Document:

EX-10.1

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  EXHIBIT 10.1

  PURCHASE AND SALE AGREEMENT

  dated as of August 8, 2022

  between

  CLEARSIDE ROYALTY LLC

  and

  HEALTHCARE ROYALTY PARTNERS IV, L.P.,

  and

   

   

  HCR COLLATERAL MANAGEMENT, LLC,

  solely in its capacity as agent for Purchaser

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  TABLE OF CONTENTS

  		
	ARTICLE I	DEFINED TERMS AND RULES OF CONSTRUCTION
	1

	Section 1.1	Defined Terms
	1

	Section 1.2	Rules of Construction
	13

	ARTICLE II	PURCHASE AND SALE OF THE PURCHASED ROYALTIES
	14

	Section 2.1	Purchase and Sale.
	14

	Section 2.2	Payment of the Investment Amount
	15

	Section 2.3	Change of Control Payment
	16

	Section 2.4	Prepayment
	16

	Section 2.5	No Assumed Obligations
	16

	Section 2.6	Excluded Assets
	16

	ARTICLE III	REPRESENTATIONS AND WARRANTIES OF THE SELLER
	16

	Section 3.1	Organization
	16

	Section 3.2	No Conflicts.
	16

	Section 3.3	Authorization
	17

	Section 3.4	Ownership
	17

	Section 3.5	Governmental and Third Party Authorizations
	18

	Section 3.6	No Litigation
	18

	Section 3.7	Solvency
	18

	Section 3.8	Tax Matters
	19

	Section 3.9	No Brokers’ Fees
	19

	Section 3.10	Compliance with Laws
	19

	Section 3.11	Intellectual Property Matters
	19

	Section 3.12	Regulatory Approval and Marketing.
	21

	Section 3.13	Counterparty Agreements.
	21

	Section 3.14	The Emory/GT License Agreement.
	23

	Section 3.15	UCC Matters
	24

	Section 3.16	Set-off and Other Sources of Royalty Reduction
	24

	Section 3.17	Margin Stock
	24

	Section 3.18	Representations and Warranties as to the Company
	24

	ARTICLE IV	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
	30

	Section 4.1	Organization
	30

	Section 4.2	No Conflicts
	30

	Section 4.3	Authorization
	31

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  		
	Section 4.4	Governmental and Third Party Authorizations
	31

	Section 4.5	No Litigation
	31

	Section 4.6	Access to Information
	31

	Section 4.7	Funds Available
	31

	ARTICLE V	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AGENT
	32

	Section 5.1	Organization
	32

	Section 5.2	No Conflicts
	32

	Section 5.3	Authorization
	32

	Section 5.4	Governmental and Third Party Authorizations
	32

	Section 5.5	No Litigation
	32

	Section 5.6	Access to Information
	33

	ARTICLE VI	COVENANTS
	33

	Section 6.1	Books and Records; Notices.
	33

	Section 6.2	Public Announcement
	34

	Section 6.3	Further Assurances.
	35

	Section 6.4	Payments on Account of the Purchased Royalties.
	36

	Section 6.5	Covered License Agreements.
	37

	Section 6.6	Termination of the Covered License Agreements.
	40

	Section 6.7	Audits
	40

	Section 6.8	Emory/GT License Agreement
	41

	Section 6.9	Tax Matters.
	43

	Section 6.10	Existence
	44

	Section 6.11	Payment Direction Letters
	44

	Section 6.12	Additional Covenants of the Seller
	45

	Section 6.13	Escrow Account
	45

	ARTICLE VII	THE CLOSING
	46

	Section 7.1	Closing
	46

	Section 7.2	Closing Deliverables of the Seller and the Company
	46

	Section 7.3	Closing Deliverables of the Purchaser and the Purchaser Agent
	46

	Section 7.4	Lockbox Account; Account Control Agreement.
	47

	ARTICLE VIII	INDEMNIFICATION
	47

	Section 8.1	Indemnification by the Seller
	47

	Section 8.2	Indemnification by the Purchaser
	48

	Section 8.3	Procedures for Third Party Claims
	48

   

  

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	Section 8.4	Other Claims
	49

	Section 8.5	Survival
	49

	Section 8.6	Remedies
	49

	Section 8.7	Limitations
	50

	Section 8.8	Tax Treatment of Indemnification Payments
	50

	ARTICLE IX	CONFIDENTIALITY
	50

	Section 9.1	Confidentiality
	50

	Section 9.2	Termination of Confidentiality Agreement
	51

	Section 9.3	Permitted Disclosure
	51

	Section 9.4	Other Relevant Obligations
	52

	ARTICLE X	TERMINATION
	52

	Section 10.1	Termination of Agreement
	52

	Section 10.2	Effect of Termination
	52

	ARTICLE XI	MISCELLANEOUS
	52

	Section 11.1	Purchaser Agent
	52

	Section 11.2	Specific Performance
	53

	Section 11.3	Notices
	53

	Section 11.4	Successors and Assigns
	54

	Section 11.5	Independent Nature of Relationship
	54

	Section 11.6	Entire Agreement
	55

	Section 11.7	Governing Law.
	55

	Section 11.8	Waiver of Jury Trial
	56

	Section 11.9	Severability
	56

	Section 11.10	Counterparts
	56

	Section 11.11	Amendments; No Waivers
	56

	Section 11.12	No Third Party Rights
	56

	Section 11.13	Table of Contents and Headings
	57

   

   

   

   

   

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  Exhibits

  Exhibit A-1:		Form of Bill of Sale – Purchaser

  Exhibit A-2:		Form of Bill of Sale – Seller

  Exhibit B:		Contribution Agreement

  Exhibit C:		[Reserved]

  Exhibit D:		Form of Payment Direction Letter

  Exhibit E:		Form of Permitted Platform License

  Exhibit F:		Equity Pledge Agreement

  Exhibit G-1:		Aura License Agreement

  Exhibit G-2:		AV License Agreement

  Exhibit G-3:		Bausch License Agreement

  Exhibit G-4:		REGENX License Agreement

  Exhibit H:		Emory/GT License Agreement

  Exhibit I:		Closing Press Release

  Exhibit J:		Seller Account 

   

   

  Schedule

  Schedule 1.1		Definition of “Competitor”

  Schedule 1.2		Future License Agreements

  Schedule 1.3		Definition of “Knowledge”

  Schedule 6.13	Escrow Matters

   

   

  iv

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  PURCHASE AND SALE AGREEMENT

  This PURCHASE AND SALE AGREEMENT (this “Purchase and Sale Agreement”), dated as of August 8, 2022, is by and among Clearside Royalty LLC, a Delaware limited liability company (the “Seller”), Healthcare Royalty Partners IV, L.P., a Delaware limited liability partnership (the “Purchaser”) and HCR Collateral Management, LLC, solely in its capacity as agent of the Purchaser (the “Purchaser Agent”).

  W I T N E S S E T H :

  WHEREAS, the Seller holds certain assets and rights relating to the Licensed Products; and

  WHEREAS, the Seller desires to sell, contribute, assign, transfer, convey and grant to the Purchaser, and the Purchaser desires to purchase, acquire and accept from the Seller, the Purchased Royalties described herein, upon and subject to the terms and conditions set forth in this Purchase and Sale Agreement.

  NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties set forth herein and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties covenant and agree as follows:

  ARTICLE I
DEFINED TERMS AND RULES OF CONSTRUCTION

  Section 1.1	Defined Terms.  The following terms, as used herein, shall have the following respective meanings:

  “Account Bank” means Silicon Valley Bank, or such other bank or financial institution approved by each of the Purchaser and the Seller. 

  “Account Control Agreement” means any agreement entered into by the Account Bank, the Seller and the Purchaser in form and substance reasonably satisfactory to the Purchaser, pursuant to which, among other things, the Purchaser Agent shall have control over the Lockbox Account within the meaning of Section 9-104 of the UCC.

  “Affiliate” means, with respect to any designated Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such designated Person.  For purposes of this definition, “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of Equity Interests, by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative to the foregoing.

  “Applicable Law” means, with respect to any Person, all laws, rules, regulations and orders of Governmental Authorities applicable to such Person or any of its properties or assets.

  “Aura” means Aura Biosciences, Inc., a Delaware corporation. 

  “Aura Intellectual Property Rights” means, collectively, the Aura Know-How, the Aura Patents and the Aura Licensed IP, to the extent licensed to Aura under the Aura License Agreement.

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  “Aura Know-How” has the meaning given to the term “Licensed Know-How” in Section 1.33 of the Aura License Agreement. 

  “Aura License Agreement” means that certain License Agreement, effective as of July 3, 2019, by and between the Company and Aura, as amended from time to time (but subject to the terms of this Purchase and Sale Agreement with respect to the amendment thereof). 

  “Aura Licensed IP” has the meaning given to the term “Licensed IP” in Section 1.34 of the Aura License Agreement.

  “Aura Licensed Products” has the meaning given to the term “Licensed Product” in Section 1.36 of the Aura License Agreement.

  “Aura Patents” means has the meaning given to the term “Licensed Patent Rights” in Section 1.35 of the Aura License Agreement.

  “Aura Royalties” means all of the Seller’s, title and interest in and to (a) all amounts due, payable or paid to the Seller under Sections 4.3 and 4.4 of the Aura License Agreement, (b) all payments due, payable or paid to Seller under Section 4.6 of the Aura License Agreement in respect of any underpayment of the amounts described in clause (a), (c) all amounts due, payable or paid to the Seller in lieu of the amounts described in clause (a), (d) all amounts recovered by the Seller, or by Aura and paid to the Seller, in excess of litigation costs, under Section 9.4 of the Aura License Agreement, (e) all interest that becomes payable in respect of the late payment of any of the amounts referred to in the foregoing clauses (a) through (e) pursuant to Section 4.10 of the Aura License Agreement, (f) all accounts (as defined under the UCC) evidencing the rights to the payments and amounts described in this definition and (g) all proceeds (as defined under the UCC) of any of the foregoing, in each of cases in clauses (a) through (d), due, payable or paid to the Seller on or after [***].  For the avoidance of doubt, Aura Royalties shall (x) include all amounts due, payable or paid to the Seller or any of its Affiliates by one or more licensees or sublicensees under any New Arrangement, (y) be computed without reduction for withholding of any Taxes other than withholding in respect of any Purchaser Connection Taxes to the extent properly withheld and remitted to the applicable taxing authority and (z) shall not include any amounts due and payable prior to [***] that is paid on or after [***].

  “Aura Royalty Reports” means all royalty reports delivered to the Seller by Aura pursuant to Section 4.5 of the Aura License Agreement. 

  “AV” means Arctic Vision (Hong Kong) Limited. 

  “AV Intellectual Property Rights” means, collectively, AV Know-How and AV Patents, to the extent licensed to AV under the AV License Agreement.

  “AV Know-How” means has the meaning given to the term “Clearside Know-How” in Section 1.13 of the AV License Agreement.

  “AV License Agreement” means, collectively, (a) that certain License Agreement, dated March 10, 2020, by and between the Company, AV and the other parties thereto, (b) as amended by that certain Amendment No. 1 to the License Agreement, effective as of August 15, 2021, by and between the Company, AV and the other parties thereto and (c) Amendment No. 2 to the License Agreement, effective as of September 9, 2021, by and between the Company, AV and the other parties thereto, as amended 

  2

  

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  from time to time (but subject to the terms of this Purchase and Sale Agreement with respect to the amendment thereof).

  “AV Licensed Products” has the meaning given to the term “Licensed Product” in Section 1.42 of the AV License Agreement.

  “AV Patents” has the meaning given to the term “Clearside Patent Rights” in Section 1.14 of the AV License Agreement. 

  “AV Royalties” means all of the Seller’s right, title and interest in and to (a) all amounts due, payable or paid to the Seller under Sections 8.04, 8.05, and 8.06 of the AV License Agreement, (b) all payments due, payable or paid to the Seller under Section 8.08 of the AV License Agreement in respect of any underpayment of the amounts described in clause (a), (c) all amounts due, payable or paid to the Seller in lieu of the amounts described in clause (a), (d) all amounts recovered by the Seller, or by AV and paid to the Seller, in excess of litigation costs under Section 9.03 of the AV License Agreement, (e) all payments due, payable or paid to the Seller under Section 2(b) of Amendment No. 2 to the AV License Agreement, (f) all interest that becomes payable in respect of the late payment of any of the amounts referred to in the foregoing clauses (a) through (e) pursuant to Section 8.13 of the AV License Agreement, (g) all accounts (as defined under the UCC) evidencing the rights to the payments and amounts described in this definition and (h) all proceeds (as defined under the UCC) of any of the foregoing, in each of cases in clauses (a) through (f), due, payable or paid to the Seller on or after [***].  For the avoidance of doubt, AV Royalties shall (x) include all amounts due, payable or paid to the Seller or any of its Affiliates by one or more licensees or sublicensees under any New Arrangement, (y) be computed without reduction for withholding of any Taxes other than withholding in respect of any Purchaser Connection Taxes to the extent properly withheld and remitted to the applicable taxing authority and (z) shall not include any amounts due and payable prior to [***] that is paid on or after [***].

  “AV Royalty Reports” means the royalty reports delivered to the Seller by AV pursuant to Section 8.07 of the AV License Agreement. 

  “Bankruptcy Event” means the occurrence of any of the following in respect of any Person: (a) an admission in writing by such Person of its inability to pay its debts as they become due or a general assignment by such Person for the benefit of creditors; (b) the filing of any petition or answer by such Person seeking to adjudicate itself as bankrupt or insolvent, or seeking for itself any liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition of such Person or its debts under any law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization, examination, relief of debtors or other similar law now or hereafter in effect, or seeking, consenting to or acquiescing in the entry of an order for relief in any case under any such law, or the appointment of or taking possession by a receiver, trustee, custodian, liquidator, examiner, assignee, sequestrator or other similar official for such Person or for any substantial part of its property; (c) corporate or other entity action taken by such Person to authorize any of the actions set forth in clause (a) or (b) of this definition; or (d) without the consent or acquiescence of such Person, the entering of an order for relief or approving a petition for relief or reorganization or any other petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or other similar relief under any present or future bankruptcy, insolvency or similar statute, law or regulation, or the filing of any such petition against such Person, or, without the consent or acquiescence of such Person, the entering of an order appointing a trustee, custodian, receiver or liquidator of such Person or of all or any substantial part of the property of such Person, in each case where such petition or order shall remain unstayed or shall not have been stayed or dismissed within [***] from entry thereof.

  3

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  “Bausch” means Bausch Health Ireland Limited, an Irish company, and any of its Affiliates, successors and permitted assigns. 

  “Bausch Consent” has the meaning set forth in Section 7.2(f).

  “Bausch Intellectual Property Rights” means Bausch Patents and Bausch Know-How, to the extent licensed to Bausch under the Bausch License Agreement.

  “Bausch Know-How” has the meaning given to the term “Licensed Know-How” in Section 1.62 of the Bausch License Agreement.

  “Bausch License Agreement” means, collectively, (a) that certain License Agreement, made as of October 22, 2019, by and between the Company and Bausch, (b) that certain First Amendment to License Agreement, effective as of April 27, 2020, by and between Bausch and the Company, and (c) that certain Second Amendment to License Agreement, effective as of September 27, 2021, by and between Bausch and the Company, as amended from time to time (but subject to the terms of this Purchase and Sale Agreement with respect to the amendment thereof). 

  “Bausch Licensed Products” has the meaning given to the term “Product” in Section 1.78 of the Bausch License Agreement.

  “Bausch Patents” has the meaning given to the term “Licensed Patents” in Section 1.64 of the Bausch License Agreement.

  “Bausch Royalties” means all of the Seller’s right, title and interest in and to (a) all royalties due, payable or paid to the Seller under Sections 8.1(b), 8.1(c) and 8.2 of the Bausch License Agreement, (b) all payments due, payable or paid to the Seller under Section 8.6 of the Bausch License Agreement in respect of any underpayment of the amounts described in clause (a), (c) all amounts due, payable or paid to the Seller in lieu of the amounts described in clause (a), (d) all amounts recovered by the Seller, or by Bausch paid to the Seller, in excess of litigation costs under Section 12.3(e) of the Bausch License Agreement, (e) all interest that becomes payable in respect of the late payment of any of the amounts referred to in the foregoing clauses (a) through (d) pursuant to Section 8.5 of the Bausch License Agreement, (f) all accounts (as defined under the UCC) evidencing the rights to the payments and amounts described in this definition and (g) all proceeds (as defined under the UCC) of any of the foregoing, in each of cases in clauses (a) through (e), due, payable or paid to the Seller on or after [***].  For the avoidance of doubt, Bausch Royalties shall (x) include all amounts due, payable or paid to the Seller or any of its Affiliates by one or more licensees under any New Arrangement, (y) be computed without reduction for withholding of any Taxes other than withholding in respect of any Purchaser Connection Taxes to the extent properly withheld and remitted to the applicable taxing authority and (z) shall not include any amounts due and payable prior to [***] that is paid on or after [***].

  “Bausch Royalty Reports” means the royalty reports delivered to the Seller pursuant to Section 8.3 of the Bausch License Agreement.

  “Bill of Sale - Purchaser” means that certain bill of sale, dated as of the Closing Date, executed by the Seller and the Purchaser, substantially in the form of Exhibit A-1.

