Document:

EX-10.1

 

Exhibit 10.1

HEALTHSPRING, INC.

EMPLOYMENT AGREEMENT

     THIS
AGREEMENT is made as of this 29th day of December, 2006 (the “Effective Date”)
between HealthSpring, Inc., a Delaware corporation (the “Company”), and Gerald V. Coil
(“Executive”). In consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

     1. Employment. The Company shall employ Executive, and Executive hereby accepts
employment with the Company, upon the terms and conditions set forth in this Agreement for the
period beginning on the Effective Date and ending as provided in paragraph 4 hereof (the
“Employment Period”).

     2. Position and Duties.

          (a) During the Employment Period, Executive shall serve as the Executive Vice President —
Chief Operating Officer of the Company and shall have the normal duties, responsibilities, functions
and authority of an executive officer of the Company, subject to the power and authority of the
Company’s Chief Executive Officer to expand or limit such duties, responsibilities, functions and
authority. During the Employment Period, Executive shall render such administrative, financial and
other executive and managerial services to the Company and its Subsidiaries (as defined below)
which are consistent with Executive’s position as the Board or Chief Executive Officer may from
time to time reasonably direct.

          (b) During the Employment Period, Executive shall report to the Company’s Chief Executive
Officer and shall devote his full business time and attention (except for permitted vacation
periods and reasonable periods of illness or other incapacity) to the business and affairs of the
Company and its Subsidiaries. Executive shall perform his duties, responsibilities and functions
to the Company and its Subsidiaries hereunder in good faith in a diligent, trustworthy and
professional manner and shall comply with the Company’s and its Subsidiaries’ policies and
procedures in all material respects. During the Employment Period, Executive shall not serve as an
officer or director of, or otherwise perform services for compensation for, any other entity
without the prior written consent of the Board (which shall not be unreasonably withheld,
conditioned or delayed); provided that Executive may participate on boards of
charitable entities or other civic entities so long as such service does not materially interfere
with Executive’s duties under this Agreement.

          (c) For purposes of this Agreement, “Subsidiaries” shall mean any corporation or other
entity of which the securities or other ownership interests having the voting power to elect a
majority of the board of directors or other governing body are, at the time of determination, owned
by the Company, directly or through one or more Subsidiaries.

 

 

     3. Compensation and Benefits.

          (a) During the Employment Period, Executive’s base salary shall be $400,000 per annum or such
higher rate as the Board may determine from time to time (as adjusted from time to time, the
“Base Salary”), which salary shall be payable by the Company or one of its Subsidiaries in
regular installments in accordance with such entity’s general payroll practices (in effect from
time to time). In addition, during the Employment Period, Executive shall be entitled to
participate in all of the Company’s employee benefit programs for which senior executive employees
of the Company and its Subsidiaries are generally eligible. During the Employment Period,
Executive shall also be entitled to five weeks of paid vacation each calendar year in accordance
with the Company’s policies, which if not taken during any year may not be carried forward, other
than with respect to one week per year, to any subsequent calendar year and no compensation shall
be payable in lieu thereof. The Company or one of its affiliates or Subsidiaries shall obtain and
maintain customary directors’ and officers’ liability insurance coverage covering Executive on
terms reasonably satisfactory to the Board.

          (b) In addition to the Base Salary, Executive shall be eligible for an annual bonus in an
amount up to 75% of the Base Salary then in effect following the end of each fiscal year of the
Company, beginning with the fiscal year ending December 31, 2007, based upon the achievement by
Executive and the Company and its Subsidiaries of budgetary and other objectives set by the
Compensation Committee of the Board. Such bonus shall be paid on or before March 31 of the
following year.

          (c) During the Employment Period, the Company or one of its Subsidiaries shall reimburse
Executive for all reasonable business expenses incurred by him in the course of performing his
duties and responsibilities under this Agreement which are consistent with the Company’s and its
Subsidiaries’ policies in effect from time to time with respect to travel, entertainment and other
business expenses, subject to the Company’s and its Subsidiaries’ requirements with respect to
reporting and documentation of such expenses.

          (d) All amounts payable to Executive as compensation hereunder shall be subject to all
required and customary withholding by the Company.

     4. Term.

          (a) The Employment Period will continue until (i) Executive’s resignation, Disability (as
defined in paragraph 4(f) below) or death, or (ii) the Board decides to terminate
Executive’s employment with or without Cause (as defined in paragraph 4(e) below). Except
as otherwise provided herein, any termination of the Employment Period by the Company shall be
effective as specified in a written notice from the Company to Executive.

          (b) If the Employment Period is terminated by the Company without Cause or upon Executive’s
resignation with Good Reason (as defined in paragraph 4(g) below), Executive shall be
entitled to (x) continue to receive his Base Salary payable in regular installments and (y)
continue to participate in employee benefit programs for senior executive employees (other than

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bonus and incentive compensation plans), at the Company’s cost, to the extent permitted under
the terms of such programs and under applicable law, as special severance payments from the
date of termination for a period of twelve months thereafter (the “Severance Period”) if
and only if Executive has executed and delivered to the Company the General Release substantially
in form and substance as set forth in Exhibit A attached hereto and the General Release has
become effective, and only so long as Executive has not revoked or breached the provisions of the
General Release or breached the provisions of paragraphs 5, 6 or 7 hereof
and does not apply for unemployment compensation chargeable to the Company or any Subsidiary during
the Severance Period, and Executive shall not be entitled to any other salary, compensation or
benefits after termination of the Employment Period, except as specifically provided for in the
Company’s employee benefit plans or as otherwise expressly required by applicable law. The amounts
payable pursuant to the first sentence of this paragraph 4(b) shall be reduced by the
amount of any compensation Executive receives with respect to any other employment during the
Severance Period; provided that Executive shall have no duty or obligation to seek other employment
during the Severance Period or otherwise mitigate damages hereunder. Upon request from time to
time, Executive shall furnish the Company with a true and complete certificate specifying any such
compensation earned or received by him during the Severance Period. In the event that, within
twelve months of the Effective Date, there is a Sale of the Company (as defined below), and within
twelve months of the Sale of the Company the Employment Period is terminated by the Company (or its
successor) without Cause or upon Executive’s resignation for Good Reason, in lieu of the special
severance payments described above, Executive shall be entitled to a lump sum payment in an amount
equal to two times his Base Salary in effect as of the date of termination. In the event the
receipt of amounts payable pursuant to this paragraph 4(b) within six months of the date of
the Executive’s termination would cause the Executive to be subject to tax under Section 409A of
the Internal Revenue Code of 1986, as amended, then payment of such amounts shall be delayed until
the date that is six months following Executive’s termination date. For purposes of this
Agreement, “Sale of the Company” shall mean the sale of the Company to an Independent Third
Party or group of Independent Third Parties pursuant to which such party or parties acquire (y) 50%
or more of the common stock of the Company (“Common Stock”) outstanding at the time of such
transaction or series of transactions or (z) all or substantially all of the Company’s assets
determined on a consolidated basis. For purposes of this Agreement, “Independent Third
Party” shall mean any person who, immediately prior to the contemplated transaction, does not
own in excess of 5% of the Common Stock on a fully-diluted basis (a “5% Owner”), who is not
controlling, controlled by or under common control with any such 5% Owner and who is not the spouse
or descendant (by birth or adoption) of any such 5% Owner or a trust for the benefit of such 5%
Owner and/or such other persons.

          (c) If the Employment Period is terminated by the Company for Cause or is terminated pursuant
to clause (a)(i) above (other than termination by Executive with Good Reason), Executive shall only
be entitled to receive his Base Salary through the date of termination and shall not be entitled to
any other salary, compensation or benefits from the Company or any of its Subsidiaries thereafter,
except as otherwise specifically provided for under the Company’s employee benefit plans or as
otherwise expressly required by applicable law.

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          (d) Except as otherwise expressly provided herein, all of Executive’s rights to salary,
bonuses, employee benefits and other compensation hereunder which would have accrued or become
payable after the termination of the Employment Period shall cease upon such
termination, other than those expressly required under applicable law (such as COBRA). The
Company may offset any amounts Executive owes the Company or any of its Subsidiaries against any
amounts the Company or any of its Subsidiaries owes Executive hereunder.

          (e) For purposes of this Agreement, “Cause” shall mean with respect to Executive one
or more of the following: (i) the conviction of a felony or other crime involving moral turpitude
or the commission of any other act or omission involving material dishonesty or fraud with respect
to the Company or any of its Subsidiaries, (ii) reporting to work under the influence of illegal
drugs, the use of illegal drugs (whether or not at the workplace) or other repeated conduct causing
the Company or any of its Subsidiaries substantial public disgrace or disrepute or substantial
economic harm, which is not cured within 20 days following written notice thereof to the Executive,
(iii) material and repeated failure to perform his duties as reasonably directed by the Board or
the Company’s Chief Executive Officer, which is not cured within 20 days following written notice
thereof to the Executive, (iv) breach of fiduciary duty or engaging in gross negligence or willful
misconduct with respect to the Company or any of its Subsidiaries or (v) any other material breach
of this Agreement which is not cured within 20 days after written notice thereof to Executive.

          (f) For purposes of this Agreement, “Disability” shall mean the disability of
Executive caused by any physical or mental injury, illness or incapacity as a result of which
Executive is unable to effectively perform or fails to perform the essential functions of
Executive’s duties for 90 consecutive days or 120 days during any 12-month period.

          (g) For purposes of this Agreement, “Good Reason” shall mean if Executive resigns from
employment with the Company and its Subsidiaries prior to the end of the Employment Period as a
result of one or more of the following reasons: (i) the Company reduces the amount of the Base
Salary, (ii) the Company materially reduces his responsibilities, in each case which is not cured
within 20 days after written notice thereof to the Company, (iii) the relocation of the Company’s
principal executive offices and/or the location at which Executive provides services pursuant to
this Agreement to a location outside the metropolitan Nashville, Tennessee area, or (iv) the
Company’s material breach of this Agreement; provided that written notice of Executive’s
resignation for Good Reason must be delivered to the Company within 45 days after the occurrence of
any such event in order for Executive’s resignation with Good Reason to be effective hereunder.

     5. Confidential Information.

          (a) Executive acknowledges that the information, observations and data (including trade
secrets) obtained by him while employed by the Company and its Subsidiaries concerning the business
or affairs of the Company or any Subsidiary (“Confidential Information”) are the property
of the Company or such Subsidiary. Therefore, Executive agrees that, except as set forth in, and
pursuant to, this paragraph 5(a), he shall not disclose to any unauthorized person or
entity or use for his own purposes any Confidential Information or any confidential or proprietary
information of other persons or entities in the possession of the

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Company and its Subsidiaries
(“Third Party Information”), without the prior written consent of the Board, unless and to
the extent that the Confidential Information or Third Party Information
becomes generally known to and available for use by the public other than as a result of
Executive’s acts or omissions. In the event that Executive is requested or required (by oral
question or request for information or documents in any legal proceeding, interrogatory, subpoena,
civil investigative demand, or similar process) to disclose any Confidential Information, such
Executive shall notify the Company promptly of the request or requirement so that the Company may
seek an appropriate protective order or waive compliance with the provisions of this Section. If,
in the absence of a protective order or the receipt of a waiver hereunder, Executive is, on the
advice of counsel, compelled to disclose any Confidential Information to any tribunal, such
Executive may disclose the Confidential Information to the tribunal; provided that such disclosing
Executive shall use his best efforts to assist the Company to obtain, at the request of the Company
(and at the Company’s sole expense), an order or other assurance that confidential treatment shall
be accorded to such portion of the Confidential Information required to be disclosed as the Company
shall designate. Executive shall deliver to the Company at the termination of the Employment
Period, or at any other time the Company may request, all memoranda, notes, plans, records,
reports, computer files, disks and tapes, printouts and software and other documents and data (and
copies thereof) embodying or relating to Third Party Information, Confidential Information, Work
Product (as defined below) or the business of the Company or any of its Subsidiaries which he may
then possess or have under his control.

