Document:

utmd8k20110323gbp.htm

Exhibit 10.11

 

	
 

 

 

 

 

£8,000,000

FACILITY AGREEMENT

 

dated 18 March 2011

 

for

 

FEMCARE GROUP LIMITED

as Borrower

 

with

 

JPMORGAN CHASE BANK, N.A., LONDON BRANCH

as Lender

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	  	
TERM FACILITY AGREEMENT

	  
	 	 	 
	 	 	 
	 	 	 

 

JPMorgan Chase Bank, N.A.

125 London Wall

London EC2Y 5AJ

 

 

  

 

  

CONTENTS

 

	
CLAUSE

	  	
PAGE

	
1.

	
Definitions And Interpretation

	
1

	
2.

	
The Facility

	
8

	
3.

	
Purpose

	
8

	
4.

	
Conditions Of Utilisation

	
8

	
5.

	
Utilisation

	
8

	
6.

	
Repayment

	
9

	
7.

	
Prepayment And Cancellation

	
9

	
8.

	
Interest

	
11

	
9.

	
Interest Periods

	
12

	
10.

	
Changes To The Calculation Of Interest

	
12

	
11.

	
Tax Gross Up  And Indemnities

	
13

	
12.

	
Increased Costs

	
15

	
13.

	
Other Indemnities

	
16

	
14.

	
Mitigation By The Lender

	
17

	
15.

	
Costs And Expenses

	
17

	
16.

	
Representations

	
18

	
17.

	
Information Undertakings

	
21

	
18.

	
General Undertakings

	
22

	
19.

	
Events Of Default

	
26

	
20.

	
Changes To The Lender

	
28

	
21.

	
Changes To The Borrower

	
30

	
22.

	
Conduct Of Business By The Lender

	
31

	
23.

	
Payment Mechanics

	
31

	
24.

	
Set-Off

	
33

	
25.

	
Notices

	
33

	
26.

	
Calculations And Certificates

	
34

	
27.

	
Partial Invalidity

	
34

	
28.

	
Remedies And Waivers

	
34

	
29.

	
Amendments And Waivers

	
35

	
30.

	
Confidentiality

	
35

	
31.

	
Counterparts

	
37

	
32.

	
Governing Law

	
37

	
33.

	
Enforcement

	
37

	
Schedule 1

	
Conditions Precedent

	
39

	
Schedule 2

	
Requests

	
42

	
Schedule 3

	
Mandatory Cost Formulae

	
43

	
Schedule 4

	
Form Of Transfer Certificate

	
45

 

 

  

 

  

THIS AGREEMENT is dated 18 March 2011 and made between:

 

	
(1)

	
FEMCARE GROUP LIMITED (Company number: 5147637) as borrower (the "Borrower"); and

 

	
(2)

	
JPMORGAN CHASE BANK, N.A., LONDON BRANCH as lender (the "Lender").

 

IT IS AGREED as follows:

 

	
1.

	
DEFINITIONS AND INTERPRETATION

 

	
1.1

	
Definitions

In this Agreement:

 

"Additional Cost Rate" has the meaning given to it in Schedule 3 (Mandatory Cost formulae).

 

"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.

 

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

 

"Availability Period" means the period from and including the date of this Agreement to and including 21 March 2011.

 

"Available Facility" means the amount of the Facility, minus the amount of the outstanding Loan.

 

"Borrower Group" means the Borrower and its Subsidiaries for the time being.

 

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

 

	
  

	
(a)

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

 

exceeds:

 

	
  

	
(b)

	
the amount which the 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.

 

	
  

	
"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in London.

 

  

- 1 -

  

	
  

	
"Confidential Information" means all information relating to the Borrower, the Group, the Finance Documents or the Facility of which the Lender becomes aware in its capacity as, or for the purpose of becoming, a Lender or which is received by the Lender in relation to, or for the purpose of becoming a Lender under, the Finance Documents or the Facility 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:

 

	
  

	
(a)

	
is or becomes public information other than as a direct or indirect result of any breach by the Lender of Clause 32 (Confidentiality); or

 

	
  

	
(b)

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

 

	
  

	
(c)

	
is known by the Lender before the date the information is disclosed to it by any member of the Group or any of its advisers or is lawfully obtained by the Lender after that date, from a source which is, as far as the Lender is aware, unconnected with the Group and which, in either case, as far as the Lender 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 a recommended form of the LMA or in any other form agreed between the Borrower and the Lender.

 

"Default" means an Event of Default or any event or circumstance specified in Clause 19 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.

 

"Disruption Event" means either or both of:

 

	
  

	
(a)

	
a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

 

	
  

	
(b)

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

 

	
  

	
(i)

	
from performing its payment obligations under the Finance Documents; or

 

	
  

	
(ii)

	
from communicating with any other Party 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.

 

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

  

- 2 -

  

"Environmental Law" means any applicable law in any jurisdiction in which any member of the Group conducts business which relates to the pollution or protection of the environment or harm to or the protection of human health or the health of animals or plants.

 

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

 

"Event of Default" means any event or circumstance specified as such in Clause 19 (Events of Default).

 

"Facility" means the term loan facility in an aggregate amount of £8,000,000 made available under this Agreement as described in Clause 2 (The Facility) to the extent not cancelled or reduced under this Agreement.

 

"Facility Office" means the office or offices identified with the Lender's signature below or such other office as it may from time to time select by notice to the Borrower as the office or offices through which it will perform its obligations under this Agreement.

 

"Finance Document" means this Agreement, each Share Charge, the U.S. Guarantee, the Guarantee and any other document designated as such by the Lender and the Borrower.

 

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

 

	
  

	
(a)

	
moneys borrowed;

 

	
  

	
(b)

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

 

	
  

	
(c)

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

 

	
  

	
(d)

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

 

	
  

	
(e)

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

 

	
  

	
(f)

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

 

	
  

	
(g)

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

 

	
  

	
(h)

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

 

	
  

	
(i)

	
any amount raised by the issue of redeemable shares;

 

	
  

	
(j)

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

   

	
  

	
(k)

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

   

  

- 3 -

  

 

"GAAP" means generally accepted accounting principles in the United States of America.

 

"Group" means the Parent and its Subsidiaries for the time being.

 

"Guarantee" means the guarantee dated on or around the date of this Agreement between each Guarantor and the Lender pursuant to which Guarantor guarantees the obligations of each other Guarantor to the Lender.

 

"Guarantors" means the Borrower, Femcare (Holdings) Limited, Femcare Distribution Limited and Femcare-Nikomed Limited.

 

"Hedging Agreements" means (i) any transaction (including an agreement with respect thereto) now existing or hereafter entered into between Borrower and JPMorgan Chase Bank, N.A. and/or its affiliates which is a rate swap, swap option, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap, floor, collar, currency swap, cross-currency rate swap, currency option, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, weather index transaction or forward purchase or sale of a security, commodity or other financial instrument or interest (including an option with respect to any of these transactions), or (ii) any type of transaction that is similar to any transaction referred to in clause (i) above that is currently, or in the future becomes, recurrently entered into in the financial markets and which is a forward, swap, future, option or other derivative on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, economic indices or measures of economic risk or value, or other benchmarks against which payments or deliveries are to be made, or any combination of the foregoing transactions.

 

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

 

"Interest Period" means, in relation to the Loan, each period determined in accordance with Clause 9 (Interest Periods) and in relation to an Unpaid Sum, each period determined in accordance with Clause 8.4 (Default interest).

 

"ITA" means the Income Tax Act 2007.

 

"LIBOR" means in relation to the Loan or Unpaid Sum denominated in a currency other than euro on which interest for a given period is to accrue, the rate per annum at which the Lender was offering to prime banks in the London Interbank Market deposits in the currency of the Loan or Unpaid Sum for a period comparable to the Interest Period of the Loan or Unpaid Sum at or about 11.00 a.m. (London time) on the first day of that Interest Period.

 

"LMA" means the Loan Market Association.

 

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

 

"Mandatory Cost" means the percentage rate per annum calculated by the Lender in accordance with Schedule 3 (Mandatory Cost formulae).

  

- 4 -

  

"Margin" means, subject to Clause 8.2 (Adjustment of Margin), 2 per cent per annum.

 

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

 

	
  

	
(a)

	
the financial condition, assets, prospects or business of the Borrower or the consolidated financial condition, assets, prospects or business of the Group taken as a whole;

 

	
  

	
(b)

	
the ability of the Borrower to perform its obligations under the Finance Documents to which it is a party; or

 

	
  

	
(c)

	
the validity or enforceability of the Finance Documents or any of the rights or remedies of the Lender under the Finance Documents.

 

"Month" means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

 

	
  

	
(a)

	
(subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

 

	
  

	
(b)

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

 

	
  

	
(c)

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

 

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

 

"Original Consolidated Financial Statements" means the audited consolidated financial statements of the Group for the financial year ended 31 December 2009.

 

"Parent" means Utah Medical Products, Inc., a Utah corporation.

 

"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.

 

"Permitted Financial Indebtedness" means (i) Financial Indebtedness of the Group in an aggregate principal amount not exceeding $250,000, (ii) the guarantee and indemnity dated 13 June 2008 between the Parent and the Governor and Company of the Bank of Ireland and (iii) the €2,620,399 facility  agreement dated 12 March 2008 between Utah Medical Products Limited and Bank of Ireland.

 

"Quotation Day" means, in relation to any period for which an interest rate is to be determined, the first day of that period unless market practice differs in the Relevant Interbank Market, in which case the Quotation Day will be determined by the Lender in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

  

- 5 -

  

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

 

"Relevant Interbank Market" means the London interbank market.

 

"Repayment Date" means the last Business of each Month.

 

"Repayment Instalment" means each instalment for repayment of the Loan referred to in Clause 6.1 (Repayment of Loan).

 

"Repeating Representations" means each of the representations set out in Clauses 16.1 (Status) to 16.6 (Governing law and enforcement), Clause 16.9 (No default), sub-clause 16.10.4 of Clause 16.10 (No misleading information), sub-clause 17.11.4 of Clause 17.11 (Financial Statements), Clause 16.12 (Pari passu ranking) and Clause 16.13 (No proceedings pending or threatened).

 

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

 

"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.

 

"Selection Notice" means a notice substantially in the form set out in Part B of Schedule 2 (Requests) given in accordance with Clause 9 (Interest Periods).

 

"Share Charge" means each share charge dated on or about the date of this Agreement, granted in favour of the Lender by (i) the Parent over 65% of the shares in the Borrower, (ii) Femcare (Holdings) Limited over 100% of the shares in Femcare-Nikomed Limited and (iii) Femcare Distribution Limited over 100% of the shares in Femcare-Nikomed Limited.

 

"Subsidiary" means a subsidiary within the meaning of section 1159 of the Companies Act 2006.

 

"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).

 

"Termination Date" means 17 March 2016.

 

"Transfer Certificate" means a certificate substantially in the form set out in Schedule 6 (Form of Transfer Certificate) or any other form agreed between the Lender and the Borrower.

 

"Transfer Date" means, in relation to a transfer, the Transfer Date specified in the Transfer Certificate.

 

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

 

"US Credit Agreement" means the $14,000,000 credit agreement dated on or around the date of this Agreement between the Parent and JP Morgan Chase Bank, N.A.

  

- 6 -

  

"US Guarantee" means the US guarantee dated on or around the date of this Agreement granted by the Parent in favour of the Lender pursuant to which the Parent guarantees the obligations of the Borrower under this Agreement to the Lender.

 

"Utilisation" means a utilisation of the Facility.

 

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

 

"Utilisation Request" means a notice substantially in the form set out in Part A of Schedule 2 (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

	
  

	
1.2.1

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

 

	
  

	
(a)

	
the "Borrower", the "Lender" or any "Party" shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

 

	
  

	
(b)

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

 

	
  

	
(c)

	
a "Finance Document" or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended, replaced or restated;

 

	
  

	
(d)

	
"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;

 

	
  

	
(e)

	
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);

 

	
  

	
(f)

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

 

	
  

	
(g)

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

 

	
  

	
(h)

	
a time of day is a reference to London time.

 

	
  

	
1.2.2

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

 

	
  

	
1.2.3

	
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.

 

	
  

	
1.2.4

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

 

  

- 7 -

  

	
1.3

	
Currency Symbols and Definitions

"£" and "sterling" denote the lawful currency of the United Kingdom. “$” and “dollars” denote the lawful currency of the United States of America.  Where a sum is stated to be in dollars and such sum is in a currency other than dollars, such sum shall be converted into dollars at the Lender’s spot rate of exchange for the purchase of dollars with sterling in the London foreign exchange market at or about 11:00 a.m. on the day of conversion.

 

	
1.4

	
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 enjoy the benefit of any term of this Agreement.

 

	
2.

	
THE FACILITY

 

Subject to the terms of this Agreement, the Lender makes available to the Borrower a sterling term loan facility in an aggregate amount of £8,000,000.

