	 	 	“Facility” means the Revolving Facility or the Guarantee Facility;
	 
	 	 	“Facility Office” means the office or offices notified by a Lender to the Agent in writing
on or before the date it becomes a Lender (or, following that date, by not less than five
Business Days’ written notice) as the office or offices through which it will perform its
obligations under this Agreement;
	 
	 	 	“Fee Letter” means the letter dated on or about the date of this Agreement between the
Arranger, the Agent, the Security Agent and CNV setting out the fees referred to in Clause
13 (Fees);
	 
	 	 	“Final IPO Date” means 28 February 2008 or such other date that the Lenders may agree with
CPV;
	 
	 	 	“Finance Document” means this Agreement, the Amendment Agreements, each Accession Letter,
each Security Document, the Fee Letter, each Transfer Certificate, each New Finance Document
and any other document designated as such by the Agent and CNV;
	 
	 	 	“Finance Party” means each of the Agent, the Arranger, the Issuing Bank, the Lenders and the
Security Agent;
	 
	 	 	“Financial Indebtedness” means any indebtedness for or in respect of:

	 	(a)	 	moneys borrowed and debit balances at banks or other financial institutions;
	 
	 	(b)	 	any acceptance under any acceptance credit or bill discounting facility (or
dematerialised equivalent);
	 
	 	(c)	 	any note purchase facility or the issue of bonds, notes, debentures, loan stock
or any similar instrument;

7

 

	 	(d)	 	the amount of any liability in respect of any lease or hire purchase contract
which would, in accordance with the Applicable Accounting Principles, be treated as a
finance or capital lease;
	 
	 	(e)	 	receivables sold or discounted (other than any receivables to the extent they
are sold on a non-recourse basis);
	 
	 	(f)	 	any amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing;
	 
	 	(g)	 	any derivative transaction entered into in connection with protection against
or benefit from fluctuation in any rate or price (and, when calculating the value of
any derivative transaction, only the marked to market value shall be taken into
account);
	 
	 	(h)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a bank or
financial institution in respect of an underlying liability of an entity which is not a
member of the Group which liability would fall within one of the other paragraphs of
this definition;
	 
	 	(i)	 	the amount of any liability in respect of any credit for goods and services
raised in the ordinary course of trade outstanding for more than 90 days after its
customary date of payment; and
	 
	 	(j)	 	the amount of any liability in respect of any guarantee for any of the items
referred to in paragraphs (a) to (i);

	 	 	“Forecast Model” means a forecast model in an Agreed Form breaking down for a two year
period the amount and source of revenue flowing into the Collection Account or the Operating
Account and the amount and the beneficiary of outgoings made out of the Operating Account
which shall be used by the Agent and the Lender(s) amongst other things to assess and
measure the anticipated cashflows of CNV during the term of the Facility;
	 
	 	 	“GAAP” means:

	 	(a)	 	in relation to the consolidated financial statements of the Group, Dutch GAAP;
and
	 
	 	(b)	 	in relation to any member of the Group, generally accepted accounting
principles, standards and practices in its jurisdiction of incorporation;

	 	 	“Group” means CNV and its Subsidiaries for the time being;
	 
	 	 	“Group Structure Chart” means the group structure chart provided on the date of this
Agreement or any revised format presented thereafter;
	 
	 	 	“Guarantee Facility” means the guarantee facility made available under this Agreement as
described in paragraph (b) of Clause 2.1 (The Facilities);
	 
	 	 	“Guarantee Facility Commitment” means:

	 	(a)	 	in relation to an Original Guarantee Facility Lender, the amount in the Base
Currency set opposite its name under the heading “Guarantee Facility Commitment” in
Part I of Schedule 1 (The Original Parties) and the amount of any other Guarantee
Facility Commitment transferred to it under this Agreement; and

8

 

	 	(b)	 	in relation to any other Guarantee Facility Lender, the amount in the Base
Currency of any Guarantee Facility Commitment transferred to it under this Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement;
	 
	 	 	“Guarantee Facility Lender” means:

	 	(a)	 	any Original Guarantee Facility Lender; and
	 
	 	(b)	 	any bank, financial institution, trust, fund or other entity which has become a
Guarantee Facility Lender in accordance with Clause 26 (Changes to the Lenders),

	 	 	which in each case has not ceased to be a Guarantee Facility Lender in accordance with this
Agreement;
	 
	 	 	“Guarantee Facility Utilisation” means a Bank Guarantee or a Bid Bond Utilisation;
	 
	 	 	“Guarantor” means an Original Guarantor or an Additional Guarantor;
	 
	 	 	“Hazardous Substance” means any waste, pollutant, contaminant or other substance (including
any liquid, solid, gas, ion, living organism or noise) that may be harmful to human health
or other life or the Environment or a nuisance to any person or that may make the use or
ownership of any affected land or property more costly;
	 
	 	 	“Holding Company” means, in relation to a company, corporation or other legal entity, any
other company, corporation or other legal entity in respect of which it is a Subsidiary;
	 
	 	 	“Income Tax Act” means the Income Tax Act 2007;
	 
	 	 	“Initial Utilisation Date” means the date on which the initial Utilisation under the
Facilities is, or is to be, made;
	 
	 	 	“Insolvency Event” means the occurrence of any of the events described in Clause 25.7
(Insolvency Proceedings) in relation to a member of the Group other than an Obligor;
	 
	 	 	“Insurance Proceeds” has the meaning given to it in Clause 9.5 (Mandatory prepayment —
Insurance Proceeds);
	 
	 	 	“Intellectual Property” means all trade marks, service marks, trade names, domain names,
logos, get-up, patents, inventions, registered and unregistered design rights, copyrights,
topography rights, database rights, rights in confidential information and know-how, and any
associated or similar rights anywhere in the world, which it now or in the future owns or
(to the extent of its interest) in which it now or in the future has an interest (in each
case whether registered or unregistered and including any related licences and sub-licences
of the same granted by it or to it, applications and rights to apply for the same);
	 
	 	 	“Interest Period” means, in relation to a Revolving Facility Loan or a Bank Guarantee, each
period determined in accordance with Clause 11 (Interest Periods) and, in relation to an
Unpaid Sum, each period determined in accordance with Clause 10.3 (Default interest);
	 
	 	 	“Intragroup Debt” means all present and future moneys, debts and liabilities due, owing or
incurred by any member of the Group to any other member of the Group (in each case, whether
alone or jointly, or jointly and severally, with any other person, whether actually or
contingently and whether as principal, surety or otherwise);
	 
	 	 	“IPO” means initial public offering of no less than 20 per cent. of the shares of CNV;

9

 

	 	 	“Joint Venture” means any joint venture entity, whether a company, unincorporated firm,
undertaking, joint venture, association, partnership or any other entity;
	 
	 	 	“Lender’s Spot Rate of Exchange” means the Lender’s spot rate of exchange for the purchase
of the relevant currency with the Base Currency in the London foreign exchange market at or
about 11:00 a.m. on a particular day.;
	 
	 	 	“Lender” means a Revolving Facility Lender or a Guarantee Facility Lender;
	 
	 	 	“Liabilities” of a Chargor means all present and future moneys, debts and liabilities due,
owing or incurred by it to any Finance Party under or in connection with any Finance
Document (in each case, whether alone or jointly, or jointly and severally, with any other
person, whether actually or contingently and whether as principal, surety or otherwise);
	 
	 	 	“LIBOR” means, in relation to any Revolving Facility Loan:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for US Dollars or Interest Period of that
Revolving Facility Loan) the arithmetic mean of the rates (rounded upwards to four
decimal places) as supplied to the Agent at its request quoted by the Reference Banks
to leading banks in the London interbank market,

	 	 	as of the Specified Time on the Quotation Day for the offering of deposits in the currency
of that Revolving Facility Loan and for a period comparable to the Interest Period for that
Revolving Facility Loan;
	 
	 	 	“Liquidation Proceeds” has the meaning given to it in Clause 9.6 (Mandatory prepayment —
Liquidation Proceeds);
	 
	 	 	“Majority Guarantee Facility Lenders” means, at any time, a Guarantee Facility Lender or
Guarantee Facility Lenders whose Available Commitments under the Guarantee Facility and
participations in the Bank Guarantee then outstanding aggregate more than 662/3 per cent. of
the outstanding Bank Guarantee;
	 
	 	 	“Majority Lenders” means, at any time, a Lender or Lenders whose Available Commitments and
participations in the Utilisations then outstanding aggregate more than 662/3 per cent. of the
Available Facilities and all the Utilisations then outstanding. For the purpose of this
definition, the provisions of Clause 8.2 (Reduction of Revolving Facility and Guarantee
Facility) shall not apply;
	 
	 	 	“Majority Revolving Facility Lenders” means, at any time, a Revolving Facility Lender or
Revolving Facility Lenders whose Available Commitments under the Revolving Facility then
outstanding aggregate more than 662/3 per cent. of the Available Facility under the Revolving
Facility then outstanding;
	 
	 	 	“Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance
with Schedule 4 (Mandatory Cost formulae);
	 
	 	 	“Margin” means the following margin which shall apply to each relevant Interest Period:

	 	 	 	 	 
	 	 	Margin (per cent.
	Where the ratio of Net Borrowings to EBITDA for CNV is:	 	per annum)
	(a) More than 3.5:1
	 	 	4.50	 
	(b) Between 3.0:1 and 3.5:1
	 	 	4.00	 

10

 

	 	 	 	 	 
	 	 	Margin (per cent.
	Where the ratio of Net Borrowings to EBITDA for CNV is:	 	per annum)
	(c) Between 2.5:1 and 3.0:1
	 	 	3.50	 
	(d) Between 2.0:1 and 2.5:1
	 	 	3.00	 
	(e) Less than 2.0:1
	 	 	2.50	 

	 	 	provided that:

	 	(a)	 	if any change in margin occurs on a day which is not a Business Day, the
revised margin shall apply from the Business Day following the date on which the change
of margin occurs; and
	 
	 	(b)	 	the margin shall be the highest applicable rate above on and from the date on
which:

	 	(i)	 	an Event of Default occurs and is outstanding unless otherwise
waived by the Agent; or
	 
	 	(ii)	 	CNV fails to deliver a Compliance Certificate to the Agent
pursuant to Clause 21.3 (Compliance Certificate/Provisional Compliance); and

	 	 	“Margin Adjustment Dates” means the dates on which the Margin changes as set out in the
definition of Margin;
	 
	 	 	“Material Adverse Effect” means a material adverse effect on or material adverse change in:

	 	(a)	 	the financial condition, assets or business of any Obligor or any Regulated
Subsidiary or the consolidated financial condition, assets or business of an Obligor
and any Regulated Subsidiary;
	 
	 	(b)	 	the ability of any Obligor to perform and comply with its material obligations
under any Finance Document;
	 
	 	(c)	 	the validity, legality or enforceability of any Finance Document; or
	 
	 	(d)	 	the validity, legality or enforceability of any Security expressed to be
created pursuant to any Security Document or on the priority and ranking of any of that
Security;

	 	 	“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 rules will only apply to the last Month of any period;
	 
	 	 	“Net Sale Proceeds” has the meaning given to it in Clause 9.4 (Mandatory prepayment — Net
Sale Proceeds);

11

 

	 	 	“New Finance Documents” has the meaning given to it in Amendment Agreement 2;
	 
	 	 	“New Revolving Facility Transfer Amount” means an amount equal to the Lender’s Revolving
Facility Commitment on the date on which the New Revolving Commitment Lender accedes to this
Agreement pursuant to Clause 5.5(b)(i) minus US$50,000,000;
	 
	 	 	“Non-Consenting Lender” has the meaning given to it in Clause 9.13 (Replacement of a
Non-Consenting Lender or Non-Funding Lender);
	 
	 	 	“Non-Funding Lender” has the meaning given to it in Clause 9.13 (Replacement of a
Non-Consenting Lender or Non-Funding Lender);
	 
	 	 	“Obligor” means the Borrowers and each Guarantor;
	 
	 	 	“OFWAT” means the Water Services Regulation Authority;
	 
	 	 	“Operating Account” means the account of CNV with HSBC Bank plc account number 39632130 with
sort code 400515, Account Title: Cascal N.V. — Operating Account or such other account as
CNV, the Agent and the Security Agent may from time to time agree in writing;
	 
	 	 	“Optional Currency” means a currency (other than the Base Currency) which complies with the
conditions set out in Clause 4.5 (Conditions relating to Optional Currencies);
	 
	 	 	“Original Financial Statements” means:

	 	(a)	 	in relation to CNV, the special purpose audited consolidated financial
statements of the Group for the financial year ended March 2007; and
	 
	 	(b)	 	in relation to each Original Obligor other than CNV, its audited financial
statements for its financial year ended March 2007;

	 	 	“Original Guarantee Facility Lender” means a Lender listed in Part II of Schedule 1 (The
Original Parties) as having a Guarantee Facility Commitment;
	 
	 	 	“Original Obligor” means CNV or an Original Guarantor;
	 
	 	 	“Original Parent” means Biwater B.V.;
	 
	 	 	“Original Revolving Facility Lender” means a Lender listed in Part II of Schedule 1 (The
Original Parties) as having a Revolving Facility Commitment;
	 
	 	 	“Original Total Commitments” means the aggregate of the Total Revolving Facility Commitments
and the Total Guarantee Facility Commitments prior to the Amendment Date 1;
	 
	 	 	“Participating Member State” means any member state of the European Communities that adopts
or has adopted the Euro as its lawful currency in accordance with legislation of the
European Community relating to Economic and Monetary Union;
	 
	 	 	“Party” means a party to this Agreement;
	 
	 	 	“Perfection Requirements” means the making of the appropriate registrations, filings or
notifications of the Security Documents or any other applicable jurisdiction-specific
perfection requirements as specifically contemplated by any legal opinion delivered pursuant
to Clause 4 (Conditions of Utilisation) or Clause 27 (Changes to the Obligors);
	 
	 	 	“Permitted Acquisition” means an acquisition by any Obligor of any business or all or part
of the issued share capital of a limited liability company where:

12

 

	 	(a)	 	the total consideration (including associated costs and expenses and any
Financial Indebtedness remaining in the acquired company or business at the date of
acquisition) (the “Total Consideration”), does not exceed or is equal to US$40,000,000
(or its equivalent in another currency or currencies);
	 
	 	(b)	 	where the Total Consideration does exceed US$40,000,000 (or its equivalent in
another currency or currencies) and the Agent, upon written request by the relevant
Obligor, accompanied by a Business Plan, consents to such acquisition,
	 
	 	 	 	provided that

	 	(i)	 	no Event of Default is continuing on the closing date for that
acquisition or would occur as a result of that acquisition;
	 
	 	(ii)	 	the acquired company carries on, or the business is, a business
substantially the same as that carried on by the Group; and
	 
	 	(iii)	 	if that acquisition is of all of the issued share capital of a
limited liability company, the relevant Obligor supplies to the Agent in
sufficient copies for all the Lenders a copy (if any) of:

	 	(A)	 	the most recent annual audited financial
statements of that company (consolidated if it has Subsidiaries); and
	 
	 	(B)	 	the most recent management accounts of that
company (consolidated if it has Subsidiaries); or

	 	(c)	 	such acquisition is made with the prior written consent of the Agent;

	 	 	“Permitted Disposal” means the sale, lease, transfer or other disposal:

	 	(a)	 	of trading stock by any member of the Group in the ordinary course of trading
of the disposing entity;
	 
	 	(b)	 	of assets in exchange for other assets comparable or superior as to type, value
and quality;
	 
	 	(c)	 	of assets by an Obligor or a Regulated Subsidiary to another Obligor or
Regulated Subsidiary provided that the Security Agent is satisfied that the Finance
Parties will enjoy the same or equivalent Security over those assets;
	 
	 	(d)	 	where the aggregate consideration receivable does not exceed US$100,000 (or its
equivalent in another currency or currencies) in any financial year of CNV;
	 
	 	(e)	 	made on arm’s length terms in the ordinary course of trade or in connection
with arm’s length transactions entered into for a bona fide commercial purpose in
furtherance of the business;
	 
	 	(f)	 	made with the prior written consent of the Agent; or
	 
	 	(g)	 	the surrender or disposal of tax credits, losses, relief or allowances between
any member of the Group that is done on arms length terms for bona fide commercial
purposes and for full value;

	 	 	“Permitted Financial Indebtedness” means:

	 	(a)	 	any Financial Indebtedness arising under any Finance Document;
	 
	 	(b)	 	any Financial Indebtedness that is Existing Indebtedness;

13

 

	 	(c)	 	any Financial Indebtedness arising under a Permitted Loan or a Permitted
Guarantee; or
	 
	 	(d)	 	any Financial Indebtedness incurred with the prior written consent of the
Agent;

	 	 	“Permitted Guarantee” means:

	 	(a)	 	any guarantee arising under the Finance Documents;
	 
	 	(b)	 	any guarantee that is Existing Indebtedness;
	 
	 	(c)	 	any guarantee issued by a member of the Group which is not an Obligor or
Regulated Subsidiary (as the case may be) in respect of the Financial Indebtedness of
another member of the Group which is not an Obligor or Regulated Subsidiary (as the
case may be);
	 
	 	(d)	 	any guarantee issued by a member of the Group which is not an Obligor or
Regulated Subsidiary (as the case may be) in respect of the Financial Indebtedness of
an Obligor or Regulated Subsidiary (as the case may be); or
	 
	 	(e)	 	any guarantee issued with the prior written consent of the Agent;

	 	 	“Permitted Loan” means any loan made by an Obligor to another Obligor or made by a member of
the Group which is not an Obligor to another member of the Group provided that such money
shall be subordinated to this Agreement;
	 
	 	 	“Permitted Payment” means the following payments that can be made provided no Default is
existing:

	 	(a)	 	the Obligors and the Regulated Subsidiaries shall be permitted to downstream to
Group companies any new money provided that such money shall be subordinated to this
Agreement; or
	 
	 	(b)	 	the Obligors and the Regulated Subsidiaries will be permitted to inject funds
into other Obligors or Regulated Subsidiaries for the purpose of curing any default
(howsoever defined) of an Obligor or a Regulated Subsidiary on terms acceptable to the
Lenders and subject to an appropriate threshold to be agreed with the Lenders;

	 	 	“Permitted Security” means:

	 	(a)	 	any lien arising by operation of law and in the ordinary course of trading and
not as a result of any default or omission by any member of the Group;
	 
	 	(b)	 	any retention of title arrangements and rights of set-off arising in the
ordinary course of trading with suppliers of goods to any member of the Group and not
as a result of any default or omission by any member of the Group;
	 
	 	(c)	 	any Security or Quasi Security created pursuant to any Finance Document;
	 
	 	(d)	 	any Security or Quasi Security that is Existing Security; or
	 
	 	(e)	 	any Security or Quasi Security granted with the prior written consent of the
Agent;

	 	 	“PMP” means a professional market party (professionele marktpartij) within the meaning of
the Dutch Financial Supervision Act;
	 
	 	 	“Prepayment Account” means the account of CNV with HSBC Bank plc, account number 67634039
with sort code 400515, Account Title: Cascal N.V. — Prepayment Account or such

14

 

	 	 	other account as CNV, the Agent and the Security Agent may from time to time agree in
writing;

	 	 	“Prepayment Date” has the meaning given to it in Clause 9.8 (Prepayment Account);
	 
	 	 	“Prepayment Proceeds” means Insurance Proceeds, Liquidation Proceeds, Termination Proceeds
and Net Sale Proceeds which are credited to the Prepayment Account;
	 
	 	 	“Prepayment Receipt Date” has the meaning given to it in Clause 9.8 (Prepayment Account);
	 
	 	 	“Proceeds” means all income, dividends, receivables and other payments other than Prepayment
Proceeds flowing, directly and indirectly, to CNV from its Subsidiaries or third parties and
which are credited to the Collection Account or the Operating Account in accordance with the
Forecast Model;
	 
	 	 	“Proportion” has the meaning given to it in Clause 6.1(a)(ii) (Utilisation — Bank
Guarantee);
	 
	 	 	“Quasi Security” means a transaction under which any member of the Group will:

	 	(a)	 	sell, transfer or otherwise dispose of any of its assets on terms whereby they
are or may be leased to or re-acquired by any other member of the Group;
	 
	 	(b)	 	sell, transfer or otherwise dispose of any of its receivables on recourse
terms;
	 
	 	(c)	 	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
	 
	 	(d)	 	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;
	 
	 	 	“Quotation Day” means, in relation to any period for which an interest rate is to be
determined two Business Days before the first day of that period, unless market practice
differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for
that currency will be determined by the Agent in accordance with market practice in the
Relevant Interbank Market (and if quotations for that currency and period would normally be
given by leading banks in the Relevant Interbank Market on more than one day, the Quotation
Day will be the last of those days);
	 
	 	 	“Receipt Date” has the meaning given to it in Clause 9.10 (Collection Account);
	 
	 	 	“Recent Acquisitions” means the purchase by the Borrower or by any of its direct or indirect
Subsidiaries of each of:

	 	(a)	 	100 per cent. of the issued share capital of Servilampa S.A.;
	 
	 	(b)	 	100 per cent. of the issued share capital of Servicomunal S.A.;
	 
	 	(c)	 	51 per cent. of the issued share capital EJV Company in relation to the
acquisition of the concession to provide water to the Zhumadian region of the Henan
Province in the People’s Republic of China (the “Zhumadian Concession”).

	 	 	“Reference Banks” means, in relation to LIBOR and Mandatory Cost, the principal London
offices of Lloyds TSB plc, HSBC Bank plc and Citibank, N.A. or such other banks as may be
appointed by the Agent in consultation with CNV;

15

 

	 	 	“Refinancing” means any refinancing, regearing, deferral, restructuring, rescheduling,
repayment or extension of any existing debt by any Obligor or any Subsidiary thereof;
	 
	 	 	“Registration Rights Agreement” means an agreement dated 1 January 2008 relating to
registration rights and other matters and made between CNV and Biwater Investments Limited;
	 
	 	 	“Regulated Subsidiary” means each of BWH Holdings and BWH plc and any of their Subsidiaries
or, in circumstances where the business operations of either BWH Holdings and BWH plc are
transferred to another member of the Group or are being carried out by another member of the
Group, that member of the Group;
	 
	 	 	“Related Fund” means, in relation to a trust, fund or other entity, another trust, fund or
other entity which is:

	 	(a)	 	regularly engaged in or established for the purpose of making, purchasing or
investing in loans, securities or other financial assets; and
	 
	 	(b)	 	has the same fund manager or asset manager or is owned by the same person as
the first trust, fund or other entity;

	 	 	“Relevant Interbank Market” means the London interbank market;
	 
	 	 	“Relevant Jurisdiction” means, in relation to an Obligor:

	 	(a)	 	its jurisdiction of incorporation;
	 
	 	(b)	 	any jurisdiction where any asset subject to or intended to be subject to a
Security Document is situated;
	 
	 	(c)	 	any jurisdiction where it conducts its business; and
	 
	 	(d)	 	the jurisdiction whose laws govern the perfection of any of the Security
Documents entered into by it;

	 	 	“Relevant Period” has the meaning given to it in Clause 22.5 (Definitions);
	 
	 	 	“Renewal Request” has the meaning given in Clause 6.1(a)(iii);
	 
	 	 	“Repayment Date” means in relation to a Revolving Facility Loan, the last day of the
Interest Period applicable to that Revolving Facility Loan;
	 
	 	 	“Repeating Representations” means each of the representations set out in Clause 20.1
(Status) to Clause 20.6 (Governing law and enforcement), Clause 20.8 (No default) to Clause
20.13 (No proceedings pending or threatened), Clause 20.15 (Legal and Beneficial Ownership)
to Clause 20.17 (Environmental Laws and Licences), Clause 20.18 (Group Structure) to Clause
20.19 (No Financial Indebtedness, Guarantees or Security) and Clause 20.21 (Intellectual
Property) to Clause 20.26 (Insurances);
	 
	 	 	“Representative” means any delegate, agent, manager, administrator, nominee, attorney,
trustee or custodian;
	 
	 	 	“Reservations” means any general principles of law limiting the obligations of any Obligor
which are specifically referred to in any legal opinion delivered pursuant to Clause 4
(Conditions of Utilisation) or Clause 27 (Changes to the Obligors);
	 
	 	 	“Revolving Facility” means the revolving credit facility made available under this Agreement
as described in paragraph (a) of Clause 2.1 (The Facilities)

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	 	 	“Revolving Facility Commitment” means:

	 	(a)	 	in relation to an Original Revolving Facility Lender, the amount set opposite
its name under the heading “Revolving Facility Commitment” in Part II of Schedule 1
(The Original Parties) and the amount of any other Revolving Facility Commitment
transferred to it under this Agreement; and
	 
	 	(b)	 	in relation to any other Revolving Facility Lender, the amount of any Revolving
Facility Commitment transferred to it under this Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement;
	 
	 	 	“Revolving Facility Lender” means:

	 	(a)	 	any Original Revolving Facility Lender; and
	 
	 	(b)	 	any bank, financial institution, trust, fund or other entity which has become a
Revolving Facility Lender in accordance with Clause 26 (Changes to the Lenders),

	 	 	which in each case has not ceased to be a Revolving Facility Lender in accordance with this
Agreement;
	 
	 	 	“Revolving Facility Loan” means a loan made or to be made under the Revolving Facility or
the principal amount outstanding for the time being of that Revolving Facility Loan;
	 
	 	 	“Rollover Loan” means one or more Revolving Facility Loan(s):

	 	(a)	 	made or to be made on the same day that one or more maturing Revolving Facility
Loan(s) is or are due to be repaid;
	 
	 	(b)	 	the aggregate amount of which is equal to or less than the maturing Revolving
Facility Loan(s);
	 
	 	(c)	 	in the same currency as the maturing Revolving Facility Loan(s); and
	 
	 	(d)	 	made or to be made to the same Borrower for the purpose of refinancing the
maturing Revolving Facility Loan(s);

	 	 	“Screen Rate” means in relation to LIBOR, the British Bankers Association Interest
Settlement Rate for US Dollars and period, displayed on the appropriate page of the Reuters
screen. If the agreed page is replaced or service ceases to be available, the Agent may
specify another page or service displaying the appropriate rate after consultation with CNV
and the Lenders;
	 
	 	 	“Secondary Equity Offering” means a secondary public offering of shares of CNV;
	 
	 	 	“Secondary Proceeds” means all income, dividends, receivables received by CNV, its
Subsidiaries or Affiliates in relation to the completion of the Secondary Equity Offering .
net of all costs, fees and expenses incurred in connection with the Secondary Equity
Offering;
	 
	 	 	“Security” 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;
	 
	 	 	“Security Documents” means:

	 	(a)	 	the documents listed in paragraph 2 of Sections A and B of Part II and, (if
applicable) paragraph 13 of Part III of Schedule 2 (Conditions precedent); and

17

 

	 	(b)	 	any other security document that may at any time be given as security for any
of the Liabilities pursuant to or in connection with any Finance Document;

	 	 	“Security Property” means any property secured pursuant to a Security Document;
	 
	 	 	“Specified Time” means a time determined in accordance with Schedule 8 (Timetables);
	 
	 	 	“£” or “Sterling” means the lawful currency of the United Kingdom;
	 
	 	 	“Subsidiary” means in relation to any company, corporation or other legal entity, (a
“holding company”), a company, corporation or other legal entity:

	 	(a)	 	which is controlled, directly or indirectly, by the holding company;
	 
	 	(b)	 	more than half the issued share capital of which is beneficially owned,
directly or indirectly, by the holding company; or
	 
	 	(c)	 	which is a subsidiary of another Subsidiary of the holding company,

	 	 	and, for this purpose, a company or corporation shall be treated as being controlled by
another if that other company or corporation is able to determine the composition of the
majority of its board of directors or equivalent body;
	 
	 	 	“Syndication Side Letter” has the meaning given to it in Amendment Agreement 2;
	 
	 	 	“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);
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Termination Date” means 30 June 2011 in relation to the Revolving Facility and 30 June 2011
or such earlier date arising pursuant to Clause 6.7 (Renewal of a Bank Guarantee) in
relation to the Guarantee Facility;
	 
	 	 	“Termination Proceeds” has the meaning given to it in Clause 9.7 (Mandatory prepayment —
Termination Proceeds);
	 
	 	 	“Total Commitments” means, subject to Clause 5.5 (Additional Uncommitted Revolving Facility
Commitments), the aggregate of the Total Revolving Facility Commitments and the Total
Guarantee Facility Commitments, being US$70,000,000 on Amendment Date 2;
	 
	 	 	“Total Guarantee Facility Commitments” means the aggregate of the Guarantee Facility
Commitments, being US$10,000,000 on Amendment Date 2;
	 
	 	 	“Total New Revolving Facility Commitments” means an amount of up to US$75,000,000;
	 
	 	 	“Total Revolving Facility Commitments” means, subject to Clause 5.5 (Additional Uncommitted
Revolving Facility Commitments), the aggregate of the Revolving Facility Commitments, being
US$60,000,000 at Amendment Date 2;
	 
	 	 	“Transfer Certificate” means a certificate substantially in the form set out in Schedule 5
(Form of Transfer Certificate) or any other form agreed between the Agent and the Borrowers;
	 
	 	 	“Transfer Date” means, in relation to a transfer, the later of:

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

18

 

	 	(b)	 	the date on which the Agent executes the Transfer Certificate;

	 	 	“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance
Documents;
	 
	 	 	“US Dollar” and “US$” mean the lawful currency of the United States of America;
	 
	 	 	“Utilisation” means a Revolving Facility Loan or a Guarantee Facility Utilisation;
	 
	 	 	“Utilisation Date” means the date on which a Utilisation is, or is to be, made;
	 
	 	 	“Utilisation Request” means (in relation to a Revolving Facility Loan) a notice
substantially in the form set out in Part I of Schedule 3 (Requests) or (in relation to a
Bank Guarantee) a notice substantially in the form set out in Part II of 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;
	 
	1.2	 	Construction
	 
	(a)	 	Unless a contrary indication appears, any reference in this Agreement to:

	 	(i)	 	the “Agent”, the “Arranger”, any “Finance Party”, the “Issuing Bank”, any
“Lender”, any “Obligor”, any “Party”, any “Finance Party” or the “Security Agent” shall
be construed so as to include its successors in title, permitted assigns and permitted
transferees;
	 
	 	(ii)	 	“assets” includes present and future properties, revenues and rights of every
description;
	 
	 	(iii)	 	a Borrower providing “cash cover” for the Bank Guarantee means that Borrower
paying an amount in US Dollars to an interest-bearing account in its name and the
following conditions are met:

	 	(A)	 	the account is with the Security Agent;
	 
	 	(B)	 	withdrawals from the account may only be made to pay a Finance
Party amounts due and payable to it under this Agreement in respect of that
Bank Guarantee until no amount is or may be outstanding under that Bank
Guarantee; and
	 
	 	(C)	 	if the Security Agent or that Borrower have executed a security
document over that account, in form and substance satisfactory to the Security
Agent with which that account is held, creating a first ranking security
interest over that account;

	 	(iv)	 	the “equivalent” in any currency (the “first currency”) of any amount in
another currency (the “second currency”) shall be construed as a reference to the
amount in the first currency which could be purchased with that amount in the second
currency at the Agent’s spot rate of exchange for the purchase of the first currency
with the second currency in the London foreign exchange market at or about 11:00 a.m.
on a particular day (or at or about such time and on such date as the Agent may from
time to time reasonably determine to be appropriate in the circumstances);
	 
	 	(v)	 	“guarantee” means any guarantee, bond, indemnity or similar assurance against
loss, or any obligation, direct or indirect, actual or contingent, to purchase or

19

 

	 	 	 	assume any indebtedness of any person or to make an investment in or loan to any
person or to purchase assets of any person where, in each case, such obligation is
assumed in order to maintain or assist the ability of such person to meet its
indebtedness;

	 	(vi)	 	a “Finance Document” or any other agreement or instrument is a reference to
that Finance Document or other agreement or instrument as amended, novated,
supplemented, extended, restated (however fundamentally and whether or not more
onerously) or replaced and includes any change in the purpose of, any extension of or
any increase in any facility or the addition of any new facility under that Finance
Document or other agreement or instrument;
	 
	 	(vii)	 	“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;
	 
	 	(viii)	 	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);
	 
	 	(ix)	 	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 regulatory,
self-regulatory or other authority or organisation;
	 
	 	(x)	 	a Borrower “repaying” or “prepaying” a Bank Guarantee means:

	 	(A)	 	that Borrower providing cash cover for that Bank Guarantee;
	 
	 	(B)	 	the maximum amount payable under the Bank Guarantee being
reduced in accordance with its terms; or
	 
	 	(C)	 	the Issuing Bank being satisfied that it has no further
liability under that Bank Guarantee,

	 	 	 	and the amount by which a Bank Guarantee is repaid or prepaid under Clauses
1.2(a)(x)(A) and 1.2(a)(x)(B) is the amount of the relevant cash cover or reduction;
	 
	 	(xi)	 	“shares” or “share capital” includes equivalent ownership interests (and
“shareholder” and similar expressions shall be construed accordingly);
	 
	 	(xii)	 	a claim being made under a Bank Guarantee, or such a claim being paid by the
Issuing Bank, shall include a reference to the inclusion of any amount due (actually or
contingently) from the Issuing Bank under that Bank Guarantee in any account taken for
the purposes of Rule 4.90 or Rule 2.85 of the Insolvency Rules 1986 in the insolvency
proceedings of the beneficiary of that Bank Guarantee or any other person.
	 
	 	(xiii)	 	a provision of law is a reference to that provision as amended or re-enacted; and
	 
	 	(xiv)	 	a time of day is a reference to London or New York time.

	(b)	 	Section, Clause and Schedule headings are for ease of reference only.
	 
	(c)	 	Unless a contrary indication appears, a term used in any other Finance Document or in any
notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement.

20

 

	(d)	 	A Default or an Event of Default is “continuing” if it has not been remedied or waived.

	1.3	 	Third Party Rights
	 
	 	 	A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act
1999 to enforce or to enjoy the benefit of any term of this Agreement.
	 
	1.4	 	Dutch Companies
	 
	 	 	In this Agreement, where it relates to a Dutch Company, a reference to:

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

	 	(i)	 	declared bankrupt (failliet verklaard); or
	 
	 	(ii)	 	dissolved (ontbonden);

	 	(b)	 	a moratorium includes surseance van betaling and granted a moratorium includes
surseance verleend;
	 
	 	(c)	 	insolvency includes a bankruptcy and moratorium;
	 
	 	(d)	 	a trustee in bankruptcy includes a curator;
	 
	 	(e)	 	an administrator includes a bewindvoerder;
	 
	 	(f)	 	“security right” includes any mortgage (hypotheek), pledge (pandrecht),
retention of title arrangement (eigendomsvoorbehoud), right of retention (recht van
retentie), right to reclaim goods (recht van reclame), and, in general, any right in
rem (beperkt recht), created for the purpose of granting security (goederenrechtelijk
zekerheidsrecht);
	 
	 	(g)	 	an attachment includes a beslag; and
	 
	 	(h)	 	a subsidiary includes a dochtermaatschappij as defined in Article 2:24a of the
Dutch Civil Code.

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SECTION 2

THE FACILITIES

	2	 	THE FACILITIES
	 
	2.1	 	The Facilities
	 
	 	 	Subject to the terms of this Agreement:

	 	(a)	 	the Revolving Facility Lenders make available to the Borrowers a revolving term
facility in an aggregate amount equal to the Total Revolving Facility Commitments; and
	 
	 	(b)	 	the Guarantee Facility Lenders make available to the Borrowers a Multicurrency
revolving Guarantee Facility in an aggregate amount equal to the Total Guarantee
Facility 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 Obligor (other than CNV) irrevocably appoints CNV to act on its behalf as its agent in
relation to the Finance Documents and irrevocably authorises:

	 	(i)	 	CNV on its behalf to supply all information concerning itself contemplated by
this Agreement to the Finance Parties and to give and receive all notices, consents and
instructions, to agree, accept and execute on its behalf all documents in connection
with the Finance Documents (including amendments and variations of and consents under
any Finance Document) and to execute any new Finance Document and to take such other
action as may be necessary or desirable under or in connection with the Finance
Documents; and
	 
	 	(ii)	 	each Finance Party to give any notice, demand or other communication to that
Obligor pursuant to the Finance Documents to CNV.

	(b)	 	Each Obligor (other than CNV) confirms that:

	 	(i)	 	it will be bound by any action taken by CNV under or in connection with the
Finance Documents; and
	 
	 	(ii)	 	each Finance Party may rely on any action purported to be taken by CNV on
behalf of that Obligor.

22

 

	2.4	 	Acts of CNV
	 
	(a)	 	The respective liabilities of each of the Obligors under the Finance Documents shall not be
in any way affected by:

	 	(i)	 	any actual or purported irregularity in any act done, or failure to act, by
CNV;
	 
	 	(ii)	 	CNV acting (or purporting to act) in any respect outside any authority
conferred upon it by any Obligor; or
	 
	 	(iii)	 	any actual or purported failure by, or inability of, CNV to inform any Obligor
of receipt by it of any notification under the Finance Documents.

	(b)	 	In the event of any conflict between any notices or other communications of CNV and any other
Obligor, those of CNV shall prevail.
	 
	3	 	PURPOSE
	 
	3.1	 	Purpose
	 
	(a)	 	Each Borrower shall apply all amounts borrowed by it under the Revolving Facility:

	 	(i)	 	towards financing the consideration payable by that Borrower for the Recent
Acquisitions (and the relevant Borrower irrevocably authorises and directs the Agent to
make the payments to the relevant recipients on its behalf);
	 
	 	(ii)	 	for general corporate purposes and working capital; and
	 
	 	(iii)	 	the transaction expenses incurred by that Borrower and/or each Finance Party
in connection with the Finance Documents and a Recent Acquisition.

	(b)	 	Each Borrower shall apply all amounts borrowed by it under the Guarantee Facility to enable
the Issuing Bank to issue Bank Guarantees to replace certain existing guarantees issued on
behalf of operating Subsidiaries of CNV which are currently secured with cash, to issue new
Bank Guarantees, to renew Bank Guarantees or for such other purpose as the Agent may agree.
	 
	(c)	 	No amount borrowed under the Facilities shall be applied in any manner that may be illegal or
contravene any applicable law or regulation in any relevant jurisdiction concerning financial
assistance by a company for the acquisition of or subscription for shares or concerning the
protection of shareholders’ capital.
	 
	3.2	 	Monitoring
	 
	 	 	No Finance Party is bound to monitor or verify the application of any amount borrowed
pursuant to this Agreement.
	 
	4	 	CONDITIONS OF UTILISATION
	 
	4.1	 	Signing conditions precedent
	 
	 	 	This Agreement shall not be effective unless the Agent has received all of the documents and
other evidence listed in Part I of Schedule 2 (Conditions precedent) in form and substance
satisfactory to the Agent. For the avoidance of doubt, the Agent has notified CNV and
Lenders that the conditions precedent in Part I of Schedule 2 (Conditions precedent) have
been satisfied.

23

 

	4.2	 	Initial conditions precedent relating to Utilisation before Amendment Date 1
	 
	 	 	A Borrower may not deliver a Utilisation Request unless on or before Amendment Date 1, the
Agent has received all of the documents and other evidence listed in:

	 	4.2.1	 	Section A of Part II of Schedule 2 (Conditions precedent) in form and
substance satisfactory to the Agent; and
	 
	 	4.2.2	 	Section B of Part II of Schedule 2 (Conditions precedent) in form and
substance satisfactory to the Agent

	 	 	For the avoidance of doubt, the Agent confirms that the conditions precedent in Sections A
and B of Part II of Schedule 2 (Conditions precedent) have been satisfied.

	4.3	 	Further conditions precedent
	 
	 	 	The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) and
Clause 6.6 (Issue of a Bank Guarantee) if on the date of the Utilisation Request and on the
proposed Utilisation Date:

	 	(a)	 	in the case of a Rollover Loan, no Event of Default is continuing or would
result from the proposed Revolving Facility Loan and, in the case of any other
Revolving Facility Loan, no Default is continuing or would result from the proposed
Revolving Facility Loan; and
	 
	 	(b)	 	in the case of any initial Utilisation, the representations and warranties set
out in Clause 20 (Representations) which are made or deemed to be made on the date of
the initial Utilisation Request and the Initial Utilisation Date in accordance with
Clause 20.28 (Times when representations made) are true and, in the case of any other
Utilisation, the Repeating Representations are true.

	4.4	 	Maximum number of Utilisations
	 
	 	 	No Borrower may deliver a Utilisation Request if as a result of the proposed Utilisation:

	 	(a)	 	more than ten Revolving Facility Loans would be outstanding; or
	 
	 	(b)	 	more than ten Guarantee Facility Utilisations would be outstanding.

	4.5	 	Conditions relating to Optional Currencies
	 
	 	 	A currency will constitute an Optional Currency in relation to a Guarantee Facility
Utilisation or Revolving Facility Utilisation if:

	 	(a)	 	it is for Sterling or Euros or any other currency approved by the Lenders on or
prior to receipt by the Lenders of the relevant Utilisation Request for that Guarantee
Facility Utilisation or Revolving Facility Utilisation (as applicable); and
	 
	 	(b)	 	it is readily available in the amount required and freely convertible into the
Base Currency in the Relevant Interbank Market on the Quotation Day and the Utilisation
Date for that Guarantee Facility Utilisation or Revolving Facility Utilisation (as
applicable).

	4.6	 	Unavailability of a currency
	 
	 	 	If before 3.00 p.m. on any Quotation Day:

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	 	(a)	 	the Optional Currency requested is not readily available to the Lenders in the
amount required; or
	 
	 	(b)	 	compliance with the Lenders’ obligation to make a Guarantee Facility
Utilisation in the proposed Optional Currency would contravene a law or regulation
applicable to it,

	 	 	the Lenders will give notice to the Borrowers to that effect by 5:00 p.m. on that day. In
this event, the Lenders will be required to make the Guarantee Facility Utilisation
available in the Base Currency (in an amount equal to the Base Currency Amount).

25

 

SECTION 3

UTILISATION

	5	 	UTILISATION — REVOLVING FACILITY LOANS
	 
	5.1	 	Delivery of a Utilisation Request
	 
	 	 	Each Borrower may utilise the Revolving Facility by way of a Revolving Facility Loan by
delivery to the Agent of a duly completed Utilisation Request not later than the Specified
Time.
	 
	5.2	 	Completion of a Utilisation Request
	 
	(a)	 	Each Utilisation Request for a Revolving Facility Loan is irrevocable and will not be
regarded as having been duly completed unless:

	 	(i)	 	it specifies that it is for a Revolving Facility Loan;
	 
	 	(ii)	 	it identifies the relevant Borrower;
	 
	 	(iii)	 	the proposed Utilisation Date is a Business Day within the Availability Period
applicable to the Revolving Facility;
	 
	 	(iv)	 	the currency and amount of the Utilisation comply with Clause 5.3 (Currency and
amount);
	 
	 	(v)	 	the proposed Interest Period complies with Clause 11 (Interest Periods); and
	 
	 	(vi)	 	it specifies the account and bank (which must be in the principal financial
centre of the country of the currency of the Utilisation in which banks are open for
general business on that day or London) to which the proceeds of the Utilisation are to
be credited.

	(b)	 	Only one Revolving Facility Loan may be requested in each Utilisation Request.
	 
	5.3	 	Currency and amount
	 
	(a)	 	The currency specified in a Utilisation Request must be US Dollars.
	 
	(b)	 	The amount of the proposed Revolving Facility Loan must be a minimum of US$1,000,000 (or, if
in an Optional Currency, an amount equivalent to US$1,000,000 when converted pursuant to
paragraph (b) of Clause 4.5 (Conditions relating to Optional Currencies) for the Revolving
Facility or in each case, if less, the Available Facility.
	 
	5.4	 	Lenders’ participation
	 
	(a)	 	If the conditions set out in this Agreement have been met, each Lender participating in the
Revolving Facility shall make its participation in each Revolving Facility Loan under the
Revolving Facility available by the Utilisation Date of that Revolving Facility Loan through
its Facility Office.
	 
	(b)	 	The amount of each Lender’s participation in each Revolving Facility Loan will be equal to
the proportion borne by its Available Commitment to the Available Facility immediately prior
to making the Revolving Facility Loan.

26

 

	5.5	 	Additional Uncommitted Revolving Facility Commitments
	 
	(a)	 	Subject to Clauses 5.5(b) to (e), the Borrowers shall have the option to increase the Total
Revolving Facility Commitments to an amount up to the Total New Revolving Facility
Commitments.
	 
	(b)	 	The Borrowers may only exercise their option pursuant to Clause 5.5(a) if:

	 	(i)	 	a bank or other financial institution (the “New Revolving Commitment Lender”)
accedes by way of a Transfer Certificate to this Agreement as a New Lender pursuant to
Clause 26.1 (Assignments and transfers by the Lenders);
	 
	 	(ii)	 	the Lenders’ Revolving Facility Commitment is reduced to a maximum amount of
US$50,000,000 by way of a transfer of the New Revolving Facility Transfer Amount
pursuant to Clause 26 (Changes to Lenders) in a form acceptable to the Lenders and Part
II of Schedule 1 (The Original Parties) shall be considered to be amended accordingly;
	 
	 	(iii)	 	subject to the terms and limitations of paragraph 6 of the Syndication Side
Letter, it pays:

	 	(A)	 	a participation fee to the New Revolving Commitment Lender in
an amount to be agreed between the Borrowers, the New Revolving Commitment
Lender and the Lenders; and
	 
	 	(B)	 	a placement fee to the Lenders in an amount to be agreed
between the Borrowers and the Lenders.

	(c)	 	If the conditions set out in Clause 5.5(b) have been met, each Lender (including the New
Revolving Commitment Lender) participating in the Revolving Facility shall make its
participation under the Revolving Facility available by the Utilisation Date through its
Facility Office.
	 
	(d)	 	The amount of each Lender’s (including the New Revolving Commitment Lender) participation in
each Revolving Facility Loan will be equal to the proportion borne by its Available Commitment
to the Available Facility immediately prior to making the Revolving Facility Loan.
	 
	(e)	 	The Lenders shall be entitled, with the consent of the Borrowers, to make such changes to any
fees, interest or Margin payable under this Agreement as are necessary to ensure that the New
Revolving Commitment Lender accedes to this Agreement as a New Lender.
	 
	(f)	 	The Lenders agree only to approach a potential New Revolving Commitment Lender following
consultation with the Borrowers.
	 
	6	 	UTILISATION — BANK GUARANTEE
	 
	6.1	 	General
	 
	(a)	 	In this Clause 6 (Utilisation — Bank Guarantee) and Clause 7 (Bank Guarantee):

	 	(i)	 	“Expiry Date” means, for a Bank Guarantee, the last day of its Term;
	 
	 	(ii)	 	“Proportion” means, in relation to a Lender in respect of a Bank Guarantee, the
proportion (expressed as a percentage) borne by that Lender’s Available Commitment
under the Guarantee Facility to the Available Facility under the

27

 

	 	 	 	Guarantee Facility immediately prior to the issue of that Bank Guarantee, adjusted
to reflect any assignment or transfer under this Agreement to or by that Lender;

	 	(iii)	 	“Renewal Request” means a written notice delivered to the Agent in accordance
with Clause 6.7 (Renewal of a Bank Guarantee); and
	 
	 	(iv)	 	“Term” means each period determined under this Agreement for which the Issuing
Bank is under a liability under a Bank Guarantee.

	(b)	 	Any reference in this Agreement to:

	 	(i)	 	the Interest Period of a Bank Guarantee will be construed as a reference to the
Term of that Bank Guarantee;
	 
	 	(ii)	 	an amount borrowed includes any amount utilised by way of Bank Guarantee;
	 
	 	(iii)	 	a Utilisation made or to be made to a Borrower includes a Bank Guarantee
issued on its behalf;
	 
	 	(iv)	 	a Lender funding its participation in a Utilisation includes a Lender
participating in a Bank Guarantee;
	 
	 	(v)	 	amounts outstanding under this Agreement include amounts outstanding under or
in respect of any Bank Guarantee; and
	 
	 	(vi)	 	an outstanding amount of a Bank Guarantee at any time is the maximum amount
that is or may be payable by a Borrower in respect of that Bank Guarantee at that time.

	(c)	 	Clause 5 (Utilisation — Revolving Facility Loans) does not apply to a Utilisation by way of
Bank Guarantee.
	 
	(d)	 	In determining the amount of the Available Facility and a Lender’s Proportion of a proposed
Bank Guarantee for the purposes of this Agreement the Available Commitment of a Lender will be
calculated ignoring any cash cover provided for an outstanding Bank Guarantee.
	 
	6.2	 	Guarantee Facility availability
	 
	(a)	 	An amount of the Guarantee Facility not exceeding the Available Facility may be utilised by
way of Bank Guarantee.
	 
	(b)	 	If any Bank Guarantee is denominated in an Optional Currency, the Agent shall at regular
intervals after the date of the Bank Guarantee recalculate the Base Currency Amount of that
Bank Guarantee by notionally converting into the Base Currency the outstanding amount of that
Bank Guarantee on the basis of the Agent’s Spot Rate of Exchange on the date of calculation.
	 
	(c)	 	The Borrowers shall, if requested by the Agent under Clause 6.2(b), ensure that within three
Business Days sufficient Guarantee Facility Utilisations are prepaid to prevent the Base
Currency Amount of the Guarantee Facility Utilisations exceeding the Total Guarantee Facility
Commitments following any adjustment to a Base Currency Amount under Clause 6.2(b).
	 
	6.3	 	Delivery of a Utilisation Request for Bank Guarantee
	 
	 	 	A Borrower may request a Bank Guarantee to be issued by delivery to the Agent of a duly
completed Utilisation Request not later than the Specified Time.

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	6.4	 	Completion of a Utilisation Request for Bank Guarantee
	 
	 	 	Each Utilisation Request for a Bank Guarantee is irrevocable and will not be regarded as
having been duly completed unless:

	 	(a)	 	it specifies that it is for a Bank Guarantee;
	 
	 	(b)	 	the proposed Utilisation Date is a Business Day within the Availability Period
applicable to the Guarantee Facility;
	 
	 	(c)	 	the currency and amount of the Bank Guarantee comply with Clause 6.5 (Currency
and amount);
	 
	 	(d)	 	the form of Bank Guarantee is attached;
	 
	 	(e)	 	the Expiry Date of the Bank Guarantee falls on or before the Termination Date
(or, if applicable, the Extension Date) applicable to the Guarantee Facility or as
otherwise consented to by the Agent;
	 
	 	(f)	 	the Term of the Bank Guarantee shall be 12 months or as otherwise consented to
by the Agent;
	 
	 	(g)	 	the delivery instructions for the Bank Guarantee are specified; and
	 
	 	(h)	 	the identity of the beneficiary of the Bank Guarantee is a beneficiary approved
by the Issuing Bank and all the Guarantee Facility Lenders.

	6.5	 	Currency and amount
	 
	(a)	 	The currency specified in a Utilisation Request for a Bank Guarantee must be the Base
Currency or an Optional Currency.
	 
	(b)	 	The amount of the proposed Bank Guarantee must be such that its Base Currency Amount is less
than or equal to the Available Commitment for the Guarantee Facility.
	 
	6.6	 	Issue of Bank Guarantee
	 
	(a)	 	If the conditions set out in this Agreement have been met, and subject to Clause 6.8 (Issuing
Bank right of refusal), the Issuing Bank shall issue a Bank Guarantee on the Utilisation Date.
	 
	(b)	 	The Issuing Bank will only be obliged to comply with Clause 6.6(a) if on the date of the
Utilisation Request or Renewal Request and on the proposed Utilisation Date:

	 	(i)	 	in the case of a Bank Guarantee renewed in accordance with Clause 6.7 (Renewal
of a Bank Guarantee), no Event of Default is continuing or would result from the
proposed Utilisation and, in the case of any other Utilisation, no Default is
continuing or would result from the proposed Utilisation; and
	 
	 	(ii)	 	the Repeating Representations are true.