  “Bill of Sale - Seller” means that certain bill of sale, dated as of the Closing Date, executed by the Company and the Seller pursuant to the Contribution Agreement with respect to the Transferred Assets, substantially in the form of Exhibit A-2.

  4

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by Applicable Law to remain closed.

  “Buyout Option” has the meaning set forth in Section 2.3.

  “Change of Control” means (a) any reorganization, recapitalization, consolidation or merger (or similar transaction or series of related transactions) of the Company or issuance, sale or exchange of Equity Interests (or similar transaction or series of related transactions) of the Company in which the beneficial owners (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended) of the Company’s outstanding Equity Interests immediately before consummation of such transaction or series of related transactions do not, immediately after consummation of such transaction or series of related transactions, continue to beneficially own, directly or indirectly, Equity Interests representing more than 50.0% of the voting power of the surviving entity of such transaction or series of related transactions, in each case without regard to whether the Company is the surviving entity, (b) the sale of all or substantially all of the assets of the Company, (c) the Company no longer being the beneficial owner directly or indirectly of 100% of the outstanding Equity Interests of the Seller, (d) the Seller no longer directly owning the Transferred Assets, including 100% of the royalties and milestone payments under the Covered License Agreements, other than the portion payable to the Purchaser hereunder as Purchased Royalties or (e) any other transaction or series of transactions whereby the Company’s economic interests in the Seller are sold, assigned, transferred or conveyed in whole or in part.

  “Change of Control Payment” has the meaning set forth in Section 2.3.

  “Closing” has the meaning set forth in Section 7.1.

  “Closing Date” has the meaning set forth in Section 7.1.

  “Closing Payment” has the meaning set forth in Section 2.2(a).

  “Code” means the U.S. Internal Revenue Code of 1986, as amended, and the regulations thereunder.

  “Commercially Reasonable Efforts” or “Commercially Reasonable Actions” means, with respect to any Intellectual Property Rights in any country, efforts or actions that would be commercially reasonable for an owner and licensor of such Intellectual Property Rights in such country, which owner and licensor is entitled to the full economic benefit of such Intellectual Property Rights without regard to the transactions contemplated by this Purchase and Sale Agreement or any other business of, or assets owned by, such owner and licensor.

  “Company” means Clearside Biomedical, Inc., a Delaware corporation, which is the direct sole parent of the Seller.

  “Competitor” means the Persons set forth on Schedule 1.1 hereto.

  “Confidential Information” has the meaning set forth in Section 9.1.

  “Contribution” means the sale, transfer, assignment, contribution and conveyance by the Company of the Transferred Assets to the Seller pursuant to the Contribution Agreement.

  5

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  “Contribution Agreement” means the Contribution and Servicing Agreement, dated as of the Closing Date, between the Company and the Seller, in the form of Exhibit B hereto.

  “Counterparty” means, as the context requires, Aura, AV, Bausch, REGENX or any licensee or other counterparty to a Future License Agreement. 

  “Covered License Agreements” means the Existing License Agreements and the Future License Agreements.

  “Covered Products” means the Licensed Products and any products that are the subject of a Future License Agreements.

  “Defaulting Party” has the meaning set forth in Section 6.5(d).

  “Disclosing Party” has the meaning set forth in Section 9.1.

  “Disclosure Letter” means that certain Confidential Disclosure Letter, dated as of the date hereof, delivered by the Seller to the Purchaser Agent.

  “Disputes” has the meaning set forth in Section 3.11(h).

  “Dollar” or the sign “$” means United States dollars.

  “Emory” means Emory University. 

  “Emory/GT Consent” has the meaning set forth in Section 7.2(e).

  “Emory/GT License Agreement” means that certain License Agreement, dated as of July 4, 2012, by and among Emory, GT and the Company, as amended by that certain First Amendment, dated on or around April 2, 2014, as amended by that certain Second Amendment on or around December 12, 2016, as amended by that certain Third Amendment dated April 1, 2018, as amended from time to time (but subject to the terms of this Purchase and Sale Agreement with respect to the amendment thereof).

  “Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member, membership or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

  “Equity Pledge Agreement” means the Equity Pledge Agreement, substantially in the form of Exhibit F hereto. 

  “Escrow Agent” means U.S. Bank National Association.

  “Escrow Agreement” means that certain Escrow Agreement, dated as of the date hereof, by and between the Seller, Purchaser Agent and Escrow Agent. 

  6

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  “Excluded Liabilities and Obligations” has the meaning set forth in Section 2.5.

  “Existing Confidentiality Agreement” means that certain letter agreement, dated January 19, 2022, by and between the Company and HealthCare Royalty Management, LLC, an Affiliate of the Purchaser, as amended.

  “Existing License Agreement Royalties” means, collectively, the Aura Royalties, the AV Royalties, the Bausch Royalties and the REGENX Royalties.

  “Existing License Agreements” means, collectively, the Aura License Agreement, the AV License Agreement, the Bausch License Agreement and the REGENX License Agreement.  

  “FDA” means the U.S. Food and Drug Administration and any successor agency thereto.

  “First Milestone Event” has the meaning set forth in Section 2.2(b).

  “First Milestone Payment” has the meaning set forth in Section 2.2(b).

  “Future License Agreement Royalties” means any royalties and milestone payments payable to the Seller under any Future License Agreement. 

  “Future License Agreements” means any and all out-license agreements following the Closing Date for, or related to XIPERE or the SCS Microinjector technology (to be used in connection with compounds or products of any Third Parties) delivered, in whole or in part, by means of the SCS Microinjector technology, excluding, for the avoidance of doubt, any in-licensed or internally developed therapies following the Closing Date, including, but not limited to, those shown on Schedule 1.2 hereto.

  “GAAP” means generally accepted accounting principles in effect in the United States from time to time.

  “Governmental Authority” means the government of the United States, any other nation or any political subdivision thereof, whether state or local, and any agency, authority (including supranational authority), commission, instrumentality, regulatory body, court, central bank or other Person exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including each Patent Office, the FDA and any other government authority in any country.

  “GT” means Georgia Tech Research Corporation.

  “Hard Cap Amount” means, at any given time, the product of (x) the Investment Amount and (y) 2.5, provided, however, that if net sales of XIPERE pursuant to the Bausch License Agreement in calendar year 2024 do not exceed $[***], the “Hard Cap Amount” shall mean, at any given time on or after January 1, 2025, the product of (x) the Investment Amount and (y) 3.4.  The Hard Cap Amount is subject to further adjustment pursuant to Section 2.3.   

  “Intellectual Property Rights” means, all intellectual property, including but not limited to the Patents, trademarks, trademark applications and know-how, used in, relating to or necessary for the sale, manufacture, use, importation or marketing of the Covered Products that is owned or controlled by the Seller, and including, for the avoidance of doubt, the Aura Intellectual Property Rights, the AV Intellectual Property Rights, the Bausch Intellectual Property Rights, the REGENX Intellectual Property Rights and the Platform IP.

  7

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  “Investment Amount” means, as of any time, the sum of (a) the Closing Payment, (b) the First Milestone Payment (if any), (c) the Second Milestone Payment (if any), in each case to the extent actually received by the Seller and (d) the Purchaser Payment Amount (if any).

  “Know-How” means the Aura Know-How, the AV Know-How, the Bausch Know-How and the REGENX Know-How.  

  “Knowledge” means [***].

  “Licensed Products” means, collectively, the Aura Licensed Products, the AV Licensed Products, the Bausch Licensed Products and the REGENX Licensed Products. 

  “Lien” means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or otherwise), charge against or interest in property or other priority or preferential arrangement of any kind or nature whatsoever, including any conditional sale or any sale with recourse, or any other restriction on transfer, other than any Permitted Transfer Restrictions.

  “Lockbox Account” means a segregated deposit account established and maintained at the Account Bank pursuant to an Account Control Agreement.

  “Loss” means any loss, liability, cost, expense (including reasonable costs of investigation and defense and reasonable attorneys’ fees and expenses), charge, fine, penalty, obligation, judgment, award, assessment, claim or cause of action.

  “Material Adverse Effect” means a material adverse effect on (a) the legality, validity or enforceability of any of the Transaction Documents, the Emory/GT License Agreement or any Covered License Agreement, (b) the ability of the Seller or the Company to perform its obligations under any of the Transaction Documents, the Emory/GT License Agreement or any Covered License Agreement, (c) the rights or remedies of the Purchaser under any of the Transaction Documents, the Emory/GT License Agreement or the Covered License Agreements, (d) the right of the Purchaser to receive the Purchased Royalties, the timing, amount or duration of the Purchased Royalties, or the right to receive royalty reports and other information (including audit information) on the terms set forth in the Existing License Agreements, any Future License Agreements and this Purchase and Sale Agreement, or (e) the business of the Seller and its Subsidiaries, taken as a whole.

  “New Arrangement” has the meaning set forth in Section 6.6(a).   

  “Party” shall mean the Seller or the Purchaser or the Purchaser Agent, as the context requires, and “Parties” shall mean, collectively, the Seller, the Purchaser and the Purchaser Agent.

  “Patent Office” means the applicable patent office, including the United States Patent and Trademark Office and any comparable foreign patent office, for any Intellectual Property Rights that are Patents.

  “Patents” means any and all issued patents and pending patent applications, including without limitation, all provisional applications, substitutions, continuations, continuations-in part, divisions, and renewals, all letters patent granted thereon, and all patents-of-addition, reissues, reexaminations and extensions or restorations by existing or future extension or restoration mechanisms (including regulatory extensions), and all supplementary protection certificates, together with any foreign counterparts thereof anywhere, claiming or covering the Covered Products, or composition of matter, formulation, or methods 

  8

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  of manufacture or use thereof, that are issued or filed on or after the Closing Date, in each such case, which are owned or controlled by, issued or licensed to, licensed by, or hereafter acquired or licensed by, the Seller or any Subsidiary of the Seller, and including, for the avoidance of doubt, the Aura Patents, AV Patents, the Bausch Patents, the REGENX Patents.  

  “Payment Direction Letter” means, with respect to each Counterparty, a payment direction letter substantially in the form attached hereto as Exhibit D. 

  “Payment Direction Letters” means, collectively, the Payment Direction Letters required to be delivered pursuant to this Purchase and Sale Agreement.

  “Permitted Platform License” means the non-exclusive license of the Platform IP from the Seller to the Company in the form attached hereto as Exhibit E.

  “Permitted Tax Withholding” means (a) in the case of the AV License Agreement, any Tax withholding expressly permitted under Section 8.11(b) of the AV License Agreement, (b) in the case of the Aura License Agreement, any Tax withholding expressly permitted under Section 4.9 of the Aura License Agreement, (c) in the case of the Bausch License Agreement, any Tax withholding expressly permitted under Section 8.7 of the Bausch License Agreement and (d) in the case of the REGENX License Agreement, any Tax withholding expressly permitted under Section 6.7.1 of the REGENX License Agreement.

  “Permitted Transfer Restrictions” means any restrictions on transfer in any Covered License Agreements or any Permitted Platform License.

  “Person” means any natural person, firm, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, Governmental Authority or any other legal entity, including public bodies, whether acting in an individual, fiduciary or other capacity.

  “Platform IP” means (a) intellectual property used in the performance of the Covered License Agreements relating to SCS Microinjector technology that is or could reasonably be expected to be used in any license agreement relating to SCS Microinjector technology that is not a Covered License Agreement and (b) intellectual property used in the performance of any Covered License Agreement relating to XIPERE that is or could reasonably be expected to be used in other products that is not a Covered License Agreement.

  “Purchase and Sale Agreement” has the meaning set forth in the preamble.

  “Purchased Royalties” means, on any date prior to the Royalty Termination Date, the Existing License Agreement Royalties and the Future License Agreement Royalties. 

  “Purchaser” has the meaning set forth in the preamble.

  “Purchaser Account” has the meaning set forth in Section 6.4(b).

  “Purchaser Agent” has the meaning set forth in the preamble.

  “Purchaser Connection Tax” means any Tax to the extent that it would not be imposed but for (i) any present or former connection of the Purchaser with the jurisdiction of the applicable taxing authority 

  9

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  (other than a connection arising from this Purchase and Sale Agreement and/or any transactions contemplated hereby) or (ii) any failure of the Purchaser to provide any applicable documentation that is reasonably requested by the applicable withholding agent and that the Purchaser is legally eligible to provide.

  “Purchaser Payment Amount” has the meaning set forth in Section 6.8(c).

  “Purchaser Expenses” means all documented third party expenses incurred by Purchaser in connection with the transactions contemplated by this Purchase and Sale Agreement on or prior to the Closing, in each case, to the extent invoiced by Purchaser to the Company or the Seller prior to the Closing Date.

  “Purchaser Indemnified Party” has the meaning set forth in Section 8.1.

  “Purchaser Indemnified Tax” means any withholding Tax (other than U.S. federal withholding Tax or a Purchaser Connection Tax) withheld by any licensee, Seller, or any other applicable withholding agent in respect of any payment made to the Purchaser pursuant to this Purchase and Sale Agreement.

  “Put Option Event” shall have the meaning set forth in the Equity Pledge Agreement.

  “Receiving Party” has the meaning set forth in Section 9.1.	

  “REGENX” means REGENXBIO Inc., a Delaware corporation.

  “REGENX Intellectual Property Rights” means, collectively, REGENX Know-How and REGENX Patents, to the extent licensed to REGENX under the REGENX License Agreement.

  “REGENX Know-How” has the meaning given to the term “Clearside Know-How” in Section 1.19 of the REGENX License Agreement.

  “REGENX License Agreement” means that certain Option and License Agreement, dated as of August 29, 2019, by and between REGENX and the Company, including REGENX’s exercise of its Option thereunder, as amended from time to time (but subject to the terms of this Purchase and Sale Agreement with respect to the amendment thereof). 

  “REGENX Licensed Products” has the meaning given to the term “Covered Product” in Section 1.35 of the REGENX License Agreement. 

  “REGENX Patents” has the meaning given to the term “Clearside Patent Right” in Section 1.21 of the REGENX License Agreement.

  “REGENX Related Agreement” means that certain Technology Access Agreement, dated as of May 23, 2019, by and between REGENX and the Company.

  “REGENX Royalties” means all of the Seller’s right, title and interest in and to (a) all amounts due, payable or paid to the Seller under Sections 6.2, 6.3, 6.4 or 10.2.5(b)(ii) of the REGENX License Agreement, (b) all payments due, payable or paid to the Seller otherwise under Section 6.9 of the REGENX License Agreement in respect of any underpayment of the amounts described in clause (a), (c) all amounts due, payable or paid to the Seller in lieu of the amounts described in clause (a), (d) all amounts recovered by the Seller, or by REGENX and paid to the Seller, in excess of litigation costs under 

  10

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  Section 7.2.2 of the REGENX License Agreement, (e) all interest that becomes payable in respect of the late payment of any of the amounts referred to in the foregoing clauses (a) through (d) pursuant to Section 6.6 of the REGENX License Agreement, (f) all accounts (as defined under the UCC) evidencing the rights to the payments and amounts described in this definition and (g) all proceeds (as defined under the UCC) of any of the foregoing, in each of cases in clauses (a) through (e), due, payable or paid to the Seller on or after [***].  For the avoidance of doubt, REGENX Royalties shall (x) include all amounts due, payable or paid to the Seller or any of its Affiliates by one or more licensees or sublicensees under any New Arrangement, (y) be computed without reduction for withholding of any Taxes other than withholding in respect of any Purchaser Connection Taxes to the extent properly withheld and remitted to the applicable taxing authority and (z) shall not include any amounts due and payable prior to [***] that is paid on or after [***].

  “REGENX Royalty Reports” means the royalty reports delivered to the Seller by REGENX pursuant to Section 6.5 of the REGENX License Agreement.

  “Regulatory Agency” means a Governmental Authority with responsibility for the approval of the marketing and sale of pharmaceuticals or other regulation of pharmaceuticals in any country.

  “Regulatory Approval” means, collectively, all regulatory approvals, registrations, certificates, authorizations, permits and supplements thereto, as well as associated materials (including the product dossier) pursuant to which the Licensed Products may be marketed, sold and distributed by Aura, AV, Bausch or REGENX, as the case may be, in a jurisdiction, issued by the appropriate Regulatory Agency.

  “Royalty Reduction” has the meaning set forth in Section 3.13(f).

  “Royalty Reports” means the Aura Royalty Reports, the AV Royalty Reports, the Bausch Royalty Reports, the REGENX Royalty Reports and any royalty reports delivered to the Seller pursuant to any Future License Agreement.

  “Royalty Termination Date” means the earlier of (a) date on which the Total Net Amount equals the Hard Cap Amount or (b) the date of the last royalty or milestone payment under the Covered License Agreements.  

  “SCS Microinjector” means the proprietary medical device of the Seller described on Exhibit 1.34 of the Bausch License Agreement, and any improvements and enhancements thereof made by or on behalf of the Seller and its Affiliates. 

  “SEC” means the U.S. Securities and Exchange Commission.

  “Second Milestone Event” has the meaning set forth in Section 2.2(c).

  “Second Milestone Payment” has the meaning set forth in Section 2.2(c).

  “Seller” has the meaning set forth in the preamble.

  “Seller Account” has the meaning set forth in Section 6.4(d).