 

	
3.

	
PURPOSE

 

	
3.1

	
Purpose

The Borrower shall apply all amounts borrowed by it under the Facility towards the repayment of the Borrower's indebtedness to Lloyds TSB Bank plc and Barclays Private Equity.

 

	
3.2

	
Monitoring

The Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

 

	
4.

	
CONDITIONS OF UTILISATION

 

	
4.1

	
Initial conditions precedent

The Borrower may not deliver a Utilisation Request unless the Lender has received all of the documents and other evidence listed in Schedule 1 (Conditions precedent) in form and substance satisfactory to the Lender.  The Lender shall notify the Borrower promptly upon being so satisfied.

 

	
4.2

	
Further conditions precedent

The Lender will only be obliged to make the Loan available to the Borrower if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

	
  

	
4.2.1

	
no Default is continuing or would result from the proposed Loan; and

 

	
  

	
4.2.2

	
the Repeating Representations to be made by the Borrower are true in all material respects.

 

	
5.

	
UTILISATION

 

	
5.1

	
Delivery of a Utilisation Request

The Borrower may utilise the Facility by delivery to the Lender of a duly completed Utilisation Request not later than 11am on the Utilisation Date.

 

	
5.2

	
Completion of a Utilisation Request

	
  

	
5.2.1

	
Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

 

	
  

	
(a)

	
the proposed Utilisation Date is a Business Day within the Availability Period;

 

  

- 8 -

  

	
  

	
(b)

	
the Utilisation is for a Loan of £8,000,000;

 

	
  

	
(c)

	
the proposed Interest Period complies with Clause 9 (Interest Periods); and

 

	
  

	
(i)

	
it specifies the account and bank which must be in the United Kingdom to which the proceeds of the Utilisation are to be credited.

 

	
  

	
5.2.2

	
Only one Loan may be requested in each Utilisation Request.

 

	
5.3

	
Availability of Loan

If the conditions set out in this Agreement have been met, the Lender shall make the Loan available by the Utilisation Date through its Facility Office.

 

	
5.4

	
Cancellation of Facility

The Facility which, at that time, is unutilised shall be immediately cancelled at the end of the Availability Period.

 

	
6.

	
REPAYMENT

 

	
6.1

	
Repayment of Loan

	
  

	
6.1.1

	
The Borrower shall repay the Loan made to it in instalments by repaying on each Repayment Date an amount which reduces the amount of the outstanding Loan by an amount equal to one sixtieth  (1/60th) of the Loan borrowed by the Borrower as at close of business in London on the last day of the Availability Period.

 

	
  

	
6.1.2

	
The Borrower may not reborrow any part of the Facility which is repaid.

 

	
7.

	
PREPAYMENT AND CANCELLATION

 

	
7.1

	
Illegality

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

 

	
  

	
7.1.1

	
the Lender shall promptly notify the Borrower upon becoming aware of that event whereupon the Facility will be immediately cancelled; and

 

	
  

	
7.1.2

	
the Borrower shall repay the Loan made to the Borrower on the last day of the Interest Period for the Loan occurring after the Lender has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Borrower (being no later than the last day of any applicable grace period permitted by law).

 

	
7.2

	
Change of control

	
  

	
7.2.1

	
If the Parent ceases to control the Borrower:

 

	
  

	
(a)

	
the Borrower shall promptly notify the Lender upon becoming aware of that event;

 

	
  

	
(b)

	
the Lender shall not be obliged to fund a Utilisation; and

 

	
  

	
(c)

	
the Lender may, by not less than 30 days' notice to the Borrower, cancel the Facility and declare the outstanding Loan, together with accrued interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Facility will be cancelled and all such outstanding amounts will become immediately due and payable.

 

  

- 9 -

  

	
  

	
7.2.2

	
For the purpose of sub-clause 7.2.1 above "control" means:

 

	
  

	
(a)

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

 

	
  

	
(i)

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

 

	
  

	
(ii)

	
appoint or remove all, or the majority, of the directors or other equivalent officers of the Borrower; or

 

	
  

	
(iii)

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

 

	
  

	
(b)

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

 

	
7.3

	
Voluntary cancellation

The Borrower may, if it gives the Lender not less than 5 Business Days' (or such shorter period as the Lender may agree) prior notice, cancel the whole or any part (being a minimum amount of £50,000) of the Available Facility.

 

	
7.4

	
Voluntary prepayment of Loan

	
  

	
7.4.1

	
The Borrower may, if it gives the Lender not less than 5 Business Days' (or such shorter period as the Lender may agree) prior notice, prepay the whole or any part of the Loan (but, if in part, being an amount that reduces the amount of the Loan by a minimum amount of £50,000).

 

	
  

	
7.4.2

	
The Loan may only be prepaid after the last day of the Availability Period (or, if earlier, the day on which the Available Facility is zero).

 

	
  

	
7.4.3

	
Any prepayment under this Clause 7.4 shall satisfy the obligations under Clause 6.1 (Repayment of Loan) in inverse chronological order.

 

	
7.5

	
Restrictions

	
  

	
7.5.1

	
Any notice of cancellation or prepayment given by any Party under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

 

	
  

	
7.5.2

	
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.

 

	
  

	
7.5.3

	
The Borrower may not reborrow any part of the Facility which is prepaid.

 

	
  

	
7.5.4

	
The Borrower shall not repay or prepay all or any part of the Loan or cancel all or any part of the Available Facility except at the times and in the manner expressly provided for in this Agreement.

 

	
  

	
7.5.5

	
No amount of the Facility cancelled under this Agreement may be subsequently reinstated.

 

  

- 10 -

  

	
  

	
7.5.6

	
If all or part of the Loan under the Facility is repaid or prepaid and is not available for redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of the Facility (equal to the amount of the Loan which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment.

 

	
8.

	
INTEREST

 

	
8.1

	
Calculation of interest

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

 

	
  

	
8.1.1

	
Margin;

 

	
  

	
8.1.2

	
LIBOR; and

 

	
  

	
8.1.3

	
Mandatory Cost, if any.

 

	
8.2

	
Adjustment of Margin

	
  

	
8.2.1

	
Provided that:

 

	
  

	
(a)

	
no Event of Default has occurred; and

 

	
  

	
(b)

	
the most recent accounts delivered to the Lender show that the Leverage Ratio for the relevant period is within a range set out below,

 

the Margin in respect of the Loan shall vary as set out below, once every fiscal quarter:

 

	
Leverage Ratio

	
Margin (% per annum):

	
Less than or equal to 1.5:1

	
2%

	
Greater than 1.5:1 but less than or equal to 2.5:1

	
2.80%

	
Greater than 2.5:1

	
3.75%

 

	
  

	
8.2.2

	
For the purposes of this Clause 8.2.2 "Leverage Ratio" has the meaning given to it in the US Credit Agreement.

 

	
  

	
8.2.3

	
(i)

(ii)

	
Any change in the Margin under Clause 8.2.1 above will take effect 5 Business Days after the Lender receives the most recent financial statements.

   

For so long as:

	
  

	
(i)

	
the Borrower is in default of its obligation to provide its financial statements; or

 

	
  

	
(ii)

	
an Event of Default is continuing

 

the Margin for the Loan (if it is not already) will be the highest rate applicable at such time to the Loan as set out above.

 

8.3           Payment of interest

On the last day of each Interest Period the Borrower shall pay accrued interest on the Loan to which that Interest Period relates.

 

  

- 11 -

  

 

	
8.4

	
Default interest

	
  

	
8.4.1

	
If the Borrower fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to sub-clause 8.4.2 below is three per cent. higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Lender (acting reasonably).  Any interest accruing under this Clause 8.4 shall be immediately payable by the Borrower on demand by the Lender.

 

	
  

	
8.4.2

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

 

	
  

	
(a)

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

 

	
  

	
(b)

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

 

	
  

	
8.4.3

	
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.

 

	
8.5

	
Notification of rates of interest

The Lender shall promptly notify the Borrower of the determination of a rate of interest under this Agreement.

 

	
9.

	
INTEREST PERIODS

 

	
9.1

	
Selection of Interest Periods

	
  

	
9.1.1

	
Subject to this Clause 9, each Interest Period shall be one Month or any other period agreed between the Borrower and the Lender.

 

	
  

	
9.1.2

	
An Interest Period for the Loan shall not extend beyond the Termination Date.

 

	
  

	
9.1.3

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

 

	
9.2

	
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).

 

10.           Changes to the calculation of interest

 

	
10.1

	
Market disruption

	
  

	
10.1.1

	
If a Market Disruption Event occurs in relation to the Loan for any Interest Period, then the rate of interest on the Loan for the Interest Period shall be the percentage rate per annum which is the sum of:

 

	
  

	
(a)

	
the Margin;

  

- 12 -

  

 

	
  

	
(b)

	
the rate notified to the Borrower by the 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 the Lender of funding the Loan from whatever source it may reasonably select; and

 

	
  

	
(c)

	
the Mandatory Cost, if any.

 

	
  

	
10.1.2

	
In this Agreement, "Market Disruption Event" means before close of business in London on the Quotation Day for the relevant Interest Period, the Lender determines that the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR.

 

	
10.2

	
Alternative basis of interest or funding

	
  

	
10.2.1

	
If a Market Disruption Event occurs and the Lender or the Borrower so requires, the Lender and the Borrower 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.

 

	
  

	
10.2.2

	
Any alternative basis agreed pursuant to sub-clause 10.2.1 above shall, with the prior consent of the Lender and the Borrower be binding on all Parties.

 

	
10.3

	
Break Costs

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

 

	
11.

	
TAX GROSS UP  AND INDEMNITIES

 

	
11.1

	
Definitions

	
  

	
11.1.1

	
In this Agreement:

 

"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 the Borrower to the Lender under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity).

 

	
  

	
11.1.2

	
Unless a contrary indication appears, in this Clause 11 a reference to "determines" or "determined" means a determination made in the absolute discretion of the person making the determination.

 

	
11.2

	
Tax gross-up

 

	
  

	
11.2.1

	
The Borrower shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law.

 

	
  

	
11.2.2

	
The Borrower shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Lender accordingly.

 

	
  

	
11.2.3

	
If a Tax Deduction is required by law to be made by the Borrower, the amount of the payment due from the Borrower 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.

  

- 13 -

  

 

	
  

	
11.2.4

	
If the Borrower is required to make a Tax Deduction, the Borrower 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.

 

	
  

	
11.2.5

	
Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrower shall deliver to the Lender a statement under section 975 of the ITA or other evidence reasonably satisfactory to the Lender that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

	
11.3

	
Tax indemnity

	
  

	
11.3.1

	
The Borrower shall (within three Business Days of demand by the Lender) pay to the Lender an amount equal to the loss, liability or cost which the Lender determines will be or has been (directly or indirectly) suffered for or on account of Tax by the Lender in respect of a Finance Document.

 

	
  

	
11.3.2

	
Sub-clause 11.3.1 above shall not apply:

 

	
  

	
(a)

	
with respect to any Tax assessed on the Lender:

 

	
  

	
(i)

	
under the law of the jurisdiction in which the Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which the Lender is treated as resident for tax purposes; or

 

	
  

	
(ii)

	
under the law of the jurisdiction in which the Lender'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 the Lender; or

 

	
  

	
(b)

	
to the extent a loss, liability or cost is compensated for by an increased payment under Clause 11.2 (Tax gross-up).

 

	
  

	
11.3.3

	
If the Lender makes, or intends to make a claim under sub-clause 11.3.1 above, the Lender shall promptly notify the Borrower of the event which will give, or has given, rise to the claim.

	
11.4

	
Stamp taxes

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

 

	
11.5

	
Value added tax

	
  

	
11.5.1

	
All amounts set out, or expressed in a Finance Document to be payable by the Borrower to the Lender which (in whole or in part) constitute the consideration for a supply or supplies for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such supply or supplies, and accordingly, subject to sub-clause 11.5.2 below, if VAT is or becomes chargeable on any supply made by the Lender to the Borrower under a Finance Document, the Borrower shall pay to the Lender (in addition to and at the same time as paying the consideration for such supply) an amount equal to the amount of such VAT (and the Lender shall promptly provide an appropriate VAT invoice to the Borrower).

  

- 14 -

  

 

	
  

	
11.5.2

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

 

	
11.6

	
Tax Credit

If the Borrower makes a Tax Payment and the Lender determines that:

 

	
  

	
11.6.1

	
a Tax Credit is attributable to either an increased payment of which that Tax Payment forms part, or to that Tax Payment; and

 

	
  

	
11.6.2

	
the Lender has obtained, utilised and retained that Tax Credit,

 

the Lender shall pay an amount to the Borrower which the Lender 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 Borrower.

 

	
12.