	(c)	 	The amount of each Guarantee Facility Lender’s participation in each Bank Guarantee will be
equal to its Proportion.
	 
	(d)	 	The Agent shall notify the Issuing Bank and each Guarantee Facility Lender of the details of
the requested Bank Guarantee and its participation in that Bank Guarantee by the Specified
Time.

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	6.7	 	Renewal of a Bank Guarantee
	 
	(a)	 	A Borrower may request any Bank Guarantee issued on its behalf be renewed by delivery to the
Agent of a Renewal Request by the Specified Time.
	 
	(b)	 	The Finance Parties shall treat any Renewal Request in the same way as a Utilisation Request
for a Bank Guarantee except that the conditions set out in Clauses 6.7(d) and 6.7(g) shall not
apply.
	 
	(c)	 	The terms of each renewed Bank Guarantee shall be the same as those of the relevant Bank
Guarantee immediately prior to its renewal, except that:

	 	(i)	 	its amount may be less than the amount of the Bank Guarantee immediately prior
to its renewal; and
	 
	 	(ii)	 	its Term shall start on the date which was the Expiry Date of the Bank
Guarantee immediately prior to its renewal, and shall end on the proposed Expiry Date
specified in the Renewal Request.

	(d)	 	If the conditions set out in this Agreement have been met, (and subject to Clause 6.8
(Issuing Bank right of refusal)) the Issuing Bank shall amend and re-issue any Bank Guarantee
pursuant to a Renewal Request.
	 
	6.8	 	Issuing Bank right of refusal
	 
	(a)	 	The Agent has the right at any time to refuse to renew or issue a Bank Guarantee and require
the Borrowers to find a replacement bank to provide a replacement bank guarantee as soon as
possible but in any event no later than 30 days prior to the Expiry Date of the existing Bank
Guarantee.
	 
	(b)	 	The Borrowers hereby agrees to provide a replacement bank guarantee in accordance with Clause
6.8(a).
	 
	7	 	BANK GUARANTEE
	 
	7.1	 	Immediately payable
	 
	 	 	If a Bank Guarantee or any amount outstanding under a Guarantee is expressed to be
immediately payable, the Borrowers shall repay or prepay that amount immediately.
	 
	7.2	 	Claims under a Bank Guarantee
	 
	(c)	 	The Borrower irrevocably and unconditionally authorises the Issuing Bank to pay any claim
made or purported to be made under a Bank Guarantee requested by it and which appears on its
face to be in order (a “claim”).
	 
	(d)	 	The Borrowers shall immediately on demand pay to the Agent for the Issuing Bank an amount
equal to the amount of any claim under that Bank Guarantee.
	 
	(e)	 	The Borrowers acknowledge that the Issuing Bank:

	 	(i)	 	is not obliged to carry out any investigation or seek any confirmation from any
other person before paying a claim; and
	 
	 	(ii)	 	deals in documents only and will not be concerned with the legality of a claim
or any underlying transaction or any available set-off, counterclaim or other defence
of any person.

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	(f)	 	The obligations of a the Borrowers under this Clause 7.2 will not be affected by:

	 	(i)	 	the sufficiency, accuracy or genuineness of any claim or any other document; or
	 
	 	(ii)	 	any incapacity of, or limitation on the powers of, any person signing a claim
or other document.

	7.3	 	Indemnities
	 
	(a)	 	The Borrowers shall immediately on demand indemnify the Issuing Bank against any cost, loss
or liability incurred by the Issuing Bank (otherwise than by reason of the Issuing Bank’s
gross negligence or wilful misconduct) in acting as the Issuing Bank under any Bank Guarantee
requested by a Borrower.
	 
	(b)	 	Each Guarantee Facility Lender shall (according to its Proportion) immediately on demand
indemnify the Issuing Bank against any cost, loss or liability incurred by the Issuing Bank
(otherwise than by reason of the Issuing Bank’s gross negligence or wilful misconduct) in
acting as the Issuing Bank under any Bank Guarantee (unless the Issuing Bank has been
reimbursed by an Obligor pursuant to a Finance Document).
	 
	(c)	 	If any Guarantee Facility Lender is not permitted (by its constitutional documents or any
applicable law) to comply with Clause 7.3(b), then that Lender will not be obliged to comply
with Clause 7.3(b) and shall instead be deemed to have taken, on the date the Bank Guarantee
is issued (or if later, on the date the Lender’s participation in the Bank Guarantee is
transferred or assigned to the Guarantee Facility Lender in accordance with the terms of this
Agreement), an undivided interest and participation in the Bank Guarantee in an amount equal
to its Proportion of that Bank Guarantee. On receipt of demand from the Agent, that Guarantee
Facility Lender shall pay to the Agent (for the account of the Issuing Bank) an amount equal
to its Proportion of the amount demanded.
	 
	(d)	 	The Borrowers shall immediately on demand reimburse any Guarantee Facility Lender for any
payment it makes to the Issuing Bank under this Clause 7.3 in respect of that Bank Guarantee.
	 
	(e)	 	The obligations of each Guarantee Facility Lender under this Clause are continuing
obligations and will extend to the ultimate balance of sums payable by that Guarantee Facility
Lender in respect of any Bank Guarantee, regardless of any intermediate payment or discharge
in whole or in part.
	 
	(f)	 	The obligations of any Guarantee Facility Lender under this Clause 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 (without limitation and whether or not
known to it or any other person) including:

	 	(i)	 	any time, waiver or consent granted to, or composition with, any Obligor, any
beneficiary under a Bank Guarantee or other person;
	 
	 	(ii)	 	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 or any other
person;
	 
	 	(iii)	 	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 Bank Guarantee or other person or any non-

31

 

	 	 	 	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;

	 	(iv)	 	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
Bank Guarantee or any other person;
	 
	 	(v)	 	any amendment (however fundamental) or replacement of a Finance Document, any
Bank Guarantee or any other document or security;
	 
	 	(vi)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document, any Bank Guarantee or any other document or security; or
	 
	 	(vii)	 	any insolvency or similar proceedings.

	7.4	 	Rights of contribution
	 
	 	 	No Obligor will be entitled to any right of contribution or indemnity from any Finance Party
in respect of any payment it may make under this Clause 7.
	 
	7.5	 	Role of the Issuing Bank
	 
	(a)	 	Nothing in this Agreement constitutes the Issuing Bank as a trustee or fiduciary of any other
person.
	 
	(b)	 	The Issuing Bank shall not be bound to account to any Lender for any sum or the profit
element of any sum received by it for its own account.
	 
	(c)	 	The Issuing Bank may accept deposits from, lend money to and generally engage in any kind of
banking or other business with any member of the Group or any other person.
	 
	(d)	 	The Issuing Bank 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.

	(e)	 	The Issuing Bank may engage, pay for and rely on the advice or services of any lawyers,
accountants, surveyors or other experts.
	 
	(f)	 	The Issuing Bank may act in relation to the Finance Documents through its personnel and
agents.
	 
	(g)	 	The Issuing Bank is not responsible for:

	 	(i)	 	the adequacy, accuracy and/or completeness of any information (whether oral or
written) supplied by the Issuing Bank, the Agent, the Security Agent, the Arranger, an
Obligor or any other person given in or in connection with any Finance Document; or
	 
	 	(ii)	 	the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document or any other agreement, arrangement or document entered into, made or
executed in anticipation of or in connection with any Finance Document.

32

 

	7.6	 	Exclusion of liability
	 
	(a)	 	Without limiting Clause 7.6(b), the Issuing Bank will not be liable for any action taken by
it under or in connection with any Finance Document, unless directly caused by its gross
negligence or wilful misconduct.
	 
	(b)	 	No Party (other than the Issuing Bank) may take any proceedings against any officer, employee
or agent of the Issuing Bank in respect of any claim it might have against the Issuing Bank 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 Issuing Bank may rely on
this Clause.
	 
	7.7	 	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 Guarantee Facility Lender confirms to
the Issuing Bank 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, those listed in Clauses 28.14(a) to
(d).

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SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

	8	 	REPAYMENT OF REVOLVING FACILITY LOANS AND BANK GUARANTEES
	 
	8.1	 	Repayment of Revolving Facility Loans
	 
	 	 	Each Borrower shall repay each Revolving Facility Loan on the
relevant Repayment Date.
	 
	8.2	 	Repayment of Bank Guarantees
	 
	(a)	 	Subject to paragraph (b) of this Clause 8.2, each Borrower shall repay each Bank Guarantee
requested by that Borrower on the Termination Date or the Extension Date should the Borrowers
successfully apply to the Agent to extend the term of the Facilities pursuant to Clause 8.3
(Extension Date).
	 
	(b)	 	Where the Agent has agreed that the Expiry Date for a Bank Guarantee shall extend beyond the
Termination Date (or, if applicable the Extension Date) the relevant Borrower shall provide
full cash cover on terms acceptable to the Agent by the Termination Date (or, if applicable
the Extension Date) until the Expiry Date and shall repay any such Bank Guarantee on the
Expiry Date.
	 
	(c)	 	For the avoidance of doubt, in relation to this Clause 8.2 (Repayment of Bank Guarantees)
only, the term ‘repay’ shall mean the cancellation of a Bank Guarantee in accordance with its
terms or as otherwise agreed between the Borrowers and the Agent.
	 
	8.3	 	Extension Date
	 
	(a)	 	The Borrowers may apply to the Agent in writing no later than 60 days after the first
anniversary of Amendment Date 2 for approval from the Agent (acting on the instructions of the
Lenders) to extend the term of the Facilities to the Extension Date. For the avoidance of
doubt, CHL expressly authorises CNV to act on its behalf with regard to the delivery of any
written application pursuant to this Clause 8.3.
	 
	(b)	 	The Agent (acting on the instructions of the Lenders, acting in their absolute discretion)
may approve or decline any written application made by the Borrowers (or CNV for itself and on
behalf of CHL) pursuant to paragraph (a) of this Clause 8.3.
	 
	(c)	 	If the Agent (acting on the instructions of the Lenders) agrees to extend the term of the
Facilities Date to the Extension Date pursuant to this Clause 8.3, the Borrowers shall pay an
extension fee to be agreed between the Borrowers and the Agent (on the instructions of the
Majority Lenders) at the time such approval is agreed.
	 
	9	 	PREPAYMENT AND CANCELLATION
	 
	9.1	 	Illegality
	 
	 	 	If it becomes unlawful in any applicable jurisdiction for a Lender or the Issuing Bank to
perform any of its obligations as contemplated by this Agreement or to fund or maintain its
participation in any Utilisation:

	 	(a)	 	that Lender or the Issuing Bank shall promptly notify the Agent upon becoming
aware of that event;
	 
	 	(b)	 	upon the Agent notifying the Borrowers:

34

 

	 	(i)	 	the Commitment of that Lender will be immediately cancelled;
and/or
	 
	 	(ii)	 	the Issuing Bank shall not be obliged to issue any Bank
Guarantee;

	 	(c)	 	each relevant Borrower shall use its best endeavours to procure the release of
any outstanding Bank Guarantee;
	 
	 	(d)	 	the Guarantee Facility shall cease to be available for the issue of a Bank
Guarantee;
	 
	 	(e)	 	each Borrower shall:

	 	(i)	 	repay that Lender’s participation in the Utilisations made to
it on the last day of the Interest Period for each Utilisation occurring after
the Agent has notified the Borrowers or, if earlier, the date specified by the
Lender in the notice delivered to the Agent (being no earlier than the last day
of any applicable grace period permitted by law); and
	 
	 	(ii)	 	repay that Lender’s participation in or, as the case may be,
the Issuing Bank’s maximum contingent liability under any Bank Guarantee
requested by the Borrowers on the Expiry Date of that Bank Guarantee or, if
earlier, the date specified by the Lender or, as the case may be, the Issuing
Bank in the notice delivered to the Agent (being no earlier than the last day
of any applicable grace period permitted by law).

	9.2	 	Voluntary cancellation
	 
	 	 	The Borrowers may, if they give the Agent not less than 10 Business Days’ (or such shorter
period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being
a minimum amount of US$1,000,000) of an Available Facility and, for the avoidance of doubt,
CHL expressly authorises CNV to act on its behalf with regard to giving any such notice
pursuant to this Clause 9.2. Any cancellation under this Clause 9.2 in respect of any
Facility shall reduce the Commitment of each Lender rateably under that Facility.
	 
	9.3	 	Voluntary prepayment of Revolving Facility Loans
	 
	 	 	A Borrower may if it gives the Agent not less than 5 Business Days’ (or such shorter period
as the Majority Revolving Facility Lenders may agree) prior notice, prepay the whole or any
part of a Revolving Facility Loan (but if in part, being an amount that reduces the amount
of the Revolving Facility Loan by a minimum amount of US$1,000,000) and, for the avoidance
of doubt, prepayments under this Clause 9.3 shall include any interest accrued on the amount
prepaid (subject to Break Costs) without penalty.
	 
	9.4	 	Mandatory prepayment — Net Sale Proceeds
	 
	(a)	 	In this Clause 9.4:
	 
	 	 	“Net Sale Proceeds” means the cash or cash equivalent proceeds (including, when received,
the cash or cash equivalent proceeds of any deferred consideration, whether by way of
adjustment to the purchase price or otherwise, and any amount received in repayment of any
Intragroup Debt) received by a member of the Group in connection with the sale, transfer or
other disposal by any member of the Group of an asset exceeding US$100,000 (or its
equivalent in another currency or currencies) after deducting:

	 	(i)	 	fees and transaction costs properly incurred in connection with that sale,
transfer or disposal; and

35

 

	 	(ii)	 	Taxes paid or reasonably estimated by a Borrower to be payable (as certified by
that Borrower to the Agent) as a result of that sale, transfer or disposal.

	(b)	 	Each Obligor shall ensure and shall procure that each of its Subsidiaries shall ensure that
any Net Sale Proceeds are paid into the Prepayment Account for application in accordance with
Clause 9.9 (Application of Proceeds).
	 
	(c)	 	Each Obligor shall comply with Clause 9.4(b) except that: a Regulated Subsidiary shall only
have to comply to the extent that it is permitted to do so pursuant to the terms of the BSTID.

	9.5	 	Mandatory prepayment — Insurance Proceeds
	 
	(a)	 	In this Clause 9.5:
	 
	 	 	“Insurance Proceeds” means any proceeds (other than in relation to third party liabilities
that are actually applied to meet such liabilities or in relation to consequential loss
policies that are actually applied to cover operating losses, loss of profits or business
interruption or circumstances where the proceeds received are reinvested in assets
comparable or superior as to type value or quality) exceeding US$100,000 (or its equivalent
in another currency or currencies) received by any member of the Group under or pursuant to
any insurance policy (or equivalent) after the date of this Agreement.
	 
	(b)	 	Each Obligor shall ensure and shall procure that each of its Subsidiaries shall ensure that
any Insurance Proceeds are paid into the Prepayment Account for application in accordance with
Clause 9.9 (Application of Proceeds) except that a Regulated Subsidiary shall only have to
comply to the extent that it is permitted to do so pursuant to the terms of the BSTID.
	 
	9.6	 	Mandatory prepayment — Liquidation Proceeds
	 
	(a)	 	In this Clause 9.6:
	 
	 	 	“Liquidation Proceeds” means the cash or cash equivalent proceeds (including, when received,
the cash or cash equivalent proceeds of any deferred consideration, whether by way of
adjustment to the purchase price or otherwise) received by a member of the Group in
connection with an Insolvency Event after deducting fees and transaction costs properly
incurred in connection with that Insolvency Event.
	 
	(b)	 	Each Obligor shall ensure and shall procure (subject to applicable laws and regulations) that
each of its Subsidiaries shall ensure that any Liquidation Proceeds (or an equal amount) are
paid into the Prepayment Account for application in accordance with Clause 9.9 (Application of
Proceeds).
	 
	(c)	 	Clause 9.6(b) shall apply to a Regulated Subsidiary to the extent that it is permitted to do
so pursuant to the terms of the BSTID.
	 
	9.7	 	Mandatory prepayment — Termination Proceeds
	 
	(a)	 	In this Clause 9.7:
	 
	 	 	“Termination Proceeds” means the cash or cash equivalent proceeds (including, when received,
the cash or cash equivalent proceeds of any deferred consideration) received by a member of
the Group in connection with a termination payment, however defined, made in relation to any
agreements, financial or otherwise, entered into by an Obligor and its

36

 

	 	 	Subsidiary thereof, after deducting any amounts required to be utilised by the relevant
Obligor or Subsidiary thereof.

	(b)	 	Each Obligor shall ensure and shall procure that their Subsidiaries shall ensure that any
Termination Proceeds (or an equal amount) are paid into the Prepayment Account for application
in accordance with Clause 9.10 (Application of Proceeds).
	 
	(c)	 	Clause 9.7(b) shall apply to a Regulated Subsidiary to the extent that it is permitted to do
so pursuant to the terms of the BSTID.
	 
	9.8	 	Prepayment Account
	 
	(a)	 	Each Obligor shall ensure and procure that each of its Subsidiaries shall ensure that all
Prepayment Proceeds (or an equal amount) are paid directly into (or as soon as practicable
after receipt are transferred into) the Prepayment Account.
	 
	(b)	 	Within five Business Days after the date (the “Prepayment Receipt Date”) on which any such
Prepayment Proceeds have been received by any member of the Group (or have become Prepayment
Proceeds), CNV shall notify the Agent of the Prepayment Receipt Date, the amount in US Dollars
equal or equivalent to those Prepayment Proceeds and the proposed date of prepayment of those
Prepayment Proceeds (the “Prepayment Date”) (which must be at least five Business Days after
the date of that notice).
	 
	(c)	 	No amount may be withdrawn or transferred from the Prepayment Account except:

	 	(i)	 	to make the prepayments required under Clause 9.11 (Application of Proceeds);
or
	 
	 	(ii)	 	with the prior consent of all the Lenders.

	(d)	 	CNV hereby irrevocably authorises the Agent to procure the withdrawal of amounts credited to
the Prepayment Account and apply such amounts against cancellations and prepayments which are
due under this Agreement in accordance with Clause 9.11 (Application of Proceeds).
	 
	9.9	 	Operating Account
	 
	(a)	 	Each Obligor shall ensure and procure each of its Subsidiaries shall ensure that all Proceeds
are paid in accordance with the Forecast Model directly into (or as soon as practicable after
receipt are transferred into the Operating Account but in any event no later than the
subsequent Repayment Date.
	 
	(b)	 	CNV may continue to make withdrawals from the Operating Account in accordance with the
Forecast Model until the occurrence of a Default.
	 
	(c)	 	After the occurrence of a Default, CNV hereby irrevocably authorises the Agent to procure the
transfer of all amounts in the Operating Account to the Collection Account or to procure the
withdrawal of such amounts and apply such amounts against repayments, cancellations and
prepayments which are due under this Agreement in accordance with Clause 9.11 (Application of
Proceeds).
	 
	9.10	 	Collection Account
	 
	(a)	 	Each Obligor shall ensure and procure that each of its Subsidiaries shall ensure that all
Proceeds are paid in accordance with the Forecast Model directly into (or as soon as
practicable after receipt are transferred into) the Collection Account but in any event no
later than the subsequent Repayment Date.

37

 

	(b)	 	No amount may be withdrawn or transferred from the Collection Account except:

	 	(i)	 	to make the payments required under Clause 9.11 (Application of Proceeds); or
	 
	 	(ii)	 	with the prior consent of all the Lenders.

	(c)	 	CNV irrevocably authorises the Agent to procure the withdrawal of amounts credited to the
Collection Account and apply such amounts against cancellations, repayments and prepayments
which are due under this Agreement in accordance with Clause 9.11 (Application of Proceeds).
	 
	(d)	 	Within five Business Days after the date (the “Receipt Date”) on which any Proceeds have been
received by any member of the Group (or have become Proceeds), CNV shall notify the Agent of
the Receipt Date, the amount in US Dollars equal or equivalent to those Proceeds and, if CNV
elects to prepay, the proposed date of prepayment of those Proceeds (the “Collection Date”)
(which must be at least five Business Days after the date of that notice).
	 
	9.11	 	Application of Proceeds
	 
	(a)	 	Any Proceeds, Prepayment Proceeds and, after the occurrence of an Event of Default, the
monies standing to the credit of the Operating Account shall be applied in the following
order, in each case until the relevant Utilisations or other liabilities have been satisfied
in full:

	 	(i)	 	first, in prepayment and permanent reduction pro rata of the Revolving Facility
Loans;
	 
	 	(ii)	 	second, in cancellation pro rata of any Available Commitment under the
Revolving Facility; and
	 
	 	(iii)	 	third, to provide cash cover for any Bank Guarantee issued under the Guarantee
Facility.

	(b)	 	Any Proceeds, Prepayment Proceeds and monies standing to the credit of the Operating Account,
to be applied in repayment and prepayment of any Revolving Facility Loan under Clause 9.11(a)
shall be applied on the earlier of the Prepayment Date, the Collection Date and the Repayment
Date relating to that Revolving Facility Loan.
	 
	9.12	 	Right of replacement of a single Lender or Issuing Bank
	 
	 	 	If:

	 	(a)	 	any sum payable to any Lender or Issuing Bank by an Obligor is required to be
increased under Clause 14.2(c) (Tax gross-up); or
	 
	 	(b)	 	any Lender or Issuing Bank claims indemnification from the Borrowers under
Clause 14.3 (Tax indemnity) or Clause 15.1 (Increased costs),

	 	 	the Borrowers may, whilst the circumstance giving rise to the requirement or indemnification
continues:

	 	(i) 	 	 

	 	(A)	 	(if the circumstance relates to a Lender) arrange for the
transfer of the whole (but not part only) of that Lender’s Commitment and
participations in the Utilisations to a new or existing Lender willing to
accept that transfer

38

 

	 	 	 	and acceptable to the Borrowers and the remaining Lenders of the relevant
Facility; or
	 
	 	(B)	 	(if the circumstance relates to the Issuing Bank) arrange for
the cancellation of its appointment as Issuing Bank and the appointment of a
new Issuing Bank acceptable to the Borrowers and the Lenders and the transfer
of any contingent liability of the Issuing Bank to the new Issuing Bank; or

	 	(ii) 	 	 

	 	(A)	 	(if the circumstance relates to a Lender) with the prior
consent of all the other Lenders, give the Agent notice of cancellation of the
Commitment of that Lender and its intention to procure the repayment of that
Lender’s participation in the Utilisations granted by that Lender, whereupon
the Commitment of that Lender shall immediately be reduced to zero; or
	 
	 	(B)	 	(if the circumstance relates to the Issuing Bank) give the
Agent notice of cancellation of its appointment as Issuing Bank and its
intention to procure either the reduction of the Issuing Bank’s contingent
liability under any Bank Guarantee to zero or the provision of full cash cover
in respect of the Issuing Bank’s maximum contingent liability under each
outstanding Bank Guarantee.

	 	 	 	On the last day of each Interest Period which ends after the Borrowers have given
notice under this paragraph (ii) (or, if earlier, the date specified by the
Borrowers in that notice), the Borrowers shall repay that Lender’s participation in
that Utilisation granted by that Lender or, as the case may be, provide full cash
cover in respect of any Bank Guarantee issued by the Issuing Bank.

	9.13	 	Replacement of a Non-Consenting Lender or Non-Funding Lender
	 
	(a)	 	In this Clause 9.13 and Clause 9.14 (Replacement of Lender);

	 	(i)	 	“Non-Consenting Lender” means any Lender which does not agree to consent,
waiver or amendment if:

	 	(A)	 	the Borrowers or the Agent have requested a consent under or
waiver or amendment of any provision of any Finance Document;
	 
	 	(B)	 	that consent, waiver or amendment requires the agreement of all
the Lenders; and
	 
	 	(C)	 	the Majority Lenders have agreed to that consent, waiver or
amendment.

	 	(ii)	 	“Non-Funding Lender” means:

	 	(A)	 	any Lender which has failed to make or participate in any
Utilisation as required by this Agreement; or
	 
	 	(B)	 	any Lender which has given notice to the Borrowers or the Agent
that it does not intend to make or participate in any Utilisation as required
by this Agreement or has repudiated its obligation to do so.

	(b)	 	If:

	 	(i)	 	any Lender becomes a Non-Consenting Lender; or
	 
	 	(ii)	 	any Lender becomes a Non-Funding Lender,

39

 

	 	the Borrowers or the Majority Lenders may, if it gives or, as the case may be, they give the
Agent and that Lender not less than 30 days’ prior notice, arrange for the transfer of the
whole (but not part only) of that Lender’s Commitment and participations in the Utilisations
to a new or existing Lender willing to accept that transfer and acceptable to the Borrowers
and the remaining Lenders of the relevant Facility.

	9.14	 	Replacement of a Lender
	 
	 	 	The replacement of a Lender pursuant to Clause 9.12 (Right of replacement of a single Lender
or Issuing Bank) or Clause 9.14 (Replacement of a Non-Consenting Lender or Non-Funding
Lender) shall be subject to the following conditions:

	 	(a)	 	no Finance Party shall have any obligation to find a replacement Lender;
	 
	 	(b)	 	any replacement of a Non-Consenting Lender must take place no later than 180
days after the earlier of (A) the date the Non-Consenting Lender notified the Agent of
its refusal to agree to the relevant consent, waiver or amendment and (B) the deadline
(being not less than 30 days after the Lender received the request for the relevant
consent, waiver or amendment) by which the Non-Consenting Lender failed to reply to
that request.
	 
	 	(c)	 	any Lender replaced pursuant to Clause 9.12 (Right of replacement of a single
Lender or Issuing Bank) or Clause 9.12 (Replacement of a Non-Consenting Lender or
Non-Funding Lender) shall not be required to refund, or to pay or surrender to any
other Lender, any of the fees or other amounts received by that Lender under any
Finance Document; and
	 
	 	(d)	 	any replacement pursuant to Clause 9.12 (Right of replacement of a single
Lender or Issuing Bank) or Clause 9.13 (Replacement of a Non-Consenting Lender or
Non-Funding Lender) of a Lender which is the Agent shall not affect its role as the
Agent.

	9.15	 	Restrictions
	 
	(a)	 	Any notice of cancellation or prepayment given by any Party under this Clause 9 shall be
irrevocable and, unless a contrary indication appears in this Agreement, specify the date or
dates upon which the relevant cancellation or prepayment is to be made and the amount of that
cancellation or prepayment.
	 
	(b)	 	Any prepayment under this Agreement shall be made together with accrued interest on the
amount prepaid and, subject to any Break Costs, without premium or penalty.
	 
	(c)	 	Unless a contrary indication appears in this Agreement, any part of the Revolving Facility
which is prepaid may be reborrowed in accordance with the terms of this Agreement.
	 
	(d)	 	No Borrower shall repay or prepay all or any part of the Utilisations or cancel all or any
part of the Commitments except at the times and in the manner expressly provided for in this
Agreement.
	 
	(e)	 	Unless a contrary indication appears in this Agreement, no amount of the Total Commitments
cancelled under this Agreement may be subsequently reinstated.
	 
	(f)	 	If the Agent receives a notice under this Clause 9 it shall promptly forward a copy of that
notice to either the Borrowers or the affected Lender, as appropriate.

40

 

SECTION 5

COSTS OF UTILISATION

	10	 	INTEREST
	 
	10.1	 	Calculation of interest
	 
	 	 	The rate of interest on each Revolving Facility Loan for each Interest Period is the
percentage rate per annum which is the aggregate of the applicable:

	 	(a)	 	Margin;
	 
	 	(b)	 	LIBOR; and
	 
	 	(c)	 	Mandatory Cost, if any.

	10.2	 	Payment of interest
	 
	 	 	The Borrower to which a Revolving Facility Loan has been made shall pay accrued interest on
that Revolving Facility Loan on the last day of each Interest Period (and, if the Interest
Period is longer than six Months, on the dates falling at six monthly intervals after the
first day of the Interest Period).
	 
	10.3	 	Default interest
	 
	(a)	 	If an Obligor fails to pay any amount payable by it under a Finance Document on its due date,
interest shall accrue on the overdue amount from the due date up to the date of actual payment
(both before and after judgment) at the Default Interest Rate. Any interest accruing under
this Clause 10.3 shall be immediately payable by the Obligor on demand by the Agent.
	 
	(b)	 	If any overdue amount consists of all or part of a Revolving Facility Loan which became due
on a day which was not a Repayment Date relating to that Revolving Facility Loan:

	 	(i)	 	the first Interest Period for that overdue amount shall have a duration equal
to the unexpired portion of the current Interest Period relating to that Revolving
Facility Loan; and
	 
	 	(ii)	 	the rate of interest applying to the overdue amount during that first Interest
Period shall be the sum of one per cent. and the rate which would have applied if the
overdue amount had not become due.

	(c)	 	Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue
amount at the end of each Interest Period applicable to that overdue amount but will remain
immediately due and payable.
	 
	10.4	 	Notification of rates of interest
	 
	 	 	The Agent shall promptly notify the relevant Lenders and the relevant Borrower of the
determination of a rate of interest under this Agreement.

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	11	 	INTEREST PERIODS
	 
	11.1	 	Selection of Interest Periods
	 
	(a)	 	A Borrower may select an Interest Period for a Revolving Facility Loan in the Utilisation
Request for that Revolving Facility Loan.
	 
	(b)	 	Subject to this Clause 11 at any time during the Availability Period, a Borrower may select
an Interest Period of one (1), two (2), three (3) or six (6) Months or any other period agreed
between that Borrower and the Agent (acting on the instructions of all the Lenders
participating in the relevant Revolving Facility Loan).
	 
	(c)	 	An Interest Period for a Revolving Facility Loan shall not extend beyond the Termination Date
(or, if applicable, the Extension Date) applicable to the Revolving Facility.
	 
	(d)	 	A Revolving Facility Loan has one Interest Period only.
	 
	11.2	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period will instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not).
	 
	12	 	CHANGES TO THE CALCULATION OF INTEREST
	 
	12.1	 	Absence of quotations
	 
	 	 	Subject to Clause 12.2 (Market disruption), if LIBOR is to be determined by reference to the
Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on
the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations
of the remaining Reference Banks.
	 
	12.2	 	Market disruption
	 
	(a)	 	If a Market Disruption Event occurs in relation to a Revolving Facility Loan for any Interest
Period, then the rate of interest on each Lender’s share of that Revolving Facility Loan for
the Interest Period shall be the percentage rate per annum which is the sum of:

	 	(i)	 	the Margin;
	 
	 	(ii)	 	the rate notified to the Agent by that Lender as soon as practicable and in any
event before interest is due to be paid in respect of that Interest Period, to be that
which expresses as a percentage rate per annum the cost to that Lender of funding its
participation in that Revolving Facility Loan from whatever source it may reasonably
select; and
	 
	 	(iii)	 	the Mandatory Cost, if any, applicable to that Lender’s participation in the
Revolving Facility Loan.

	(b)	 	In this Agreement “Market Disruption Event” means:

	 	(i)	 	at or about noon on the Quotation Day for the relevant Interest Period the
Screen Rate is not available and none or only one of the Reference Banks supplies a
rate to the Agent to determine LIBOR for US Dollars and Interest Period; or
	 
	 	(ii)	 	before close of business in London on the Quotation Day for the relevant
Interest Period, the Agent receives notifications from a Lender or Lenders (whose

42

 

	 	 	 	participations in a Revolving Facility Loan exceed 35 per cent. of that Revolving
Facility Loan) that the cost to it of obtaining matching deposits in the Relevant
Interbank Market would be in excess of LIBOR.

	12.3	 	Alternative basis of interest or funding
	 
	(a)	 	If a Market Disruption Event occurs and the Agent or the Borrowers so require, the Agent and
the Borrowers shall enter into negotiations (for a period of not more than thirty days) with a
view to agreeing a substitute basis for determining the rate of interest.
	 
	(b)	 	Any alternative basis agreed pursuant to Clause 12.3(a) shall, with the prior consent of all
the Lenders and the Borrowers, be binding on all Parties.
	 
	12.4	 	Break Costs
	 
	(a)	 	Each Borrower shall, within three Business Days of demand by a Finance Party, pay to that
Finance Party its Break Costs attributable to all or any part of a Revolving Facility Loan or
Unpaid Sum being paid by that Borrower on a day other than the Repayment Date for that
Revolving Facility Loan or Unpaid Sum.
	 
	(b)	 	Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a
certificate confirming the amount of its Break Costs for any Interest Period in which they
accrue.
	 
	13	 	FEES
	 
	13.1	 	Commitment fee
	 
	(a)	 	Subject to this Clause 13.1, CNV shall pay to the Agent (for the account of each Lender) a
fee in US Dollars computed on a daily basis at an annual percentage rate (such rate being
equal to 50 per cent. of the applicable Margin on such day) on that Lender’s Available
Commitment under each Facility.
	 
	(b)	 	The commitment fee is payable on the last day of each successive period of three Months from
the date of this Agreement until the Termination Date (or, if applicable, the Extension Date)
and, if cancelled, for all of the cancelled amount of the relevant Lender’s Commitment at the
time the cancellation is effective.
	 
	13.2	 	Structuring fee
	 
	 	 	CNV shall pay to the Arranger a structuring fee in the amount and at the times agreed in the
Fee Letter.
	 
	13.3	 	Agency fee
	 
	 	 	CNV shall pay to the Agent (for its own account) an agency fee in the amount and at the
times agreed in the Fee Letter.
	 
	13.4	 	Security Agent’s fee
	 
	 	 	CNV shall pay to the Security Agent (for its own account) an agency fee in the amount and at
the times agreed in the Fee Letter.

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	13.5	 	Fee payable in respect of Bank Guarantee
	 
	(a)	 	Each Borrower shall pay to the Issuing Bank any applicable fronting fee in respect of any
Bank Guarantee requested by it on the outstanding amount of any Bank Guarantee (after
deducting from such amount the amount of the Issuing Bank’s (or its Affiliate’s)
participation, if any, in such Bank Guarantee) from the period of its issue until its Expiry
Date.
	 
	(b)	 	Each Borrower shall pay to the Agent (for the account of any Guarantee Facility Lender) a
guarantee fee in US Dollars computed on a daily basis at an annual percentage rate (such rate
being equal to the applicable Margin) on the outstanding amount of any Bank Guarantee
requested by it for the period from the issue of that Bank Guarantee until its Expiry Date.
This fee shall be distributed according to each Lender’s Proportion of that Bank Guarantee.
	 
	(c)	 	The fee on a Bank Guarantee shall be payable on the first day of each successive period of
three Months (or such shorter period as shall end on the Expiry Date for that Bank Guarantee)
starting on the date of issue of that Bank Guarantee.
	 
	(d)	 	If a Borrower’s cash covers any part of a Bank Guarantee then:

	 	(i)	 	the fronting fee payable to the Issuing Bank and the guarantee fee payable for
the account of each Guarantee Facility Lender shall continue to be payable until the
expiry of the Bank Guarantee;
	 
	 	(ii)	 	that Borrower will be entitled to withdraw the interest accrued on the cash
cover to pay those fees.

	13.6	 	Payment of fees
	 
	(a)	 	The Borrowers (as applicable) shall pay the fees set out in Clause 13.1 (Commitment fees) and
Clause 13.5 (Fee payable in respect of Bank Guarantee) to the Agent’s bank account pursuant to
Clause 34.1 (Payments to Agent).
	 
	(b)	 	Any other fees shall be paid in accordance with the terms of the Fee Letter.

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SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

	14	 	TAX GROSS UP AND INDEMNITIES
	 
	14.1	 	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)	 	in relation to a Tax Deduction in respect of Tax imposed by the United Kingdom,
a Lender (other than a Lender within sub-paragraph (ii) which is beneficially entitled
to interest payable to that Lender in respect of an advance under a Finance Document
and is:

	 	(A)	 	a Lender:

	 	1.	 	which is a bank (as defined for the purpose of
section 879 of the Income Tax Act) making an advance under a Finance
Document; or
	 
	 	2.	 	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 Income Tax Act) 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 Lender which is:

	 	1.	 	a company resident in the United Kingdom for
United Kingdom tax purposes;
	 
	 	2.	 	a partnership each member of which is:

	 	(a)	 	a company so resident in the United
Kingdom; or
	 
	 	(b)	 	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 (for the purposes of section
11(2) of the Taxes Act) the whole of any share of interest
payable in respect of that advance that falls to it by reason of
sections 114 and 115 of the Taxes Act;

	 	3.	 	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 (for the purposes
of section 11(2) of the Taxes Act) of that company; or

	 	(C)	 	a Treaty Lender with respect to the United Kingdom;

45

 

	 	(ii)	 	in relation to a Tax Deduction in respect of Tax imposed by the Netherlands:

	 	(A)	 	a Lender; or
	 
	 	(B)	 	a Treaty Lender with respect to the Netherlands;

	 	(iii)	 	a building society (as defined for the purpose of section 880 of the Income
Tax Act.

	 	 	“Tax Confirmation” means a confirmation by a Lender that the person beneficially entitled to
interest payable to that Lender in respect of an advance under a Finance Document is either:

	 	(i)	 	a company resident in the United Kingdom for United Kingdom tax purposes; or
	 
	 	(ii)	 	a partnership each member of which is:

	 	(A)	 	a company so resident in the United Kingdom; or
	 
	 	(B)	 	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 (for the purposes of
section 11(2) of the Taxes Act) the whole of any share of interest payable in
respect of that advance that falls to it by reason of sections 114 and 115 of
the Taxes Act; or

	 	 	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 (for the purposes of section
11(2) of the Taxes Act) of that company.
	 
	 	 	“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 either the increase in a payment made by an Obligor to a Finance Party
under Clause 14.2 (Tax gross-up) or a payment under Clause 14.3 (Tax indemnity).
	 
	 	 	“Treaty Lender” means, in respect of a jurisdiction, a Lender entitled under the provisions
of a double taxation treaty to receive payments of interest from a person resident in that
jurisdiction without a Tax Deduction (subject to the completion of any necessary procedural
formalities.)
	 
	 	 	“UK Non-Bank Lender” means:

	 	(i)	 	where a Lender becomes a Party on the day on which this Agreement is entered
into, a Lender listed in Schedule 1 (The Original Parties); and
	 
	 	(ii)	 	where a Lender becomes a Party after the day on which this Agreement is entered
into, a Lender which gives a Tax Confirmation in the Transfer Certificate which it
executes on becoming a Party.

	(b)	 	Unless a contrary indication appears, in this Clause 14 a reference to “determines” or
“determined” means a determination made in the absolute discretion of the person making the
determination.

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	14.2	 	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 Borrowers shall promptly upon becoming aware that an Obligor must make a Tax Deduction
(or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent
accordingly. Similarly, a Lender shall notify the Agent on becoming so aware in respect of a
payment payable to that Lender. If the Agent receives such notification from a Lender it shall
notify the Borrowers 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)	 	An Obligor is not required to make an increased payment to a Lender under Clause 14.2(c) for
a Tax Deduction in respect of Tax imposed on a payment of interest on a Loan, 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 it was 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 concession of any
relevant taxing authority; or
	 
	 	(ii) 	 	 

	 	(A)	 	the relevant Lender is a Qualifying Lender solely under
sub-paragraph (i)(B) of the definition of Qualifying Lender;
	 
	 	(B)	 	an officer of HM Revenue & Customs has given (and not revoked)
a direction (a “Direction”) under section 931 of the Income Tax Act (as that
provision has effect on the date on which the relevant Lender became a Party)
which relates to that payment and that Lender has received from that Obligor or
the Borrowers a certified copy of that Direction; and
	 
	 	(C)	 	the payment could have been made to the Lender without any Tax
Deduction in the absence of that Direction; or

	 	(iii)	 	the relevant Lender is a Qualifying Lender solely under sub-paragraph (i)(B)
of the definition of Qualifying Lender and it has not, other than by reason of any
change after the date of this Agreement in (or in the interpretation, administration or
application of) any law, or any published practice or concession of any relevant taxing
authority, given a Tax Confirmation to the Borrowers; or
	 
	 	(iv)	 	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 Clause 14.2(g).

	(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.

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	(f)	 	Within thirty days of making either a Tax Deduction or any payment required in connection
with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for
the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance
Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to
the relevant taxing authority.
	 
	(g)	 	A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is
entitled shall co-operate in completing any procedural formalities necessary for that Obligor
to obtain authorisation to make that payment without a Tax Deduction.
	 
	(h)	 	A UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into
gives a Tax Confirmation to the Borrowers by entering into this Agreement.
	 
	(i)	 	A UK Non-Bank Lender shall promptly notify the Borrowers and the Agent if there is any change
in the position from that set out in the Tax Confirmation.
	 
	14.3	 	Tax indemnity
	 
	(a)	 	The Borrowers shall (within three Business Days of demand by the Agent) pay to a Protected
Party an amount equal to the loss, liability or cost which that Protected Party determines
will be or has been (directly or indirectly) suffered for or on account of Tax by that
Protected Party in respect of a Finance Document.
	 
	(b)	 	Clause 14.3(a) 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 14.2
(Tax gross-up); or
	 
	 	(B)	 	would have been compensated for by an increased payment under
Clause 14.2 (Tax gross-up) but was not so compensated solely because one of the
exclusions in Clause 14.2(d) applied.

	(c)	 	A Protected Party making, or intending to make, a claim under Clause 14.3(a) shall promptly
notify the Agent of the event which will give, or has given, rise to the claim, following
which the Agent shall notify the Borrowers.
	 
	(d)	 	A Protected Party shall, on receiving a payment from an Obligor under this Clause 14.3,
notify the Agent.
	 
	14.4	 	Tax Credit
	 
	 	 	If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

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	 	(a)	 	a Tax Credit is attributable either to an increased payment of which that Tax
Payment forms part, or to 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 required to be made by the Obligor.
	 
	14.5	 	Stamp taxes
	 
	 	 	The Borrowers shall pay and, within three Business Days of demand, indemnify each Finance
Party against any cost, loss or liability that Finance Party incurs in relation to all stamp
duty, stamp duty land tax, registration and other similar Taxes payable in respect of any
Finance Document.
	 
	14.6	 	Value added tax
	 
	(a)	 	All amounts set out, or expressed to be payable under a Finance Document by any Party to a
Finance Party which (in whole or in part) constitute the consideration for VAT purposes shall
be deemed to be exclusive of any VAT which is chargeable on such supply, and accordingly,
subject to Clause 14.6(c), 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 the consideration) an amount equal to the amount of the VAT (and
such Finance Party shall promptly provide an appropriate VAT invoice to such Party).
	 
	(b)	 	If VAT is 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 (the “Relevant 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 Relevant Party an amount equal to any credit or repayment
from the relevant tax authority which it reasonably determines relates to the VAT chargeable
on that supply.
	 
	(c)	 	Where a Finance Document requires any Party to reimburse a Finance Party for any costs or
expenses, that Party shall also at the same time pay and indemnify the Finance Party against
all VAT incurred by the Finance Party in respect of the costs or expenses to the extent that
the Finance Party reasonably determines that neither it nor any other member of any group of
which it is a member for VAT purposes is entitled to credit or repayment from the relevant tax
authority in respect of the VAT.
	 
	15	 	INCREASED COSTS
	 
	15.1	 	Increased costs
	 
	(a)	 	Subject to Clause 15.3 (Exceptions) the Borrowers shall, within three Business Days of a
demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs
incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of
or any change in (or in the interpretation, administration or application of) any law or
regulation or (ii) compliance with any law or regulation made after the date of this
Agreement.

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	(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.
	 
	15.2	 	Increased cost claims
	 
	(a)	 	A Finance Party intending to make a claim pursuant to Clause 15.1 (Increased costs) shall
notify the Agent of the event giving rise to the claim, following which the Agent shall
promptly notify the Borrowers.
	 
	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a
certificate confirming the amount of its Increased Costs.
	 
	15.3	 	Exceptions
	 
	(a)	 	Clause 15.1 (Increased costs) does not apply to the extent any Increased Cost is:

	 	(i)	 	attributable to a Tax Deduction required by law to be made by an Obligor;
	 
	 	(ii)	 	compensated for by Clause 14.3 (Tax indemnity) (or would have been compensated
for under Clause 14.3 (Tax indemnity) but was not so compensated solely because any of
the exclusions in Clause 14.3(b) applied);
	 
	 	(iii)	 	compensated for by the payment of the Mandatory Cost; or
	 
	 	(iv)	 	attributable to the wilful breach by the relevant Finance Party or its
Affiliates of any law or regulation.

	(b)	 	In this Clause 15.3, a reference to a “Tax Deduction” has the same meaning given to the term
in Clause 14.1 (Definitions).
	 
	16	 	OTHER INDEMNITIES
	 
	16.1	 	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; and
	 
	 	(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

50

 

	 	 	 	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.

	16.2	 	Other indemnities
	 
	 	 	The Borrowers 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 33 (Sharing among the Finance Parties);
	 
	 	(c)	 	funding, or making arrangements to fund, its participation in a Utilisation
requested by a Borrower in a Utilisation Request but not made by reason of the
operation of any one or more of the provisions of this Agreement (other than by reason
of default or negligence by that Finance Party alone); or
	 
	 	(d)	 	a Utilisation (or part of a Utilisation) not being prepaid in accordance with a
notice of prepayment given by a Borrower or as required by this Agreement.

	16.3	 	Indemnity to the Agent and the Security Agent
	 
	 	 	The Borrowers shall promptly indemnify the Agent and the Security Agent against any cost,
loss or liability incurred by the Agent and the Security 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.

	17	 	MITIGATION BY THE LENDERS
	 
	17.1	 	Mitigation
	 
	(a)	 	Each Finance Party shall, in consultation with the Borrowers, 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 9.1 (Illegality), Clause 14 (Tax
gross-up and indemnities) or Clause 15 (Increased costs) including (but not limited to)
transferring its rights and obligations under the Finance Documents to another Affiliate or
Facility Office.
	 
	(b)	 	Clause 17.1(a) does not in any way limit the obligations of any Obligor under the Finance
Documents.

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	17.2	 	Limitation of liability
	 
	(a)	 	The Borrowers shall 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 Borrowers shall promptly on demand pay the Agent, the Security Agent and the Arranger
the amount of all reasonable costs and expenses (including legal fees) incurred by any of
them in connection with the negotiation, preparation, printing, execution and syndication
of:

	 	(a)	 	this Agreement and any other documents referred to in this Agreement; and
	 
	 	(b)	 	any other Finance Documents executed after the date of this Agreement.

	18.2	 	Amendment costs
	 
	 	 	If an Obligor requests an amendment, waiver or consent, the Borrowers shall, within three
Business Days of demand, reimburse the Agent and the Security Agent for the amount of all
costs and expenses (including legal fees) reasonably incurred by the Agent or the Security
Agent in responding to, evaluating, negotiating or complying with that request or
requirement.
	 
	18.3	 	Enforcement costs
	 
	 	 	The Borrowers shall, within three Business Days of demand, pay to each Finance Party the
amount of all costs and expenses (including legal fees) incurred by that Finance Party in
connection with the enforcement of, or the preservation of any rights under, any Finance
Document.
	 
	18.4	 	Transaction undertaking to pay
	 
	(a)	 	The Borrowers undertake to pay each Finance Party within three Business Days of demand an
amount equal to any liability, damages, loss, cost or expense (including legal fees, costs and
expenses) reasonably incurred by that Finance Party or any of its Affiliates or any of its (or
its Affiliates’) directors, officers, employees or agents (each a “Relevant Party”) arising
out of, in connection with or based on any actual or potential action, claim, suit,
investigation or proceeding arising out of, in connection with or based on:

	 	(i)	 	the use of proceeds of any Revolving Facility Loan; or
	 
	 	(ii)	 	the use of any Bank Guarantee,

	 	 	except to the extent finally judicially determined to have resulted from the gross
negligence or wilful misconduct of that Relevant Party.
	 
	(b)	 	The Borrowers undertake to pay each Finance Party, within three Business Days of demand, an
amount equal to any cost or expense (including legal fees, costs and expenses) incurred by any
Relevant Party in connection with investigating, preparing,

52

 

	 	 	pursuing or defending any action, claim, suit, investigation or proceeding arising out of,
in connection with or based on any of the above, whether or not pending or threatened.

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SECTION 7

GUARANTEE AND SECURITY

	19	 	GUARANTEE AND INDEMNITY
	 
	19.1	 	Guarantee and indemnity
	 
	 	 	Each Guarantor irrevocably and unconditionally jointly and severally:

	 	(a)	 	guarantees to each Finance Party punctual performance by each other Obligor of
all that Obligor’s obligations under the Finance Documents;
	 
	 	(b)	 	undertakes with each Finance Party that whenever another Obligor does not pay
any amount when due under or in connection with any Finance Document, that Guarantor
shall immediately on demand pay that amount as if it was the principal obligor; and
	 
	 	(c)	 	agrees with each Finance Party that if any obligation guaranteed by it is or
becomes unenforceable, invalid or illegal, it will, as an independent and primary
obligation, indemnify that Finance Party immediately on demand against any cost, loss
or liability it incurs as a result of an Obligor not paying any amount which would, but
for such unenforceability, invalidity or illegality, have been payable by it under any
Finance Document on the date when it would have been due. The amount payable by a
Guarantor under this indemnity will not exceed the amount it would have had to pay
under this Clause 19 if the amount claimed had been recoverable on the basis of a
guarantee.

	19.2	 	Continuing guarantee
	 
	 	 	This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Obligor under the Finance Documents, regardless of any intermediate payment
or discharge in whole or in part.
	 
	19.3	 	Reinstatement
	 
	 	 	If any discharge, release or arrangement (whether in respect of the obligations of any
Obligor or any security for those obligations or otherwise) is made by a Finance Party in
whole or in part on the basis of any payment, security or other disposition which is avoided
or must be restored in insolvency, liquidation or otherwise, without limitation, then the
liability of each Guarantor under this Clause 19 will continue or be reinstated as if the
discharge, release or arrangement had not occurred.
	 
	19.4	 	Waiver of defences
	 
	 	 	The obligations of each Guarantor under this Clause 19 will not be affected by an act,
omission, matter or thing which, but for this Clause 19, would reduce, release or prejudice
any of its obligations under this Clause 19 (without limitation and whether or not known to
it or any Finance Party) including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Obligor or
other person;
	 
	 	(b)	 	the release of any other Obligor or any other person under the terms of any
composition or arrangement with any creditor of any member of the Group or any other
person;

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	 	(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 Finance Document or
any other document or security including any change in the purpose of, any extension of
or any increase in any facility or the addition of any new facility under any Finance
Document or other document or security;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document or any other document or security; or
	 
	 	(g)	 	any insolvency or similar proceedings.

	19.5	 	Immediate recourse
	 
	 	 	Each Guarantor waives any right it may have of first requiring any Finance Party (or any
trustee or agent on its behalf) to proceed against or enforce any other rights or security
or claim payment from any person before claiming from that Guarantor under this Clause 19.
This waiver applies irrespective of any law or any provision of a Finance Document to the
contrary.
	 
	19.6	 	Appropriations
	 
	 	 	Until all amounts which may be or become payable by the Obligors under or in connection with
the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee
or agent on its behalf) may:

	 	(a)	 	refrain from applying or enforcing any other moneys, security or rights held or
received by that Finance Party (or any trustee or agent on its behalf) in respect of
those amounts, or apply and enforce the same in such manner and order as it sees fit
(whether against those amounts or otherwise) and no Guarantor shall be entitled to the
benefit of the same; and
	 
	 	(b)	 	hold in an interest-bearing suspense account any moneys received from any
Guarantor or on account of any Guarantor’s liability under this Clause 19.