          (b) Executive shall be prohibited from using or disclosing any confidential information or
trade secrets that Executive may have learned through any prior employment. If at any time during
this employment with the Company or any Subsidiary, Executive believes he is being asked to engage
in work that will, or will be likely to, jeopardize any confidentiality or other obligations
Executive may have to former employers, Executive shall immediately advise the Chief Executive
Officer so that Executive’s duties can be modified appropriately. Executive represents and
warrants to the Company that Executive took nothing with him which belonged to any former employer
when Executive left his prior position and that Executive has nothing that contains any information
which belongs to any former employer. If at any time Executive discovers this is incorrect,
Executive shall promptly return any such materials to Executive’s former employer. The Company
does not want any such materials, and Executive shall not be permitted to use or refer to any such
materials in the performance of Executive’s duties hereunder.

     6. Intellectual Property, Inventions and Patents. Executive acknowledges that all
discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods,
designs, analyses, drawings, reports, patent applications, copyrightable work and mask work
(whether or not including any Confidential Information) and all registrations or applications
related thereto, all other proprietary information and all similar or related information (whether
or not patentable) which relate to the Company’s or any of its Subsidiaries’ actual or anticipated
business, research and development or existing or future products or services and which are
conceived, developed or made by Executive (whether alone or jointly with others) while employed by
the Company and its Subsidiaries, whether before or after the date of this Agreement (“Work
Product”), belong to the Company or such Subsidiary. Executive shall promptly disclose all
patentable inventions and other material Work Product to the

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Board and, at the Company’s expense,
perform all actions reasonably requested by the Board (whether during or after the Employment
Period) to establish and confirm such ownership (including, without
limitation, assignments, consents, powers of attorney and other instruments). Executive
acknowledges that all Work Product shall be deemed to constitute “works made for hire” under the
U.S. Copyright Act of 1976, as amended.

     In accordance with Title 19, Section 805 of the Delaware Code, Executive is hereby advised
that this paragraph 6 regarding the Company’s and its Subsidiaries’ ownership of Work
Product does not apply to any invention for which no equipment, supplies, facilities or trade
secret information of the Company or any Subsidiary was used and which was developed entirely on
Executive’s own time, unless (i) the invention relates to the business of the Company or any
Subsidiary or to the Company’s or any Subsidiaries’ actual or demonstrably anticipated research or
development or (ii) the invention results from any work performed by Executive for the Company or
any Subsidiary.

     7. Non-Compete, Non-Solicitation.

          (a) In further consideration of the compensation to be paid to Executive hereunder, Executive
acknowledges that during the course of his employment with the Company and its Subsidiaries he
shall become familiar with the Company’s and its Subsidiaries’ trade secrets and with other
Confidential Information concerning the Company and its predecessors and Subsidiaries and that his
services have been and shall continue to be of special, unique and extraordinary value to the
Company and its Subsidiaries, and therefore Executive agrees that, during the Employment Period and
for twelve months thereafter (the “Noncompete Period”), he shall not directly or indirectly
own any interest in, manage, control, participate in, consult with, render services for, be
employed in an executive, managerial or administrative capacity by, or in any manner engage in any
business within the United States engaging in the businesses of the Company or its Subsidiaries, as
such businesses exist during the Employment Period or, as of the date of termination or expiration
of the Employment Period, are contemplated to exist during the twelve-month period following the
date of termination or expiration of the Employment Period (the “Restricted Business”).
Nothing herein shall prohibit Executive from (i) being a passive owner of not more than 2% of the
outstanding stock of any class of a corporation which is publicly traded, so long as Executive has
no active participation in the business of such corporation or (ii) becoming employed, engaged,
associated or otherwise participating with a separately managed division or Subsidiary of a
competitive business that does not engage in the Restricted Business (provided that services are
provided only to such division or Subsidiary).

          (b) During the Noncompete Period, Executive shall not directly or indirectly through another
person or entity (i) induce or attempt to induce any employee of the Company or any Subsidiary to
leave the employ of the Company or such Subsidiary, or in any way interfere with the relationship
between the Company or any Subsidiary and any employee thereof, (ii) hire any person who was an
employee of the Company or any Subsidiary at any time during the 18-month period immediately prior
to the termination of the Employment Period or (iii) induce or attempt to induce any customer,
supplier, licensee, licensor, franchisee or other business relation of the Company or any
Subsidiary to cease doing business with the Company or such Subsidiary, or in any way interfere
with the relationship between any such customer, supplier, licensee or

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business relation and the
Company or any Subsidiary (including, without limitation, making any negative or disparaging
statements or communications regarding the Company or its
Subsidiaries). Notwithstanding the foregoing, nothing in this Agreement shall prohibit
Executive from employing an individual (i) with the consent of the Company or (ii) who responded to
general solicitations in publications or on websites, or through the use of search firms, so long
as such general solicitations or search firm activities are not targeted specifically at an
employee of the Company or any of its Subsidiaries. In addition, nothing in this Agreement will
prohibit the making of any truthful statements made by any Person in response to a lawful subpoena
or legal proceeding or to enforce such Person’s rights under this Agreement, or any other agreement
between Executive, the Company and its Subsidiaries.

     8. Enforcement. If, at the time of enforcement of paragraph 5, 6 or
7 of this Agreement, a court holds that the restrictions stated herein are unreasonable
under circumstances then existing, the parties hereto agree that the maximum period, scope or
geographical area reasonable under such circumstances shall be substituted for the stated period,
scope or area and that the court shall be allowed to revise the restrictions contained herein to
cover the maximum period, scope and area permitted by law. Because Executive’s services are unique
and because Executive has access to Confidential Information and Work Product, the parties hereto
agree that the Company and its Subsidiaries would suffer irreparable harm from a breach of
paragraph 5, 6 or 7 by Executive and that money damages would not be an
adequate remedy for any such breach of this Agreement. Therefore, in the event a breach or
threatened breach of this Agreement, the Company or its successors or assigns, in addition to other
rights and remedies existing in their favor, shall be entitled to specific performance and/or
injunctive or other equitable relief from a court of competent jurisdiction in order to enforce, or
prevent any violations of, the provisions hereof (without posting a bond or other security). In
addition, in the event of a breach or violation by Executive of paragraph 7, the Noncompete
Period shall be automatically extended by the amount of time between the initial occurrence of the
breach or violation and when such breach or violation has been duly cured. Executive acknowledges
that the restrictions contained in paragraph 7 are reasonable and that he has reviewed the
provisions of this Agreement with his legal counsel.

     9. Executive’s Representations. Executive hereby represents and warrants to the
Company that (i) the execution, delivery and performance of this Agreement by Executive do not and
shall not conflict with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which Executive is a party or by which he is bound, (ii)
Executive is not a party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity, and (iii) upon the execution and
delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation
of Executive, enforceable in accordance with its terms. Executive hereby acknowledges and
represents that he has consulted with independent legal counsel regarding his rights and
obligations under this Agreement and that he fully understands the terms and conditions contained
herein. The Company hereby represents and warrants to Executive that (i) the execution, delivery
and performance of this Agreement by the Company do not and shall not conflict with, breach,
violate or cause a default under any contract, agreement, instrument, order, judgment or decree to
which the Company is a party or by which it is bound and (ii) upon the execution and delivery of
this Agreement by Executive, this Agreement shall be the valid and binding obligation of the
Company, enforceable in accordance with its terms.

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     10. Survival. Paragraphs 4 through 24, inclusive, shall survive and
continue in full force in accordance with their terms notwithstanding the expiration or termination
of the Employment Period.

     11. Notices. Any notice provided for in this Agreement shall be in writing and shall
be either personally delivered, sent by reputable overnight courier service or mailed by first
class mail, return receipt requested, to the recipient at the address below indicated:

Notices to Executive:

Gerald V. Coil

                     
           

                     
           

Notices to the Company:

HealthSpring, Inc.

44 Vantage Way, Suite 300

Nashville, TN 37228

Attn: Corporate Secretary

Telecopy: (615) 401-4566

or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement shall be
deemed to have been given when so delivered, sent or mailed.

     12. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision of this Agreement or any action in any other jurisdiction, but this
Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

     13. Complete Agreement. This Agreement, those documents expressly referred to herein
and other documents of even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or representations by or
among the parties, written or oral, which may have related to the subject matter hereof.

     14. No Strict Construction. The language used in this Agreement shall be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction shall be applied against any party.

     15. Counterparts. This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one and the same
agreement.

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     16. Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Executive, the Company and their respective heirs, successors and
assigns,
except that Executive may not assign his rights or delegate his duties or obligations
hereunder without the prior written consent of the Company.

     17. Choice of Law. All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the laws of the State of Delaware, without giving
effect to any choice of law or conflict of law rules or provisions (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

     18. Amendment and Waiver. The provisions of this Agreement may be amended or waived
only with the prior written consent of the Company (as approved by the Board) and Executive, and no
course of conduct or course of dealing or failure or delay by any party hereto in enforcing or
exercising any of the provisions of this Agreement (including, without limitation, the Company’s
right to terminate the Employment Period for any reason) shall affect the validity, binding effect
or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this
Agreement.

     19. Insurance. The Company may, at its discretion, apply for and procure in its own
name and for its own benefit life and/or disability insurance on Executive in any amount or amounts
considered advisable. Executive agrees to reasonably cooperate in any medical or other
examination, supply any information reasonably requested and execute and deliver any applications
or other instruments in writing as may be reasonably necessary to obtain and constitute such
insurance. Executive hereby represents that he has no reason to believe that his life is not
insurable at rates now prevailing for healthy men of his age.

     20. Indemnification and Reimbursement of Payments on Behalf of Executive. The Company
and its Subsidiaries shall be entitled to deduct or withhold from any amounts owing from the
Company or any of its Subsidiaries to Executive any federal, state, local or foreign withholding
taxes, excise tax, or employment taxes (“Taxes”) imposed with respect to Executive’s
compensation (including, without limitation, wages, bonuses, dividends, the receipt or exercise of
equity options and/or the receipt or vesting of restricted equity). In the event the Company or
any of its Subsidiaries does not make such deductions or withholdings, Executive shall indemnify
the Company and its Subsidiaries for any amounts paid with respect to any such Taxes.

     21. Consent to Jurisdiction. EACH OF THE PARTIES HERETO SUBMITS TO THE JURISDICTION
OF ANY STATE OR FEDERAL COURT SITTING IN NASHVILLE, TENNESSEE, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN AND AGREES THAT ALL
CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT. EACH
OF THE PARTIES HERETO WAIVES ANY DEFENSE OF INCONVENIENT FORUM TO THE MAINTENANCE OF ANY ACTION OR
PROCEEDING SO BROUGHT AND WAIVES ANY BOND, SURETY OR OTHER SECURITY THAT MIGHT BE REQUIRED OF ANY
OTHER PARTY WITH RESPECT THERETO. ANY PARTY MAY MAKE SERVICE ON ANY OTHER PARTY BY SENDING OR
DELIVERING A COPY OF THE PROCESS

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(I) TO THE PARTY TO BE SERVED AT THE ADDRESS AND IN THE MANNER
PROVIDED
FOR THE GIVING OF NOTICES IN PARAGRAPH 11 ABOVE, OR (II) TO THE PARTY TO BE SERVED IN CARE OF
SUCH PARTY’S REGISTERED AGENT IN THE MANNER PROVIDED FOR THE GIVING OF NOTICES IN PARAGRAPH 11
ABOVE. NOTHING IN THIS PARAGRAPH 21 HOWEVER SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE LEGAL
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. EACH PARTY AGREES THAT A FINAL JUDGMENT (AFTER
GIVING EFFECT TO ANY TIMELY APPEALS) IN ANY ACTION OR PROCEEDING SO BROUGHT SHALL BE CONCLUSIVE AND
MAY BE ENFORCED BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

     22. Waiver of Jury Trial. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE
PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL),
EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING
TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

     23. Executive’s Cooperation. During the Employment Period and thereafter, Executive
shall reasonably cooperate with the Company and its Subsidiaries in any internal investigation, any
administrative, regulatory or judicial investigation or proceeding or any dispute with a third
party as reasonably requested by the Company (including, without limitation, Executive being
available to the Company upon reasonable notice and at reasonable times for interviews and factual
investigations, appearing at the Company’s request upon reasonable notice and at reasonable times
to give testimony without requiring service of a subpoena or other legal process, delivering to the
Company requested information and relevant documents which are or may come into Executive’s
possession, all at times and on schedules that are reasonably consistent with Executive’s other
permitted activities and commitments). In the event the Company requests Executive’s cooperation
in accordance with this paragraph, the Company shall (i) reimburse Executive for all reasonable
travel expenses and other reasonable out-of-pocket expenses (including lodging and meals) upon
submission of receipts and (ii) reimburse Executive for all reasonable fees and expenses, including
without limitation all attorneys fees and expenses, incurred by Executive in connection with any
such investigation or proceeding. Notwithstanding anything contained herein to the contrary,
Executive shall not be required to cooperate or assist the Company in any such investigation or
proceeding in the event that (i) legal counsel to Executive advises him that a reasonable
likelihood exists of a conflict of interest between the Company and its Affiliates and Executive or
(ii) cooperation with the Company could incriminate the Executive or adversely affect the defense
by Executive of any investigation, claim or proceeding.