	
INCREASED COSTS

 

	
12.1

	
Increased costs

	
  

	
12.1.1

	
Subject to Clause 12.3 (Exceptions) the Borrower shall, within three Business Days of a demand by the Lender, pay for the account of the Lender the amount of any Increased Costs incurred by the Lender or any of its Affiliates as a result of (a) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (b) compliance with any law or regulation made after the date of this Agreement.

 

	
  

	
12.1.2

	
In this Agreement "Increased Costs" means:

 

	
  

	
(a)

	
a reduction in the rate of return from the Facility or on the Lender's (or its Affiliate's) overall capital;

 

	
  

	
(b)

	
an additional or increased cost; or

 

	
  

	
(c)

	
a reduction of any amount due and payable under any Finance Document,

 

	
  

	
which is incurred or suffered by the Lender or any of its Affiliates to the extent that it is attributable to the Lender having entered into a commitment or funding or performing its obligations under any Finance Document.

    

	
12.2

	
Increased cost claims

If the Lender intends to make a claim pursuant to Clause 12.1 (Increased costs), the Lender shall promptly notify the Borrower.

 

	
12.3

	
Exceptions

	
  

	
12.3.1

	
Clause 12.1 (Increased costs) does not apply to the extent any Increased Cost is:

 

	
  

	
(a)

	
attributable to a Tax Deduction required by law to be made by the Borrower;

  

- 15 -

  

 

	
  

	
(b)

	
compensated for by Clause 11.3 (Tax indemnity) (or would have been compensated for under Clause 11.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in sub-clause 11.3.2 of Clause 11.3 (Tax indemnity) applied);

 

	
  

	
(c)

	
compensated for by the payment of the Mandatory Cost; or

 

	
  

	
(d)

	
attributable to the wilful breach by the Lender or its Affiliates of any law or regulation.

 

	
  

	
12.3.2

	
In this Clause 12.3, a reference to a "Tax Deduction" has the same meaning given to the term in Clause 11.1 (Definitions).

 

	
13.

	
OTHER INDEMNITIES

 

	
13.1

	
Currency indemnity

	
  

	
13.1.1

	
If any sum due from the Borrower 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:

 

	
  

	
(a)

	
making or filing a claim or proof against the Borrower;

 

	
  

	
(b)

	
obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

 

the Borrower shall as an independent obligation, within three Business Days of demand, indemnify the Lender against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (i) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (ii) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

	
  

	
13.1.2

	
The Borrower 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.

	
13.2

	
Other indemnities

 

	
  

	
13.2.1

	
The Borrower shall, within three Business Days of demand, indemnify the Lender against any cost, loss or liability incurred by the Lender as a result of:

 

	
  

	
(a)

	
the occurrence of any Event of Default;

 

	
  

	
(b)

	
a failure by the Borrower to pay any amount due under a Finance Document on its due date;

 

	
  

	
(c)

	
funding, or making arrangements to fund, the Loan requested by the 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 the Lender); or

 

	
  

	
(d)

	
the Loan (or part of the Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower.

  

- 16 -

  

 

	
  

	
13.2.2

	
The Borrower shall promptly indemnify the Lender against any cost, loss or liability incurred by the Lender (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.

 

	
14.

	
MITIGATION BY THE LENDER

 

	
14.1

	
Mitigation

	
  

	
14.1.1

	
The Lender shall, in consultation with the Borrower, 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 7.1 (Illegality), Clause 11 (Tax gross-up and indemnities), Clause 12 (Increased costs) or paragraph 3 of Schedule 3 (Mandatory Cost formulae) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

	
  

	
14.1.2

	
Sub-clause 14.1.1 above does not in any way limit the obligations of the Borrower under the Finance Documents.

 

	
14.2

	
Limitation of liability

	
  

	
14.2.1

	
The Borrower shall indemnify the Lender for all costs and expenses reasonably incurred by the Lender as a result of steps taken by it under Clause 14.1 (Mitigation).

 

	
  

	
14.2.2

	
The Lender is not obliged to take any steps under Clause 14.1 (Mitigation) if, in the opinion of the Lender (acting reasonably), to do so might be prejudicial to it.

 

	
15.

	
COSTS AND EXPENSES

 

	
15.1

	
Transaction expenses

The Borrower shall promptly on demand pay the Lender the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with the negotiation, preparation, printing and execution of:

 

	
  

	
15.1.1

	
this Agreement and any other documents referred to in this Agreement; and

 

	
  

	
15.1.2

	
any other Finance Documents executed after the date of this Agreement.

 

	
15.2

	
Amendment costs

If:

	
  

	
15.2.1

	
the Borrower requests an amendment, waiver or consent; or

 

	
  

	
15.2.2

	
an amendment is required pursuant to Clause 23.8 (Change of currency),

 

the Borrower shall, within three Business Days of demand, reimburse the Lender for the amount of all costs and expenses (including, but not limited to, legal fees) reasonably incurred by the Lender in responding to, evaluating, negotiating or complying with that request or requirement.

 

	
15.3

	
Enforcement costs

The Borrower shall, within three Business Days of demand, pay to the Lender the amount of all costs and expenses (including, but not limited to, legal fees) incurred by the Lender in connection with the enforcement of, or the preservation of any rights under, any Finance Document.

  

- 17 -

  

 

	
16.

	
REPRESENTATIONS

 

The Borrower makes the representations and warranties set out in this Clause 16 to the Lender on the date of this Agreement.

 

	
16.1

	
Status

	
  

	
16.1.1

	
It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation.

 

	
  

	
16.1.2

	
It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted.

 

	
16.2

	
Binding obligations

The obligations expressed to be assumed by it in each Finance Document are, subject to any general principles of law as at the date of this Agreement limiting its obligations, legal, valid, binding and enforceable obligations.

 

	
16.3

	
Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with:

 

	
  

	
16.3.1

	
any law or regulation applicable to it;

 

	
  

	
16.3.2

	
its or any of its Subsidiaries' constitutional documents ; or

 

	
  

	
16.3.3

	
any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries' assets.

 

	
16.4

	
Power and authority

 

It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents.

 

	
16.5

	
Validity and admissibility in evidence

All Authorisations required or desirable:

 

	
  

	
16.5.1

	
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

 

	
  

	
16.5.2

	
to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation,

 

have been obtained or effected and are in full force and effect.

 

	
16.6

	
Governing law and enforcement

	
  

	
16.6.1

	
The choice of English law as the governing law of the Finance Documents will be recognised and enforced in its jurisdiction of incorporation.

 

	
  

	
16.6.2

	
Any judgment obtained in England in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation.

  

- 18 -

  

 

	
16.7

	
Deduction of Tax

It is not required to make any deduction for or on account of Tax from any payment it may make under any Finance Document.

 

	
16.8

	
No filing or stamp taxes

Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents.

 

	
16.9

	
No default

	
  

	
16.9.1

	
No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation.

 

	
  

	
16.9.2

	
No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries') assets are subject which might have a Material Adverse Effect.

 

	
16.10

	
No misleading information

	
  

	
16.10.1

	
Any factual information provided to the Lender prior to the date of this Agreement by any member of the Group 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.

 

	
  

	
16.10.2

	
All financial projections provided to the Lender prior to the date of this Agreement by any member of the Group have been prepared on the basis of recent historical information and on the basis of reasonable assumptions.

	
  

	
16.10.3

	
Nothing has occurred or been omitted from any factual information and no information has been given or withheld that results in the information provided to the Lender prior to the date of this Agreement being untrue or misleading in any material respect.

 

	
  

	
16.10.4

	
All written information (other than the information provided pursuant to sub-clauses 16.10.1 to 16.10.3 above) supplied by any member of the Group is true, complete and accurate in all material respects as at the date it was given and is not misleading in any respect.

 

	
16.11

	
Financial Statements

	
  

	
16.11.1

	
The Original Consolidated Financial Statements were prepared in accordance with GAAP consistently applied.

 

	
  

	
16.11.2

	
The Original Consolidated Financial Statements fairly represent the consolidated financial condition and operations of the Group during the relevant financial year.

 

	
  

	
16.11.3

	
There has been no material adverse change in the business or consolidated financial condition of the Group since 31 December 2009.

 

	
  

	
16.11.4

	
The financial statements and accounts most recently delivered under Clause 17.1 (Financial Statements) (i) were prepared in accordance with GAAP consistently applied and (ii) give a true and fair view of (if audited) or fairly present (if unaudited) the consolidated financial condition of the Group as at the end of the period to which they relate.

  

- 19 -

  

 

	
16.12

	
Pari passu ranking

Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

	
16.13

	
No proceedings pending or threatened

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries.

 

	
16.14

	
Environmental compliance

Each member of the Group has performed and observed in all material respects all Environmental Law, Environmental Permits and all other material covenants, conditions, restrictions or agreements directly or indirectly concerned with any contamination, pollution or waste or the release or discharge of any toxic or hazardous substance in connection with any real property which is or was at any time owned, leased or occupied by any member of the Group or on which any member of the Group has conducted any activity where failure to do so might reasonably be expected to have a Material Adverse Effect.

 

	
16.15

	
Environmental Claims

No Environmental Claim has been commenced or (to the best of its knowledge and belief) is threatened against any member of the Group where that claim would be reasonably likely, if determined against that member of the Group to have a Material Adverse Effect.

 

	
16.16

	
Taxation

	
  

	
16.16.1

	
It has duly and punctually paid and discharged all Taxes imposed upon it or its assets within the time period allowed without incurring penalties (except to the extent that (a) payment is being contested in good faith, (b) it has maintained adequate reserves for those Taxes and (c) payment can be lawfully withheld).

 

	
  

	
16.16.2

	
It is not materially overdue in the filing of any Tax returns.

 

	
  

	
16.16.3

	
No claims are being or are reasonably likely to be asserted against it with respect to Taxes.

 

	
16.17

	
No Immunity

In any proceedings taken in its jurisdiction of incorporation in relation to this Agreement, it will not be entitled to claim for itself or any of its assets immunity from suit, execution, attachment or other legal process.

 

	
16.18

	
Private and commercial acts

Its execution of the Finance Documents constitutes, and its exercise of its rights and performance of its obligations hereunder will constitute, private and commercial acts done and performed for private and commercial purposes.

 

	
16.19

	
Repetition

The Repeating Representations are deemed to be made by the Borrower (by reference to the facts and circumstances then existing) on the date of each Utilisation Request and the first day of each Interest Period except that the representation and warranty set out in sub-clause 16.11.4 of Clause 16.11 (Financial Statements) shall be deemed to be repeated on the date of delivery of such financial statements by reference to the facts and  circumstances existing on such date.

  

- 20 -

  

 

	
17.

	
INFORMATION UNDERTAKINGS

 

The undertakings in this Clause 17 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or at any time during the Availability Period.

 

	
17.1

	
  Financial Statements 

	
  

	
17.1.1

	
The Borrower shall comply with the provisions of Section 5.01 of the US Credit Agreement.

 

	
  

	
17.1.2

	
If requested by the Lender, the Borrower shall provide the Lender with such information required under Section 5.01 of the US Credit Agreement within the timescales detailed in Section 5.01 of the US Credit Agreement.

 

	
17.2

	
Information: miscellaneous

The Borrower shall supply to the Lender:

 

	
  

	
17.2.1

	
all documents dispatched by the Borrower to its shareholders (or any class of them) or its creditors generally at the same time as they are dispatched;

 

	
  

	
17.2.2

	
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

 

	
  

	
17.2.3

	
promptly, such further information regarding the financial condition, business and operations of the Borrower or any other member of the Group as the Lender may reasonably request.

 

	
17.3

	
Notification of default

	
  

	
17.3.1

	
The Borrower shall notify the Lender of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence.

	
  

	
17.3.2

	
Promptly upon a request by the Lender, the Borrower shall supply to the Lender 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).

 

	
17.4

	
"Know your customer" checks

If:

 

	
  

	
17.4.1

	
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;

 

	
  

	
17.4.2

	
any change in the status of the Borrower or the composition of the shareholders of the Borrower after the date of this Agreement; or

 

	
  

	
17.4.3

	
a proposed assignment or transfer by the Lender of any of its rights and obligations under this Agreement,

 

obliges the Lender (or, in the case of sub-clause 17.4.3 above, any prospective new Lender) to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the request of the Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Lender (for itself or, in the case of the event described in sub-clause 17.4.3 above, on behalf of any prospective new Lender) in order for the Lender or, in the case of the event described in sub-clause 17.4.3 above, any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

  

- 21 -

  

 

	
18.

	
GENERAL UNDERTAKINGS

 

The undertakings in this Clause 18 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or at any time during the Availability Period.

 

	
18.1

	
Authorisations

The Borrower shall promptly:

 

	
  

	
18.1.1

	
obtain, comply with and do all that is necessary to maintain in full force and effect; and

 

	
  

	
18.1.2

	
supply certified copies to the Lender of,

 

any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document.

 

	
18.2

	
Compliance with laws

The Borrower shall comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents.

 

	
18.3

	
Negative pledge

In this Clause 18.3, "Quasi-Security" means an arrangement or transaction described in sub-clause 18.3.2.