  “Seller Indemnified Party” has the meaning set forth in Section 8.2.

  “Set-off” means any set-off or off-set.

  11

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  “Subsidiary” means, with respect to any Person, any other Person of which more than 50% of the outstanding Equity Interests of such other Person (irrespective of whether at the time Equity Interests of any other class or classes of such other Person shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more other Subsidiaries of such Person or by one or more other Subsidiaries of such Person.

  “Tax” or “Taxes” means any U.S. federal, state, local or non-U.S. income, gross receipts, license, payroll, employment, excise, severance, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, escheat or unclaimed property, sales, use, value added, alternative or add-on minimum, estimated or other tax of any kind whatsoever, including, in each case, (a) any interest, penalty or addition thereto and (b) whether disputed or not. 

  “Third Party” means any Person that is not a Party.

  “Third Party Claim” means any claim, action, suit or proceeding by a Third Party, including any investigation by any Governmental Authority.

  “Total Net Amount” means, as of any time, the aggregate payments remitted to or otherwise received by Purchaser on or prior to such time pursuant to the Transaction Documents (which shall be computed, for the avoidance of doubt, by (a) including any additional amounts payable to Purchaser pursuant to Section 6.9(a) in respect of any Purchaser Indemnified Taxes and (b) excluding any amounts withheld in respect of any Purchaser Indemnified Taxes (including in respect of any additional amounts payable pursuant to Section 6.9(a) to the extent such amounts are properly withheld and remitted to the applicable taxing authority)).

  “Transaction Documents” means this Purchase and Sale Agreement, the Account Control Agreement, the Bill of Sale, the Contribution Agreement, the Equity Pledge Agreement and the Payment Direction Letters. 

  “Transferred Assets” has the meaning set forth in the Contribution Agreement. 

  “UCC” means the Uniform Commercial Code as in effect from time to time in the State of Delaware; provided, that, if, with respect to any financing statement or by reason of any provisions of law, the perfection or the effect of perfection or non-perfection of the back-up security interest or any portion thereof granted pursuant to Section 2.1(d) is governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States other than the State of Delaware, then “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions of this Purchase and Sale Agreement and any financing statement relating to such perfection or effect of perfection or non-perfection.

  “U.S.” or “United States” means the United States of America, its 50 states, each territory thereof and the District of Columbia.

  “XIPERE” means XIPERE® (triamcinolone acetonide injectable suspension) 40 mg/mL, for suprachoroidal use.

  Section 1.2	Rules of Construction.  

  (a)	Unless the context otherwise requires, in this Purchase and Sale Agreement:

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  (i)	a term has the meaning assigned to it and an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

  (ii)	unless otherwise defined, all terms that are defined in the UCC shall have the meanings stated in the UCC;

  (iii)	words of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders;

  (iv)	the terms “include,” “including” and similar terms shall be construed as if followed by the phrase “without limitation”;

  (v)	unless otherwise specified, references to a contract or agreement include references to such contract or agreement as from time to time amended, restated, reformed, supplemented or otherwise modified in accordance with its terms (subject to any restrictions on such amendments, restatements, reformations, supplements or modifications set forth herein), and include any annexes, exhibits and schedules hereto or thereto, as the case may be;

  (vi)	any reference to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignment, transfer or delegation set forth herein or in any of the other Transaction Document) and any reference to a Person in a particular capacity excludes such Person in other capacities;

  (vii)	references to any Applicable Law shall include such Applicable Law as from time to time in effect, including any amendment, modification, codification, replacement, or reenactment thereof or any substitution therefor;

  (viii)	the word “will” shall be construed to have the same meaning and effect as the word “shall”;

  (ix)	the words “hereof,” “herein,” “hereunder” and similar terms shall refer to this Purchase and Sale Agreement as a whole and not to any particular provision hereof, and Article, Section and Exhibit references herein are references to Articles and Sections of, and Exhibits to, this Purchase and Sale Agreement unless otherwise specified;

  (x)	the definitions of terms shall apply equally to the singular and plural forms of the terms defined;

  (xi)	in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and each of the words “to” and “until” means “to but excluding”; and

  (xii)	where any payment is to be made, any funds are to be applied or any calculation is to be made under this Purchase and Sale Agreement on a day that is not a Business Day, unless this Purchase and Sale Agreement otherwise provides, such payment shall be made, such funds shall be applied and such calculation shall be made on the succeeding Business Day, and payments shall be adjusted accordingly.

  (b)	The provisions of this Purchase and Sale Agreement shall be construed according to their fair meaning and neither for nor against any Party irrespective of which Party caused such provisions to be 

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  drafted.  Each Party acknowledges that it has been represented by an attorney in connection with the preparation and execution of this Purchase and Sale Agreement and the other Transaction Documents.

  ARTICLE II
PURCHASE AND SALE OF THE PURCHASED ROYALTIES

  Section 2.1	Purchase and Sale.

  (a)	Subject to the terms and conditions of this Purchase and Sale Agreement, on the Closing Date, the Seller hereby sells, contributes, assigns, transfers, conveys and grants to the Purchaser, and the Purchaser hereby purchases, acquires and accepts from the Seller, all of the Seller’s rights, title and interest in and to the Purchased Royalties, free and clear of any and all Liens, other than those Liens created under the Transaction Documents.

  (b)	The Seller and the Purchaser intend and agree that the sale, contribution, assignment, transfer, conveyance and granting of the Purchased Royalties under this Purchase and Sale Agreement shall be, and are, a true, complete, absolute and irrevocable assignment and sale by the Seller to the Purchaser of the Purchased Royalties (including U.S. federal income tax purposes) and that such assignment and sale shall provide the Purchaser with the full benefits of ownership of the Purchased Royalties.  Neither the Seller nor the Purchaser intends the transactions contemplated hereby to be, or for any purpose (including U.S. federal income tax purposes) characterized as, a loan from the Purchaser to the Seller or a pledge or assignment or a security agreement.  The Seller waives any right to contest or otherwise assert that this Purchase and Sale Agreement does not constitute a true, complete, absolute and irrevocable sale and assignment by the Seller to the Purchaser of the Purchased Royalties under Applicable Law, which waiver shall be enforceable against the Seller or the Company, as applicable, in any Bankruptcy Event in respect of the Seller, or the Company, as applicable.  The sale, contribution, assignment, transfer, conveyance and granting of the Purchased Royalties shall be reflected on the Company’s financial statements and other records as a sale of assets to the Purchaser (except to the extent GAAP or the rules of the SEC require otherwise with respect to the Seller’s consolidated financial statements).

  (c)	The Seller hereby authorizes the Purchaser Agent to execute, record and file, and consents to the Purchaser Agent executing, recording and filing, at the Purchaser’s sole cost and expense, financing statements in the appropriate filing offices under the UCC (and continuation statements with respect to such financing statements when applicable), and amendments thereto, in such manner and in such jurisdictions as are necessary or appropriate to evidence or perfect the sale, contribution, assignment, transfer, conveyance and grant by the Seller to the Purchaser, and the purchase, acquisition and acceptance by the Purchaser from the Seller, of the Purchased Royalties and to perfect the security interest in the Purchased Royalties granted by the Seller to the Purchaser pursuant to Section 2.1(d).

  (d)	Notwithstanding that the Seller and the Purchaser expressly intend for the sale, contribution, assignment, transfer, conveyance and granting of the Purchased Royalties to be a true, complete, absolute and irrevocable sale and assignment, the Seller hereby assigns, conveys, grants and pledges to the Purchaser, as security for its obligations created hereunder in the event that the transfer contemplated by this Purchase and Sale Agreement is held not to be a sale, a first priority security interest in and to all of the Seller’s right, title and interest in, to and under the Purchased Royalties and, in such event, this Purchase and Sale Agreement shall constitute a security agreement.

  (e)	Upon the occurrence of the Royalty Termination Date, the Purchaser and the Purchaser Agent authorize the Seller to execute, record and file, and consents to the Seller executing, recording and filing, at the Seller’s sole cost and expense, financing termination statements in the appropriate filing offices 

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  under the UCC for all UCC financing statements (and continuation statements with respect to such financing statements when applicable), and amendments thereto, in such manner and in such jurisdictions as are necessary or appropriate to evidence or effectuate the release and discharge of all such security interests and liens created pursuant to the Transaction Documents.

  Section 2.2	Payment of the Investment Amount.  In full consideration for the sale, transfer, conveyance and granting of the Purchased Royalties, and subject to the terms and conditions set forth herein, the Purchaser shall make the following payments:

  (a)	Closing Payment: Within [***] after the Closing, an amount equal to FORTY-FIVE MILLION DOLLARS ($45,000,000) minus the Purchaser Expenses and minus TWELVE MILLION FIVE HUNDRED THOUSAND DOLLARS ($12,500,000) (the “First Milestone Payment”), in immediately available funds by wire transfer to the Seller Account which may be transferred by the Seller to the Company (the “Closing Payment”).  Concurrently with the payment of the Closing Payment, the Purchaser shall deposit the First Milestone Payment with the Escrow Agent to be held in accordance with the Escrow Agreement. 

  (b)	First Milestone Payment: Within [***] after receipt by the Purchaser of a Royalty Report demonstrating that cumulative net sales of XIPERE pursuant to the Bausch License Agreement through March 31, 2024 exceeded [***] (the “First Milestone Event”), the First Milestone Payment (which shall be funded in accordance with the terms of the Escrow Agreement).  In the event that the First Milestone Event is not achieved, the First Milestone Payment shall be released to the Purchaser.

  (c)	Second Milestone Payment: After receipt by the Purchaser of a Royalty Report demonstrating that calendar year 2024 XIPERE net sales pursuant to the Bausch License Agreement exceeded [***] (the “Second Milestone Event”), an amount equal to TWENTY MILLION DOLLARS ($20,000,000) (the “Second Milestone Payment”), which shall be funded by the Purchaser, at the Purchaser’s option, either (x) by wire transfer of immediately available funds to the Seller Account or (y) the Purchaser delivering a written instruction to the Account Bank directing that all payments received in the Lockbox Account be released to the Seller until such time as the amount of such payments equals the amount of the Second Milestone Payment.

  (d)	Notwithstanding anything to the contrary herein, the Purchaser shall have the right to fund either or both of the First Milestone Payment or the Second Milestone Payment at the Purchaser’s option in the event that the First Milestone Event or the Second Milestone Event, respectively, are not achieved.

  (e)	Notwithstanding anything to the contrary herein, the Purchaser shall have the right, but not the obligation, to deduct any Purchaser Payment Amount from the First Milestone Payment or the Second Milestone Payment.

  Section 2.3	Change of Control Payment.  Upon the occurrence of a Change of Control, the Seller shall promptly pay to the Purchaser the Hard Cap Amount less the Total Net Amount as of such date (the “Change of Control Payment”); provided, however, that the Seller shall, in lieu of the foregoing, have the option to instead pay one hundred percent (100%) of the Investment Amount outstanding as of the date of such Change of Control, less the Total Net Amount as of such date (the “Buyout Option”).  If the Seller exercises the Buyout Option, the Purchaser shall continue to be entitled to the amounts payable to the Purchaser solely from Purchased Royalties in the same manner, and on the same terms as in effect prior to the Change of Control, provided, however, that (i) the Hard Cap Amount shall be increased to an amount equal to the product of 3.4 and the Investment Amount and (ii) in the case of an acquisition of all 

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  or substantially all assets of the Seller, the purchaser thereof, shall assume the obligations of the Seller on an unsecured basis. 

  Section 2.4	Prepayment.  At any time, the Seller shall have the right, but not the obligation, to pay to the Purchaser the Hard Cap Amount less the Total Net Amount as of such date, by wire transfer of immediately available funds to an account designated in writing by the Purchaser Agent, and upon such payment, no further payments of the Purchased Royalties are due to the Purchaser hereunder and the Royalty Termination Date shall be deemed to have occurred. 

  Section 2.5	No Assumed Obligations.  Notwithstanding any provision in this Purchase and Sale Agreement or any other writing to the contrary, the Purchaser is purchasing, acquiring and accepting only the Purchased Royalties and is not assuming any liability or obligation of the Seller or any of the Seller’s Affiliates of whatever nature, whether presently in existence or arising or asserted hereafter, including any liability or obligation of the Seller under the Existing License Agreements.  All such liabilities and obligations shall be retained by, and remain liabilities and obligations of, the Seller or the Seller’s Affiliates, as the case may be (the “Excluded Liabilities and Obligations”).

  Section 2.6	Excluded Assets.  The Purchaser does not, by purchase, acquisition or acceptance of the right, title or interest granted hereunder or otherwise pursuant to any of the Transaction Documents, purchase, acquire or accept any assets or contract rights of the Seller under any of the Covered License Agreements, other than the Purchased Royalties, or any other assets of the Seller.

  ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE SELLER

  Except as set forth on the Disclosure Letter, the Seller hereby makes each of the following representations and warranties to the Purchaser, as of the date hereof, in each case, after giving effect to the Contribution, as follows:

  Section 3.1	Organization.  The Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has all limited liability company power and authority, and all licenses, permits, franchises, authorizations, consents and approvals of all Governmental Authorities, required to own its property and conduct its business, as now conducted, and to exercise its rights and to perform its obligations under the Existing License Agreements and the Emory/GT License Agreement.  The Seller is duly qualified to transact business and is in good standing in every jurisdiction in which such qualification or good standing is required by Applicable Law (except where the failure to be so qualified or in good standing would not have a Material Adverse Effect).  

  Section 3.2	No Conflicts.

  (a)	The execution and delivery by the Seller of any of the Transaction Documents, the performance by the Seller of its obligations hereunder or thereunder or the consummation by the Seller of the transactions contemplated hereby or thereby will not (i) contravene, conflict with or violate any term or provision of any of the organizational documents of the Seller or any of its Subsidiaries, (ii) contravene, conflict with or violate, or give any Governmental Authority or other Person the right to exercise any remedy or obtain any relief under, any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to which the Seller or any of its Subsidiaries or any of their respective assets or properties may be subject or bound, except as would not have a Material Adverse Effect, (iii) result in a breach or violation of, constitute a default (with or without notice or lapse 

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  of time, or both) under, or give any Person the right to exercise any remedy or obtain any additional rights under, or accelerate the maturity or performance of, or payment under, or cancel or terminate, (A) except as would not have a Material Adverse Effect, any contract, agreement, indenture, lease, license, deed, commitment, obligation or instrument to which the Seller or any of its Subsidiaries is a party or by which the Seller or any of its Subsidiaries or any of their respective assets or properties is bound or committed (other than an Existing License Agreement) or (B) any Existing License Agreement or the Emory/GT License Agreement, or (iv) except as provided in any of the Transaction Documents or any Permitted Platform License, result in or require the creation or imposition of any Lien on the Intellectual Property Rights, the Licensed Products, the Existing License Agreements or the Purchased Royalties.

  (b)	The Seller has not granted, nor does there exist, any Lien on or relating to the Existing License Agreements, the Intellectual Property Rights or the Licensed Products other than any Permitted Platform License.  Except for Liens created under the Transaction Documents, the Seller has not granted, nor does there exist, any Lien on or relating to the Purchased Royalties.  Except for (i) the license granted by the Seller to each Counterparty under the Existing License Agreements, (ii) any sublicense by a Counterparty to a Third Party and (iii) any Permitted Platform License, there are no licenses, sublicenses or other rights under the Intellectual Property Rights that have been granted to any Third Party.

  Section 3.3	Authorization.  The Seller has all necessary limited liability company power and authority to execute and deliver the Transaction Documents, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  The execution and delivery of each of the Transaction Documents and the performance by the Seller of its obligations hereunder and thereunder have been duly authorized by all necessary corporate action on the part of the Seller.  Each of the Transaction Documents has been duly executed and delivered by an authorized officer of the Seller.  Each of the Transaction Documents constitutes the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, general equitable principles and principles of public policy.

  Section 3.4	Ownership.  The Seller is the exclusive owner, or exclusive licensee, of the entire right, title (legal and equitable) and interest in, to and under the Purchased Royalties and the Intellectual Property Rights, other than any Permitted Platform License.  The Seller has duly and legally filed or applied for registration for its ownership interest in the Patents included in the Intellectual Property Rights, including the Patents listed on Schedule 3.4 to the Disclosure Letter, in the appropriate agencies and in the jurisdictions listed on Schedule 3.4 to the Disclosure Letter.  The Purchased Royalties sold, contributed, assigned, transferred, conveyed and granted to the Purchaser on the Closing Date have not been pledged, sold, contributed, assigned, transferred, conveyed or granted by the Seller to any other Person.  The Seller has full right to sell, contribute, assign, transfer, convey and grant the Purchased Royalties to the Purchaser.  Upon the sale, contribution, assignment, transfer, conveyance and granting by the Seller of the Purchased Royalties to the Purchaser, the Purchaser shall acquire good and marketable title to the Purchased Royalties free and clear of all Liens, other than those Liens created under the Transaction Documents, and shall be the exclusive owner of the Purchased Royalties.  The Purchaser shall have the same rights as the Seller would have with respect to the Purchased Royalties (if the Seller were still the owner of such Purchased Royalties) against any other Person.