* * * * *

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	HEALTHSPRING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Herbert A. Fritch, President and Chief Executive Officer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Gerald V. Coil	 	 

D-1

 

Exhibit A

GENERAL RELEASE

     I,                     , in consideration of and subject to the performance by HealthSpring, Inc., a
Delaware corporation (together with its Subsidiaries, the “Company”), of its obligations
under the Amended and Restated Employment Agreement, dated as of                     , 2006 (the
“Agreement”), do hereby release and forever discharge as of the date hereof the Company and
its affiliates and all present and former directors, officers, agents, representatives, employees,
successors and assigns of the Company and its affiliates and the Company’s direct or indirect
owners (collectively, the “Released Parties”) to the extent provided below.

	1.	 	I understand that any payments or benefits paid or granted to me under paragraph 4(b) of the
Agreement represent, in part, consideration for signing this General Release and are not
salary, wages or benefits to which I was already entitled. I understand and agree that I will
not receive the payments and benefits specified in paragraph 4(b) of the Agreement unless I
execute this General Release and do not revoke this General Release within the time period
permitted hereafter or breach this General Release. Such payments and benefits will not be
considered compensation for purposes of any employee benefit plan, program, policy or
arrangement maintained or hereafter established by the Company or its affiliates. I also
acknowledge and represent that I have received all payments and benefits that I am entitled to
receive (as of the date hereof) by virtue of any employment by the Company.
	 
	2.	 	Except as provided in paragraph 4 below and except for the provisions of my Employment
Agreement which expressly survive the termination of my employment with the Company, I
knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns)
release and forever discharge the Company and the other Released Parties from any and all
claims, suits, controversies, actions, causes of action, crossclaims, counterclaims, demands,
debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages,
claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in
equity, both past and present (through the date this General Release becomes effective and
enforceable) and whether known or unknown, suspected, or claimed against the Company or any of
the Released Parties which I, my spouse, or any of my heirs, executors, administrators or
assigns, may have, which arise out of or are connected with my employment with, or my
separation or termination from, the Company (including, but not limited to, any allegation,
claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the
Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended
(including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended;
the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the
Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act
of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state
or local counterparts; or under any other federal, state or local civil or human rights law,
or under any other local, state, or federal law, regulation or ordinance; or under any public
policy, contract or tort, or under common

ExA-1

 

	 	 	law; or arising under any policies, practices or procedures of the Company; or any claim for
wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any
claim for costs, fees, or other expenses, including attorneys’ fees incurred in these
matters) (all of the foregoing collectively referred to herein as the “Claims”).
	 
	3.	 	I represent that I have made no assignment or transfer of any right, claim, demand, cause of
action, or other matter covered by paragraph 2 above.
	 
	4.	 	I agree that this General Release does not waive or release any rights or claims that I may
have under the Age Discrimination in Employment Act of 1967 which arise after the date I
execute this General Release. I acknowledge and agree that my separation from employment with
the Company in compliance with the terms of the Agreement shall not serve as the basis for any
claim or action (including, without limitation, any claim under the Age Discrimination in
Employment Act of 1967).
	 
	5.	 	In signing this General Release, I acknowledge and intend that it shall be effective as a bar
to each and every one of the Claims hereinabove mentioned or implied. I expressly consent
that this General Release shall be given full force and effect according to each and all of
its express terms and provisions, including those relating to unknown and unsuspected Claims
(notwithstanding any state statute that expressly limits the effectiveness of a general
release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating
to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this
waiver is an essential and material term of this General Release and that without such waiver
the Company would not have agreed to the terms of the Agreement. I further agree that in the
event I should bring a Claim seeking damages against the Company, or in the event I should
seek to recover against the Company in any Claim brought by a governmental agency on my
behalf, this General Release shall serve as a complete defense to such Claims. I further
agree that I am not aware of any pending charge or complaint of the type described in
paragraph 2 as of the execution of this General Release.
	 
	6.	 	I agree that neither this General Release, nor the furnishing of the consideration for this
General Release, shall be deemed or construed at any time to be an admission by the Company,
any Released Party or myself of any improper or unlawful conduct.
	 
	7.	 	I agree that I will forfeit all amounts payable by the Company pursuant to the Agreement if I
challenge the validity of this General Release. I also agree that if I violate this General
Release by suing the Company or the other Released Parties, I will pay all costs and expenses
of defending against the suit incurred by the Released Parties, including reasonable
attorneys’ fees, and return all payments received by me pursuant to the Agreement.
	 
	8.	 	I agree that this General Release is confidential and agree not to disclose any information
regarding the terms of this General Release, except to my immediate family and any tax, legal
or other counsel I have consulted regarding the meaning or effect hereof or as required by
law, and I will instruct each of the foregoing not to disclose the same to
anyone. Notwithstanding anything herein to the contrary, each of the parties (and each

ExA-2

 

	 	 	affiliate and person acting on behalf of any such party) agree that each party (and each
employee, representative, and other agent of such party) may disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure of this
transaction contemplated in the Agreement and all materials of any kind (including opinions
or other tax analyses) that are provided to such party or such person relating to such tax
treatment and tax structure, except to the extent necessary to comply with any applicable
federal or state securities laws. This authorization is not intended to permit disclosure
of any other information including (without limitation) (i) any portion of any materials to
the extent not related to the tax treatment or tax structure of this transaction, (ii) the
identities of participants or potential participants in the Agreement, (iii) any financial
information (except to the extent such information is related to the tax treatment or tax
structure of this transaction), or (iv) any other term or detail not relevant to the tax
treatment or the tax structure of this transaction.
	 
	9.	 	Any non-disclosure provision in this General Release does not prohibit or restrict me (or my
attorney) from responding to any inquiry about this General Release or its underlying facts
and circumstances by the Securities and Exchange Commission (SEC), the National Association of
Securities Dealers, Inc. (NASD), any other self-regulatory organization or governmental
entity.
	 
	10.	 	I agree to reasonably cooperate with the Company in any internal investigation, any
administrative, regulatory, or judicial proceeding or any dispute with a third party on the
terms and subject to the limitations set forth in paragraph 24 of the Agreement.
	 
	11.	 	I agree not to disparage the Company, its past and present investors, officers, directors or
employees or its affiliates and to keep all confidential and proprietary information about the
past or present business affairs of the Company and its affiliates confidential in accordance
with the terms of the Agreement unless a prior written release from the Company is obtained.
I further agree that as of the date hereof, I have returned to the Company any and all
property, tangible or intangible, relating to its business, which I possessed or had control
over at any time (including, but not limited to, company-provided credit cards, building or
office access cards, keys, computer equipment, manuals, files, documents, records, software,
customer data base and other data) and that I shall not retain any copies, compilations,
extracts, excerpts, summaries or other notes of any such manuals, files, documents, records,
software, customer data base or other data.
	 
	12.	 	Notwithstanding anything in this General Release to the contrary, this General Release shall
not relinquish, diminish, or in any way affect (i) any rights or claims arising out of any
breach by the Company or by any Released Party of the Agreement after the date hereof, (ii)
any rights or obligations under applicable law which cannot be waived or released pursuant to
an agreement, (iii) any rights to payments or benefits under paragraph 4(b) of the Agreement,
(iv) my rights of indemnification and directors and officers insurance coverage to which I may
be entitled solely with regards to my service as an officer or director of the Company; (v) my
rights with regard to accrued benefits under any employee benefit plan, policy or arrangement
maintained by the Company or

ExA-3

 

	 	 	under COBRA; and (vi) my rights as a stockholder or other equityholder of the Company and/or
its affiliates.
	 
	13.	 	Whenever possible, each provision of this General Release shall be interpreted in, such
manner as to be effective and valid under applicable law, but if any provision of this General
Release is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision or any other jurisdiction, but this General Release shall be
reformed, construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

	(a)	 	I HAVE READ IT CAREFULLY;
	 
	(b)	 	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT
NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED,
TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE
AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED;
	 
	(c)	 	I VOLUNTARILY CONSENT TO EVERYTHING IN IT;
	 
	(d)	 	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR,
AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;
	 
	(e)	 	I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE SUBSTANTIALLY IN ITS
FINAL FORM ON [                        ,           ] TO CONSIDER IT AND THE CHANGES MADE SINCE THE
[                        ,           ] VERSION OF THIS RELEASE ARE NOT MATERIAL AND WILL NOT RESTART THE
REQUIRED 21-DAY PERIOD;
	 
	(f)	 	THE CHANGES TO THE AGREEMENT SINCE [                        ,           ] EITHER ARE NOT MATERIAL OR
WERE MADE AT MY REQUEST.
	 
	(g)	 	I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT
THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS
EXPIRED;
	 
	(h)	 	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY
COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

ExA-4

 

	(i)	 	I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR
MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE
COMPANY AND BY ME.

	 	 	 	 	 	 	 
	DATE:

	 	 	 	 	 	 
	 

	 	 
	 	 	 	 

ExA-5EX-10.1 Bridge Facility Agreement

 

EXHIBIT 10.1

EXECUTION VERSION

 

 

 

Bridge Facility Agreement

Dated     21     December 2006

Santander BanCorp (“Santander”)

Santander Financial Services, Inc. (“Santander FS”)

(each a “Borrower” and together the “Borrowers”)

National Australia Bank Limited, acting through its offshore banking unit (ABN 12 004 044 937) (“Bank”)

 

 

 

Mallesons Stephen Jaques

Level 60

Governor Phillip Tower

1 Farrer Place

Sydney NSW 2000

Australia

T +61 2 9296 2000

F +61 2 9296 3999

DX 113 Sydney

www.mallesons.com

 

 

Bridge Facility Agreement

Contents

	 	 	 	 	 	 	 
	Details
	 	 	1	 
	 
	 	 	 	 	 	 
	General terms
	 	 	3	 
	 

	 	          1     Interpretation
	 	 	3	 
	1.1

	 	Definitions
	 	 	3	 
	1.2

	 	References to certain general terms
	 	 	7	 
	1.3

	 	Number
	 	 	8	 
	1.4

	 	Headings
	 	 	8	 
	 

	 	          2     The Facility and Facility Limits
	 	 	8	 
	2.1

	 	Bank to fund
	 	 	8	 
	2.2

	 	Maximum accommodation — Limits
	 	 	8	 
	2.3

	 	Liability of the Borrowers
	 	 	9	 
	2.4

	 	Purpose
	 	 	9	 
	2.5

	 	Facility Fee
	 	 	9	 
	 

	 	          3     Using the Facility
	 	 	10	 
	3.1

	 	Drawing down
	 	 	10	 
	3.2

	 	Requesting a drawdown
	 	 	10	 
	3.3

	 	Effect of a Drawdown Notice
	 	 	10	 
	3.4

	 	Conditions to drawdown
	 	 	10	 
	3.5

	 	Conditions to all drawdowns
	 	 	10	 
	3.6

	 	Benefit of conditions
	 	 	11	 
	 

	 	          4     Interest
	 	 	11	 
	4.1

	 	Interest charges
	 	 	11	 
	4.2

	 	When Interest Periods begin and end
	 	 	11	 
	 

	 	          5     Repaying and prepaying
	 	 	11	 
	5.1

	 	Repayment
	 	 	11	 
	5.2

	 	Prepayment
	 	 	11	 
	5.3

	 	Prepayments not available for redrawing
	 	 	12	 
	 

	 	          6     Payments
	 	 	12	 
	6.1

	 	Manner of payment
	 	 	12	 
	6.2

	 	Currency of payment
	 	 	12	 
	6.3

	 	No Withholding
	 	 	13	 
	 

	 	          7     Cancellation
	 	 	13	 
	 

	 	          8     Increased costs
	 	 	13	 
	8.1

	 	Compensation
	 	 	13	 
	8.2

	 	Possible minimisation
	 	 	14	 
	 

	 	          9     Illegality or impossibility
	 	 	14	 
	9.1

	 	Bank’s right to suspend or cancel
	 	 	14	 
	9.2

	 	Extent and duration
	 	 	14	 
	9.3

	 	Notice requiring prepayment
	 	 	15	 
	 

	 	          10     Representations and warranties
	 	 	15	 
	10.1

	 	Representations and warranties
	 	 	15	 
	10.2

	 	Repetition of representations and warranties
	 	 	16	 
	10.3

	 	Reliance
	 	 	16	 
	 

	 	          11     Undertakings
	 	 	16	 
	11.1

	 	General undertakings
	 	 	16	 
	 

	 	          12     Default
	 	 	17	 
	12.1

	 	Events of Default
	 	 	17	 
	12.2

	 	Consequences of default
	 	 	19	 

	 	 	 	 	 	 
	 	 	 	 