 

	 	
18.3.1

	
The Borrower shall not (and shall ensure that no other member of the Borrower Group will) create or permit to subsist any Security over any of its assets.

 

	
  

	
18.3.2

	
The Borrower shall not (and shall ensure that no other member of the Borrower 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 the Borrower or any other member of the Borrower 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.

  

- 22 -

  

 

	
  

	
18.3.3

	
Sub-clauses 18.3.1 and 18.3.2 above do not apply to any Security or (as the case may be) Quasi-Security, listed below:

 

	
  

	
(a)

	
any netting or set-off arrangement entered into by any member of the Borrower Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

 

	
  

	
(b)

	
any payment or close-out netting or set-off arrangement pursuant to any hedging transaction entered into by a member of the Borrower Group for the purpose of:

 

	
  

	
(i)

	
hedging any risk to which any member of the Borrower Group is exposed in its ordinary course of trading; or

 

	
  

	
(ii)

	
its interest rate or currency management operations which are carried out in the ordinary course of business and for non-speculative purposes only,

 

excluding, in each case, any Security or Quasi-Security under a credit support arrangement in relation to a hedging transaction;

 

	
  

	
(c)

	
any lien arising by operation of law and in the ordinary course of trading;

 

	
  

	
(d)

	
any Security or Quasi-Security over or affecting any asset acquired by a member of the Borrower Group after the date of this Agreement if:

 

	
  

	
(i)

	
the Security or Quasi-Security was not created in contemplation of the acquisition of that asset by a member of the Borrower Group;

 

	
  

	
(ii)

	
the principal amount secured has not been increased in contemplation of, or since the acquisition of that asset by a member of the Borrower Group; and

 

	
  

	
(iii)

	
the Security or Quasi-Security is removed or discharged within three months of the date of acquisition of such asset;

 

	 	
(e)

	
any Security or Quasi-Security over or affecting any asset of any company which becomes a member of the Borrower Group after the date of this Agreement, where the Security or Quasi-Security is created prior to the date on which that company becomes a member of the Borrower Group, if:

 

	
  

	
(i)

	
the Security or Quasi-Security was not created in contemplation of the acquisition of that company;

 

	
  

	
(ii)

	
the principal amount secured has not increased in contemplation of or since the acquisition of that company; and

 

	
  

	
(iii)

	
the Security or Quasi-Security is removed or discharged within three months of that company becoming a member of the Borrower Group

 

	
  

	
(f)

	
any Security or Quasi-Security entered into pursuant to any Finance Document;

 

	
  

	
(g)

	
any Security or Quasi-Security arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to a member of the Borrower Group in the ordinary course of trading and on the supplier's standard or usual terms and not arising as a result of any default or omission by any member of the Borrower Group;

  

- 23 -

  

 

	
  

	
(h)

	
any Security or Quasi-Security securing indebtedness the principal amount of which (when aggregated with the principal amount of any other indebtedness which has the benefit of Security or Quasi-Security given by any member of the Borrower Group other than any permitted under paragraphs (a) to (g) above) does not exceed £100,000 (or its equivalent in another currency or currencies).

 

	
18.4

	
Disposals

	
  

	
18.4.1

	
The Borrower shall not (and shall ensure that no other member of the Borrower Group will), enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

 

	
  

	
18.4.2

	
Sub-clause 18.4.1 above does not apply to any sale, lease, transfer or other disposal:

 

	
  

	
(a)

	
of stock in trade made in the ordinary course of trading and on arm's length terms of the disposing entity;

 

	
  

	
(b)

	
of assets in exchange for other assets comparable or superior as to type, value and quality; or

 

	
  

	
(c)

	
of obsolete vehicles, plant or equipment..

 

	
18.5

	
Merger

The Borrower shall not (and shall ensure that no other member of Borrower Group will) enter into any amalgamation, demerger, merger or corporate reconstruction.

 

	
18.6

	
Change of business

The Borrower shall procure that no substantial change is made to the general nature of the business of the Borrower or the Borrower Group from that carried on at the date of this Agreement.

 

	
18.7

	
Insurance

The Borrower shall (and shall ensure that each other member of the Borrower Group will) maintain insurances on and in relation to its business and assets with reputable underwriters or insurance companies against those risks and to the extent as is usual for companies carrying on the same or substantially similar business.

 

	
18.8

	
Environmental Compliance

The Borrower shall (and shall ensure that each other member of Borrower Group will) comply in all material respects with all Environmental Law and obtain and maintain any Environmental Permits and take all reasonable steps in anticipation of known or expected future changes to or obligations under the same where failure to do so might reasonably be expected to have a Material Adverse Effect.

 

	
18.9

	
Environmental Claims

The Borrower shall inform the Lender in writing as soon as reasonably practicable upon becoming aware of the same:

 

	
  

	
18.9.1

	
if any Environmental Claim has been commenced or (to the best of its knowledge and belief) is threatened against any member of the Borrower Group, or

  

- 24 -

  

 

	
  

	
18.9.2

	
of any facts or circumstances which will or are reasonably likely to result in any Environmental Claim being commenced or threatened against any member of the Borrower Group,

 

where the claim would be reasonably likely, if determined against that member of the Borrower Group, to have a Material Adverse Effect.

 

	
18.10

	
Taxation

The Borrower shall (and shall ensure that each other member of the Borrower Group will) duly and punctually pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties (except to the extent that (a) such payment is being contested in good faith, (b) adequate reserves are being maintained for those Taxes and (c) such payment can be lawfully withheld).

 

	
18.11

	
Acquisitions

The Borrower shall not (and shall ensure that no other member of the Borrower Group will) acquire any company, business, assets or undertaking.

 

	
18.12

	
Loans and Guarantees

The Borrower shall not (and shall ensure that no other member of the Borrower Group will) make any loans, grant any credit (save in the ordinary course of business and to other members of the Borrower Group) or give any guarantee or indemnity (except as required under any of the Finance Documents) to or for the benefit of any person or otherwise voluntarily assume any liability, whether actual or contingent, in respect of any obligation of any person.

 

	
18.13

	
Dividends

The Borrower shall not (and shall ensure that no other member of the Borrower Group will) pay, make or declare any dividend or other distribution (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital) in respect of any financial year of that member of the Borrower Group, other than dividends or other distributions which are made to another member of the Borrower Group.

 

	
18.14

	
Restriction on Financial Indebtedness

	
  

	
(a)

	
Except as permitted under paragraph (b) below, the Borrower shall not, and shall not permit any of its Subsidiaries, to incur or allow to remain outstanding any Financial Indebtedness other than:

 

	
  

	
(b)

	
(i) Financial Indebtedness incurred to another member of the Group and (ii) Permitted Financial Indebtedness.

 

	
18.15

	
Material operating companies

The Borrower shall procure that any other member of the Group which is a material operating company shall, as soon as possible after becoming a material operating company, grant a guarantee in favour of the Lender and that the shareholders of that material operating company will grant a share charge over 100% of the shares in such material operating company. 

 

	
18.16

	
Conditions Subsequent

The Borrower shall procure that within 7 days of the date of this Agreement it shall provide the Lender with:

 

(a)           a written resolution of the shareholders of the Borrower approving the amended Articles of Association of the Borrower;

 

(b)             in which the directors of the Borrower circulate the shareholders resolution to amend the Articles of Association and note that the shareholders resolution to amend the Articles of Association was approved.

  

- 25 -

  

 

	
19.

	
EVENTS OF DEFAULT

 

Each of the events or circumstances set out in Clause 19 is an Event of Default (save for Clause 21.13 (Acceleration)).

 

	
19.1

	
Non-payment

The Borrower 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:

	
  

	
19.1.1

	
its failure to pay is caused by:

 

	
  

	
(a)

	
administrative or technical error; or

 

	
  

	
(b)

	
a Disruption Event; and

 

	
  

	
19.1.2

	
payment is made within 2 Business Days of its due date.

 

	
19.2

	
Other obligations

	
  

	
19.2.1

	
The Borrower does not comply with any provision of the Finance Documents (other than those referred to in Clause 19.1 (Non-payment)).

 

	
  

	
19.2.2

	
No Event of Default under sub-clause 19.2.1 above will occur if the failure to comply is capable of remedy and is remedied within 5 Business Days or the earlier of (A) of the Lender giving notice to the Borrower and (B) the Borrower becoming aware of the failure to comply.

 

	
19.3

	
Misrepresentation

Any representation or statement made or deemed to be made by the Borrower in the Finance Documents or any other document delivered by or on behalf of the Borrower under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made.

 

	
19.4

	
Cross default

	
  

	
19.4.1

	
Any Financial Indebtedness of any member of the Borrower Group is not paid when due nor within any originally applicable grace period.

 

	
  

	
19.4.2

	
Any Financial Indebtedness of any member of the Borrower Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

 

	
  

	
19.4.3

	
Any creditor of any member of the Borrower Group becomes entitled to declare any Financial Indebtedness of any member of the Borrower Group due and payable prior to its specified maturity as a result of an event of default (however described).

 

	
  

	
19.4.4

	
No Event of Default will occur under this Clause 19.4 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within sub-clauses 19.4.1 to 19.4.3 above is less than $250,000 (or its equivalent in another currency or currencies).

  

- 26 -

  

 

	
19.5

	
Credit Agreement Default

An Event of Default (as defined in the US Credit Agreement) occurs under the US Credit Agreement or none of the provisions of the US Credit Agreement are in force.

 

	
19.6

	
Insolvency

	
  

	
19.6.1

	
A member of the Borrower Group is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

 

	
  

	
19.6.2

	
The value of the assets of any member of the Borrower Group is less than its liabilities (taking into account contingent and prospective liabilities).

 

	
  

	
19.6.3

	
A moratorium is declared in respect of any indebtedness of any member of the Borrower Group.

 

	
19.7

	
Insolvency proceedings

Any corporate action, legal proceedings or other procedure or step is taken in relation to:

 

	
  

	
19.7.1

	
the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any member of the Borrower Group other than a solvent liquidation or reorganisation of any member of the Borrower Group other than the Borrower;

 

	
  

	
19.7.2

	
a composition, compromise, assignment or arrangement with any creditor of any member of the Borrower Group;

 

	
  

	
19.7.3

	
the appointment of a liquidator (other than in respect of a solvent liquidation of a member of the Borrower Group other than the Borrower), receiver, administrative receiver, administrator, compulsory  manager or other similar officer in respect of any member of the Borrower Group or any of its assets; or

 

	
  

	
19.7.4

	
enforcement of any Security over any assets of any member of the Borrower Group, 

 

or any analogous procedure or step is taken in any jurisdiction.

 

This Clause 19.7 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within fourteen days of commencement.

 

	
19.8

	
Creditors' process

Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of a member of the Borrower Group having an aggregate value of £50,000 and is not discharged within 21 days.

 

	
19.9

	
Unlawfulness

It is or becomes unlawful for the Borrower to perform any of its obligations under the Finance Documents.

 

	
19.10

	
Repudiation

The Borrower repudiates a Finance Document or evidences an intention to repudiate a Finance Document.

  

- 27 -

  

	
19.11

	
Governmental Intervention

By or under the authority of any government:

 

	
  

	
19.11.1

	
the management of any member of the Borrower Group is wholly or partially displaced or the authority of any member of the Borrower Group in the conduct of its business is wholly or partially curtailed; or

 

	
  

	
19.11.2

	
all or a majority of the issued shares of any member of Borrower Group or the whole or any part (the book value of which is 10 per cent. or more of the book value of the whole) of its revenues or assets is seized, nationalised, expropriated or compulsorily acquired.

 

	
19.12

	
Material adverse change

Any event or circumstance occurs which the Lender reasonably believes might have a Material Adverse Effect.

 

	
19.13

	
Acceleration

On and at any time after the occurrence of an Event of Default the Lender may, by notice to the Borrower:

 

	
  

	
19.13.1

	
cancel the Facility whereupon the Facility shall immediately be cancelled;

 

	
  

	
19.13.2

	
declare that all or part of the Loan, 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; and/or

 

	
  

	
19.13.3

	
declare that all or part of the Loan be payable on demand, whereupon they shall immediately become payable on demand by the Lender.

 

	
20.

	
CHANGES TO THE LENDER

 

	
20.1

	
Assignments and transfers by the Lender

The Lender may assign any of its rights or transfer by novation any of its rights and obligations to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the "New Lender").

 

	
20.2

	
Conditions of assignment or transfer

	
  

	
20.2.1

	
An assignment will only be effective on:

 

	
  

	
(a)

	
receipt by the Borrower of written confirmation from the New Lender (in form and substance satisfactory to the Borrower (acting reasonably)) that the New Lender will assume the same obligations to the other Parties as it would have been under if it was the Lender; and

 

	
  

	
(b)

	
performance by the Lender of all "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 Lender shall promptly notify to the New Lender.