	19.7	 	Deferral of Guarantors’ rights
	 
	 	 	Until all amounts which may be or become payable by the Obligors under or in connection with
the Finance Documents have been irrevocably paid in full and unless the Agent (or, as the
case may be, the Security Agent) otherwise directs, no Guarantor will exercise any rights
which it may have by reason of performance by it of its obligations under the Finance
Documents or by reason of any amount being payable, or litigation arising under this Clause
19:

	 	(a)	 	to be indemnified by an Obligor;
	 
	 	(b)	 	to claim any contribution from any other guarantor of any Obligor’s obligations
under the Finance Documents;

55

 

	 	(c)	 	to take the benefit (in whole or in part and whether by way of subrogation or
otherwise) of any rights of the Finance Parties under the Finance Documents or of any
other guarantee or security taken pursuant to, or in connection with, the Finance
Documents by any Finance Party;
	 
	 	(d)	 	to bring legal or other proceedings for an order requiring any Obligor to make
any payment, or perform any obligation, in respect of which any Guarantor has given a
guarantee, undertaking or indemnity under Clause 19.1 (Guarantee and indemnity);
	 
	 	(e)	 	to exercise any right of set-off against any Obligor; and/or
	 
	 	(f)	 	to claim or prove as a creditor of any Obligor in competition with any Finance
Party.

	 	 	If a Guarantor receives any benefit, payment or distribution in relation to such rights it
shall hold that benefit, payment or distribution to the extent necessary to enable all
amounts which may be or become payable to the Finance Parties by the Obligors under or in
connection with the Finance Documents to be repaid in full on trust for the Finance Parties
and shall promptly pay or transfer the same to the Agent or as the Agent may direct for
application in accordance with Clause 34 (Payment mechanics) of this Agreement.
	 
	19.8	 	Release of Guarantors’ right of contribution
	 
	 	 	If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with the
terms of the Finance Documents for the purpose of any sale or other disposal of that
Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

	 	(a)	 	that Retiring Guarantor is released by each other Guarantor from any liability
(whether past, present or future and whether actual or contingent) to make a
contribution to any other Guarantor arising by reason of the performance by any other
Guarantor of its obligations under the Finance Documents; and
	 
	 	(b)	 	each other Guarantor waives any rights it may have by reason of the performance
of its obligations under the Finance Documents to take the benefit (in whole or in part
and whether by way of subrogation or otherwise) of any rights of the Finance Parties
under any Finance Document or of any other security taken pursuant to, or in connection
with, any Finance Document where such rights or security are granted by or in relation
to the assets of the Retiring Guarantor.

	19.9	 	Additional security
	 
	 	 	This guarantee is in addition to and is not in any way prejudiced by any other guarantee or
security now or subsequently held by any Finance Party
	 
	19.10	 	Limitations
	 
	 	 	The guarantee of any Guarantor giving a guarantee other than in respect of its Subsidiary is
subject to the following limitations:

	 	(a)	 	The guarantee of any Guarantor incorporated in England shall be deemed to be
given only to the extent that it would not result in this guarantee constituting
unlawful financial assistance within the meaning of Section 151 of the Companies Act
1985
	 
	 	(b)	 	The guarantee of any Dutch Guarantor shall be deemed to have been given only to
the extent that such guarantee does not violate the prohibition on financial

56

 

	 	 	 	assistance contained in Sections 2:98c and 2:207c of the Dutch Civil Code
(Burgerlijk Wetboek).
	 
	 	(c)	 	The guarantee of any Additional Guarantor is subject to any limitations
relating to that Additional Guarantor set out in any relevant Accession Letter.

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SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	20	 	REPRESENTATIONS
	 
	 	 	Each Obligor shall make the representations and warranties set out in this Clause 20 on the
date set out in Clause 20.28 (Times when representations made) in relation to itself and
each of its Subsidiaries unless otherwise stated in this Agreement.
	 
	20.1	 	Status
	 
	(a)	 	It and each of its Subsidiaries is duly incorporated and validly existing under the law of
its jurisdiction of incorporation.
	 
	(b)	 	Otherwise as specifically notified by the Borrowers to the Agent in writing, it and each of
its Subsidiaries has the power to own or utilise the assets necessary to carry out its
business and carry on its business as it is being, and is proposed to be, conducted.
	 
	20.2	 	Binding obligations
	 
	 	 	The obligations expressed to be assumed by it in each Finance Document to which it is or
will be a party are legal, valid, binding and enforceable, subject to:

	 	(a)	 	any applicable Reservations; or
	 
	 	(b)	 	in the case of any Security Document, any applicable Perfection Requirements.

	20.3	 	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:

	 	(a)	 	conflict with:

	 	(i)	 	any law or regulation applicable to it;
	 
	 	(ii)	 	its or any of its Subsidiaries’ constitutional documents; or
	 
	 	(iii)	 	any agreement or instrument binding upon it or any of its
Subsidiaries or any of its or any of its Subsidiaries’ assets or constitute a
default or termination event (however described), in each case to the extent
that it would reasonably be expected to have a Material Adverse Effect;

	 	(b)	 	(except as provided in any Security Document or to the extent Permitted
Security) result in the existence of, or oblige it or any of its Subsidiaries to create
any Security over it or any of its Subsidiaries assets.

	20.4	 	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
or will be a party and the transactions contemplated by those Finance Documents.
	 
	20.5	 	Validity and admissibility in evidence
	 
	 	 	All Authorisations required:

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	 	(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 the transactions
contemplated by the Finance Documents;
	 
	 	(b)	 	to make the Finance Documents to which it is a party admissible in evidence in
its Relevant Jurisdictions, subject to any applicable Reservations; and
	 
	 	(c)	 	to enable it to create the Security purported to be created by it pursuant to
any Security Document and, subject to any applicable Reservations, to ensure that such
Security has the priority and ranking it is expressed to have,

	 	 	have been obtained or effected and are in full force and effect, save for complying with any
applicable Perfection Requirements, or will have been obtained or effected and will be in
full force and effect before the first Utilisation Request.
	 
	20.6	 	Governing law and enforcement
	 
	 	 	Subject to any applicable Reservations:

	 	(a)	 	the choice of law specified in each Finance Document as the governing law of
each Finance Document will be recognised and enforced in its Relevant Jurisdictions;
and
	 
	 	(b)	 	any judgment obtained in England in relation to a Finance Document (or in the
jurisdiction of the governing law of that Finance Document) will be recognised and
enforced in its Relevant Jurisdictions and, in relation to a Finance Document governed
by a law other than English law, in the jurisdiction of the governing law of that
Finance Document.

	20.7	 	No filing or stamp taxes
	 
	 	 	Subject to any applicable Reservations under the law of its Relevant Jurisdictions it is not
necessary that the Finance Documents be filed, recorded or enrolled with any court or other
authority in that jurisdiction or that any stamp, registration, notarial or similar taxes or
fees be paid on or in relation to the Finance Documents or the transactions contemplated by
the Finance Documents.
	 
	20.8	 	No default
	 
	(a)	 	No Event of Default is continuing or would reasonably be expected to result from the making
of any Utilisation or the entry into, performance of, or any transaction contemplated by, any
Finance Document.
	 
	(b)	 	No other event or circumstance is outstanding which constitutes (or which would, with the
lapse of time, the giving of notice, the making of any determination under the relevant
document or any combination of the foregoing, constitute) a default or termination event
(however described) under any other agreement or instrument which is binding on it or any of
its Subsidiaries or to which its (or any of its Subsidiaries’) assets are subject which would
reasonably be expected to have a Material Adverse Effect.
	 
	20.9	 	No breach of law
	 
	 	 	It has not (and none of its Subsidiaries has) breached any law or regulation which breach
has, or would reasonably be expected to have, a Material Adverse Effect.

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	20.10	 	Representation in relation to Forecast Model
	 
	(a)	 	Any factual information provided by or on behalf of any member of the Group for the purposes
of the Forecast Model was true and accurate in all material respects as at the date it was
provided or as at the date (if any) at which it is stated.
	 
	(b)	 	The financial projections contained in the Forecast Model have been prepared on the basis of
recent historical information and on the basis of reasonable assumptions.
	 
	(c)	 	Nothing has occurred or been omitted from the Forecast Model and no information has been
given or withheld that results in the information contained in the Forecast Model being untrue
or misleading in any material respect.
	 
	20.11	 	Financial statements
	 
	(a)	 	Its Original Financial Statements prepared in accordance with the Applicable Accounting
Principles consistently applied.
	 
	(b)	 	Its Original Financial Statements fairly represent its financial condition and operations as
at the end of and for the relevant financial year.
	 
	(c)	 	There has been no material adverse change in its assets, business, financial condition (or,
in the case of CNV, the assets, business or financial condition of the Group) since the date
to which its Original Financial Statements were last audited.
	 
	(d)	 	The financial year end of the Group and each member of the Group is March other than members
incorporated in Chile, Mexico, Panama, Indonesia, the Cayman Islands and China (including the
Hong Kong Special Administrative Region) for whom the financial year end is December.
	 
	20.12	 	Pari passu ranking
	 
	 	 	Subject to any applicable Reservations without limiting Clause 20.14 (Security), 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.
	 
	20.13	 	No proceedings pending or threatened
	 
	(a)	 	No litigation, arbitration or administrative proceedings of or before any court, arbitral
body or agency (including any arising from or relating to Environmental Law) which, if
adversely determined, would reasonably be expected to have a Material Adverse Effect have been
started or (to the best of its knowledge and belief) threatened against it or any of its
Subsidiaries, nor are there any circumstances to the best of its knowledge and belief likely
to give rise to any such litigation, arbitration or administrative proceedings.
	 
	(b)	 	No labour disputes which would reasonably be expected to have a Material Adverse Effect have
been started or (to the best of its knowledge and belief) threatened against it or any of its
Subsidiaries, nor are there any circumstances to the best of its knowledge and belief likely
to give rise to any such disputes.
	 
	20.14	 	Security
	 
	(a)	 	Subject to any applicable Perfection Requirements, each Security Document creates (or, once
entered into, will create) in favour of the Security Agent for the benefit of the Finance

60

 

	 	 	Parties, the Security which it is expressed to create fully perfected and, subject to any
applicable Reservations, with the ranking and priority it is expressed to have.

	(b)	 	The constitutional documents of any Obligor do not and would not restrict or inhibit in any
manner any transfer of any shares of any member of the Group (other than, for the avoidance of
doubt, any share transfer restrictions provided for in the constitutional documents of CNV)
which are expressed to be (or are required by this Agreement to be or become) subject to any
Security under any Security Document.
	 
	20.15	 	Legal and beneficial ownership
	 
	 	 	It is the absolute legal and beneficial owner of all the assets over which it purports to
create Security pursuant to any Security Document, free from any Security, other than
Permitted Security.
	 
	20.16	 	Assets
	 
	 	 	It and each of its Subsidiaries has good and marketable title to, or valid leases or
licences of, or is otherwise entitled to use (in each case, on arm’s length terms), all
material assets necessary for the conduct of its business as it is being, and is proposed to
be, conducted.
	 
	20.17	 	Environmental Laws and Licences
	 
	 	 	It and each of its Subsidiaries has:

	 	(a)	 	complied with all Environmental Laws to which it may be subject;
	 
	 	(b)	 	all Environmental Licences required in connection with its business; and
	 
	 	(c)	 	complied with the terms of those Environmental Licences,

	 	 	in each case where failure to do so would reasonably be expected to have a Material Adverse
Effect.
	 
	20.18	 	Group Structure
	 
	 	 	The Group Structure Chart shows:

	 	(a)	 	each member of the Group and any person in whose shares any member of the Group
has an interest (and the percentage of the issued share capital held, and whether
legally or beneficially, by that member), as at the date of this Agreement; and
	 
	 	(b)	 	the jurisdiction of incorporation or establishment of each person shown in it.

	20.19	 	No Financial Indebtedness, Guarantees or Security
	 
	(a)	 	No Obligor nor any Regulated Subsidiary has any Financial Indebtedness other than Permitted
Financial Indebtedness and Existing Indebtedness.
	 
	(b)	 	No Obligor nor any Regulated Subsidiary has issued any guarantee other than a Permitted
Guarantee.
	 
	(c)	 	No Security or Quasi Security exists over all or any of an Obligor’s or a Regulated
Subsidiary’s assets other than Permitted Security.

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	20.20	 	Shares
	 
	(a)	 	The shares of any member of the Group which are expressed to be (or are required by this
Agreement to be or become) subject to any Security under any Security Document are issued,
fully paid, non-assessable, freely transferable (which, in the case of CNV, shall be to the
extent permitted under the laws of the Netherlands) and constitute shares in the capital of
limited companies, and there are no moneys or liabilities outstanding or payable in respect of
any such share.
	 
	(b)	 	Other than in relation to Permitted Financial Indebtedness and the Registration Rights
Agreement, there are no agreements in force or corporate resolutions passed which require or
might require the present or future issue or allotment of any share capital of any member of
the Group (including any option or right of pre emption, conversion or exchange).
	 
	(c)	 	The shares of any member of the Group which are expressed to be (or are required by this
Agreement to be or become) subject to any Security under any Security Document constitute all
the share capital of the relevant member of the Group.
	 
	20.21	 	Intellectual Property
	 
	 	 	Each member of the Group owns or has licensed to it on arm’s length terms all material
Intellectual Property for the conduct of its business as it is being, and is proposed to be,
conducted.
	 
	20.22	 	Solvency
	 
	(a)	 	No Obligor is insolvent or unable to pay its debts (including subordinated and contingent
debts), nor could it be deemed by a court to be unable to pay its debts within the meaning of:

	 	(i)	 	(in the case of a company incorporated in England or Wales) Section 123(1)(e)
or 123(2) of the Insolvency Act 1986; or
	 
	 	(ii)	 	(in the case of any other company) the law of the jurisdiction in which it is
incorporated,

	 	 	nor, in any such case, will it become so in consequence of entering into any Finance
Document, and/or performing any transaction contemplated by any Finance Document.
	 
	(b)	 	No Obligor has taken any corporate action nor have any legal proceedings or other procedure
or step been taken, started or threatened in relation to anything referred to in Clause 25.7
(Insolvency proceedings).
	 
	20.23	 	Taxes
	 
	(a)	 	Each member of the Group has paid all Taxes required to be paid by it within the time period
allowed for payment without incurring any penalties for non payment other than any Taxes:

	 	(i)	 	being contested by it in good faith and in accordance with the relevant
procedures;
	 
	 	(ii)	 	which have been disclosed to the Arranger and for which adequate reserves are
being maintained in accordance with GAAP;
	 
	 	(iii)	 	where payment can be lawfully withheld and will not result in the imposition
of any penalty nor in any Security ranking in priority to the claims of any Finance
Party

62

 

	 	 	 	under any Finance Document or to any Security created under any Security Document;
and
	 
	 	(iv)	 	which are owed by members of the Group (excluding Obligors and Regulated
Subsidiaries) where the aggregate amount of unpaid Taxes in a financial year across the
Group (excluding Obligors and Regulated Subsidiaries) is less than US$50,000.

	(b)	 	It is not, and will not apply to be, a member of a group (as such group is defined pursuant
to the provisions of the Value Added Tax Act 1994) which includes any person which is not a
member of the Group.
	 
	20.24	 	Centre of main interests and establishments
	 
	 	 	For the purposes of The Council of the European Union Regulation No. 1346/2000 on Insolvency
Proceedings (the “Regulation”), its centre of main interest (as that term is used in Article
3(1) of the Regulation) is situated in its jurisdiction of incorporation and it has no
“establishment” (as that term is used in Article 2(h) of the Regulation) in any other
jurisdiction.
	 
	20.25	 	Pensions
	 
	(a)	 	Other than as specifically notified by the Borrowers to the Agent in writing, no Obligor nor
any Regulated Subsidiary has any material liability in respect of any pension scheme and there
are no circumstances which would give rise to such a liability.
	 
	(b)	 	Each Obligor and each Regulated Subsidiary is in compliance in all material respects with all
applicable material laws and material contracts relating to and the governing provisions of
the pension schemes maintained by or for the benefit of any member of the Group and/or any of
its employees.
	 
	20.26	 	Insurances
	 
	(a)	 	The insurances required by Clause 23.20 (Insurance) are in full force and effect as required
by this Agreement.
	 
	(b)	 	No event or circumstance has occurred, and there has been no failure to disclose a fact,
which would entitle any insurer to reduce or avoid its liability under any such insurance
where such event, circumstance or failure would reasonably be expected to have a Material
Adverse Effect.
	 
	20.27	 	Documents
	 
	(a)	 	The documents provided to the Agent under Clause 4.2 (Initial conditions precedent) or Clause
27 (Changes to the Obligors) are true, complete and accurate and in full force and effect, in
each case as at the date any such documents are provided to the Agent.
	 
	(b)	 	Any certified copy of a document provided to the Agent under Clause 4.2 (Initial conditions
precedent relating to Utilisation before Amendment Date 1) or Clause 27 (Changes to the
Obligors) is a true, complete and accurate copy of the original document and the original
document was in full force and effect, in each case as at the date any such document is
provided to the Agent.
	 
	20.28	 	Times when representations made
	 
	(a)	 	The representations and warranties set out in this Clause 20 are:

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	 	(i)	 	made by each party as set out in Clause 20(a) (Representations) on the date of
this Agreement;
	 
	 	(ii)	 	deemed to be made by each party as set out in Clause 20(a) (Representations) on
the date of the initial Utilisation Request and the Initial Utilisation Date by
reference to the facts and circumstances then existing.

	(b)	 	The Repeating Representations (and, in the case of Clause 20.28(b)(ii), the representations
and warranties set out in Clause 20.5 (Validity and admissibility in evidence) and Clause 20.7
(No filing or stamp taxes)) are deemed to be made by each party as set out in Clause 20
(Representations) on:

	 	(i)	 	the date of each Utilisation Request, the first day of each Interest Period and
each Calculation Date; and
	 
	 	(ii)	 	in the case of an Additional Guarantor, the day on which the company becomes
(or it is proposed that the company becomes) an Additional Guarantor.

	 	 	in each case by reference to the facts and circumstances then existing.
	 
	20.29	 	Dutch Obligors
	 
	 	 	No works council (ondernemingsraad) has the right to give advice in relation to the entry
into and performance of this Agreement.
	 
	21	 	INFORMATION UNDERTAKINGS
	 
	 	 	The undertakings in this Clause 21 remain in force from the date of this Agreement for so
long as any amount is outstanding under the Finance Documents or any Commitment is in force.
	 
	21.1	 	Financial statements
	 
	 	 	CNV shall supply to the Agent in sufficient copies for all the Lenders as soon as the same
become available, but in any event within 90 days after the end of each of its financial
years:

	 	(a)	 	its audited consolidated financial statements for that financial year as set
out in its annual report delivered to the Securities and Exchange Commission on Form
20-F; and
	 
	 	(b)	 	the audited financial statements of each Obligor (other than CNV) for that
financial year.

	21.2	 	Quarterly financial statements
	 
	(a)	 	CNV shall supply to the Agent in sufficient copies for all the Lenders as soon as the same
become available, but in any event within 90 days after the end of each Accounting Quarter its
consolidated financial statements for that Accounting Quarter.
	 
	(b)	 	Each set of quarterly financial statements delivered pursuant to Clause 21.2(a) shall
include:

	 	(i)	 	a consolidated profit and loss account for the relevant Accounting Quarter and
a consolidated cash flow statement and profit and loss account for the financial year
to date;

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	 	(ii)	 	a consolidated balance sheet as at the end of the relevant Accounting Quarter;
	 
	 	(iii)	 	a comparison of actual performance with the performance projected by the
Budget for the relevant Accounting Quarter and for the financial year to date;
	 
	 	(iv)	 	a statement of Capital Expenditure, investments, acquisitions and disposals
made during the relevant Accounting Quarter and during the financial year to date; and
	 
	 	(v)	 	a schedule showing the effect of excluding the proportionate consolidation of
associated companies on the quarterly financial statements as allowed under Dutch GAAP
but not permitted under U.S. GAAP.

	21.3	 	Compliance Certificate/Provisional Compliance
	 
	(a)	 	CNV shall supply to the Agent in sufficient copies for all the Lenders on each Accounting
Quarter a Compliance Certificate signed by its Chief Financial Officer and one director of CNV
which shall:

	 	(i)	 	confirm that all financial covenants have been complied with under all Existing
Indebtedness; and
	 
	 	(ii)	 	set out (in reasonable detail, including separate identification of the Capital
Expenditure incurred in relation to Zhumadian Concession since the end of the previous
Accounting Quarter) computations as to compliance with Clause 22 (Financial covenants)
as at the date at which those financial statements were drawn up attaching the
financial statements delivered pursuant to Clause 21.1 (Financial statements) or
quarterly accounts delivered pursuant to Clause 21.2 (Quarterly financial statements)
and shall be reported on by CNV’s auditors in the form agreed by CNV and all the
Lenders before the date of this Agreement.

	(b)	 	CNV shall also supply to the Agent, in sufficient copies for all the Lenders, as soon as
practicable following the last day of the most recent Accounting Quarter but in any event
within 35 days of that date, provisional confirmations as to compliance with Clause 22
(Financial covenants) accompanied by calculations based on the accounting records of the Group
(including, without limitation, for the most recent Accounting Quarter) and detailing any
reasonable estimates that may have been necessary to undertake such calculations.
	 
	21.4	 	Forecast Model confirmation and financial projections
	 
	 	 	CNV shall supply to the Agent in sufficient copies for all the Lenders on each Accounting
Quarter a certificate signed by its Chief Financial Officer and one director of CNV which
shall:

	 	(a)	 	confirm that the Forecast Model remains correct, complete and in full force and
effect as at the date of the most recent Accounting Quarter or contain a revised
Forecast Model that has been agreed in advance with the Lenders which shall contain
CNV’s forecast for its future cashflows;
	 
	 	(b)	 	provide financial projections for the twelve month period following the date of
the applicable Accounting Quarter demonstrating that CNV is able to comply with the
provisions of Clause 22 (Financial Covenants) with the exception of Clause 22.1(d);

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	 	(c)	 	provide financial projections for the twelve month period following 31 March
each year demonstrating CNV is able to comply with the provisions of Clause 22.1(d);
and
	 
	 	(d)	 	provide an estimated value of the Capital Expenditure that will be incurred by
the Group during the three month period following the date of the applicable Accounting
Quarter.

	21.5	 	Forecast Model
	 
	(a)	 	CNV shall notify the Agent when it is necessary to amend the Forecast Model and shall present
the revised Forecast Model with any relevant documentation or evidence explaining the basis
for the revision.
	 
	(b)	 	The Agent shall confirm in writing to CNV if it accepts the revised Forecast Model presented
to the Agent pursuant to Clause 21.4(a) and, as of the date of such confirmation, the revised
Forecast Model shall apply.
	 
	21.6	 	Group Structure Chart
	 
	 	 	CNV shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so
requests) a copy of the Group Structure Chart on a quarterly basis and at any time that the
structure of the Group changes.
	 
	21.7	 	Requirements as to financial statements
	 
	(a)	 	Each set of financial statements delivered by CNV pursuant to Clause 21.1 (Financial
statements) shall be certified by a director of CNV as fairly representing its (or, as the
case may be, its consolidated) financial condition and operations as at the end of and for the
period in relation to which those financial statements were drawn up.
	 
	(b)	 	CNV shall procure that each set of financial statements of an Obligor (other than CNV)
delivered pursuant to Clause 21.1 (Financial statements) is prepared using GAAP, accounting
practices and financial reference periods consistent with those applied in the preparation of
the Original Financial Statements for that Obligor (other than CNV) unless, in relation to any
set of financial statements, it notifies the Agent that there has been a change in GAAP, the
accounting practices or reference periods and its auditors (or, if appropriate, the auditors
of that Obligor) deliver to the Agent:

	 	(i)	 	a description of any change necessary for those financial statements to reflect
the GAAP, accounting practices 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 Agent, to enable the Lenders to determine whether Clause 22 (Financial covenants)
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.
	 
	(c)	 	If CNV notifies the Agent of a change in accordance with Clause 21.7(b) the Borrowers and the
Agent shall enter into negotiations in good faith with a view to agreeing any

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	 	 	amendments to this Agreement which are necessary as
a result of the change. To the extent practicable
these amendments will be such as to ensure that the
change does not result in any material alteration
in the commercial effect of the obligations in this
Agreement. If any amendments are agreed they shall
take effect and be binding on each of the Parties
in accordance with their terms.

	21.8	 	Information: miscellaneous
	 
	 	 	The Borrowers shall supply to the Agent (in sufficient copies for all the Lenders, if the
Agent so requests):

	 	(a)	 	all documents dispatched by the Borrowers to its shareholders (or any class of
them) or its creditors generally at the same time as they are dispatched;
	 
	 	(b)	 	promptly upon becoming aware of them, the details of any litigation,
arbitration or administrative proceedings which are current, threatened or pending
against any member of the Group, and which might, if adversely determined, have a
Material Adverse Effect; and
	 
	 	(c)	 	promptly, such further information regarding the financial condition, business
and operations of any member of the Group as any Finance Party (through the Agent) may
reasonably request.

	21.9	 	Notification of default
	 
	(a)	 	Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to
remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a
notification has already been provided by another Obligor).
	 
	(b)	 	Promptly upon a request by the Agent, the Obligor shall supply to the 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).
	 
	21.10	 	Use of websites
	 
	(a)	 	The Borrowers may satisfy its obligation under this Agreement to deliver any information in
relation to those Lenders (the “Website Lenders”) who accept this method of communication by
posting this information onto an electronic website designated by the Borrowers and the Agent
(the “Designated Website”) if:

	 	(i)	 	the Agent expressly agrees (after consultation with each of the Lenders) that
it will accept communication of the information by this method;
	 
	 	(ii)	 	both the Borrowers and the Agent are aware of the address of and any relevant
password specifications for the Designated Website; and
	 
	 	(iii)	 	the information is in a format previously agreed between the Borrowers and the
Agent.

	 	 	If any Lender (a “Paper Form Lender”) does not agree to the delivery of information
electronically then the Agent shall notify the Borrowers accordingly and the Borrowers shall
supply the information to the Agent (in sufficient copies for each Paper Form Lender) in
paper form. In any event the Borrowers shall supply the Agent with at least one copy in
paper form of any information required to be provided by it.

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	(b)	 	The Agent shall supply each Website Lender with the address of and any relevant password
specifications for the Designated Website following designation of that website by the
Borrowers and the Agent.
	 
	(c)	 	The Borrowers shall promptly upon becoming aware of its occurrence notify the Agent if:

	 	(i)	 	the Designated Website cannot be accessed due to technical failure;
	 
	 	(ii)	 	the password specifications for the Designated Website change;
	 
	 	(iii)	 	any new information which is required to be provided under this Agreement is
posted onto the Designated Website;
	 
	 	(iv)	 	any existing information which has been provided under this Agreement and
posted onto the Designated Website is amended; or
	 
	 	(v)	 	the Borrowers become aware that the Designated Website or any information
posted onto the Designated Website is or has been infected by any electronic virus or
similar software.

	 	 	If the Borrowers notify the Agent under Clause 21.10(c)(i) or Clause 21.10(c)(v), all
information to be provided by the Borrowers under this Agreement after the date of that
notice shall be supplied in paper form unless and until the Agent and each Website Lender is
satisfied that the circumstances giving rise to the notification are no longer continuing.
	 
	(d)	 	Any Website Lender may request, through the Agent, one paper copy of any information required
to be provided under this Agreement which is posted onto the Designated Website. The Borrowers
shall comply with any such request within ten Business Days.
	 
	21.11	 	“Know your customer” checks
	 
	(a)	 	If:

	 	(i)	 	the introduction of or any change in (or in the interpretation, administration
or application of) any law or regulation made after the date of this Agreement;
	 
	 	(ii)	 	any change in the status of an Obligor after the date of this Agreement; or
	 
	 	(iii)	 	a proposed assignment or transfer by a Lender of any of its rights and
obligations under this Agreement to a party that is not a Lender prior to such
assignment or transfer,

	 	 	obliges the Agent or any Lender (or, in the case of Clause 21.11(a)(iii), any prospective
new Lender) to comply with “know your customer” or similar identification procedures in
circumstances where the necessary information is not already available to it, each Obligor
shall promptly upon the request of the Agent or any Lender supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent (for itself or
on behalf of any Lender) or any Lender (for itself or, in the case of the event described in
Clause 21.11(a)(iii), on behalf of any prospective new Lender) in order for the Agent, such
Lender or, in the case of the event described in Clause 21.11(a)(iii), any prospective new
Lender to carry out and be satisfied it has complied with all necessary “know your customer”
or other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.
	 
	(b)	 	Each Lender shall promptly upon the request of the Agent supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent (for itself) in
order for the Agent to carry out and be satisfied it has complied with all necessary “know

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	 	 	your customer” or other similar checks under all applicable laws and regulations pursuant to
the transactions contemplated in the Finance Documents.

	(c)	 	CNV shall, by not less than 10 Business Days’ prior written notice to the Agent, notify the
Agent (which shall promptly notify the Lenders) of its intention to request that one of its
Subsidiaries becomes an Additional Obligor pursuant to Clause 27 (Changes to the Obligors).
	 
	(d)	 	Following the giving of any notice pursuant to Clause 21.11(c), if the accession of such
Additional Obligor obliges the Agent or any Lender to comply with “know your customer” or
similar identification procedures in circumstances where the necessary information is not
already available to it, CNV shall promptly upon the request of the Agent or any Lender
supply, or procure the supply of, such documentation and other evidence as is reasonably
requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on
behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective
new Lender to carry out and be satisfied it has complied with all necessary “know your
customer” or other similar checks under all applicable laws and regulations pursuant to the
accession of such Subsidiary to this Agreement as an Additional Obligor.
	 
	22	 	FINANCIAL COVENANTS
	 
	22.1	 	Financial condition
	 
	 	 	CNV shall ensure that:

	 	(a)	 	the ratio of EBITDA to Net Interest Expense for each Relevant Period ending on
an Calculation Date will not be less than a ratio of 3:1;
	 
	 	(b)	 	subject to Clauses 22.3 (Exceptions) and 22.4 (Net Borrowings to EBITDA Ratio
Reduction), the ratio of Net Borrowings to EBITDA for each Relevant Period ending on a
Calculation Date will not exceed the ratio of 4.0:1;
	 
	 	(c)	 	the ratio of Net Senior Borrowings to RAV for each Relevant Period ending on
that Calculation Date will not exceed the ratio of 1.1:1;
	 
	 	(d)	 	the ratio of Cash Flow to Debt Service for each Relevant Period ending on 31
March and 30 September of each financial year will not be less than 1.0:1; and
	 
	 	(e)	 	the ratio of Net Interest Expense to EBITDA of the English Companies for each
Relevant Period ending on a Calculation Date will not be less than a ratio of 2.5:1.

	22.2	 	Financial covenant calculations
	 
	(a)	 	Capital Expenditure, Cash Flow, Debt Service, EBITDA, Interest Expense, Net Borrowings, Net
Interest Expense, RAV, Total Borrowings and Working Capital shall be calculated and
interpreted on a consolidated basis in accordance with the Applicable Accounting Principles
(for the avoidance of doubt applying (except in the case of RAV) the principle of proportional
consolidation of joint venture companies allowed under Dutch GAAP) and shall be expressed in
US Dollars.
	 
	(b)	 	Capital Expenditure, Cash Flow, EBITDA, Interest Expense, Net Interest Expense and Working
Capital shall be determined from the financial statements of the Accounting Group and
Compliance Certificates delivered under Clause 21.1 (Financial statements) and Clause 21.3
(Compliance Certificate/Provisional Compliance). For the avoidance of doubt,

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	 	 	such determinations shall be made by applying the principle of proportional consolidation of
joint venture companies as allowed under Dutch GAAP.
	 
	(c)	 	For the purpose of this Clause 22, no item shall be included or excluded more than once in
any calculation.

	22.3	 	Exceptions
	 
	 	 	Subject to Clause 22.4 (Net Borrowings to EBITDA Ratio Reduction), if certain payments due
to Aguas de Panamá S.A. (as reflected in the Forecast Model) are not received by 1 December
2009, the Lenders agree that the ratio of Net Borrowings to EBITDA will be amended for
Relevant Period ending on 31 December 2009 only to a ratio which shall not exceed 4.25:1.
	 
	22.4	 	Net Borrowings to EBITDA Ratio Reduction
	 
	(a)	 	If CNV completes the Secondary Equity Offering prior to the Termination Date (or, if
applicable, the Extension Date), CNV shall ensure that sufficient Secondary Proceeds are used
promptly, but in any event no later than 5 Business Days after receipt of the Secondary
Proceeds by CNV, it Subsidiaries or Affiliates, to prepay the Facilities to reduce the ratio
of Net Borrowings to EBITDA (the “Reduced Leverage Ratio”) so that, for each Relevant Period
ending on a Calculation Date, the Reduced Leverage Ratio will not exceed 3.25:1.
	 
	(b)	 	The provisions of paragraph (a) of this Clause 22.4 shall apply on and from the date on which
the reduction in the Reduced Leverage Ratio occurs until the Termination Date (or, if
applicable, the Extension Date).
	 
	22.5	 	Definitions
	 
	 	 	In this Clause 22:
	 
	 	 	“Cash Flow” means, in relation to any Relevant Period, EBITDA for that Relevant Period
adjusted:

	 	(a)	 	by deducting any increase or adding any decrease in Working Capital during that
Relevant Period;
	 
	 	(b)	 	by deducting amounts paid during the Relevant Period by the Accounting Group in
respect of Capital Expenditure net of contributions receivable from third parties other
than Capital Expenditure to the extent funded from Net Sale Proceeds, net equity
proceeds, Liquidation Proceeds, amounts utilised from this Revolving Facility Loan
relating to the Zhumadian Concession, amounts funded by CWC’s joint venture partner in
relation to the purchase of Zhumadian Concession, by reference to that partner’s
percentage interest in the equity share capital of the joint venture company to which
the Zhumadian Concession is granted, Termination Proceeds or Insurance Proceeds, other
than the proceeds of any insurance policy in relation to business interruption loss
which are added back to the total consolidated operating profit of the Accounting Group
in accordance with the Applicable Accounting Principles, permitted to be applied for
that purpose under this Agreement;
	 
	 	(c)	 	by deducting amounts paid during the Relevant Period by the Accounting Group in
cash in respect of Tax;

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	 	(d)	 	by excluding any other non-cash items taken into account in calculating EBITDA
(other than to the extent already taken into account in movements in Working Capital);
	 
	 	(e)	 	for the cash effect of extraordinary and exceptional items, to the extent that
cash was actually received or expended during the Relevant Period;
	 
	 	(f)	 	by adding the aggregate amount received during the Relevant Period by the
Accounting Group in cash in respect of any rebate of Tax;
	 
	 	(g)	 	by deducting the cost of acquisition of any shares or businesses to the extent
not included in EBITDA;
	 
	 	(h)	 	by adding the net proceeds of any sale, lease, transfer or other disposal of
assets received during that Relevant Period (after deducting the amount of any such
proceeds required to be applied in prepayment under Clause 9.6 (Mandatory prepayment —
Net Sale Proceeds); and
	 
	 	(i)	 	by deducting the amount of any dividends or other profit distributions paid in
cash by CNV during that Relevant Period which are received by CNV by way of capital
equity investment in CNV.

	 	 	“Debt Service” means, in relation to any Relevant Period, the aggregate of:

	 	(a)	 	Net Interest Expense for that Relevant Period; and
	 
	 	(b)	 	scheduled repayments, and any other scheduled payments in the nature of
principal, payable by the Accounting Group in that Relevant Period in respect of
Financial Indebtedness:

	 	(i)	 	excluding repayments under the Revolving Facility where such
amount remains available to be drawn under the Revolving Facility;
	 
	 	(ii)	 	including all capital payments falling due in relation to any
lease that would be treated as a finance lease or a capital lease under the
Applicable Accounting Principles; and
	 
	 	(iii)	 	excluding any Financial Indebtedness between any members of
the Accounting Group.

	 	 	“EBITDA” means, in relation to any Relevant Period, the total consolidated operating profit
of the Accounting Group for that Relevant Period:

	 	(a)	 	before taking into account:

	 	(i)	 	Net Interest Expense;
	 
	 	(ii)	 	Tax;
	 
	 	(iii)	 	profits (or losses) attributable to minority interests in any
member of the Accounting Group;
	 
	 	(iv)	 	all extraordinary and exceptional items; and
	 
	 	(v)	 	exchange rate gains (or losses) arising due to the
re-translation of balance sheet items and mark-to-market adjustments on
currency swaps;

	 	(b)	 	after excluding (to the extent included) any gains or losses on the disposal or
revaluation of assets (other than in the ordinary course of trading);

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	 	(c)	 	after adding any business interruption loss incurred which is covered by
insurance and which is not added back to the total consolidated operating profit of the
Accounting Group in accordance with the Applicable Accounting Principles; and
	 
	 	(d)	 	after adding back all amounts provided for depreciation and amortisation
(including acquisition goodwill).

	 	 	“Interest Expense” means, in relation to any Relevant Period, the aggregate amount of
interest and any other finance charges (whether or not paid, payable or capitalised, but for
the avoidance of doubt, excluding indexation of the Artesian Facility for that relevant
Period) accrued by the Accounting Group in that Relevant Period in respect of Total
Borrowings including:

	 	(a)	 	the interest element of leasing and hire purchase payments;
	 
	 	(b)	 	commitment fees, commissions, structuring fees and guarantee fees; and
	 
	 	(c)	 	prepayment fees,

	 	 	adjusted by:

	 	(i)	 	adding back the net amount payable (or deducting the net amount receivable) by
members of the Accounting Group in respect of that Relevant Period under any interest
or (so far as they relate to interest) currency hedging arrangements; and
	 
	 	(ii)	 	excluding any structuring fees in respect of the Facilities.

	 	 	“Net Borrowings” means, as at any particular time, Total Borrowings less Cash and Cash
Equivalent Investments at that time.
	 
	 	 	“Net Interest Expense” means, in relation to any Relevant Period, Interest Expense for that
Relevant Period less interest income of the Accounting Group in respect of that Relevant
Period to the extent received by a member of the Accounting Group in cash.
	 
	 	 	“Net Senior Borrowings” means as at any particular time, Total Borrowings less:

	 	(a)	 	Cash and Cash Equivalent Investments at that time;
	 
	 	(b)	 	Intragroup Debt; and
	 
	 	(c)	 	the amount of cash held by a member of the Accounting Group as collateral for
any Financial Indebtedness falling within the definition of Total Borrowings and which,
if released from such collateral arrangements would constitute Cash Flow of an Obligor
or Regulated Subsidiary.

	 	 	“Regulated Asset Value” or “RAV” means the regulatory asset base of BWH plc most recently
published by OFWAT for the applicable Financial Year end, adjusted for inflation to that
Financial Year end, based on the best available information and provided that where a draft
OFWAT determination is available, the figures set out in such draft OFWAT determination
shall be used, adjusted for inflation, unless otherwise agreed by the Agent.
	 
	 	 	“Relevant Period” each twelve (12) month period ending on a Calculation Date.
	 
	 	 	“Total Borrowings” means, as at any particular time, the aggregate outstanding principal,
capital or nominal amount (and any fixed or minimum premium payable on prepayment or
redemption) of the Financial Indebtedness of members of the Accounting Group.

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	 	 	For this purpose, any amount outstanding or repayable in a currency other than US Dollars
shall on that day be taken into account in its US Dollars equivalent at the rate of exchange
that would have been used had an audited consolidated balance sheet of the Accounting Group
been prepared as at that day in accordance with the Applicable Accounting Principles.
	 
	 	 	“Working Capital” means, at any time, the current assets of the Accounting Group being
realisable within one year (other than Cash and Cash Equivalent Investments) less current
liabilities due within one year (other than Financial Indebtedness).
	 
	23	 	GENERAL 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.
	 
	 	 	Authorisations and compliance with laws
	 
	23.1	 	Authorisations
	 
	(a)	 	Each Obligor shall promptly obtain, comply with and do all that is necessary to maintain in
full force and effect (and supply certified copies to the Agent of) any Authorisation required
under any applicable law or regulation of a Relevant Jurisdiction to:

	 	(i)	 	enable it to perform its obligations under the Finance Documents;
	 
	 	(ii)	 	ensure the legality, validity, enforceability or admissibility in evidence in
the Relevant Jurisdictions of any Finance Documents; and
	 
	 	(iii)	 	enable it to carry on its business as it is being conducted from time to time
if failure to obtain, comply with or maintain any such Authorisation would reasonably
be expected to have a Material Adverse Effect.

	(b)	 	Each Obligor shall ensure that the Perfection Requirements are complied with promptly and in
any event before the final date on which it is necessary to carry out any such Perfection
Requirement in order to achieve the relevant perfection, protection or priority of any
Security Document.
	 
	23.2	 	Compliance with laws
	 
	 	 	Each Obligor shall comply in all respects with all laws to which it may be subject, if
failure so to comply would reasonably be expected to have a Material Adverse Effect.
	 
	23.3	 	Environmental Laws and Licences
	 
	 	 	Each Obligor shall:

	 	(a)	 	comply with all Environmental Laws to which it may be subject;
	 
	 	(b)	 	obtain all Environmental Licences required in connection with its business; and
	 
	 	(c)	 	comply with the terms of those Environmental Licences,

	 	 	in each case where failure to do so would reasonably be expected to have a Material Adverse
Effect.

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	23.4	 	Taxes
	 
	(a)	 	Each Obligor shall pay all Taxes required to be paid by it within the time period allowed for
payment without incurring any penalties for non payment other than any penalties incurred as a
result of any late filing which would lead any Obligor to incur a penalty of not more than
£1,000.
	 
	(b)	 	Clause 23.4(a) does not apply to any Taxes:

	 	(i)	 	being contested by the relevant member of the Group in good faith and in
accordance with the relevant procedures;
	 
	 	(ii)	 	which have been disclosed in its financial statements and for which adequate
reserves are being maintained in accordance with GAAP; and
	 
	 	(iii)	 	where payment can be lawfully withheld and will not result in the imposition
of any penalty nor in any Security ranking in priority to the claims of any Finance
Party under any Finance Document or to any Security created under any Security
Document.

	(c)	 	No Obligor may change its residence for Tax purposes without the consent of the Agent, such
consent not to be unreasonably withheld or delayed.
	 
	23.5	 	Capitalisation
	 
	 	 	Each Obligor shall ensure that, at all times after the Initial Utilisation Date or, if
later, the date it becomes a Party, it has sufficient equity to be and remain in compliance
with all thin capitalisation rules applicable to it.
	 
	 	 	Restrictions on business focus
	 
	23.6	 	Merger
	 
	(a)	 	No Obligor shall enter into any amalgamation, demerger, merger, consolidation or corporate
reconstruction (without the consent of the Agent, such consent not be unreasonably withheld).
	 
	(b)	 	Clause 23.6(a) does not apply to any amalgamation, demerger, merger, consolidation or
corporate reconstruction which is a Permitted Acquisition.
	 
	23.7	 	Change of business
	 
	 	 	Each Obligor shall ensure that no substantial change is made to the general nature of the
business of any Obligor or any Regulated Subsidiary taken as a whole from that carried on by
the Group at the date of this Agreement (except with respect to any Regulated Subsidiary to
the extent permitted under the BSTID).
	 
	 	 	Restrictions on dealing with assets and Security
	 
	23.8	 	Assets
	 
	 	 	Each Obligor shall maintain in good working order and condition (ordinary wear and tear
excepted) all its assets necessary for the conduct of its business as conducted from time to
time.

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	23.9	 	Pari passu
	 
	 	 	Each Obligor shall ensure that its obligations under the Finance Documents rank at all times
at least pari passu in right of priority and payment with the claims of all its other
unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law
applying to companies generally.
	 
	23.10	 	Negative pledge
	 
	(a)	 	No Obligor shall create or permit to subsist any Security or Quasi Security except for
Security or Quasi Security which is Permitted Security over any of its assets in favour of any
person who is not an Obligor except to the extent arising under Clause 18 of the general terms
and conditions (algemene bankvoorwaarden) of any member of the Dutch Bankers’ Association
(Nederlandse Vereniging van Banken) or any similar term applied by a financial institution in
the Netherlands pursuant to its general terms and conditions.
	 
	(b)	 	Neither CNV nor CSL shall create or permit to subsist any Security or Quasi Security over
their respective shares in the entire issued share capital of Cascal S.A.
	 
	23.11	 	Disposals
	 
	(a)	 	Subject to Clause 9.6 (Mandatory prepayment — Net Sale Proceeds), no Obligor shall 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)	 	Clause 23.11(a) does not apply to any sale, lease, transfer or other disposal which is a
Permitted Disposal.
	 
	23.12	 	Arm’s length terms
	 
	 	 	No Obligor shall enter into any contract or arrangement with or for the benefit of any other
person (including any disposal to that person) other than in the ordinary course of
business, for full market value and on arm’s length terms.
	 
	 	 	Restrictions on movement of cash — cash out
	 
	23.13	 	Loans or credit
	 
	(a)	 	No Obligor shall be a creditor in respect of any Financial Indebtedness.
	 
	(b)	 	Clause 23.13(a) does not apply to Financial Indebtedness which is a Permitted Loan, Permitted
Indebtedness or Existing Indebtedness.
	 
	23.14	 	Guarantees
	 
	(a)	 	No Obligor shall issue or allow to remain outstanding any guarantee in respect of any
liability or obligation of any person.
	 
	(b)	 	Clause 23.14(a) does not apply to any guarantee which is a Permitted Guarantee.
	 
	23.15	 	Restricted payments
	 
	(a)	 	No Obligor shall pay, repay or prepay any principal, interest or other amount on or in
respect of, or redeem, purchase or defease, any Financial Indebtedness except in relation to
Permitted Financial Indebtedness or Existing Indebtedness.
	 
	(b)	 	Each Obligor (other than CNV) shall be permitted and shall (and each Obligor shall procure
that each of its Subsidiaries shall):

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	 	(i)	 	declare, pay or make any dividend or other payment or distribution of any kind
on or in respect of any of its shares in compliance with its obligations under this
Agreement and in accordance with the Forecast Model;
	 
	 	(ii)	 	ensure that, once any dividend is declared, the applicable dividend owing to
its Group member shareholder is paid directly to the account of that Group member
shareholder;
	 
	 	(iii)	 	reduce, return, purchase, repay, cancel or redeem any of its shares in
compliance with its obligations under this Agreement and in accordance with the
Forecast Model,

	 	 	subject in each case to:

	 	(A)	 	legal and regulatory constraints;
	 
	 	(B)	 	working capital requirements of that Obligor or its Subsidiaries;
	 
	 	(C)	 	any required reinvestment in the Group (provided that the Borrowers have given
notice to the Agent of their intentions); and
	 
	 	(D)	 	any applicable currency restrictions.

	(c)	 	CNV shall be permitted and shall:

	 	(i)	 	declare, pay or make any dividend or other payment or distribution (the
“Distribution”) of any kind on or in respect of any of its shares in compliance with
its obligations under this Agreement provided always that (X) such Distribution is made
out of available cashflow and (Y) CNV provides the Agent with evidence satisfactory to
the Agent (acting on the reasonable instructions of the Lenders) of available cashflow
to pay or make such Distributions and CNV’s ability to comply with the requirements of
Clause 22 (Financial Covenants) for a period of 12 months following the declaration of
such Distribution; and
	 
	 	(ii)	 	reduce, return, purchase, repay, cancel or redeem any of its shares in
compliance with its obligations under this Agreement and in accordance with the
Forecast Model.

	(d)	 	No Obligor shall enter into any agreements that shall in any way impair the ability of any
Subsidiary to pay dividends or other upstream payments.
	 
	(e)	 	Clauses 23.15(a) to (d) do not apply to payments which constitute Permitted Payments
	 
	23.16	 	Existing Finance Documents
	 
	 	 	For the avoidance of doubt, nothing in the Finance Documents operates to restrict or
otherwise prevent a member of the Group from doing anything, taking any action or exercising
any right under any document evidencing Permitted Financial Indebtedness and nothing
permitted to be done under the any document evidencing Permitted Financial Indebtedness
shall be in contravention of the Finance Documents.
	 
	 	 	Movement of cash — cash in
	 
	23.17	 	Financial Indebtedness
	 
	(a)	 	No Obligor shall incur (or agree to incur) or allow to remain outstanding any Financial
Indebtedness.

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	(b)	 	Clause 23.17(a) does not apply to Financial Indebtedness that is Permitted Financial
Indebtedness or Existing Indebtedness.
	 
	(c)	 	CNV shall ensure that on the Initial Utilisation Date all existing debt (including any
undrawn facilities), except for Existing Indebtedness and Permitted Financial Indebtedness, is
prepaid, repaid or cancelled in full and any Security in relation to it is released.
	 
	23.18	 	Issue of shares
	 
	(a)	 	No Obligor shall:

	 	(i)	 	issue any share to any person; or
	 
	 	(ii)	 	grant to any person any conditional or unconditional option, warrant or other
right to call for the issue or allotment of, subscribe for, purchase or otherwise
acquire any share of any member of the Group (including any right of pre-emption,
conversion or exchange), or alter any right attaching to any share capital of any
member of the Group.

	(b)	 	Clause 23.18(b) does not apply to the Registration Rights Agreement.
	 
	 	 	Miscellaneous
	 
	23.19	 	Security and guarantees
	 
	(a)	 	CNV shall:

	 	(i)	 	promptly notify the Agent if:

	 	(A)	 	any new member of the Group is incorporated;
	 
	 	(B)	 	any member of the Group ceases to be a Dormant Company; or
	 
	 	(C)	 	any business that is material in the context of the business of
the member of the Group that acquires that business is acquired; and

	 	(ii)	 	within 30 days of request by the Agent (acting reasonably), ensure that the
relevant member of the Group will:

	 	(A)	 	become an Additional Guarantor; and
	 
	 	(B)	 	execute (or, as the case may be, procure the execution of)
Security Document(s), in form and substance satisfactory to the Security Agent,
in respect of that member of the Group, its business or its assets in favour of
the Finance Parties to secure all of the obligations of the Obligors under the
Finance Documents.

	(b)	 	Each Obligor shall, at its own expense, promptly take all such action as the Agent or the
Security Agent may require:

	 	(i)	 	for the purpose of perfecting or protecting any of the Finance Parties’ rights
under, and preserving the Security intended to be created or evidenced by, any of the
Finance Documents; and
	 
	 	(ii)	 	for the purpose of facilitating the realisation of any of that Security,

	 	 	including the execution of any transfer, conveyance, assignment or assurance of any asset
and the giving of any notice, order or direction and the making of any registration which
the Agent or the Security Agent may reasonably require.

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	(c)	 	No Obligor shall do, or consent to the doing of, anything which might prejudice the validity,
enforceability or priority of any of the Security created pursuant to the Security Documents.
	 
	23.20	 	Insurance
	 
	(a)	 	Each Obligor shall maintain insurances on and in relation to its business and assets with
reputable independent underwriters or insurance companies against those risks, and to the
extent, usually insured against by prudent companies located in the same or a similar location
and carrying on a similar business required by applicable law or by contract;
	 
	(b)	 	Each Obligor shall promptly pay premiums and do all things necessary to maintain insurances
required of it by Clause 23.20(a).
	 
	23.21	 	Pensions
	 
	(a)	 	CNV shall ensure that all pension schemes maintained or operated by or for the benefit of any
Obligor or Regulated Subsidiary and/or any of its employees:

	 	(i)	 	are maintained and operated in all material respects in accordance with all
applicable laws and contracts and their governing provisions; and
	 
	 	(ii)	 	are funded substantially in accordance with the governing provisions of the
scheme with any funding shortfall advised by actuaries of recognised standing being
rectified in accordance with those governing provisions.

	(b)	 	CNV shall promptly notify the Agent of any material change in the rate of contributions to
any pension schemes referred to in Clause 23.21(a) paid or recommended to be paid (whether by
the scheme actuary or otherwise) or required (by law or otherwise).
	 
	23.22	 	Financial assistance
	 
	 	 	Each Obligor shall ensure that all payments between members of the Group, and any Security
created pursuant to any Finance Document by any member of the Group, are made or created in
compliance with any applicable law or regulation in any relevant jurisdiction concerning
financial assistance by a company for the acquisition of or subscription for shares or
concerning the protection of shareholders’ capital.
	 