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	12.3

	 	Investigation of default
	 	 	19	 
	 

	 	          13     Costs and indemnities
	 	 	19	 
	13.1

	 	What the Borrowers agree to pay
	 	 	19	 
	13.2

	 	Indemnity
	 	 	19	 
	13.3

	 	Currency conversion on judgment debt
	 	 	20	 
	 

	 	          14     Interest on overdue amounts
	 	 	20	 
	14.1

	 	Obligation to pay
	 	 	20	 
	14.2

	 	Compounding
	 	 	20	 
	14.3

	 	Interest following judgment
	 	 	21	 
	 

	 	          15     Application of payments
	 	 	21	 
	 

	 	          16     Dealing with interests
	 	 	21	 
	16.1

	 	No dealing by Borrowers
	 	 	21	 
	16.2

	 	Dealings by Bank
	 	 	21	 
	 

	 	          17     Notices and other communications
	 	 	21	 
	17.1

	 	Form — all communications
	 	 	21	 
	17.2

	 	Form — communications sent by email
	 	 	22	 
	17.3

	 	Delivery
	 	 	22	 
	17.4

	 	When effective
	 	 	22	 
	17.5

	 	When taken to be received
	 	 	22	 
	17.6

	 	Receipt outside business hours
	 	 	23	 
	17.7

	 	Waiver of notice period
	 	 	23	 
	 

	 	          18     General
	 	 	23	 
	18.1

	 	Application to Transaction Documents
	 	 	23	 
	18.2

	 	Prompt performance
	 	 	23	 
	18.3

	 	Consents
	 	 	23	 
	18.4

	 	Certificates
	 	 	23	 
	18.5

	 	Set-off
	 	 	23	 
	18.6

	 	Discretion in exercising rights
	 	 	24	 
	18.7

	 	Partial exercising of rights
	 	 	24	 
	18.8

	 	No liability for loss
	 	 	24	 
	18.9

	 	Conflict of interest
	 	 	24	 
	18.10

	 	Remedies cumulative
	 	 	24	 
	18.11

	 	Indemnities
	 	 	24	 
	18.12

	 	Rights and obligations are unaffected
	 	 	24	 
	18.13

	 	Inconsistent law
	 	 	24	 
	18.14

	 	Supervening legislation
	 	 	24	 
	18.15

	 	Time of the essence
	 	 	25	 
	18.16

	 	Variation and waiver
	 	 	25	 
	18.17

	 	Confidentiality
	 	 	25	 
	18.18

	 	Further steps
	 	 	25	 
	18.19

	 	Counterparts
	 	 	26	 
	18.20

	 	Contracts (Rights of Third Parties) Act 1999 (UK)
	 	 	26	 
	18.21

	 	Governing law
	 	 	26	 
	18.22

	 	Serving documents
	 	 	26	 
	 

	Schedule 1 — Conditions precedent (clause 3.4)
	 	 	27	 
	 
	 	 	 	 	 	 
	Schedule 2 — Drawdown Notice (clause 3)
	 	 	28	 
	 
	 	 	 	 	 	 
	Signing page
	 	 	29	 

	 	 	 	 	 	 
	 	 	 	 
	© Mallesons Stephen Jaques

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Bridge Facility Agreement

Details

	 	 	 	 	 
	Parties
	 	 	 	 
	 

	 
	Parties

	 	 	 	Santander BanCorp, Santander FS and Bank
	 
	Santander BanCorp

	 	Name
	 	Santander BanCorp
	 
	 	 	 	 
	 

	 	Co. No.
	 	IRS TAX ID: 66-0573723
	 
	 	 	 	 
	 

	 	Incorporated
	 	Commonwealth of Puerto Rico
	 
	 	 	 	 
	 

	 	Address
	 	207 Ponce de Leon Avenue

4th Floor

San Juan, PR 00918
	 
	 	 	 	 
	 

	 	Fax
	 	+1-787-777-4191
	 
	 	 	 	 
	 

	 	Telephone
	 	+1- 787-777-4486
	 
	 	 	 	 
	 

	 	Email
	 	jperez1@bspr.com
	 
	 	 	 	 
	 

	 	Attention
	 	Juan Pablo Pérez
	 
	Santander FS

	 	Name
	 	Santander Financial Services, Inc.
	 
	 	 	 	 
	 

	 	Co. No.
	 	IRS TAX ID: 66-0422347
	 
	 	 	 	 
	 

	 	Incorporated
	 	Commonwealth of Puerto Rico
	 
	 	 	 	 
	 

	 	Address
	 	207 Ponce de Leon Avenue

4th Floor

San Juan, PR 00918
	 
	 	 	 	 
	 

	 	Fax
	 	+1-787-777-4191
	 
	 	 	 	 
	 

	 	Telephone
	 	+1-787-777-4486
	 
	 	 	 	 
	 

	 	Email
	 	jperez1@bspr.com
	 
	 	 	 	 
	 

	 	Attention
	 	Juan Pablo Pérez
	 
	Bank

	 	Name
	 	National Australia Bank Limited,

acting through its offshore banking unit
	 
	 	 	 	 
	 

	 	ABN
	 	12 004 044 937
	 
	 	 	 	 
	 

	 	Incorporated in
	 	The Commonwealth of Australia

	 	 	 	 	 	 
	 	 	 	 
	© Mallesons Stephen Jaques

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	 	Address
	 	Offshore Banking Unit

Level 33

500 Bourke Street

Melbourne VIC 3000

Australia
	 
	 	 	 	 
	 

	 	Fax
	 	+61 3 8641 0560
	 
	 	 	 	 
	 

	 	Telephone
	 	+61 3 8641 4853
	 
	 	 	 	 
	 

	 	Email
	 	obu@nab.com.au
	 
	 	 	 	 
	Date of agreement

	 	See Signing page	 	 
	 
	 	 	 	 
	Summary of facility
	 	 	 	 
	 
	Facility

	 	Facility Limit
	 	US$800 million
	 
	 	 	 	 
	 

	 	Santander BanCorp Facility Limit
	 	US$275,000,000
	 
	 	 	 	 
	 

	 	Santander FS Facility Limit
	 	US$525,000,000
	 
	 	 	 	 
	 

	 	Availability Period
	 	The period from the date of this agreement to 31 December
2006
	 
	 	 	 	 
	 

	 	Maturity Date
	 	21 September 2007
	 
	 	 	 	 
	 

	 	Margin
	 	0.10% per annum
	 
	 	 	 	 
	 

	 	Facility Fee
	 	0.02% of the Facility Limit
	 
	 	 	 	 
	 

	 	Purpose
	 	To refinance borrowings from Lloyds TSB Bank which were
used to acquire the Puerto Rico Island Finance business from
Wells Fargo Financial in February
2006, and for general corporate purposes.

	 	 	 	 	 	 
	 	 	 	 
	© Mallesons Stephen Jaques

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Bridge Facility Agreement

General terms

 

	1	 	Interpretation
	 
	1.1	 	Definitions
	 
	 	 	These meanings apply unless the contrary intention appears:
	 
	 	 	Amount Owing means the total of all amounts which are then due for payment, or which will
or may become due for payment, in connection with any Transaction Document (including
transactions in connection with them) to the Bank.
	 
	 	 	Authorised Officer means:

	 	(a)	 	in the case of the Bank, a director or secretary, or an officer whose title
contains the word “director”, “associate”, “head”, “executive” or “manager” or a
person performing the functions of any of them, or any other person nominated by the
Bank as an Authorised Officer for the purposes of the Transaction Documents; and
	 
	 	(b)	 	in the case of a Borrower, a director or secretary or any other person
appointed by the Borrower to act as an Authorised Officer under the Transaction
Documents to which it is a party.

	     	 	Availability Period means the period from the date of this agreement to 31 December 2006.
	 
	 	 	Bank means the person so described in the Details.
	 
	 	 	Borrower means Santander BanCorp or Santander FS, as the context requires.
	 
	 	 	Borrowers means Santander BanCorp and Santander FS.
	 
	 	 	Business Day means a day on which banks are open for general banking business in
Melbourne, Australia, Madrid, Spain and New York, New York (not being a Saturday, Sunday
or public holiday in any such place).
	 
	 	 	Banco Santander means Banco Santander Central Hispano SA.
	 
	 	 	BSCH Guarantee means the letter of guarantee dated on or about the date of this Bridge
Facility Agreement, given by Banco Santander in favour of the Bank.
	 
	 	 	Control of a corporation includes the direct or indirect power to directly or indirectly:

	 	(a)	 	direct the management or policies of the corporation; or

	 	 	 	 	 	 
	 	 	 	 
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	 	(b)	 	control the membership of the board of directors,
	 
	 	(c)	 	whether or not the power has statutory, legal or equitable force or is
based on statutory, legal or equitable rights and whether or not it arises by means
of trusts, agreements, arrangements, understandings, practices, the ownership of any
interest in shares or stock of the corporation or otherwise.

	     	 	Costs includes costs, charges and expenses, including those incurred in connection with
advisors.
	 
	 	 	Default Rate means the Interest Rate plus 2% per annum. For the purpose of this
definition, the Interest Rate is calculated as if the overdue amount is a Drawing with
Interest Periods of 30 days (or another period chosen from time to time by the Bank) with
the first Interest Period starting on and including the due date.
	 
	 	 	Details means the section of this agreement headed “Details”.
	 
	 	 	Directive means:

	 	(a)	 	a law; or
	 
	 	(b)	 	a treaty, an official directive, request, guideline or policy (whether or
not having the force of law) with which responsible financiers generally comply in
carrying on their business.

	     	 	Drawdown Date means the date on which a drawdown is or is to be made.
	 
	 	 	Drawdown Notice means a completed notice containing the information and representations
and warranties set out in Schedule 2.
	 
	 	 	Drawing means the outstanding principal amount of a drawdown made under the Facility.
	 
	 	 	Event of Default means an event so described in clause 12 (“Default”).
	 
	 	 	Facility means the Santander BanCorp Facility or the Santander FS Facility or both, as the
context requires.
	 
	 	 	Facility Limit means the sum of the Santander BanCorp Facility Limit and the Santander FS
Facility Limit, as each may be reduced or cancelled under this agreement.
	 
	 	 	Financial Report means a financial report consisting of:

	 	(a)	 	financial statements; and
	 
	 	(b)	 	any notes to those financial statements; and
	 
	 	(c)	 	any directors’ declaration about the financial statements and notes,

	     	 	together with any reports (including any directors’ reports) attached to any of those
documents or intended to be read with any of them.