 

	
  

	
20.2.2

	
A transfer will only be effective if the procedure set out in Clause 20.4 (Procedure for transfer) is complied with.

  

- 28 -

  

 

	
  

	
20.2.3

	
If:

 

	
  

	
(a)

	
the Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

 

	
  

	
(b)

	
as a result of circumstances existing at the date the assignment, transfer or change occurs, the Borrower would be obliged to make a payment to the New Lender (or the Lender acting through its new Facility Office) under Clause 11 (Tax gross-up and indemnities) or Clause 12 (Increased costs),

 

then the New Lender (or the Lender acting through its new Facility Office) is only entitled to receive payment under those Clauses to the same extent as the Lender (or the Lender acting through its previous Facility Office) would have been if the assignment, transfer or change had not occurred.

 

	
20.3

	
Limitation of responsibility of the Lender

	
  

	
20.3.1

	
Unless expressly agreed to the contrary, the Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

 

	
  

	
(a)

	
the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

 

	
  

	
(b)

	
the financial condition of the Borrower;

 

	
  

	
(c)

	
the performance and observance by the Borrower of its obligations under the Finance Documents or any other documents; or

 

	
  

	
(d)

	
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.

 

	 	
20.3.2

	
Each New Lender confirms to the Lender that it:

 

	
  

	
(a)

	
has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of the Borrower and its related entities in connection with this Agreement and has not relied exclusively on any information provided to it by the Lender in connection with any Finance Document; and

 

	
  

	
(b)

	
will continue to make its own independent appraisal of the creditworthiness of the Borrower and its related entities whilst any amount is or may be outstanding under the Finance Documents or at any time during the Availability Period.

 

	
  

	
20.3.3

	
Nothing in any Finance Document obliges the Lender to:

 

	
  

	
(a)

	
accept a re-assignment or re-transfer from a New Lender of any of the rights and/or obligations assigned or transferred under this Clause 20; or

 

	
  

	
(b)

	
support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by the Borrower of its obligations under the Finance Documents or otherwise.

  

- 29 -

  

 

	
20.4

	
Procedure for transfer

	
  

	
20.4.1

	
Subject to the conditions set out in Clause 20.2 (Conditions of assignment or transfer) a transfer is effected in accordance with sub-clause 22.4.2 below when the Lender and the New Lender execute a Transfer Certificate.

 

	
  

	
20.4.2

	
On the Transfer Date:

 

	
  

	
(a)

	
to the extent that in the Transfer Certificate the Lender seeks to transfer by novation its rights and obligations under the Finance Documents the Borrower and the 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");

 

	
  

	
(b)

	
the Borrower 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 the Borrower and the New Lender have assumed and/or acquired the same in place of the Borrower and the Lender; and

 

	
  

	
(c)

	
the New Lender shall become a Party as a "Lender".

 

	
20.5

	
Security over Lender's rights

In addition to the other rights provided to the Lender under this Clause 20.5, the Lender may without consulting with or obtaining consent from the Borrower at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of the Lender including, without limitation:

 

	
  

	
20.5.1

	
any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

 

	
  

	
20.5.2

	
if the Lender 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 the Lender as Security for those obligations or securities,

 

except that no such charge, assignment or Security shall:

 

	
  

	
(a)

	
release the 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

 

	
  

	
(b)

	
require any payments to be made by the Borrower or grant to any person any more extensive rights than those required to be made or granted to the Lender under the Finance Documents.

 

	
21.

	
CHANGES TO THE BORROWER

 

The Borrower may not assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

  

- 30 -

  

 

	
22.

	
CONDUCT OF BUSINESS BY THE LENDER

 

No provision of this Agreement will:

 

	
  

	
22.1.1

	
interfere with the right of the Lender to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

	
  

	
22.1.2

	
oblige the Lender to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

 

	
  

	
22.1.3

	
oblige the Lender to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

 

	
23.

	
PAYMENT MECHANICS

 

	
23.1

	
Payments to the Lender

	
  

	
23.1.1

	
On each date on which the Borrower is required to make a payment under a Finance Document, the Borrower shall make the same available to the Lender for value on the due date at the time and in such funds specified by the Lender as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

	
  

	
23.1.2

	
Payment shall be made to such account in London with such bank as the Lender may notify to the Borrower by not less than five Business Days' notice.

 

	
23.2

	
Payments by the Lender

	
  

	
23.2.1

	
On each date on which the Lender is required to make a payment under a Finance Document, the Lender shall make the same available to the Borrower for value on the due date at the time and in such funds specified by the Lender as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

	
  

	
23.2.2

	
Payment shall be made to such account in London with such bank as the Borrower may notify to the Lender in the relevant Utilisation Request.

 

	 	 	
A payment will be deemed to have been made by the Lender on the date on which it was required to be made under this Agreement if the Lender has, on or before that date, taken steps to make that payment in accordance with the regulations or operating procedures of the clearing system used by the Lender in order to make the payment.

 

	
23.3

	
Distributions to the Borrower

The Lender may (with the consent of the Borrower or in accordance with Clause 24 (Set-off)) apply any amount received by it for the Borrower in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Borrower under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

	
23.4

	
Partial payments

	
  

	
23.4.1

	
If the Lender receives a payment that is insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, the Lender shall apply that payment towards the obligations of the Borrower under the Finance Documents in any order selected by the Lender.

 

	
  

	
23.4.2

	
Sub-clause 25.4.1 above will override any appropriation made by the Borrower.

  

- 31 -

  

 

	
23.5

	
No set-off by the Borrower

All payments to be made by the Borrower under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

	
23.6

	
Business Days

	
  

	
23.6.1

	
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).

 

	
  

	
23.6.2

	
During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

 

	
23.7

	
Currency of account

	
  

	
23.7.1

	
Subject to sub-clauses 23.7.2 and 23.7.3 below Sterling is the currency of account and payment for any sum from the Borrower under any Finance Document.

 

	
  

	
23.7.2

	
Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

 

	
  

	
23.7.3

	
Any amount expressed to be payable in a currency other than Sterling shall be paid in that other currency.

 

	
23.8

	
Change of currency

	
  

	
23.8.1

	
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:

 

	
  

	
(a)

	
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 Lender (after consultation with the Borrower); and

	
  

	
(b)

	
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 Lender (acting reasonably).

 

	
  

	
23.8.2

	
If a change in any currency of a country occurs, this Agreement will, to the extent the Lender (acting reasonably and after consultation with the Borrower) 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.

 

	
23.9

	
Disruption to Payment Systems etc.

If either the Lender determines (in its discretion) that a Disruption Event has occurred or the Lender is notified by the Borrower that a Disruption Event has occurred:

 

	
  

	
23.9.1

	
the Lender may, and shall if requested to do so by the Borrower, consult with the Borrower with a view to agreeing with the Borrower such changes to the operation or administration of the Facility as the Lender may deem necessary in the circumstances;

  

- 32 -

  

 

	
  

	
23.9.2

	
the Lender shall not be obliged to consult with the Borrower in relation to any changes mentioned in sub-clause 23.9.1 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;

 

	
  

	
23.9.3

	
any such changes agreed upon by the Lender and the Borrower 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 29 (Amendments and Waivers); and

 

	
  

	
23.9.4

	
the Lender 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 Lender) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 23.9.

 

	
24.

	
SET-OFF

 

The Lender may set off any matured obligation due from the Borrower under the Finance Documents (to the extent beneficially owned by the Lender) against any matured obligation owed by the Lender to the Borrower, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

 

	
25.

	
NOTICES

 

	
25.1

	
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.

 

	
25.2

	
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:

 

	
  

	
25.2.1

	
in the case of the Borrower, that identified with its name below; and

	
  

	
25.2.2

	
in the case of the Lender, that identified with its name below,

 

or any substitute address, fax number or department or officer as the Party may notify to the Lender (or the Lender may notify to the other Parties, if a change is made by the Lender) by not less than five Business Days' notice.

 

	
25.3

	
Delivery

	
  

	
25.3.1

	
Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

 

	
  

	
(a)

	
if by way of fax, when received in legible form; or

 

	
  

	
(b)

	
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,

  

- 33 -

  

 

and, if a particular department or officer is specified as part of its address details provided under Clause 25.2 (Addresses), if addressed to that department or officer.

 

	
  

	
25.3.2

	
Any communication or document to be made or delivered to the Lender will be effective only when actually received by the Lender and then only if it is expressly marked for the attention of the department or officer identified with the Lender's signature below (or any substitute department or officer as the Lender shall specify for this purpose).

 

	
25.4

	
English language

	
  

	
25.4.1

	
Any notice given under or in connection with any Finance Document must be in English.

 

	
  

	
25.4.2

	
All other documents provided under or in connection with any Finance Document must be:

 

	
  

	
(a)

	
in English; or

 

	
  

	
(b)

	
if not in English, and if so required by the Lender, 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.

 

	
26.

	
CALCULATIONS AND CERTIFICATES

 

	
26.1

	
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 the Lender are prima facie evidence of the matters to which they relate.

 

	
26.2

	
Certificates and Determinations

Any certification or determination by the Lender 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.

 

	
26.3

	
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.

 

	
27.

	
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.

 

	
28.

	
REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in exercising, on the part of the Lender, 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.

 

  

- 34 -

  

 

	
29.

	
AMENDMENTS AND WAIVERS

 

Any term of the Finance Documents may be amended or waived only with the consent of the Lender and the Borrower and any such amendment or waiver will be binding on all Parties.

 

	
30.

	
CONFIDENTIALITY

 

	
30.1

	
Confidential Information

The Lender agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 30.2 (Disclosure of Confidential Information) and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

	
30.2

	
Disclosure of Confidential Information

The Lender may disclose:

 

	
  

	
30.2.1

	
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 the Lender shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this sub-clause 30.2.1 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;

 

	
  

	
30.2.2

	
to any person:

 

	
  

	
(a)

	
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;

 

	
  

	
(b)

	
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 the Borrower and to any of that person's Affiliates, Related Funds, Representatives and professional advisers;

	
  

	
(c)

	
appointed by the Lender or by a person to whom paragraph  (a) or (b) of this sub-clause 30.2.2 applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;

 

	
  

	
(d)

	
who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (a) or (b) of this sub-clause 30.2.2;

 

	
  

	
(e)

	
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;

  

- 35 -

  

 

	
  

	
(f)

	
to whom or for those benefit the Lender charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 20.5 (Security over Lender's rights);

 

	
  

	
(g)

	
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;

 

	
  

	
(h)

	
who is a Party; or

 

	
  

	
(i)

	
with the consent of the Borrower;

 

in each case, such Confidential Information as the Lender shall consider appropriate if:

 

	
  

	
(i)

	
in relation to paragraphs (a), (b) and (c) of this sub-clause 30.2.2, 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;

 

	
  

	
(ii)

	
in relation to paragraph (d) of this sub-clause 30.2.2, 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;

 

	
  

	
(iii)

	
in relation to paragraphs (e), (f) and (g) of this sub-clause 30.2.2, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Lender, it is not practicable to so do in the circumstances;

 

	
  

	
30.2.3

	
to any person appointed by the Lender or by a person to whom paragraphs (a) and (b) of sub-clause 30.2.2 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 sub-clause 30.2.3 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 Borrower and the Lender.

 

	
30.3

	
Entire agreement

This Clause 30 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Lender under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

  

- 36 -

  

 

	
30.4

	
Notification of disclosure

The Lender agrees (to the extent permitted by law and regulation) to inform the Borrower:

 

	
  

	
30.4.1

	
of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (e) of sub-clause 30.2.2(e) 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

 

	
  

	
30.4.2

	
upon becoming aware that Confidential Information has been disclosed in breach of this Clause 30 (Confidentiality).

 

	
30.5

	
Continuing obligations

The obligations in this Clause 30 (Confidentiality) are continuing and, in particular, shall survive and remain binding on the Lender for a period of twelve months from the earlier of:

 

	
  

	
30.5.1

	
the date on which all amounts payable by the Borrower under or in connection with this Agreement have been paid in full and the Facility has been cancelled or otherwise ceases to be available; and

 

	
  

	
30.5.2

	
the date on which the Lender otherwise ceases to be a Lender.

 

	
31.

	
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.

 

	
32.

	
GOVERNING LAW

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

	
33.

	
ENFORCEMENT

 

	
33.1

	
Jurisdiction

	
  

	
33.1.1

	
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 the consequences of its nullity or any non-contractual obligation arising out of or in connection with this Agreement) (a "Dispute").

 

	
  

	
33.1.2

	
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.

 

	
  

	
33.1.3

	
This Clause 33.1 is for the benefit of the Lender only.  As a result, the Lender shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Lender may take concurrent proceedings in any number of jurisdictions.

 

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

 

  

- 37 -

  

SCHEDULE 1

Conditions precedent

 

Conditions Precedent to Initial Utilisation

 

	
1.

	
The Borrower

 

	
  

	
(a)

	
A copy of the constitutional documents of the Borrower.