  Section 3.5	Governmental and Third Party Authorizations.  The execution and delivery by the Seller of the Transaction Documents, the performance by the Seller of its obligations hereunder and thereunder and the consummation by the Seller of the transactions contemplated hereby and thereby do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by, or filing with, any Governmental Authority or any other Person, except for (i) the filing of 

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  a Current Report on Form 8-K with the SEC, (ii) the filing of UCC financing statements, and (iii) the delivery of the Payment Direction Letters to Aura, AV, Bausch and REGENX and the Emory/GT Consent and the Bausch Consent.

  Section 3.6	No Litigation.  

  (a)	There is no action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena or other proceeding (whether civil, criminal, administrative, regulatory or informal) (i) pending or, to the Knowledge of the Seller, threatened in writing by or against the Seller or any of its Subsidiaries or (ii) pending against the Seller or, to the Knowledge of the Seller, pending or threatened by or against Aura, AV, Bausch or REGENX, their Affiliates, or any of their sublicensees, in each case, in respect of the Existing License Agreements, the Intellectual Property Rights, the Licensed Products or the Purchased Royalties, at law or in equity, that (i) would reasonably be expected to result in a liability to the Seller in excess of [***]or (ii) challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which the Seller is party.

  (b)	There is no inquiry or investigation (whether civil, criminal, administrative, regulatory, investigative or informal) by or before a Governmental Authority (i) pending or, to the Knowledge of the Seller, threatened in writing against the Seller or any of its Subsidiaries or (ii) pending against the Seller or, to the Knowledge of the Seller, pending or threatened by or against Aura, AV, Bausch or REGENX, in each case in respect of the Existing License Agreements, the Emory/GT License Agreement, the Intellectual Property Rights, the Licensed Products or the Purchased Royalties, that (i) would reasonably be expected to result in a liability to the Seller in excess of [***] or (ii) challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which the Seller is party.

  (c)	To the Knowledge of the Seller, no event has occurred or circumstance exists that may give rise to or serve as a basis for the commencement of any such action, suit, arbitration proceeding, claim, investigation, proceeding, inquiry or investigation referred to in Section 3.6(a) or 3.6(b).

  Section 3.7	Solvency.  Immediately after giving effect to the consummation of the transactions contemplated by the Transaction Documents and the application of the proceeds therefrom, (a) the fair value of the Seller’s assets will be greater than the sum of its debts, liabilities and other obligations, including contingent liabilities, (b) the present fair saleable value of the Seller’s assets will be greater than the amount that would be required to pay its probable liabilities on its existing debts, liabilities and other obligations, including contingent liabilities, as they become absolute and matured in the normal course of business, (c) the Seller will be able to realize upon its assets and pay its debts, liabilities and other obligations, including contingent obligations, as they mature, (d) the Seller will not have unreasonably small capital with which to engage in its business, as now conducted and as proposed to be conducted following the Closing Date, (e) the Seller does not have any present plans or intentions to incur debts or other obligations or liabilities beyond its ability to pay such debts or other obligations or liabilities as they become absolute and matured, (f) the Seller will not have become subject to any Bankruptcy Event and (g) the Seller will not have been rendered insolvent within the meaning of Section 101(32) of Title 11 of the United States Code.  For purposes of this Section 3.7, the amount of all contingent obligations at any time shall be computed as the amount that, in light of all facts and circumstances existing at such time, can reasonably be expected to become an actual or matured liability.

  Section 3.8	Tax Matters. 

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  (a)	No deduction or withholding for or on account of any Tax has been made from any payment to the Seller under any Existing License Agreement.  No applicable withholding agent under any Existing License Agreement or any taxing authority has ever notified the Seller that any such withholding was required or would have been required absent the Seller’s qualification for benefits under an applicable income Tax treaty.

  (b)	There are no existing Liens for Taxes on the Purchased Royalties (or any portion thereof).

  (c)	As of the Closing Date, the Seller will be treated as an entity that is disregarded from the Company, a Delaware corporation, for U.S. federal income tax purposes. 

  Section 3.9	No Brokers’ Fees.  The Seller has not taken any action that would entitle any person or entity other than JMP Group LLC, whose fees will be paid by the Company, to any commission or broker’s fee in connection with the transactions contemplated by this Purchase and Sale Agreement.

  Section 3.10	Compliance with Laws.  None of the Seller or any of its Subsidiaries (a) has violated or is in violation of, has been given notice of any violation of, or, to the Knowledge of the Seller, is under investigation with respect to or has been threatened to be charged with, any violation of, any Applicable Law or any judgment, order, writ, decree, injunction, stipulation, consent order, permit or license granted, issued or entered by any Governmental Authority or (b) is subject to any judgment, order, writ, decree, injunction, stipulation or consent order issued or entered by any Governmental Authority.

  Section 3.11	Intellectual Property Matters. 

  (a)	Schedule 3.11 to the Disclosure Letter sets forth an accurate and complete list of all issued Patents and pending Patent applications covering the Covered Products.  For each Patent listed on Schedule 3.11 to the Disclosure Letter the Seller has indicated (i) the countries in which such Patent is pending, allowed, granted or issued, (ii) including a notation of any term extensions, the patent number and/or patent application serial number, (iii) the scheduled expiration date of each such issued Patent, (iv) the expected scheduled expiration date of each Patent issuing from such pending Patent application once issued and (v) the registered owner thereof.

  (b)	The Seller is the sole and exclusive owner or licensee of each of the Patents listed on Schedule 3.11 to the Disclosure Letter and each of the inventions claimed in such Patents.

  (c)	To the Knowledge of the Seller, in each Aura Patent listed on Schedule 3.11 to the Disclosure Letter, there is at least one valid claim covering the manufacture, use, import, offering for sale, or sale of the Aura Licensed Products.  

  (d)	To the Knowledge of the Seller, in each AV Patent listed on Schedule 3.11 to the Disclosure Letter, there is at least one valid claim covering the manufacture, use, import, offering for sale, or sale of the AV Licensed Products.

  (e)	To the Knowledge of the Seller, in each Bausch Patent listed on Schedule 3.11 to the Disclosure Letter, there is at least one valid claim covering the manufacture, use, import, offering for sale, or sale of XIPERE.

  (f)	To the Knowledge of the Seller, in each REGENX Patent listed on Schedule 3.11 to the Disclosure Letter, there is at least valid claim covering the manufacture, use, import, offering for sale, or sale of the REGENX Licensed Products.

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  (g)	There are no unpaid maintenance or renewal fees payable by the Seller to any Third Party that currently are overdue for any of the Patents.  No Patents listed on Schedule 3.11 to the Disclosure Letter have lapsed or been abandoned, cancelled or expired.  

  (h)	To the Knowledge of the Seller, each Person who has or has had any rights in or to the Patents, including each inventor named on the Patents, has executed a contract assigning his, her or its entire right, title and interest in and to such Patents and the inventions embodied, described and or claimed therein, to the owner thereof, and each such contract has been duly recorded at the applicable Patent Office.

  (i)	To the Knowledge of the Seller, each individual associated with the filing and prosecution of the Patents, including the named inventors of the Patents, has complied in all material respects with all applicable duties of candor and good faith in dealing with any Patent Office, including any duty to disclose to any Patent Office all information known by such inventors to be material to the patentability of the Patents (including any relevant prior art), in each case, in those jurisdictions where such duties exist.

  (j)	Subsequent to the issuance of each Patent, neither the Seller nor, to the Knowledge of the Seller, any Counterparty, has filed any disclaimer or made or permitted any other voluntary reduction in the scope of such Patent.  

  (k)	There is no pending or, to the Knowledge of the Seller, threatened opposition, interference, reexamination, injunction, claim, suit, action, citation, summon, subpoena, hearing, inquiry, investigation (by the International Trade Commission or otherwise), complaint, arbitration, mediation, demand, decree or other dispute, disagreement, proceeding or claim (collectively, “Disputes”) challenging the legality, validity, scope, enforceability or ownership of any of the Intellectual Property Rights or that would give rise to any Royalty Reduction against the payments due to the Seller under the Existing License Agreements.  To the Knowledge of the Seller, there are no pending or threatened Disputes by any Counterparty, or their Affiliates or sublicensees, challenging the legality, validity, scope, enforceability or ownership of any of the Intellectual Property Rights or that would give rise to any Royalty Reduction against the payments due to the Seller under the Existing License Agreements.  There are no Disputes by or with any Third Party against the Seller or, to the Knowledge of the Seller, any Counterparty or any of its sublicensees involving any of the Licensed Products.  The Intellectual Property Rights are not subject to any outstanding injunction, judgment, order, decree, ruling, change, settlement or other disposition of a Dispute.  There are no proceedings, other than proceedings in the ordinary course of patent prosecution and except as set forth in Schedule 3.11(k) to the Disclosure Letter, with respect to the Patents listed on Schedule 3.11 to the Disclosure Letter.  

  (l)	There is no pending action, suit, proceeding, investigation or claim and, to the Knowledge of the Seller, there is no threatened action, suit, proceeding, investigation or claim, and, to the Knowledge of the Seller, no event has occurred or circumstance exists that (with or without notice or lapse of time, or both) would reasonably be expected to give rise to or serve as a basis for any action, suit, proceeding, investigation or claim by any Person that claims that the manufacture, use, marketing, sale, offer for sale, importation or distribution of any Product does or could infringe on any patent or other intellectual property rights of any Third Party or constitute misappropriation of any other Person’s trade secrets or other intellectual property rights.  

  (m)	To the Knowledge of the Seller, except as set forth on Schedule 3.11 to the Disclosure Letter, there are no patents issued, and no pending patent applications with claims reasonably likely to issue, owned by any Third Party that, if issued, would limit or prohibit in any material respect the manufacture, use or sale of any Product by the Seller, any Counterparty or any of their respective 

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  sublicensees or that would give rise to any Royalty Reduction against the payments due to the Seller under the Existing License Agreements.

  (n)	XIPERE is a Bausch Licensed Product. 

  (o)	To the Knowledge of the Seller, except as set forth on Schedule 3.11 to the Disclosure Letter, there is no Person infringing any of the Intellectual Property Rights, nor has the Seller received any notice under any of the Existing License Agreements or put any Person on notice, of actual or alleged infringement of any of the Intellectual Property Rights.

  (p)	The Seller and, to the Knowledge of the Seller, each of Aura, AV, Bausch and REGENX has taken all reasonable precautions to protect the secrecy, confidentiality and/or value of the applicable Know-How.

  (q)	The Intellectual Property Rights constitutes all of the intellectual property owned or licensed by the Seller or any of the Seller’s Affiliates that is, to the Seller’s Knowledge, necessary or useful for the manufacture, use or sale of the Licensed Products.

  (r)	No legal opinion concerning or with respect to any Third Party intellectual property rights relating to the Licensed Products, including any freedom-to-operate, product clearance, patentability, validity or right-to-use opinion, has been delivered to the Seller. 

  (s)	There is no Person who is or claims to be an inventor under any Patent who is not a named inventor thereof.  The list of inventors named in each issued and unexpired Patent listed on Schedule 3.11 to the Disclosure Letter is current and complete.

  Section 3.12	Regulatory Approval and Marketing.

  (a)	To the Knowledge of the Seller, each Counterparty is in compliance with its material obligations to seek and obtain Regulatory Approval for the Licensed Products to the extent required by the applicable Existing License Agreement.

  (b)	To the Knowledge of the Seller, each of the Licensed Products listed on Schedule 3.12 to the Disclosure Letter has received Regulatory Approval for marketing and distribution for the indications and in the countries listed.

  Section 3.13	Counterparty Agreements.

  (a)	Other than the Transaction Documents, any Permitted Platform License, the REGENX Related Agreement, the Existing License Agreements and the agreements set forth on Schedule 3.13(a) to the Disclosure Letter, there is no contract, agreement or other arrangement (whether written or oral) to which the Seller or any of its Subsidiaries is a party or by which any of their respective assets or properties is bound or committed that affects or otherwise relates to the Purchased Royalties, the Existing License Agreements or the Intellectual Property Rights and that are material to the interest of the Purchaser.

  (b)	Attached as Exhibits G-1, G-2, G-3 and G-4 are true, correct and complete copies of the Existing License Agreements.  The Seller has provided to the Purchaser Agent true, correct and complete copies of (i) all Aura Royalty Reports, AV Royalty Reports, Bausch Royalty Reports and REGENX Royalty Reports and (ii) all material notices and correspondence delivered to the Seller by the 

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  Counterparties or by the Seller to the Counterparties pursuant to, or relating to, the Existing License Agreements.

  (c)	Each of the Existing License Agreements is in full force and effect and is the legal, valid and binding obligation of the Seller and, to the Knowledge of the Seller, each Counterparty, enforceable against the Seller and, to the Knowledge of the Seller, each Counterparty in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, general equitable principles and principles of public policy.  The Seller is not in breach or violation of or in default under any of the Existing License Agreements.  There is no event or circumstance that, upon notice or the passage of time, or both, would constitute or give rise to any breach or default in the performance of any of the Existing License Agreements by the Seller or, to the Knowledge of the Seller, any Counterparty.

  (d)	The Seller has not waived any rights or defaults under the Existing License Agreements or released any Counterparty, in whole or in part, from any of its obligations under any of the Existing License Agreements.  There are no oral waivers or modifications (or pending requests therefor) in respect of any of the Existing License Agreements.  Neither the Seller nor any Counterparty has agreed to amend or waive any provision of the Existing License Agreements, and the Seller has not received or submitted any proposal to do so.

  (e)	No event has occurred that would give the Seller, or to the Knowledge of the Seller, any Counterparty the right to terminate any of the Existing License Agreements or cease paying Purchased Royalties under any of the Existing License Agreements.  The Seller has not received any notice of an intention by any Counterparty to terminate or breach any of the Existing License Agreements, in whole or in part, or challenging the validity or enforceability of any of the Existing License Agreements or the obligation to pay the Purchased Royalties under any of the Existing License Agreements, or alleging that the Seller or any Counterparty is currently in default of its obligations under any of the Existing License Agreements.  To the Knowledge of the Seller, there is and has been no default, violation or breach of any Counterparty under any of the Existing License Agreements.  The Seller has no intention of terminating any of the Existing License Agreements and has not given any Counterparty any notice of termination of any of the Existing License Agreements, in whole or in part.

  (f)	Except as provided in the Existing License Agreements, the Seller is not a party to any agreement providing for any sharing of, or providing for or permitting any right of counterclaim, credit, reduction or deduction by contract or otherwise (a “Royalty Reduction”) or permitting any Set-off against, the Purchased Royalties.  The royalties payable to Seller under Section 4.4.1 of the Aura License Agreement are not subject to reduction pursuant to Section 4.4.5 of the Aura License Agreement.  The royalty rate set forth in Section 6.4.1. of the REGENX License Agreement is not subject to reduction pursuant to Section 6.4.2 of the REGENX License Agreement.

  (g)	The Seller has not consented to an assignment by any Counterparty of any of such Counterparty’s rights or obligations under any Existing License Agreement, and the Seller does not have Knowledge of any such assignment by any Counterparty.  Except as contemplated by Section 2.1(a) and Section 2.1(d) and except pursuant to any Permitted Platform License, the Seller has not assigned, in whole or in part, and has not granted, incurred or suffered to exist any Lien on, the Existing License Agreements or any of the Seller’s rights, title or interest in or to the Intellectual Property Rights or the Licensed Products.

  (h)	Neither the Seller nor any Counterparty has made any claim of indemnification under any of the Existing License Agreements.

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  (i)	The Seller has not exercised its rights to conduct an audit under any of the Existing License Agreements.

  (j)	To the Knowledge of the Seller, it has received all amounts owed to it under the Existing License Agreements.

  (k)	The Seller has not received notice from any Counterparty to any Existing License Agreement that such Counterparty has granted a sublicense to any other Person.

  (l)	The First Commercial Sale (as defined in the Bausch License Agreement) occurred during the month of December in 2021.    

  Section 3.14	The Emory/GT License Agreement.

  (a)	The Emory/GT License Agreement is in full force and effect and is the legal, valid and binding obligation of the Seller and, to the Knowledge of the Seller, each of Emory and GT, enforceable against the Seller and, to the Knowledge of the Seller, each of Emory and GT in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, general equitable principles and principles of public policy.  The Seller is not in breach or violation of or in default under any provision of the Emory/GT License Agreement.  There is no event or circumstance that, upon notice or the passage of time, or both, would constitute or give rise to any breach or default in the performance of any material provision of the Emory/GT License Agreement by the Seller or, to the Knowledge of the Seller, each of Emory and GT.

  (b)	The Seller has not waived any rights or defaults under the Emory/GT License Agreement or released either of Emory or GT, in whole or in part, from any of its obligations under the Emory/GT License Agreement.  There are no oral waivers or modifications (or pending requests therefor) in respect of the Emory/GT License Agreement.  Other than as set forth on Schedule 3.14 to the Disclosure Letter, neither the Seller nor either of Emory or GT has agreed to amend or waive any provision of the Emory/GT License Agreement, and the Seller has not received or submitted any proposal to do so.