	 	 	 	 	 	 
	 	 	 	 
	© Mallesons Stephen Jaques

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	     	 	A person is Insolvent if:

	 	(a)	 	it is (or states that it is) an insolvent under administration or insolvent
(within the meaning of any relevant law); or
	 
	 	(b)	 	it is in liquidation, in provisional liquidation, under administration or
wound up or has had a controller appointed to its property; or
	 
	 	(c)	 	it is subject to any arrangement, assignment, moratorium or composition,
protected from creditors under any statute or dissolved (in each case, other than to
carry out a reconstruction or amalgamation while solvent on terms approved by NAB);
or
	 
	 	(d)	 	an application or order has been made (and, in the case of an application,
it is not stayed, withdrawn or dismissed within 30 days), resolution passed, proposal
put forward, or any other action taken, in each case in connection with that person,
which is preparatory to or could result in any of (a), (b) or (c) above; or
	 
	 	(e)	 	it is otherwise unable to pay its debts when they fall due; or
	 
	 	(f)	 	something having a substantially similar effect to (a) to (e) happens in
connection with that person under the law of any jurisdiction.

	     	 	Interest Payment Date means the last day of an Interest Period.
	 
	 	 	Interest Period means, subject to clause 4.2, a period of three (3) months.
	 
	 	 	Interest Rate means LIBOR plus the Margin.
	 
	 	 	LIBOR means, for any date (“Relevant Date”) and period (“Relevant Period”) and amount
(“Relevant Amount”), the rate for deposits in US dollars for the Relevant Period (or
nearest period) which appears on the Reuters Page LIBOR01 as of 11:00am, London time, on
the day that is two London banking days preceding the Relevant Date. If such rates does
not appear on the Reuters Page LIBOR01, the rate for the Relevant Date will be determined
on the basis of the rates at which deposits in US dollars are offered by the Reference
Banks at approximately 11:00am., London time, on the day that is two London banking days
preceding the Relevant Date to prime banks in the London interbank market for the Relevant
Period commencing on the Relevant Date and in the Relevant Amount. The Bank will request
the principal London office of each of the Reference Banks to provide a quotation of its
rate. If at least two such quotations are provided, the rate for the Relevant Date will
be the arithmetic mean of the quotations. If fewer than two quotations are provided as
requested, the rate for the Relevant Date will be the arithmetic mean of the rates quoted
by major banks in New York City, selected by the parties, at approximately 11:00am., New
York City time, on the Relevant Date for loans in US dollars to leading European banks for
the Relevant Period commencing on the Relevant Date and in the Relevant Amount.

	 	 	 	 	 	 
	 	 	 	 
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	     	 	Limit means:

	 	(a)	 	the Facility Limit;
	 
	 	(b)	 	the Santander BanCorp Facility Limit; and
	 
	 	(c)	 	Santander FS Facility Limit,

	     	 	or any of them, as the context requires.
	 
	 	 	Material Adverse Effect means a material adverse effect on:

	 	(a)	 	the applicable Borrower’s ability to comply with its obligations under any
Transaction Document; or
	 
	 	(b)	 	the Bank’s rights under a Transaction Document; or
	 
	 	(c)	 	the business or financial condition of the applicable Borrower.

	     	 	Margin means a margin of 0.10% per annum.
	 
	 	 	Maturity Date means 21 September 2007.
	 
	 	 	Moody’s means Moody’s Investors Service, Inc. and any successor or successors.
	 
	 	 	Potential Event of Default means an event which, with the giving of notice, lapse of time
or fulfilment of any condition, would be likely to become an Event of Default.
	 
	 	 	Reference Banks means four major banks in the London interbank market selected by the
Bank.
	 
	 	 	S&P means Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies,
Inc., and any successor or successors.
	 
	 	 	Santander BanCorp Facility means the facility made available to Santander BanCorp under
this agreement.
	 
	 	 	Santander BanCorp Facility Limit means US$275,000,000.
	 
	 	 	Santander FS Facility means the facility made available to Santander FS under this
agreement.
	 
	 	 	Santander FS Facility Limit means US$525,000,000.
	 
	 	 	Santander Group means the corporate group comprising Banco Santander and its consolidated
Subsidiaries.
	 
	 	 	Subsidiary of an entity means another entity which:

	 	(a)	 	is a subsidiary of the first entity within the meaning of any applicable
legislation, if the context requires it; or

	 	 	 	 	 	 
	 	 	 	 
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	 	(b)	 	is part of the consolidated entity constituted by the first entity and the
entities it is required to include in the consolidated financial statements it
prepares, or would be if the first entity was required to prepare consolidated
financial statements.

	     	 	Taxes means taxes, levies, imposts, deductions, charges, withholdings and duties
(including any withholding tax, stamp duties and transaction duties) imposed by any
authority together with any related interest, penalties, fines and expenses in connection
with them, except if imposed on, or calculated having regard to, the net income of the
Bank or any tax imposed on the Bank as a result of conducting business operations in
Puerto Rico.
	 
	 	 	Transaction Documents means:

	 	(a)	 	this agreement;
	 
	 	(b)	 	any Drawdown Notice;
	 
	 	(c)	 	the BSCH Guarantee;
	 
	 	(d)	 	any document which a Borrower or Banco Santander acknowledges in writing to
be a Transaction Document; and
	 
	 	(e)	 	any other document connected with any of them.

	1.2	 	References to certain general terms
	 
	 	 	Unless the contrary intention appears, in this agreement:

	 	(a)	 	a reference to a group of persons is a reference to any two or more of them
jointly and to each of them individually;
	 
	 	(b)	 	an agreement, representation or warranty in favour of two or more persons
is for the benefit of them jointly and each of them individually;
	 
	 	(c)	 	an agreement, representation or warranty by two or more persons binds them
jointly and each of them individually but an agreement, representation or warranty by
the Bank binds the Bank individually only;
	 
	 	(d)	 	a reference to any thing (including an amount) is a reference to the whole
and each part of it;
	 
	 	(e)	 	a reference to a document (including this agreement) includes any variation
or replacement of it;
	 
	 	(f)	 	the word “law” includes common law, principles of equity, and laws made by
parliament (and laws made by parliament include State, Territory and Commonwealth
laws and regulations and other instruments under them, and consolidations,
amendments, re-enactments or replacements of any of them);
	 
	 	(g)	 	a reference to United States dollars, dollars, $ or US$ is a reference to
the lawful currency of the United States of America;

	 	 	 	 	 	 
	 	 	 	 
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	 	(h)	 	a reference to a time of day is a reference to Melbourne time;
	 
	 	(i)	 	the word “person” includes an individual, a firm, a body corporate, an
unincorporated association and an authority;
	 
	 	(j)	 	a reference to a particular person includes the person’s executors,
administrators, successors, substitutes (including persons taking by novation) and
assigns;
	 
	 	(k)	 	the words “including”, “for example” or “such as” when introducing an
example, do not limit the meaning of the words to which the example relates to that
example or examples of a similar kind;
	 
	 	(l)	 	an Event of Default or Potential Event of Default is “continuing” if it has
not been waived by, or remedied to the satisfaction of, the Bank.

	1.3	 	Number
	 
	 	 	The singular includes the plural and vice versa.
	 
	1.4	 	Headings
	 
	 	 	Headings (including those in brackets at the beginning of paragraphs) and the
Summary in the Details are for convenience only and do not affect the interpretation of
this agreement.

 

	2	 	The Facility and Facility Limits
	 
	2.1	 	Bank to fund
	 
	 	 	The Bank agrees to provide the financial accommodation requested by the Borrowers
under this agreement.
	 
	2.2	 	Maximum accommodation — Limits

	 	(a)	 	Subject to paragraphs (b) and (c), the maximum total amount of financial
accommodation available to the Borrowers under this agreement is the Facility Limit.
	 
	 	(b)	 	Within the Facility Limit:

	 	(i)	 	the maximum total amount of financial accommodation
available to Santander BanCorp is the Santander BanCorp Facility Limit; and
	 
	 	(ii)	 	the maximum total amount of financial accommodation
available to Santander FS is the Santander FS Facility Limit.

	 	 	 	 	 	 
	 	 	 	 
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	 	(c)	 	To avoid doubt:

	 	(i)	 	no part of the Santander BanCorp Facility Limit is
available to be borrowed by Santander FS; and
	 
	 	(ii)	 	no part of the Santander FS Facility Limit is available
to be borrowed by Santander BanCorp.

	2.3	 	Liability of the Borrowers
	 
	 	 	The Borrowers’ obligations to pay principal and interest in connection with the
Facilities is several and not joint. Therefore:

	 	(a)	 	a Drawing by Santander BanCorp under the Santander BanCorp Facility, all
amounts of interest (including default interest) in connection with that Drawing, and
amounts payable under clause 6.3 in connection with any payment by Santander BanCorp,
are repayable or payable (as the case may be) by Santander BanCorp and not by
Santander FS; and
	 
	 	(b)	 	a Drawing by Santander FS under the Santander FS Facility, all amounts of
interest (including default interest) in connection with that Drawing, and amounts
payable under clause 6.3 in connection with any payment by Santander FS, are
repayable or payable (as the case may be) by Santander FS and not by Santander
BanCorp.

	     	 	Subject only to clause 2.5, the Borrowers are jointly and severally liable to pay all
other amounts payable under the Transaction Documents (including amounts payable under
indemnities to the extent they do not comprise amounts in the nature of those described in
paragraphs (a) or (b) or Facility Fee under clause 2.5).
	 
	2.4	 	Purpose
	 
	 	 	Drawings under the Facilities may only be used to refinance borrowings from Lloyds
TSB Bank which were used to acquire the Puerto Rico Island Finance business from Wells
Fargo Financial in February 2006, and for general corporate purposes, and for no other
purpose.
	 
	2.5	 	Facility Fee
	 
	 	 	The Borrowers severally and not jointly agree to pay to the Bank, within 3 Business
Days after the date of this agreement (and regardless of whether a Facility is utilised),
a non-refundable Facility Fee:

	 	(a)	 	in the case of Santander BanCorp, calculated as 0.02% of the Santander
BanCorp Facility Limit; and
	 
	 	(b)	 	in the case of Santander FS, calculated as 0.02% of the Santander FS
Facility Limit.

	 	 	 	 	 	 
	 	 	 	 
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	3	 	Using the Facility
	 
	3.1	 	Drawing down
	 
	 	 	The Borrowers need not use the Facility. However, if a Borrower wants
to use a Facility, a Borrower may do so by a single drawdown. The undrawn part of a
Facility is automatically cancelled after the Drawing is made.
	 
	3.2	 	Requesting a drawdown
	 
	 	 	If a Borrower wants a drawdown, it agrees to give a Drawdown Notice to the Bank by
11.00 am (Melbourne time) on the second Business Day before the day it wants the drawdown.
Each Borrower must provide its own Drawdown Notice.
	 
	3.3	 	Effect of a Drawdown Notice
	 
	 	 	A Drawdown Notice is effective when the Bank actually receives it in legible form.
An effective Drawdown Notice is irrevocable.
	 
	3.4	 	Conditions to drawdown
	 
	 	 	Neither Borrower may request a drawdown until the Bank has received every item
listed in Schedule 1 (“Conditions precedent”) in form and substance satisfactory to the
Bank. Any item required to be certified must be certified by a secretary or a director of
the applicable Borrower as being true and complete as at a date no earlier than the date
of this agreement. The Bank agrees to notify the applicable Borrower as soon as
practicable after the Bank receives the final item.
	 
	3.5	 	Conditions to all drawdowns
	 
	 	 	The Bank need not provide any financial accommodation unless:

	 	(a)	 	it is to be provided during the Availability Period; and
	 
	 	(b)	 	it is satisfied that the financial accommodation is to be used solely for
the purpose described in clause 2.4; and
	 
	 	(c)	 	the Bank is satisfied that after providing the accommodation no Limit would
be exceeded; and
	 
	 	(d)	 	the Bank has received a Drawdown Notice in respect of it; and
	 
	 	(e)	 	the Bank is satisfied that the representations and warranties in clause 10
(“Representations and warranties”) and in the Drawdown Notice, and the statements in
the Drawdown Notice, are correct and not misleading at the date of the Drawdown
Notice and at the date the accommodation is provided; and
	 
	 	(f)	 	the Bank is satisfied that no Event of Default or Potential Event of
Default is continuing, or would result from the accommodation being provided;
and

	 	 	 	 	 	 
	 	 	 	 
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	 	(g)	 	the Bank has received all other documents and other information it
reasonably requests.

	3.6	 	Benefit of conditions
	 
	 	 	Each condition to drawdown is for the sole benefit of the Bank and may be waived by
it.