	23.23	 	Bank accounts
	 
	(a)	 	CNV shall only maintain the Prepayment Account, the Collection Account, the Operating Account
and accounts with ABN Amro in the Netherlands for the purpose of receiving funds in Euro for
VAT recoveries.
	 
	(b)	 	CNV shall transfer sums to the Operating Account from any account held with ABN Amro referred
to in Clause 23.23(a) to ensure the balance of such account shall never exceed €10,000.
	 
	23.24	 	Acquisitions and investments
	 
	(a)	 	No Obligor shall (and each Obligor shall ensure that its Subsidiaries shall not):

	 	(i)	 	invest in or acquire any share in, or any security issued by, any person, or
any interest therein or in the capital of any person, or make any capital contribution
to any person, or form any person (or agree to do any of the foregoing); or
	 
	 	(ii)	 	invest in or acquire any business or going concern, or the whole or
substantially the whole of the assets or business of any person, or any assets that
constitute a

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	 	 	 	division or operating unit of the business of any person (or agree to do any of the
foregoing).

	(b)	 	Clause 23.24(a) does not apply to any acquisition or investment or capital contribution which
is a Permitted Acquisition.
	 
	23.25	 	Registration Rights Agreement
	 
	 	 	CNV shall use its commercially reasonable efforts to satisfy its obligation to effect any
demand registration(s) pursuant to the Registration Rights Agreement to enable Biwater
Investments Limited to sell shares in CNV in accordance with, and subject to, the terms and
conditions of the Agreement.
	 
	24	 	CHL ADDITIONAL COVENANTS AND UNDERTAKINGS
	 
	 	 	The undertakings in this Clause 24 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.
	 
	24.1	 	Compliance with other financing obligations
	 
	(a)	 	CHL shall use its best endeavours to ensure that BWH Group procures that the Regulated
Subsidiaries shall comply with their respective obligations under the BSTID.
	 
	(b)	 	CHL shall use its best endeavours to ensure that BWH Group procures that the Regulated
Subsidiaries do give notice to the Agent immediately upon becoming aware of the occurrence of
any default, or event of default that occurs in relation to the BSTID.
	 
	24.2	 	No amendment, waiver and consent
	 
	(a)	 	CHL shall use its best endeavours to ensure that BWH Group procures that the Regulated
Subsidiaries do not agree to amend, vary, waive or give any consent in relation to any
provision of the BSTID without the prior written consent of the Agent and the Lenders such
consent not to be unreasonably withheld or delayed.
	 
	(b)	 	CHL shall use its best endeavours to ensure that BWH Group procures that the Regulated
Subsidiaries give notice to the Agent immediately upon becoming aware of any such proposed
amendment, variation, waiver and consent.
	 
	24.3	 	Regulated Subsidiary compliance with Forecast Model
	 
	 	 	CHL shall use its best endeavours to ensure the BWH Group procures (subject to applicable
laws and regulations) that each of the Regulated Subsidiaries pays CHL all monies owing to
it and shall take such steps, and shall ensure that the Regulated Subsidiaries take such
steps, as otherwise may be required to comply with each Obligor’s obligations under the
Finance Documents to the extent permitted under the BSTID.
	 
	24.4	 	BWH Group as holding company
	 
	 	 	CHL shall use its best endeavours to ensure that:

	 	(a)	 	BWH Group shall not carry on any business, own any asset or incur any liability
other than holding the entire issued share capital of Bournemouth & West Hampshire
Water Holdings Limited; and

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	 	(b)	 	BWH Group procures that Bournemouth & West Hampshire Water Holdings Limited
shall not carry on any business, own any asset or incur any liability other than
holding the entire issued share capital of BWH plc as permitted by the BSTID.

	25	 	EVENTS OF DEFAULT
	 
	 	 	Each of the events or circumstances set out in this Clause 25 is an Event of Default (save
for Clause 25.21 (Acceleration)).
	 
	25.1	 	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;

	 	(b)	 	payment is made within in the case of Clause 25.1(a)(i), three (3) Business
Days of its due date for amounts corresponding to principal and five (5) Business Days
of its due date for amounts corresponding to Interest.

	25.2	 	Financial covenants
	 
	 	 	Any requirement of Clause 22 (Financial covenants) is not satisfied.
25.3 Other obligations
	 
	(a)	 	Any person (other than a Finance Party) does not comply with Clause 23.6 (Merger), Clause
23.9 (Pari passu), Clause 23.10 (Negative pledge), Clause 23.11 (Disposals), Clause 23.13
(Loans or credit), Clause 23.14 (Guarantees), Clause 23.15 (Restricted payments), Clause 23.17
(Financial Indebtedness), Clause 23.18 (Issue of shares), and Clause 23.19 (Security and
guarantees) and Clause 24 (CSL Additional Covenants and Undertakings).
	 
	(b)	 	Any Obligor does not comply with any provision of the Finance Documents (other than those
referred to in Clause 25.1 (Non-payment), Clause 25.2 (Financial covenants) and Clause
25.3(a)) unless the failure to comply is capable of remedy and is remedied within thirty (30)
days of the Agent giving notice to the Borrowers or the relevant Borrower becoming aware of
the failure to comply.
	 
	25.4	 	Misrepresentation
	 
	(a)	 	Any representation or statement made or deemed to be made by an Obligor in the Finance
Documents or any other document delivered by or on behalf of any Obligor under or in
connection with any Finance Document is or proves to have been incorrect or misleading when
made or deemed to be made unless the facts or circumstances underlying the misrepresentation
are capable of remedy and are remedied within thirty (30) days of the Agent giving notice to
the Borrowers or the relevant Borrower becoming aware of the misrepresentation.
	 
	(b)	 	Any misrepresentation made in relation to a Subsidiary of an Obligor that is not a Regulated
Subsidiary, will only constitute an Event of Default under this Clause 25.4 if such
misrepresentation is considered by the Lenders to have a Material Adverse Effect.

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	25.5	 	Cross default
	 
	(a)	 	Any Financial Indebtedness of any Obligor or any member of the Group (other than a Regulated
Subsidiary) or under any Permitted Financial Indebtedness and/or under the Existing
Indebtedness is not paid when due nor within any originally applicable grace period.
	 
	(b)	 	Any Financial Indebtedness of any Obligor or any member of the Group (other than a Regulated
Subsidiary) or under any Permitted Financial Indebtedness and/or under the Existing
Indebtedness 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 Obligor or any member of the Group
(other than a Regulated Subsidiary) or under any Permitted Financial Indebtedness and/or under
the Existing Indebtedness 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 Obligor or any member of the Group (other than a Regulated Subsidiary) or
under Permitted Financial Indebtedness and/or under the Existing Indebtedness 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 shall occur under this Clause 25.5, if the aggregate amount of Financial
Indebtedness or amount committed for Financial Indebtedness is less than US$2,000,000.
	 
	25.6	 	Insolvency
	 
	(a)	 	Any Obligor is unable or admits inability to pay its debts as they fall due, suspends, or
threatens to suspend, making payments on any of its debts (or any class of them) or, by reason
of actual or anticipated financial difficulties, commences negotiations with one or more of
its creditors (or any class of them) (other than the Lenders) with a view to rescheduling any
of its indebtedness or any Dutch Obligor or Subsidiary incorporated in the Netherlands gives
notice under section 36(2) of the Dutch 1990 Tax Collection Act (Invorderingswet 1990).
	 
	(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.
	 
	25.7	 	Insolvency proceedings
	 
	(a)	 	Any corporate action, legal proceedings or other procedure or step is taken in relation to:

	 	(i)	 	the suspension of payments, (including without limitation any emergency
regulations (noodregeling)) 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;

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	 	(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)	 	the enforcement of any Security over any assets of any Obligor,

	 	 	or any analogous procedure or step is taken in any jurisdiction.
	 
	(b)	 	Clause 25.7(a) shall not apply to:

	 	(i)	 	any corporate action, legal proceedings or other procedure or step which is
part of a solvent reorganisation of any Obligor permitted under this Agreement; or
	 
	 	(ii)	 	any winding-up petition which is frivolous or vexatious and is discharged,
stayed or dismissed within 14 days of commencement and prior to its advertisement.

	25.8	 	Creditors’ process
	 
	 	 	Any expropriation, attachment, sequestration, distress or execution (including by way of
executory attachment (executioriaal beslag) or interlocutory attachment (conservatoir
beslag) or any analogous process in any jurisdiction affects any asset or assets of an
Obligor having an aggregate value of US$500,000 (or its equivalent in another currency or
currencies) and is not discharged within 15 Business Days.
	 
	25.9	 	Ownership
	 
	 	 	Any Obligor (other than CNV) is not or ceases to be directly or indirectly a Subsidiary of
CNV.
	 
	25.10	 	Unlawfulness
	 
	 	 	It is or becomes unlawful for any Obligor to perform any of its obligations under the
Finance Documents.
	 
	25.11	 	Repudiation
	 
	 	 	Any Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance
Document.
	 
	25.12	 	Security and guarantees
	 
	 	 	Any Security Document or any guarantee in or any subordination under any Finance Document is
not in full force and effect or any Security Document does not create in favour of the
Security Agent for the benefit of the Finance Parties, the Security which it is expressed to
create fully perfected and with the ranking and priority it is expressed to have in a manner
and to an extent reasonably considered by the Majority Lenders to have a Material Adverse
Effect.
	 
	25.13	 	Constitutional documents
	 
	 	 	Any constitutional document of any Obligor or any Regulated Subsidiary is terminated, or is
amended in a way, or any consent or waiver is given in respect of any such document, which
might be material to the interests of the Finance Parties under the Finance Documents.

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	25.14	 	Cessation of business
	 
	 	 	Any Obligor or any Regulated Subsidiary suspends or ceases (or threatens to suspend or
cease) to carry on all or a material part of its business.
	 
	25.15	 	Nationalisation
	 
	 	 	Any step is taken by any person with a view to the seizure, compulsory acquisition,
expropriation or nationalisation of all or any of the shares, or all or any material part of
the assets of any Obligor or any Regulated Subsidiary.
	 
	25.16	 	Audit qualification
	 
	(a)	 	The auditors qualify their report on any audited consolidated financial statement of any
Obligor or any Regulated Subsidiary or any audited financial statement of any Obligor or any
Regulated Subsidiary.
	 
	(b)	 	Clause 25.16(a) shall only apply to the Regulated Subsidiaries to the extent it does not
contradict the provisions of the BSTID.
	 
	25.17	 	Litigation
	 
	 	 	Any litigation, arbitration, proceeding or dispute is started or threatened or there are any
circumstances likely to give rise to any litigation, arbitration, proceeding or dispute, in
each case which is reasonably likely to be adversely determined and would reasonably be
expected to have a Material Adverse Effect.
	 
	25.18	 	Material adverse change
	 
	 	 	The Majority Lenders determine that a Material Adverse Effect exists, has occurred or might
reasonably be expected to occur.
	 
	25.19	 	Operations of Subsidiaries
	 
	 	 	Notice of or actual termination, suspension, cancellation or revocation of the licence,
concession, or authority to operate the principal business of any Obligor.
	 
	25.20	 	Cross Default with BSTID
	 
	 	 	The occurrence of an Acceleration Event (as defined in the BSTID).
	 
	25.21	 	Acceleration
	 
	 	 	On and at any time after the occurrence of an Event of Default the Agent may, and shall if
so directed by the Majority Lenders, by notice to the Borrowers:

	 	(i)	 	cancel the Total Commitments whereupon they shall immediately be cancelled;
	 
	 	(ii)	 	declare that all or part of the Utilisations, together with accrued interest,
and all other amounts accrued or outstanding under the Finance Documents be immediately
due and payable, whereupon they shall become immediately due and payable;
	 
	 	(iii)	 	declare that all or part of the Utilisations be payable on demand, whereupon
they shall immediately become payable on demand by the Agent on the instructions of the
Majority Lenders;

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	 	(iv)	 	declare that full cash cover in respect of any Bank Guarantee is immediately
due and payable, whereupon it shall become immediately due and payable;
	 
	 	(v)	 	require the Borrowers to find a replacement bank to issue a replacement bank
guarantee as soon as possible but in any event no later than 30 days prior to the
Expiry Date of the existing Bank Guarantee; and/or
	 
	 	(vi)	 	declare that full cash cover in respect of each or any Bank Guarantee is
payable on demand, whereupon it shall immediately become payable on demand by the Agent
on the instructions of the Majority Lenders.

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SECTION 9

CHANGES TO PARTIES

	26	 	CHANGES TO THE LENDERS
	 
	26.1	 	Assignments and transfers by the Lenders
	 
	 	 	Subject to this Clause 26, a Lender (the “Existing Lender”) may:

	 	(a)	 	assign any of its rights; or
	 
	 	(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 provided that the value of the rights assigned
or transferred is a least €50,000 (or its equivalent in other currencies) or the assignee or
transferee otherwise qualifies as a PMP (the “New Lender”).
	 
	26.2	 	Conditions of assignment or transfer
	 
	(a)	 	The consent of CNV is required for an assignment or transfer by an Existing Lender, unless
the assignment or transfer is to another Lender or an Affiliate of a Lender.
	 
	(b)	 	The consent of the Issuing Bank is required for any assignment or transfer by an Existing
Lender of any of its rights and/or obligations under the Guarantee Facility.
	 
	(c)	 	The consent of CNV to an assignment or transfer must not be unreasonably withheld or delayed.
CNV will be deemed to have given its consent five Business Days after the Existing Lender has
requested it unless consent is expressly refused by CNV within that time.
	 
	(d)	 	The consent of CNV to an assignment or transfer must not be withheld solely because the
assignment or transfer may result in an increase to the Mandatory Cost.
	 
	(e)	 	An assignment will only be effective on:

	 	(i)	 	receipt by the Agent of written confirmation from the New Lender (in form and
substance satisfactory to the Agent) that the New Lender will assume the same
obligations to the other Finance Parties as it would have been under if it was an
Original Lender; and
	 
	 	(ii)	 	the performance by the Agent of all necessary “know your customer” or other
similar checks under all applicable laws and regulations in relation to such assignment
to a New Lender, the completion of which the Agent shall promptly notify to the
Existing Lender and the New Lender.

	(f)	 	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 14 (Tax gross-up and
indemnities) or Clause 15 (Increased costs),

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	 	 	 	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. This paragraph (f) shall not apply in respect of an assignment or
transfer made in the ordinary course of the primary syndication of the Facilities.
	 
	 	(g)	 	Each New Lender, by executing the relevant Transfer Certificate, confirms, for the avoidance
of doubt, that the Agent has authority to execute on its behalf any amendment or waiver that
has been approved by or on behalf of the requisite Lender or Lenders in accordance with this
Agreement on or prior to the date on which the transfer or assignment becomes effective in
accordance with this Agreement and that it is bound by that decision to the same extent as the
Existing Lender would have been had it remained a Lender.
	 
	 	26.3	 	Assignment or transfer fee
	 
	 	 	 	The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to
the Agent (for its own account) a fee of $3,000 to the Agent.
	 
	 	26.4	 	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 or other person;
	 
	 	(iii)	 	the performance and observance by any Obligor or other person of its
obligations under the Finance Documents or any other documents; or
	 
	 	(iv)	 	the accuracy of any statements (whether written or oral) made in or in
connection with any Finance Document or any other document,

	 	 	 	and any representations or warranties implied by law are excluded.
	 
	 	(b)	 	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

	 	(i)	 	has made (and shall continue to make) its own independent investigation and
assessment of the financial condition and affairs of each Obligor and its related
entities in connection with its participation in this Agreement and has not relied
exclusively on any information provided to it by the Existing Lender or any other
Finance Party in connection with any Finance Document; and
	 
	 	(ii)	 	will continue to make its own independent appraisal of the creditworthiness of
each Obligor and its related entities and any other person whilst any amount is or may
be outstanding under the Finance Documents or any Commitment is in force.

	 	(c)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and obligations
assigned or transferred under this Clause 26; or
	 
	 	(ii)	 	support any losses directly or indirectly incurred by the New Lender by reason
of the non-performance by any Obligor or other person of its obligations under the
Finance Documents or otherwise.

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	26.5	 	Procedure for transfer
	 
	(a)	 	Subject to the conditions set out in this Clause 26 a transfer is effected in accordance with
Clause 26.5(c) when the Agent executes an otherwise duly completed Transfer Certificate
delivered to it by the Existing Lender and the New Lender. The Agent shall, subject to Clause
26.5(b), as soon as reasonably practicable after receipt by it of a duly completed Transfer
Certificate appearing on its face to comply with the terms of this Agreement and delivered in
accordance with the terms of this Agreement, execute that Transfer Certificate.
	 
	(b)	 	The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the
Existing Lender and the New Lender once it is satisfied it has complied with all necessary
“know your customer” or other similar 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”);
	 
	 	(ii)	 	each of the Obligors and the New Lender shall assume obligations towards one
another and/or acquire rights against one another which differ from the Discharged
Rights and Obligations only insofar as that Obligor and the New Lender have assumed
and/or acquired the same in place of that Obligor and the Existing Lender;
	 
	 	(iii)	 	the Agent, the Arranger, the Security Agent, the New Lender, the Lenders and
the Issuing Bank shall acquire the same rights and assume the same obligations between
themselves as they would have acquired and assumed had the New Lender been an Original
Lender with the rights and/or obligations acquired or assumed by it as a result of the
transfer and to that extent the Agent, the Arranger, the Security Agent, the Issuing
Bank 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”.

	26.6	 	Copy of Transfer Certificate to Borrowers
	 
	 	 	The Agent shall, as soon as reasonably practicable after it has executed a Transfer
Certificate, send to the Borrowers a copy of that Transfer Certificate.
	 
	26.7	 	Disclosure of information
	 
	 	 	Any Lender may disclose to any of its Affiliates and:

	 	(a)	 	any other person to (or through) whom that Lender assigns or transfers (or may
potentially assign or transfer) all or any of its rights and obligations under this
Agreement;
	 
	 	(b)	 	any other person with (or through) whom that Lender enters into (or may
potentially enter into) any sub-participation in relation to, or any other transaction
under which payments are to be made by reference to, this Agreement or any Obligor;

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	 	(c)	 	any other person to whom, and to the extent that, information is required to be
disclosed by any applicable law or regulation; or
	 
	 	(d)	 	any other person for whose benefit that Lender charges, assigns or otherwise
creates Security (or may do so) pursuant to Clause 26.8 (Assignment by way of
Security),

	 	 	any information about any Obligor, the Group, any other person and the Finance Documents as
that Lender shall consider appropriate if, in relation to Clauses 26.7(a) and (b), the
person to whom the information is to be given has entered into a Confidentiality
Undertaking.
	 
	26.8	 	Assignment by way of Security
	 
	 	 	In addition to the other rights provided in this Clause 26, each Lender may, without
consultation or obtaining the 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 the obligations of that Lender,
including, without limitation:

	 	(a)	 	any charge, assignment or other Security to secure obligations to a federal
reserve or central bank; and
	 
	 	(b)	 	in the case of any Lender which is a fund, any charge, assignment or other
Security granted to any holders (or trustee or representatives of holders) of
obligations owed, or securities issued, by that Lender as Security for those
obligations or securities,

	 	 	except that no such charge, assignment or Security shall:

	 	(i)	 	release a Lender from any of its obligations under the Finance Documents or
substitute the beneficiary of the relevant charge, assignment or Security for the
Lender as a party to any of the Finance Documents; or
	 
	 	(ii)	 	require any payments to be made by an Obligor 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.

	26.9	 	Sub-participations
	 
	 	 	Any Lender may, without the consent of any Obligor, at any time sub-participate or
sub-contract any of its rights or obligations under the Finance Documents.
	 
	27	 	CHANGES TO THE OBLIGORS
	 
	27.1	 	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.
	 
	27.2	 	Additional Guarantors
	 
	(a)	 	Subject to compliance with the provisions of Clause 21.11(c) and (d), CNV may request that
any of its wholly owned Subsidiaries becomes an Additional Guarantor. That Subsidiary, and/or
any Subsidiary which is required by this Agreement to become an Additional Guarantor, shall
become an Additional Guarantor if:

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	 	(i)	 	CNV delivers to the Agent a duly completed and executed Accession Letter; and
	 
	 	(ii)	 	the Agent has received all of the documents and other evidence listed in Part
III of Schedule 2 (Conditions precedent) in relation to that Additional Guarantor, each
in form and substance satisfactory to the Agent.

	(b)	 	The Agent shall notify the Borrowers and the Lenders promptly upon being satisfied that it
has received (in form and substance satisfactory to it) all the documents and other evidence
listed in Part III of Schedule 2 (Conditions precedent).
	 
	27.3	 	Repetition of Representations
	 
	 	 	Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the
representations and warranties referred to in Clause 20.28(b) 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.
	 
	27.4	 	Resignation of a Guarantor
	 
	(a)	 	The Borrowers may request that a Guarantor (other than the Borrowers) ceases to be a
Guarantor by delivering to the Agent a Resignation Letter.
	 
	(b)	 	The Agent shall accept a Resignation Letter and notify the Borrowers and the Lenders of its
acceptance if:

	 	(i)	 	no Default is continuing or would result from the acceptance of the Resignation
Letter (and the Borrowers have confirmed this is the case); and
	 
	 	(ii)	 	all the Lenders have consented to the Borrowers’ request.

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SECTION 10

THE FINANCE PARTIES

	28	 	ROLE OF THE AGENT AND THE ARRANGER
	 
	28.1	 	Appointment of the Agent
	 
	(a)	 	Each other Finance Party appoints the Agent to act as its agent under and in connection with
the Finance Documents.
	 
	(b)	 	Each other Finance Party authorises the Agent to exercise the rights, powers, authorities and
discretions specifically given to the Agent under or in connection with the Finance Documents
together with any other incidental rights, powers, authorities and discretions.
	 
	(c)	 	Each other Finance Party authorises each of the Agent and the Arranger to agree, accept and
sign on its behalf the terms of any reliance or engagement letter in relation to any report or
letter provided by any person in connection with the Finance Documents or the transactions
contemplated in them (including any net asset letter in connection with financial assistance
procedures).
	 
	28.2	 	Duties of the Agent
	 
	(a)	 	The Agent shall promptly forward to a Party the original or a copy of any document which is
delivered to the Agent for that Party by any other Party.
	 
	(b)	 	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to
review or check the adequacy, accuracy or completeness of any document it forwards to another
Party.
	 
	(c)	 	If the Agent receives notice from a Party referring to this Agreement, describing a Default
and stating that the circumstance described is a Default, it shall promptly notify the Finance
Parties.
	 
	(d)	 	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other
fee payable to a Finance Party (other than the Agent or the Arranger) under this Agreement, it
shall promptly notify the other Finance Parties.
	 
	(e)	 	The Agent’s duties under the Finance Documents are solely mechanical and administrative in
nature.
	 
	28.3	 	Role of the Arranger
	 
	 	 	Except as specifically provided in the Finance Documents, the Arranger has no obligations of
any kind to any other Party under or in connection with any Finance Document.
	 
	28.4	 	No fiduciary duties
	 
	(a)	 	Nothing in this Agreement constitutes the Agent, or the Arranger as a trustee or fiduciary of
any other person.
	 
	(b)	 	Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the
profit element of any sum received by it for its own account.

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	28.5	 	Business with the Group
	 
	 	 	The Agent and the Arranger may accept deposits from, lend money to and generally engage in
any kind of banking or other business with any member of the Group or any other person.
	 
	28.6	 	Rights and discretions of the Agent
	 
	(a)	 	The Agent may rely on:

	 	(i)	 	any representation, notice or document believed by it to be genuine, correct
and appropriately authorised; and
	 
	 	(ii)	 	any statement made by a director, authorised signatory or employee of any
person regarding any matters which may reasonably be assumed to be within his knowledge
or within his power to verify.

	(b)	 	The Agent may assume, unless it has received notice to the contrary in its capacity as agent
for the Lenders, that:

	 	(i)	 	no Default has occurred (unless it has actual knowledge of a Default arising
under Clause 25.1 (Non-payment));
	 
	 	(ii)	 	any right, power, authority or discretion vested in any Party or any group of
Lenders has not been exercised; and
	 
	 	(iii)	 	any notice or request made by a Borrower (other than a Utilisation) is made on
behalf of and with the consent and knowledge of all the Obligors.

	(c)	 	The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants,
surveyors or other experts.
	 
	(d)	 	The Agent may act in relation to the Finance Documents through its personnel and agents.
	 
	(e)	 	The Agent may disclose to any other Party any information it reasonably believes it has
received as agent under this Agreement.
	 
	(f)	 	Notwithstanding any other provision of any Finance Document to the contrary, neither the
Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its
reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary
duty or duty of confidentiality.
	 
	28.7	 	Majority Lenders’ instructions
	 
	(a)	 	Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any
right, power, authority or discretion vested in it as Agent in accordance with any
instructions given to it by the Majority Lenders (or, if so instructed by the Majority
Lenders, refrain from exercising any right, power, authority or discretion vested in it as
Agent) and (ii) not be liable for any act (or omission) if it acts (or 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.
	 
	(c)	 	The Agent may refrain from acting in accordance with the instructions of the Majority Lenders
(or, if appropriate, the Lenders) until it has received such security as it may require for
any cost, loss or liability (together with any associated VAT) which it may incur in complying
with the instructions.

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	(d)	 	In the absence of instructions from the Majority Lenders (or, if appropriate, the Lenders),
the Agent may act (or refrain from taking action) as it considers to be in the best interest
of the Lenders.
	 
	(e)	 	The Agent is not authorised to act on behalf of a Lender (without first obtaining that
Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.
	 
	28.8	 	Responsibility for documentation
	 
	 	 	Neither the Agent nor the Arranger:

	 	(a)	 	is responsible for the adequacy, accuracy and/or completeness of any
information (whether oral or written) supplied by the Agent, the Arranger, an Obligor
or any other person given in or in connection with any Finance Document; or
	 
	 	(b)	 	is responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance
Document.

	28.9	 	Exclusion of liability
	 
	(a)	 	Without limiting Clause 28.9(b) (and without prejudice to the provisions of Clause 34.10(e)),
the 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, unless directly caused by its gross negligence or wilful misconduct.
	 
	(b)	 	No Party (other than the Agent) may take any proceedings against any officer, employee or
agent of the Agent in respect of any claim it might have against the Agent or in respect of
any act or omission of any kind by that officer, employee or agent in relation to any Finance
Document and any officer, employee or agent of the Agent may rely on this Clause.
	 
	(c)	 	The Agent will not be liable for any delay (or any related consequences) in crediting an
account with an amount required under the Finance Documents to be paid by the Agent if the
Agent has taken all necessary steps as soon as reasonably practicable to comply with the
regulations or operating procedures of any recognised clearing or settlement system used by
the Agent for that purpose.
	 
	(d)	 	Nothing in this Agreement shall oblige the Agent or the Arranger to carry out any “know your
customer” or other checks in relation to any person on behalf of any Lender and each Lender
confirms to the Agent and the Arranger that it is solely responsible for any such checks it is
required to carry out and that it may not rely on any statement in relation to such checks
made by the Agent or the Arranger.
	 
	28.10	 	Lenders’ indemnity to the Agent
	 
	(a)	 	Subject to Clause 28.10(b), each Lender shall (in proportion to its Available Commitments and
participations in the Utilisations then outstanding to the Available Facilities and all the
Utilisations) indemnify the Agent, within three Business Days of demand, against any cost,
loss or liability including without limitation for negligence or any other category of
liability whatsoever incurred by the Agent (otherwise than by reason of its gross negligence
or wilful misconduct) (or in the case of any cost, loss or liability pursuant to Clause 34.10
(Disruption to Payment Systems etc.) notwithstanding the Agent’s negligence, gross negligence
or any other category of liability whatsoever but not including any claim based

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	 	 	on the fraud of the Agent) in acting as Agent under the Finance Documents (unless it has
been reimbursed by an Obligor pursuant to a Finance Document).

	(b)	 	If the Available Facilities are then zero, each Lender’s indemnity under Clause 28.10(a)
shall be in proportion to its Available Commitments to the Available Facilities immediately
prior to their reduction to zero.
	 
	28.11	 	Resignation of the Agent
	 
	(a)	 	The 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 CNV.
	 
	(b)	 	Alternatively the Agent may resign by giving notice to the other Finance Parties and CNV, in
which case the Majority Lenders (after consultation with CNV) may appoint a successor Agent.
	 
	(c)	 	If the Majority Lenders have not appointed a successor Agent in accordance with Clause
28.11(b) within 30 days after notice of resignation was given, the Agent (after consultation
with CNV) may appoint a successor Agent (acting through an office in the United Kingdom).
	 
	(d)	 	The retiring Agent shall, at its own cost, make available to the successor Agent such
documents and records and provide such assistance as the successor Agent may reasonably
request for the purposes of performing its functions as Agent under the Finance Documents.
	 
	(e)	 	The Agent’s resignation notice shall only take effect upon the appointment of a successor.
	 
	(f)	 	Upon the appointment of a successor, the retiring Agent shall be discharged from any further
obligation in respect of the Finance Documents but shall remain entitled to the benefit of
this Clause 28. Its successor and each of the other Parties shall have the same rights and
obligations amongst themselves as they would have had if such successor had been an original
Party.
	 
	(g)	 	After consultation with CNV, the Majority Lenders may, by notice to the Agent, require it to
resign in accordance with Clause 28.11(b). In this event, the Agent shall resign in accordance
with Clause 28.11(b).
	 
	28.12	 	Confidentiality
	 
	(a)	 	In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its
agency division which shall be treated as a separate entity from any other of its divisions or
departments.
	 
	(b)	 	If information is received by another division or department of the Agent, it may be treated
as confidential to that division or department and the Agent shall not be deemed to have
notice of it.
	 
	28.13	 	Relationship with the Lenders
	 
	(a)	 	The Agent may treat each Lender as a Lender, entitled to payments under this Agreement and
acting through its Facility Office 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.

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	(b)	 	Each Lender shall supply the Agent with any information required by the Agent in order to
calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost formulae).
	 
	28.14	 	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 Agent and the
Arranger that it has been, and will continue to be, solely responsible for making its own
independent appraisal and investigation of all risks arising under or in connection with any
Finance Document including but not limited to:

	 	(a)	 	the financial condition, status and nature of each member of the Group;
	 
	 	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document and any other agreement, Security, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any Finance
Document;
	 
	 	(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 transactions contemplated by the Finance Documents or any other
agreement, Security, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document; and
	 
	 	(d)	 	the adequacy, accuracy and/or completeness of any information provided by the
Agent, any Party or by any other person under or in connection with any Finance
Document, the transactions contemplated by the Finance Documents or any other
agreement, Security, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document.

	28.15	 	Reference Banks
	 
	 	 	If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Agent shall (in consultation with CNV) appoint another
Lender or an Affiliate of a Lender to replace that Reference Bank.
	 
	28.16	 	Management time of the Agent
	 
	 	 	Any amount payable to the Agent under Clause 16.3 (Indemnity to the Agent and the Security
Agent), Clause 18 (Costs and expenses) and Clause 28.10 (Lenders’ indemnity to the Agent)
shall include the cost of utilising the Agent’s management time or other resources and will
be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify
to the Borrowers and the Lenders, and is in addition to any fee paid or payable to the Agent
under Clause 13 (Fees).
	 
	28.17	 	Deduction from amounts payable by the Agent
	 
	 	 	If any Party owes an amount to the Agent under the Finance Documents, the Agent may, after
giving notice to that Party, deduct an amount not exceeding that amount from any payment to
that Party which the Agent would otherwise be obliged to make under the Finance Documents
and apply the amount deducted in or towards satisfaction of the amount owed. For the
purposes of the Finance Documents that Party shall be regarded as having received any amount
so deducted.

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	29	 	ROLE OF THE SECURITY AGENT
	 
	29.1	 	Appointment of the Security Agent
	 
	(a)	 	Each other Finance Party appoints the Security Agent to act as security trustee under and in
connection with the Finance Documents in relation to any security interest which is expressed
to be or is construed to be governed by English law, or any other law from time to time
designated by the Security Agent and an Obligor.
	 
	(b)	 	Except as expressly provided in Clause 29.1(a), and without limiting or affecting Clause
29.18 (Parallel Debt), each other Finance Party appoints the Security Agent to act as security
agent under and in connection with the Finance Documents.
	 
	(c)	 	Each other Finance Party authorises the Security Agent to exercise the rights, powers,
authorities and discretions specifically given to it under or in connection with the Finance
Documents together with any other incidental rights, powers, authorities and discretions.
	 
	29.2	 	Duties of the Security Agent
	 
	(a)	 	The Agent shall promptly send to the Security Agent such certification as the Security Agent
may require pursuant to paragraph 7 (Basis of distribution) of Schedule 9 (Security agency
provisions).
	 
	(b)	 	The duties of the Security Agent under the Finance Documents are solely mechanical and
administrative in nature.
	 
	29.3	 	Role of the Security Agent
	 
	 	 	The Security Agent shall not be an agent or trustee of any Finance Party (save as expressly
provided in any Finance Document) or any Obligor or any other person under or in connection
with any Finance Document or this Agreement.
	 
	29.4	 	No fiduciary duties
	 
	(a)	 	Nothing in this Agreement constitutes the Security Agent (except as expressly provided in
Clause 29.18 (Parallel Debt) or Schedule 9 (Security agency provisions)) as a trustee or
fiduciary of any other person.
	 
	(b)	 	The Security Agent shall not be bound to account to any Finance Party for any sum or the
profit element of any sum received by it for its own account.
	 
	29.5	 	Business with the Group
	 
	 	 	The Security Agent may accept deposits from, lend money to and generally engage in any kind
of banking or other business with any member of the Group or any other person.
	 
	29.6	 	Rights and discretions of the Security Agent
	 
	(a)	 	The Security 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.

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	(b)	 	The Security Agent may assume, unless it has received notice to the contrary in its capacity
as security trustee or security agent for the Finance Parties, that:

	 	(i)	 	no event of default or potential event of default, however described, has
occurred (unless it has actual knowledge of an event of default or potential event of
default, however described, arising under Clause 25.1 (Non-payment));
	 
	 	(ii)	 	any right, power, authority or discretion vested in any Party or any group of
Lenders or Finance Parties has not been exercised; and
	 
	 	(iii)	 	any notice or request made by a Borrower (other than a Utilisation Request) is
made on behalf of and with the consent and knowledge of all the Obligors.

	(c)	 	The Security Agent may engage, pay for and rely on the advice or services of any lawyers,
accountants, surveyors or other experts.
	 
	(d)	 	The Security Agent may act in relation to the Finance Documents through its personnel and
agents.
	 
	(e)	 	The Security Agent may disclose to any other Party any information it reasonably believes it
has received as Security Agent.
	 
	(f)	 	Notwithstanding any other provision of any Finance Document to the contrary, the Security
Agent is not 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	 	Responsibility for documentation
	 
	 	 	The Security Agent is not responsible for:

	 	(a)	 	the adequacy, accuracy and/or completeness of any information (whether oral or
written) supplied by the Security Agent, an Obligor or any other person given in or in
connection with any Finance Document; or
	 
	 	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document or any other agreement, arrangement or document entered into, made or
executed in anticipation of or in connection with any Finance Document.

	29.8	 	Exclusion of liability
	 
	(a)	 	Without limiting Clause 29.8(b), the Security Agent will not be liable for any action taken
by it under or in connection with any Finance Document unless directly caused by its gross
negligence or wilful misconduct.
	 
	(b)	 	No Party (other than the Security Agent) may take any proceedings against any officer,
employee or agent of the Security Agent in respect of any claim it might have against the
Security Agent or in respect of any act or omission of any kind by that officer, employee or
agent in relation to any Finance Document and any officer, employee or agent of the Security
Agent may rely on this Clause.
	 
	(c)	 	The Security 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 it if
it 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 it
for that purpose.

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	29.9	 	Finance Parties’ indemnity to the Security Agent
	 
	 	 	Each other Finance Party shall (in proportion to its Available Commitments and
participations in the Utilisations then outstanding to the Available Facilities and all the
Utilisations) indemnify the Security Agent, within three Business Days of demand, against
any cost, loss or liability incurred by the Security Agent (otherwise than by reason of its
gross negligence or wilful misconduct) in acting as Security Agent under the Finance
Documents (unless it has been reimbursed by an Obligor pursuant to a Finance Document).
	 
	29.10	 	Resignation of the Security Agent
	 
	(a)	 	The Security Agent may resign and appoint one of its Affiliates acting through an office in
the United Kingdom as successor by giving notice to the Finance Parties.
	 
	(b)	 	Alternatively the Security Agent may resign by giving notice to the Finance Parties, in which
case the Majority Lenders, until the Discharge Date (after consultation with CNV) may appoint
a successor Security Agent.
	 
	(c)	 	If the Majority Lenders have not appointed a successor Security Agent in accordance with
Clause 29.10(b) within 30 days after notice of resignation was given, the Security Agent
(after consultation with CNV) may appoint a successor Security Agent (acting through an office
in the United Kingdom).
	 
	(d)	 	The retiring Security Agent shall make available to its successor such documents and records
and provide such assistance as its successor may reasonably request for the purposes of
performing its functions as Security Agent under the Finance Documents.
	 
	(e)	 	The resignation notice of the Security Agent shall only take effect upon the appointment of a
successor.
	 
	(f)	 	Upon the appointment of a successor, the retiring Security Agent shall be discharged from any
further obligation in respect of the Finance Documents but shall remain entitled to the
benefit of this Clause 29. Its successor and each of the other Parties shall have the same
rights and obligations amongst themselves as they would have had if such successor had been an
original Party.
	 
	(g)	 	After consultation with CNV, the Majority Lenders, until the Discharge Date, may, by notice
to the Security Agent, require it to resign in accordance with Clause 29.10(b). In this event,
the Security Agent shall resign in accordance with Clause 29.10(b).
	 
	29.11	 	Confidentiality
	 
	(a)	 	The Security Agent (in acting as security trustee or security agent for the Finance Parties)
shall be regarded as acting through its respective security trustee or security 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 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.
	 
	29.12	 	Credit appraisal by the Finance Parties
	 
	 	 	Without affecting the responsibility of any Obligor or other person for information supplied
by it or on its behalf in connection with any Finance Document, each Finance Party

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	 	 	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 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 or any other agreement, Security, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any Finance
Document;
	 
	 	(c)	 	whether that Finance Party has recourse, and the nature and extent of that
recourse, against any Party or any of its respective assets under or in connection with
any Finance Document, the transactions contemplated by the Finance Documents or any
other agreement, Security, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document; and
	 
	 	(d)	 	the adequacy, accuracy and/or completeness of any information provided by the
Security 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, Security, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document.

	29.13	 	Management time of the Security Agent
	 
	 	 	Any amount payable to the Security Agent under Clause 29.9 (Finance Parties’ indemnity to
the Security Agent) and Clause 30 (Expenses) shall include the cost of utilising its
management time or other resources and will be calculated on the basis of such reasonable
daily or hourly rates as it may notify to the Borrowers and the Agent, and is in addition to
any fee paid or payable to it under any Finance Document.
	 
	29.14	 	Deduction from amounts payable by the Security Agent
	 
	 	 	If any Party owes an amount to the Security Agent under the Finance Documents, the Security
Agent may, after giving notice to that Party, deduct an amount not exceeding that amount
from any payment to that Party which the Security 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.
	 
	29.15	 	Security agency provisions
	 
	 	 	The provisions of Schedule 9 (Security agency provisions) shall bind each Party.

	 
	29.16	 	Indemnity to the Security Agent
	 
	 	 	The Borrowers shall promptly indemnify the Security Agent against any cost, loss or
liability incurred by the Security Agent (acting reasonably) as a result of:

	 	(a)	 	investigating any event which it reasonably believes is an event of default or
potential event of default, however described; or
	 
	 	(b)	 	acting or relying on any notice, request or instruction which it reasonably
believes to be genuine, correct and appropriately authorised.

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	29.17	 	Security Agent expenses
	 
	 	 	The Borrowers shall promptly on demand pay the Security Agent the amount of all costs and
expenses (including legal fees) incurred by it in connection with the administration or
release of any Security created pursuant to any Security Document.
	 
	29.18	 	Parallel Debt
	 
	(a)	 	Each Obligor hereby irrevocably and unconditionally undertakes to pay to the Security Agent
amounts equal to any amounts owing from time to time by that Obligor to any Finance Party
under any Finance Document as and when those amounts are due.
	 
	(b)	 	Each Obligor and the Security Agent acknowledge that the obligations of each Obligor under
Clause 29.18(a) are several and are separate and independent from, and shall not in any way
limit or affect, the corresponding obligations of that Obligor to any Finance Party under any
Finance Document (its “Corresponding Debt”) nor shall the amounts for which each Obligor is
liable under Clause 29.18(a) (its “Parallel Debt”) be limited or affected in any way by its
Corresponding Debt provided that:

	 	(i)	 	the Parallel Debt of each Obligor shall be decreased to the extent that its
Corresponding Debt has been irrevocably paid or (in the case of guarantee obligations)
discharged;
	 
	 	(ii)	 	the Corresponding Debt of each Obligor shall be decreased to the extent that
its Parallel Debt has been irrevocably paid or (in the case of guarantee obligations)
discharged; and
	 
	 	(iii)	 	the amount of the Parallel Debt of an Obligor shall at all times be equal to
the amount of its Corresponding Debt.

	(c)	 	For the purpose of this Clause 29.18, the Security Agent acts in its own name and not as a
trustee, and its claims in respect of the Parallel Debt shall not be held on trust. The
Security granted under the Finance Documents to the Security Agent to secure the Parallel Debt
is granted to the Security Agent in its capacity as creditor of the Parallel Debt and shall
not be held on trust.
	 
	(d)	 	All moneys received or recovered by the Security Agent pursuant to this Clause 29.18, and all
amounts received or recovered by the Security Agent from or by the enforcement of any Security
granted to secure the Parallel Debt, shall be applied in accordance with Clause 31.1 (Order of
application).
	 
	(e)	 	Without limiting or affecting the Security Agent’s rights against the Obligors (whether under
this Clause 29.18 or under any other provision of the Finance Documents), each Obligor
acknowledges that:

	 	(i)	 	nothing in this Clause 29.18 shall impose any obligation on the Security Agent
to advance any sum to any Obligor or otherwise under any Finance Document except in its
capacity as a Senior Lender; and
	 
	 	(ii)	 	for the purpose of any vote taken under any Finance Document, the Security
Agent shall not be regarded as having any participation or commitment other than those
which it has in its capacity as a Lender.

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	30	 	EXPENSES
	 
	 	 	To the extent not already paid under another Finance Document, each Obligor will, within
three Business Days of demand, pay to each Finance Party the amount of all costs and
expenses (including legal fees) incurred by that Finance Party in connection with the
enforcement or preservation of that person’s rights against that Obligor under this
Agreement.
	 
	31	 	ORDER OF APPLICATION
	 
	31.1	 	Order of application
	 
	 	 	Subject to the rights of creditors mandatorily preferred by law applying to companies
generally, the proceeds of enforcement of the Security conferred by the Security Documents,
all recoveries by the Security Agent under guarantees of the debt and all other amounts paid
to the Security Agent pursuant to this Agreement shall be applied in the following order:

	 	(a)	 	first, in or towards payment of any unpaid fees, costs, expenses and
liabilities (including any interest thereon as provided in the Security Documents)
incurred by or on behalf of the Security Agent (or any adviser, receiver, delegate,
attorney or agent) and the remuneration of the Security Agent (or any adviser,
receiver, delegate, attorney or agent) in connection with carrying out its duties or
exercising powers or discretions under the Security Documents or this Agreement;
	 
	 	(b)	 	second, in or towards payment to the Agent for application towards any unpaid
costs and expenses incurred by or on behalf of any Finance Party in connection with
such enforcement, recovery or other payment pari passu between themselves; and
	 
	 	(c)	 	third, after the Discharge Date, in payment of the surplus (if any) to the
relevant Obligor or other person entitled thereto.

	31.2	 	Good discharge
	 
	 	 	An acknowledgement of receipt signed by the relevant person to whom payments are to be made
under this Clause 31 shall be a good discharge of the Security Agent.

	32	 	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.

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	33	 	SHARING AMONG THE FINANCE PARTIES
	 
	33.1	 	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 34 (Payment mechanics) and applies that amount
to a payment due under the Finance Documents then:

	 	(a)	 	the Recovering Finance Party shall, within three Business Days, notify details
of the receipt or recovery to the Agent;
	 
	 	(b)	 	the Agent shall determine whether the receipt or recovery is in excess of the
amount the Recovering Finance Party would have been paid had the receipt or recovery
been received or made by the Agent and distributed in accordance with Clause 34
(Payment mechanics), without taking account of any Tax which would be imposed on the
Agent in relation to the receipt, recovery or distribution; and
	 
	 	(c)	 	the Recovering Finance Party shall, within three Business Days of demand by the
Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or
recovery less any amount which the Agent determines may be retained by the Recovering
Finance Party as its share of any payment to be made, in accordance with Clause 34.5
(Partial payments).

	33.2	 	Redistribution of payments
	 
	 	 	The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and
distribute it between the Finance Parties (other than the Recovering Finance Party) in
accordance with Clause 34.5 (Partial payments).
	 
	33.3	 	Recovering Finance Party’s rights
	 
	(a)	 	On a distribution by the Agent under Clause 33.2 (Redistribution of payments), the Recovering
Finance Party will be subrogated to the rights of the Finance Parties which have shared in the
redistribution.
	 
	(b)	 	If and to the extent that the Recovering Finance Party is not able to rely on its rights
under Clause 33.3(a), the relevant Obligor shall be liable to the Recovering Finance Party for
a debt equal to the Sharing Payment which is immediately due and payable.
	 
	33.4	 	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 Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 33.2 (Redistribution of payments) shall, upon request of the Agent,
pay to the Agent for 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); and
	 
	 	(b)	 	that Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable to the
reimbursing Finance Party for the amount so reimbursed.

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	33.5	 	Exceptions
	 
	(a)	 	This Clause 33 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.

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SECTION 11

ADMINISTRATION

	34	 	PAYMENT MECHANICS
	 
	34.1	 	Payments to the Agent
	 
	(a)	 	On each date on which an Obligor or a Lender is required to make a payment under a Finance
Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary
indication appears in a Finance Document) for value on the due date at the time and in such
funds specified by the Agent as being customary at the time for settlement of transactions in
the relevant currency in the place of payment.
	 
	(b)	 	Payment shall be made to the Agent’s bank account with HSBC Bank USA, NY (Swift MRMDUS33),
for the account of HSBC Bank plc, London (swift MIDLGB22), account number 000023868 quoting
“Reference Dept. 716/CTLA/Cascal”.
	 
	34.2	 	Distributions by the Agent
	 
	 	 	Each payment received by the Agent under the Finance Documents for another Party shall,
subject to Clause 34.3 (Distributions to an Obligor) and Clause 34.4 (Clawback), be made
available by the Agent as soon as practicable after receipt to the Party entitled to receive
payment in accordance with this Agreement (in the case of a Lender, for the account of its
Facility Office), to such account as that Party may notify to the Agent 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 €, in the principal financial centre of a Participating
Member State or London).
	 
	34.3	 	Distributions to an Obligor
	 
	 	 	The Agent may (with the consent of the Obligor or in accordance with Clause 35 (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.
	 
	34.4	 	Clawback
	 
	(a)	 	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the
Agent is not obliged to pay that sum to that other Party (or to enter into or perform any
related exchange contract) until it has been able to establish to its satisfaction that it has
actually received that sum.
	 
	(b)	 	If the Agent pays an amount to another Party and it proves to be the case that it had not
actually received that amount, then the Party to whom that amount (or the proceeds of any
related exchange contract) was paid by the Agent shall on demand refund the same to the Agent
together with interest on that amount from the date of payment to the date of receipt by the
Agent, calculated by it to reflect its cost of funds.
	 
	34.5	 	Partial payments
	 
	(a)	 	If the Agent receives a payment that is insufficient to discharge all the amounts then due
and payable by an Obligor under the Finance Documents, the Agent shall apply that payment
towards the obligations of that Obligor under the Finance Documents in the following order:

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	 	(i)	 	first, in or towards payment pro rata of any unpaid fees, costs and expenses of
the Agent, the Security Agent, the Facility Agent, the Issuing Bank, or the Arranger
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 any amount due but unpaid under Clause 7.2 (Claims under a Bank
Guarantee) and Clause 7.3 (Indemnities); and
	 
	 	(iv)	 	fourthly, in or towards payment pro rata of any other sum due but unpaid under
the Finance Documents.

	(b)	 	The Agent shall, if so directed by the Majority Revolving Facility Lenders and the Majority
Guarantee Facility Lenders, vary the order set out in Clauses 34.5(a)(ii) to (iv).
	 
	(c)	 	Clause 34(a) and (b) will override any appropriation made by an Obligor.
	 
	34.6	 	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.
	 
	34.7	 	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 an Unpaid Sum under this
Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the
original due date.
	 
	34.8	 	Currency of account
	 
	(a)	 	Subject to Clauses 34.8(b) to (e), the US Dollar is the currency of account and payment for
any sum due from an Obligor under any Finance Document.
	 
	(b)	 	A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid Sum shall be
made in the currency in which that Utilisation or Unpaid Sum is denominated on its due date.
	 
	(c)	 	Each payment of interest shall be made in the currency in which the sum in respect of which
the interest is payable was denominated when that interest accrued.
	 
	(d)	 	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which
the costs, expenses or Taxes are incurred.
	 
	(e)	 	Any amount expressed to be payable in a currency other than US Dollars shall be paid in that
other currency.
	 
	34.9	 	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:

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	 	(i)	 	any reference in the Finance Documents to, and any obligations arising under
the Finance Documents in, the currency of that country shall be translated into, or
paid in, the currency or currency unit of that country designated by the Agent (after
consultation with the Borrowers); and
	 
	 	(ii)	 	any translation from one currency or currency unit to another shall be at the
official rate of exchange recognised by the central bank for the conversion of that
currency or currency unit into the other, rounded up or down by the Agent (acting
reasonably).

	(b)	 	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent
(acting reasonably and after consultation with the Borrowers) 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.
	 
	34.10	 	Disruption to Payment Systems etc.
	 
	 	 	If either the Agent determines (in its discretion) that a Disruption Event has occurred or
the Agent is notified by a Borrower that a Disruption Event has occurred:

	 	(a)	 	the Agent may, and shall if requested to do so by the Borrowers, consult with
the Borrowers with a view to agreeing with the Borrowers such changes to the operation
or administration of the Facilities as the Agent may deem necessary in the
circumstances;
	 
	 	(b)	 	the Agent shall not be obliged to consult with the Borrowers in relation to any
changes mentioned in Clause 34.10(a) if, in its opinion, it is not practicable to do so
in the circumstances and, in any event, shall have no obligation to agree to such
changes;
	 
	 	(c)	 	the Agent may consult with the Finance Parties in relation to any changes
mentioned in Clause 34.10 but shall not be obliged to do so if, in its opinion, it is
not practicable to do so in the circumstances;
	 
	 	(d)	 	any such changes agreed upon by the Agent and the Borrowers 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);
	 
	 	(e)	 	the Agent shall not be liable for any damages, costs or losses whatsoever
(including, without limitation for negligence, gross negligence or any other category
of liability whatsoever but not including any claim based on the fraud of the Agent)
arising as a result of its taking, or failing to take, any actions pursuant to or in
connection with this Clause 34.10; and
	 
	 	(f)	 	the Agent shall notify the Finance Parties of all changes agreed pursuant to
Clause 34.10(d).

	35	 	SET-OFF
	 
	 	 	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,

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	 	 	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.