 

	
  

	
(b)

	
A copy of a resolution of the board of directors of the Borrower:

 

	
  

	
(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; and

 

	
  

	
(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.

 

	
  

	
(c)

	
A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above.

 

	
  

	
(d)

	
A certificate of the Borrower (signed by a director) confirming that borrowing the Facility would not cause any borrowing or similar limit binding on the Borrower to be exceeded.

 

	
  

	
(e)

	
A certificate of the Borrower (signed by a director) confirming that the giving of the Guarantee would not cause any guaranteeing or similar limit binding on the Borrower to be exceeded.

 

	
  

	
(f)

	
A certificate of an authorised signatory of the Borrower certifying that each copy document relating to it specified in this Schedule 1 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

	
2.

	
The Guarantors

 

	
  

	
(a)

	
A copy of the constitutional documents of each Guarantor.

 

	
  

	
(b)

	
A copy of a resolution of the board of directors of each Guarantor:

 

	
  

	
(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; 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 Finance Documents to which it is a party.

 

  

- 38 -

  

 

	
  

	
(c)

 

(d)

	

A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above.

    

A written resolution of the shareholders of each Guarantor (other than the Borrower) approving its entry into and execution of the Guarantee.

 

	
  

	
(e)

	
A written resolution of the shareholders of Femcare-Nikomed Limited approving the amended Articles of Association of Femcare-Nikomed Limited.

 

	
  

	
(f)

	
A copy of minutes of a board meeting of the directors of Femcare-Nikomed Limited in which the directors of Femcare-Nikomed Limited circulate the shareholders resolution to amend the Articles of Association and note that the shareholders resolution to amend the Articles of Association was approved.

 

	
  

	
(g)

	
A certificate of each Guarantor (signed by a director) confirming that giving of the Guarantee would not cause any guaranteeing or similar limit binding on the relevant Guarantor to be exceeded.

 

	
  

	
(h)

	
A certificate of an authorised signatory of the each Guarantor certifying that each copy document relating to it specified in this Schedule 1 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

	
3.

	
Other documents and evidence

 

	
  

	
(a)

	
The Guarantee, the US Guarantee, each Share Charge, the US Credit Agreement and this Agreement executed by each party to it.

 

	
  

	
(b)

	
The Original Consolidated Financial Statements.

 

	
  

	
(c)

	
Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 15 (Costs and expenses) have been paid or will be paid by the first Utilisation Date.

 

	
  

	
(d)

	
Evidence that all of the conditions precedent to the US Credit Agreement have been satisfied.

 

	
  

	
(e)

	
Evidence that all Financial Indebtedness, Security and guarantees (other than those arising under any Finance Document or the US Credit Agreement) have been discharged in full.

 

	
  

	
(f)

	
A funds flow statement.

 

	
  

	
(g)

	
Evidence that the Borrower has entered into Hedging Agreements which effectively limit the amount of interest to be paid by the Borrower on 100% of the Loan.

 

	
  

	
(h)

	
The Utilisation Request duly executed by the Borrower.

 

	
  

	
(i)

	
A copy of any other Authorisation or other document, opinion or assurance which the Lender considers to be necessary or desirable (if it has notified the Borrower 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.

 

 

  

- 39 -

  

SCHEDULE 2

Requests

 

Utilisation Request

 

	
From:

	
Femcare Group Limited

	 	 
	
To:

	
JPMorgan Chase Bank, N.A., London Branch

	 	 
	
Dated:

	
18 March 2011

	 	 

Dear Sirs

 

Femcare Group Limited – £8,000,000 Facility Agreement

dated 18 March 2011 (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 Loan on the following terms:

 

	
Proposed Utilisation Date:

	
18 March 2011

	
Currency of Loan:

	
£

	
Amount:

	
£8,000,000

	
Interest Period:

	
One Month

 

	
3.

	
We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.

 

	
4.

	
The proceeds of this Loan should be credited to:

 

Osborne Clarke Client Account

National Westminster Bank

Bristol City Office

PO Box 238

32 Corn Street

Bristol BS99 7UG

Account No: 00708542

Sort code: 560005

IBAN: GB06 NWBK 5600 0500 7085 42

	
5.

	
This Utilisation Request is irrevocable.

 

	  	
Yours faithfully

	  
	  	
/s/ Kevin L. Cornwell

	  
	  	
authorised signatory for

	  
	  	
Femcare Group Limited

	  

 

 

  

- 40 -

  

SCHEDULE 3

 

Mandatory Cost formulae

 

	
1.

	
The Mandatory Cost is an addition to the interest rate in relation to 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 Lender shall calculate a rate (the "Additional Cost Rate") in accordance with the paragraphs set out below (expressed as a percentage rate per annum).

 

	
3.

	
The Additional Cost Rate for the Lender if lending from a Facility Office in a Participating Member State will be the percentage determined by the Lender as the cost of complying with the minimum reserve requirements of the European Central Bank.

 

	
4.

	
The Additional Cost Rate for the Lender lending from a Facility Office in the United Kingdom will be calculated by the Lender as follows:

 

	
  

	
(a)

	
in relation to a sterling Loan

 

	
AB + C (B - D) + E x 0.01

	
  per cent. per annum

	
100 - (A + C)

	  

	
  

	
(b)

	
in relation to a Loan in any currency other than sterling

 

	
E x 0.01

	
  per cent. per annum

	
300

	  

 

Where:

 

	
  

	
A

	
is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which the 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.

 

	
  

	
B

	
is the percentage rate of interest (excluding the Margin and the Mandatory Cost) payable for the relevant Interest Period on the Loan.

 

	
  

	
C

	
is the percentage (if any) of Eligible Liabilities which the Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

 

	
  

	
D

	
is the percentage rate per annum payable by the Bank of England to the Lender on interest bearing Special Deposits.

 

	
  

	
E

	
is the rate of charge payable by the Lender to the Financial Services Authority pursuant to the Fees Rules (calculated for this purpose by the Lender as being the average of the Fee Tariffs applicable to the Lender) and expressed in pounds per £1,000,000 of the Tariff Base of the Lender.

 

  

- 41 -

  

 

	
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 Fees 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.

	
The Lender shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates the Lender.

 

	
8.

	
Any determination by the Lender pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to the Lender shall, in the absence of manifest error, be conclusive and binding on all Parties.

 

	
9.

	
The Lender may from time to time, after consultation with the Borrower, 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.

 

 

  

- 42 -

  

 

SCHEDULE 4

Form of Transfer Certificate

 

To:

 

Dated:

 

[Borrower] – [                  ] Facility Agreement

 

dated [                   ] (the "Agreement")

 

	
1.

	
We refer to the Agreement.  This is a Transfer Certificate.  Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

 

	
2.

	
We refer to Clause 20.4 (Procedure for transfer):

 

	
  

	
(a)

	
The Lender and the New Lender agree to the Lender transferring to the New Lender by novation all or part of the Lender's commitment, rights and obligations referred to in the Schedule in accordance with Clause 20.4 (Procedure for transfer).

 

	
  

	
(b)

	
The 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 25.2 (Addresses) are set out in the Schedule.

 

	
3.

	
The New Lender expressly acknowledges the limitations on the Lender's obligations set out in sub-clause 20.3.3 of Clause 20.3 (Limitation of responsibility of the Lender).

 

	
4.

	
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.

	
This Transfer Certificate is governed by English law.

 

  

- 43 -

  

SIGNATURES

 

THE BORROWER

 

FEMCARE GROUP LIMITED

 

	
By:

	
/s/ Paul O. Richins

	 	 
	
Name:

	
Paul O. Richins

	 	 
	
Title:

	
Director

	 	 
	
Address:

	
Stuart Court, Spursholt Place  Salisbury Road

	  	
Romsey, Hampshire  SO51 6DJ

	 	 
	
Fax:

	  
	 	 
	
Attention:

	  

 

THE LENDER

 

JPMORGAN CHASE BANK, N.A., LONDON BRANCH

 

	
By:

	/s/ Paul Hogan
	 	 
	
Name:

	Paul Hogan
	 	 
	
Title:

	Executive Director
	 	 
	
Address:

	
125 London Wall

	  	
London EC2Y 5AJ

	 	 
	
Fax:

	  
	 	 
	
Attention:

	  

 

- 44 -utmd8k20110323london.htm

Exhibit 10.12

 

CONTINUING GUARANTY

Dated as of  March 17,  2011.

Guaranty.  To induce JPMorgan Chase Bank, N.A., London Branch, with an address of 125 London Wall, London EC2Y 5AJ, Attn: Paul Hogan, Facsimile No.: +44 (0) 20 7742 7035, its successors and assigns, directly or through any of its Lending Installations (as defined below) (collectively, the “Bank”), at its option, to provide or extend the Liabilities (as defined below) to Femcare Group Limited and/or Utah Medical Products Limited (individually and collectively, as the context requires, the “Borrower”) or to the Borrower and others, and because the undersigned (the “Guarantor”) has determined (a) that executing this Guaranty is necessary or convenient to the conduct, promotion, or attainment of its business and corporate purposes and that it is otherwise in its interest, financial or otherwise, and (b) that it reasonably expects to financially benefit, directly or indirectly, from the Liabilities being provided to the Borrower, the Guarantor absolutely and unconditionally guarantees to the Bank, as primary obligor and not merely as surety, the full and prompt payment of the Liabilities when due, whether on demand, at stated maturity, by acceleration or otherwise. The Guarantor will not only pay the Liabilities, but will also reimburse the Bank for any fees, charges, costs and expenses, including reasonable attorneys' fees, that the Bank may pay in collecting from the Borrower or the Guarantor, and for liquidating any Collateral or this Guaranty (collectively, “Collection Amounts”).   The Guarantor’s obligations under this Guaranty shall be payable in the currency or currencies specified in the Facility Documents (as defined below).

Liabilities. The term “Liabilities” means all obligations, indebtedness, and liabilities of the Borrower, whether alone or together with others, to the Bank or to JPMorgan Chase & Co., or any of their respective subsidiaries or affiliates or their successors, now existing or later arising, including, without limitation, all obligations under or arising with respect to that certain credit facility extended by JPMorgan Chase Bank, N.A., London Branch to Borrower pursuant to that certain £8,000,000 Facility Agreement dated March 10, 2011, all loans, advances, interest, costs, overdraft indebtedness (including but not limited to the amount of any overdraft, determined on a ledger and collected basis, existing at any time or from time to time in any demand deposit account maintained at the Bank by the Borrower [each such account, an “Affiliate Account”], including overdrafts caused by returned checks or other instruments or by withdrawals or transfers from an Affiliate Account against uncollected or insufficient funds, together with interest charged by the Bank on any such overdraft in accordance with its customary practices), credit card indebtedness, lease obligations, obligations relating to the discount or payment of notes, obligations relating to issuance or confirmation of letters of credit, guaranties, or indemnifications, including reimbursement or similar obligations relating to any of the foregoing, obligations of the Borrower relating to guaranties or indemnities given to third parties by the Bank, JPMorgan Chase & Co., or any of their respective subsidiaries or affiliates or their successors, obligations relating to creation of acceptances, obligations relating to treasury management agreements and/or cash management services (including, without limitation, commercial card services, purchase card services, deposit account services, fund transfer services, automated clearing house [ACH] funds transfer services, intercompany “sweep” transfers, investment services, ACH and BACS agreements, and other similar or related services or products), or obligations relating to any Rate Management Transaction (as defined below), including without limitation that certain 2002 Master Agreement dated as of March 15, 2011, in the amount of £8,000,000, and any renewal, modification or replacement therefore, all monetary obligations (including interest) incurred or accrued during the pendency of any bankruptcy, insolvency, receivership or other similar proceedings, regardless of whether allowed or allowable in such proceeding, and all renewals, extensions, modifications, consolidations or substitutions of any of the foregoing, whether the Borrower may be liable jointly with others or individually liable as a debtor, maker, co-maker, drawer, endorser, guarantor, surety or otherwise, and whether voluntarily or involuntarily incurred, due or not due, absolute or contingent, direct or indirect, liquidated or unliquidated.

 

The term “Rate Management Transaction” means any transaction (including an agreement with respect thereto) now existing or hereafter entered into between the Borrower and the Bank or JPMorgan Chase & Co., or any of their respective subsidiaries or affiliates or their successors which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures.

Facility Documents.  All writings evidencing, supporting, securing, or otherwise executed in connection with any of the Liabilities, including but not limited to this Guaranty, as such writings may be amended, modified, replaced, or supplemented from time to time, are referred to collectively as the “Facility Documents” and individually as a “Facility Document.”

  

  

  

 

No Limitation. The Guarantor's obligation under this Guaranty is UNLIMITED.