 

	4	 	Interest
	 
	4.1	 	Interest charges
	 
	 	 	Each Borrower agrees to pay interest on the Drawing for each of its Interest
Periods at the applicable Interest Rate. Interest:

	 	(a)	 	accrues daily from and including the first day of an Interest Period to but
excluding the last day of the Interest Period; and
	 
	 	(b)	 	is payable on each Interest Payment Date; and
	 
	 	(c)	 	is calculated on actual days elapsed and a year of 360 days.

	4.2	 	When Interest Periods begin and end

	 	(a)	 	The first Interest Period for a Drawing begins on the Drawdown Date.
	 
	 	(b)	 	Each subsequent Interest Period begins on the day when the preceding
Interest Period for the Drawing ends.
	 
	 	(c)	 	An Interest Period which would otherwise end on a day which is not a
Business Day ends on the previous Business Day.
	 
	 	(d)	 	However, an Interest Period which would otherwise end after the Maturity
Date ends on the Maturity Date.

 

	5	 	Repaying and prepaying
	 
	5.1	 	Repayment
	 
	 	 	Each Borrower agrees to repay the Drawing in full on the Maturity Date.
	 
	5.2	 	Prepayment
	 
	 	 	A Borrower may prepay the Drawing in full (but not in part) by notifying the
proposed prepayment to the Bank by 11.00 am (Melbourne time) on the third Business Day
before the prepayment (once given, a notice of prepayment is irrevocable and the Borrower
is obliged to prepay in accordance with the notice).
	 
	 	 	If the prepayment is made on the last day of the Interest Period for the Drawing, no break
costs or other fees or charges are payable. However, if a Borrower prepays on a day other
than the last day of the Interest Period for the Drawing, it may be liable for break costs
 — see clause 13.2 (“Indemnity”).

	 	 	 	 	 	 
	 	 	 	 
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	5.3	 	Prepayments not available for redrawing
	 
	 	 	Amounts prepaid may not be redrawn.

 

	 
	6	 	Payments
	 
	6.1	 	Manner of payment
	 
	 	 	Unless a provision of a Transaction Document expressly states otherwise, each
Borrower agrees to make payments (including payments by way of reimbursement) under each
Transaction Document:

	 	(a)	 	on the due date (or, if that is not a Business Day, on the previous
Business Day); and
	 
	 	(b)	 	not later than 11.00 am, New York time; and
	 
	 	(c)	 	in United States dollars in immediately available funds; and
	 
	 	(d)	 	to the Bank by payment into the following account, or as the Bank otherwise
directs:

	 	 	 	 	 	 	 	 
	 	Bank:

	 	 	Citibank NA, New York
	 
	 	Swift:

	 	 	CITIUS33
	 
	 	ABA:

	 	 	21000089	 
	 	For account of:

	 	 	National Australia Bank Ltd

(Offshore Banking Unit)
	 
	 	Account No.:

	 	 	36244285	 
	 	Reference:

	 	 	OBU/Santander
	 
	 

	     	 	If the Bank directs a Borrower to pay a particular party or in a particular manner, a
Borrower is taken to have satisfied its obligation to the Bank by paying in accordance
with the direction.
	 
	 	 	A Borrower satisfies a payment obligation only when the Bank or the person to whom it has
directed payment receives the amount.
	 
	6.2	 	Currency of payment
	 
	 	 	Each Borrower waives any right it has in any jurisdiction to pay an amount other
than in the currency in which it is due in accordance with clause 6.1. However, if the
Bank receives an amount in a currency other than that in which it is due:

	 	(a)	 	it may convert the amount received into the due currency (even though it
may be necessary to convert through a third currency to do so) on the day and at such
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	 	 	 	rate or value tomorrow rate) as it reasonably considers appropriate. It may
deduct its usual Costs in connection with the conversion; and
	 
	 	(b)	 	a Borrower satisfies its obligation to pay in the due currency only to the
extent of the amount of the due currency obtained from the conversion after deducting
the Costs of the conversion.

	6.3	 	No Withholding
	 
	 	 	All payments to be made by a Borrower must be made without set-off or
counter-claim, and be free and clear of any withholding or deduction for Taxes unless
prohibited by law. If any deduction is required by law, the relevant Borrower will make
the deduction, pay any Taxes, and pay to the Bank further amount(s) sufficient to ensure
that the Bank receives the same net amount as it would have received if no deduction had
been made.

 

	7   	 	Cancellation
	 
	 	 	Before a Drawing is made, a Borrower may cancel an undrawn Facility in whole or in
part by notifying the Bank on or before the third Business Day before the cancellation is
to take effect. A partial cancellation must be at least US$1,000,000 and a whole multiple
of US$1,000,000. Once given, the notice is irrevocable. The relevant Limits reduce by the
amount of any cancellation.

 

	8	 	Increased costs
	 
	8.1	 	Compensation
	 
	 	 	Each Borrower agrees to compensate the Bank on demand if the Bank determines that:

	 	(a)	 	a Directive or change in Directive, in either case applying for the first
time after the date of this agreement; or
	 
	 	(b)	 	a change in a Directive’s interpretation or administration by an authority
after the date of this agreement; or
	 
	 	(c)	 	compliance by the Bank or any of its Related Entities with any such
Directive, changed Directive or changed interpretation or administration

	     	 	directly or indirectly:

	 	(i)	 	increases the cost of the Facility to the Bank or any of
its Related Entities; or
	 
	 	(ii)	 	reduces any amount received or receivable by the Bank, or
the effective return to, the Bank or any of its Related Entities, in
connection with the Facility; or
	 
	 	(iii)	 	reduces the return on capital allocated to the
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	 	 	In this clause 8.1, a reference to a Directive does not include a Directive imposing or
changing the basis of a tax on the overall net income of the Bank or any tax imposed on
the Bank as a result of conducting business operations in Puerto Rico.
	 
	 	 	The Bank shall notify the Borrowers of any event occurring after the date of this
agreement entitling the Bank to compensation under this clause 8.1 as promptly as
practicable, but in any event within 30 days after the Bank obtains actual knowledge
thereof, provided that if the Bank fails to give such notice to the Borrowers within 30
days after it obtains actual knowledge of such event, the Bank shall only be entitled to
payment under clause 8.1 for costs or other amounts incurred or payable from and after the
date that is 30 days prior to the date of actual notice to the Borrowers.
	 
	 	 	Compensation need not be in the form of a lump sum and may be demanded as a series of
payments.
	 
	8.2	 	Possible minimisation
	 
	 	 	Each Borrower agrees to compensate the Bank whether or not the increase or
reduction could have been avoided. However, if a Borrower asks, the Bank agrees to
consider ways of minimising any increase or reduction.

 

	9	 	Illegality or impossibility
	 
	9.1	 	Bank’s right to suspend or cancel
	 
	 	 	This clause 9 applies if the Bank determines that:

	 	(a)	 	a change in a Directive; or
	 
	 	(b)	 	a change in the interpretation or administration of a Directive by an
authority; or
	 
	 	(c)	 	a Directive,

	 	 	applying for the first time after the date of this agreement, makes it (or will make it)
illegal or impossible in practice for the Bank to fund, provide, or continue to fund or
provide, financial accommodation under the Transaction Documents. In these circumstances,
the Bank, by giving a notice to the Borrowers, may suspend or cancel some or all of the
Bank’s obligations under this agreement as indicated in the notice.
	 
	9.2	 	Extent and duration
	 
	 	 	The suspension or cancellation:

	 	(a)	 	must apply only to the extent necessary to avoid the illegality or
impossibility; and
	 
	 	(b)	 	in the case of suspension, may continue only for so long as the illegality
or impossibility continues.

	 	 	 	 	 	 
	 	 	 	 
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	9.3 	 	Notice requiring prepayment
	 
	 	 	If the illegality or impossibility relates to the Drawing, the Bank, by giving a
notice to the Borrowers, may require prepayment of all or part of the Drawing and interest
accrued on that part. Each Borrower agrees to repay the amount specified within 30
Business Days after receiving the notice (or, if earlier, on the date the illegality or
impossibility arises).

 

	10	 	Representations and warranties
	 
	10.1	 	Representations and warranties
	 
	 	 	Each Borrower represents and warrants in respect of itself that:

	 	(a)	 	(incorporation and existence) it has been incorporated in accordance with
the laws of its place of incorporation, is validly existing under those laws and has
power and authority to carry on its business as it is now being conducted; and
	 
	 	(b)	 	(power) it has power to enter into the Transaction Documents to which it is
a party and comply with its obligations under them; and
	 
	 	(c)	 	(no contravention or exceeding power) the Transaction Documents and the
transactions under them which involve it do not contravene its constituent documents
(if any) or any law or obligation by which it is bound or to which any of its assets
are subject, where such contravention has or is likely to have a Material Adverse
Effect, or cause a limitation on its powers or the powers of its directors to be
exceeded; and
	 
	 	(d)	 	(authorisations) it has in full force and effect the authorisations
necessary for it to enter into the Transaction Documents to which it is a party, to
comply with its obligations and exercise its rights under them and to allow them to
be enforced; and
	 
	 	(e)	 	(validity of obligations) its obligations under the Transaction Documents
are valid and binding and are enforceable against it in accordance with their terms;
and
	 
	 	(f)	 	(benefit) it benefits by entering into the Transaction Documents to which
it is a party; and
	 
	 	(g)	 	(accounts) its most recent Financial Report given to the Bank complies with
the requirements of any applicable laws and:

	 	(i)	 	complies with any applicable accounting standards; and
	 
	 	(ii)	 	gives a true and fair view of its financial position and
performance or, if it is required to prepare consolidated financial
statements, the financial position and performance of the consolidated
entity constituted by it and the entities it is required to include in the
consolidated financial statements; and

	 	 	 	 	 	 
	 	 	 	 
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	 	(h)	 	(solvency) there are no reasonable grounds to suspect that it is unable to
pay its debts as and when they become due and payable; and
	 
	 	(i)	 	(not a trustee) unless stated in the Details, it does not enter
into any Transaction Document as trustee; and
	 
	 	(j)	 	(litigation) there is no pending or threatened proceeding affecting it or
any of its assets before a court, authority, commission or arbitrator in which a
decision against it (either alone or together with other decisions) is likely to have
a Material Adverse Effect; and
	 
	 	(k)	 	(Event of Default) no Event of Default or Potential Event of Default is
continuing; and
	 
	 	(l)	 	(default under law — Material Adverse Effect) it is not in breach of a law
or obligation affecting it or its assets in a way which has had, or is likely to
have, a Material Adverse Effect; and
	 
	 	(m)	 	(full disclosure) all information provided by it to the Bank (whether
following a request from the Bank or otherwise) and which is used by the Bank in its
assessment of the nature and amount of the risk undertaken by the Bank in entering
into the Transaction Documents, and doing anything in connection with them, is
complete and accurate as of the time such information is provided to the Bank; and
	 
	 	(n)	 	(no immunity) it has no immunity from the jurisdiction of a court or from
legal process; and
	 
	 	(o)	 	(residency) the Borrower is a company resident in Puerto Rico for taxation
purposes and is not resident for taxation purposes in any other jurisdiction; and
	 
	 	(p)	 	(no PE) the Borrower does not enter into the transactions contemplated by
the Transaction Documents in carrying on business at or through a permanent
establishment in Australia.

	10.2	 	Repetition of representations and warranties
	 
	 	 	The representations and warranties in this clause 10 are taken to be also repeated
(by reference to the then current circumstances) on each Drawdown Date and (in the case of
those in clause 10.1(d), (g), (h), (n) and (o)) on each Interest Payment Date.
	 
	10.3	 	Reliance
	 
	 	 	Each Borrower acknowledges that the Bank has entered into the Transaction Documents
in reliance on the representations and warranties in this clause 10.