  (c)	No event has occurred that would give the Seller or, to the Knowledge of the Seller, either of Emory or GT the right to terminate the Emory/GT License Agreement or for the Seller to cease paying “Running Royalties” (as described in the Emory/GT License Agreement) under the License Agreement.  The Seller has not received any notice of an intention by either of Emory or GT to terminate or breach the Emory/GT License Agreement, in whole or in part, or challenging the validity or enforceability of the Emory/GT License Agreement or the obligation to pay the “Running Royalties” (as described in the Emory/GT License Agreement) under the Emory/GT License Agreement, or alleging that the Seller or either of Emory or GT is currently in default of its obligations under the Emory/GT License Agreement.  To the Knowledge of the Seller, there is and has been no default, violation or breach of either Emory or GT under the Emory/GT License Agreement.  The Seller has no intention of terminating the Emory/GT License Agreement and has not given any Counterparty any notice of termination of the Emory/GT License Agreement, in whole or in part.

  (d)	The Seller has not consented to an assignment by either of Emory or GT of any of their respective rights or obligations under the Emory/GT License Agreement, and the Seller does not have Knowledge of any such assignment by either of Emory or GT.  Except pursuant to any Permitted Platform License, the Seller has not assigned, in whole or in part, and has not granted, incurred or suffered to exist any Lien on, the Emory/GT License Agreement or any of the Seller’s rights, title or 

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  interest in or to the Intellectual Property Rights or the Licensed Products (as defined in the Emory/GT License Agreement).

  (e)	Neither the Seller nor Emory or GT has made any claim of indemnification under the Emory/GT License Agreement.

  (f)	The Seller has not exercised its rights to conduct an audit under the Emory/GT License Agreement.

  (g)	The Seller has paid all amounts owed by it to Emory and GT under the Emory/GT License Agreement.

  (h)	Attached as Exhibit H is a true, correct and complete copy of the Emory/GT License Agreement.  The Seller has provided to the Purchaser Agent true, correct and complete copies of (i) all applicable royalty reports and (ii) all material notices and correspondence delivered to the Company by Emory or GT or delivered to Emory or GT by the Company pursuant to, or relating to, the Existing License Agreements.

  Section 3.15	UCC Matters.  The Seller’s exact legal name is, and since formation has been, “CLEARSIDE ROYALTY LLC”.  The Seller’s principal place of business is, and since formation has been, located in the State of Georgia.  The Seller’s jurisdiction of formation is, and since formation has been, the State of Delaware.  

  Section 3.16	Set-off and Other Sources of Royalty Reduction.  No Counterparty has exercised, and, to the Knowledge of the Seller, no Counterparty has had the right to exercise, and no event or condition exists that, upon notice or passage of time, or both, would permit any Counterparty to exercise, any Royalty Reduction or Set-off against the Purchased Royalties or any other amounts payable to the Seller under any of the Existing License Agreements.  To the Knowledge of the Seller, there are no Third Party patents that would provide a basis for a Royalty Reduction.  There are no compulsory licenses granted or, to the Knowledge of the Seller, threatened to be granted with respect to the Intellectual Property Rights.

  Section 3.17	Margin Stock.  The Seller is not engaged in the business of extending credit for the purpose of buying or carrying margin stock, and no portion of the Investment Amount shall be used by the Seller for a purpose that violates Regulation T, U or X promulgated by the Board of Governors of the Federal Reserve System from time to time.

  Section 3.18	Representations and Warranties as to the Company.  Except as set forth on the Disclosure Letter, the Seller hereby makes each of the following representations and warranties as to the Company to the Purchaser, as of the date hereof, as follows:

  (a)	Organization.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all corporate power and authority, and all licenses, permits, franchises, authorizations, consents and approvals of all Governmental Authorities, required to own its property and conduct its business, as now conducted, and to exercise its rights and to perform its obligations under the Existing License Agreements and the Emory/GT License Agreement.  The Company is duly qualified to transact business and is in good standing in every jurisdiction in which such qualification or standing is required by Applicable Law (except where the failure to be so qualified or in good standing would not be reasonably expected to result in a Material Adverse Effect).  

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  (b)	No Conflicts.

  (i)	The execution and delivery by the Company of any of the Transaction Documents to which it is a party, the performance by the Company of its obligations thereunder or the consummation by the Company of the transactions contemplated thereby will not (i) contravene, conflict with or violate any term or provision of any of the organizational documents of the Company or any of its Subsidiaries, (ii) contravene, conflict with or violate, or give any Governmental Authority or other Person the right to exercise any remedy or obtain any relief under, any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to which the Company or any of its Subsidiaries or any of their respective assets or properties may be subject or bound, (iii) result in a breach or violation of, constitute a default (with or without notice or lapse of time, or both) under, or give any Person the right to exercise any remedy or obtain any additional rights under, or accelerate the maturity or performance of, or payment under, or cancel or terminate, (A) except as would not be reasonably expected to result in a Material Adverse Effect, to any contract, agreement, indenture, lease, license, deed, commitment, obligation or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries or any of their respective assets or properties is bound or committed (other than an Existing License Agreement and the Emory/GT License Agreement) or (B) any Existing License Agreement or the Emory/GT License Agreement, or (iv) except as provided in any of the Transaction Documents or any Permitted Platform License, result in or require the creation or imposition of any Lien on the Intellectual Property Rights, the Licensed Products, the Existing License Agreements or the Purchased Royalties.

  (ii)	There does not exist any Lien, nor are there any Liens granted by the Company, on or relating to the Existing License Agreements, the Intellectual Property Rights or the Licensed Products other than any Permitted Platform License.  Except for Liens created under the Transaction Documents, the Company has not granted, nor does there exist, any Lien on or relating to the Purchased Royalties.  Except for the license granted by the Company to each Counterparty under the Existing License Agreements prior to the Contribution and any Permitted Platform License, there are no licenses, sublicenses or other rights under the Intellectual Property Rights that have been granted to any Third Party.

  (c)	Authorization.  The Company has all necessary corporate power and authority to execute and deliver the Transaction Documents to which it is a party, to perform its obligations thereunder and to consummate the transactions contemplated thereby.  The execution and delivery of each of the Transaction Documents and the performance by the Company of its obligations hereunder and thereunder have been duly authorized by all necessary corporate action on the part of the Company.  Each of the Transaction Documents to which it is a party has been duly executed and delivered by an authorized officer of the Company.  Each of the Transaction Documents constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, general equitable principles and principles of public policy.

  (d)	Ownership.  Prior to the Contribution, the Company was the exclusive owner of the entire right, title (legal and equitable) and interest in, to and under the Purchased Royalties and the Intellectual Property Rights.  Prior to the Contribution, the Company duly and legally filed or applied for registration for its ownership interest in the Patents included in the Intellectual Property Rights, including the Patents listed on Schedule 3.18 the Disclosure Letter, in the appropriate agencies and in the jurisdictions listed on Schedule 3.18 to the Disclosure Letter.  The Purchased Royalties sold, contributed, assigned, transferred, 

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  conveyed and granted to the Purchaser on the Closing Date have not been pledged, sold, contributed, assigned, transferred, conveyed or granted by the Company to any other Person prior to the Contribution.  

  (e)	Governmental and Third Party Authorizations.  The execution and delivery by the Company of the Transaction Documents to which it is a party, the performance by the Company of its obligations hereunder and thereunder and the consummation by the Company of the transactions contemplated hereby and thereby do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by, or filing with, any Governmental Authority or any other Person, except for (i) the filing of a Current Report on Form 8-K with the SEC, (ii) the filing of UCC financing statements, and (iii) the delivery of the Payment Direction Letters to Aura, AV, Bausch and REGENX and the Emory/GT Consent and the Bausch Consent.

  (f)	No Litigation.  

  (i)	There is no action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena or other proceeding (whether civil, criminal, administrative, regulatory or informal) (i) pending or, to the Knowledge of the Company, threatened in writing by or against the Company or any of its Subsidiaries or (ii) pending against the Company or, to the Knowledge of the Company, pending or threatened by or against Aura, AV, Bausch or REGENX, their Affiliates, or any of their sublicensees, at law or in equity, that (i) would reasonably be expected to result in a liability to the Seller in excess of [***] or (ii) challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which the Company is party.

  (ii)	There is no inquiry or investigation (whether civil, criminal, administrative, regulatory, investigative or informal) by or before a Governmental Authority (i) pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries or (ii) pending against the Company or, to the Knowledge of the Company, pending or threatened by or against Aura, AV, Bausch or REGENX, in each case in respect of the Existing License Agreements, the Emory/GT License Agreement, the Intellectual Property Rights, the Licensed Products or the Purchased Royalties, that (i) would reasonably be expected to result in a liability to the Seller in excess of [***] or (ii) challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which the Company is party. 

  (iii)	To the Knowledge of the Company, no event has occurred or circumstance exists that may give rise to or serve as a basis for the commencement of any such action, suit, arbitration proceeding, claim, investigation, proceeding, inquiry or investigation referred to in Section 3.18(f)(i) or 3.18(f)(ii).

  (g)	Solvency.  Immediately after giving effect to the Contribution and the application of the proceeds therefrom, (a) the fair value of the Company’s assets will be greater than the sum of its debts, liabilities and other obligations, including contingent liabilities, (b) the present fair saleable value of the Company’s assets will be greater than the amount that would be required to pay its probable liabilities on its existing debts, liabilities and other obligations, including contingent liabilities, as they become absolute and matured in the normal course of business, (c) the Company will be able to realize upon its assets and pay its debts, liabilities and other obligations, including contingent obligations, as they mature, (d) the Company will not have unreasonably small capital with which to engage in its business, as now conducted and as proposed to be conducted following the Closing Date, (e) the Company does not have any present plans or intentions to incur debts or other obligations or liabilities beyond its ability to pay 

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  such debts or other obligations or liabilities as they become absolute and matured, (f) the Company will not have become subject to any Bankruptcy Event and (g) the Company will not have been rendered insolvent within the meaning of Section 101(32) of Title 11 of the United States Code.  

  (h)	Tax Matters. 

  (i)	No deduction or withholding for or on account of any Tax has been made from any payment to the Company under any Existing License Agreement prior to the Contribution.  No payor under any Existing License Agreement or any taxing authority has ever notified the Company that any such withholding was required or would have been required absent the Company’s qualification for benefits under an applicable income Tax treaty.

  (ii)	There are no existing Liens for Taxes on the Purchased Royalties (or any portion thereof).

  (i)	No Brokers’ Fees.  The Company has not taken any action that would entitle any person or entity other than JMP Group LLC, whose fees will be paid by the Company, to any commission or broker’s fee in connection with the transactions contemplated by this Purchase and Sale Agreement.

  (j)	Compliance with Laws.  None of the Company or any of its Subsidiaries (a) has violated or is in violation of, has been given notice of any violation of, or, to the Knowledge of the Company, is under investigation with respect to or has been threatened to be charged with, any violation of, any Applicable Law or any judgment, order, writ, decree, injunction, stipulation, consent order, permit or license granted, issued or entered by any Governmental Authority or (b) is subject to any judgment, order, writ, decree, injunction, stipulation or consent order issued or entered by any Governmental Authority, in each case, that would reasonably be expected to result in a liability to the Company or any of its Subsidiaries in excess of [***].

  (k)	Counterparty Agreements.

  (i)	Other than the Transaction Documents, the REGENX Related Agreement, the Existing License Agreements, any Permitted Platform License and the agreements set forth on Schedule 3.18(k) to the Disclosure Letter, there is no contract, agreement or other arrangement (whether written or oral) to which, prior to the Contribution, the Company or any of its Subsidiaries is a party or by which any of their respective assets or properties is bound or committed that affects or otherwise relates to the Purchased Royalties, the Existing License Agreements, the Intellectual Property Rights or the interests of the Purchaser.

  (ii)	Each of the Existing License Agreements is in full force and effect and, prior to the Contribution, was the legal, valid and binding obligation of the Company and, to the Knowledge of the Company, each Counterparty, enforceable against the Company and, to the Knowledge of the Company, each Counterparty in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, general equitable principles and principles of public policy.  Prior to the Contribution, the Company was not in breach or violation of or in default under any of the Existing License Agreements.  There is no event or circumstance that, upon notice or the passage of time, or both, would constitute or give rise to any breach or default in the performance of any of the Existing License Agreements by the Company or, to the Knowledge of the Company, any Counterparty.

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  (iii)	Prior to the Contribution, the Company had not waived any rights or defaults under the Existing License Agreements or released any Counterparty, in whole or in part, from any of its obligations under any of the Existing License Agreements.  There are no oral waivers or modifications (or pending requests therefor) in respect of any of the Existing License Agreements.  Neither the Company nor any Counterparty has agreed to amend or waive any provision of the Existing License Agreements, and the Company has not received or submitted any proposal to do so.

  (iv)	No event has occurred that, prior to the Contribution, would give the Company or, to the Knowledge of the Company, any Counterparty the right to terminate any of the Existing License Agreements or cease paying Purchased Royalties under any of the Existing License Agreements.  The Company has not received any notice of an intention by any Counterparty to terminate or breach any of the Existing License Agreements, in whole or in part, or challenging the validity or enforceability of any of the Existing License Agreements or the obligation to pay the Purchased Royalties under any of the Existing License Agreements, or alleging that the Company or any Counterparty is currently in default of its obligations under any of the Existing License Agreements.  To the Knowledge of the Company, there is and has been no default, violation or breach of any Counterparty under any of the Existing License Agreements.  The Company has no intention of terminating any of the Existing License Agreements and has not given any Counterparty any notice of termination of any of the Existing License Agreements, in whole or in part.  

  (v)	Except as provided in the Existing License Agreements, the Company is not a party to any agreement providing for any Royalty Reduction or permitting any Set-off against, the Purchased Royalties.

  (vi)	The Company has not consented to an assignment by any Counterparty of any of such Counterparty’s rights or obligations under any Existing License Agreement, and the Seller does not have Knowledge of any such assignment by any Counterparty.  Except as contemplated in the Contribution Agreement and the Equity Pledge Agreement, the Company has not assigned, in whole or in part, and has not granted, incurred or suffered to exist any Lien on, the Existing License Agreements or any of the Company’s rights, title or interest in or to the Intellectual Property Rights or the Licensed Products.

  (vii)	Neither the Company nor any Counterparty has made any claim of indemnification under any of the Existing License Agreements.

  (viii)	The Company has not exercised its rights to conduct an audit under any of the Existing License Agreements.

  (ix)	To the Knowledge of the Company it has received all amounts owed to it under the Existing License Agreements.

  (x)	The Company has not received notice from any Counterparty to any Existing License Agreement that such Counterparty has granted a sublicense to any other Person.

  (xi)	The Company has not consented to any assignment by any Counterparty of, and, to the Knowledge of the Company, no Counterparty has assigned, the applicable Existing License Agreement or any part thereof.  Except as contemplated by the Transaction Documents, the 

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  Company has not assigned, in whole or in part, and has not granted any liens upon or security interests with respect to, the applicable Existing License Agreement or the Purchased Royalties.

  (xii)	The First Commercial Sale (as defined in the Bausch License Agreement) occurred during the month of December 2021.    

  (l)	The Emory/GT License Agreement

  (i)	The Emory/GT License Agreement is in full force and effect and, prior to the Contribution, was the legal, valid and binding obligation of the Company and, to the Knowledge of the Company, each of Emory and GT, enforceable against the Company and, to the Knowledge of the Company, each of Emory and GT in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, general equitable principles and principles of public policy.  The Company is not in breach or violation of or in default under any provision of the Emory/GT License Agreement.  There is no event or circumstance that, upon notice or the passage of time, or both, would constitute or give rise to any breach or default in the performance of any material provision of the Emory/GT License Agreement by the Company or, to the Knowledge of the Company, each of Emory and GT.

  (ii)	The Company has not waived any rights or defaults under the Emory/GT License Agreement or released either of Emory or GT, in whole or in part, from any of its obligations under the Emory/GT License Agreement.  There are no oral waivers or modifications (or pending requests therefor) in respect of the Emory/GT License Agreement.  Neither the Company nor either of Emory or GT has agreed to amend or waive any provision of the Emory/GT License Agreement, and the Company has not received or submitted any proposal to do so other than as set forth on Schedule 3.14 of the Disclosure Letter.

  (iii)	No event has occurred that would give the Company or, to the Knowledge of the Company, either of Emory or GT the right to terminate the Emory/GT License Agreement or for the Company to cease paying the royalty, milestone and other payments described in Article 3 of the License Agreement.  The Company has not received any notice of an intention by either of Emory or GT to terminate or breach the Emory/GT License Agreement, in whole or in part, or challenging the validity or enforceability of the Emory/GT License Agreement, or alleging that the Company or either of Emory or GT is currently in default of its obligations under the Emory/GT License Agreement.  To the Knowledge of the Company, there is and has been no default, violation or breach of either Emory or GT under the Emory/GT License Agreement.  The Company has no intention of terminating the Emory/GT License Agreement and has not given any Counterparty any notice of termination of the Emory/GT License Agreement, in whole or in part.  

  (iv)	The Company has not consented to an assignment by either of Emory or GT of any of their respective rights or obligations under the Emory/GT License Agreement, and the Company does not have Knowledge of any such assignment by either of Emory or GT.  Except as contemplated in the Contribution Agreement, the Company has not assigned, in whole or in part, and has not granted, incurred or suffered to exist any Lien on, the Emory/GT License Agreement or any of the Seller’s rights, title or interest in or to the Intellectual Property Rights or the Licensed Products (as defined in the Emory/GT License Agreement).

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  (v)	Neither the Company nor Emory or GT has made any claim of indemnification under the Emory/GT License Agreement. 