Continued Reliance. The Bank may continue to make or extend Liabilities to the Borrower in reliance on this Guaranty until it receives written notice of termination from the Guarantor, regardless of whether at any time or from time to time there are no existing Liabilities or commitment by the Bank to make advances or other financial accommodations for Borrower. Notwithstanding the provisions for notices in this Guaranty, such notice shall be effective at the opening of the Bank for business on the third business day after actual receipt of the notice. If terminated, the Guarantor will continue to be liable to the Bank (i) for any Liabilities in existence, created, assumed, or committed to at the time the termination becomes effective, (ii) all subsequent renewals, extensions, modifications, consolidations, rearrangements, restatements, replacements and amendments (but not increases) of those Liabilities, (iii) all interest accruing on those Liabilities after the effective termination date, and (iv) all Collection Amounts incurred with respect to those Liabilities, on or after the effective termination date. The Bank may continue to permit the Borrower to incur Liabilities and to issue commitments to the Borrower to advance or acquire Liabilities in reliance on this Guaranty until the effective date of termination, regardless of whether at any time or from time to time there are no existing Liabilities nor commitment by the Bank to advance or acquire Liabilities.

Security. The term “Collateral” in this Guaranty means all real or personal property described in all security agreements, pledge agreements, mortgages, deeds of trust, assignments, or other instruments now or hereafter executed in connection with any of the Liabilities.  The Collateral, if any, secures the payment of the Liabilities.

Bank's Right of Setoff.  The Guarantor grants the Bank a security interest in, and the Bank is authorized to setoff and apply, all Accounts, Securities and Other Property, and Bank Debt against any and all Liabilities of the Borrower and against all obligations of the Guarantor under this Guaranty.  Subject to applicable law, this security interest and right of setoff may be exercised at any time and from time to time, and without prior notice to the Guarantor.  This security interest and right of setoff may be enforced or exercised by the Bank regardless of whether or not the Bank has made any demand under this paragraph or whether the Liabilities are contingent, matured, or unmatured.  Any delay, neglect or conduct by the Bank in exercising its rights under this paragraph will not be a waiver of the right to exercise this right of setoff. The rights of the Bank under this paragraph are in addition to other rights the Bank may have by law. In this paragraph: (a) the term “Accounts” means any and all accounts and deposits of the Guarantor (whether general, special, time, demand, provisional or final), in U.S. dollars or any other currency, regardless of whether such accounts or deposits are then due to the Guarantor, at any time held by the Bank or any Lending Installation (as defined below) (including all Accounts held jointly with another, but excluding any IRA or Keogh Account, or any trust or other type of Account in which a right of setoff would be prohibited by law); (b) the term “Securities and Other Property” means any and all securities and other property of the Guarantor in the custody, possession or control of the Bank or any Lending Installation (other than property held by the Bank or any Lending Installation in a fiduciary capacity); and (c) the term “Bank Debt” means all indebtedness at any time owing by the Bank or any Lending Installation to or for the credit or account of the Guarantor.

Remedies/Acceleration. If the Guarantor fails to pay any amount owing under this Guaranty, the Bank shall have all of the rights and remedies provided by law or under any other agreement. The Bank is authorized to cause all or any part of the Collateral to be transferred to or registered in its name or in the name of any other person or business entity with or without designation of the capacity of that nominee. The Guarantor is liable for any deficiency in payment of any Liabilities whether of principal, interest, fees, costs or expenses remaining after the disposition of any Collateral. The Guarantor is liable to the Bank for all reasonable costs and expenses of any kind incurred in the making and collection of this Guaranty, including without limitation reasonable attorneys' fees and court costs. These costs and expenses include without limitation any costs or expenses incurred by the Bank in any bankruptcy, reorganization, insolvency or other similar proceeding. All obligations of the Guarantor to the Bank under this Guaranty, whether or not then due or absolute or contingent, shall, at the option of the Bank, without notice or demand, become due and payable immediately upon the occurrence of any default or event of default under the terms of any of the Liabilities or otherwise with respect to any agreement related to the Liabilities (or any other event that results in acceleration of the maturity of any Liabilities, including without limitation, demand for payment of any Liabilities constituting demand obligations or automatic acceleration in a legal proceeding) or the occurrence of any default under this Guaranty.

Permissible Actions.  If any monies become available from any source other than the Guarantor that the Bank can apply to the Liabilities, the Bank may apply them in any manner it chooses, including but not limited to applying them against obligations, indebtedness or liabilities which are not covered by this Guaranty. The Bank may take any action against the Borrower, the Collateral, or any other person liable for any of the Liabilities. The Bank may release the Borrower or anyone else from the Liabilities, either in whole or in part, or release the Collateral, and need not perfect a security interest in or lien on the Collateral. The Bank does not have to exercise any rights that it has against the Borrower or anyone else, or make any effort to realize on the Collateral or any other collateral for the Liabilities, or exercise any right of set-off. The Guarantor authorizes the Bank, without notice or demand and without affecting the Guarantor's obligations hereunder, from time to time, to: (a) renew, modify, compromise, extend, accelerate or otherwise change the time for payment of, or otherwise change the terms of the Liabilities or any part thereof, including increasing or decreasing the rate of interest thereon; (b) release, substitute or add any one or more endorsers, Guarantor or other guarantors; (c) take and hold Collateral for the payment of this Guaranty or the Liabilities, and enforce, exchange, substitute, subordinate, waive or release any such Collateral; (d) proceed against such Collateral and direct the order or manner of sale of such Collateral as the Bank in its discretion may determine; and (e) apply any and all payments from the Borrower, the Guarantor or any other guarantor, or recoveries from such Collateral, in such order or manner as the Bank in its discretion may determine. The Guarantor's obligations under this Guaranty shall not be released, diminished or affected by (i) any act or omission of the Bank, (ii) the voluntary or involuntary liquidation, sale or other disposition of all or substantially all of the assets of the Borrower, or any receivership, insolvency, bankruptcy, reorganization, or other similar proceedings affecting the Borrower or any of its assets, (iii) any change in the composition or structure of the Borrower or the Guarantor, including a merger or consolidation with any other person or entity, or (iv) any payments made upon the Liabilities. The Guarantor hereby expressly consents to any impairment of Collateral, including, but not limited to, failure to perfect a security interest in or release of Collateral, and any such impairment or release shall not affect the Guarantor's obligations hereunder.

  

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Nature of Guaranty.  This Guaranty is a guaranty of payment and not of collection. Therefore, the Bank may insist that the Guarantor pay immediately, and the Bank is not required to attempt to collect first from the Borrower, the Collateral, or any other person liable for the Liabilities. The obligation of the Guarantor shall be unconditional and absolute even if all or any part of any agreement between the Bank and the Borrower is unenforceable, void, voidable or illegal, and regardless of the existence of any defense, setoff or counterclaim which the Borrower may assert. The Guarantor agrees that, as between the Guarantor and the Bank, the Liabilities may be declared to be due and payable for the purposes of this Guaranty notwithstanding any stay, injunction, or other prohibition which may prevent, delay, or vitiate any declaration as regards the Borrower and that in the event of a declaration or attempted declaration, the Liabilities shall immediately become due and payable by the Guarantor for the purposes of this Guaranty.  The obligations of the Guarantor under this Guaranty shall not be affected by  any war, riot, or revolution impacting multinational companies or any act of expropriation, nationalization, or currency inconvertibility or nontransferability arising from governmental, judicial, legislative, or executive measures affecting the Guarantor, the Borrower, or the property of the Guarantor or the Borrower.  If the Borrower is a corporation, limited liability company, partnership, trust, or other type of legal entity, it is not necessary for the Bank to inquire into the powers of the Borrower or the officers, directors, members, managers, partners, trustees or agents acting or purporting to act on its behalf, and any of the Liabilities made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder.

Other Guarantors.  If there is more than one Guarantor, the obligations under this Guaranty are joint and several. In addition, each Guarantor under this Guaranty shall be jointly and severally liable with any other guarantor of the Liabilities.  If the Bank elects to enforce its rights against fewer than all guarantors of the Liabilities, that election does not release the Guarantor from its obligations under this Guaranty. The compromise or release of any of the obligations of any of the other guarantors or the Borrower shall not serve to waive, alter or release the Guarantor's obligations.

Rights of Subrogation. The Guarantor waives and agrees not to enforce any rights of subrogation, contribution or indemnification that it may have against the Borrower, any person liable on the Liabilities, or the Collateral, until the Borrower and the Guarantor have fully performed all their obligations to the Bank, even if those obligations are not covered by this Guaranty.  If any sums shall be paid to the Guarantor or otherwise collected by the Guarantor on account of any subrogation. contribution, or indemnification rights in contravention of the terms of the preceding sentence, such sums shall be held in trust for the benefit of the Bank and promptly paid to the Bank, to be credited and applied to (or held as collateral for) unperformed obligations, whether matured or unmatured, absolute or contingent, as the Bank may determine in its sole discretion, in accordance with the terms of the relevant obligations.

Waivers. The Guarantor waives (a) to the extent not prohibited by applicable law, all rights and benefits under any laws or statutes regarding sureties, as may be amended, and (b) any right the Guarantor may have to receive notice of the following matters before the Bank enforces any of its rights: (i) the Bank's acceptance of this Guaranty, (ii) incurrence or acquisition of any Liabilities, any credit that the Bank extends to the Borrower, Collateral received or delivered, default by any party to any agreement related to the Liabilities or other action taken in reliance on this Guaranty, and all notices and other demands of any description, (iii) diligence and promptness in preserving liability against any obligor on the Liabilities, and in collecting or bringing suit to collect the Liabilities from any obligor on the Liabilities or to pursue any remedy in the Bank’s power to pursue; (iv) notice of extensions, renewals, modifications, rearrangements, restatements and substitutions of the Liabilities or any Collateral for the Liabilities; (v) notice of failure to pay any of the Liabilities as they mature, any other default, adverse change in the financial condition of any obligor on the Liabilities, release or substitution of any Collateral, subordination of the Bank’s rights in any Collateral, and every other notice of every kind that may lawfully be waived; (vi) the Borrower's default, (vii) any demand, diligence, presentment, dishonor and protest, or (viii) any action that the Bank takes regarding the Borrower, anyone else, the Collateral, or any of the Liabilities, which it might be entitled to by law or under any other agreement, (c) any right it may have to require the Bank to proceed against the Borrower, any other obligor or guarantor of the Liabilities, or the Collateral for the Liabilities or the Guarantor's obligations under this Guaranty, or pursue any remedy in the Bank's power to pursue, (d) any defense based on any claim that the Guarantor's obligations exceed or are more burdensome than those of the Borrower, (e) the benefit of any statute of limitations affecting the Guarantor's obligations hereunder or the enforcement hereof, (f) any defense arising by reason of any disability or other defense of the Borrower or by reason of the cessation from any cause whatsoever (other than payment in full) of the obligation of the Borrower for the Liabilities, and (g) any defense based on or arising out of any defense that the Borrower may have to the payment or performance of the Liabilities or any portion thereof. The Bank may waive or delay enforcing any of its rights without losing them. Any waiver affects only the specific terms and time period stated in the waiver. No modification or waiver of this Guaranty is effective unless it is in writing and signed by the party against whom it is being enforced.

  

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Cooperation. The Guarantor agrees to fully cooperate with the Bank and not to delay, impede or otherwise interfere with the efforts of the Bank to secure payment from the assets which secure the Liabilities including actions, proceedings, motions, orders, agreements or other matters relating to relief from automatic stay, abandonment of property, use of cash collateral and sale of the Bank's collateral free and clear of all liens.

Payments Generally.  All payments by the Guarantor shall be made in the manner, at the place and in the currency (the “Payment Currency”) required by the Facility Documents; provided, however, that (if the Payment Currency is other than U.S. dollars) the Guarantor may, at its option (or, if for any reason whatsoever the Guarantor is unable to effect payments in the foregoing manner, the Guarantor shall be obligated to) pay to the Bank at its principal office the equivalent amount in U.S. dollars computed at the selling rate of the Bank or a selling rate chosen by the Bank, most recently in effect on or prior to the date the Liability becomes due, for cable transfers of the Payment Currency to the place where the Liability is payable.  In any case in which the Guarantor makes or is obligated to make payment in U.S. dollars, the Guarantor shall hold the Bank harmless from any loss incurred by the Bank arising from any change in the value of U.S. dollars in relation to the Payment Currency between the date the Liability becomes due and the date the Bank is actually able, following the conversion of the U.S. dollars paid by the Guarantor into the Payment Currency and remittance of such Payment Currency to the place where such Liability is payable, to apply such Payment Currency to such Liability.

Without limiting the scope of the preceding paragraph, if for the purposes of obtaining judgment in any court it is necessary to convert a sum due from the Guarantor under this Guaranty in a Payment Currency (the “specified currency”) into another currency, the Guarantor agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, the Bank could purchase the specified currency with such other currency at an office of the Bank chosen by the Bank in its sole discretion on the business day preceding that on which a final, non-appealable judgment is given.  The obligations of the Guarantor in respect of any sum due to the Bank shall, notwithstanding any judgment in a currency other than the specified currency, be discharged only to the extent that on the business day following receipt by the Bank of any sum adjudged to be so due in such other currency the Bank may in accordance with normal, reasonable banking procedures purchase the specified currency with such other currency.  If the amount of the specified currency so purchased is less than the sum originally due to the Bank in the specified currency, the Guarantor agrees, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify the Bank against such loss.