 

	11	 	Undertakings
	 
	11.1	 	General undertakings
	 
	 	 	Each Borrower undertakes:

	 	 	 	 	 	 
	 	 	 	 
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	 	(a)	 	(accounting records) to keep proper accounting records; and
	 
	 	(b)	 	(conduct of business) to conduct its business (including collecting debts
owed to it) in the ordinary course consistent with its practices as at the date of
this agreement; and
	 
	 	(c)	 	(no cessation of business) not, without the Bank’s consent, (which shall
not be unreasonably withheld) significantly change the general character of any
business it conducts; and
	 
	 	(d)	 	(information) to give the Bank any document or other information that the
Bank reasonably requests from time to time; and
	 
	 	(e)	 	(status certificates) on request from the Bank, to give the Bank a
certificate signed by two of its Authorised Officers which states whether an Event of
Default or Potential Event of Default is continuing; and
	 
	 	(f)	 	(maintain authorisations) to obtain, renew on time and comply with the
terms of each authorisation necessary for it to enter into the Transaction Documents
to which it is a party, to comply with its obligations and exercise its rights under
them and to allow them to be enforced; and
	 
	 	(g)	 	(annual accounts) to give its audited Financial Report for each financial
year to the Bank within 120 days after the end of that financial year.

 

	12	 	Default
	 
	12.1	 	Events of Default
	 
	 	 	Each of the following is an Event of Default:

	 	(a)	 	(non-payment — Transaction Document) a Borrower does not pay on time any
amount payable by it under any Transaction Document in the manner required under it;
or
	 
	 	(b)	 	(cross default) any present or future monetary obligations of a Borrower
for amounts totalling more than US$3,000,000 (or equivalent) are not satisfied on
time (or at the end of their period of grace) or become prematurely payable as a
result of a default of a Borrower.
	 
	 	 	 	(In this clause 12.1(b), a “monetary obligation” means a monetary obligation in
connection with:

	 	(i)	 	money borrowed or raised; or
	 
	 	(ii)	 	any hiring arrangement, redeemable preference share,
letter of credit or financial markets transaction (including a swap, option
or futures contract), performance bond or guarantee facility; or

	 	 	 	 	 	 
	 	 	 	 
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	 	(iii)	 	a guarantee or indemnity in connection with anything
referred to in clauses 12.1(b)(i) or 12.1(b)(ii)); or

	 	(c)	 	(enforcement against assets) distress is levied or a judgment, order or
Encumbrance is enforced, or becomes enforceable, against any property of a Borrower
having a value of more than US$3,000,000 (or equivalent); or
	 
	 	(d)	 	(incorrect representation or warranty) a representation or warranty made,
or taken by clause 10.2 to be repeated, by or for a Borrower in this agreement or by
Banco Santander in the BSCH Guarantee is found to have been incorrect or misleading
when made or so taken to be repeated; or
	 
	 	(e)	 	(Insolvency) a Borrower or Banco Santander becomes Insolvent; or
	 
	 	(f)	 	(ceasing business) a Borrower or Banco Santander stops payment on any of
its material obligations, ceases to carry on its business or a material part of it,
or threatens to do either of those things except to reconstruct or amalgamate while
solvent on terms approved by the Bank; or
	 
	 	(g)	 	(voidable Transaction Document) a Transaction Document or a transaction in
connection with it is or becomes (or is claimed to be) wholly or partly void,
voidable or unenforceable or does not have (or is claimed not to have) the priority
the Bank intended it to have, in each case, as a result of events not due to the acts
or omissions of the Bank (“claimed” in this paragraph means claimed by a Borrower or
any of its Related Entities or anyone on behalf of any of them); or
	 
	 	(h)	 	(change of Control) after the date of this agreement:

	 	(i)	 	the persons who at the date of this agreement have
Control of a Borrower cease to have Control of the Borrower; or
	 
	 	(ii)	 	one or more persons (other than a member of the Santander
Group) acquire Control of a Borrower; or
	 
	 	(iii)	 	one or more persons acquire Control of Banco Santander;
or

	 	(i)	 	(appointment of manager) a person is appointed under legislation to manage
any part of the affairs of a Borrower or Banco Santander; or
	 
	 	(j)	 	(Material Adverse Effect) an event occurs which has, or is likely to have
(or a series of events occur which, together, have, or are likely to have), a
Material Adverse Effect; or
	 
	 	(k)	 	(non-compliance with other obligations) a Borrower or Banco Santander does
not comply with any other obligation under any Transaction Document and, if the
non-compliance can be remedied, does not remedy the non-compliance within ten days.

	 	 	 	 	 	 
	 	 	 	 
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	12.2	 	Consequences of default
	 
	 	 	If an Event of Default is continuing, then the Bank may declare at any time by
notice to the Borrowers that:

	 	(a)	 	subject to clause 2.3, an amount equal to the Amount Owing is either:

	 	(i)	 	payable on demand; or
	 
	 	(ii)	 	immediately due for payment;

	 	(b)	 	the Bank’s obligations specified in the notice are terminated.

	 	 	The Bank may make either or both of these declarations. The making of either of them
gives immediate effect to its provisions.
	 
	12.3	 	Investigation of default
	 
	 	 	If the Bank reasonably believes that an Event of Default is, or may be, continuing,
the Bank may appoint a person to investigate this. Each Borrower agrees to co-operate
with the person and comply with every reasonable request they make. If there is or was an
Event of Default, the Borrowers agree to pay all Costs in connection with the
investigation.

 

	13   	 	Costs and indemnities
	 
	13.1	 	What the Borrowers agree to pay
	 
	 	 	The Borrowers agree to pay or reimburse the Bank for:

	 	(a)	 	all its reasonable Costs in drafting and negotiating a Transaction
Document; and
	 
	 	(b)	 	enforcing a Transaction Document,

	 	 	including, but not limited to, legal Costs.
	 
	 	 	The Borrowers must pay all stamp duty in connection with a Transaction Document.
	 
	13.2	 	Indemnity
	 
	 	 	The Borrowers indemnify the Bank against any liability or loss arising from, and
any Costs incurred in connection with:

	 	(a)	 	financial accommodation requested under a Transaction Document not being
provided in accordance with the request for any reason except default of the Bank; or
	 
	 	(b)	 	financial accommodation under a Transaction Document being repaid,
discharged or made payable other than at its maturity or on an Interest Payment Date
applicable to it or as otherwise allowed under the terms of a Transaction Document;
or

	 	 	 	 	 	 
	 	 	 	 
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	 	(c)	 	the Bank acting in connection with a Transaction Document in good faith on
fax, telephone, email or written instructions purporting to originate from the
offices of a Borrower or to be given by an Authorised Officer of a Borrower; or
	 
	 	(d)	 	an Event of Default; or
	 
	 	(e)	 	the Bank exercising or attempting to exercise a right or remedy in
connection with a Transaction Document after an Event of Default; or
	 
	 	(f)	 	any indemnity the Bank gives a controller or administrator of the
Borrowers.

	 	 	The Borrowers agree to pay amounts due under this indemnity on demand from the Bank.
	 
	13.3	 	Currency conversion on judgment debt
	 
	 	 	If a judgment, order or proof of debt for an amount in connection with a
Transaction Document is expressed in a currency other than that in which the amount is due
under the Transaction Document, then the Borrowers indemnify the Bank against:

	 	(a)	 	any difference arising from converting the other currency if the rate of
exchange used by the Bank under clause 6.2 (“Currency of payment”) for converting
currency when it receives a payment in the other currency is less favourable to the
Bank than the rate of exchange used for the purpose of the judgment, order or
acceptance of proof of debt; and
	 
	 	(b)	 	the Costs of conversion.

	     	 	The Borrowers agree to pay amounts due under this indemnity on demand from the Bank.

 

	14	 	Interest on overdue amounts
	 
	14.1	 	Obligation to pay
	 
	 	 	If a Borrower does not pay any amount under this agreement on the due date for
payment, the relevant Borrower agrees to pay interest on any such amount at the Default
Rate. The interest accrues daily from (and including) the due date to (but excluding) the
date of actual payment and is calculated on actual days elapsed and a year of 360 days.
	 
	 	 	The relevant Borrower agrees to pay interest under this clause on demand from the Bank.
	 
	14.2	 	Compounding
	 
	 	 	Interest payable under clause 14.1 (“Obligation to pay”) which is not paid when due
for payment may be added to the overdue amount by the Bank at
intervals which the Bank determines from time to time or, if no determination

	 	 	 	 	 	 
	 	 	 	 
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	 	 	is made,
every 30 days. Interest is payable on the increased overdue amount at the Default Rate in
the manner set out in clause 14.1 (“Obligation to pay”).
	 
	14.3	 	Interest following judgment
	 
	 	 	If a liability becomes merged in a judgment, the relevant Borrower agrees to pay
interest on the amount of that liability as an independent obligation. This interest:

	 	(a)	 	accrues daily from (and including) the date the liability becomes due for
payment both before and after the judgment up to (but excluding) the date the
liability is paid; and
	 
	 	(b)	 	is calculated at the judgment rate or the Default Rate (whichever is
higher).

	     	 	The relevant Borrower agrees to pay interest under this clause on demand from the Bank.

 

	15  	 	Application of payments
	 
	 	 	Subject to clause 2.3, the Bank may apply amounts paid by the Borrowers towards
satisfaction of the Borrowers’ obligations under the Transaction Documents in the manner
it sees fit, unless the Transaction Documents expressly provide otherwise. This
appropriation overrides any purported appropriation by a Borrower or any other person.

 

	16	 	Dealing with interests
	 
	16.1	 	No dealing by Borrowers
	 
	 	 	The Borrowers may not assign or otherwise deal with their rights under any
Transaction Document or allow any interest in them to arise or be varied, in each case,
without the Bank’s consent.
	 
	16.2	 	Dealings by Bank
	 
	 	 	The Bank may assign or otherwise deal with its rights under the Transaction
Documents (including by assignment or participation) without the consent. of any person,
provided, however, that the Bank may not assign its rights under the Transaction Documents
to any member of the Santander Group without the Borrowers’ written consent.

 

	17	 	Notices and other communications
	 
	17.1	 	Form — all communications
	 
	 	 	Unless expressly stated otherwise in the Transaction Documents, all notices,
certificates, consents, approvals, waivers and other communications in connection with a
Transaction Document must be in writing, signed by the
sender (if an individual) or an Authorised Officer of the sender and marked

	 	 	 	 	 	 
	 	 	 	 
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	 	 	for the
attention of the person identified in the Details or, if the recipient has notified
otherwise, then marked for attention in the way last notified.
	 
	17.2	 	Form — communications sent by email
	 
	 	 	Communications sent by email need not be marked for attention in the way stated in
clause 17.1 (“Form — all communications”). However, the email must state the first and
last name of the sender.
	 
	 	 	Communications sent by email are taken to be signed by the named sender.
	 
	17.3	 	Delivery
	 
	 	 	Communications must be:

	 	(a)	 	left at the address set out or referred to in the Details; or
	 
	 	(b)	 	sent by prepaid ordinary post (airmail, if appropriate) to the address set
out or referred to in the Details; or
	 
	 	(c)	 	sent by fax to the fax number set out or referred to in the Details; or
	 
	 	(d)	 	sent by email to the address set out or referred to in the Details.

	 	 	However, if the intended recipient has notified a changed address or fax number, then
communications must be to that address or number.
	 
	17.4	 	When effective
	 
	 	 	Communications take effect from the time they are received or taken to be received
under clause 17.5 (“When taken to be received”) (whichever happens first) unless a later
time is specified.
	 
	17.5	 	When taken to be received
	 
	 	 	Communications are taken to be received:

	 	(a)	 	if sent by post, three days after posting (or seven days after posting if
sent from one country to another); or
	 
	 	(b)	 	if sent by fax, at the time shown in the transmission report as the time
that the whole fax was sent; or
	 
	 	(c)	 	if sent by email:

	 	(i)	 	when the sender receives an automated message confirming
delivery; or
	 
	 	(ii)	 	four hours after the time sent (as recorded on the device
from which the sender sent the email) unless the sender receives an
automated message that the email has not been delivered,

	 	 	 	whichever happens first.

	 	 	 	 	 	 
	 	 	 	 
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	17.6	 	Receipt outside business hours
	 
	 	 	Despite clauses 17.4 (“When effective”) and 17.5 (“When taken to be received”), if
communications are received or taken to be received under clause 17.5 after 5.00 pm in the
place of receipt or on a non-Business Day, they are taken to be received at 9.00 am on the
next Business Day and take effect from that time unless a later time is specified.
	 
	17.7	 	Waiver of notice period
	 
	 	 	The Bank may waive a period of notice required to be given by a Borrower under this
agreement.