	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 each Borrower, that identified with its name below;
	 
	 	(b)	 	in the case of each Lender or any other Original Obligor, that notified in
writing to the Agent on or prior to the date on which it becomes a Party; and
	 
	 	(c)	 	in the case of the Agent, the Issuing Bank or the Security Agent, that
identified with its name below,

	 	 	or any substitute address, fax number or department or officer as the Party may notify to
the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent)
by not less than five 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 Agent or the Security Agent will
be effective only when actually received by it and then only if it is expressly marked for the
attention of the department or officer identified with its signature below (or any substitute
department or officer as it shall specify for this purpose).
	 
	(c)	 	All notices from or to an Obligor shall be sent through the Agent.
	 
	(d)	 	Any communication or document made or delivered to a Borrower in accordance with this Clause
will be deemed to have been made or delivered to each of the Obligors.
	 
	36.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address and fax number or change of address or
fax number pursuant to Clause 36.2 (Addresses) or changing its own address or fax number,
the Agent shall notify the other Parties.

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	36.5	 	Electronic communication
	 
	(a)	 	Any communication to be made between the Agent and a Lender under or in connection with the
Finance Documents may be made by electronic mail or other electronic means, if the 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 Agent and a Lender will be effective only when
actually received in readable form and in the case of any electronic communication made by a
Lender to the Agent only if it is addressed in such a manner as the Agent shall specify for
this purpose.
	 
	36.6	 	English language
	 
	(a)	 	Any notice given under or in connection with any Finance Document must be in English.
	 
	(b)	 	All other documents provided under or in connection with any Finance Document must be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English, and if so required by the Agent, accompanied by a certified
English translation and, in this case, the English translation will prevail unless the
document is a constitutional, statutory or other official document or a Security
Document.

	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 360
days or, in any case where the practice in the Relevant Interbank Market differs, in
accordance with that market practice.

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	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 Borrowers and any such amendment
or waiver will be binding on all Parties.
	 
	(b)	 	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by
this Clause 40.
	 
	(c)	 	Subject to Clause 40.2(e), each Obligor acknowledges that its consent is not required for any
amendment or waiver permitted by this Clause 40 which is agreed to by the Borrowers.
	 
	40.2	 	Exceptions
	 
	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definition of “Majority Lenders”, “Majority Guarantee Facility Lenders” or
“Majority Revolving Facility Lenders” in Clause 1.1 (Definitions);
	 
	 	(ii)	 	an extension to the date of payment of any amount under the Finance Documents;
	 
	 	(iii)	 	a reduction in the Margin or a reduction in the amount of any payment of
principal, interest, fees or commission payable;
	 
	 	(iv)	 	an increase in or an extension of any Commitment;
	 
	 	(v)	 	a change to the Borrowers or Guarantors other than in accordance with Clause 27
(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 9.4 (Mandatory
prepayment — Net Sale Proceeds) to Clause 9.11 (Application of Proceeds), Clause 26
(Changes to the Lenders), Clause 33 (Sharing among the Finance Parties) or this Clause
40; or
	 
	 	(viii)	 	the release of any Security created pursuant to any Security Document,

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	 	 	shall not be made without the prior consent of all the Lenders.
	 
	(b)	 	An amendment or waiver which relates to the rights or obligations of the Agent, the Facility
Agent, the Security Agent, the Issuing Bank, the Arranger may not be effected without its
consent.
	 
	(c)	 	Except where the consent of all Lenders is required by any Finance Document, an amendment or
waiver which relates solely to the rights or obligations of the Revolving Facility Lenders
shall not be effective without the consent of the Majority Revolving Facility Lenders and
shall not require the consent of any Guarantee Facility Lenders.
	 
	(d)	 	Except where the consent of all Lenders is required by any Finance Document, an amendment or
waiver which relates solely to the rights or obligations of the Guarantee Facility Lenders
shall not be effective without the consent of the Majority Guarantee Facility Lenders and
shall not require the consent of any Revolving Facility Lender.
	 
	(e)	 	An amendment or waiver which relates to Clause 19 (Guarantee and indemnity) may not be
effected without the consent of the Guarantors.
	 
	41	 	COUNTERPARTS
	 
	 	 	Each Finance Document may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of the Finance
Document.
	 
	42	 	CONFIDENTIALITY
	 
	42.1	 	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 42.2 (Disclosure of
Confidential Information) and Clause 42.3 (Disclosure to numbering service providers), 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.
	 
	42.2	 	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;

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	 	(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 under paragraph (c)
of Clause 28.13 (Relationship with the Lenders));
	 
	 	(iv)	 	who invests in or otherwise finances (or may potentially invest
in or otherwise finance), directly or indirectly, any transaction referred to
in paragraph (b)(i) or (b)(ii) above;
	 
	 	(v)	 	to whom information is required or requested to be disclosed by
any court of competent jurisdiction or any governmental, banking, taxation or
other regulatory authority or similar body, the rules of any relevant stock
exchange or pursuant to any applicable law or regulation;
	 
	 	(vi)	 	to whom or for whose benefit that Finance Party charges,
assigns or otherwise creates Security (or may do so) pursuant to Clause 26.8
(Assignment by way of Security);
	 
	 	(vii)	 	to whom information is required to be disclosed in connection
with, and for the purposes of, any litigation, arbitration, administrative or
other investigations, proceedings or disputes;
	 
	 	(viii)	 	who is a Party; or
	 
	 	(ix)	 	with the consent of the Borrowers;

	 	 	 	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; and
	 
	 	(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

110

 

	 	 	 	requirement to so inform if, in the opinion of that Finance Party, it is not
practicable so to do in the circumstances;

	 	(c)	 	to any person appointed by that Finance Party or by a person to whom paragraph
(b)(i) or (b)(ii) above applies to provide administration or settlement services in
respect of one or more of the Finance Documents including without limitation, in
relation to the trading of participations in respect of the Finance Documents, such
Confidential Information as may be required to be disclosed to enable such service
provider to provide any of the services referred to in this paragraph (c) if the
service provider to whom the Confidential Information is to be given has entered into a
confidentiality agreement substantially in the form of the LMA Master Confidentiality
Undertaking for Use With Administration/Settlement Service Providers or such other form
of confidentiality undertaking agreed between the Borrowers 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.

	42.3	 	Disclosure to numbering service providers

	 	(a)	 	Any Finance Party may disclose to any national or international numbering
service provider appointed by that Finance Party to provide identification numbering
services in respect of this Agreement, the Facilities and/or one or more Obligors the
following information:

	 	(i)	 	names of Obligors;
	 
	 	(ii)	 	country of domicile of Obligors;
	 
	 	(iii)	 	place of incorporation of Obligors;
	 
	 	(iv)	 	date of this Agreement;
	 
	 	(v)	 	the names of the Agent and the Arranger;
	 
	 	(vi)	 	date of each amendment and restatement of this Agreement;
	 
	 	(vii)	 	amount of Total Commitments;
	 
	 	(viii)	 	currencies of the Facilities;
	 
	 	(ix)	 	type of Facilities;
	 
	 	(x)	 	ranking of Facilities;
	 
	 	(xi)	 	Termination Date or Extension Date for Facilities;
	 
	 	(xii)	 	changes to any of the information previously supplied pursuant
to paragraphs (i) to (xi) above; and
	 
	 	(xiii)	 	such other information agreed between such Finance Party and the Borrowers,

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	 	 	to enable such numbering service provider to provide its usual syndicated loan numbering
identification services.

	 	(b)	 	The Parties acknowledge and agree that each identification number assigned to
this Agreement, the Facilities and/or one or more Obligors by a numbering service
provider and the information associated with each such number may be disclosed to users
of its services in accordance with the standard terms and conditions of that numbering
service provider.
	 
	 	(c)	 	The Borrowers represents that none of the information set out in paragraphs (i)
to (xiii) of paragraph (a) above is, nor will at any time be, unpublished
price-sensitive information.
	 
	 	(d)	 	The Agent shall notify the Borrowers and the other Finance Parties of:

	 	(i)	 	the name of any numbering service provider appointed by the
Agent in respect of this Agreement, the Facilities and/or one or more Obligors;
and
	 
	 	(ii)	 	the number or, as the case may be, numbers assigned to this
Agreement, the Facilities and/or one or more Obligors by such numbering service
provider.

	42.4	 	Entire agreement
	 
	 	 	This Clause 42 (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.
	 
	42.5	 	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.
	 
	42.6	 	Notification of disclosure
	 
	 	 	Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform
the Borrowers:

	 	(a)	 	of the circumstances of any disclosure of Confidential Information made
pursuant to paragraph (b)(v) of Clause 42.2 (Disclosure of Confidential Information)
except where such disclosure is made to any of the persons referred to in that
paragraph during the ordinary course of its supervisory or regulatory function; and
	 
	 	(b)	 	upon becoming aware that Confidential Information has been disclosed in breach
of this Clause 42 (Confidentiality).

	42.7	 	Continuing obligations
	 
	 	 	The obligations in this Clause 42 (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:

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	 	(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.

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SECTION 12

GOVERNING LAW AND ENFORCEMENT

	43	 	GOVERNING LAW
	 
	 	 	This Agreement and any non-contractual obligations arising out of or in connection with it
are governed by English law.
	 
	44	 	ENFORCEMENT
	 
	44.1	 	Jurisdiction
	 
	(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 44.1 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
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, each Obligor
(other than an Obligor incorporated in England and Wales):

	 	(a)	 	irrevocably appoints CSL as its agent for service of process in relation to any
proceedings before the English courts in connection with any Finance Document; and
	 
	 	(b)	 	agrees that failure by a process agent to notify the relevant Obligor of the
process will not invalidate the proceedings concerned.

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

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SCHEDULE 1 

The Original Parties

PART I 

The Original Obligors

	 	 	 	 	 	 	 
	 	 	 	 	Registration number
	Name of Borrower	 	Jurisdiction of incorporation	 	(or equivalent, if any)
	 
	 	 	 	 	 	 
	Cascal N.V.

	 	The Netherlands
	 	 	34112761	 
	 
	 	 	 	 	 	 
	Cascal Holdings Limited

	 	England and Wales
	 	 	06707340	 

	 	 	 	 	 	 	 
	 	 	 	 	Registration number
	Name of Original Guarantor	 	Jurisdiction of incorporation	 	(or equivalent, if any)
	 
	 	 	 	 	 	 
	BWS Finance Limited

	 	England and Wales
	 	 	05471977	 
	 
	 	 	 	 	 	 
	Cascal Holdings Limited

	 	England and Wales
	 	 	06707340	 
	 
	 	 	 	 	 	 
	Cascal Investments Limited

	 	England and Wales
	 	 	02215221	 
	 
	 	 	 	 	 	 
	Cascal Investments (China) Limited

	 	England and Wales
	 	 	06894845	 
	 
	 	 	 	 	 	 
	Cascal Services Limited

	 	England and Wales
	 	 	03757398	 

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PART II 

The Original Lenders

	 	 	 	 	 	 	 	 	 
	 	 	Revolving Facility	 	Guarantee Facility
	 	 	Commitment	 	Commitment
	Name of Original Lender	 	US$	 	US$
	 
	 	 	 	 	 	 	 	 
	HSBC Bank plc
	 	 	60,000,000	 	 	 	10,000,000	 

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SCHEDULE 2 

Conditions Precedent

PART I 

Conditions Precedent to signing

	1	 	Original Obligors
	 
	(a)	 	A copy of the constitutional documents of each Obligor (comprising for a Dutch Obligor its
deeds of incorporation and articles of association and a recent extract from the Dutch trade
register (handelsregister) relating to it).
	 
	(b)	 	A copy of a resolution of the board of directors or equivalent body of each Obligor which
shall be delivered within twenty-one (21) days of the date of this Agreement provided this is
no later than the date that the initial Utilisation Request is issued:

	 	(i)	 	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;
	 
	 	(ii)	 	authorising a specified person or persons to execute the Finance Documents to
which it is a party on its behalf;
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices (including, if relevant, any Utilisation Request) to
be signed and/or despatched by it under or in connection with the Finance Documents to
which it is a party; and
	 
	 	(iv)	 	in relation to a Dutch Obligor, stating that entering into the Finance
Documents is (a) allowed by that Dutch Obligor’s articles of association and (b) serves
the (best) interest of that Dutch Obligor in the meaning of section 2:7 Dutch Civil
Code (or equivalent legislation in its Relevant Jurisdiction if applicable), in form
and substance acceptable to the Agent.

	(c)	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph (b).
	 
	(d)	 	A copy of a resolution signed by all the holders of the issued shares in each Guarantor,
approving the terms of, and the transactions contemplated by, the Finance Documents to which
the Guarantor is a party.
	 
	(e)	 	A certificate of each Obligor (signed by a director) confirming that borrowing or
guaranteeing, as appropriate, the Original Total Commitments would not cause any borrowing,
guaranteeing or similar limit binding on any Obligor to be exceeded.
	 
	(f)	 	A certificate of an authorised signatory of the relevant Obligor certifying that each copy
document relating to it specified in this Part I of Schedule 2 is correct, complete and in
full force and effect as at a date no earlier than the date of this Agreement.
	 
	(g)	 	In respect of a Dutch Obligor, a copy of a resolution of its general meeting of shareholders
and board of supervisory directors (if any) approving its execution and the terms of, and the
transactions contemplated by, the Finance Documents (and addressing, if applicable, a conflict
of interest and conditional approval for the transfer of voting rights on pledged shares) and
of a concurring unconditional advice of any works council or union which has
advisory rights in respect of the transactions contemplated in the Finance Documents.

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	2	 	Fees
	 
	(a)	 	Evidence that the Fee Letter has been duly executed by the parties to it and evidence that
fees in relation to legal fees and other fees payable to any of the Finance Parties shall be
paid on the Initial Utilisation Date.
	 
	(b)	 	Evidence that the relevant fees, costs and expenses then due from CNV pursuant to Clause 13
(Fees) on the date of signing have been paid or will be paid on or before the date of this
Agreement.
	 
	3	 	Group Structure
	 
	(a)	 	A copy of the Group Structure Chart initialled by CNV.
	 
	(b)	 	A certificate of the Original Parent (signed by a director) confirming that all the shares of
CNV (other than the one (1) share held by David Lawrence Magor in Biwater Overseas Limited)
are held directly or indirectly by Biwater plc and which certificate shall be delivered within
twenty-one (21) days of the date of this Agreement provided this is no later than the date
that the initial Utilisation Request is issued.

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PART II 

Conditions Precedent to Utilisation Before Amendment Date 1

Section A

Original Obligors

	1	 	A certificate of an authorised signatory of each Original Obligor certifying that:

	 	(a)	 	each copy document relating to it provided by it pursuant to Part I of Schedule
2 remains correct, complete and in full force and effect as at a date no earlier than
the date of initial Utilisation; and
	 
	 	(b)	 	in the case of CNV and Original Parent only and in a manner satisfactory to the
Arranger, there has been no material event which will affect the completion of the IPO
on or before the Final IPO Date.

	2	 	Security
	 
	(a)	 	A copy of each of the following Security Documents duly executed by the parties to it:

	 	(i)	 	CNV:

	 	(A)	 	An English law share charge relating to the entire issued share
capital of CSL granted by CNV in favour of the Security Agent for and on behalf
of the Finance Parties.
	 
	 	(B)	 	An English law share charge relating to the entire issued share
capital of BWS Finance Limited granted by CNV in favour of the Security Agent
for and on behalf of the Finance Parties.
	 
	 	(C)	 	An English law accounts charge relating to the Prepayment
Account, Operating Account and Collection Account executed by inter alia CNV in
favour of the Agent for and on behalf of the Finance Parties and Security Agent
for and on behalf of the Finance Parties.

	 	(ii)	 	The Original Parent:
	 
	 	 	 	A Pledge (Dutch law) over the entire issued share capital of CNV, which will be a
second ranking pledge, and which will be entered into together with (inter alia) a
separate deed of priorities between Security Agent and security trustee under the
Biwater Facilities whereby it is agreed that any pledgee of a pledge over the shares
in CNV is entitled on a pari passu basis to enforce its rights under its respective
share pledge provided that any proceeds are distributed on a pro rata basis
according to the proportion at which the debt of which the lenders under the Biwater
Facilities and the Lenders under this Agreement bears to the aggregate debt under
the Biwater Facilities and this Agreement.
	 
	 	 	 	The Pledge shall remain in full force and effect until (a) the earlier of (i) the
Final IPO Date; or (ii) such other date on which the IPO occurs; and (b) such other
date as the Agent may agree.

	(b)	 	A copy of the shareholders’ register for each Dutch Obligor in relation to all shares in such
Dutch Obligor over which Security is expressed to be created.

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	(c)	 	All documentation, and/or evidence of all other steps, required to create, perfect and (where
necessary) register those Security Documents as advised to the Security Agent by its legal
advisers in each relevant jurisdiction.
	 
	(d)	 	A copy of the constitutional documents of any member of the Group whose shares are subject to
Security under any Security Document in the form required by the Agent, together with any
resolutions of the shareholders of that member of the Group adopting such changes to the
constitutional documents of that member of the Group as the Agent requires to, among other
things, remove any restriction on any transfer of shares or voting rights attached to the
shares or partnership interests (or equivalent) in that member of the Group pursuant to any
enforcement of any such Security Document.

Intercreditor Arrangements

	3	 	All documentation in relation to the intercreditor arrangements in a form satisfactory to the
Agent duly executed by the parties to it including inter alia the Original Parent and CNV who
shall be party to this documentation for the purpose of acknowledging the intercreditor
arrangements.
	 
	4	 	Legal opinions

	(a)	 	A legal opinion of Linklaters LLP, legal advisers to the Arranger, the Security Agent and the
Agent in England, substantially in the form distributed to the Original Lenders prior to
signing this Agreement.
	 
	(b)	 	In the case of an Original Obligor incorporated in a jurisdiction other than England and
Wales, a legal opinion of the legal advisers to the Arranger, the Security Agent and the Agent
in the relevant jurisdiction, substantially in the form distributed to the Original Lenders
prior to signing this Agreement.
	 
	(c)	 	In the case of an Original Obligor incorporated in a jurisdiction other than England and
Wales, a legal opinion of the legal advisers to that Obligor in the relevant jurisdiction,
substantially in the form distributed to the Original Lenders prior to signing this Agreement.
	 
	5	 	Financial information
	 
	(a)	 	Certified copies of:

	 	(i)	 	the Original Financial Statements and for the Original Parent evidence that it
does not need to produce annual financial statements;
	 
	 	(ii)	 	the Budget of CNV dated on or about the Utilisation Date.

	(b)	 	Copy of the Forecast Model and a Compliance Certificate.
	 
	6	 	Group Information
	 
	(a)	 	If relevant, a copy of the Business Plan
	 
	(b)	 	A confirmation that the Group Structure Chart has not been amended.
	 
	7	 	Letter of Confirmation
	 
	 	 	A letter from the chairman of the board of directors of the Original Parent date on or near
the Initial Utilisation Date confirming the Original Parent’s continued intention to
complete the IPO on or before the Final IPO Date.
	 
	8	 	Other documents and evidence

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	(a)	 	Evidence that the fees, costs and expenses then due from CNV pursuant to Clause 13 (Fees) and
Clause 18 (Costs and expenses) have been paid or will be paid by the Utilisation Date.
	 
	(b)	 	Evidence that the Fee Letter has been duly executed by the parties to it.
	 
	(c)	 	Evidence that any process agent referred to in Clause 44.2 (Service of process), if not an
Original Obligor, has accepted its appointment.
	 
	(d)	 	A copy of any other Authorisation or other document, opinion or assurance which the Agent
considers to be necessary or desirable (if it has notified CNV accordingly) in connection with
the entry into and performance of the transactions contemplated by any Finance Document or for
the validity and enforceability of any Finance Document.
	 
	(e)	 	An undertaking executed by a director of Biwater Capital plc that it will not require CSL to
repay or settle the loan made by Biwater Capital plc or charge any interest on the loan until
all obligations under this Agreement have been discharged in full.
	 
	(f)	 	Any other documentation that the Agent may reasonably require on 3 days’ prior notification.

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Section B

	1	 	Original Obligors
	 
	(a)	 	A copy of the constitutional documents of each Obligor (comprising for a Dutch Obligor its
deeds of incorporation and articles of association and a recent extract from the Dutch trade
register (handelsregister) relating to it) or a certificate of an authorised signatory of each
Obligor certifying that the constitutional documents most recently delivered to the Agent have
not been amended and remain in full force and effect as at a date no earlier than the proposed
Utilisation Date.
	 
	(b)	 	A copy of a resolution of the board of directors or equivalent body of each Obligor:

	 	(i)	 	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;
	 
	 	(ii)	 	authorising a specified person or persons to execute the Finance Documents to
which it is a party on its behalf;
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices (including, if relevant, any Utilisation Request) to
be signed and/or despatched by it under or in connection with the Finance Documents to
which it is a party; and
	 
	 	(iv)	 	in relation to a Dutch Obligor:

	 	(A)	 	stating that entering into the Finance Documents to which it is
a party is allowed by that Dutch Obligor’s articles of association, and serves
the best interest of that Dutch Obligor in the meaning of section 2:7 Dutch
Civil Code (or equivalent legislation in its Relevant Jurisdiction if
applicable), in form and substance acceptable to the Agent;
	 
	 	(B)	 	including a confirmation that it does not have a works council
(ondernemingsraad); and
	 
	 	(C)	 	confirming that there is no conflict of interest or, if there
is, that no general meeting of shareholders has appointed any other person to
act for that Dutch Obligor with regard to the transaction.

	(c)	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph (b).
	 
	(d)	 	A copy of a resolution signed by all the holders of the issued shares in each Obligor (except
for CNV), approving the terms of, and the transactions contemplated by, the Finance Documents
to which that Obligor is a party.
	 
	(e)	 	A certificate of each Obligor (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 Obligor to be exceeded and, in the case of CNV,
attaching the most up-to-date Group Structure Chart.
	 
	(f)	 	A certificate of an authorised signatory of the relevant Obligor certifying that each copy
document relating to it specified in this Part III of Schedule 2 is correct, complete and in
full force and effect as at a date no earlier than the date of this Agreement.

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	(g)	 	In relation to a Dutch Obligor, a copy of a resolution of its board of supervisory directors
(if any) approving its execution and the terms of, and the transactions contemplated by, the
Finance Documents (and addressing, if applicable, a conflict of interest and conditional
approval for the transfer of voting rights on pledged shares) and of a concurring
unconditional advice of any works council or union which has advisory rights in respect of the
transactions contemplated in the Finance Documents.
	 
	2	 	Security
	 
	(a)	 	A copy of each of the following Security Documents duly executed by the parties to it:

	 	(i)	 	CNV:

	 	(A)	 	An English law share charge relating to the entire issued share
capital of CSL granted by CNV in favour of the Security Agent for and on behalf
of the Finance Parties.
	 
	 	(B)	 	An English law share charge relating to the entire issued share
capital of BWS Finance Limited granted by CNV in favour of the Security Agent
for and on behalf of the Finance Parties.
	 
	 	(C)	 	An English law accounts charge relating to the Prepayment
Account executed by CNV in favour of the Agent for and on behalf of the Finance
Parties and Security Agent for and on behalf of the Finance Parties.
	 
	 	(D)	 	An English law accounts charge relating to the Operating
Account executed by CNV in favour of the Agent for and on behalf of the Finance
Parties and Security Agent for and on behalf of the Finance Parties.
	 
	 	(E)	 	An English law accounts charge relating to the Collection
Account executed by CNV in favour of the Agent for and on behalf of the Finance
Parties and Security Agent for and on behalf of the Finance Parties.

	 	(ii)	 	CSL:
	 
	 	 	 	An English law all assets fixed and floating security deed executed by CSL in favour
of the Security Agent for and on behalf of the Finance Parties.
	 
	 	(iii)	 	CIL:
	 
	 	 	 	An English law accounts charge relating to CIL’s current account and US Dollar call
deposit account granted by CIL in favour of the Agent for and on behalf of the
Finance Parties and the Security Agent for and on behalf of the Finance Parties.

	(b)	 	All documentation, and/or evidence of all other steps, required to create, perfect and (where
necessary) register those Security Documents as advised to the Security Agent by its legal
advisers in each relevant jurisdiction.
	 
	3	 	Legal opinions
	 
	(a)	 	A legal opinion of Linklaters LLP, legal advisers to the Arranger, the Security Agent and the
Agent in England, substantially in the form distributed to the Original Lenders prior to
signing this Agreement.
	 
	(b)	 	In the case of an Original Obligor incorporated in a jurisdiction other than England and
Wales, a legal opinion of the legal advisers to the Arranger, the Security Agent and the

123

 

	 	 	Agent in the relevant jurisdiction,
substantially in the form distributed to the
Original Lenders prior to signing this
Agreement.
	 
	4	 	Financial information

	 	 	Certified copies of the most up-to-date audited financial statements of each Obligor or a
certificate of each Obligor (signed by a director) confirming that the audited financial
statements most recently delivered to the Agent are the most up-to-date audited financial
statements of that Obligor;
	 
	5	 	Group and Acquisition Information
	 
	(a)	 	A copy of the business projections and/or any report prepared for the board in relation to
the Recent Acquisition.
	 
	(b)	 	A confirmation from the CNV (signed by a Director) that all legal, tax, technical, financial,
environmental, insurance and any other relevant due diligence has been completed in relation
to any Recent Acquisition (to the extent applicable).
	 
	(c)	 	A confirmation that the Group Structure Chart has not been amended.
	 
	6	 	Other documents and evidence
	 
	(a)	 	Evidence that the fees, costs and expenses then due from CNV pursuant to Clause 13 (Fees) and
Clause 18 (Costs and expenses) have been paid or will be paid by the Utilisation Date.
	 
	(b)	 	Evidence that the Fee Letter has been duly executed by the parties to it.
	 
	(c)	 	Evidence that any process agent referred to in Clause 44.2 (Service of process), if not an
Original Obligor, has accepted its appointment.
	 
	(e)	 	A letter agreement relating to ancillary business from CNV to the Arranger in a form
acceptable to the Arranger.
	 
	(f)	 	A side letter from a director of CIL to the Agent and the Security Agent confirming that CIL
will work in good faith with the minority shareholder of CWC to make and file appropriate
amendments to CWC’s articles of association to allow CIL to grant an English law shares charge
to the Security Agent over the issued shares it holds in CWC in a form acceptable to the Agent
and the Security Agent within six months of the date of such side letter.
	 
	(g)	 	A copy of any other Authorisation or other document, opinion or assurance which the Agent
considers to be necessary or desirable (if it has notified CNV accordingly) in connection with
the entry into and performance of the transactions contemplated by any Finance Document or for
the validity and enforceability of any Finance Document.
	 
	(h)	 	Any other documentation that the Agent may reasonably require on 3 days’ prior notification.

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PART III 

Conditions Precedent required to be delivered by an Additional Guarantor

	1	 	An Accession Letter, duly executed by the Additional Guarantor and CNV.
	 
	2	 	A copy of the constitutional documents of the Additional Guarantor (comprising for a Dutch
Obligor its deeds of incorporation and articles of association and a recent extract from the
Dutch trade register (handelsregister) relating to it).
	 
	3	 	A copy of a resolution of the board of directors or equivalent body of the Additional
Guarantor:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the Accession
Letter and the Finance Documents and resolving that it execute the Accession Letter and
each Finance Document;
	 
	 	(b)	 	authorising a specified person or persons to execute the Accession Letter and
each Finance Document on its behalf;
	 
	 	(c)	 	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; and
	 
	 	(d)	 	in relation to a Dutch Obligor, stating that entering into the Finance
Documents is (a) allowed by that Dutch Obligor’s articles of association and (b) serves
the best interest of that Dutch Obligor in the meaning of section 2:7 Dutch Civil Code
(or equivalent legislation in its Relevant Jurisdiction if applicable), in form and
substance acceptable to the Agent.

	4	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 3 above.
	 
	5	 	In the case of an Additional Guarantor incorporated in England and Wales, or if so required
by the Agent, 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 guaranteeing
the Total Commitments would not cause any 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 III 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	 	In respect of a Dutch Obligor, a copy of a resolution of its (a) general meeting of
shareholders and (b) board of supervisory directors (if any), approving its execution and the
terms of, and the transactions contemplated by, the Finance Documents (and addressing, if
applicable, a conflict of interest and conditional approval for the transfer of voting rights
on pledged shares) and of concurring unconditional advice of any works council or union which
has advisory rights in respect of the transactions contemplated in the Finance Documents.

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	9	 	A copy of any other Authorisation or other document, opinion or assurance which the 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.
	 
	10	 	If available, the latest audited financial statements of the Additional Guarantor.
	 
	11	 	If the Additional Guarantor is incorporated in a jurisdiction other than England and Wales, a
legal opinion of the legal advisers to the Arranger, the Security Agent and the Agent in the
jurisdiction in which the Additional Guarantor is incorporated.
	 
	12	 	If the Additional Guarantor is incorporated in a jurisdiction other than England and Wales, a
legal opinion of the legal advisers to the Additional Guarantor in the jurisdiction in which
the Additional Guarantor is incorporated.
	 
	13	 	A copy of each Security Document creating such Security as the Agent requires, duly executed
by the Additional Guarantor and the Security Agent (or, if appropriate, the Finance Parties).
	 
	14	 	All documentation, and/or evidence of all other steps, required to perfect those Security
Documents as advised to the Security Agent by its legal advisers in each relevant
jurisdiction.
	 
	15	 	A copy of the constitutional documents of the Additional Guarantor, if its shares are subject
to Security under any Security Document, in the form required by the Agent, together with any
resolutions of the shareholders of the Additional Guarantor adopting such changes to the
constitutional documents of the Additional Guarantor as the Agent requires to, among other
things, remove any restriction on any transfer of shares on voting rights attached to the
shares or partnership interests (or equivalent) in the Additional Guarantor pursuant to any
enforcement of any such Security Document.
	 
	16	 	If the Additional Guarantor is incorporated in a jurisdiction other than England and Wales,
evidence of compliance with any similar or equivalent procedure for permitting financial
assistance.
	 
	17	 	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 a
Guarantor, has accepted its appointment in relation to the proposed Additional Guarantor.
	 
	18	 	Evidence satisfactory to the Agent that each Lender has carried out and is satisfied it has
complied with all necessary “know your customer” or other similar checks in respect of the
Additional Guarantor under all applicable laws and regulations pursuant to the transactions
contemplated in the Finance Documents.

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SCHEDULE 3 

Requests

PART I 

Utilisation
Request 

Revolving
Facility Loans

	 	 
	From:  	
[Cascal N.V./Cascal Holdings Limited]
	 	 
	To: 	  
HSBC Bank plc

Dated:

Dear Sirs

Cascal N.V. — US$70,000,000 Facility Agreement originally dated 25 June 2007, as amended and

restated on 2 November 2007 and as further amended on 19 November 2007 and as further amended and

restated on 12 June 2008, as further amended on 23 February 2004 and as further amended and

restated on 26 June 2009 (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 borrow a Revolving Facility Loan on the following terms:

	 	 	 
	Proposed Utilisation Date:

	 	[          ] (or, if that is not a Business
	 

	 	Day, the next Business Day)
	 
	 	 
	Facility to be utilised:

	 	Revolving Facility
	 
	 	 
	Currency of Revolving Facility Loan:

	 	US Dollars
	 
	 	 
	Amount:

	 	[          ] or, if less, the Available Facility
	 
	 	 
	Interest Period:

	 	[          ]

	3	 	We confirm that each condition specified in Clause 4.3 (Further conditions precedent) is
satisfied on the date of this Utilisation Request.
	 
	4	 	The proceeds of this Revolving Facility Loan should be credited to [account].
	 
	5	 	This Utilisation Request is irrevocable.

Yours faithfully

	 	 	 
	 

	 	 
	authorised signatory for
	 	 
	[Cascal N.V./Cascal Holdings Limited]
	 	 

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PART II 

Utilisation Request 

Bank Guarantee

From: [Cascal N.V./Cascal Holdings Limited]

To: HSBC Bank plc

Dated:

Dear Sirs

Cascal N.V. — US$70,000,000 Facility Agreement originally dated 25 June 2007, as amended and

restated on 2 November 2007 and as further amended on 19 November 2007 and as further amended and

restated on 12 June 2008, as further amended on 23 February 2004 and as further amended and

restated on 26 June 2009 (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 Bank Guarantee to be issued by the Issuing Bank on the following
terms:

	 	 	 
	Proposed Utilisation Date:

	 	[          ] (or, if that is not a Business Day, the
	 

	 	next Business Day)
	 
	 	 
	Facility to be utilised:

	 	Guarantee Facility
	 
	 	 
	Currency of Bank Guarantee:

	 	US Dollars
	 
	 	 
	Amount:

	 	[          ] or, if less, the Available Facility
	 
	 	 
	Beneficiary:

	 	[     ]
	 
	 	 
	Term or Expiry Date:

	 	[          ]
	 
	 	 
	Issuing Bank:

	 	HSBC Bank plc

	3	 	We confirm that each condition specified in Clause 6.6 (Issue of Bank Guarantee) is satisfied
on the date of this Utilisation Request.
	 
	4	 	We attach a copy of the proposed Bank Guarantee.
	 
	5	 	This Utilisation Request is irrevocable.

Delivery Instructions:

[Specify delivery instructions]

Yours faithfully

	 	 	 
	 
	 

	 	 
	authorised signatory for
	 	 
	[Cascal N.V./Cascal Holdings Limited]
	 	 

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SCHEDULE 4 

Mandatory Cost Formulae

	1	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions)
or (b) the requirements of the European Central Bank.
	 
	2	 	On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall
calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in
accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the
Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to
the percentage participation of each Lender in the relevant Revolving Facility Loan or Bank
Guarantee) and will be expressed as a percentage rate per annum.
	 
	3	 	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating
Member State will be the percentage notified by that Lender to the Agent. This percentage will
be certified by that Lender in its notice to the Agent to be its reasonable determination of
the cost (expressed as a percentage of that Lender’s participation in all Revolving Facility
Loans made or any Bank Guarantee from that Facility Office) of complying with the minimum
reserve requirements of the European Central Bank in respect of loans made from that Facility
Office.
	 
	4	 	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom
will be calculated by the Agent as follows:

	 	(a)	 	in relation to a sterling Revolving Facility Loan or any Bank Guarantee:

	 	 	 
	

	 	per cent. per annum

	 	(b)	 	in relation to a Revolving Facility Loan or any Bank Guarantee in any currency
other than sterling:

	 	 	 
	

	 	per cent. per annum.

	 	 	Where:

	 	(E)	 	is the percentage of Eligible Liabilities (assuming these to be in excess of
any stated minimum) which that Lender is from time to time required to maintain as an
interest free cash ratio deposit with the Bank of England to comply with cash ratio
requirements.
	 
	 	(F)	 	is the percentage rate of interest (excluding the Margin and the Mandatory Cost
and, if the Revolving Facility Loan or any Bank Guarantee is an Unpaid Sum, the
additional rate of interest specified in Clause 10.3(a)) payable for the relevant
Interest Period on the Revolving Facility Loan or any Bank Guarantee.
	 
	 	(G)	 	is the percentage (if any) of Eligible Liabilities which that Lender is
required from time to time to maintain as interest bearing Special Deposits with the
Bank of England.

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	 	(H)	 	is the percentage rate per annum payable by the Bank of England to the Agent on
interest bearing Special Deposits.
	 
	 	(I)	 	is designed to compensate Lenders for amounts payable under the Fees Rules and
is calculated by the Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and
expressed in pounds per £1,000,000.

	5	 	For the purposes of this Schedule:

	 	(a)	 	“Eligible Liabilities” and “Special Deposits” have the meanings given to them
from time to time under or pursuant to the Bank of England Act 1998 or (as may be
appropriate) by the Bank of England;
	 
	 	(b)	 	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision
Manual or such other law or regulation as may be in force from time to time in respect
of the payment of fees for the acceptance of deposits;
	 
	 	(c)	 	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the
activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee
required pursuant to the Fees Rules but taking into account any applicable discount
rate); and
	 
	 	(d)	 	“Tariff Base” has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

	6	 	In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting figures
shall be rounded to four decimal places.
	 
	7	 	If requested by the Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Agent the rate of charge
payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules
in respect of the relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that
Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff
Base of that Reference Bank.
	 
	8	 	Each Lender shall supply any information required by the Agent for the purpose of calculating
its Additional Cost Rate. In particular, but without limitation, each Lender shall supply the
following information on or prior to the date on which it becomes a Lender:

	 	(a)	 	the jurisdiction of its Facility Office; and
	 
	 	(b)	 	any other information that the Agent may reasonably require for such purpose.

	 	 	Each Lender shall promptly notify the Agent of any change to the information provided by it
pursuant to this paragraph.
	 
	9	 	The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Reference Bank for the purpose of E above shall be determined by the Agent based upon the
information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that,
unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation to
cash ratio deposits and Special Deposits are the same as those of

130

 

	 	 	a typical bank from its jurisdiction of incorporation with a Facility Office in the same
jurisdiction as its Facility Office.

	10	 	The Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.
	 
	11	 	The Agent shall distribute the additional amounts received as a result of the Mandatory Cost
to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8
above.
	 
	12	 	Any determination by the Agent pursuant to this Schedule in relation to a formula, the
Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties.
	 
	13	 	The Agent may from time to time, after consultation with the Borrowers and the Lenders,
determine and notify to all Parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any requirements from time
to time imposed by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or any of its functions)
and any such determination shall, in the absence of manifest error, be conclusive and binding
on all Parties.

131

 

SCHEDULE 5 

Form of Transfer Certificate

	 	 	 
	To:

	 	HSBC Bank plc as Agent
	 
	 	 
	From:

	 	[The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)
	 
	 	 
	Dated:
	 	 

Cascal N.V. — US$70,000,000 Facility Agreement originally dated 25 June 2007, as amended and

restated on 2 November 2007 and as further amended on 19 November 2007 and as further amended and

restated on 12 June 2008, as further amended on 23 February 2004 and as further amended and

restated on 26 June 2009 (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 26.5 (Procedure for transfer):

	 	(a)	 	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 26.5 (Procedure for transfer).
	 
	 	(b)	 	The proposed Transfer Date is [          ].
	 
	 	(c)	 	The Facility Office and address, fax number and attention details for notices
of the New Lender for the purposes of Clause 36.2 (Addresses) are set out in the
Schedule.
	 
	 	(d)	 	The New Lender agrees to be bound by the terms of the Agreement as a Lender.

	3	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in Clause 26.4(c).
	 
	4	 	The New Lender hereby represents and warrants that it is a professional market party
(professionele marketpartij) as set out in the Dutch Financial Supervision Act (Wet op het
financieel toezicht). [This representation shall only be given if the amount transferred is
less than €50,000 (or its equivalent in foreign currency)]
	 
	5	 	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 (for the purposes of
section 11(2) of the Taxes Act) the whole of any share of interest payable in

132

 

	 	 	 	respect of that advance that falls to it by reason of sections 114 and 115
of the Taxes Act;

	 	(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 (for the
purposes of section 11(2) of the Taxes Act) of that company.
	 
	 	[4/5].	 	 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.
	 
	 	[5/6].	 	This Transfer Certificate is governed by English law.

133

 

THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details

for payments.]

			
	 	 	 
	[Existing Lender]
	 	[New Lender]
	By:
	 	By:

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as

[          ].

HSBC Bank plc

By:

134

 

SCHEDULE 6 

Form of accession Letter

	 	 	 
	To:

	 	HSBC Bank plc as Agent
	 
	 	 
	From:

	 	[Subsidiary] and Cascal N.V. (“CNV”)
	 
	 	 
	Dated:
	 	 
	 
	 	 
	Dear Sirs
	 	 

Cascal N.V. — US$70,000,000 Facility Agreement originally dated 25 June 2007, as amended and

restated on 2 November 2007 and as further amended on 19 November 2007 and as further amended and

restated on 12 June 2008, as further amended on 23 February 2004 and as further amended and

restated on 26 June 2009 (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	 	[Subsidiary] agrees to become an Additional Guarantor and to be bound by the terms of the
Agreement as an Additional Guarantor pursuant to Clause 27.2 (Additional Guarantors) of the
Agreement.
	 
	3	 	[Subsidiary] is a company duly incorporated under the law of [name of relevant jurisdiction].
	 
	 	 	[The guarantee of [Subsidiary] [giving a guarantee other than in respect of its Subsidiary]
is subject to the following limitations:

	 	(a)	 	if [Subsidiary] is incorporated in [                  ] [and is giving a
guarantee other than in respect of its Subsidiary], those limitations set out in
paragraph (a)
[([                  ])] of Clause 19.10 (Limitations) of the
Agreement, in relation to [Subsidiary];
	 
	 	(b)	 	if:

	 	(i)	 	[Subsidiary] is incorporated in any other jurisdiction [and is
giving a guarantee other than in respect of its Subsidiary]; or
	 
	 	(ii)	 	[Subsidiary] is incorporated in [                  ]
[or [                  ]] [and is giving a guarantee other than in respect of its
Subsidiary] and limitations other than those set out in paragraph (a) [or [                  ]] of Clause 19.10 (Limitations) of the Agreement are agreed in
respect of [Subsidiary],

	 	 	 	[insert guarantee limitation wording for relevant jurisdiction].]

	4	 	CNV confirms that no Default is continuing or would occur as a result of [Subsidiary]
becoming an Additional Guarantor under the Finance Documents nor any other existing financing
arrangements.

	5	 	[Subsidiary’s] administrative details are as follows:

Address:

Fax No:

Attention:

135

 

	6	 	This Accession Letter is governed by English law.
	 
	 	 	This Guarantor Accession Letter has been delivered on the date stated at the beginning of
this Guarantor Accession Letter.

	 	 	 
	 

	 	 
	for and on behalf of
	 	 
	Cascal N.V.
	 	 
	 
	 	 
	 

	 	 
	for and on behalf of
	 	 
	[Subsidiary]
	 	 

136

 

SCHEDULE 7 

Form of Compliance Certificate

	 	 	 
	To:

	 	HSBC Bank plc as Agent
	 
	 	 
	From:

	 	Cascal N.V.
	 
	 	 
	Dated:
	 	 
	 
	 	 
	Dear Sirs
	 	 

Cascal N.V. — US$70,000,000 Facility Agreement originally dated 25 June 2007, as amended and

restated on 2 November 2007 and as further amended on 19 November 2007 and as further amended and

restated on 12 June 2008, as further amended on 23 February 2004 and as further amended and

restated on 26 June 2009 (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:

	 	(a)	 	the ratio of EBITDA to Net Interest Expense for the Relevant Period ended on
[•] (the “Calculation Date”) was [•] to 1;
	 
	 	(b)	 	the ratio of Net Borrowings to EBITDA for that Relevant Period was [•] to 1 on
the Calculation Date;
	 
	 	(c)	 	the ratio of Net Senior Borrowings to RAV for the Accounting Period ending on
the Calculation Date was [•] to 1;
	 
	 	(d)	 	the ratio of Cash Flow to Debt Service for that Relevant Period was [•] to 1;
and
	 
	 	(e)	 	the ratio of total Debt Service to EBITDA of the English Companies for the
Relevant Period ending on the Calculation Date was [•] to 1.

	3	 	We attach the financial statements delivered pursuant to paragraph (a)[(i)] of Clause 21.1
(Financial statements) or quarterly accounts delivered pursuant to Clause 21.2 (Quarterly
financial statements) of the Agreement.
	 
	4	 	We hereby confirm that no Default is continuing.1
	 
	5	 	We hereby confirm that all financial covenants under all Existing Indebtedness have been
satisfied for the period [•].

	 	 	 	 	 	 	 	 	 
	Signed:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 

	 	CFO
	 	 	 	Director	 	 
	 

	 	of
	 	 	 	of	 	 
	 

	 	Cascal N.V.
	 	 	 	Cascal N.V.	 	 

 

			
	1	 	If this statement cannot be made, the certificate
should identify any Default that is continuing and the steps, if any, being
taken to remedy it.

137

 

[insert applicable certification language]

	 	 	 
	 

	 	 
	for and on behalf of
	 	 
	[name of auditors of CNV]
	 	 

138

 

SCHEDULE 8 

Timetables

PART I 

Revolving Facility Loans

“D —” refers to the number of Business Days before the relevant Utilisation Date/the first
day of the relevant Interest Period.

	 	 	 
	 	 	Revolving Facility Loans
	 	 	in US Dollars
	Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request))

	 	D — 4 
11:00 a.m.

(London time)
	 
	 	 
	Agent determines (in relation to a Utilisation)
the amount of the Revolving Facility Loan, if required under Clause 5.4 (Lenders’
participation) and notifies the Lenders of the
Revolving Facility Loan in accordance with Clause
5.4 (Lenders’ participation)

	 	D — 3 
11:00 a.m.
	 
	 	 
	LIBOR is fixed

	 	Quotation Day as of
11:00 a.m.

139

 

PART II 

Bank Guarantee

“D —” refers to the number of Business Days before the relevant Utilisation Date.

	 	 	 
	 	 	US Dollars
	Delivery of a duly completed Utilisation Request (Clause 6.3 (Delivery of a Utilisation Request
for Bank Guarantee))

	 	D — 4
11:00 a.m.

(London time)
	 
	 	 
	Agent determines (in relation to a Utilisation) the amount of the Bank Guarantee, if required
under Clause 6.6 (Issue of Bank Guarantee) and
notifies the Issuing Bank and the Lenders of the
Bank Guarantee in accordance with Clause 6.6
(Issue of Bank Guarantee)

	 	D — 3
11:00 a.m.
	 
	 	 
	Delivery of a duly completed Renewal Request (Clause 6.7 (Renewal of a Bank Guarantee)).

	 	D — 90
10:00 a.m.

140

 

SCHEDULE 9 

Security Agency Provisions

	1	 	Definitions
	 
	 	 	In this Schedule:
	 
	 	 	"Security Property” means all right, title and interest in, to and under any Security
Document, including:

	 	(i)	 	the assets over which Security is expressed to be created pursuant to any
Security Document (the “Charged Assets”);
	 
	 	(ii)	 	the benefit of the undertakings in any Security Document; and
	 
	 	(iii)	 	all sums received or recovered by the Security Agent pursuant to any Security
Document and any assets representing the same.

	2	 	Declaration of trust
	 
	(a)	 	The Security Agent and each other Finance Party agree that the Security Agent shall hold the
Security Property in trust for the benefit of the Finance Parties on the terms of the
Agreement.
	 
	(b)	 	Subject to paragraph (c), paragraph (a) shall not apply to any Security Document which is
expressed to be or is construed to be governed by any law other than English law or any other
law from time to time designated by the Security Agent and an Obligor or any Security Property
arising under any such Security Document.
	 
	(c)	 	Paragraph (b) shall not affect or limit Clause 29.18(d) (Parallel Debt) nor the applicability
of the provisions of this Schedule with respect to any Security Document which is expressed to
be or is construed to be governed by any law other than English law or any other law from time
to time designated by the Security Agent and an Obligor or any Security Property arising under
any such Security Document.
	 
	3	 	Defects in Security
	 
	 	 	The Security Agent shall not be liable for any failure or omission to perfect, or defect in
perfecting, the Security created pursuant to any Security Document, including:

	 	(a)	 	failure to obtain any Authorisation for the execution, validity, enforceability
or admissibility in evidence of any Security Document; or
	 
	 	(b)	 	failure to effect or procure registration of or otherwise protect or perfect
any of the Security created by the Security Documents under any laws in any territory.

	4	 	No enquiry
	 
	 	 	The Security Agent may accept without enquiry, requisition, objection or investigation such
title as any Obligor may have to any Charged Assets.
	 
	5	 	Retention of documents
	 
	 	 	The Security Agent may hold title deeds and other documents relating to any of the Charged
Assets in such manner as it sees fit (including allowing any Obligor to retain them).

141

 

	6	 	Indemnity out of Security Property
	 
	 	 	The Security Agent and every receiver, delegate, attorney, agent or other similar person
appointed under any Security Document may indemnify itself out of the Security Property
against any cost, loss or liability incurred by it in that capacity (otherwise than by
reason of its own gross negligence or wilful misconduct).
	 
	7	 	Basis of distribution
	 
	 	 	To enable it to make any distribution, the Security Agent may fix a date as at which the
amount of the Debt is to be calculated and may require, and rely on, a certificate from any
Party giving details of:

	 	(a)	 	any sums due or owing to any Party as at that date; and
	 
	 	(b)	 	such other matters as it thinks fit.

	8	 	Rights of Security Agent
	 
	 	 	The Security Agent shall have all the rights, privileges and immunities which gratuitous
trustees have or may have in England, even though it is entitled to remuneration.
	 
	9	 	No duty to collect payments
	 
	 	 	The Security Agent shall not have any duty:

	 	(a)	 	to ensure that any payment or other financial benefit in respect of any of the
Charged Assets or any Debt is duly and punctually paid, received or collected; or
	 
	 	(b)	 	to ensure the taking up of any (or any offer of any) stocks, shares, rights,
moneys or other property accruing or offered at any time by way of interest, dividend,
redemption, bonus, rights, preference, option, warrant or otherwise in respect of any
of the Charged Assets or any Debt.

	10	 	Perpetuity period
	 
	 	 	The perpetuity period for the trusts created by this Agreement shall be 80 years from this
date of this Agreement.
	 
	11	 	Appropriation
	 
	(a)	 	Each Party irrevocably waives any right to appropriate any payment to, or other sum received,
recovered or held by, the Security Agent in or towards payment of any particular part of the
Debt and agrees that the Security Agent shall have the exclusive right to do so.
	 
	(b)	 	Paragraph (a) will override any application made or purported to be made by any other person.
	 
	12	 	Investments
	 
	 	 	All money received or held by the Security Agent pursuant to this trusts in this Agreement
may, in the name of, or under the control of, the Security Agent:

	 	(a)	 	be invested in any investment it may select; or
	 
	 	(b)	 	be deposited at such bank or institution (including itself, any other Finance
Party or any Affiliate of any Finance Party) as it thinks fit.

142

 

	13	 	Suspense account
	 
	 	 	Subject to paragraph 14 (Timing of distributions), the Security Agent may:

	 	(a)	 	hold in an interest bearing suspense account any moneys received by it from any
Party; and
	 
	 	(b)	 	invest an amount equal to the balance from time to time standing to the credit
of that suspense account in any of the investments authorised by paragraph 12
(Investments).

	14	 	Timing of distributions
	 
	 	 	Distributions by the Security Agent shall be made as and when determined by it.
	 
	15	 	Delegation
	 
	(a)	 	The Security Agent may:

	 	(i)	 	employ and pay an agent selected by it to transact or conduct any business and
to do all acts required to be done by it (including the receipt and payment of money);
	 
	 	(ii)	 	delegate to any person on any terms (including power to sub-delegate) all or
any of its functions; and
	 
	 	(iii)	 	with the prior consent of the Majority Lenders, appoint, on such terms as it
may determine, or remove, any person to act either as separate or joint security
trustee or security agent with those rights and obligations vested in the Security
Agent by this Agreement or any Security Document.

	(b)	 	The Security Agent will not be:

	 	(i)	 	responsible to anyone for any misconduct or omission by any agent, delegate or
security trustee or security agent appointed by it pursuant to paragraph (a); or
	 
	 	(ii)	 	bound to supervise the proceedings or acts of any such agent, delegate or
security trustee or security agent,
	 
	 	 	 	provided that it exercises reasonable care in selecting that agent, delegate or
security trustee or security agent.

	16	 	Unwinding
	 
	 	 	Any appropriation or distribution which later transpires to have been or is agreed by the
Security Agent to have been invalid or which has to be refunded shall be refunded and shall
be deemed never to have been made.
	 
	17	 	Party
	 
	 	 	The Security Agent shall be entitled to assume that a Party is acting in a particular
capacity stated in this Agreement or an Accession Deed unless notified to the contrary.
	 