Certain Taxes.  The Guarantor further agrees that all payments to be made hereunder shall be made without setoff or counterclaim and free and clear of, and without deduction for, any taxes, levies, imposts, duties, charges, fees, deductions, withholdings or restrictions or conditions of any nature whatsoever now or hereafter imposed, levied, collected, withheld or assessed by any country or by any political subdivision or taxing authority thereof or therein (“Taxes”).  If any Taxes are required to be withheld from any amounts payable to the Bank hereunder, the amounts so payable to the Bank shall be increased to the extent necessary to yield to the Bank (after payment of all Taxes) the amounts payable hereunder in the full amounts so to be paid.  Whenever any Tax is paid by the Guarantor, as promptly as possible thereafter, the Guarantor shall send the Bank an official receipt showing payment thereof, together with such additional documentary evidence as may be required from time to time by the Bank.

  

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Lending Installations.  The Bank may designate, in its sole discretion, one or more of its offices, branches, facilities, subsidiaries or affiliates (each, a “Lending Installation”) that is or are to make and book any of the Liabilities and for whose account payments are to be made, and may change any of them from time to time, and the Guarantor consents thereto.  The Guarantor agrees that all terms of this Guaranty shall apply to, be for the benefit of, and be enforced by or on behalf of each such Lending Installation.

Reinstatement. The Guarantor agrees that to the extent any payment is received by the Bank in connection with the Liabilities, and all or any part of such payment is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by the Bank or paid over to a trustee, receiver or any other entity, whether under any bankruptcy act, foreign or domestic, or otherwise (any such payment is hereinafter referred to as a “Preferential Payment”), then this Guaranty shall continue to be effective or shall be reinstated, as the case may be, and whether or not the Bank is in possession of this Guaranty, and, to the extent of such payment or repayment by the Bank, the Liabilities or part thereof intended to be satisfied by such Preferential Payment shall be revived and continued in full force and effect as if said Preferential Payment had not been made.

Severability and Limitation on Obligations.

(a)           The provisions of this Guaranty are severable.  If any of the obligations of the Guarantor under this Guaranty is invalid, illegal, or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining obligations of the Guarantor shall not in any way be affected or impaired, and the invalidity, illegality or unenforceability in one jurisdiction shall not affect the validity, legality or enforceability of the obligations of the Guarantor under this Guaranty in any other jurisdiction.

(b)           Further, in any action or proceeding involving any state corporate law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of the Guarantor under this Guaranty would otherwise be held or determined to be avoidable, invalid, or unenforceable on account of the amount of the Guarantor’s liability under this Guaranty, then, notwithstanding any other provision of this Guaranty to the contrary, the amount of such liability shall, without any further action by the Guarantor or the Bank, be automatically limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest amount determined hereunder being the Guarantor's “Maximum Exposure”). This paragraph (b) with respect to the Maximum Exposure of the Guarantor is intended solely to preserve the rights of the Bank under this Guaranty to the maximum extent not subject to avoidance under applicable law, and neither the Guarantor nor any other person or entity shall have any right or claim under this paragraph (b) with respect to the Maximum Exposure except to the extent necessary to avoid having the obligations of the Guarantor under this Guaranty rendered voidable under applicable law.

(c)           The Guarantor agrees that the Liabilities may at any time and from time to time, without impairing this Guaranty or affecting the rights and remedies of the Bank under this Guaranty, exceed the Maximum Exposure of the Guarantor.  Nothing in this paragraph (c), however, shall be construed as increasing the Guarantor’s obligations under this Guaranty beyond its Maximum Exposure.

Information. The Guarantor assumes all responsibility for being and keeping itself informed of the Borrower's financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Liabilities and the nature, scope and extent of the risks that the Guarantor assumes and incurs under this Guaranty, and agrees that the Bank does not have any duty to advise the Guarantor of information known to it regarding those circumstances or risks.

Financial Information. The Guarantor further agrees that the Guarantor shall provide to the Bank the financial statements and other information relating to the financial condition, properties and affairs of the Guarantor as the Bank requests from time to time.

Representations and Warranties by Guarantor. The Guarantor represents and warrants that the following statements are true and will remain true until termination of this Guaranty and payment in full of all Liabilities: (a) the execution and delivery of this Guaranty and the performance of the obligations it imposes do not violate any law, do not conflict with any agreement by which it is bound, or require the consent or approval of any governmental authority or any third party, (b) this Guaranty is a valid and binding agreement, enforceable according to its terms, and (c) all balance sheets, profit and loss statements, and other financial statements furnished to the Bank in connection with the Liabilities are accurate and fairly reflect the financial condition of the organizations and persons to which they apply on their effective dates, including contingent liabilities of every type, which financial condition has not changed materially and adversely since those dates.

  

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(a) The Guarantor has filed all federal and state tax returns that are required to be filed, has paid all due and payable taxes and assessments against the property and income of the Guarantor and all payroll, excise and other taxes required to be collected and held in trust by the Guarantor for any governmental authority; (b) the Guarantor has determined that this Guaranty will benefit the Guarantor directly or indirectly; (c) the Guarantor has (i) without reliance on the Bank or any information received from the Bank and based upon the records and information the Guarantor deems appropriate, made an independent investigation of the Borrower, the Borrower business, assets, operations, prospects and condition, financial or otherwise, and any circumstances that may bear upon those transactions, the Borrower or the obligations, liabilities and risks undertaken in this Guaranty with respect to the Liabilities; (ii) adequate means to obtain from the Borrower on a continuing basis information concerning the Borrower and the Bank has no duty to provide any information concerning the Borrower or any other obligor to the Guarantor; (iii) full and complete access to the Borrower and any and all records relating to any Liabilities now and in the future owing by the Borrower; (iv) not relied and will not rely upon any representations or warranties of the Bank not embodied in this Guaranty or any acts taken by the Bank prior to and after execution or other authentication and delivery of this Guaranty (including but not limited to any review by the Bank of the business, assets, operations, prospects and condition, financial or otherwise, of the Borrower); and (v) determined that the Guarantor will receive benefit, directly or indirectly, and has or will receive fair and reasonably equivalent value for, the execution and delivery of this Guaranty; (d) by entering into this Guaranty, the Guarantor does not intend to incur or believe that the Guarantor will incur debts that would be beyond the Guarantor’s ability to pay as those debts mature; (e) the execution and delivery of this Guaranty are not intended to hinder, delay or defraud any creditor of the Guarantor; and (f) the Guarantor is neither engaged in nor about to engage in any business or transaction for which the remaining assets of the Guarantor are unreasonably small in relation to the business or transaction, and any property remaining with the Guarantor after the execution or other authentication of this Guaranty is not unreasonably small capital. Each Guarantor, other than a natural person, further represents that: (a) it is duly organized, validly existing and in good standing under the laws of the state where it is organized and in good standing in each state where it is doing business; and (b) the execution and delivery of this Guaranty and the performance of the obligations it imposes (i) are within its powers and have been duly authorized by all necessary action of its governing body, and (ii) do not contravene the terms of its articles of incorporation or organization, its by-laws, or any agreement or document governing its affairs.

Confirmation of Guaranty.  The solicitation of, or the delivery by the Guarantor of, any confirmation or reaffirmation of the continued effectiveness of this Guaranty on one or more occasions shall not give rise to any inference that if such a confirmation or reaffirmation is not delivered on any later occasion, this Guaranty is no longer effective.  For the avoidance of doubt, the obligations of the Guarantor under this Guaranty shall continue in effect as provided in this Guaranty whether or not the Guarantor has confirmed or reaffirmed its effectiveness even though, on one or more occasions, either the Bank may have solicited a confirmation or reaffirmation of the continued effectiveness of this Guaranty from the Guarantor or the Guarantor may have provided such confirmation or reaffirmation, whether or not solicited.

Notices.  All notices, requests and other communications to any party under this Guaranty must be in writing (including bank wire, facsimile transmission or similar writing) and must be given to that party, in the case of the Guarantor, at its address or facsimile number set forth on the signature page of this Guaranty, and, in the case of the Bank, at the address or facsimile number stated above, with concurrent notice to the following address or facsimile number, as the case may be:

 

	  	  	
JPMorgan Chase Bank, N.A.

	  	  	
201 South Main Street

	  	  	
Suite 300

	  	  	
Salt Lake City, Utah 84111

	  	  	
Attention: Lynn Goodale

	  	  	
Facsimile No: 801-715-7401

	 	 	 
	  	
with a copy to:

	
Snell & Wilmer L.L.P.

	  	  	
Beneficial Tower

	  	  	
15 West South Temple, Suite 1200

	  	  	
Salt Lake City, Utah 84101

	  	  	
Attention: Brian D. Cunningham, Esq.

	  	  	
Facsimile No: 801-257-1800

 

Either party may change the address or facsimile number to which notice is to be sent for that party by sending a written notice to the other party specifying the change.  Each notice, request or other communication is effective (i) if given by facsimile transmission, when transmitted to the facsimile number for the other party and confirmation of receipt is received, (ii) if given by mail, 72 hours after the communication is deposited in the mails with first class postage prepaid, to the address for the other party, or (iii) if given by any other means, when delivered at the address for the other party.

  

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Governing Law and Venue. This agreement is delivered in the State of Utah and governed by Utah law (without giving effect to its laws of conflicts). The Guarantor agrees that any legal action or proceeding with respect to any of its obligations under this agreement may be brought by the Bank in any state or federal court located in the State of Utah as the Bank in its sole discretion may elect. By the execution and delivery of this agreement, the Guarantor submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Guarantor waives any claim that the State of Utah is not a convenient forum or the proper venue for any such suit, action or proceeding. THE FOREGOING DOES NOT LIMIT THE RIGHT OF THE BANK TO BRING PROCEEDINGS AGAINST THE GUARANTOR IN THE COURTS OF ANY OTHER STATE, FEDERAL, OR FOREIGN JURISDICTION.

Miscellaneous. The Guarantor's liability under this Guaranty is independent of its liability under any other guaranty previously or subsequently executed by the Guarantor or any one of them, singularly or together with others, as to all or any part of the Liabilities, and may be enforced for the full amount of this Guaranty regardless of the Guarantor's liability under any other guaranty. This Guaranty binds the Guarantor's heirs, successors and assigns, and benefits the Bank and its successors and assigns. The Bank may assign this Guaranty in whole or in part without notice. The Guarantor agrees that the Bank may provide any information or knowledge the Bank may have about the Guarantor or about any matter relating to this Guaranty to JPMorgan Chase & Co., or any of its subsidiaries or affiliates or their successors, or to one or more purchasers or potential purchasers of this Guaranty or the Liabilities guaranteed hereby. The use of headings does not limit the provisions of this Guaranty. Copies provided via facsimile will be given the same validity as an original.

Counterparts.  This Guaranty may be executed in any number of counterparts, each of which shall be considered an original, but all of which together shall constitute one instrument.

WAIVER OF IMMUNITY.  TO THE EXTENT THAT THE GUARANTOR HAS OR HEREAFTER MAY BE ENTITLED TO CLAIM OR MAY ACQUIRE, FOR ITSELF OR ANY OF ITS ASSETS, ANY IMMUNITY FROM SUIT, JURISDICTION OF ANY COURT, OR FROM ANY LEGAL PROCESS (WHETHER FROM SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT, EXECUTION OR OTHERWISE) AS TO ITSELF OR ITS PROPERTY, THE GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN REGARD TO ITS OBLIGATIONS UNDER THIS GUARANTY.

WAIVER OF SPECIAL DAMAGES. THE GUARANTOR WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM THE BANK IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

 

 

JURY WAIVER. THE GUARANTOR AND THE BANK (BY ITS ACCEPTANCE HEREOF) HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN THE GUARANTOR AND THE BANK ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE FINANCING DESCRIBED HEREIN.

	  	
Guarantor:

	  	  
	  	
UTAH MEDICAL PRODUCTS, INC.

	  	  
	  	  
	  	
By       /s/ Paul O. Richins                  

	  	  
	  	
       Paul O. Richins            V.P.               

	  	
Printed Name                   Title

	  	  
	  	
Date Signed:          17-March-2011           

  

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Notice Address:

Utah Medical Products, Inc.

7043 South 300 West

Midvale, Utah 84047

Attention: Paul Richins

Facsimile No: 801-566-7305

with a copy to:

Osborne Clarke

2 Palo Alto Square

Suite 200

Palo Alto, CA 94306, USA

 Attention: Steve Wilson, Esq.

Facsimile No: 650-739-0360

 

 

 

8

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