 

	18	 	General
	 
	18.1	 	Application to Transaction Documents
	 
	 	 	If anything in this clause 18 (“General”) is inconsistent with a provision in
another Transaction Document, then the provision in the other Transaction Document
prevails for the purposes of that Transaction Document.
	 
	18.2	 	Prompt performance
	 
	 	 	Subject to clause 18.15 (“Time of the essence”):

	 	(a)	 	if a Transaction Document specifies when a Borrower agrees to perform an
obligation, the Borrower agrees to perform it by the time specified; and
	 
	 	(b)	 	the Borrowers agree to perform all other obligations promptly.

	18.3	 	Consents
	 
	 	 	The Borrowers agree to comply with all conditions in any consent the Bank gives in
connection with a Transaction Document.
	 
	18.4	 	Certificates
	 
	 	 	The Bank may give the Borrowers a certificate about an amount payable or other
matter in connection with a Transaction Document. The certificate is sufficient evidence
of the amount or matter, unless it is proved to be incorrect.
	 
	18.5	 	Set-off
	 
	 	 	If an Event of Default is continuing, the Bank may, in its absolute discretion, set
off any amount owing by the Bank to a Borrower (whether or not due for payment) against
any amount due for payment by a Borrower to the Bank under a Transaction Document.
	 
	 	 	The Bank may do anything necessary to effect any set-off under this clause (including
varying the date for payment of any amount owing by the Bank to a Borrower and making
currency exchanges). This clause applies despite any other agreement between a Borrower
and the Bank.

	 	 	 	 	 	 
	 	 	 	 
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	18.6	 	Discretion in exercising rights
	 
	 	 	The Bank may exercise a right or remedy or give or refuse its consent under a
Transaction Document in any way it considers appropriate (including by imposing
conditions).
	 
	18.7	 	Partial exercising of rights
	 
	 	 	If the Bank does not exercise a right or remedy under a Transaction Document fully
or at a given time, the Bank may still exercise it later.
	 
	18.8	 	No liability for loss
	 
	 	 	The Bank is not liable for loss caused by the exercise or attempted exercise of,
failure to exercise, or delay in exercising, a right or remedy under a Transaction
Document.
	 
	18.9	 	Conflict of interest
	 
	 	 	The Bank’s rights and remedies under any Transaction Document may be exercised even
if this involves a conflict of duty or the Bank has a personal interest in their exercise.
	 
	18.10	 	Remedies cumulative
	 
	 	 	The rights and remedies of the Bank under any Transaction Document are in addition
to other rights and remedies given by law independently of the Transaction Document.
	 
	18.11	 	Indemnities
	 
	 	 	Any indemnity in a Transaction Document is a continuing obligation, independent of
the Borrowers’ other obligations under that Transaction Document and continues after the
Transaction Document ends. It is not necessary for the Bank to incur expense or make
payment before enforcing a right of indemnity under a Transaction Document.
	 
	18.12	 	Rights and obligations are unaffected
	 
	 	 	Rights given to the Bank under a Transaction Document and the Borrowers’
liabilities under it are not affected by anything which might otherwise affect them at
law.
	 
	18.13	 	Inconsistent law
	 
	 	 	To the extent permitted by law, each Transaction Document prevails to the extent it
is inconsistent with any law.
	 
	18.14	 	Supervening legislation
	 
	 	 	Any present or future legislation which operates to vary the obligations of the
Borrowers in connection with a Transaction Document with the result that the Bank’s
rights, powers or remedies are adversely affected (including by way of delay or
postponement) is excluded except to the extent that its exclusion is prohibited or
rendered ineffective by law.

	 	 	 	 	 	 
	 	 	 	 
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	18.15	 	Time of the essence
	 
	 	 	Time is of the essence in any Transaction Document in respect of an obligation of a
Borrower to pay money.
	 
	18.16	 	Variation and waiver
	 
	 	 	A provision of a Transaction Document, or right created under it, may not be waived
or varied except in writing signed by the party or parties to be bound.
	 
	18.17	 	Confidentiality
	 
	 	 	Each party agrees not to disclose information provided by any other party that is
not publicly available (including the existence or contents of any Transaction Document)
except:

	 	(a)	 	to any person in connection with an exercise of rights or a dealing with
rights or obligations under a Transaction Document (including in connection with
preparatory steps such as negotiating with any potential assignee or potential
sub-participant or other person who is considering contracting with the Bank in
connection with a Transaction Document); or
	 
	 	(b)	 	to a person considering entering into (or who enters into) a credit swap
with the Bank involving credit events relating to a Borrower or any of its Related
Entities; or
	 
	 	(c)	 	to officers, employees, legal and other advisers and auditors of a Borrower
or the Bank; or
	 
	 	(d)	 	to any party to this agreement or any related entity of any party to this
agreement, provided the recipient agrees to act consistently with this clause 18.17;
or
	 
	 	(e)	 	with the consent of the party who provided the information (such consent
not to be unreasonably withheld); or
	 
	 	(f)	 	as required by any law or stock exchange.

	 	 	Each party consents to disclosures made in accordance with this clause 18.17.
	 
	18.18	 	Further steps
	 
	 	 	The Borrowers agree to do anything the Bank asks (such as obtaining consents,
signing and producing documents and getting documents completed and signed):

	 	(a)	 	to bind the Borrowers and any other person intended to be bound under the
Transaction Documents;
	 
	 	(b)	 	to show whether the Borrowers are complying with this agreement.

	 	 	 	 	 	 
	 	 	 	 
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	18.19	 	Counterparts
	 
	 	 	This agreement may consist of a number of copies, each signed by one or more
parties to the agreement. If so, the signed copies are treated as making up the one
document.
	 
	18.20	 	Contracts (Rights of Third Parties) Act 1999 (UK)
	 
	 	 	A person who is not a party to this agreement has no rights under the Contracts
(Rights of Third Parties) Act 1999 (UK) to enforce any term of this Agreement.
	 
	18.21	 	Governing law
	 
	 	 	Each Transaction Document is governed by the law in force in England and Wales and
the Borrowers and the Bank submit to the non-exclusive jurisdiction of the courts of
England and Wales and Victoria, Australia.
	 
	18.22	 	Serving documents
	 
	 	 	Without preventing any other method of service, any document in a court action may
be served on a party by being delivered to or left at that party’s address for service of
notices under clause 17.3 (“Delivery”). The Borrowers have appointed Jim Inches of the
Loan Administration Department of the London Branch of Banco Santander Central Hispano
located at 100 Ludgate Hill, London EC4M 7NJ as their agent for receipt of process in
England and Wales in relation to any proceedings before the English courts in connection
with any Transaction Document, and represent he has agreed to so act. The Borrowers agree
that a failure by a process agent to notify the relevant Borrower of the process will not
invalidate the proceedings concerned.

EXECUTED as an agreement

	 	 	 	 	 	 
	 	 	 	 
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Bridge Facility Agreement

Schedule 1 — Conditions precedent (clause 3.4)

Conditions to first drawdown

	•	 	Each item must be in form and substance satisfactory to the Bank.
	 
	•	 	The Bank may also require other documents and information (see clause 3.5(g))
	 
	•	 	Certification is to be by a director or secretary of the applicable Borrower, that the item is
true and complete as at a date no earlier than the date of this agreement.

	 	 	 	 	 	 	 	 	 
	 	 	Item	 	Form	 	Required for
	1

	 	Constitution/memorandum and
articles
	 	Certified copy
	 	Each Borrower
	 
	 	 	 	 	 	 	 	 
	2

	 	Extract of minutes of a meeting
of the Borrowers’ board of
directors which evidences the
resolutions:
	 	Certified copy
	 	Each Borrower
	 
	 	 	 	 	 	 	 	 
	 

	 	(a)
	 	authorising the signing and
delivery of the Transaction
Documents to which the entity
is a party and the observance
of obligations under those
documents; and	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	(b)
	 	appointing Authorised
Officers of the entity.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	3

	 	Specimen signature of
	 	Certified copy
	 	Each Borrower
	 
	 	 	 	 	 	 	 	 
	 

	 	(a)
	 	each Authorised Officer of
the entity; and	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	(b)
	 	each other person who is
authorised to sign a
Transaction Document for the
Borrowers.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	4

	 	This agreement fully signed.
	 	Original
	 	Each Borrower
	 
	 	 	 	 	 	 	 	 
	5

	 	The BSCH Guarantee fully signed.
	 	Original
	 	Banco Santander
	 
	 	 	 	 	 	 	 	 
	6

	 	Legal opinion from Pietrantoni
Mendez & Alvarez LLP acting as
Puerto Rico counsel to each
Borrower.
	 	Original
	 	Borrower

	 	 	 	 	 	 
	 	 	 	 
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Schedule 2 — Drawdown Notice (clause 3)

	 	 	 
	To:

	 	National Australia Bank

Offshore Banking Unit

Level 33, 500 Bourke Street

Melbourne, VIC 3000

Australia

	 
	 	 
	Attention:

	 	Associate Director

[Date]

Drawdown Notice — Bridge Facility Agreement between Santander BanCorp, Santander Financial
Services, Inc. and National Australia Bank Limited, acting through its offshore banking unit, dated
[          ] December 2006 (“Bridge Facility Agreement”)

Under clause 3.2 (“Requesting a drawdown”) of the Bridge Facility Agreement, the Borrower gives
notice as follows.1

The Borrower wants to borrow under the Facility.

	•	 	The requested Drawdown Date is [          ]2.
	 
	•	 	The amount of the proposed drawdown is US$[          ].
	 
	•	 	The proposed drawdown is to be paid to:

	 	 	 
	Account number:

	 	[          ]
	Account name:

	 	[          ]
	Correspondent Bank:

	 	[          ]
	Swift:

	 	[          ]
	Beneficiary Bank:

	 	[          ]
	Swift:

	 	[          ]
	Beneficiary:

	 	[          ]

The Borrower represents and warrants that the representations and warranties in the Bridge Facility
Agreement are correct and not misleading on the date of this notice and that each will be correct
and not misleading on the Drawdown Date.

Clause 1 of the Bridge Facility Agreement applies to this notice as if it was fully set out in this
notice.

	 	 	 
	 
	 	 
	 
	[Name of person] being

an Authorised Officer of

[Name of Borrower]

Instructions for completion

1     All items must be completed.

2     Must be a Business Day within the Availability Period.

	 	 	 	 	 	 
	 	 	 	 
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Signing page

DATED: 21 December 2006

	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	SANTANDER BANCORP

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	/s/ Juan Pablo Pérez Hanley

	 	 	)	 	 	/s/ Carlos M. García
	 

	 	 	 	 	 	 
	Signature

	 	 	)	 	 	Signature
	 

	 	 	)	 	 	 
	Name: Juan Pablo Pérez Hanley

	 	 	)	 	 	Name: Carlos M. García
	 

	 	 	)	 	 	 
	Title: SVP & Treasurer

	 	 	 	 	 	Title: Chief Operating Officer
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	SANTANDER FINANCIAL SERVICES, INC.

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	/s/ José Ramón González

	 	 	)	 	 	/s/ María Calero Padrón
	 

	 	 	 	 	 	 
	Signature

	 	 	)	 	 	Signature
	 

	 	 	)	 	 	 
	Name: José Ramón González

	 	 	)	 	 	Name: María Calero Padrón
	 

	 	 	)	 	 	 
	Title: Director

	 	 	)	 	 	Title: Director
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	Anesh Balgobind

	 	 	)	 	 	 
	as attorney for NATIONAL

	 	 	)	 	 	 
	AUSTRALIA BANK LIMITED,

	 	 	)	 	 	 
	acting through its offshore banking

	 	 	)	 	 	 
	unit, under power of attorney dated

	 	 	)	 	 	 
	28 February
1991
	 	 	)	 	 	 
	in the presence of:
	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Graeme Paterson

	 	 	)	 	 	/s/ Anesh Balgobind
	 

	 	 	 	 	 	 
	Signature of witness

	 	 	)	 	 	By executing this agreement the attorney
	 

	 	 	)	 	 	states that the attorney has received no notice of
	/s/ Graeme Paterson

	 	 	 	 	 	revocation of the power of attorney
	 	 	 
	Name of witness (block letters)
	 	 	 	 	 	 

	 	 	 	 	 	 
	 	 	 	 
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