	18	 	Disapplication
	 
	 	 	Section 1 of the Trustee Act 2000 shall not apply to the duties and powers of the Security
Agent in relation to the trusts constituted by any Finance Document save to the extent
required by law. Where there are inconsistencies between the Trustee Act 1925 and the
Trustee Act 2000 and the express provisions of any such Finance Document, the provisions of
such Finance Document shall, to the extent allowed by law, prevail and, in the

143

 

	 	 	case of any such inconsistency with the Trustee Act 2000, the provisions of such Finance
Document shall constitute a restriction or exclusion for the purposes of that Act.

144

 

SCHEDULE 10 

Existing Indebtedness

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	Currency	 	USD	 	 	 	 
	Company with	 	Commencement	 	Lender/Security	 	Year of	 	 	 	Facility	 	Balance	 	Balance	 	 	 	 
	liability	 	Date	 	Holder	 	Expiry	 	Currency	 	(000s)	 	(000s)*	 	(000s)*	 	Security	 	Comments
	Third Party Facilities
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loans and Guarantees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BOURNEMOUTH & WEST
HANTS. WATER PLC

	 	21/06/2006
	 	RBS
	 	 	2009	 	 	GBP
	 	 	10,000	 	 	 	 	 	 	 	 	 	 	Subordinated facility -—
secured (BSTID)
	 	Acquisition
Facility used to
secure Pension
deficit
	Guarantee Balance

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8,600	 	 	$	14,074	 	 	 	 	 
	BOURNEMOUTH & WEST
HANTS. WATER PLC

	 	20/04/2005
	 	RBS (‘Artesian’)
	 	 	2033	 	 	GBP
	 	65,000
(+indexation)
	 	 	74,533	 	 	$	121,973	 	 	Secured facility (BSTID)
	 	General funding for
BWH regulated
business and used
to refinance Pref
Shares Index linked
with indexation
added to
	BOURNEMOUTH & WEST
HANTS. WATER PLC

	 	Revolving
	 	Lloyds Bank
	 	 	N/A	 	 	GBP
	 	 	5,000	 	 	      nil
	 	$	nil	 	 	Unsecured
	 	Overdraft facility;
rolled over
annually on 31
March
	BOURNEMOUTH & WEST
HANTS. WATER PLC

	 	 N/A
	 	Perpetual Debentures
	 	 	N/A	 	 	GBP
	 	 	163	 	 	 	163	 	 	$	267	 	 	Unsecured	 	 

145

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	Currency	 	USD	 	 	 	 
	Company with	 	Commencement	 	Lender/Security	 	Year of	 	 	 	Facility	 	Balance	 	Balance	 	 	 	 
	liability	 	Date	 	Holder	 	Expiry	 	Currency	 	(000s)	 	(000s)*	 	(000s)*	 	Security	 	Comments
	THE GREATER NELSPRUIT
UTILITY COMPANY
(PROPRIETARY) LIMITED

	 	30/09/00
	 	Development Bank of
Southern Africa
	 	 	2020	 	 	ZAR
	 	 	71,351	 	 	 	53,709	 	 	$	6,709	 	 	Secured on “A”
preference shares
	 	Used to finance
infrastructure
	SIZA WATER

	 	 	 	Investec
	 	 	2017	 	 	ZAR
	 	 	27,700	 	 	 	15,045	 	 	$	1,879	 	 	Guarantee — see below	 	 
	AGUAS SANTIAGO SA

	 	 28/11/02
	 	Banco de Chile
	 	 	2011	 	 	UF
	 	 	114	 	 	 	29	 	 	$	1,121	 	 	 	 	 
	BAYESA

	 	 13/1/04
	 	Banco BICE
	 	 	2013	 	 	UF
	 	 	258	 	 	 	121	 	 	$	4,772	 	 	Accounts receivable	 	 
	AGUAS de PANAMA SA

	 	 11/4/03
	 	IFC
	 	 	2012	 	 	USD
	 	 	16,000	 	 	 	5,153	 	 	$	5,153	 	 	Charge over bank
account and assignment
of receivables.
Guarantee — see below	 	 
	PT ADHYA TIRTA BATAM

	 	 DEC 2008
	 	CIMB Niaga Bank
	 	 	2013	 	 	IDR
	 	 	40,000,000	 	 	 	39,977,000	 	 	$	3,958	 	 	Infrastructure,
accounts receivable,
operating account
	 	Cascal consolidates
50% of this company
on a proportionate
basis
	ZHUMADIAN CHINA WATER
COMPANY LIMITED

	 	 15/6/08
	 	Zhumadian City
Investment Company
Limited
	 	 	2018	 	 	RMB
	 	 	178,000	 	 	 	173,000	 	 	$	25,313	 	 	Unsecured	 	 

146

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	Currency	 	USD	 	 	 	 
	Company with	 	Commencement	 	Lender/Security	 	Year of	 	 	 	Facility	 	Balance	 	Balance	 	 	 	 
	liability	 	Date	 	Holder	 	Expiry	 	Currency	 	(000s)	 	(000s)*	 	(000s)*	 	Security	 	Comments
	CASCAL N.V. Guarantee
(for benefit of):

	 	 	 	Lloyds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	NOTE: TO BE
REPLACED BY
UTILISATION OF THE
FACILITY
	DBSA/Nelspruit Council

	 	 	 	 	 	 	 	 	 	RAND
	 	ZAR 10,819
	 	 	 	 	 	 	 	 	 	 	)Cash collateralised
	 	Main Performance
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	)$163k
	 	Guarantee
	Nelspruit Council

	 	 	 	 	 	 	 	 	 	RAND
	 	ZAR 721
	 	 	 	 	 	 	 	 	 	 	) 	 	Customer Deposit
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	) 	 	Guarantee
	CASCAL BV and Cascal
Investments Limited
Guarantee (for benefit
of):

	 	 2006
	 	I.F.C.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	5,153	 	 	 	 	 
	Aquas de Panama

	 	 	 	 	 	 	 	 	 	USD
	 	$	16,000	 	 	 	 	 	 	 	 	 	 	Guarantee is unsecured
	 	Guarantee is currently provided by Biwater Plc but is counter
indemnified by
Cascal BV pending
transfer of IFC
guarantee to Cascal
BV
	Finance Leases
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BOURNEMOUTH & WEST
HANTS. WATER PLC

	 	 1995
	 	W&G Leasing
	 	 	2015	 	 	GBP
	 	 	4,420	 	 	 	4,420	 	 	$	7,233	 	 	 	 	Approx half paid
off within 5 years

147

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	Currency	 	USD	 	 	 	 
	Company with	 	Commencement	 	Lender/Security	 	Year of	 	 	 	Facility	 	Balance	 	Balance	 	 	 	 
	liability	 	Date	 	Holder	 	Expiry	 	Currency	 	(000s)	 	(000s)*	 	(000s)*	 	Security	 	Comments
	Intercompany Loans
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CASCAL S.A.

	 	 2000
	 	Cascal N.V.
	 	 	N/A	 	 	USD
	 	 	N/A	 	 	 	24,988	 	 	$	24,988	 	 	Unsecured
	 	General facility
for funding Chilean
businesses
	Bayesa S.A

	 	 	 	Cascal N.V.
	 	 	 	 	 	USD
	 	 	 	 	 	 	379	 	 	$	379	 	 	 	 	 
	Cascal Operations
(Proprietary) Limited

	 	 	 	Cascal N.V.
	 	 	 	 	 	USD
	 	 	 	 	 	 	308	 	 	$	308	 	 	 	 	 
	Greater Nelspruit
Utility Co.

	 	 	 	Cascal N.V.
	 	 	 	 	 	USD
	 	 	 	 	 	 	810	 	 	$	810	 	 	 	 	 
	Cascal N.V.

	 	 	 	BWSF
	 	 	 	 	 	USD
	 	 	 	 	 	 	9,228	 	 	$	9,228	 	 	 	 	 
	BOURNEMOUTH & WEST
HANTS. WATER

	 	 2007
	 	PRE HEAT LIMITED
	 	 	N/A	 	 	GBP
	 	 	N/A	 	 	 	1,317	 	 	$	2,155	 	 	 	 	General funding for
BWHW Plc
	CASCAL HOLDINGS LIMITED

	 	 2009
	 	CASCAL N.V.
	 	 	 	 	 	USD
	 	 	 	 	 	$	60,000	 	 	$	60,000	 	 	 	 	 
	CASCAL HOLDINGS

	 	 2009
	 	CASCAL N.V.
	 	 	 	 	 	USD
	 	 	 	 	 	 	60,000	 	 	$	60,000	 	 	 	 	 
	AGUAS SANTIAGO

	 	 2008
	 	CASCAL N.V.
	 	 	 	 	 	USD
	 	 	 	 	 	 	22,003	 	 	$	22,003	 	 	 	 	 

148

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	Currency	 	USD	 	 	 	 
	Company with	 	Commencement	 	Lender/Security	 	Year of	 	 	 	Facility	 	Balance	 	Balance	 	 	 	 
	liability	 	Date	 	Holder	 	Expiry	 	Currency	 	(000s)	 	(000s)*	 	(000s)*	 	Security	 	Comments
	CHINA WATER

	 	 2008
	 	CASCAL N.V.
	 	 	 	 	 	USD
	 	 	 	 	 	 	7,933	 	 	$	7,933	 	 	 	 	Shareholder loan to
part fund major
capex project
undertaken by
Zhumadian EJV. Loan
is down streamed to
Zhumadian China
Water Company
Limited
	CASCAL HOLDINGS

	 	 2009
	 	CASCAL SERVICES LIMITED
	 	 	 	 	 	GBP
	 	 	 	 	 	 	41,359	 	 	$	67,684	 	 	 	 	 
	CASCAL INVESTMENTS
(CHINA) LIMITED

	 	 2009
	 	CASCAL HOLDINGS LIMITED
	 	 	 	 	 	USD
	 	 	 	 	 	 	57,957	 	 	$	57,957	 	 	 	 	 
	CASCAL INVESTMENTS
(CHINA) LIMITED

	 	 2009
	 	CASCAL INVESTMENTS
LIMITED
	 	 	 	 	 	USD
	 	 	 	 	 	 	2,492	 	 	$	2,492	 	 	 	 	 

149

 

SCHEDULE 11 

Existing Security 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Maximum Principal	 	 
	 	 	 	 	 	 	 	 	Loan Amount Secured	 	Actual Outstanding
	 	 	Name of entity	 	 	 	 	 	(whether or not utilised)	 	Balance
	Date	 	creating security	 	Security Holder	 	Year of Expiry	 	(in equivalent to USD)	 	(in equivalent to USD)
	01/02/2007

	 	Cascal N.V.
	 	Lloyds Bank Plc
(cash collateral
provided for
guarantee facility
used by Cascal BV)
	 	2008
	 	>1 million
	 	 $163,000
	11/04/2003

	 	CIL
	 	I.F.C. (share pledge
of Aguas de Panama
shares)
	 	2012
	 	16 million
	 	 $5.15 million
	14/09/2008

	 	Cascal N.V.
	 	Investec bank re Siza
	 	2009 (14/09)
	 	2.2 million
	 	 $1.88 million
	Total

	 	 	 	 	 	 	 	 	 	$7.193 million
	01/02/2007

	 	Cascal N.V.
	 	Lloyds Bank Plc
(cash collateral
provided for
guarantee facility
used by Cascal BV)
	 	2008
	 	>1 million
	 	 $163,000
	11/04/2003

	 	CIL
	 	I.F.C. (share pledge
of Aguas de Panama
shares)
	 	2012
	 	16 million
	 	 $5.15 million

150

 

CASCAL FACILITY AGREEMENT

SIGNATURE PAGE 1

	 	 	 
	The Borrowers
	 
	 	 
	CASCAL N.V.
	 
	 	 
	Address:

	 	6.1.24, Strawinskylaan 3105
	 

	 	1077 ZX
	 

	 	Amsterdam, The Netherlands
	Fax No:

	 	+31 2044 22384
	Attention:

	 	Chief Commercial Officer
	 
	 	 
	By:
	 	 
	 
	 	 
	CASCAL HOLDINGS LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	 
	 
	 	 
	The Guarantors
	 
	 	 
	BWS FINANCE LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	 

151

 

CASCAL FACILITY AGREEMENT

SIGNATURE PAGE 2

	 	 	 
	CASCAL HOLDINGS LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	 
	 
	 	 
	CASCAL INVESTMENTS LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	 
	 
	 	 
	CASCAL INVESTMENTS (CHINA) LIMITED
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ]
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	 

152

 

CASCAL FACILITY AGREEMENT

SIGNATURE PAGE 3

	 	 	 
	CASCAL SERVICES LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	 

153

 

CASCAL FACILITY AGREEMENT

SIGNATURE PAGE 4

	 	 	 
	The Arranger
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	HBEU Thames Valley Corporate Banking
	 

	 	Centre Apex Plaza
	 

	 	Reading
	 

	 	RG1 1AX
	Fax No:

	 	+44 (0)8455 879489
	Attention:

	 	Sue Barnes, Corporate Banking Manager
	 
	 	 
	By:
	 	 
	 
	 	 
	The Original Lender
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	HBEU Thames Valley Corporate Banking
	 

	 	Centre Apex Plaza
	 

	 	Reading
	 

	 	RG1 1AX
	Fax No:

	 	+44 (0)8455 879489
	Attention:

	 	Sue Barnes, Corporate Banking Manager
	 
	 	 
	By:
	 	 

154

 

CASCAL FACILITY AGREEMENT

SIGNATURE PAGE 5

	 	 	 
	The Agent
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	24th Floor
	 

	 	8 Canada Square
	 

	 	London E14 5HQ
	Fax No:

	 	020 7992 4680
	Attention:

	 	Corporate Trust and Loan Agency, Loans Administration
	 
	 	 
	By:
	 	 
	 
	 	 
	The Security Agent
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	24th Floor
	 

	 	8 Canada Square
	 

	 	London E14 5HQ
	Fax No:

	 	020 7992 4680
	Attention:

	 	Corporate Trust and Loan Agency, Loans Administration
	 
	 	 
	By:
	 	 
	 
	 	 
	The Issuing Bank
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	24th Floor
	 

	 	8 Canada Square
	 

	 	London E14 5HQ
	Fax No:

	 	020 7992 4680
	Attention:

	 	Corporate Trust and Loan Agency, Loans Administration
	 
	 	 
	By:
	 	 

155

 

AMENDMENT AND RESTATEMENT AGREEMENT

SIGNATURE
PAGE 1

	 	 	 
	CNV
	 
	 	 
	CASCAL N.V.
	 
	 	 
	Address:

	 	6.1.24, Strawinskylaan 3105
	 

	 	1077 ZX
	 

	 	Amsterdam, The Netherlands
	Fax No:

	 	0031 2044 22384
	Attention:

	 	Chief Financial Officer
	 
	 	 
	By:
	 	/s/ Jonathan Lamb (as attorney for
Cascal N.V.)

	 
	 	 
	The Guarantors
	 
	 	 
	BWS FINANCE LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	/s/ Steven Hollinshead  
	 
	 	 
	CASCAL HOLDINGS LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	/s/ Steven Hollinshead  

 

 

AMENDMENT AND RESTATEMENT AGREEMENT

SIGNATURE PAGE 2

	 	 	 
	CASCAL INVESTMENTS LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	/s/ Steven Hollinshead  
	 
	 	 
	CASCAL SERVICES LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	/s/ Steven Hollinshead  
	 
	 	 
	The Additional Borrower
	 
	 	 
	CASCAL HOLDINGS LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	/s/ Steven Hollinshead  

 

 

AMENDMENT AND RESTATEMENT AGREEMENT

SIGNATURE
PAGE 3

	 	 	 
	CICL
	 
	 	 
	CASCAL INVESTMENTS (CHINA) LIMITED
	 
	 	 
	Address:

	 	Biwater House
	 

	 	Station Approach
	 

	 	Dorking, Surrey RH4 1TZ
	Fax No:

	 	+44 (0)1306 746031
	Attention:

	 	Company Secretary
	 
	 	 
	By:
	 	/s/ Steven Hollinshead  

 

 

AMENDMENT AND RESTATEMENT AGREEMENT

SIGNATURE
PAGE 4

	 	 	 
	The Arranger
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	HBEU Thames Valley Corporate Banking
	 

	 	Centre Apex Plaza
	 

	 	Reading
	 

	 	RG1 1AX
	Fax No:

	 	+44 (0)8455 879489
	Attention:

	 	Sue Barnes, Corporate Banking Manager
	 
	 	 
	By:
	 	/s/ Susan Barnes
	 
	 	 
	The Original Lender
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	HBEU Thames Valley Corporate Banking
	 

	 	Centre Apex Plaza
	 

	 	Reading
	 

	 	RG1 1AX
	Fax No:

	 	+44 (0)8455 879489
	Attention:

	 	Sue Barnes, Corporate Banking Manager
	 
	 	 
	By:
	 	/s/ Susan Barnes

 

 

AMENDMENT AND RESTATEMENT AGREEMENT

SIGNATURE
PAGE 5

	 	 	 
	The Agent
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	24th Floor
	 

	 	8 Canada Square
	 

	 	London E14 5HQ
	Fax No:

	 	020 7992 4680
	Attention:

	 	Corporate Trust and Loan Agency, Loans Administration
	 
	 	 
	By:
	 	/s/ Jeremy Causton
	 
	 	 
	The Security Agent
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	24th Floor
	 

	 	8 Canada Square
	 

	 	London E14 5HQ
	Fax No:

	 	020 7992 4680
	Attention:

	 	Corporate Trust and Loan Agency, Loans Administration
	 
	 	 
	By:
	 	/s/ Jeremy Causton
	 
	 	 
	The Issuing Bank
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	24th Floor
	 

	 	8 Canada Square
	 

	 	London E14 5HQ
	Fax No:

	 	020 7992 4680
	Attention:

	 	Corporate Trust and Loan Agency, Loans Administration
	 
	 	 
	By:
	 	/s/ Susan BarnesEX-4.1.1

Exhibit 4.1.1

 

NATIONAL CITY CREDIT CARD MASTER NOTE TRUST

as Issuer

and

THE BANK OF NEW YORK MELLON

as Indenture Trustee

AMENDED AND RESTATED SERIES 2005-1 INDENTURE SUPPLEMENT

dated as of July 1, 2009

to

INDENTURE

dated as of August 23, 2005

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I

	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Governing Law
	 	 	12	 
	Section 1.03. Counterparts
	 	 	12	 
	Section 1.04. Ratification of Indenture
	 	 	13	 
	 
	 	 	 	 
	ARTICLE II

	THE NOTES

	 
	 	 	 	 
	Section 2.01. Creation and Designation
	 	 	14	 
	Section 2.02. Form of Delivery of the Class A Notes, the Class B Notes and the Class C Notes; Depository; Denominations
	 	 	14	 
	Section 2.03. Form of Delivery of the Class D Notes; Denominations
	 	 	14	 
	Section 2.04. Delivery and Payment for the Series 2005-1 Notes
	 	 	15	 
	Section 2.05. Restrictions on Transfer of the Class D Notes
	 	 	15	 
	 
	 	 	 	 
	ARTICLE III

	ALLOCATIONS, DEPOSITS AND PAYMENTS

	 
	 	 	 	 
	Section 3.01. Allocations of Series 2005-1 Finance Charge Amounts
	 	 	16	 
	Section 3.02. Determination of Monthly Interest
	 	 	17	 
	Section 3.03. Amounts to be Treated as Series 2005-1 Finance Charge Amounts; Other Deposits to the Collection Account
	 	 	18	 
	Section 3.04. Allocations of Reductions from Investor Charge-Offs to the Nominal Liquidation Amount due to Investor Charge-Offs
	 	 	19	 
	Section 3.05. Allocations of Reimbursements of Nominal Liquidation Amount Deficits
	 	 	19	 
	Section 3.06. Application of Series 2005-1 Available Principal Amounts
	 	 	20	 
	Section 3.07. Computation of Reductions to the Nominal Liquidation Amount from Reallocations of Series 2005-1 Available Principal Amounts
	 	 	21	 
	Section 3.08. Targeted Deposits of Series 2005-1 Available Principal Amounts to the Principal Funding Account
	 	 	22	 
	Section 3.09. Amounts to be Treated as Series 2005-1 Available Principal Amounts; Other Deposits to the Principal Funding Account
	 	 	23	 
	Section 3.10. Withdrawals from Principal Funding Account
	 	 	24	 
	Section 3.11. Calculation of Nominal Liquidation Amount
	 	 	24	 

-i- 

 

	 	 	 	 	 
	 	 	Page
	Section 3.12. Sale of Receivables
	 	 	26	 
	Section 3.13. Targeted Deposits to the Spread Account
	 	 	27	 
	Section 3.14. Withdrawals from the Spread Account
	 	 	28	 
	Section 3.15. Targeted Deposits to the Reserve Account
	 	 	28	 
	Section 3.16. Withdrawals from the Reserve Account
	 	 	28	 
	Section 3.17. Excess Finance Charge Amounts Sharing
	 	 	29	 
	Section 3.18. Excess Principal Amount Sharing
	 	 	29	 
	Section 3.19. Payments of Interest and Principal
	 	 	29	 
	Section 3.20. Calculation Agent; Determination of LIBOR
	 	 	30	 
	 
	 	 	 	 
	ARTICLE IV

	EARLY REDEMPTION OF NOTES

	 
	 	 	 	 
	Section 4.01. Early Redemption Events
	 	 	32	 
	 
	 	 	 	 
	ARTICLE V

	ACCOUNTS AND INVESTMENTS

	 
	 	 	 	 
	Section 5.01. Accounts
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VI

	REPRESENTATIONS AND WARRANTIES

	 
	 	 	 	 
	Section 6.01. Issuer’s Representations and Warranties
	 	 	34	 

-ii- 

 

EXHIBITS

	 	 	 
	EXHIBIT A-1

	 	[FORM OF] CLASS A NOTE
	 
	 	 
	EXHIBIT A-2

	 	[FORM OF] CLASS B NOTE
	 
	 	 
	EXHIBIT A-3

	 	[FORM OF] CLASS C NOTE
	 
	 	 
	EXHIBIT A-4

	 	[FORM OF] CLASS D NOTE
	 
	 	 
	EXHIBIT B

	 	[FORM OF] SERIES 2005-1 SCHEDULE TO PAYMENT INSTRUCTIONS
	 
	 	 
	EXHIBIT C

	 	[FORM OF] SERIES 2005-1 SCHEDULE TO MONTHLY NOTEHOLDERS’
STATEMENT

-iii- 

 

          This AMENDED AND RESTATED SERIES 2005-1 INDENTURE SUPPLEMENT (this “Indenture
Supplement”), by and between NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, a statutory trust
created under the laws of the State of Delaware (the “Issuer”), having its principal office
at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, and THE BANK OF NEW
YORK MELLON (formerly known as The Bank of New York), a New York banking corporation (the
“Indenture Trustee”), is made and entered into as of July 1, 2009.

          WHEREAS, the Indenture Trustee and the Issuer have heretofore executed and delivered a Series
2005-1 Indenture Supplement, dated as of August 23, 2005 (as amended, supplemented or otherwise
modified prior to July 1, 2009, the “Original Indenture Supplement”); and

          WHEREAS, the parties hereto desire to amend and restate in its entirety the Original Indenture
Supplement to provide for the issuance of the Class D Note (as defined below).

          NOW, THEREFORE, in consideration of the promises and the agreements contained herein, the
Original Indenture Supplement is hereby amended and restated in its entirety as follows:

          Pursuant to the Original Indenture Supplement, the Issuer and the Trust shall create a new
series of Notes and shall specify the principal terms thereof.

ARTICLE I

Definitions and Other Provisions of General Application

     Section 1.01. Definitions. For all purposes of this Indenture Supplement, except as
otherwise expressly provided or unless the context otherwise requires:

	 	(1)	 	the terms defined in this Article have the meanings assigned to
them in this Article, and include the plural as well as the singular;
	 
	 	(2)	 	all other terms used herein which are defined in the Indenture
(as defined in this Section 1.01), either directly or by reference
therein, have the meanings assigned to them therein;
	 
	 	(3)	 	all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles and, except as otherwise herein expressly provided, the term
“generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are
generally accepted in the United States of America at the date of such
computation;
	 
	 	(4)	 	all references in this Indenture Supplement to designated
“Articles,” “Sections” and other subdivisions are to the designated Articles,
Sections

1

 

	 	 	 	and other subdivisions of this Indenture Supplement as originally executed.
The words “herein,” “hereof” and “hereunder” and other words of similar
import refer to this Indenture Supplement as a whole and not to any
particular Article, Section or other subdivision;
	 
	 	(5)	 	in the event that any term or provision contained herein shall
conflict with or be inconsistent with any term or provision contained in the
Indenture, the terms and provisions of this Indenture Supplement shall be
controlling;
	 
	 	(6)	 	each capitalized term defined herein shall relate only to the
Series 2005-1 Notes and no other Series of Notes issued by the Issuer; and
	 
	 	(7)	 	“including” and words of similar import will be deemed to be
followed by “without limitation.”

          “Accumulation Commencement Date” means, August 1, 2009; provided,
however, that, if the Accumulation Period Length is less than twelve (12) months, the
Accumulation Commencement Date will be the first Business Day of the month that is the number of
whole months prior to the Scheduled Principal Payment Date at least equal to the Accumulation
Period Length and, as a result, the number of Monthly Periods during the period from the
Accumulation Commencement Date to the Scheduled Principal Payment Date will at least equal the
Accumulation Period Length.

          “Accumulation Period Factor” means, for each Monthly Period, a fraction, the numerator
of which is equal to the sum of the initial Invested Amounts of all outstanding Series (as defined
in the Pooling and Servicing Agreement) of Investor Certificates including the Collateral
Certificate, and the denominator of which is equal to the sum of (a) the Initial Dollar Principal
Amount of the Series 2005-1 Notes, (b) the initial Invested Amounts of all outstanding Series of
Investor Certificates issued by the Master Trust (other than the Collateral Certificate) which are
not expected to be in their revolving periods (as such terms are defined in the Pooling and
Servicing Agreement and any Supplements thereto), (c) the initial Invested Amounts of all
outstanding Series of Investor Certificates issued by the Master Trust (other than the Collateral
Certificate) which are not allocating Shared Principal Collections to other Series of Investor
Certificates issued by the Master Trust and are in their revolving periods (as such terms are
defined in the Pooling and Servicing Agreement and any Supplements thereto), and (d) the Initial
Dollar Principal Amount of any Series of notes (other than the Series 2005-1 Notes) of the Issuer
for which amounts are targeted to be deposited into a principal funding account with respect to
such Monthly Period; provided, however, that this definition may be changed at any
time if the Note Rating Agencies provide prior written confirmation that a Ratings Effect will not
occur with respect to such change.

          “Accumulation Period Length” is defined in Section 3.08(b)(ii).

          “Adjusted Outstanding Dollar Principal Amount” means, at any time, (i) with respect to
the Class A Notes, an amount, not less than zero, equal to the Outstanding Dollar Principal Amount
of the Class A Notes at such time, minus the aggregate amount on deposit in the Principal Funding
Account, (ii) with respect to the Class B Notes, an amount, not less than

2

 

zero, equal to the Outstanding Dollar Principal Amount of the Class B Notes at such time,
minus the excess, if any, of the aggregate amount on deposit in the Principal Funding Account over
the Outstanding Dollar Principal Amount of the Class A Notes at such time, (iii) with respect to
the Class C Notes, an amount, not less than zero, equal to the Outstanding Dollar Principal Amount
of the Class C Notes at such time, minus the excess, if any, of the aggregate amount on deposit in
the Principal Funding Account over the sum of the Outstanding Dollar Principal Amount of the Class
A Notes and the Outstanding Dollar Principal Amount of the Class B Notes at such time, (iv) with
respect to the Class D Notes, an amount, not less than zero, equal to the Outstanding Dollar
Principal Amount of the Class D Notes at such time, minus the excess, if any, of the aggregate
amount on deposit in the Principal Funding Account over the sum of the Outstanding Dollar Principal
Amount of the Class A Notes, the Outstanding Dollar Principal Amount of the Class B Notes and the
Outstanding Dollar Principal Amount of the Class C Notes at such time, and (v) with respect to the
Series 2005-1 Notes, the sum of the Adjusted Outstanding Dollar Principal Amount of the Class A
Notes, the Adjusted Outstanding Dollar Principal Amount of the Class B Notes, the Adjusted
Outstanding Dollar Principal Amount of the Class C Notes and the Adjusted Outstanding Dollar
Principal Amount of the Class D Notes, each at such time.

          “Aggregate Investor Default Amount” is defined in the Series 2005-CC Supplement.

          “Aggregate Series Finance Charge Shortfall” means the sum of the Series Finance Charge
Shortfalls (as such term is defined in each of the related Indenture Supplements) for each Excess
Finance Charge Sharing Series in Excess Finance Charge Sharing Group A.

          “Aggregate Series Principal Amounts Shortfall” means the sum of the Series Principal
Amounts Shortfalls (as such term is defined in each of the related Indenture Supplements) for each
Excess Principal Amounts Sharing Series in Excess Principal Amounts Sharing Group A.

          “Available Spread Account Amount” means, with respect to any Distribution Date, an
amount equal to the lesser of (a) the amount on deposit in the Spread Account (exclusive of Spread
Account Investment Earnings) on such date (before giving effect to any deposit to, or withdrawal
from, the Spread Account made or to be made with respect to such date) and (b) the Required Spread
Account Amount for such Distribution Date.

          “Available Reserve Account Amount” means, with respect to any Distribution Date, the
lesser of (a) the amount on deposit in the Reserve Account on such date (after taking into account
any interest and earnings retained in the Reserve Account pursuant to Section 403 of the
Indenture on such date, but before giving effect to any deposit made or to be made pursuant to
Section 3.01(g) to the Reserve Account on such date) and (b) the Required Reserve Account
Amount.

          “Base Rate” means, with respect to any Monthly Period, the annualized percentage
equivalent of a fraction, the numerator of which is equal to the sum of the Class A Monthly
Interest, the Class B Monthly Interest, the Class C Monthly Interest and the Series 2005-1 Monthly
Servicing Fee with respect to the related Distribution Date and the denominator

3

 

of which is the Nominal Liquidation Amount for Series 2005-1 as of the last day of the
preceding Monthly Period.

          “Class A Additional Interest” shall have the meaning specified in Section
3.02(a).

          “Class A Interest Shortfall” shall have the meaning specified in Section
3.02(a).

          “Class A Monthly Interest” shall have the meaning specified in Section
3.02(a).

          “Class A Note” means any one of the Notes executed by the Issuer and authenticated by
or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-1.

          “Class A Note Rate” means, with respect to the Class A Notes, for the period from and
including the Closing Date through but excluding September 15, 2005, and for the period from and
including September 15, 2005 through but excluding October 17, 2005, and for each Interest Period
thereafter, a per annum rate of 0.05% above LIBOR determined on the related LIBOR Determination
Date, calculated on the basis of actual days elapsed and a 360-day year.

          “Class A Noteholder” means the Person in whose name a Class A Note is registered in
the Note Register.

          “Class B Additional Interest” shall have the meaning specified in Section
3.02(b).

          “Class B Interest Shortfall” shall have the meaning specified in Section
3.02(b).

          “Class B Monthly Interest” shall have the meaning specified in Section
3.02(b).

          “Class B Note” means any one of the Notes executed by the Issuer and authenticated by
or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-2.

          “Class B Note Rate” means, with respect to the Class B Notes, for the period from and
including the Closing Date through but excluding September 15, 2005, and for the period from and
including September 15, 2005 through but excluding October 17, 2005, and for each Interest Period
thereafter, a per annum rate of 0.19% above LIBOR determined on the related LIBOR Determination
Date, calculated on the basis of actual days elapsed and a 360-day year.

          “Class B Noteholder” means the Person in whose name a Class B Note is registered in
the Note Register.

          “Class C Additional Interest” shall have the meaning specified in Section 3.02(c).

          “Class C Interest Shortfall” shall have the meaning specified in Section
3.02(c).

          “Class C Monthly Interest” shall have the meaning specified in Section
3.02(c).

          “Class C Note” means any one of the Notes executed by the Issuer and authenticated by
or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-3.

4

 

          “Class C Note Rate” means, with respect to the Class C Notes, for the period from and
including the Closing Date through but excluding September 15, 2005, and for the period from and
including September 15, 2005 through but excluding October 17, 2005, and for each Interest Period
thereafter, a per annum rate of 0.34% above LIBOR determined on the related LIBOR Determination
Date, calculated on the basis of actual days elapsed and a 360-day year.

          “Class C Noteholder” means the Person in whose name a Class C Note is registered in
the Note Register.

          “Class D Note” means any one of the Notes executed by the Issuer and authenticated by
or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-4.

          “Class D Note Purchase Agreement” shall mean the Class D Note Purchase Agreement dated
as of July 1, 2009, by and among the Issuer, National City Bank, as originator and as beneficiary
of the Issuer, and the Class D Noteholder, and all amendments and supplements thereto.

          “Class D Note Rate” means, with respect to the Class D Notes, for the period from and
including the Closing Date through but excluding July 15, 2009, and for each Interest Period
thereafter, a per annum rate of 0.00%, calculated on the basis of twelve 30-day months and a
360-day year.

          “Class D Noteholder” means the Person in whose name a Class D Note is registered in
the Note Register.

          “Closing Date” means (i) for the Class A Notes, the Class B Notes and the Class C
Notes, August 23, 2005 and (ii) for the Class D Notes, July 1, 2009.

          “Controlled Accumulation Amount” means, for any Transfer Date, $52,219,333;
provided, however, that if the Accumulation Period Length with respect to such
Series is determined to be less than twelve (12) months pursuant to Section 3.08(b)(ii),
the Controlled Accumulation Amount for any Distribution Date will be equal to (i) the product of
(x) the Initial Dollar Principal Amount of the Series 2005-1 Notes and (y) the Accumulation Period
Factor for such Monthly Period divided by (ii) the Required Accumulation Factor Number.

          “Covered Amount” means an amount, determined as of each Distribution Date with respect
to any Interest Period, equal to the sum of (a) the product of (i) a fraction, the numerator of
which is the actual number of days in such Interest Period and the denominator of which is 360,
times (ii) the Class A Note Rate in effect with respect to such Interest Period, times (iii) the
aggregate amount on deposit in the Principal Funding Account with respect to the Outstanding Dollar
Principal Amount of Class A Notes as of the Record Date preceding such Distribution Date, plus (b)
the product of (i) a fraction, the numerator of which is the actual number of days in such Interest
Period and the denominator of which is 360, times (ii) the Class B Note Rate in effect with respect
to such Interest Period, times (iii) the aggregate amount on deposit in the Principal Funding
Account with respect to the Outstanding Dollar Principal Amount of Class B Notes as of the Record
Date preceding such Distribution Date, plus (c) the product of (i) a fraction, the numerator of
which is the actual number of days in such Interest Period and the denominator of which is 360,
times (ii) the Class C Note Rate in effect with

5

 

respect to such Interest Period, times (iii) the aggregate amount on deposit in the Principal
Funding Account with respect to the Outstanding Dollar Principal Amount of Class C Notes as of the
Record Date preceding such Distribution Date, plus (d) the product of (i) a fraction, the numerator
of which is 30 and the denominator of which is 360, times (ii) the Class D Note Rate in effect with
respect to such Interest Period, times (iii) the aggregate amount on deposit in the Principal
Funding Account with respect to the Outstanding Dollar Principal Amount of Class D Notes as of the
Record Date preceding such Distribution Date.

          “Excess Finance Charge Percentage” means, with respect to any Distribution Date, an
amount equal to the Portfolio Yield for the preceding Monthly Period minus the Base Rate for such
Monthly Period.

          “Finance Charge Receivables” is defined in the Pooling and Servicing Agreement.

          “Indenture” means the Indenture, dated as of August 23, 2005 (as the same may be
supplemented, modified or amended from time to time), between the Issuer and the Indenture Trustee.

          “Initial Dollar Principal Amount” means (i) with respect to the Series 2005-1 Notes,
$626,632,000, (ii) with respect to the Class A Notes, $525,000,000, (iii) with respect to the Class
B Notes, $36,000,000, (iv) with respect to the Class C Notes, $39,000,000, and (v) with respect to
the Class D Notes, $26,632,000.

          “Interest Payment Date” means the fifteenth day of each month commencing October 17,
2005, or if such fifteenth day is not a Business Day, the next succeeding Business Day.

          “Interest Period” means, with respect to any Interest Payment Date, the period from
and including the previous Interest Payment Date (or in the case of the initial Interest Payment
Date, from and including the Issuance Date) through the day preceding such Interest Payment Date.

          “Investor Charge-Offs” means, with respect to any Distribution Date, the aggregate
amount, if any, by which the Series 2005-1 Investor Default Amount, if any, for the preceding
Monthly Period exceeds the Series 2005-1 Finance Charge Amounts for such Distribution Date
available after giving effect to clause (a) and (b) of Section 3.01.

          “Issuance Date” means (i) for the Class A Notes, the Class B Notes and the Class C
Notes, May 28, 2008 and (ii) for the Class D Notes, July 1, 2009.

          “Legal Maturity Date” means August 15, 2012.

          “LIBOR” means, for any Interest Period, the London interbank offered rate for
one-month United States dollar deposits determined by the Indenture Trustee for each Interest
Period in accordance with the provisions of Section 3.20.

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          “LIBOR Determination Date” means (i) August 19, 2005 for the period from and including
the Closing Date through but excluding October 17, 2005, and (ii) thereafter, the second London
Business Day prior to the commencement of each Interest Period.

          “London Business Day” means any Business Day on which dealings in deposits in United
States dollars are transacted in the London interbank market.

          “Monthly Interest” means, with respect to any Distribution Date, the Class A Monthly
Interest, the Class B Monthly Interest and the Class C Monthly Interest for such Distribution Date.

          “Nominal Liquidation Amount” means, with respect to any Class of Series 2005-1 Notes,
the amount calculated pursuant to Section 3.11 of this Indenture Supplement. The Nominal
Liquidation Amount for the Series 2005-1 will be the sum of the Nominal Liquidation Amounts of all
of the Classes of Notes of the Series 2005-1.

          “Nominal Liquidation Amount Deficit” means, with respect to any Class of Series 2005-1
Notes, the excess of the Adjusted Outstanding Dollar Principal Amount of that Class over the
Nominal Liquidation Amount of that Class.

          “Outstanding Dollar Principal Amount” means, at any time, (i) with respect to any
Class of Series 2005-1 Notes, the Initial Dollar Principal Amount of such Class of Series 2005-1
Notes at such time, less the amount of any withdrawals from the Principal Funding Account for the
Series 2005-1 Notes for payment of principal to the Holders of such Class of Notes and (ii) with
respect to the Series 2005-1 Notes, the sum of the Outstanding Dollar Principal Amount of the Class
A Notes, the Outstanding Dollar Principal Amount of the Class B Notes, the Outstanding Dollar
Principal Amount of the Class C Notes and the Outstanding Dollar Principal Amount of the Class D
Notes, each at such time.

          “Paying Agent” means The Bank of New York Mellon.

          “Portfolio Adjusted Yield” means, with respect to any Transfer Date, the average of
the percentages obtained for each of the three preceding Monthly Periods by subtracting the Base
Rate from the Portfolio Yield for such Monthly Period.

          “Portfolio Yield” means, with respect to any Monthly Period, the annualized percentage
equivalent of a fraction, the numerator of which is (a) the amount of Finance Charge Amounts
allocated to Series 2005-1 pursuant to Section 501 of the Indenture, plus (b) the Principal
Funding Investment Proceeds on the distribution date related to such Monthly Period plus (c) the
amount of the Reserve Draw Amount (up to the Available Reserve Account Amount) plus any amounts of
interest and earnings described in Section 403 of the Indenture, each deposited into the
Collection Account on the Distribution Date relating to such Monthly Period, minus (d) the Series
2005-1 Investor Default Amount for such Monthly Period, and the denominator of which is the
Weighted Average Finance Charge Allocation Amount for Series 2005-1 for such Monthly Period.

          “Principal Funding Account” means the trust account designated as such and established
pursuant to Section 5.01(a).

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          “Principal Funding Account Amount” means, as of any date, the amount on deposit in the
Principal Funding Account on such date.

          “Principal Funding Investment Proceeds” shall mean, with respect to each Distribution
Date, the investment earnings on funds in the Principal Funding Account (net of investment expenses
and losses) for the period from and including the immediately preceding Distribution Date to but
excluding such Distribution Date.

          “Quarterly Excess Finance Charge Percentage” means (a) with respect to the October
2005 Distribution Date, the Excess Finance Charge Percentage for such Payment Date, (b) with
respect to the November 2005 Distribution Date, the percentage equivalent of a fraction, the
numerator of which is the sum of (i) the Excess Finance Charge Percentage for the October 2005
Distribution Date and (ii) the Excess Finance Charge Percentage with respect to the November 2005
Distribution Date and the denominator of which is two, (c) with respect to the December 2005
Distribution Date, the percentage equivalent of a fraction, the numerator of which is the sum of
(i) the Excess Finance Charge Percentage for the October 2005 Distribution Date (ii) the Excess
Finance Charge Percentage with respect to the November 2005 Distribution Date and (iii) the Excess
Finance Charge Percentage with respect to the December 2005 Distribution Date and the denominator
of which is three and (d) with respect to the January 2006 Distribution Date and each Distribution
Date thereafter, the percentage equivalent of a fraction, the numerator of which is the sum of the
Excess Finance Charge Percentages determined with respect to such Distribution Date and the
immediately preceding two Distribution Dates and the denominator of which is three.

          “Receivables Sales Proceeds” means the proceeds of any sale of Receivables pursuant to
Section 3.12. Receivables Sales Proceeds do not constitute Available Principal Amounts.

          “Receivables Sales Proceeds Deposit Amount” means the amount, if any, of Receivables
Sales Proceeds on deposit in the Principal Funding Account.

          “Reference Banks” means four major banks in the London interbank market selected by
the Beneficiary.

          “Required Accumulation Factor Number” means a number equal to a fraction, rounded
upwards to the nearest whole number, the numerator of which is one and the denominator of which is
equal to the lowest monthly principal payment rate on the Accounts (as defined in the Pooling and
Servicing Agreement), expressed as a decimal, for the twelve (12) months preceding the date of such
calculation; provided, however, that this definition may be changed at any time if
the Note Rating Agencies provide prior written confirmation that a Ratings Effect with respect to
any Outstanding Notes will not occur with respect to such change.

          “Required Reserve Account Amount” means, with respect to any Distribution Date on or
after the Reserve Account Funding Date, an amount equal to (a) 0.50% of the aggregate Outstanding
Dollar Principal Amount of the Notes or (b) any other amount designated by the Issuer; provided,
however, that if such designation is of a lesser amount, the Issuer shall (i) provide the Servicer
and the Indenture Trustee with evidence that such designation will not

8

 

cause a Ratings Effect and (ii) deliver to the Indenture Trustee a certificate of an
authorized officer to the effect that, based on the facts known to such officer at such time, in
the reasonable belief of the Issuer, such designation will not cause an Early Redemption Event or
an event that, after the giving of notice or the lapse of time, would cause an Early Redemption
Event to occur with respect to Series 2005-1.

          “Required Spread Account Amount” means, for each Distribution Date, the product of
(i) the Spread Account Percentage in effect for such date and (ii) the Initial Dollar Principal
Amount of the Series 2005-1 Notes; provided that if an Early Redemption Event or any Event
of Default with respect to Series 2005-1 shall occur and be continuing, then the Required Spread
Account Amount shall equal the Outstanding Dollar Principal Amount (after taking into account any
payments to be made on a related Distribution Date) of the Class C Notes; provided
further, in no event will the Required Spread Account Amount exceed the Outstanding Dollar
Principal Amount (after taking into account any payments to be made on the related Distribution
Date) of the Class C Notes.

          “Reserve Account” means the trust account designated as such and established pursuant
to Section 5.01(a).

          “Reserve Account Earnings” means, with respect to each Distribution Date, the
investment earnings on funds in the Reserve Account (net of investment expenses and losses) for the
period from and including the immediately preceding Distribution Date to but excluding such
Distribution Date.

          “Reserve Account Funding Date” means the Distribution Date which occurs not later than
the earliest of (a) the Distribution Date with respect to the Monthly Period which commences 3
months prior to the Accumulation Commencement Date; (b) the first Distribution Date for which the
Portfolio Adjusted Yield is less than 2.0%, but in such event the Reserve Account Funding Date
shall not be required to occur earlier than the Distribution Date with respect to the Monthly
Period which commences twelve (12) months prior to the Accumulation Commencement Date; (c) the
first Distribution Date for which the Portfolio Adjusted Yield is less than 3.0%, but in such event
the Reserve Account Funding Date shall not be required to occur earlier than the Distribution Date
with respect to the Monthly Period which commences six (6) months prior to the Accumulation
Commencement Date; and (d) the first Distribution Date for which the Portfolio Adjusted Yield is
less than 4.0%, but in such event the Reserve Account Funding Date shall not be required to occur
earlier than the Distribution Date with respect to the Monthly Period which commences four (4)
months prior to the Accumulation Commencement Date.

          “Reserve Draw Amount” means, with respect to each Distribution Date following any
Monthly Period during which amounts targeted to be deposited into the Principal Funding Account
pursuant to Section 3.08 for any prior Monthly Period remain on deposit in the Principal
Funding Account or the first Distribution Date after an Early Redemption Event or an Event of
Default and acceleration occurs, the amount, if any, by which the Principal Funding Investment
Proceeds for such Distribution Date are less than the Covered Amount determined as of such
Distribution Date.

9

 

          “Reuters Screen LIBOR01 Page” means the display page currently so designated on the
Reuters Monitor Money Rates (or such other page as may replace that page on that service, or such
other service as may be nominated as the information vendor, for the purpose of displaying
comparable rates or prices).

          “Scheduled Principal Payment Date” means the August 2010 Distribution Date.

          “Series 2005-1 Available Principal Amounts” means the sum of (a) Available Principal
Amounts allocated to the Series 2005-1 pursuant to Section 502 of the Indenture, (b) any
amounts to be treated as Series 2005-1 Available Principal Amounts pursuant to
Section 3.09(a) and (c) any Shared Excess Available Principal Amounts allocable to Series
2005-1 pursuant to Section 3.18.

          “Series 2005-1 Finance Charge Amounts” means, with respect to any Distribution Date,
the sum of (a) Finance Charge Amounts allocated to the Series 2005-1 pursuant to Section
501 of the Indenture and (b) any amounts to be treated as Series 2005-1 Finance Charge Amounts
pursuant to Sections 3.03(a) and 3.17(a).

          “Series 2005-1 Investor Default Amount” means, with respect to any Monthly Period, the
sum, for each day during such Monthly Period, of the product of the Investor Default Amounts (as
such term is defined in the Series 2005-CC Supplement) with respect to each such day and a fraction
the numerator of which is the Finance Charge Allocation Amount for Series 2005-1 for such day and
the denominator of which is the Finance Charge Allocation Amount for all series of Notes for such
day.

          “Series 2005-1 Servicer Interchange” means, with respect to any Monthly Period, an
amount equal to the product of (a) the Servicer Interchange (as such term is defined in the Series
2005-CC Supplement) with respect to such Monthly Period and (b) a fraction the numerator of which
is the Weighted Average Finance Charge Allocation Amount for Series 2005-1 for such Monthly Period
and the denominator of which is the Weighted Average Finance Charge Allocation Amount for all
series of Notes for such Monthly Period.

          “Series 2005-1 Servicing Fee” means, with respect to any Monthly Period, the pro rata
portion of the Monthly Servicing Fee (as such term is defined in the Series 2005-CC Supplement)
allocable Series 2005-1 based on the Weighted Average Finance Charge Allocation Percentage for
Series 2005-1 for such Monthly Period.

          “Series 2005-1 Termination Date” means the earliest to occur of (a) the Principal
Payment Date on which the Outstanding Dollar Principal Amount of the Series 2005-1 Notes is paid in
full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and
satisfied pursuant to Article VI thereof.

          “Series Finance Charge Amounts Shortfall” means, with respect to any Distribution Date
with respect to the Series 2005-1, the excess, if any, of (a) the aggregate amount targeted to be
paid or applied pursuant to Sections 3.01(a) through (f) for any Distribution Date
over (b) the Series 2005-1 Finance Charge Amounts (excluding any amounts to be treated as Series
2005-1 Finance Charge Amounts pursuant to Section 3.17(a)) for such Distribution Date.

10

 

          “Series Finance Charge Collections Shortfall” means, with respect to any Distribution
Date with respect to the Series 2005-1, the excess, if any, of (a) the aggregate amount targeted to
be paid or applied pursuant to Sections 3.01(a) through (i) for any Distribution
Date over (b) the Series 2005-1 Finance Charge Amounts (including any amounts to be treated as
Series 2005-1 Finance Charge Amounts pursuant to Section 3.17(a)) for such Distribution
Date.

          “Series Principal Amounts Shortfall” means, with respect to any Distribution Date with
respect to Series 2005-1, the excess, if any, of (a) the aggregate amount targeted to be paid or
applied pursuant to Sections 3.06(a) through (e) for any Distribution Date over
(b) the Series 2005-1 Available Principal Amounts (excluding any amounts to be treated as Series
2005-1 Available Principal Amounts pursuant to Section 3.18(a)) for such Distribution Date.

          “Series Principal Collections Shortfall” means, with respect to any Distribution Date
with respect to Series 2005-1, the excess, if any, of (a) the aggregate amount targeted to be paid
or applied pursuant to Sections 3.06(a) through (e) for any Distribution Date over
(b) the Series 2005-1 Available Principal Amounts (including any amounts to be treated as Series
2005-1 Available Principal Amounts pursuant to Section 3.18(a)) for such Distribution Date.

          “Shared Excess Available Principal Amounts” means, with respect to any Distribution
Date, (a) with respect to Series 2005-1, the amount of Series 2005-1 Available Principal Amounts
for such Distribution Date available after application in accordance with Sections 3.06(a)
through (e) and (b) with respect to any other Series of Notes, the amounts allocated to
such other Series of Notes which the applicable Indenture Supplements for such Series specify are
to be treated as “Shared Excess Available Principal Amounts.”

          “Shared Excess Finance Charge Amounts” means, with respect to any Distribution Date,
(a) with respect to Series 2005-1, the amount of Series 2005-1 Finance Charge Amounts for such
Distribution Date available after application in accordance with Sections 3.01(a) through
(i) and (b) with respect to any other Series of Notes identified as an Excess Finance
Charge Sharing Series in Excess Finance Charge Sharing Group A, the amounts allocated to such other
Series of Notes which the applicable Indenture Supplements for such series specify are to be
treated as “Shared Excess Finance Charge Amounts.”

          “Spread Account” means the trust account designated as such and established pursuant
to Section 5.01(a).

          “Spread Account Deficiency” means the excess, if any, of the Required Spread Account
Amount over the Available Spread Account Amount.

          “Spread Account Investment Earnings” means, with respect to any Distribution Date, all
interest and earnings on Eligible Investments included in the Spread Account (net of losses and
investment expenses) during the period commencing on and including the Distribution Date
immediately preceding such Distribution Date and ending on but excluding such Distribution Date.

          “Spread Account Percentage” means (i) 0.0% if the Quarterly Excess Finance Charge
Percentage on such Payment Date is greater than or equal to 4.75%, (ii) 1.25% if the

11

 

Quarterly Excess Finance Charge Percentage on such Payment Date is less than 4.75% and greater
than or equal to 4.50%, (iii) 1.75% if the Quarterly Excess Finance Charge Percentage on such
Payment Date is less than 4.50% and greater than or equal to 4.00%, (iv) 2.75% if the Quarterly
Excess Finance Charge Percentage on such Payment Date is less than 4.00% and greater than or equal
to 3.50%, (v) 4.00% if the Quarterly Excess Finance Charge Percentage on such Payment Date is less
than 3.50% and greater than or equal to 3.00%, (vi) 5.00% if the Quarterly Excess Finance Charge
Percentage on such Payment Date is less than 3.00% and greater than or equal to 2.00% and (vii)
6.00% if the Quarterly Excess Finance Charge Percentage on such Payment Date is less than 2.00%;
provided, however, that after the Spread Account Percentage has been increased to a
percentage above 0.00% pursuant to any of clauses (ii) through (vii) above, the Spread Account
Percentage shall remain at that percentage until (a) further increased to a higher required
percentage specified in clauses (iii) through (vii) above or (b) the Distribution Date on which the
Quarterly Excess Finance Charge Percentage has increased to a level above that for the then current
Spread Account Percentage, in which case the Spread Account Percentage shall be decreased to the
appropriate percentage in clauses (i) through (vi) of the definition thereof; provided
further, however, that no such decrease in the Spread Account Percentage shall be
made until the Quarterly Excess Finance Charge Percentage has increased to a level above that for
the then current Spread Account Percentage for three (3) consecutive Distribution Dates.
Notwithstanding the foregoing, if an Early Redemption Event with respect to Series 2005-1 has
occurred and is continuing, the Spread Account Percentage shall no longer be subject to reduction.