  (vi)	Prior to the Contribution, the Seller has not exercised its rights to conduct an audit under the Emory/GT License Agreement.

  (vii)	Prior to the Contribution, to the Knowledge of the Company, the Company paid all amounts owed by it to Emory and GT under the Emory/GT License Agreement.

  (m)	UCC Matters.  The Company’s exact legal name is, and for the preceding 10 years has been, “Clearside Biomedical, Inc.”  The Company’s principal place of business is, and for the preceding 10 years has been, located in the State of Georgia.  The Company’s jurisdiction of organization is, and for the preceding 10 years has been, the State of Delaware.  For the preceding 10 years, the Company has not been the subject of any merger or other corporate or other reorganization in which its identity or status was materially changed, except in each case where it was the surviving or resulting Person.

  (n)	Set-off and Other Sources of Royalty Reduction.  No Counterparty has exercised, and, to the Knowledge of the Company, no Counterparty has had the right to exercise, and no event or condition exists that, upon notice or passage of time, or both, would permit any Counterparty to exercise, any Royalty Reduction or Set-off against the Purchased Royalties or any other amounts payable to the Company under any of the Existing License Agreements.  To the Knowledge of the Company, there are no Third Party patents that would provide a basis for a Royalty Reduction.  There are no compulsory licenses granted or, to the Knowledge of the Company, threatened to be granted with respect to the Intellectual Property Rights.

  (o)	Margin Stock.  The Company is not engaged in the business of extending credit for the purpose of buying or carrying margin stock, and no portion of the Investment Amount shall be used by the Seller for a purpose that violates Regulation T, U or X promulgated by the Board of Governors of the Federal Reserve System from time to time.

  ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

  The Purchaser hereby represents and warrants to the Seller, as of the date hereof, as follows:

  Section 4.1	Organization.  The Purchaser is a limited partnership duly organized, validly existing and in good standing under the laws of Delaware.

  Section 4.2	No Conflicts.  The execution and delivery by the Purchaser of any of the Transaction Documents to which the Purchaser is party, the performance by the Purchaser of its obligations hereunder or thereunder or the consummation by the Purchaser of the transactions contemplated hereby or thereby will not (i) contravene, conflict with or violate any term or provision of any of the organizational documents of the Purchaser, (ii) contravene, conflict with or violate, or give any Governmental Authority or other Person the right to exercise any remedy or obtain any relief under, in any material respect, any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to which the Purchaser or any of its assets or properties may be subject or bound or (iii) result in a breach or violation of, constitute a default (with or without notice or lapse of time, or both) under, or give any Person any right to exercise any remedy, or accelerate the maturity or performance of, in any material respect, any contract, agreement, indenture, lease, license, deed, 

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  commitment, obligation or instrument to which the Purchaser is a party or by which the Purchaser or any of its assets or properties is bound or committed.

  Section 4.3	Authorization.  The Purchaser has all necessary partnership power and authority to execute and deliver the Transaction Documents to which the Purchaser is a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  The execution and delivery of each of the Transaction Documents to which the Purchaser is party and the performance by the Purchaser of its obligations hereunder and thereunder have been duly authorized by the Purchaser.  Each of the Transaction Documents to which the Purchaser is party has been duly executed and delivered by the Purchaser.  Each of the Transaction Documents to which the Purchaser is party constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, and general equitable principles.

  Section 4.4	Governmental and Third Party Authorizations.  The execution and delivery by the Purchaser of the Transaction Documents to which the Purchaser is party, the performance by the Purchaser of its obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by, or filing with, any Governmental Authority or any other Person, except for the filing of UCC financing statements, and the delivery of the Payment Direction Letters to Aura, AV, Bausch and REGENX. 

  Section 4.5	No Litigation.  There is no (a) action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena, investigation or other proceeding (whether civil, criminal, administrative, regulatory, investigative or informal) pending or, to the knowledge of the Purchaser, threatened by or against the Purchaser, at law or in equity, or (b) inquiry or investigation (whether civil, criminal, administrative, regulatory, investigative or informal) by or before a Governmental Authority pending or, to the knowledge of the Purchaser, threatened against the Purchaser, that, in any case challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents.

  Section 4.6	Access to Information.  The Purchaser acknowledges that it has (a) reviewed such documents and information relating to the Intellectual Property Rights and the Covered Products and (b) had the opportunity to ask questions of, and to receive answers from, representatives of the Seller concerning the Intellectual Property Rights and the Covered Products, in each case, as it deemed necessary to make an informed decision to purchase, acquire and accept the Purchased Royalties in accordance with the terms of this Purchase and Sale Agreement.  The Purchaser has knowledge, sophistication and experience in financial and business matters that it is capable of evaluating the risks and merits of purchasing, acquiring and accepting the Purchased Royalties in accordance with the terms of this Purchase and Sale Agreement.

  Section 4.7	Funds Available.  As of the date hereof, the Purchaser has sufficient funds on hand to satisfy its obligations to pay the Closing Payment due and payable within the time period specified in Section 2.2(a).  The Purchaser acknowledges and agrees that its obligations under this Purchase and Sale Agreement are not contingent on obtaining financing.

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  ARTICLE V
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AGENT

  The Purchaser Agent hereby represents and warrants to the Seller, as of the date hereof, as follows:

  Section 5.1	Organization.  The Purchaser Agent is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware.

  Section 5.2	No Conflicts.  The execution and delivery by the Purchaser Agent of any of the Transaction Documents to which the Purchaser Agent is party, the performance by the Purchaser Agent of its obligations hereunder or thereunder or the consummation by the Purchaser Agent of the transactions contemplated hereby or thereby will not (i) contravene, conflict with or violate any term or provision of any of the organizational documents of the Purchaser Agent, (ii) contravene, conflict with or violate, or give any Governmental Authority or other Person the right to exercise any remedy or obtain any relief under, in any material respect, any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to which the Purchaser Agent or any of its assets or properties may be subject or bound or (iii) result in a breach or violation of, constitute a default (with or without notice or lapse of time, or both) under, or give any Person any right to exercise any remedy, or accelerate the maturity or performance of, in any material respect, any contract, agreement, indenture, lease, license, deed, commitment, obligation or instrument to which the Purchaser Agent is a party or by which the Purchaser Agent or any of its assets or properties is bound or committed.

  Section 5.3	Authorization.  The Purchaser Agent has all necessary limited liability company power and authority to execute and deliver the Transaction Documents to which the Purchaser Agent is a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  The execution and delivery of each of the Transaction Documents to which the Purchaser Agent is party and the performance by the Purchaser Agent of its obligations hereunder and thereunder have been duly authorized by the Purchaser Agent.  Each of the Transaction Documents to which the Purchaser Agent is party has been duly executed and delivered by the Purchaser Agent.  Each of the Transaction Documents to which the Purchaser Agent is party constitutes the legal, valid and binding obligation of the Purchaser Agent, enforceable against the Purchaser Agent in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, and general equitable principles.

  Section 5.4	Governmental and Third Party Authorizations.  The execution and delivery by the Purchaser Agent of the Transaction Documents to which the Purchaser Agent is party, the performance by the Purchaser Agent of its obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by, or filing with, any Governmental Authority or any other Person, except for the filing of UCC financing statements and the delivery of the Payment Direction Letters to Aura, AV, Bausch and REGENX. 

  Section 5.5	No Litigation.  There is no (a) action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena, investigation or other proceeding (whether civil, criminal, administrative, regulatory, investigative or informal) pending or, to the knowledge of the Purchaser Agent, threatened by or against the Purchaser Agent, at law or in equity, or (b) inquiry or investigation (whether civil, criminal, administrative, regulatory, investigative or informal) by or before a Governmental Authority pending or, to the knowledge of the Purchaser Agent, threatened against the Purchaser Agent, that, in any case 

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  challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents.

  Section 5.6	Access to Information.  The Purchaser Agent acknowledges that it has (a) reviewed such documents and information relating to the Intellectual Property Rights and the Covered Products and (b) had the opportunity to ask questions of, and to receive answers from, representatives of the Seller concerning the Intellectual Property Rights and the Covered Products, in each case, as it deemed necessary to make an informed decision to purchase, acquire and accept the Purchased Royalties in accordance with the terms of this Purchase and Sale Agreement.  The Purchaser Agent has such knowledge, sophistication and experience in financial and business matters that it is capable of evaluating the risks and merits of purchasing, acquiring and accepting the Purchased Royalties in accordance with the terms of this Purchase and Sale Agreement.

  ARTICLE VI
COVENANTS

  The Parties covenant and agree as follows:

  Section 6.1	Books and Records; Notices.

  (a)	The Seller shall keep and maintain, or cause to be kept and maintained, at all times, full and accurate books and records adequate to reflect accurately all financial information received and all amounts paid or received under the Covered License Agreements in respect of the Purchased Royalties.

  (b)	Promptly (but in no event more than [***]) after receipt by the Seller of (i) (x) notice of the commencement by any Third Party of, or (y) written notice from any Third Party threatening to commence, in either case any action, suit, arbitration proceeding, claim, demand, investigation or other proceeding relating to this Purchase and Sale Agreement, any of the other Transaction Documents, any Covered License Agreement, any transaction contemplated hereby or thereby or the Purchased Royalties (in any case other than any notice contemplated in Section 6.1(e)), or (ii) any other correspondence relating to the foregoing, the Seller shall (A) notify the Purchaser Agent in writing of the receipt of such notice or correspondence and provide the Purchaser Agent with a written summary of all material details thereof and (B) to the extent not prohibited by obligations of confidentiality contained in the Covered License Agreements, if such notice is in writing, furnish the Purchaser Agent with a copy thereof and any materials reasonably related thereto.

  (c)	Following the completion of each calendar quarter during the term of this Purchase and Sale Agreement, as promptly as practicable, but in any event no later than [***] after the Seller receives a Royalty Report for such calendar quarter, the Seller shall deliver to the Purchaser Agent a true, correct and complete copy of each report in respect of such completed calendar quarter.

  (d)	Promptly (but in no event more than [***]) after receipt by the Seller of any material written notice, certificate, offer, proposal, correspondence, report or other communication relating to any Covered License Agreement, the Intellectual Property Rights, the Purchased Royalties or, except in relation to the REGENX Related Agreement, any Covered Product (in any case, other than any notice contemplated by Section 6.1(b) or 6.1(e)), the Seller shall (i) notify the Purchaser Agent in writing of the receipt thereof and provide the Purchaser Agent with a written summary of all material details thereof and (ii) to the extent not prohibited by obligations of confidentiality contained in the Covered License Agreements, furnish the Purchaser Agent with a copy thereof.

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  (e)	The Seller shall provide the Purchaser Agent with written notice as promptly as practicable (and in any event within [***]) after obtaining Knowledge of any of the following:

  (i)	the occurrence of any Bankruptcy Event in respect of the Seller;

  (ii)	any material breach or default by the Seller of or under any material covenant, agreement or other provision of any Transaction Document;

  (iii)	the Seller, any Counterparty or any other Third Party receiving any notice of audit or regulatory action by the FDA (or foreign equivalent thereof) relating to any of the Covered Products or the Purchased Royalties;

  (iv)	any representation or warranty made by the Seller in this Purchase and Sale Agreement or any of the other Transaction Documents (or in any certificate delivered by the Seller to the Purchaser pursuant to this Purchase and Sale Agreement) shall prove to be untrue, inaccurate or incomplete in any material respect on the date as of which made; or

  (v)	the occurrence or existence of any change, effect, event, occurrence, state of facts, development or condition that has had, or would reasonably be expected to have, a Material Adverse Effect.

  (f)	In addition to the quarterly Royalty Reports to be delivered to the Purchaser pursuant to Section 6.1(c), Seller shall, on a quarterly basis, provide a written update to Purchaser Agent regarding the Purchased Royalties.  Upon the delivery of such quarterly update by Seller to Purchaser Agent, either Seller or Purchaser Agent may reasonably request to hold one videoconference for the purpose of discussing such quarterly update.  In addition to the foregoing, Purchaser Agent shall have the right, [***], to request an in-person meeting at a reasonable location selected by Purchaser Agent.  Any such videoconference or meeting shall be at a mutually agreeable reasonable date and time and shall include an executive officer of each of the Company, Seller and Purchaser Agent.  Each of the Company, Seller and Purchaser Agent shall be solely responsible for their own costs and expenses associated with such videoconferences and meetings, including all travel and accommodations.

  (g)	The Seller shall notify the Purchaser Agent in writing not less than [***] prior to any change in, or amendment or alteration of, the Seller’s (i) legal name, (ii) form or type of organizational structure or (iii) jurisdiction of organization.

  (h)	The Seller shall notify the Purchaser Agent in writing not more than [***] after becoming aware that any Tax may be required to be withheld with respect to any payment under any Existing License Agreement or Future License Agreement or otherwise to the Purchaser pursuant to the Purchase and Sale Agreement.

  Section 6.2	Public Announcement.  No Party shall, and each Party shall cause its Affiliates not to, without the prior written consent of the other Parties (which consent shall not be unreasonably withheld or delayed), issue any press release or make any other public disclosure with respect to this Purchase and Sale Agreement or any of the other Transaction Documents or any of the transactions contemplated hereby or thereby, except if and to the extent that any such release or disclosure is required by Applicable Law, by the rules and regulations of any securities exchange or market on which any security of such Party may be listed or traded or by any Governmental Authority of competent jurisdiction, in which case, the Party proposing to issue such press release or make such public disclosure shall, to the extent reasonably practicable, (a) provide to the other Parties a copy of such proposed release 

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  or disclosure and (b) consider in good faith any comments or changes that the other Party may propose or suggest; provided that a Party may freely make any public disclosure identical to a disclosure previously reviewed by the other Party in accordance with the foregoing clauses (a) and (b).  Notwithstanding the foregoing, the Purchaser and the Purchaser Agent understand and agree that the Seller intends to file with the SEC a Current Report on Form 8-K describing the material terms of the transactions contemplated by this Purchase and Sale Agreement and the other Transaction Documents and some or all of the Transaction Documents as exhibits thereto or to another filing with the SEC, provided, that the Seller shall (a) provide to the Purchaser Agent a draft of such filings with the SEC and (b) consider in good faith any comments or changes that the Purchaser Agent may propose or suggest.  The Seller and the Purchaser Agent shall jointly prepare a press release for dissemination promptly following the Closing, such press release to be substantially in the form attached hereto as Exhibit I.

  Section 6.3	Further Assurances.

  (a)	Subject to the terms and conditions of this Purchase and Sale Agreement, each Party shall use commercially reasonable efforts to execute and deliver such other documents, certificates, instruments, agreements and other writings, take such other actions and perform such additional acts under Applicable Law as may be reasonably requested by the other Party and necessary to implement expeditiously the transactions contemplated by, and to carry out the purposes and intent of the provisions of, this Purchase and Sale Agreement and the other Transaction Documents, including to (i) perfect the sale, contribution, assignment, transfer, conveyance and granting of the Purchased Royalties to the Purchaser pursuant to this Purchase and Sale Agreement, (ii) perfect, protect, more fully evidence, vest and maintain in the Purchaser good, valid and marketable rights and interests in and to the Purchased Royalties free and clear of all Liens (other than Liens under the Transaction Documents), (iii) create, evidence and perfect the Purchaser’s back-up security interest granted pursuant to Section 2.1(d), and (iv) enable the Purchaser to exercise or enforce any of the Purchaser’s rights under any Transaction Document to which the Purchaser is party.

  (b)	The Seller, the Purchaser and the Purchaser Agent shall cooperate and provide assistance as reasonably requested by any other Party, at the expense of such other Party (except as otherwise set forth herein), in connection with any litigation, arbitration, investigation or other proceeding (whether threatened, existing, initiated or contemplated prior to, on or after the Closing Date) to which the other Party, any of its Affiliates or controlling persons or any of their respective officers, directors, managers, employees or controlling persons is or may become a party or is or may become otherwise directly or indirectly affected or as to which any such Persons have a direct or indirect interest, in each case relating to any Transaction Document, the transactions contemplated hereby or thereby or the Purchased Royalties, but in all cases excluding any litigation brought by the Seller (for itself or on behalf of any Seller Indemnified Party) against the Purchaser or the Purchaser Agent or brought by the Purchaser or the Purchaser Agent (in each case, for itself or on behalf of any Purchaser Indemnified Party) against the Seller.

  (c)	The Seller shall use its commercially reasonable efforts to comply in all material respects with all Applicable Laws with respect to the Transaction Documents, the Covered License Agreements and the Purchased Royalties, except where compliance therewith is being contested by the Seller in good faith by appropriate proceedings.

  (d)	The Seller shall not enter into any contract, agreement or other legally binding arrangement (whether written or oral), or grant any right to any other Person, in any case that would reasonably be expected to conflict with the Transaction Documents or serve or operate to limit, circumscribe or alter any 

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  of the Purchaser’s rights under the Transaction Documents (or the Purchaser’s ability to exercise any such rights).

  (e)	Promptly following the Closing, in accordance with the Contribution Agreement, the Company shall pay all commissions and broker’s fees owed to JMP Group LLC by the Seller in connection with the transactions contemplated by this Purchase and Sale Agreement.

  (f)	Following the Closing, in accordance with the Emory/GT Consent and the Contribution Agreement, the Company shall continue making all royalty payments and milestone payments to Emory and GT as required under the Emory/GT License Agreement.