          “Targeted Interest Deposit Amount” means, with respect to the Series 2005-1 Notes for
any Distribution Date, the aggregate amount due and payable pursuant to Sections 3.01(a),
(b) and (f) for such Distribution Date.

          “Targeted Principal Deposit Amount” means, with respect to the Series 2005-1 Notes for
any Distribution Date, the aggregate amount targeted to be deposited in the Principal Funding
Account pursuant to Section 3.08 for such Distribution Date.

          “Transfer” has the meaning specified in Section 2.05.

          “Weighted Average Finance Charge Allocation Amount” means, with respect to any Monthly
Period for any series of Notes, the sum of the Finance Charge Allocation Amount for such series, as
of the close of business on each day during such Monthly Period divided by the actual number of
days in such period.

     Section 1.02. Governing Law. THIS INDENTURE SUPPLEMENT WILL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT
OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 1.03. Counterparts. This Indenture Supplement may be executed in any number
of counterparts, each of which so executed will be deemed to be an original, but all such
counterparts will together constitute but one and the same instrument.

12

 

     Section 1.04. Ratification of Indenture. As supplemented by this Indenture
Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so
supplemented by this Indenture Supplement shall be read, taken and construed as one and the same
instrument.

[END OF ARTICLE I]

13

 

ARTICLE II

The Notes

     Section 2.01. Creation and Designation.

     (a) The Series created pursuant to the Original Indenture Supplement consists of a series of
Notes issued pursuant to the Indenture and the Original Indenture Supplement known as “National
City Credit Card Master Note Trust, Series 2005-1,” or the “Series 2005-1 Notes.” The Series
2005-1 Notes were issued in three classes, the first of which is known as the “Series 2005-1 Class
A Notes,” the second of which is known as the “Series 2005-1 Class B Notes,” the third of which is
known as the “Series 2005-1 Class C Notes.” In addition, there is hereby created a fourth class of
Notes which shall be known as the “Series 2005-1 Class D Notes,” and together with the Class A
Notes, the Class B Notes and the Class C Notes, the “Series 2005-1 Notes.” The Class D Notes shall
be issued as one definitive note substantially in the form of Exhibit A-4 hereto.

     (b) The Series 2005-1 shall be an Excess Finance Charge Sharing Series in Excess Finance
Charge Sharing Group A and shall not be in any other group. The Series 2005-1 shall not be
subordinated to any other series of Notes.

     (c) Notwithstanding the foregoing, except as expressly provided herein, clauses (a) and (c) of
the definition of “Issuer Tax Opinion” in Section 101 of the Indenture shall not be
applicable to the Class D Notes, and the opinion described in clause (d) of such definition shall
not be required with respect to the Class D Notes.

     Section 2.02. Form of Delivery of the Class A Notes, the Class B Notes and the Class C
Notes; Depository; Denominations.

     (a) The Class A Notes, the Class B Notes and the Class C Notes shall be delivered in the form
of a global Note as provided in Sections 202 and 301(i) of the Indenture,
respectively.

     (b) The Depository for the Class A Notes, the Class B Notes and the Class C Notes shall be The
Depository Trust Company, and the Class A Notes, the Class B Notes and the Class C Notes shall
initially be registered in the name of Cede & Co., its nominee.

     (c) The Class A Notes, the Class B Notes and the Class C Notes will be issued in minimum
denominations of $5,000 and multiples of $1,000 in excess of that amount.

     Section 2.03. Form of Delivery of the Class D Notes; Denominations.

     (a) The Class D Notes shall be delivered in the form of definitive notes issued in the name of
the Class D Noteholder, as provided in Sections 202 and 301(i) of the Indenture,
respectively.

     (b) The Class D Notes shall be issued in the name of and delivered to the Class D Noteholder.

14

 

     (c) The Class D Notes will be issued in minimum denominations of $5,000 and multiples of
$1,000 in excess of that amount.

     Section 2.04. Delivery and Payment for the Series 2005-1 Notes. The Issuer shall
execute and deliver the Series 2005-1 Notes to the Indenture Trustee for authentication, and the
Indenture Trustee shall deliver the Series 2005-1 Notes when authenticated, each in accordance with
Section 303 of the Indenture.

     Section 2.05. Restrictions on Transfer of the Class D Notes. The Class D Noteholder
may not sell, transfer, assign, exchange, participate or otherwise convey or pledge, hypothecate,
rehypothecate or grant a security interest in (each such transaction, a “Transfer”) any
interest in a Class D Note except upon (i) the prior delivery to the Indenture Trustee and the
Transferor of an Issuer Tax Opinion and Master Trust Tax Opinion (each as defined in Section
101 of the Indenture) with respect to such Transfer, (ii) compliance with the registration
provisions of the Securities Act of 1933 and any applicable provisions of any state “Blue Sky” or
securities laws or an available exemption from such registration provisions and (iii) satisfaction
of such other restrictions on transfer contained in Section 4(i) of the Class D Note
Purchase Agreement. Any attempted Transfer failing to comply with such delivery conditions shall
be null and void.

[END OF ARTICLE II]

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ARTICLE III

Allocations, Deposits and Payments

     Section 3.01. Allocations of Series 2005-1 Finance Charge Amounts. On each
Distribution Date, the Indenture Trustee will apply Series 2005-1 Finance Charge Amounts, as
follows:

     (a) first, an amount equal to Class A Monthly Interest for such Distribution Date, plus the
amount of any Class A Monthly Interest previously due but not distributed to Class A Noteholders on
a prior Distribution Date, plus the amount of any Class A Additional Interest for such Distribution
Date and any Class A Additional Interest previously due but not distributed to Class A Noteholders
on a prior Distribution Date, shall be distributed to the Paying Agent for payment to the Class A
Noteholders;

     (b) second, an amount equal to Class B Monthly Interest for such Distribution Date, plus the
amount of any Class B Monthly Interest previously due but not distributed to Class B Noteholders on
a prior Distribution Date, plus the amount of any Class B Additional Interest for such Distribution
Date and any Class B Additional Interest previously due but not distributed to Class B Noteholders
on a prior Distribution Date, shall be distributed to the Paying Agent for payment to the Class B
Noteholders;

     (c) third, an amount equal to the Series 2005-1 Servicing Fee for such Distribution Date, plus
the amount of any Series 2005-1 Servicing Fee previously due but not distributed to the Servicer on
a prior Distribution Date, shall be distributed to the Servicer (unless such amount or any portion
thereof has been netted against deposits to the Collection Account in accordance with Section
4.03 of the Pooling and Servicing Agreement);

     (d) fourth, an amount equal to the Series 2005-1 Investor Default Amount for such Distribution
Date shall be treated as a portion of Series 2005-1 Available Principal Amounts for such
Distribution Date;

     (e) fifth, an amount equal to the aggregate Nominal Liquidation Amount Deficit, if any, for
such Distribution Date shall be treated as a portion of Series 2005-1 Available Principal Amounts
for such Distribution Date;

     (f) sixth, an amount equal to Class C Monthly Interest for such Distribution Date, plus the
amount of any Class C Monthly Interest previously due but not distributed to Class C Noteholders on
a prior Distribution Date, plus the amount of any Class C Additional Interest for such Distribution
Date and any Class C Additional Interest previously due but not distributed to Class C Noteholders
on a prior Distribution Date, shall be distributed to the Paying Agent for payment to the Class C
Noteholders;

     (g) seventh, on each Distribution Date from and after the Reserve Account Funding Date, an
amount up to the excess, if any, of the Required Reserve Account Amount over the Available Reserve
Account Amount shall be deposited into the Reserve Account;

16

 

     (h) eighth, on each Distribution Date, an amount equal to the Spread Account Deficiency shall
be deposited into the Spread Account;

     (i) ninth, if an Event of Default and acceleration of the maturity of the Series 2005-1 Notes
pursuant to Section 7.02 of the Indenture has occurred on or prior to such Distribution
Date, an amount up to the Series 2005-1 Outstanding Dollar Principal Amount on such Distribution
Date minus the amount of Series 2005-1 Available Principal Amounts (not taking into account
amounts available under this clause (i)) and amounts, if any, on deposit in the Principal
Funding Account available to pay principal on the Class A Notes, the Class B Notes, the Class C
Notes, and the Class D Notes on such Distribution Date, shall be treated as a portion of Series
2005-1 Available Principal Amounts for such Distribution Date;

     (j) tenth, an amount, if any, to be treated as Shared Excess Finance Charge Amounts for
application in accordance with Section 506 of the Indenture; and

     (k) eleventh, to be paid to the Servicer and treated as Excess Finance Charge Collections for
application in accordance with Section 4.05 of the Pooling and Servicing Agreement.

     Section 3.02. Determination of Monthly Interest.

     (a) The amount of monthly interest (“Class A Monthly Interest”) distributable from the
Collection Account with respect to the Class A Notes on any Distribution Date shall be an amount
equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in
the related Interest Period and the denominator of which is 360, times (B) the Class A Note Rate
and (ii) the Outstanding Dollar Principal Amount of the Class A Note as of the close of business on
the last day of the preceding Monthly Period.

     On the Determination Date preceding each Distribution Date, the Servicer shall determine the
excess, if any (the “Class A Interest Shortfall”), of (x) the Class A Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such
Class A Monthly Interest on such Distribution Date. If the Class A Interest Shortfall with respect
to any Distribution Date is greater than zero, an additional amount (“Class A Additional
Interest”) equal to the product of (i) (A) a fraction, the numerator of which is the actual
number of days in the related Interest Period and the denominator of which is 360, times (B) the
Class A Note Rate and (ii) such Class A Interest Shortfall (or the portion thereof which has not
been paid to the Class A Noteholders) shall be payable as provided herein with respect to the Class
A Notes on each Distribution Date following such Distribution Date to and including the
Distribution Date on which such Class A Interest Shortfall is paid to the Class A Noteholders.

     (b) The amount of monthly interest (“Class B Monthly Interest”) distributable from the
Collection Account with respect to the Class B Notes on any Distribution Date shall be an amount
equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in
the related Interest Period and the denominator of which is 360, times (B) the Class B Note Rate
and (ii) the Outstanding Dollar Principal Amount of the Class B Notes as of the close of business
on the last day of the preceding Monthly Period.

17

 

     On the Determination Date preceding each Distribution Date, the Servicer shall determine the
excess, if any (the “Class B Interest Shortfall”), of (x) the Class B Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such
Class B Monthly Interest on such Distribution Date. If the Class B Interest Shortfall with respect
to any Distribution Date is greater than zero, an additional amount (“Class B Additional
Interest”) equal to the product of (i) (A) a fraction, the numerator of which is the actual
number of days in the related Interest Period and the denominator of which is 360, times (B) the
Class B Note Rate and (ii) such Class B Interest Shortfall (or the portion thereof which has not
been paid to the Class B Noteholders) shall be payable as provided herein with respect to the Class
B Notes on each Distribution Date following such Distribution Date to and including the
Distribution Date on which such Class B Interest Shortfall is paid to the Class B Noteholders.

     (c) The amount of monthly interest (“Class C Monthly Interest”) distributable from the
Collection Account with respect to the Class C Notes on any Distribution Date shall be an amount
equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in
the related Interest Period and the denominator of which is 360, times (B) the Class C Note Rate
and (ii) the Outstanding Dollar Principal Amount of the Class C Notes as of the close of business
on the last day of the preceding Monthly Period.

     On the Determination Date preceding each Distribution Date, the Servicer shall determine the
excess, if any (the “Class C Interest Shortfall”), of (x) the Class C Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such
Class C Monthly Interest on such Distribution Date. If the Class C Interest Shortfall with respect
to any Distribution Date is greater than zero, an additional amount (“Class C Additional
Interest”) equal to the product of (i) (A) a fraction, the numerator of which is the actual
number of days in the related Interest Period and the denominator of which is 360, times (B) the
Class C Note Rate and (ii) such Class C Interest Shortfall (or the portion thereof which has not
been paid to the Class C Noteholders) shall be payable as provided herein with respect to the Class
C Notes on each Distribution Date following such Distribution Date to and including the
Distribution Date on which such Class C Interest Shortfall is paid to the Class C Noteholders.

     Section 3.03. Amounts to be Treated as Series 2005-1 Finance Charge Amounts; Other
Deposits to the Collection Account. The following deposits and payments will be made on the
following dates:

     (a) Amounts to be Treated as Series 2005-1 Finance Charge Amounts. In addition to
Finance Charge Amounts allocated to the Series 2005-1 pursuant to Section 501 of the
Indenture, the following amounts shall be treated as Series 2005-1 Finance Charge Amounts for
application in accordance with this Article III for any Monthly Period:

     (i) Reserve Draw Amount. The aggregate amount withdrawn from the Reserve
Account pursuant to Section 3.16 will be treated as Series 2005-1 Finance Charge
Amounts for such Monthly Period.

     (ii) Shared Excess Finance Charge Amounts. Any Shared Excess Finance Charge
Amounts allocable to the Series 2005-1 will be treated as Series 2005-1 Finance Charge
Amounts pursuant to Section 3.17.

18

 

     (b) Other Deposits to the Collection Account for Series 2005-1.

     (i) Spread Account. Withdrawals made from the Spread Account pursuant to
Section 3.14(a) will be deposited into the Collection Account for Series 2005-1 on
the Distribution Date.

     (ii) Receivables Sales Proceeds. Receivables Sales Proceeds received by the
Issuer pursuant to Section 3.12(c)(ii) will be deposited into the Collection Account
for Series 2005-1 on the date of receipt by the Issuer.

     Section 3.04. Allocations of Reductions from Investor Charge-Offs to the Nominal
Liquidation Amount due to Investor Charge-Offs.

     (a) On each Distribution Date when there is an Investor Charge-Off with respect to the related
Monthly Period, the amount of such Investor Charge-Off will be allocated on that date to each Class
of Series 2005-1 Notes as set forth in this Section 3.04. The amount of each Investor
Charge-Off will be allocated to each Class of Series 2005-1 Notes to reduce its Nominal Liquidation
Amount. If such allocation (or any portion of it) would reduce the Nominal Liquidation Amount of a
Class of Series 2005-1 Notes below zero, the amount that would cause the Nominal Liquidation Amount
to be reduced below zero will be allocated (subject to the restriction set forth in this sentence)
to other Classes of Series 2005-1 Notes. In no event will the Nominal Liquidation Amount (after
giving effect to this clause (a)) of any Class of Series 2005-1 Notes be reduced below zero.

     (b) On each Distribution Date, the amount of each Investor Charge-Off will be allocated in the
following order of priority:

     (i) first, to the Class D Notes until the Nominal Liquidation Amount of the Class D
Notes has been reduced to zero;

     (ii) second, after the Nominal Liquidation Amount of the Class D Notes has been reduced
to zero, to the Class C Notes until the Nominal Liquidation Amount of the Class C Notes has
been reduced to zero;

     (iii) third, after the Nominal Liquidation Amount of the Class C Notes has been reduced
to zero, to the Class B Notes until the Nominal Liquidation Amount of the Class B Notes has
been reduced to zero; and

     (iv) fourth, after the Nominal Liquidation Amount of the Class B Notes has been reduced
to zero, to the Class A Notes until the Nominal Liquidation Amount of the Class A Notes has
been reduced to zero.

     Section 3.05. Allocations of Reimbursements of Nominal Liquidation Amount Deficits.
If, as of any Distribution Date, there are Series 2005-1 Finance Charge Amounts available pursuant
to Section 3.01(e) to reimburse any Nominal Liquidation Amount Deficits as of such
Distribution Date, such funds will be allocated to each Class of Series 2005-1 Notes as follows:

19

 

     (a) first, to the Class A Notes, but in no event will the Nominal Liquidation Amount of the
Class A Notes be increased above the Adjusted Outstanding Dollar Principal Amount of the Class A
Notes;

     (b) second, to the Class B Notes, but in no event will the Nominal Liquidation Amount of the
Class B Notes be increased above the Adjusted Outstanding Dollar Principal Amount of the Class B
Notes;

     (c) third, to the Class C Notes, but in no event will the Nominal Liquidation Amount of the
Class C Notes be increased above the Adjusted Outstanding Dollar Principal Amount of the Class C
Notes; and

     (d) fourth, to the Class D Notes, but in no event will the Nominal Liquidation Amount of the
Class D Notes be increased above the Adjusted Outstanding Dollar Principal Amount of the Class D
Notes.

     Section 3.06. Application of Series 2005-1 Available Principal Amounts. On each
Distribution Date, the Indenture Trustee will apply Series 2005-1 Available Principal Amounts as
follows:

     (a) first, with respect to each Monthly Period, if after giving effect to deposits to be made
with respect to such Monthly Period pursuant to Section 3.01(a), the Class A Notes have not
received the full amount due and payable pursuant to Section 3.01(a) with respect to that
Monthly Period, then Series 2005-1 Available Principal Amounts in an amount equal to the amount of
such insufficiency (such amount not to exceed the aggregate Nominal Liquidation Amounts of the
Class D Notes, the Class C Notes and the Class B Notes as of such Distribution Date (calculated
after giving effect to Section 3.04 with respect to such Monthly Period)) shall be
distributed to the Paying Agent for payment to the Class A Noteholders;

     (b) second, with respect to each Monthly Period, if after giving effect to deposits to be made
with respect to such Monthly Period pursuant to Section 3.01(b), the Class B Notes have not
received the full amount due and payable pursuant to Section 3.01(b) with respect to that
Monthly Period, then Series 2005-1 Available Principal Amounts in an amount equal to the amount of
such insufficiency (such amount not to exceed the Nominal Liquidation Amount of the Class D Notes
and the Class C Notes as of such Distribution Date (calculated after giving effect to Section
3.04 with respect to such Monthly Period) minus the aggregate amount of Series 2005-1 Available
Principal Amounts reallocated pursuant to clause (a) above) shall be distributed to the Paying
Agent for payment to the Class B Noteholders;

     (c) third, with respect to each Monthly Period, if after giving effect to deposits to be made
with respect to such Monthly Period pursuant to Section 3.01(c), the Servicer has not
received the full amount to be paid pursuant to Section 3.01(c) with respect to that
Monthly Period, then Series 2005-1 Available Principal Amounts in an amount equal to the amount of
such insufficiency (such amount not to exceed the aggregate Nominal Liquidation Amounts of the
Class D Notes, the Class C Notes and the Class B Notes as of such Distribution Date (calculated
after giving effect to any Investor Charge-Offs with respect to such Monthly Period)

20

 

minus the aggregate amount of Series 2005-1 Available Principal Amounts reallocated pursuant
to clauses (a) and (b) above) will be paid to the Servicer;

     (d) fourth, with respect to each Monthly Period, if after giving effect to deposits to be made
with respect to such Monthly Period pursuant to Section 3.01(f), the Class C Notes have not
received the full amount due and payable pursuant to Section 3.01(f) with respect to that
Monthly Period, then Series 2005-1 Available Principal Amounts in an amount equal to the amount of
such insufficiency (such amount not to exceed the Nominal Liquidation Amount of the Class D Notes
as of such Distribution Date (calculated after giving effect to Section 3.04 with respect
to such Monthly Period) minus the aggregate amount of Series 2005-1 Available Principal Amounts
reallocated pursuant to clauses (a), (b) and (c) above) shall be distributed to the Paying Agent
for payment to the Class C Noteholders;

     (e) fifth, to make the targeted deposits to the Principal Funding Account pursuant to
Section 3.08;

     (f) sixth, to be treated as Shared Excess Available Principal Amounts for application in
accordance with Section 505 of the Indenture; and

     (g) seventh, to be paid to the Servicer and treated as Shared Principal Collections for
application in accordance with Section 4.04 of the Pooling and Servicing Agreement.

     Section 3.07. Computation of Reductions to the Nominal Liquidation Amount from
Reallocations of Series 2005-1 Available Principal Amounts.

     (a) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(a) will reduce the Nominal Liquidation Amount of the Class D Notes; provided,
however, that the amount of such reduction shall not exceed the Nominal Liquidation Amount
of the Class D Notes (after giving effect to any reductions pursuant to Section 3.04).

     (b) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(a) which does not reduce the Nominal Liquidation Amount of the Class D Notes pursuant to
clause (a) above will reduce the Nominal Liquidation Amount of the Class C Notes; provided,
however, that the amount of such reduction shall not exceed the Nominal Liquidation Amount
of the Class C Notes (after giving effect to any reductions pursuant to Section 3.04).

     (c) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(a) which does not reduce the Nominal Liquidation Amount of the Class D Notes pursuant to
clause (a) above or the Nominal Liquidation Amount of the Class C Notes pursuant to clause (b)
above will reduce the Nominal Liquidation Amount of the Class B Notes; provided,
however, that the amount of such reduction shall not exceed the Nominal Liquidation Amounts
of the Class B Notes (after giving effect to any reductions pursuant to Section 3.04).

     (d) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(b) will reduce the Nominal Liquidation Amount (determined after giving effect to clause
(a) above) of the Class D Notes; provided, however, that the amount of such
reduction shall not exceed the Nominal Liquidation Amount of the Class D Notes (after giving effect
to clause (a) above and Section 3.04).

21

 

     (e) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(b) which does not reduce the Nominal Liquidation Amount of the Class D Notes pursuant to
clause (d) above will reduce the Nominal Liquidation Amount of the Class C Notes; provided,
however, that the amount of such reduction shall not exceed the Nominal Liquidation Amounts
of the Class C Notes (after giving effect to any reductions pursuant to Section 3.04).

     (f) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(c) will reduce the Nominal Liquidation Amount (determined after giving effect to clauses
(a) and (d) above) of the Class D Notes; provided, however, that the amount of such
reduction shall not exceed the Nominal Liquidation Amount of the Class D Notes (after giving effect
to clauses (a) and (d) above and Section 3.04).

     (g) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(c) which does not reduce the Nominal Liquidation Amount of the Class D Notes pursuant to
clause (f) above will reduce the Nominal Liquidation Amount of the Class C Notes; provided,
however, that the amount of such reduction shall not exceed the Nominal Liquidation Amounts
of the Class C Notes (after giving effect to clauses (b) and (e) above and Section 3.04).

     (h) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(c) which does not reduce the Nominal Liquidation Amount of the Class D Notes pursuant to
clause (f) above or the Nominal Liquidation Amount of the Class C Notes pursuant to clause (g)
above will reduce the Nominal Liquidation Amount of the Class B Notes; provided,
however, that the amount of such reduction shall not exceed the Nominal Liquidation Amounts
of the Class B Notes (after giving effect to clause (c) above and Section 3.04).

     (i) Each reallocation of Series 2005-1 Available Principal Amounts pursuant to Section
3.06(d) will reduce the Nominal Liquidation Amount (determined after giving effect to clauses
(a), (d) and (f) above) of the Class D Notes; provided, however, that the amount of
such reduction shall not exceed the Nominal Liquidation Amount of the Class D Notes (after giving
effect to clauses (a), (d) and (f) above and Section 3.04).

     Section 3.08. Targeted Deposits of Series 2005-1 Available Principal Amounts to the
Principal Funding Account. The amount targeted to be deposited into the Principal Funding
Account with respect to any Monthly Period will be the sum of (i) the amount determined pursuant to
clause (a), (b) or (c) below for such Monthly Period, as applicable, or if more than one such
clause is applicable, the highest amount determined pursuant to any one of such clauses, and
(ii) any deposit targeted pursuant to clause (i) for any prior Monthly Period but for which the
full targeted deposit was not made, but in no case more than the Nominal Liquidation Amount of
Series 2005-1 (computed immediately before giving effect to such deposit but after giving effect to
Sections 3.04 and 3.06 on such date).

     (a) Scheduled Principal Payment Date. With respect to the Monthly Period immediately
preceding the Scheduled Principal Payment Date, the deposit targeted is equal to the Nominal
Liquidation Amount of Series 2005-1 as of the close of business on the last day of the Monthly
Period preceding such Monthly Period (determined after giving effect to Section 3.04 with
respect to such Monthly Period and any applications, payments or deposits on the following
Distribution Date).

22

 

     (b) Accumulation Deposits.

     (i) Subject to Section 3.08(c), with respect to each Monthly Period, beginning
with the Accumulation Commencement Date, the deposit targeted to be made into the Principal
Funding Account will be the Controlled Accumulation Amount.

     (ii) Notwithstanding anything to the contrary in clause (i), on or before the
Distribution Date immediately preceding the first Business Day of the month that is twelve
(12) months prior to the Scheduled Principal Payment Date, and each Determination Date
thereafter until the Accumulation Commencement Date, the Issuer will determine the
“Accumulation Period Length” which will equal the number of whole months such that
the sum of the Accumulation Period Factors for each month during such period will be equal
to or greater than the Required Accumulation Factor Number; provided,
however, that the Accumulation Period Length will not be determined to be less than
one month; provided further, however, that the determination of the
Accumulation Period Length may be changed at any time if the Note Rating Agencies provide
prior written confirmation that a Ratings Effect will not occur with respect to such change.

     (c) Event of Default, Early Redemption Event, Other Optional or Mandatory Redemption.
If the Series 2005-1 Notes have been accelerated during a Monthly Period after the occurrence of an
Event of Default, or if an Early Redemption Event with respect to the Series 2005-1 Notes occurs
during such Monthly Period, or with respect to the Monthly Period immediately preceding any other
date fixed for any other optional or mandatory redemption of the Series 2005-1 Notes, the deposit
targeted with respect to that Monthly Period and each following Monthly Period is equal to Nominal
Liquidation Amount of the Series 2005-1 Notes as of the close of business on the last day of the
preceding Monthly Period (after taking into account any applications, payments or deposits on the
following Distribution Date).

     Section 3.09. Amounts to be Treated as Series 2005-1 Available Principal Amounts; Other
Deposits to the Principal Funding Account. The following deposits and payments will be made on
the following dates:

     (a) Amounts to be Treated as Series 2005-1 Available Principal Amounts. In addition
to Available Principal Amounts allocated to the Series 2005-1 pursuant to Section 502 of
the Indenture, Series 2005-1 Available Principal Amounts will include Series 2005-1 Finance Change
Amounts reallocated to be treated as Series 2005-1 Available Principal Amounts pursuant to
Section 3.01(d), 3.01(e) or 3.01(i) for application with this Article III
for any Monthly Period.

     (b) Spread Account. Withdrawals made from the Spread Account pursuant to
Section 3.14(b) will be deposited into the Principal Funding Account on the Distribution
Date.

     (c) Receivables Sale Proceeds. Receivables Sales Proceeds received pursuant to
Section 3.12(c)(i) for the Series 2005-1 Notes will be deposited into the Principal Funding
Account on the date of receipt by the Issuer.

23

 

     Section 3.10. Withdrawals from Principal Funding Account. On each Principal Payment
Date with respect to the Series 2005-1 Notes, the aggregate amount on deposit in the Principal
Funding Account will be withdrawn from the Principal Funding Account and remitted to the Paying
Agent; provided, however, that the aggregate amount remitted to the Paying Agent will not exceed
the Outstanding Dollar Principal Amount of the Series 2005-1 Notes. Payments made by the Paying
Agent on each Principal Payment Date shall be made first to the Class A Noteholders until paid in
full, second to the Class B Noteholders until paid in full, third to the Class C Noteholders until
paid in full and fourth to the Class D Noteholders until paid in full, each in accordance with
Section 3.19.

     Section 3.11. Calculation of Nominal Liquidation Amount.

     (a) On or prior to each Distribution Date, the Issuer shall calculate the Nominal Liquidation
Amount of the Class A Notes which shall be the following amount:

     (i) the Initial Dollar Principal Amount of the Class A Notes, plus

     (ii) the aggregate amount of all reimbursements of the Nominal Liquidation Amount
Deficit for the Class A Notes pursuant to Section 3.01(e) on or prior to such date,
determined as set forth in Section 3.05; minus

     (iii) the aggregate amount of the reduction of the Nominal Liquidation Amount of Class
A Notes resulting from an allocation of Investor Charge-Offs on or prior to such date,
determined as set forth in Section 3.04; minus

     (iv) an amount equal to the lesser of (x) the aggregate amount on deposit in the
Principal Funding Account (after giving effect to any deposits, allocations, reallocations
or withdrawals to be made on such date) and (y) the Outstanding Dollar Principal Amount of
the Class A Notes; minus

     (v) the aggregate amount of principal payments made to the Class A Noteholders on or
prior to such date;

provided, however, that (1) the Nominal Liquidation Amount of the Class A Notes may
never be less than zero, (2) the Nominal Liquidation Amount of the Class A Notes may never be
greater than the Outstanding Dollar Principal Amount of the Class A Notes and (3) the Nominal
Liquidation Amount of the Class A Notes following a sale of Receivables pursuant to Section
3.12 will be zero.

     (b) On or prior to each Distribution Date, the Issuer shall calculate the Nominal Liquidation
Amount of the Class B Notes which shall be the following amount:

     (i) the Initial Dollar Principal Amount of the Class B Notes, plus

     (ii) the aggregate amount of all reimbursements of the Nominal Liquidation Amount
Deficit for the Class B Notes pursuant to Section 3.01(e) on or prior to such date,
determined as set forth in Section 3.05; minus

24

 

     (iii) the amount of the reduction of the Nominal Liquidation Amount of Class B Notes
resulting from any reallocations of Series 2005-1 Available Principal Amounts pursuant to
Section 3.06(a) or (c) on or prior to such date, determined as set forth in
Section 3.07; minus

     (iv) the aggregate amount of the reduction of the Nominal Liquidation Amount of Class B
Notes resulting from an allocation of Investor Charge-Offs on or prior to such date,
determined as set forth in Section 3.04; minus

     (v) an amount equal to the lesser of (x) the aggregate amount on deposit in the
Principal Funding Account (after giving effect to any deposits, allocations, reallocations
or withdrawals to be made on such date) minus the Adjusted Outstanding Dollar Principal
Amount of the Class A Notes and (y) the Outstanding Dollar Principal Amount of the Class B
Notes; minus

     (vi) the aggregate amount of principal payments made to the Class B Noteholders on or
prior to such date;

provided, however, that (1) the Nominal Liquidation Amount of the Class B Notes may
never be less than zero, (2) the Nominal Liquidation Amount of the Class B Notes may never be
greater than the Outstanding Dollar Principal Amount of the Class B Notes and (3) the Nominal
Liquidation Amount of the Class B Notes following a sale of Receivables pursuant to Section
3.12 will be zero.

     (c) On or prior to each Distribution Date, the Issuer shall calculate the Nominal Liquidation
Amount of the Class C Notes which shall be the following amount:

     (i) the Initial Dollar Principal Amount of the Class C Notes, plus

     (ii) the aggregate amount of all reimbursements of the Nominal Liquidation Amount
Deficit for the Class C Notes pursuant to Section 3.01(e) on or prior to such date,
determined as set forth in Section 3.05; minus

     (iii) the amount of the reduction of the Nominal Liquidation Amount of Class C Notes
resulting from any reallocations of Series 2005-1 Available Principal Amounts pursuant to
Section 3.06(a), (b), (c) or (d) on or prior to such date,
determined as set forth in Section 3.07; minus

     (iv) the aggregate amount of the reduction of the Nominal Liquidation Amount of Class C
Notes resulting from an allocation of Investor Charge-Offs on or prior to such date,
determined as set forth in Section 3.04; minus

     (v) an amount equal to the lesser of (x) the aggregate amount on deposit in the
Principal Funding Account (after giving effect to any deposits, allocations, reallocations
or withdrawals to be made on such date) minus the aggregate of the Adjusted Outstanding
Dollar Principal Amounts of the Class A Notes and the Class B Notes and (y) the Outstanding
Dollar Principal Amount of the Class C Notes; minus

25

 

     (vi) the aggregate amount of principal payments made to the Class C Noteholders on or
prior to such date;

provided, however, that (1) the Nominal Liquidation Amount of the Class C Notes may
never be less than zero, (2) the Nominal Liquidation Amount of the Class C Notes may never be
greater than the Outstanding Dollar Principal Amount of the Class C Notes and (3) the Nominal
Liquidation Amount of the Class C Notes following a sale of Receivables pursuant to Section
3.12 will be zero.

     (d) On or prior to each Distribution Date, the Issuer shall calculate the Nominal Liquidation
Amount of the Class D Notes which shall be the following amount:

     (i) the Initial Dollar Principal Amount of the Class D Notes, plus

     (ii) the aggregate amount of all reimbursements of the Nominal Liquidation Amount
Deficit for the Class D Notes pursuant to Section 3.01(e) on or prior to such date,
determined as set forth in Section 3.05; minus

     (iii) the amount of the reduction of the Nominal Liquidation Amount of Class D Notes
resulting from any reallocations of Series 2005-1 Available Principal Amounts pursuant to
Section 3.06(a), (b), (c) or (d) on or prior to such date,
determined as set forth in Section 3.07; minus

     (iv) the aggregate amount of the reduction of the Nominal Liquidation Amount of Class D
Notes resulting from an allocation of Investor Charge-Offs on or prior to such date,
determined as set forth in Section 3.04; minus

     (v) an amount equal to the lesser of (x) the aggregate amount on deposit in the
Principal Funding Account (after giving effect to any deposits, allocations, reallocations
or withdrawals to be made on such date) minus the aggregate of the Adjusted Outstanding
Dollar Principal Amounts of the Class A Notes, the Class B Notes and the Class C Notes and
(y) the Outstanding Dollar Principal Amount of the Class D Notes; minus

     (vi) the aggregate amount of principal payments made to the Class D Noteholders on or
prior to such date;

provided, however, that (1) the Nominal Liquidation Amount of the Class D Notes may
never be less than zero, (2) the Nominal Liquidation Amount of the Class D Notes may never be
greater than the Outstanding Dollar Principal Amount of the Class D Notes and (3) the Nominal
Liquidation Amount of the Class D Notes following a sale of Receivables pursuant to
Section 3.12 will be zero.

     (e) The Nominal Liquidation Amount for Series 2005-1 will be the sum of the Nominal
Liquidation Amounts of the Class A Notes, the Class B Notes, the Class C Notes and the Class D
Notes.

     Section 3.12. Sale of Receivables.

26

 

(a) (i) If the Series 2005-1 Notes have been accelerated pursuant to Section 702 of
the Indenture following an Event of Default, the Indenture Trustee may, and at the direction
of the Majority Holders will, cause the Master Trust to sell Principal Receivables and the
related Finance Charge Receivables (or interests therein) in an amount up to the Nominal
Liquidation Amount of Series 2005-1 plus any accrued, past due and additional interest on
the Series 2005-1 Notes.

     (ii) Such a sale will be permitted only if at least one of the following conditions is
met:

     (A) the Holders of 90% of the aggregate Outstanding Dollar Principal Amount of
Series 2005-1 Notes consent; or

     (B) the net proceeds of such sale (plus amounts on deposit in the applicable
Issuer Accounts) would be sufficient to pay all amounts due on the Series 2005-1
Notes; or

     (C) if the Indenture Trustee determines that the funds to be allocated to the
Series 2005-1 Notes, including (1) Series 2005-1 Finance Charge Amounts and Series
2005-1 Available Principal Amounts and (2) amounts on deposit in the applicable
Issuer Accounts, may not be sufficient on any ongoing basis to make payments on the
Series 2005-1 Notes as such payments would have become due if such obligations had
not been declared due and payable, and 662/3% of the Holders of the Series 2005-1
Notes consent to the sale.

     (b) If the principal of or interest on the Series 2005-1 Notes has not been paid in full on
the Legal Maturity Date (after giving effect to any adjustments, deposits and distributions
otherwise to be made on the Legal Maturity Date), the Issuer will cause the Master Trust to sell
Principal Receivables and the related Finance Charge Receivables (or interests therein) on the
Legal Maturity Date in an amount up to the Nominal Liquidation Amount of the Series 2005-1 Notes
plus any accrued, past due and additional interest on the Series 2005-1 Notes.

     (c) Sales proceeds received pursuant to clause (a) or (b) will be allocated in the following
priority:

     (i) first, to be deposited in the Principal Funding Account, an amount up to the amount
that would be necessary to increase the aggregate amount on deposit in the Principal Funding
Account to the Outstanding Dollar Principal Amount of the Series 2005-1 Notes; and

     (ii) second, to pay any accrued, past due or additional interest on the Series 2005-1
Notes.

     Section 3.13. Targeted Deposits to the Spread Account. The aggregate deposit targeted
to be made to the Spread Account with respect to each Distribution Date is equal to the Spread
Account Deficiency.

27

 

     Section 3.14. Withdrawals from the Spread Account. Withdrawals for the Class C Notes
will be made from the Spread Account as specified below:

     (a) Payments of Interest. If Series 2005-1 Finance Charge Amounts available after
giving effect to Section 3.01(a) through (e) are insufficient to pay the full
amount payable on the Class C Notes pursuant to Section 3.01(f), on the Distribution Date
immediately preceding the date of such payment an amount equal to the amount of the insufficiency
will be withdrawn from the Spread Account, to the extent available, and distributed to the Paying
Agent for payment to Class C Noteholders.

     (b) Payments of Principal. If, on and after the earliest to occur of (i) the date on
which the Series 2005-1 Notes are accelerated pursuant to Section 702 of the Indenture
following an Event of Default with respect to Series 2005-1, (ii) any date on or after the
Scheduled Principal Payment Date on which the Class A Notes and the Class B Notes have been paid in
full and the amount on deposit in the Principal Funding Account available to pay principal of the
Class C Notes plus the aggregate amount on deposit in the Spread Account equals or exceeds the
Outstanding Dollar Principal Amount of the Class C Notes and (iii) the Legal Maturity Date, the
amount on deposit in the Principal Funding Account is insufficient to pay in full the amounts for
which withdrawals are required under Section 3.10, an amount equal to that deficiency in
the Principal Funding Account for the payment of principal of the Class C Notes will be withdrawn
from the Spread Account and deposited into that Principal Funding Account for the Class C Notes on
the Distribution Date before the date of the applicable withdrawal required pursuant to Section
3.10.

     (c) Withdrawal of Excess Amounts. If the aggregate amount on deposit in the Spread
Account exceeds the amount required to be on deposit in the Spread Account, the amount of such
excess will be withdrawn from the Spread Account and will be treated as Series 2005-1 Finance
Charge Amounts and applied in accordance with Sections 3.01(i) through (k).

     Section 3.15. Targeted Deposits to the Reserve Account. The aggregate deposit
targeted to be made to the Reserve Account with respect to each Distribution Date on or after the
Reserve Account Funding Date is equal to the excess, if any, of the Required Reserve Account Amount
then in effect over the Available Reserve Account Amount.

     Section 3.16. Withdrawals from the Reserve Account. Withdrawals for any Class of
Notes will be made from the Reserve Account as specified below:

     (a) Interest. On or prior to each Distribution Date the Issuer will calculate the
Reserve Draw Amount (if any). If there is any Reserve Draw Amount for that Distribution Date, the
Issuer will withdraw such amount from the Reserve Account, to the extent available, for treatment
as Series 2005-1 Finance Charge Amounts for such Monthly Period.

     (b) Withdrawal of Excess Amounts. On the earlier to occur of the date on which the
Series 2005-1 Notes are paid in full and the first Distribution Date occurring on or immediately
following the date on which an Early Redemption Event occurs with respect to Series 2005-1, after
giving effect to any withdrawal from the Reserve Account pursuant to Section 3.16(a) above,
the amount on deposit in the Reserve Account will be withdrawn from the Reserve

28

 

Account and will be treated as Series 2005-1 Finance Charge Amounts and applied in accordance
with Sections 3.01(h) through (k).

     Section 3.17. Excess Finance Charge Amounts Sharing.

     (a) Shared Excess Finance Charge Amounts allocable to the Series 2005-1 on any Distribution
Date shall be treated as Series 2005-1 Finance Charge Amounts for such Distribution Date.

     (b) Shared Excess Finance Charge Amounts allocable to the Series 2005-1 with respect to any
Distribution Date shall mean an amount equal to the Series Finance Charge Amounts Shortfall, if
any, with respect to the Series 2005-1 for such Distribution Date; provided,
however, that if the aggregate amount of Shared Excess Finance Charge Amounts for all
Excess Finance Charge Amounts Sharing Series in Excess Finance Charge Amounts Sharing Group A for
such Distribution Date is less than the Aggregate Series Finance Charge Amounts Shortfall for such
Distribution Date, then Shared Excess Finance Charge Amounts allocable to the Series 2005-1 on such
Distribution Date shall equal the product of (i) Shared Excess Finance Charge Amounts for all
Excess Finance Charge Amounts Sharing Series in Excess Finance Charge Amounts Sharing Group A for
such Distribution Date and (ii) a fraction, the numerator of which is the Series Finance Charge
Amounts Shortfall with respect to the Series 2005-1 for such Distribution Date and the denominator
of which is the Aggregate Series Finance Charge Amounts Shortfall for all Excess Finance Charge
Amounts Sharing Series in Excess Finance Charge Amounts Sharing Group A for such Distribution Date.

     Section 3.18. Excess Principal Amount Sharing.

     (a) Shared Excess Available Principal Amounts allocable to the Series 2005-1 on any
Distribution Date shall be treated as Series 2005-1 Available Principal Amounts for such
Distribution Date.

     (b) Shared Excess Available Principal Amounts allocable to the Series 2005-1 with respect to
any Distribution Date shall mean an amount equal to the Series Principal Amounts Shortfall, if any,
with respect to the Series 2005-1 for such Distribution Date; provided, however,
that if the aggregate amount of Shared Excess Available Principal Amounts for all Excess Principal
Amounts Sharing Series in Excess Principal Amounts Sharing Group A for such Distribution Date is
less than the Aggregate Series Principal Amounts Shortfall for such Distribution Date, then Shared
Excess Available Principal Amounts allocable to Series 2005-1 on such Distribution Date shall equal
the product of (i) Shared Excess Available Principal Amounts for all Excess Principal Amounts
Sharing Series in Excess Principal Amounts Sharing Group A for such Distribution Date and (ii) a
fraction, the numerator of which is the Series Principal Amounts Shortfall with respect to Series
2005-1 for such Distribution Date and the denominator of which is the Aggregate Series Principal
Amounts Shortfall for all Excess Principal Amounts Sharing Series in Excess Principal Amounts
Sharing Group A for such Distribution Date.

     Section 3.19. Payments of Interest and Principal.

          (a) Any installment of interest or principal, if any, payable on any Series

29

 

2005-1 Note which is punctually paid or duly provided for by the Issuer and the Indenture
Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the
Paying Agent to the Person in whose name such Series 2005-1 Note (or one or more Predecessor Notes)
is registered on the Record Date, by wire transfer of immediately available funds to such Person’s
account as has been designated by written instructions received by the Paying Agent from such
Person not later than the close of business on the third Business Day preceding the date of payment
or, if no such account has been so designated, by check mailed first-class, postage prepaid to such
Person’s address as it appears on the Note Register on such Record Date, except that with respect
to Notes registered on the Record Date in the name of the nominee of Cede & Co., payment shall be
made by wire transfer in immediately available funds to the account designated by such nominee.

          (b) The right of the Series 2005-1 Noteholders to receive payments from the Issuer will
terminate on the first Business Day following the Series 2005-1 Termination Date.

     Section 3.20. Calculation Agent; Determination of LIBOR.

          (a) The Issuer hereby agrees that for so long as any Series 2005-1 Notes are Outstanding,
there shall at all times be an agent appointed to calculate LIBOR for each Interest Period (the
“Calculation Agent”). The Issuer hereby initially appoints the Indenture Trustee as the
Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation
Agent may be removed by the Issuer at any time. If the Calculation Agent is unable or unwilling to
act as such or is removed by the Issuer, or if the Calculation Agent fails to determine LIBOR for
an Interest Period, the Issuer shall promptly appoint a replacement Calculation Agent that does not
control or is not controlled by or under common control with the Issuer or its Affiliates. The
Calculation Agent may not resign its duties, and the Issuer may not remove the Calculation Agent,
without a successor having been duly appointed.

          (b) On each LIBOR Determination Date, the Calculation Agent shall determine LIBOR on the basis
of the rate for deposits in United States dollars for a one-month period which appears on Reuters
Screen LIBOR01 Page as of 11:00 a.m., London time, on such date. If such rate does not appear on
Reuters Screen LIBOR01 Page, the rate for that LIBOR Determination Date shall be determined on the
basis of the rates at which deposits in United States dollars are offered by the Reference Banks at
approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market
for a one-month period. The Calculation Agent shall request the principal London office of each of
the Reference Banks to provide a quotation of its rate. If at least two such quotations are
provided, the rate for that LIBOR Determination Date shall be the arithmetic mean of the
quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR
Determination Date will be the arithmetic mean of the rates quoted by four major banks in New York
City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for
loans in United States dollars to leading European banks for a one-month period.

          (c) The Class A Note Rate, the Class B Note Rate, the Class C Note Rate and the Class D Note
Rate applicable to the then current and the immediately preceding Interest Periods may be obtained
by any Noteholder or beneficial owner of any Note by telephoning the Indenture Trustee at its
corporate trust office at (212) 815-3247 or such other telephone number

30

 

as shall be designated by the Indenture Trustee for such purpose by prior written notice by
the Indenture Trustee to each Noteholder from time to time. The Indenture Trustee hereby agrees to
provide such information to each such Noteholder or beneficial owner of any Note.

          (d) On each LIBOR Determination Date, the Calculation Agent shall send to the Indenture
Trustee and the Beneficiary, by facsimile transmission, notification of LIBOR for the following
Interest Period.

[END OF ARTICLE III]

31

 

ARTICLE IV

Early Redemption of Notes

     Section 4.01. Early Redemption Events. In addition to the events identified as Early
Redemption Events in Section 1201 of the Indenture, if the average Portfolio Yield for any
three consecutive Monthly Periods is less than the average Base Rate for such three consecutive
Monthly Periods, an “Early Redemption Event” with respect to the Series 2005-1 Notes will be deemed
to have occurred.

[END OF ARTICLE IV]

32

 

ARTICLE V

Accounts and Investments

     Section 5.01. Accounts.

     (a) On or before the Closing Date, the Indenture Trustee will cause to be established and
maintained three Qualified Accounts denominated as follows: the “Principal Funding
Account,” the “Reserve Account” and the “Spread Account” in the name of the
Indenture Trustee, bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Series 2005-1 Noteholders (or, in the case of the Spread Account, for
the benefit of the Class C Noteholders). The Principal Funding Account, the Reserve Account and
the Spread Account constitute Issuer Accounts and shall be under the sole dominion and control of
the Indenture Trustee for the benefit of the Series 2005-1 Noteholders (or, in the case of the
Spread Account, for the benefit of the Class C Noteholders). If, at any time, any institution
holding the Principal Funding Account, the Reserve Account or the Spread Account ceases to be a
Qualified Institution, the Issuer will within ten (10) Business Days (or such longer period, not to
exceed thirty (30) calendar days, as to which each Note Rating Agency may consent) establish a new
Principal Funding Account, Reserve Account or Spread Account, as the case may be, that is a
Qualified Account and shall transfer any cash and/or investments to such new Principal Funding
Account, Reserve Account or Spread Account, as the case may be. From the date such new Principal
Funding Account, Reserve Account or Spread Account is established, it will be the “Principal
Funding Account,” “Reserve Account” or “Spread Account,” as the case may be. The Principal Funding
Account, the Reserve Account and the Spread Account will receive deposits pursuant to Article
III.

     (b) All payments to be made from time to time by the Indenture Trustee to Noteholders out of
funds in the Principal Funding Account, the Reserve Account or the Spread Account pursuant to this
Indenture Supplement will be made by the Indenture Trustee to the Paying Agent not later than 12:00
noon, New York City time, on the applicable Interest Payment Date or Principal Payment Date but
only to the extent of available funds in the applicable Issuer Account or as otherwise provided in
Article III.

     (c) On each Distribution Date, all interest and earnings (net of losses and investment
expenses) accrued since the preceding Distribution Date on funds on deposit in the Spread Account
will be retained in the Spread Account (to the extent that the sum of the amount on deposit in the
Spread Account with respect to the related Monthly Period is less than the required balance for the
Spread Account for that Monthly Period) and the excess, if any, will be paid to the Issuer.

[END OF ARTICLE V]

33

 

ARTICLE VI

Representations and Warranties

     Section 6.01. Issuer’s Representations and Warranties. The Issuer makes the following
representations and warranties as to the Collateral Certificate on which the Indenture Trustee is
deemed to have relied in acquiring the Collateral Certificate. Such representations and warranties
speak as of the execution and delivery of this Indenture Supplement, but shall survive until the
termination of this Indenture Supplement. Such representations and warranties shall not be waived
by any of the parties to this Indenture Supplement unless the Issuer has obtained written
confirmation from each Note Rating Agency that there will be no Ratings Effect with respect to such
waiver.

          (a) The Indenture creates a valid and continuing security interest (as defined in the New York
UCC) in the Collateral Certificate in favor of the Indenture Trustee, which security interest is
prior to all other liens, and is enforceable as such as against creditors of and purchasers from
the Issuer.

          (b) The Collateral Certificate constitutes either an “account,” a “general intangible,” an
“instrument,” or a “certificated security,” each within the meaning of the Delaware UCC and the New
York UCC.

          (c) At the time of the transfer and assignment of the Collateral Certificate to the Indenture
Trustee pursuant to the Indenture, the Issuer owned and had good and marketable title to the
Collateral Certificate free and clear of any lien, claim or encumbrance of any Person.

          (d) The Issuer has caused, within ten (10) days of the execution of the Indenture, the filing
of all appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the security interest in the Collateral
Certificate granted to the Indenture Trustee pursuant to the Indenture.

          (e) Other than the security interest granted to the Indenture Trustee pursuant to the
Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise
conveyed the Collateral Certificate. The Issuer has not authorized the filing of and is not aware
of any financing statements against the Issuer that include a description of collateral covering
the Collateral Certificate other than any financing statement relating to the security interest
granted to the Indenture Trustee pursuant to the Indenture or any financing statement that has been
terminated. The Issuer is not aware of any judgment or tax lien filings against the Issuer.

          (f) All original executed copies of the Collateral Certificate have been delivered to the
Indenture Trustee.

          (g) At the time of the transfer and assignment of the Collateral Certificate to the Indenture
Trustee pursuant to the Indenture, the Collateral Certificate had no marks or notations indicating
that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture
Trustee.

[END OF ARTICLE VI]

34

 

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture Supplement to be duly
executed, and their respective corporate seals to be hereunto affixed and attested, all as of the
day and year first above written.

	 	 	 	 	 
	 	 	NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, as Issuer
	 
	 	 	 	 
	 	 	By: WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Rachel L. Simpson
	 

	 	 	 	 
	 

	 	 	 	Name: Rachel L. Simpson
	 

	 	 	 	Title: Assistant Vice President
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON, as Indenture Trustee and not in its individual capacity
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael Burack
	 

	 	 	 	 
	 

	 	 	 	Name: Michael Burack
	 

	 	 	 	Title: Assistant Treasurer

 

 

EXHIBIT A-1

FORM OF

CLASS A FLOATING RATE ASSET BACKED NOTE

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) — ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY
TIME INSTITUTE AGAINST THE ISSUER OR THE TRANSFEROR, OR JOIN IN INSTITUTING AGAINST THE ISSUER OR
THE TRANSFEROR, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS,
OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

     THE HOLDER OF THIS CLASS A NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE CLASS A NOTES AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE
FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED
ON, OR MEASURED BY, INCOME.

 A-1-1

 

 

			
	 	 	 
	REGISTERED
	 	up to $525,000,0001/
	 	 	 
	No. R-___
	 	CUSIP NO. ___

NATIONAL CITY CREDIT CARD MASTER NOTE TRUST

CLASS A SERIES 2005-1 FLOATING RATE ASSET BACKED NOTE

     NATIONAL CITY CREDIT CARD MASTER NOTE TRUST (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by a Trust Agreement dated as of July 13,
2005, as amended and restated as of August 23, 2005, and as amended by the First Amendment dated as
of March 20, 2007, for value received, hereby promises to pay to CEDE & CO., or registered assigns,
subject to the following provisions, the principal sum of FIVE HUNDRED TWENTY-FIVE MILLION DOLLARS
on the Series 2005-1 Scheduled Principal Payment Date (which is the August 2010 Distribution Date),
except as otherwise provided below or in the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the August 2012 Payment
Date (the “Legal Maturity Date”). The Issuer will pay interest on the unpaid principal
amount of this Note at the Class A Note Rate on each Interest Payment Date until the principal
amount of this Note is paid in full. Interest on this Note will accrue for each Interest Payment
Date from and including the most recent Interest Payment Date on which interest has been paid to
but excluding such Interest Payment Date or, for the initial Interest Payment Date, from and
including the Issuance Date to but excluding such Interest Payment Date. Interest will be computed
on the basis of a 360-day year and the actual number of days elapsed. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Indenture Trustee, by manual signature, this Note shall not be entitled to any benefit under the
Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

 

			
	1/	 	Denominations of $5,000 and integral multiples
of $1,000 in excess thereof.

 A-1-2

 

 

          IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be duly executed.

	 	 	 	 	 
	 	 	NATIONAL CITY CREDIT CARD MASTER NOTE TRUST,

 as Issuer
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST
COMPANY, not in its individual capacity but solely as
Owner Trustee under the Trust Agreement
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:

Dated: August     , 2005

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes described in the within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON,

as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

Dated: August     , 2005

 

 

[REVERSE OF NOTE]

          This Class A Note is one of a duly authorized issue of Notes of the Issuer, designated as
NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, Series 2005-1 (the “Series 2005-1 Notes”),
issued under an Indenture dated as of August 23, 2005, as amended by the First Amendment dated as
of March 20, 2007 (the “Master Indenture”), between the Issuer and The Bank of New York
Mellon, as indenture trustee (the “Indenture Trustee,” which term includes any successor
Indenture Trustee under the Indenture), as supplemented by the Series 2005-1 Indenture Supplement,
dated as of August 23, 2005 (as amended, supplemented and modified as of the date hereof, the
“2005-1 Indenture Supplement”), and representing the right to receive certain payments from
the Issuer. The term “Indenture,” unless the context otherwise requires, refers to the Master
Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented
or amended, shall have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended. In the event of any conflict or inconsistency between the Indenture and
this Note, the Indenture shall control.

          The Class B Notes, the Class C Notes and the Class D Notes will also be issued under the
Indenture.

          The Noteholder, by its acceptance of this Note, agrees that it will look solely to the
property of the Trust allocated to the payment of this Note for payment hereunder and that the
Indenture Trustee is not liable to the Noteholders for any amount payable under the Note or the
Indenture or, except as expressly provided in the Indenture, subject to any liability under the
Indenture.

          This Note does not purport to summarize the Indenture and reference is made to the Indenture
for the interests, rights and limitations of rights, benefits, obligations and duties evidenced
thereby, and the rights, duties and immunities of the Indenture Trustee.

          The Class A Note Initial Dollar Principal Amount is $525,000,000. The Outstanding Dollar
Principal Amount of the Class A Note on any date of determination will be an amount equal to
(a) the Class A Note Initial Principal Balance, minus (b) the aggregate amount of principal
payments made to the Class A Noteholders on or prior to such date.

          The Scheduled Principal Payment Date is the August 2010 Distribution Date, but principal with
respect to the Class A Notes may be paid earlier or later under certain circumstances described in
the Indenture. As described above, the entire unpaid principal amount of this Note shall be due
and payable on the Legal Maturity Date. Payments of principal of the Notes shall be payable in
accordance with the provisions of the Indenture.

          Subject to the terms and conditions of the Indenture, the Beneficiary on behalf of the Trust,
may, from time to time issue, or direct the Owner Trustee, on behalf of the Trust, to issue one or
more new Series of Notes.

 A-1-5

 

 

          On each Distribution Date, the Paying Agent shall distribute to each Class A Noteholder of
record on the related Record Date (except for the final distribution in respect of this Class A
Note) such Class A Noteholder’s share of the amounts held by the Paying Agent that are allocated
and available on such Distribution Date to pay interest and principal on the Class A Notes pursuant
to the Indenture Supplement. Except as provided in the Indenture with respect to a final
distribution, distributions to Series 2005-1 Noteholders shall be made by (i) check mailed to each
Series 2005-1 Noteholder (at such Noteholder’s address as it appears in the Note Register), except
that with respect to any Series 2005-1 Notes registered in the name of the nominee of a Clearing
Agency, such distribution shall be made in immediately available funds and (ii) without
presentation or surrender of any Series 2005-1 Note or the making of any notation thereon. Final
payment of this Class A Note will be made only upon presentation and surrender of this Class A Note
at the office or agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2005-1 Noteholders in accordance with the Indenture.

          On any day occurring on or after the date on which the outstanding principal balance of the
Series 2005-1 Notes is reduced to 5% or less of the initial outstanding principal balance of the
Series 2005-1 Notes, the Servicer shall have the right, but not the obligation to direct the Trust
to redeem, or cause to be redeemed, the Series 2005-1 Notes, at a redemption price equal to the
Outstanding principal amount of Series 2005-1 plus interest accrued and unpaid or principal
accreted and unpaid the Series 2005-1 Notes to but excluding the date of redemption , the payment
of which subject to the Indenture and the allocations, deposits and payments in the Series 2005-1
Indenture Supplement.

          This Class A Note does not represent an obligation of, or an interest in, National City Bank
or any Affiliate thereof and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency or instrumentality.

          Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time
institute against the Issuer or the Transferor, or join in instituting against the Issuer or the
Transferor, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or
other proceedings under any United States federal or state bankruptcy or similar law.

          Except as otherwise provided in the Indenture Supplement, the Class A Notes are issuable only
in minimum denominations of $5,000 and integral multiples of $1,000. The transfer of this Class A
Note shall be registered in the Note Register upon surrender of this Class A Note for registration
of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a
written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer
Agent and Registrar, duly executed by the Class A Noteholder or such Class A Noteholder’s attorney,
and duly authorized in writing with such signature guaranteed, and thereupon one or more new Class
A Notes in any authorized denominations of like aggregate principal amount will be issued to the
designated transferee or transferees.

          As provided in the Indenture and subject to certain limitations therein set forth, Class A
Notes are exchangeable for new Class A Notes in any authorized denominations and of like aggregate
principal amount, upon surrender of such Notes to be exchanged at the office or

 A-1-6

 

 

agency of the Transfer Agent and Registrar. No service charge may be imposed for any such
exchange but the Issuer or Transfer Agent and Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection therewith.

          The Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, the Transferor
or the Indenture Trustee shall treat the person in whose name this Class A Note is registered as
the owner hereof for all purposes, and neither the Issuer, the Transferor, the Indenture Trustee
nor any agent of the Issuer, the Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

          THIS CLASS A NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 A-1-7

 

 

ASSIGNMENT

Social Security or other identifying number of assignee                                         

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

	 
	

(name and address of assignee)

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
___, attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

	 	 	 
	Dated:                     

	 	                                        1/
	 
	 	 
	 

	 	Signature Guaranteed:
	 
	 	 
	 

	 	                                        

 

			
	1/	 	NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face
of the within Note in every particular, without alteration, enlargement or
any change whatsoever.

 A-1-8

 

 

EXHIBIT A-2

FORM OF

CLASS B FLOATING RATE ASSET BACKED NOTE

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) — ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY
TIME INSTITUTE AGAINST THE ISSUER OR THE TRANSFEROR, OR JOIN IN INSTITUTING AGAINST THE ISSUER OR
THE TRANSFEROR, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS,
OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

     THE HOLDER OF THIS CLASS B NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE CLASS B NOTES AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE
FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED
ON, OR MEASURED BY, INCOME.

 A-2-1

 

 

			
	 	 	 
	REGISTERED
	 	up to $36,000,0001/
	 	 	 
	No. R-___
	 	CUSIP NO. ___

NATIONAL CITY CREDIT CARD MASTER NOTE TRUST

CLASS B SERIES 2005-1 FLOATING RATE ASSET BACKED NOTE

     NATIONAL CITY CREDIT CARD MASTER NOTE TRUST (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by a Trust Agreement dated as of July 13,
2005, as amended and restated as of August 23, 2005, and as amended by the First Amendment dated as
of March 20, 2007, for value received, hereby promises to pay to CEDE & CO., or registered assigns,
subject to the following provisions, the principal sum of THIRTY-SIX MILLION DOLLARS, on the Series
2005-1 Scheduled Principal Payment Date (which is the August 2010 Distribution Date), except as
otherwise provided below or in the Indenture; provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on the August 2012 Payment Date (the
“Legal Maturity Date”). The Issuer will pay interest on the unpaid principal amount of
this Note at the Class B Note Rate on each Distribution Date until the principal amount of this
Note is paid in full. Interest on this Note will accrue for each Interest Payment Date from and
including the most recent Interest Payment Date on which interest has been paid to but excluding
such Interest Payment Date or, for the initial Interest Payment Date, from and including the
Issuance Date to but excluding such Interest Payment Date. Interest will be computed on the basis
of a 360-day year and the actual number of days elapsed. Such principal of and interest on this
Note shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Indenture Trustee, by manual signature, this Note shall not be entitled to any benefit under the
Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

          THIS CLASS B NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A
NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE SUPPLEMENT.

 

			
	1/	 	Denominations of $5,000 and integral multiples
of $1,000 in excess thereof.

 A-2-2

 

 

          IN WITNESS WHEREOF, the Issuer has caused this Class B Note to be duly executed.

	 	 	 	 	 
	 	 	NATIONAL CITY CREDIT CARD MASTER NOTE TRUST,

as Issuer
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST
COMPANY, not in its individual capacity but solely as
Owner Trustee under the Trust Agreement
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:

Dated: August     , 2005

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class B Notes described in the within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON,

as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

Dated: August     , 2005

 

 

[REVERSE OF NOTE]

          This Class B Note is one of a duly authorized issue of Notes of the Issuer, designated as
NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, Series 2005-1 (the “Series 2005-1 Notes”),
issued under an Indenture dated as of August 23, 2005, as amended by the First Amendment dated as
of March 20, 2007 (the “Master Indenture”), between the Issuer and The Bank of New York
Mellon, as indenture trustee (the “Indenture Trustee,” which term includes any successor
Indenture Trustee under the Indenture), as supplemented by the Series 2005-1 Indenture Supplement,
dated as of August 23, 2005 (as amended, supplemented and modified as of the date hereof, the
“Indenture Supplement”), and representing the right to receive certain payments from the
Issuer. The term “Indenture,” unless the context otherwise requires, refers to the Master
Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented
or amended, shall have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended. In the event of any conflict or inconsistency between the Indenture and
this Note, the Indenture shall control.

          The Class A Notes, the Class C Notes and the Class D Notes will also be issued under the
Indenture.

          The Noteholder, by its acceptance of this Note, agrees that it will look solely to the
property of the Trust allocated to the payment of this Note for payment hereunder and that the
Indenture Trustee is not liable to the Noteholders for any amount payable under the Note or the
Indenture or, except as expressly provided in the Indenture, subject to any liability under the
Indenture.

          This Note does not purport to summarize the Indenture and reference is made to the Indenture
for the interests, rights and limitations of rights, benefits, obligations and duties evidenced
thereby, and the rights, duties and immunities of the Indenture Trustee.

          The Class B Note Initial Dollar Principal Amount is $36,000,000. The Outstanding Dollar
Principal Amount of the Class B Note on any date of determination will be an amount equal to
(a) the Class B Note Initial Principal Balance, minus (b) the aggregate amount of principal
payments made to the Class B Noteholders on or prior to such date.

          The Scheduled Principal Payment Date is the August 2010 Distribution Date, but principal with
respect to the Class B Notes may be paid earlier or later under certain circumstances described in
the Indenture. As described above, the entire unpaid principal amount of this Note shall be due
and payable on the Legal Maturity Date. Payments of principal of the Notes shall be payable in
accordance with the provisions of the Indenture.

          Subject to the terms and conditions of the Indenture, the Beneficiary on behalf of the Trust
may, from time to time issue, or direct the Owner Trustee, on behalf of the Trust, to issue one or
more new Series of Notes.

 A-2-5

 

 

          On each Distribution Date, the Paying Agent shall distribute to each Class B Noteholder of
record on the related Record Date (except for the final distribution in respect of this Class B
Note) such Class B Noteholder’s share of the amounts held by the Paying Agent that are allocated
and available on such Distribution Date to pay interest and principal on the Class B Notes pursuant
to the Indenture Supplement. Except as provided in the Indenture with respect to a final
distribution, distributions to Series 2005-1 Noteholders shall be made by (i) check mailed to each
Series 2005-1 Noteholder (at such Noteholder’s address as it appears in the Note Register), except
that with respect to any Series 2005-1 Notes registered in the name of the nominee of a Clearing
Agency, such distribution shall be made in immediately available funds and (ii) without
presentation or surrender of any Series 2005-1 Note or the making of any notation thereon. Final
payment of this Class B Note will be made only upon presentation and surrender of this Class B Note
at the office or agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2005-1 Noteholders in accordance with the Indenture.

          On any day occurring on or after the date on which the outstanding principal balance of the
Series 2005-1 Notes is reduced to 5% or less of the initial outstanding principal balance of the
Series 2005-1 Notes, the Servicer shall have the right, but not the obligation to direct the Trust
to redeem, or cause to be redeemed, the Series 2005-1 Notes, at a redemption price equal to the
Outstanding principal amount of Series 2005-1 plus interest accrued and unpaid or principal
accreted and unpaid to the Series 2005-1 Notes to but excluding the date of redemption, the payment
of which is subject to the Indenture and the allocations, deposits and payments in the Series
2005-1 Indenture Supplement.

          This Class B Note does not represent an obligation of, or an interest in, National City Bank
or any Affiliate thereof and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency or instrumentality.

          Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time
institute against the Issuer or the Transferor, or join in instituting against the Issuer or the
Transferor, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or
other proceedings under any United States federal or state bankruptcy or similar law.

          Except as otherwise provided in the Indenture Supplement, the Class B Notes are issuable only
in minimum denominations of $5,000 and integral multiples of $1,000. The transfer of this Class B
Note shall be registered in the Note Register upon surrender of this Class B Note for registration
of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a
written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer
Agent and Registrar, duly executed by the Class B Noteholder or such Class B Noteholder’s attorney,
and duly authorized in writing with such signature guaranteed, and thereupon one or more new Class
B Notes in any authorized denominations of like aggregate principal amount will be issued to the
designated transferee or transferees.

          As provided in the Indenture and subject to certain limitations therein set forth, Class B
Notes are exchangeable for new Class B Notes in any authorized denominations and of like aggregate
principal amount, upon surrender of such Notes to be exchanged at the office or

 A-2-6

 

 

agency of the Transfer Agent and Registrar. No service charge may be imposed for any such
exchange but the Issuer or Transfer Agent and Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection therewith.

          The Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, the Transferor
or the Indenture Trustee shall treat the person in whose name this Class B Note is registered as
the owner hereof for all purposes, and neither the Issuer, the Transferor, the Indenture Trustee
nor any agent of the Issuer, the Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

          THIS CLASS B NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 A-2-7

 

 

ASSIGNMENT

Social Security or other identifying number of assignee                                         

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
____________, attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

	 	 	 
	Dated:                     

	 	                                        1/
	 
	 	 
	 

	 	Signature Guaranteed:

 

			
	1/	 	NOTE: The signature to this Assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any
change whatsoever.

 A-2-8

 

 

EXHIBIT A-3

FORM OF

CLASS C FLOATING RATE ASSET BACKED NOTE

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) — ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY
TIME INSTITUTE AGAINST THE ISSUER OR THE TRANSFEROR, OR JOIN IN INSTITUTING AGAINST THE ISSUER OR
THE TRANSFEROR, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS,
OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

     THE HOLDER OF THIS CLASS C NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE CLASS C NOTES AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE
FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED
ON, OR MEASURED BY, INCOME.

 A-3-1

 

 

	 	 	 
	 
	 	 
	REGISTERED

	 	up to $39,000,0001/
	 
	 	 
	No. R-___

	 	CUSIP NO. ___

NATIONAL CITY CREDIT CARD MASTER NOTE TRUST

CLASS C SERIES 2005-1 FLOATING RATE ASSET BACKED NOTE

     NATIONAL CITY CREDIT CARD MASTER NOTE TRUST (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by a Trust Agreement dated as of July 13,
2005, as amended and restated as of August 23, 2005, and as amended by the First Amendment dated as
of March 20, 2007 for value received, hereby promises to pay to CEDE & CO., or registered assigns,
subject to the following provisions, the principal sum of THIRTY-NINE MILLION DOLLARS on the Series
2005-1 Scheduled Principal Payment Date (which is the August 2010 Distribution Date), except as
otherwise provided below or in the Indenture; provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on the August 2012 Payment Date (the
“Legal Maturity Date”). The Issuer will pay interest on the unpaid principal amount of
this Note at the Class C Note Rate on each Interest Payment Date until the principal amount of this
Note is paid in full. Interest on this Note will accrue for each Interest Payment Date from and
including the most recent Interest Payment Date on which interest has been paid to but excluding
such Interest Payment Date or, for the initial Interest Payment Date, from and including the
Issuance Date to but excluding such Interest Payment Date. Interest will be computed on the basis
of a 360-day year and the actual number of days elapsed. Such principal and interest on this Note
shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Indenture Trustee, by manual signature, this Note shall not be entitled to any benefit under the
Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

          THIS CLASS C NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A AND
CLASS B NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE SUPPLEMENT.

 

			
	1/	 	Denominations of $5,000 and integral multiples
of $1,000 in excess thereof.

 A-3-2

 

 

          IN WITNESS WHEREOF, the Issuer has caused this Class C Note to be duly executed.

	 	 	 	 	 
	 	 	NATIONAL CITY CREDIT CARD MASTER NOTE TRUST,

as Issuer
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST
COMPANY, not in its individual capacity but solely as
Owner Trustee under the Trust Agreement
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:

Dated: August     , 2005

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class C Notes described in the within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON,

as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

Dated: August      , 2005

 

 

[REVERSE OF NOTE]

          This Class C Note is one of a duly authorized issue of Notes of the Issuer, designated as
NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, Series 2005-1 (the “Series 2005-1 Notes”),
issued under an Indenture dated as of August 23, 2005, as amended by the First Amendment dated as
of March 20, 2007 (the “Master Indenture”), between the Issuer and The Bank of New York
Mellon, as indenture trustee (the “Indenture Trustee,” which term includes any successor
Indenture Trustee under the Indenture), as supplemented by the Series 2005-1 Indenture Supplement,
dated as of August 23, 2005 (as amended, supplemented and modified as of the date hereof, the
“Indenture Supplement”), and representing the right to receive certain payments from the
Issuer. The term “Indenture,” unless the context otherwise requires, refers to the Master
Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented
or amended, shall have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended. In the event of any conflict or inconsistency between the Indenture and
this Note, the Indenture shall control.

          The Class A Notes, the Class B Notes and the Class D Notes will also be issued under the
Indenture.

          The Noteholder, by its acceptance of this Note, agrees that it will look solely to the
property of the Trust allocated to the payment of this Note for payment hereunder and that the
Indenture Trustee is not liable to the Noteholders for any amount payable under the Note or the
Indenture or, except as expressly provided in the Indenture, subject to any liability under the
Indenture.

          This Note does not purport to summarize the Indenture and reference is made to the Indenture
for the interests, rights and limitations of rights, benefits, obligations and duties evidenced
thereby, and the rights, duties and immunities of the Indenture Trustee.

          The Class C Note Initial Dollar Principal Amount is $39,000,000. The Outstanding Dollar
Principal Amount of the Class C Notes on any date of determination will be an amount equal to
(a) the Class C Note Initial Principal Balance, minus (b) the aggregate amount of principal
payments made to the Class C Noteholders on or prior to such date.

          The Scheduled Principal Payment Date is the August 2010 Distribution Date, but principal with
respect to the Class C Notes may be paid earlier or later under certain circumstances described in
the Indenture. As described above, the entire unpaid principal amount of this Note shall be due
and payable on the Legal Maturity Date. Payments of principal of the Notes shall be payable in
accordance with the provisions of the Indenture.

          Subject to the terms and conditions of the Indenture, the Beneficiary, on behalf of the Trust,
may, from time to time issue, direct the Owner Trustee, on behalf of the Trust, to issue one or
more new Series of Notes.

          On each Distribution Date, the Paying Agent shall distribute to each Class C Noteholder of
record on the related Record Date (except for the final distribution in respect of this

 

 

Class C Note) such Class C Noteholder’s share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay interest and principal on the Class C
Notes pursuant to the Indenture Supplement. Except as provided in the Indenture with respect to a
final distribution, distributions to Series 2005-1 Noteholders shall be made by (i) check mailed to
each Series 2005-1 Noteholder (at such Noteholder’s address as it appears in the Note Register),
except that with respect to any Series 2005-1 Notes registered in the name of the nominee of a
Clearing Agency, such distribution shall be made in immediately available funds and (ii) without
presentation or surrender of any Series 2005-1 Note or the making of any notation thereon. Final
payment of this Class C Note will be made only upon presentation and surrender of this Class C Note
at the office or agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2005-1 Noteholders in accordance with the Indenture.

          On any day occurring on or after the date on which the outstanding principal balance of the
Series 2005-1 Notes is reduced to 5% or less of the initial outstanding principal balance of the
Series 2005-1 Notes, the Servicer shall have the right but not the obligation to direct the Trust
to redeem, or cause to be redeemed, the Series 2005-1 Notes, at a redemption price equal to the
Outstanding principal amount of Series 2005-1 plus interest accrued and unpaid or principal
accreted and unpaid to the Series 2005-1 Notes to but excluding the date of redemption, the payment
of which is subject to the Indenture and the allocations, deposits and payments in the Series
2005-1 Indenture Supplement.

          This Class C Note does not represent an obligation of, or an interest in, National City Bank
or any Affiliate thereof and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency or instrumentality.

          Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time
institute against the Issuer or the Transferor, or join in instituting against the Issuer or the
Transferor, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or
other proceedings under any United States federal or state bankruptcy or similar law.

          Except as otherwise provided in the Indenture Supplement, the Class C Notes are issuable only
in minimum denominations of $5,000 and integral multiples of $1,000. The transfer of this Class C
Note shall be registered in the Note Register upon surrender of this Class C Note for registration
of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a
written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer
Agent and Registrar, duly executed by the Class C Noteholder or such Class C Noteholder’s attorney,
and duly authorized in writing with such signature guaranteed, and thereupon one or more new Class
C Notes in any authorized denominations of like aggregate principal amount will be issued to the
designated transferee or transferees.

          As provided in the Indenture and subject to certain limitations therein set forth, Class C
Notes are exchangeable for new Class C Notes in any authorized denominations and of like aggregate
principal amount, upon surrender of such Notes to be exchanged at the office or agency of the
Transfer Agent and Registrar. No service charge may be imposed for any such exchange but the
Issuer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith.

 

 

          The Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, the Transferor
or the Indenture Trustee shall treat the person in whose name this Class C Note is registered as
the owner hereof for all purposes, and neither the Issuer, the Transferor, the Indenture Trustee
nor any agent of the Issuer, the Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

          THIS CLASS C NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

 

ASSIGNMENT

Social Security or other identifying number of assignee                                         

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
____________, attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

	 	 	 
	Dated:                     

	 	                                        1/
	 
	 	 
	 

	 	Signature Guaranteed:
	 
	 	 
	 

	 	                                        

 

			
	1/	 	NOTE: The signature to this Assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any
change whatsoever.

 

 

EXHIBIT A-4

FORM OF

CLASS D ASSET BACKED NOTE

     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”). NEITHER THIS NOTE NOR ANY PORTION HEREOF MAY BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF THE SECURITIES
ACT AND ANY APPLICABLE PROVISIONS OF ANY STATE BLUE SKY OR SECURITIES LAWS OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS. THE TRANSFER OF THIS NOTE IS SUBJECT TO
CERTAIN CONDITIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.

     EACH PURCHASER REPRESENTS AND WARRANTS, FOR THE BENEFIT OF NATIONAL CITY CREDIT CARD MASTER
NOTE TRUST, THAT SUCH PURCHASER IS NOT (1) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) WHICH IS SUBJECT
TO THE PROHIBITED TRANSACTIONS PROVISIONS OF ERISA, (2) A PLAN (AS DEFINED IN SECTION 4975(e)(1) OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) WHICH IS SUBJECT TO SECTION 4975
OF THE CODE, (3) A PLAN OR ARRANGEMENT SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW THAT IS
MATERIALLY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE, (4) DIRECTLY OR INDIRECTLY
PURCHASING THE CLASS D NOTES OR ANY INTEREST THEREIN, ON BEHALF OF, AS INVESTMENT MANAGER OF, AS
NAMED FIDUCIARY OF, AS TRUSTEE OF, OR WITH ASSETS OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN
OR ARRANGEMENT, OR (5) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF ANY SUCH
EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT’S INVESTMENT IN THE ENTITY.

     NEITHER THIS CLASS D NOTE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED TO AN EMPLOYEE BENEFIT OR
OTHER PLAN, TRUST ARRANGEMENT OR ACCOUNT WHICH IS SUBJECT TO THE PROHIBITED TRANSACTIONS PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE OR ANY FEDERAL, STATE OR LOCAL LAW THAT IS MATERIALLY SIMILAR
TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE.

     ANY TRANSFER OF A DIRECT OR INDIRECT INTEREST IN THIS CLASS D NOTE IS SUBJECT TO THE
PROVISIONS OF THE INDENTURE AND SUBJECT TO CERTAIN LIMITATIONS THEREIN SET FORTH, INCLUDING SECTION
2.05 OF THE SERIES 2005-1 INDENTURE SUPPLEMENT.

 

 

			
	 	 	 
	REGISTERED
	 	$26,632,0001/
	 	 	 
	No. R-___	 	 

NATIONAL CITY CREDIT CARD MASTER NOTE TRUST

CLASS D SERIES 2005-1 ASSET BACKED NOTE

     NATIONAL CITY CREDIT CARD MASTER NOTE TRUST (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by a Trust Agreement dated as of July 13,
2005, as amended and restated as of August 23, 2005, and as amended by the First Amendment dated as
of March 20, 2007 for value received, hereby promises to pay to NATIONAL CITY BANK, or registered
assigns, subject to the following provisions, the principal sum of TWENTY SIX MILLION SIX HUNDRED
THIRTY-TWO THOUSAND DOLLARS on the Series 2005-1 Scheduled Principal Payment Date (which is the
August 2010 Distribution Date), except as otherwise provided below or in the Indenture;
provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the August 2012 Payment Date (the “Legal Maturity Date”). The Issuer
will pay interest on the unpaid principal amount of this Note at the Class D Note Rate on each
Interest Payment Date until the principal amount of this Note is paid in full. Interest on this
Note will accrue for each Interest Payment Date from and including the most recent Interest Payment
Date on which interest has been paid to but excluding such Interest Payment Date or, for the
initial Interest Payment Date, from and including the Issuance Date to but excluding such Interest
Payment Date. Interest will be computed on the basis of a 360-day year and twelve 30 day months.
Such principal of and interest on this Note shall be paid in the manner specified on the reverse
hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Indenture Trustee, by manual signature, this Note shall not be entitled to any benefit under the
Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

     THIS CLASS D NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A
NOTES, CLASS B NOTES AND CLASS C NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE SUPPLEMENT.

 

			
	1/	 	Denominations of $5,000 and integral multiples
of $1,000 in excess thereof.

 

 

          IN WITNESS WHEREOF, the Issuer has caused this Class D Note to be duly executed.

	 	 	 	 	 
	 	 	NATIONAL CITY CREDIT CARD MASTER NOTE TRUST,

as Issuer
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST
COMPANY, not in its individual capacity but solely as
Owner Trustee under the Trust Agreement
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:

Dated: July __, 2009

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class D Notes described in the within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON,

as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

Dated: July __, 2009

 

 

[REVERSE OF NOTE]

          This Class D Note is one of a duly authorized issue of Notes of the Issuer, designated as
NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, Series 2005-1 (the “Series 2005-1 Notes”),
issued under an Indenture dated as of August 23, 2005, as amended by the First Amendment dated as
of March 20, 2007 (the “Master Indenture”), between the Issuer and The Bank of New York
Mellon, as indenture trustee (the “Indenture Trustee,” which term includes any successor
Indenture Trustee under the Indenture), as supplemented by the Series 2005-1 Indenture Supplement,
dated as of August 23, 2005, as amended and restated as of July 1, 2009 (as amended, supplemented
and modified as of the date hereof, the “Indenture Supplement”), and representing the right
to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes
are subject to all of the terms of the Indenture. All terms used in this Note that are defined in
the Indenture, as supplemented or amended, shall have the meanings assigned to them in or pursuant
to the Indenture, as so supplemented or amended. In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

          The Class A Notes, the Class B Notes and the Class C Notes will also be issued under the
Indenture.

          The Noteholder, by its acceptance of this Note, agrees that it will look solely to the
property of the Trust allocated to the payment of this Note for payment hereunder and that the
Indenture Trustee is not liable to the Noteholders for any amount payable under the Note or the
Indenture or, except as expressly provided in the Indenture, subject to any liability under the
Indenture.

          This Note does not purport to summarize the Indenture and reference is made to the Indenture
for the interests, rights and limitations of rights, benefits, obligations and duties evidenced
thereby, and the rights, duties and immunities of the Indenture Trustee.

          The initial dollar principal amount of the Class D Note is $26,632,000. The outstanding
dollar principal amount of the Series 2005-1 Notes on any date of determination will be an amount
equal to (a) the Class D Note Initial Principal Balance, minus (b) the aggregate amount of
principal payments made to the Class D Noteholders on or prior to such date.

          The Scheduled Principal Payment Date is the August 2010 Distribution Date, but principal with
respect to the Class D Notes may be paid earlier or later under certain circumstances described in
the Indenture. As described above, the entire unpaid principal amount of this Note shall be due
and payable on the Legal Maturity Date. Payments of principal of the Notes shall be payable in
accordance with the provisions of the Indenture.

          Subject to the terms and conditions of the Indenture, the Beneficiary on behalf of the Trust,
may, from time to time issue, or direct the Owner Trustee, on behalf of the Trust, to issue one or
more new Series of Notes.

          On each Distribution Date beginning on July 15, 2009, the Paying Agent shall distribute to
each Class D Noteholder of record on the related Record Date (except for the final

 

 

distribution in respect of this Class D Note) such Class D Noteholder’s share of the amounts
held by the Paying Agent that are allocated and available on such Distribution Date to pay interest
and principal on the Class D Notes pursuant to the Indenture Supplement. Except as provided in the
Indenture with respect to a final distribution, distributions to Series 2005-1 Noteholders shall be
made by (i) check mailed to each Series 2005-1 Noteholder (at such Noteholder’s address as it
appears in the Note Register), except that with respect to any Series 2005-1 Notes registered in
the name of the nominee of a Clearing Agency, such distribution shall be made in immediately
available funds and (ii) without presentation or surrender of any Series 2005-1 Note or the making
of any notation thereon. Final payment of this Class D Note will be made only upon presentation
and surrender of this Class D Note at the office or agency specified in the notice of final
distribution delivered by the Indenture Trustee to the Series 2005-1 Noteholders in accordance with
the Indenture.

          On any day occurring on or after the date on which the outstanding principal balance of the
Series 2005-1 Notes is reduced to 5% or less of the initial outstanding principal balance of the
Series 2005-1 Notes, the Servicer shall have the right but not the obligation to direct the Trust
to redeem, or cause to be redeemed, the Series 2005-1 Notes, at a redemption price equal to the
outstanding principal amount of Series 2005-1 plus interest accrued and unpaid or principal
accreted and unpaid to the Series 2005-1 Notes to but excluding the date of redemption, the payment
of which is subject to the Indenture and the allocations, deposits and payments in the Indenture
Supplement.

          This Class D Note does not represent an obligation of, or an interest in, National City Bank
or any Affiliate thereof and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency or instrumentality.

          Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time
institute against the Issuer or the Transferor, or join in instituting against the Issuer or the
Transferor, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or
other proceedings under any United States federal or state bankruptcy or similar law.

          Except as otherwise provided in the Indenture Supplement, the Class D Notes are issuable only
in minimum denominations of $5,000 and integral multiples of $1,000. The transfer of this Class D
Note shall be registered in the Note Register upon surrender of this Class D Note for registration
of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a
written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer
Agent and Registrar, duly executed by the Class D Noteholder or such Class D Noteholder’s attorney,
and duly authorized in writing with such signature guaranteed, and thereupon one or more new Class
D Notes in any authorized denominations of like aggregate principal amount will be issued to the
designated transferee or transferees.

          As provided in the Indenture and subject to certain limitations therein set forth, Class D
Notes are exchangeable for new Class D Notes in any authorized denominations and of like aggregate
principal amount, upon surrender of such Notes to be exchanged at the office or agency of the
Transfer Agent and Registrar. No service charge may be imposed for any such exchange but the
Issuer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith.

 

 

          The Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, the Transferor
or the Indenture Trustee shall treat the person in whose name this Class D Note is registered as
the owner hereof for all purposes, and neither the Issuer, the Transferor, the Indenture Trustee
nor any agent of the Issuer, the Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

          THIS CLASS D NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

 

ASSIGNMENT

Social Security or other identifying number of assignee                                         

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
____________, attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

	 	 	 
	Dated:

	 	                                        1/
	 
	 	 
	 

	 	Signature Guaranteed:
	 
	 	 
	 

	 	                                        

 

			
	1/	 	NOTE: The signature to this Assignment
must correspond with the name of the registered owner as it appears on the face
of the within Note in every particular, without alteration, enlargement or any
change whatsoever.

 

 

EXHIBIT B

[FORM OF] SERIES 2005-1 SCHEDULE TO PAYMENT INSTRUCTIONS

NATIONAL CITY BANK

 

 

NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, SERIES 2005-1

MONTHLY PERIOD ENDING ___, ___

 

 

     Capitalized terms used in this notice have their respective meanings set forth in the
Indenture and the Indenture Supplement. Unless otherwise qualified, references herein to certain
sections and subsections are references to the respective sections and subsections of the Indenture
Supplement. This instruction is delivered pursuant to Section 908 of the Indenture.

     The Servicer does hereby instruct the Issuer to instruct the Indenture Trustee, and the Issuer
does hereby instruct the Indenture Trustee, to make the following allocations and payments for the
related Monthly Period on ___, ___, which date is a Transfer Date under the Pooling and
Servicing Agreement, in aggregate amounts set forth below in respect of the following amounts:

I. Allocations and Payments of Series 2005-1 Finance Charge Amounts.

	 	 	 	 	 
	A. Allocation of Series 2005-1 Finance Charge Amounts from the Collection
Account pursuant to
Section 3.01, to be applied on each Transfer Date by the
Indenture Trustee
in the following priority:
	 	 	 	 
	 
	 	 	 	 
	1. Class A Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. Class A Monthly Interest previously due but not paid,
if any
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	3. Class A Additional Interest, if any, and any Class A
Additional Interest previously due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	4. Class B Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	5. Class B Monthly Interest previously due but not paid,
if any
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	6. Class B Additional Interest, if any, and any Class B
Additional Interest previously due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	7. Series 2005-1 Servicing Fee
	 	$	 	 
	 
	 	 	 	 

B-1

 

	 	 	 	 	 
	8. Series 2005-1 Servicing Fee previously due but not
paid, if any
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	9. Class C Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	10. Class C Monthly Interest previously due but not paid,
if any
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	11. Class C Additional Interest, if any, and any Class C
Additional Interest previously due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	12. Class D Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	13. Class D Monthly Interest previously due but not paid,
if any
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	14. Class D Additional Interest, if any, and any Class D
Additional Interest previously due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	15. Series 2005-1 Investor Default Amount to be treated
as Available Principal Amounts, if any
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	16. Aggregate Nominal Liquidation Amount Deficit, if any,
to be treated as a Available Principal Amounts
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	17. Amount up to the excess, if any of the Required
Reserve Account Amount over the Available Reserve
Account Amount to be deposited into the Reserve
Account
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	18. Amount equal to the Spread Account Deficiency to be
deposited into the Spread
Account
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	19. If an Event of Default and acceleration of the
maturity of the Series 2005-1 Notes has occurred on
or prior to the related Distribution Date, an amount
up to the Series 2005-1 Outstanding Dollar Principal
Amount on such Distribution Date
minus the amount of Series 2005-1
Available Principal Amounts (not taking into account
amounts available under this clause) and amounts, if
any, on deposit in the Principal Funding Account
available to pay principal on the Class A Notes, the
Class B Notes, the Class C Notes and the Class D
Notes on such Distribution Date, to be treated as a
portion of Available Principal Amounts for such
Distribution Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	20. Amount to be treated as Shared Excess Finance Charge
Amounts for application in accordance with
Section 3.17
	 	$	 	 
	 
	 	 	 	 

B-2

 

	 	 	 	 	 
	21. Amount to be paid to the Servicer and treated as
Excess Finance Charge Collections for application in
accordance with the Series 2005-CC Supplement and the
Pooling and Servicing Agreement
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B. Amounts to be treated as Series 2005-1 Finance Charge Amounts and
deposited into the
Collection Account pursuant to Section 3.03:
	 	 	 	 
	 
	 	 	 	 
	1. Amount withdrawn from the Reserve Account
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. Any Shared Excess Finance Charge Amounts allocable to
Series 2005-1
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	3. Amount withdrawn from the Spread Account and
deposited into the Collection Account for the Class C
Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	4. Receivables Sales Proceeds received by the Issuer
pursuant to Section 3.12(c)(ii) 
and deposited into the Collection Account for Series
2005-1
	 	$	 	 
	 
	 	 	 	 

II. Allocations and Payments of Series 2005-1 Available Principal Amounts.

	 	 	 	 	 
	A. Re-allocation of Series 2005-1 Available Principal Amounts pursuant
to Section 3.06(a),
(b) and (c) to be applied on the next Transfer
Date by the Indenture Trustee:
	 	 	 	 
	 
	 	 	 	 
	1. Reallocated Class D Principal Collections:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. Reallocated Class C Principal Collections:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	3. Reallocated Class B Principal Collections:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B. Targeted Deposits of Series 2005-1 Available Principal
Amounts to the Principal Funding
Account pursuant to Section 3.08, to be made by
the Indenture Trustee on the following
dates:
	 	 	 	 
	 
	 	 	 	 
	1. On the applicable Principal Payment Date prior to any payment,
the Nominal Liquidation Amount for the related Class of Notes:
	 	 	 	 
	 
	 	 	 	 
	a. Class A
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	b. Class B
	 	$	 	 
	 
	 	 	 	 

B-3

 

	 	 	 	 	 
	c. Class C
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	d. Class D
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. In the Principal Funding Account for each Class of the Series
2005-1 Notes, the Controlled Accumulation Amount or the amount
specified in Section 3.08(b)(ii):
	 	 	 	 
	 
	 	 	 	 
	a. Class A
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	b. Class B
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	c. Class C
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	d. Class D
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	3. In the case of an Event of Default, Early Redemption Event or
other optional or mandatory redemption, on the applicable
Transfer Date, the Nominal Liquidation Amount for the related
Class of Notes:
	 	 	 	 
	 
	 	 	 	 
	a. Class A
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	b. Class B
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	c. Class C
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	d. Class D
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	C. Payments and deposits pursuant to Section 3.09, to
be received on the following
dates:
	 	 	 	 
	 
	 	 	 	 
	1. Withdrawals from the Spread Account deposited into
the Principal Funding Account on the Distribution
Date pursuant to Section 3.14(b) 
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. As of the date of receipt, Receivables Sales Proceeds
received pursuant to Section 3.12(c)(i)
 deposited in the Principal Funding Account
as of the date of receipt by the Issuer
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	D. Withdrawals from the Principal Funding Account pursuant to
Section 3.10, and remitted
to the Paying Agent for payment on the Notes in the
following priority:
	 	 	 	 

B-4

 

	 	 	 	 	 
	1. Principal payment to Class A Noteholders
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. Principal payment to Class B Noteholders
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	3. Principal payment to Class C Noteholders
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	4. Principal payment to Class D Noteholders
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	E. Allocations of reductions from Investor Charge-Offs
to the Nominal Liquidation Amount of
subordinated classes pursuant to Section 3.04:
	 	 	 	 
	 
	 	 	 	 
	1. Initial allocation of Investor Charge-Offs to each
Class of Series 2005-1 Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Class A
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Class B
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Class C
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Class D
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. Amount reallocated to the Class D Notes, subject to
the restrictions set forth in Section
3.04(b)(i) 
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	3. Amount reallocated to the Class C Notes, subject to
the restrictions set forth in Section
3.04(b)(ii) 
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	4. Amount reallocated to the Class B Notes, subject to
the restrictions set forth in Section
3.04(b)(iii) 
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	5. Amount reallocated to the Class A Notes, subject to
the restrictions set forth in Section
3.04(b)(iv) 
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	F. Net proceeds from sales of Receivables for Accelerated
Series 2005-1 Notes pursuant to
Section 3.12
	 	$	 	 
	 
	 	 	 	 

III. Targeted deposits to, and withdrawals of funds on deposit from, the Spread Account.

	 	 	 	 	 
	A. Targeted deposit to the Spread Account for the Class C Notes pursuant to
Section 3.13:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B. Withdrawals from the Spread Account pursuant to Section 3.14:
	 	 	 	 
	 
	 	 	 	 
	1. Amount withdrawn from
the Spread Account
and deposited in the
Collection Account
for the Class C Notes
pursuant to
Section
3.14(a):
	 	 	 	 

B-5

 

	 	 	 	 	 
	2. Amount withdrawn from
the Spread Account
and deposited in the
Principal Funding
Account pursuant to
Section
3.14(b):
	 	 	 	 

IV. Targeted deposits to, and withdrawals of funds on deposit from, the Reserve Account.

	 	 	 	 	 
	A. Targeted deposit to the Reserve Account pursuant to
Section 3.15:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B. Withdrawals from the Reserve Account pursuant to
Section 3.16:
	 	 	 	 
	 
	 	 	 	 
	1. Amount withdrawn from the Reserve
Account and deposited in the
Collection Account to be treated as
Series 2005-1 Finance Charge Amounts
pursuant to Section 3.16(a):
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. Amount withdrawn from the Reserve
Account and paid to the Issuer
pursuant to Section 3.16(b):
	 	$	 	 
	 
	 	 	 	 

          IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate this ___
day of ___, ___.

	 	 	 	 	 
	 	NATIONAL CITY BANK,

as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-6

 

EXHIBIT C

FORM OF SERIES 2005-1 SCHEDULE TO MONTHLY NOTEHOLDERS’ STATEMENT

NATIONAL CITY CREDIT CARD MASTER NOTE TRUST

SERIES 2005-1

     Reference is made to the Series 2005-CC Supplement dated as of August 23, 2005 (the
“Series 2005-CC Supplement”), between NATIONAL CITY BANK, as Seller and Servicer, and BNY
Mellon Trust of Delaware (formerly known as BNYM (Delaware) and The Bank of New York (Delaware)),
as Trustee, the Indenture dated as of August 23, 2005, as amended by the First Amendment thereto
dated as of March 20, 2007 (the “Indenture”), as supplemented by the Amended and Restated
Series 2005-1 Indenture Supplement, dated as of July 1, 2009 (the “Indenture Supplement”),
each between NATIONAL CITY CREDIT CARD MASTER NOTE TRUST, as issuer (the “Issuer”) and The
Bank of New York Mellon (formerly known as The Bank of New York), as indenture trustee (the
“Indenture Trustee”). Capitalized terms used in this Monthly Noteholders’ Statement have
their respective meanings set forth in the Series 2005-CC Supplement, the Master Indenture and the
Indenture Supplement, as applicable.

Information Regarding the Current Monthly Distribution

	 	 	 	 	 
	1. The amount of the current monthly principal payment in
respect of the Class A Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	2. The amount of the current monthly principal payment in
respect of the Class B Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	3. The amount of the current monthly principal payment in
respect of the Class C Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	4. The amount of the current monthly principal payment in
respect of the Class D Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	5. The amount of the current monthly distribution in
respect of Class A Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	6. The amount of the current monthly distribution in
respect of Class A Additional Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	7. The amount of the current monthly distribution in
respect of Class B Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	8. The amount of the current monthly distribution in
respect of Class B Additional Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	9. The amount of the current monthly distribution in
respect of Class C Monthly Interest
	 	$	 	 
	 
	 	 	 	 

 

 

	 	 	 	 	 
	10. The amount of the current monthly distribution in
respect of Class C Additional Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	11. The amount of the current monthly distribution in
respect of Class D Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	12. The amount of the current monthly distribution in
respect of Class D Additional Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	13. Series 2005-1 Investor Default Amount
	 	 	 	 
	 
	 	 	 	 
	(a) The Series 2005-1 Investor Default Amount for the
related Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) Series 2005-1 Investor Default Amount allocated to
the Class A Notes for the related Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(c) Series 2005-1 Investor Default Amount allocated to
the Class B Notes for the related Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(d) Series 2005-1 Investor Default Amount allocated to
the Class C Notes for the related Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(e) Series 2005-1 Investor Default Amount
allocated to the Class D Notes for the related Monthly
Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	14. Investor Charge-Offs
	 	 	 	 
	 
	 	 	 	 
	(a) The aggregate amount of Investor Charge-Offs
allocated to the Class A Notes for the related Monthly
Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The aggregate amount of Investor Charge-Offs
allocated to the Class B Notes for the related Monthly
Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(d) The aggregate amount of Investor Charge-Offs
allocated to the Class C Notes for the related Monthly
Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(e) The aggregate amount of Investor Charge-Offs
allocated to the Class D Notes for the related Monthly
Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(f) The aggregate amount of the Nominal Liquidation
Amount Deficit of the Class A Notes reimbursed on the
Transfer Date immediately preceding this Distribution
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(g) The aggregate amount of the Nominal Liquidation
Amount Deficit of the Class B Notes reimbursed on the
Transfer Date immediately preceding this Distribution
Date
	 	$	 	 
	 
	 	 	 	 

 

 

	 	 	 	 	 
	(h) The aggregate amount of the Nominal Liquidation
Amount Deficit of the Class C Notes reimbursed on the
Transfer Date immediately preceding this Distribution
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(i) The aggregate amount of the Nominal Liquidation
Amount Deficit of the Class D Notes reimbursed on the
Transfer Date immediately preceding this Distribution
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	15. Investor Servicing Fee
	 	 	 	 
	 
	 	 	 	 
	(a) The amount of the Master Trust Investor Servicing
Fee payable by the Trust on behalf of the Series 2005-1
Noteholders to the Servicer for the related Monthly
Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The amount of Servicer Interchange payable by the
Trust to the Servicer for the related Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	16. Reallocations
	 	 	 	 
	 
	 	 	 	 
	(a) The amount of Reallocated Class D Principal
Collections with respect to this Distribution Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The amount of Reallocated Class C Principal
Collections with respect to this Distribution Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(c) The amount of Reallocated Class B Principal
Collections with respect to this Distribution Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(d) The Class D Nominal Liquidation Amount as of the
close of business on this Distribution Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(e) The Class C Nominal Liquidation Amount as of the
close of business on this Distribution Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(f) The Class B Nominal Liquidation Amount as of the
close of business on this Distribution Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	17. Reserve Account
	 	 	 	 
	 
	 	 	 	 
	(a) The Reserve Draw Amount on the related Transfer
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The amount of the Reserve Draw Amount deposited in
the Collection Account on the related Transfer Date to
be treated as Series 2005-1 Finance Charge Amounts for
the Class A Notes
	 	$	 	 
	 
	 	 	 	 

 

 

	 	 	 	 	 
	(c) The amount of the Reserve Draw Account deposited in
the Collection Account on the related Transfer Date to
be treated as Series 2005-1 Finance Charge Amounts for
the Class B Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(d) The amount of the Reserve Draw Account deposited in
the Collection Account on the related Transfer Date to
be treated as Series 2005-1 Finance Charge Amounts for
the Class C Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(e) The amount of the Reserve Draw Account deposited in
the Collection Account on the related Transfer Date to
be treated as Series 2005-1 Finance Charge Amounts for
the Class D Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(f) The amount on deposit in the Reserve Account that
exceeds the amount required to be on deposit in the
Reserve Account and is then paid to the Issuer
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	18. Spread Account
	 	 	 	 
	 
	 	 	 	 
	(a) The Spread Account Deficiency on the related
Transfer
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The amount withdrawn from the Spread Account and
deposited in the Collection Account on the related
Transfer Date to be treated as Series 2005-1 Finance
Charge Amounts for the Class C Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(c) The amount withdrawn from the Spread Account and
deposited in the Principal Funding Account on the
related Transfer Date to be treated as Series 2005-1
Finance Charge Amounts for the Class C Notes
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	19. Series 2005-1 Finance Charge Amounts
	 	 	 	 
	 
	 	 	 	 
	(a) The amount of Series 2005-1 Finance Charge Amounts
on deposit in the Collection Account allocated to the
Class A Notes on the related Transfer Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The amount of Series 2005-1 Finance Charge Amounts
on deposit in the Collection Account allocated to the
Class B Notes on the related Transfer Date
	 	$	 	 
	 
	 	 	 	 

 

 

	 	 	 	 	 
	(c) The amount of Series 2005-1 Finance Charge Amounts
on deposit in the Collection Account allocated to the
Class C Notes on the related Transfer Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(d) The amount of Series 2005-1 Finance Charge Amounts
on deposit in the Collection Account allocated to the
Class D Notes on the related Transfer Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(e) The amount of Shared Excess Finance Charge Amounts
for other Series of Notes in Group A
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	20. Series 2005-1 Available Principal Amounts
after Reallocations
	 	 	 	 
	 
	 	 	 	 
	(a) The amount of Series 2005-1 Available Principal
Amounts on deposit in the Principal Funding Account
allocated to the Class A Notes on the related Transfer
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The amount of Series 2005-1 Available Principal
Amounts on deposit in the Principal Funding Account
allocated to the Class B Notes on the related Transfer
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(c) The amount of Series 2005-1 Available Principal
Amounts on deposit in the Principal Funding Account
allocated to the Class C Notes on the related Transfer
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(d) The amount of Series 2005-1 Available Principal
Amounts on deposit in the Principal Funding Account
allocated to the Class D Notes on the related Transfer
Date
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(e) The amount of Shared Excess Principal Amounts for
other Series of Notes in Group A
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	21. Base Rate
	 	 	 	 
	 
	 	 	 	 
	(a) The Base Rate for the related Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	22. Portfolio Yield
	 	 	 	 
	 
	 	 	 	 
	(a) The Portfolio Yield for the related Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(b) The Portfolio Adjusted Yield for the related
Monthly Period 
	 	$	 	 
	 
	 	 	 	 

 

 

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Monthly Noteholders’
Statement this ___ day of                     , ___.

	 	 	 	 	 
	 	NATIONAL CITY BANK, as Administrator on behalf of the

National City Credit Card Master Note Trust and as Servicer

of the National City Credit Card Master Trust

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]