  Section 6.4	Payments on Account of the Purchased Royalties.

  (a)	If, notwithstanding the terms of the Payment Direction Letters and the Account Control Agreement, any Counterparty, any of its Affiliates, any of its sublicensees, or any other Person makes any future payment of the Purchased Royalties to the Seller or any of its Subsidiaries, then (i) such amount shall be held by the Seller (or such Subsidiary) in trust for the benefit of the Purchaser, (ii) the Seller (or such Subsidiary) shall have no right, title or interest whatsoever in such portion of such payment and shall not create or suffer to exist any Lien thereon and (iii) the Seller (or such Subsidiary) promptly, and in any event no later than [***] following the receipt by the Seller (or such Subsidiary) of such portion of such payment, shall remit such portion of such payment to the Purchaser Account pursuant to Section 6.4(b) in the exact form received with all necessary endorsements.

  (b)	All payments required to be made to the Purchaser pursuant to this Purchase and Sale Agreement shall be made by wire transfer of immediately available funds, without Set-off or deduction, to the account provided by the Purchaser Agent in writing (or to such other account as the Purchaser Agent shall notify the Seller in writing from time to time) (the “Purchaser Account”).

  (c)	If, notwithstanding the terms of the Payment Direction Letters and the Account Control Agreement, any Counterparty, any of its Affiliates, any of its sublicensees or any other Person makes any payment to the Purchaser that does not consist entirely of Purchased Royalties, then (i) the portion of such payment that does not constitute Purchased Royalties shall be held by the Purchaser in trust for the benefit of the Seller, (ii) the Purchaser shall have no right, title or interest whatsoever in such payment and shall not create or suffer to exist any Lien thereon and (iii) the Purchaser promptly, and in any event no later than [***] following the receipt by the Purchaser of such payment, shall remit such payment to the Seller Account pursuant to Section 6.4(d) in the exact form received with all necessary endorsements.

  (d)	The Purchaser shall make all payments required to be made by it to the Seller pursuant to this Purchase and Sale Agreement by wire transfer of immediately available funds, without Set-off or deduction to the account set forth on Exhibit J (or to such other account as the Seller shall notify the Purchaser Agent in writing from time to time) (the “Seller Account”).

  (e)	If any Counterparty takes any Set-off against the Purchased Royalties (other than for any prior overpayment of Purchased Royalties actually made to the Purchaser) for any liability, debt or other obligation that the Seller owes or allegedly owes to such Counterparty, then the Seller shall cause the amount of such Set-off to be paid promptly (but in no event later than [***]) following such Set-off to the Purchaser Account.  If such Counterparty subsequently makes a payment to the Purchaser in respect of a Set-off previously taken against the Purchased Royalties and the Seller previously made a payment to the Purchaser in the amount of such Set-off pursuant to the foregoing sentence, then the Purchaser shall 

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  promptly (but in no event later than [***]) after the Purchaser receives such payment by such Counterparty, pay to the Seller the amount of such payment.

  Section 6.5	Covered License Agreements.

  (a)	The Seller (i) shall perform and comply with in all material respects its obligations under the Covered License Agreements, (ii) shall not, except with the Purchaser’s consent, (A) forgive, release or compromise any Purchased Royalties payable by the applicable Counterparty under any Covered License Agreement, or (B) amend, modify, supplement, restate, waive, cancel or terminate (or consent to any cancellation or termination of), in whole or in part, any provision of or right under any Covered License Agreement in a manner that would adversely affect Purchaser’s rights under this Purchase and Sale Agreement (including the timing, amount or duration of the Purchased Royalties), (iii) shall not, except with the Purchaser’s consent, enter into any new contract, agreement or legally binding arrangement in respect of the Purchased Royalties, the Intellectual Property Rights or, except in relation to the REGENX Related Agreement, the Covered Products, provided that Purchaser’s consent shall not be required with respect to any entry into a Permitted Platform License or any contract, agreement or legally binding arrangement in respect of in-licensed or internally developed therapies, including, but not limited to, those shown on Schedule 1.2 and (iv) shall not agree to do any of the foregoing, provided, however, that the Purchaser’s consent with respect to any Future License Agreement shall not be required, unless such Future License Agreement would be reasonably expected to impair or have a material adverse effect on an Existing License Agreement.  The Seller shall promptly (and in any case within [***]) deliver to the Purchaser Agent copies of all fully-executed or definitive writings related to the matters set forth in clauses (ii), (iii) and (iv) of the immediately preceding sentence.  Except as otherwise expressly set forth in this ARTICLE VI and except as otherwise consented to by the Purchaser, the Seller shall not grant or withhold any consent, exercise or waive any right or option, fail to exercise any right or option or deliver to any Counterparty any notice under any Covered License Agreement.  The Seller shall promptly (and in any case within [***]) deliver to the Purchaser Agent copies of all fully-executed or definitive writings related to the matters set forth in the immediately preceding sentence.

  (b)	Promptly (and in any case within [***]) after (i) receiving (x) notice from any Counterparty, including any notice terminating any Covered License Agreement (in whole or in part), alleging any breach of or default under any Covered License Agreement by the Seller related to the Purchased Royalties, or any other material breach or default, or asserting the existence of any facts, circumstances or events that, alone or together with other facts, circumstances or events, would reasonably be expected (with or without the giving of notice or passage of time, or both) to give rise to a breach of or default under any Covered License Agreement by the Seller related to the Purchased Royalties, or any other material breach or default, or the right to terminate any Covered License Agreement (in whole or in part) by such Counterparty, or (y) any other correspondence relating to the foregoing, or (ii) the Seller otherwise has Knowledge of any fact, circumstance or event that, alone or together with other facts, circumstances or events, would reasonably be expected (with or without the giving of notice or passage of time, or both) to give rise to a breach of or default under any Covered License Agreement by the Seller related to the Purchased Royalties, or any other material breach or default, or the right to terminate any Covered License Agreement (in whole or in part) by any Counterparty, in each case the Seller shall (A) (x) give written notice thereof to the Purchaser Agent and provide the Purchaser Agent with a written summary of all material details thereof, (y) to the extent not prohibited by obligations of confidentiality contained in the Covered License Agreements, include a copy of any written notice received from such Counterparty, and (z) in the case of any such breach or default or alleged breach or default by the Seller, describe in reasonable detail any corrective action the Seller proposes to take in respect of such breach or default, and (B) in the case of any such breach or default or alleged breach or default by the Seller, use commercially reasonable efforts to cure such breach or default and give written notice to the Purchaser 

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  Agent upon curing such breach or default; provided, however, that, if the Seller fails to promptly (and in any event at least [***] prior to the cure period applicable thereto) cure any such breach or default, without limiting any other rights it may have, the Purchaser Agent shall, on behalf of the Purchaser and upon written notice to the Seller and to the extent permitted by the Covered License Agreements, be entitled to take any and all actions the Purchaser Agent considers reasonably necessary to promptly cure such breach or default, and the Seller shall cooperate with the Purchaser Agent for such purpose and reimburse the Purchaser Agent, promptly (but in no event later than [***]) following demand, for all out-of-pocket costs and expenses incurred by the Purchaser Agent in connection therewith.

  (c)	Promptly after the Seller obtains Knowledge of any actual or alleged breach of or default that relates to the Purchased Royalties or any other actual or alleged material breach of or default under any Covered License Agreement by the applicable Counterparty (each, a “Defaulting Party”) or of the existence of any facts, circumstances or events that, alone or together with other facts, circumstances or events, would reasonably be expected (with or without the giving of notice or passage of time, or both) to give rise to any such breach of or default or the right to terminate any Covered License Agreement (in whole or in part) by the Seller, in each case the Seller shall promptly (but in any event within [***]) give written notice thereof to the Purchaser Agent and provide the Purchaser Agent with a written summary of all material details thereof and act as mutually agreed to take such permissible actions (including commencing legal action against the Defaulting Party and the selection of legal counsel reasonably satisfactory to the Purchaser Agent) to enforce compliance by the Defaulting Party with the relevant provisions of the applicable Covered License Agreement and to exercise any or all of the Seller’s rights and remedies, whether under such Covered License Agreement or by operation of law, with respect thereto.  If the Seller is required to act as directed by the Purchaser Agent pursuant to this Section 6.5(d), then the Purchaser shall reimburse the Seller, promptly on demand, for all out-of-pocket costs and expenses (including the reasonable fees and expenses of the Seller’s counsel) incurred by the Seller in connection with the Seller’s actions and exercise of rights and remedies pursuant to clause (ii) of the immediately preceding sentence; provided, however, that such out-of-pocket costs and expenses (including the reasonable fees and expenses of the Seller’s counsel) shall be borne by the Seller if (x) such breach, default or termination event or alleged breach, default or termination event results from a breach of or default under any Covered License Agreement by the Seller or (y) the Seller acts without or contrary to the Purchaser Agent’s direction.  The Purchaser Agent shall, except to the extent prohibited by the obligations of confidentiality contained in the Covered License Agreements, have the right, at its sole cost and expense, to attend (or, if the Seller is required to act as directed by the Purchaser Agent pursuant to this Section 6.5(d), participate in) any meeting, discussion, action, suit or other proceeding relating to any such breach, default or termination event or alleged breach, default or termination event, including any counterclaim, settlement discussions or meetings; provided, however, that the Purchaser Agent shall have no such right to attend or participate, as applicable, if the exercise thereof would adversely affect the maintenance by the Seller of any applicable attorney-client privilege (and, in such event, the Parties agree to use commercially reasonable efforts to effect such other arrangements to preserve such privilege, including negotiating to enter into a mutually-acceptable joint defense agreement).  Notwithstanding anything to the contrary contained in this ARTICLE VI, nothing herein shall prevent, restrict or limit the Purchaser Agent, on behalf of the Purchaser, from directly enforcing, at the Purchaser Agent’s sole cost and expense, a Defaulting Party’s payment obligations in respect of the Purchased Royalties with counsel selected by the Purchaser Agent in its sole discretion; provided, however, that the Seller shall, except to the extent prohibited by obligations of confidentiality contained in the Covered License Agreements, make available its relevant records and personnel to the Purchaser Agent in connection with any such enforcement and provide reasonable assistance and authority to file and bring any legal action in connection therewith, including, if required, being joined as a party plaintiff, and the Purchaser Agent shall reimburse the Seller, promptly on demand, for all out-of-pocket costs and expenses incurred by the Seller in connection therewith, (x) unless the Defaulting Party’s breach, default or termination event or 

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  alleged breach, default or termination event results from a breach of or default under any Covered License Agreement by the Seller or (y) the Seller acts without or contrary to the Purchaser Agent’s direction in respect of any such breach or default or alleged breach or default (if the Seller is required to act as directed by the Purchaser Agent pursuant to this Section 6.5(d)).

  (d)	Patent Prosecution, Enforcement and Defense.

  (i)	To the extent required or permitted by the applicable Covered License Agreements, the Seller shall take any and all actions, and prepare, execute, deliver and file any and all agreements, documents and instruments, that are reasonably necessary or desirable to diligently preserve and maintain the applicable Intellectual Property Rights, including payment of maintenance fees or annuities.  In connection with any actions or decisions by the Seller not to act in respect of matters contemplated by the foregoing sentence, to the extent such action or decision would reasonably be expected to have a Material Adverse Effect, the Seller shall provide advance written notice of all such actions or decisions not to act in order to consult with the Purchaser Agent, and the Seller shall, in good faith, give due consideration to any reasonable suggestions of, the Purchaser Agent.

  (ii)	To the extent required or permitted by the applicable Covered License Agreements, the Seller shall (A) diligently defend (and enforce) the applicable Intellectual Property Rights against infringement or interference by any other Person, and against any claims of invalidity or unenforceability, in any jurisdiction (including by bringing any legal action for infringement or defending any counterclaim of invalidity or action of any other Person for declaratory judgment of non-infringement or non-interference) and (B) when available in respect of any applicable Licensed Product, obtain patents and any corrections, substitutions, reissues and reexaminations thereof and obtain patent term extensions and any other forms of patent term restoration in any country.  In connection with the Seller’s actions or decisions not to act in respect of matters contemplated by the foregoing sentence, the Seller shall provide advance written notice of all such actions or decisions not to act in order to consult with the Purchaser Agent, if applicable, and, if applicable, allow the Purchaser Agent sufficient time to issue instructions.  The Seller shall promptly (but in any event within [***]) provide to the Purchaser Agent a copy of any written notice or other documentation received in connection with any such legal action, suit or other proceeding.

  (iii)	The Seller shall, except to the extent prohibited by obligations of confidentiality contained in the Covered License Agreements, promptly (but in any event within [***]) after receipt thereof, provide to the Purchaser Agent a copy of all substantive written notices or other documentation relating to the patentability, enforceability, validity, scope or term of the Patents, and shall provide the Purchaser Agent with a copy of drafts of any written material proposed to be filed in response thereto.  

  (iv)	The Parties shall bear their own costs and expenses in connection with the actions pursuant to this Section 6.5.

  (v)	The Seller shall not disclaim or abandon, or fail to take any Commercially Reasonable Action necessary or desirable to prevent the disclaimer or abandonment of, any Intellectual Property Rights.  

  (e)	Except in connection with any assignment by the Seller of its rights and a delegation by the Seller of its obligations under this Purchase and Sale Agreement pursuant to and in accordance with 

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  Section 11.4 and except in connection with any Permitted Platform License, the Seller shall not dispose of, assign or otherwise transfer, in whole or in part, any Covered License Agreement, the Purchased Royalties or any of the Seller’s right, title or interest in or to the applicable Intellectual Property Rights.  The Seller shall not grant any Lien on the Intellectual Property Rights or the License Agreements other than any Permitted Platform License.  Notwithstanding the foregoing, Seller may enter into any intercreditor agreement permitted pursuant to Section 4.01(b) of the Contribution Agreement, with such intercreditor agreement to be reasonably satisfactory to the Purchaser. 

  Section 6.6	Termination of the Covered License Agreements.

  (a)	Without limiting the provisions of Section 6.5 or any other rights or remedies the Purchaser may have under this Purchase and Sale Agreement, if a Counterparty terminates a Covered License Agreement or a Covered License Agreement otherwise terminates (whether in whole or in part), in any case during the term of such Covered License Agreement, then the Seller shall, at the Purchaser’s request and direction, use Commercially Reasonable Efforts for a period of [***] following such termination to negotiate a license with a Third Party with respect to the applicable Intellectual Property Rights in the applicable Field (as defined in the applicable Covered License Agreement) for such Third Party to make, have made, use, import, offer for sale and sell the applicable Covered Products for any purpose that the terminating Counterparty would have been permitted to make, have made, use, import, offer for sale and sell the applicable Covered Products under the applicable Covered License Agreement, which license shall (i) become effective not earlier than the effective date of such termination, (ii) expire not later than the last day of the applicable royalty term under such Covered License Agreement (and, if such termination is only in part in respect of the applicable Licensed Product in a particular country (and not in whole), the applicable royalty term shall be such term that is applicable under the applicable Covered License Agreement for such applicable Licensed Product in such country) and (iii) include terms, conditions and limitations that are not materially less favorable to the Seller, taking into account the sale of the Purchased Royalties pursuant to the Transaction Documents, than those contained in the Covered License Agreements, including with respect to obligations and costs imposed on the Seller, disclaimers of the Seller’s liability, intellectual property ownership and control and indemnification of the Seller (any such license, a “New Arrangement”).  The Seller shall consult and reasonably consider any comments from the Purchaser Agent with respect to such negotiation of a New Arrangement.  If the Seller is unable to secure a New Arrangement within [***] of the termination of the applicable Covered License Agreement (or such shorter period as the Seller and the Purchaser Agent shall agree), then the Purchaser shall have the right to negotiate a New Arrangement on behalf of the Seller, and the Seller agrees to use Commercially Reasonable Efforts to cooperate and assist the Purchaser in connection with the Purchaser’s efforts pursuant to this sentence. 

  (b)	Should the Seller or the Purchaser identify any New Arrangement pursuant to Section 6.6(a), the Seller agrees to exercise commercially reasonable efforts to promptly duly execute and deliver a new license agreement effecting such New Arrangement that satisfies the foregoing requirements.

  (c)	Each of the Seller and the Purchaser shall bear its own costs and expenses in connection with any New Arrangement.

  Section 6.7	Audits.  

  (a)	The Seller shall not, without first consulting the Purchaser Agent, cause an inspection or audit of any Counterparty’s books and records to be conducted pursuant to and in accordance with Section 4.6 of the Aura License Agreement, Section 8.08 of the AV License Agreement, Section 8.6 of the Bausch License Agreement and Section 6.9 of the REGENX License Agreement, as the case may be.  From time 

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  to time, but not more frequently than [***], the Purchaser Agent may request the Seller to, and the Seller shall, cause an inspection or audit of any Counterparty’s books and records in respect of the Purchased Royalties to be conducted pursuant to and in accordance with Section 4.6 of the Aura License Agreement, Section 8.08 of the AV License Agreement, Section 8.6 of the Bausch License Agreement and Section 6.9 of the REGENX License Agreement, as the case may be.  For the purposes of exercising the Purchaser Agent’s rights pursuant to this Section 6.7(a) in respect of the Aura License Agreement, the AV License Agreement, the Bausch License Agreement or the REGENX License Agreement, the Seller shall exercise any applicable right to appoint a public accounting firm of nationally recognized standing as the Purchaser Agent shall select for such purpose (it being understood and agreed that any such public accounting firm shall, pursuant to Section 4.6 of the Aura License Agreement, Section 8.08 of the AV License Agreement, Section 8.6 of the Bausch License Agreement and Section 6.9 of the REGENX License Agreement, be reasonably acceptable to Aura, AV, Bausch, or REGENX, respectively).  The Seller and the Purchaser Agent agree that all of the expenses of, and amounts payable to Aura, AV, Bausch and REGENX, as the case may be, as a result of any inspection or audit carried out at the request of the Purchaser Agent pursuant to this Section 6.7(a) that would otherwise be borne by the Seller pursuant to the applicable License Agreement shall instead be borne by the Purchaser Agent and reimbursed to the Seller promptly on demand, including such reasonable fees and expenses of such public accounting firm as are to be borne by the Seller pursuant to Section 8.6 of the Bausch License Agreement, Section 4.6 of the Aura License Agreement, Section 8.08 of the AV License Agreement, Section 8.6 of the Bausch License Agreement and Section 6.9 of the REGENX License Agreement, as the case may be, together with the Seller’s out-of-pocket costs and expenses incurred in connection with such inspection or audit; provided, that the Purchaser Agent shall be reimbursed by the Seller for any such fees and expenses to the extent the Seller is entitled to receive reimbursement from Aura, AV, Bausch or REGENX, as the case may be; provided, further, that, for the avoidance of doubt, any audit caused by the Seller pursuant to the first sentence of this Section 6.7(a) shall not be deemed to be carried out at the request of the Purchaser Agent and the Purchaser Agent shall have no obligation to reimburse the Seller, pursuant to this sentence, for any fees, costs or expenses incurred by the Seller in connection therewith.  The Seller shall, to the extent not prohibited by obligations of confidentiality contained in the License Agreement pursuant to which an inspection or audit in respect of the Purchased Royalties is conducted, promptly (but in no event later than [***]) furnish to the Purchaser Agent any inspection or audit report prepared in connection with such inspection or audit.  

  (b)	In the event that any inspection or audit conducted pursuant to Section 6.7(a) uncovers that the amounts actually paid to the Purchaser for any period in respect of the Purchased Royalties were greater than the amounts that should have been paid to the Purchaser for such period in respect of the Purchased Royalties, the Purchaser Agent shall cause the amount of such overpayment to be paid to the applicable Counterparty promptly (but in no event later than [***]) after delivery to the Purchaser Agent, pursuant to Section 6.7(a), of the applicable inspection or audit report or certificate, as the case may be, showing such overpayment.  In the event that any inspection or audit conducted pursuant to Section 6.7(a) uncovers that the amounts actually paid to the Purchaser for any period in respect of the Purchased Royalties were less than the amounts that should have been paid to the Purchaser for such period in respect of the Purchased Royalties, the Seller shall cooperate and provide assistance as reasonably requested by the Purchaser Agent to cause the amount of such underpayment to be paid to the Purchaser by the applicable Counterparty in accordance with the timeframe set forth in the applicable License Agreement promptly after delivery to the Purchaser Agent, pursuant to Section 6.7(a), of the applicable inspection or audit report or certificate, as the case may be, showing such underpayment.  

  Section 6.8	Emory/GT License Agreement. 

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  (a)	The Seller (i) shall perform and comply with in all material respects its obligations under the Emory/GT License Agreement (after giving effect to the Emory/GT Consent), (ii) shall not, except with the Purchaser’s consent, amend, modify, supplement, restate, waive, cancel or terminate (or consent to any cancellation or termination of), in whole or in part, any provision of or right under any Emory/GT License Agreement (other than any amendment contemplated by Schedule 6.13), (iii) shall not, except with the Purchaser’s consent, enter into any new contract, agreement or legally binding arrangement which would reasonably be expected to have an adverse effect on the Emory/GT License Agreement; and (iv) shall not agree to do any of the foregoing.  The Seller shall promptly (and in any case within [***]) deliver to the Purchaser Agent copies of all fully-executed or definitive writings related to the matters set forth in clauses (ii), (iii) and (iv) of the immediately preceding sentence; provided that such writings shall be deemed delivered upon Seller filling such writings with the SEC.

  (b)	Except as otherwise expressly set forth in this ARTICLE VI and except as otherwise consented to by the Purchaser, the Seller shall not grant or withhold any consent, exercise or waive any right or option, fail to exercise any right or option or deliver to GT or Emory any notice under the Emory/GT License Agreement.  The Seller shall promptly (and in any case within [***]) deliver to the Purchaser Agent copies of all fully-executed or definitive writings related to the matters set forth in the immediately preceding sentence; provided that such writings shall be deemed delivered upon Seller filling such writings with the SEC.

  (c)	Promptly (and in any case within [***]) after (i) receiving (x) notice from GT or Emory, including any notice terminating the Emory/GT License Agreement  (in whole or in part), alleging any breach of or default under the Emory/GT License Agreement by the Seller or the Company, or asserting the existence of any facts, circumstances or events that, alone or together with other facts, circumstances or events, would reasonably be expected (with or without the giving of notice or passage of time, or both) to give rise to a breach of or default under the Emory/GT License Agreement by the Seller or the Company, or the right to terminate the Emory/GT License Agreement (in whole or in part) by Emory or GT, or (y) any other correspondence relating to the foregoing, or (ii) the Seller otherwise has Knowledge of any fact, circumstance or event that, alone or together with other facts, circumstances or events, would reasonably be expected (with or without the giving of notice or passage of time, or both) to give rise to a breach of or default under the Emory/GT License Agreement by the Seller or the Company, or the right to terminate the Emory/GT License Agreement (in whole or in part) by Emory or GT, in each case the Seller shall (A) (x) give written notice thereof to the Purchaser Agent and provide the Purchaser Agent with a written summary of all material details thereof, (y) to the extent not prohibited by obligations of confidentiality contained in the Emory/GT License Agreement, include a copy of any written notice received from Emory or GT, as applicable, and (z) in the case of any such breach or default or alleged breach or default by the Seller, describe in reasonable detail any corrective action the Seller proposes to take in respect of such breach or default, and (B) in the case of any such breach or default or alleged breach or default by the Seller or the Company, use its commercially reasonable efforts to cure such breach or default and give written notice to the Purchaser Agent upon curing such breach or default; provided, however, that, if the Seller fails to promptly (and in any case within [***]) cure any such breach or default, without limiting any other rights it may have, the Purchaser Agent shall, on behalf of the Purchaser and upon written notice to the Seller and to the extent permitted by Emory/GT License Agreement, be entitled to take any and all actions the Purchaser Agent reasonably considers necessary to promptly cure such breach or default, and the Seller shall cooperate with the Purchaser Agent for such purpose and reimburse the Purchaser Agent, promptly (but in no event later than [***]) following demand, for all amounts paid by Purchaser as well as out-of-pocket costs and expenses incurred by the Purchaser Agent in connection therewith.  Notwithstanding anything herein or in the Contribution Agreement to the contrary, Purchaser Agent agrees that, (i) except in the case of a Bankruptcy Event, prior to the date that [***] from the date of this Agreement, Purchaser Agent will not exercise such rights 

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  and (ii) Purchaser Agent shall consult with Seller prior to exercising such rights at any time.  Notwithstanding anything herein or in the Contribution Agreement to the contrary, in the event that (A) Purchaser Agent makes any payments to Emory/GT pursuant to this Section 6.8(c), or (B) Purchaser Agent makes any payments to a Counterparty as a result of the termination of the Emory/GT License Agreement, any amounts paid by Purchaser Agent to Emory/GT and any Counterparty shall constitute “Purchaser Payment Amounts”; provided that (i) Purchaser Agent shall promptly notify Seller of any Purchaser Payment Amounts paid by Purchaser Agent and (ii) that Purchaser Payment Amounts shall not include any proceeds received from (or available to be received from) the Escrow Account or any amount for which Purchaser Agent is reimbursed within [***] after Purchaser Agent provides notice to Seller.

  (d)	Promptly after the Seller obtains Knowledge of any actual or alleged breach of or default or any other actual or alleged material breach of or default under the Emory/GT License Agreement by Emory or GT, as applicable, or of the existence of any facts, circumstances or events that, alone or together with other facts, circumstances or events, would reasonably be expected (with or without the giving of notice or passage of time, or both) to give rise to any such breach of or default or the right to terminate the Emory/GT License Agreement (in whole or in part) by the Seller, in each case the Seller shall promptly (but in any event within [***]) give written notice thereof to the Purchaser Agent and provide the Purchaser Agent with a written summary of all material details thereof and act as mutually agreed to take such permissible actions (including commencing legal action against Emory or GT, as applicable, and the selection of legal counsel reasonably satisfactory to the Purchaser Agent) to enforce compliance by Emory or GT, as applicable, with the relevant provisions of the Emory/GT License Agreement and to exercise any or all of the Seller’s rights and remedies, whether under the Emory/GT License Agreement or by operation of law, with respect thereto.  If the Seller is required to act as directed by the Purchaser Agent pursuant to this Section 6.8(d), then the Purchaser shall reimburse the Seller, promptly on demand, for all out-of-pocket costs and expenses (including the reasonable fees and expenses of the Seller’s counsel) incurred by the Seller in connection with the Seller’s actions and exercise of rights and remedies pursuant to clause (ii) of the immediately preceding sentence; provided, however, that such out-of-pocket costs and expenses (including the reasonable fees and expenses of the Seller’s counsel) shall be borne by the Seller if (x) such breach, default or termination event or alleged breach, default or termination event results from a breach of or default under the Emory/GT License Agreement by the Seller or (y) the Seller acts without or contrary to the Purchaser Agent’s direction.  The Purchaser Agent shall, except to the extent prohibited by the obligations of confidentiality contained in the Emory/GT License Agreement, have the right, at its sole cost and expense, to attend (or, if the Seller is required to act as directed by the Purchaser Agent pursuant to this Section 6.8(d), participate in) any meeting, discussion, action, suit or other proceeding relating to any such breach, default or termination event or alleged breach, default or termination event, including any counterclaim, settlement discussions or meetings.

  Section 6.9	Tax Matters.

  (a)	All payments to the Purchaser under this Purchase and Sale Agreement shall be made without any deduction or withholding for or on account of any Tax unless required by Applicable Law; provided that, if any deduction or withholding for or on account of any Purchaser Indemnified Tax is required by Applicable Law to be made, and is made, by any applicable withholding agent in respect of any payment to the Purchaser under this Purchase and Sale Agreement, then the Seller shall, within [***] after such deduction or withholding is made, make a payment to the Purchaser so that, after all such required deductions and withholdings are made by any applicable withholding agent (including any deductions and withholdings required with respect to any additional payments under this Section 6.9(a)), the Purchaser receives an amount equal to the amount that it would have received had no deduction or withholding of such Purchaser Indemnified Taxes been made.

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  (b)	The Seller shall notify the Purchaser Agent in writing promptly (but in no event later than [***]) following the receipt of any written notification by any Counterparty or by an Affiliate of such Counterparty that such Counterparty intends to make any Permitted Tax Withholding.  The Parties shall cooperate in good faith to reduce or eliminate any Permitted Tax Withholding, including by providing to the applicable withholding agent certificates and such other information that is necessary to establish an exemption or reduction from such Permitted Tax Withholding; provided that no Party shall be obligated to provide any certificate or information if it is legally unable to do so.  In addition, the Seller shall, upon the reasonable request of the Purchaser Agent and at the Purchaser Agent’s expense, reasonably cooperate with the Purchaser Agent and use its commercially reasonable efforts to make such filings and take such other actions as may be reasonably necessary and specified by the Purchaser Agent in order to allow an exemption from or reduction of any Permitted Tax Withholding.

  (c)	The Parties agree not to take any position that is inconsistent with the provisions of Section 2.1(b) on any Tax return or in any Tax audit or other administrative or judicial proceeding unless required by Applicable Law or the good faith resolution of a tax audit or other tax proceeding.  If there is an inquiry by any Governmental Authority of the Seller, the Purchaser or the Purchaser Agent related to the treatment described in Section 2.1(b), the Parties shall cooperate with each other in responding to such inquiry in a commercially reasonable manner that is consistent with Section 2.1(b).

  Section 6.10	Existence.  The Seller shall (a) preserve and maintain its existence (provided, however, that nothing in this Section 6.10 shall prohibit the Seller from entering into any merger or consolidation with, or selling or otherwise transferring all or substantially all of its assets to, any other Person if the Seller is the continuing or surviving entity or if the surviving or continuing or acquiring entity assumes (either expressly or by operation of law) all of the obligations of the Seller under the Transaction Documents), (b) preserve and maintain its rights, franchises and privileges unless failure to do any of the foregoing would not reasonably be expected to have a Material Adverse Effect, (c) qualify and remain qualified in good standing in each jurisdiction where the failure to preserve and maintain such qualifications would reasonably be expected to have a Material Adverse Effect, including appointing and employing such agents or attorneys in each jurisdiction where it shall be necessary to take action under this Purchase and Sale Agreement, and (d) comply with its organizational documents, except, in the case of this clause (d), for any non-compliance that would not reasonably be expected to have a Material Adverse Effect.  The Purchaser acknowledges and agrees (to the maximum extent permitted under Applicable Law) that it shall not, and shall not cause any other Person to, petition for the bankruptcy of the Seller.

  Section 6.11	Payment Direction Letters. 

  (a)	At the Closing, the Seller and the Company shall deliver to each Counterparty a duly executed Payment Direction Letter in accordance with the applicable notice provisions of the applicable Existing License Agreement and also by e-mail (with the Payment Direction Letter attached thereto as a PDF attachment), and such e-mail shall include a request that the applicable Counterparty confirm receipt thereof by e-mail reply.  The Seller shall not amend any Payment Direction Letter or deliver any subsequent payment direction or instruction letter to a Counterparty without the prior written consent of the Purchaser Agent (not to be unreasonably withheld, conditioned or delayed). 

  (b)	The Seller shall ensure that any Future License Agreement will require that the Counterparty thereto make all payments to the Lockbox Account or such other account as the Purchaser Agent shall designate in writing.  The Seller shall, upon the request of the Purchaser, deliver a Payment Direction Letter to any Counterparty to a Future License Agreement.  

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  Section 6.12	Additional Covenants of the Seller.  The Seller shall:

  (a)	only enter into contracts in its own name as a legal entity separate from the owners of its Equity Interests and from any other Person;

  (b)	not commingle its assets with assets of any other Person, except in connection with, and for the limited purposes of, the Lockbox Account, except to the extent expressly permitted under the Contribution Agreement;

  (c)	conduct its business only in its own name and comply with all organizational formalities necessary to maintain its separate existence, except, in each case, to the extent expressly permitted under the Contribution Agreement;

  (d)	maintain separate books and records, showing its assets and liabilities separate and apart from those of any other person and not have its assets listed on any financial statement of any other person; provided, however, that the Seller’s assets may be included in consolidated financial statements of the Company in conformity with the applicable provisions of GAAP (provided such assets are also listed on the Seller’s own separate balance sheet);

  (e)	pay its own liabilities and expenses only out of its own funds; provided, that the foregoing shall not prohibit the payment of liabilities and expenses by the Company on behalf of the Seller so long as such payments are subject to reimbursement or are otherwise recorded as capital contributions or intercompany loans; and

  (f)	maintain adequate capital in light of its contemplated business purpose, transactions and liabilities.

  Section 6.13	Escrow Account.  Upon the occurrence of any of the conditions set forth on Schedule 6.13(1), Seller shall ensure that the Company promptly, but in any event within [***] of such event, deposits an amount equal to [***](the “Escrow Amount”) in an escrow account with U.S. Bank National Association (or such other agent agreed to by Purchaser and Seller), which funds shall be held in accordance with the terms and conditions set forth in an escrow agreement, substantially in the form of the Escrow Agreement, as modified by the principles set forth on Schedule 6.13(2). In the event the condition set forth on Schedule 6.13(2) is satisfied, the Escrow Amount shall be released back to Seller and Seller shall have no further obligation to escrow any funds pursuant to this Section 6.13.

  ARTICLE VII
THE CLOSING

  Section 7.1	Closing.  The closing of the transactions contemplated hereby (the “Closing”) shall take place on the date hereof, subject to the conditions set forth in Sections 7.2 and 7.3 being satisfied (the “Closing Date”) by electronic exchange of signatures.

  Section 7.2	Closing Deliverables of the Seller and the Company.  At the Closing, the Seller shall deliver or cause to be delivered to the Purchaser the following:

  (a)	the Bill of Sale duly executed by the Seller;

  (b)	each of the Payment Direction Letters duly executed by the Seller and the Company;

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  (c)	an opinion of Cooley LLP, counsel to the Seller, in form and substance reasonably satisfactory to the Purchaser Agent;

  (d)	a certificate of an executive officer of the Seller dated as of the Closing Date and:  (i) attaching copies, certified by such officer as true and complete, of (x) the organizational documents of the Seller and (y) resolutions of the governing body of the Seller authorizing and approving the execution, delivery and performance by the Seller of the Transaction Documents and the transactions contemplated hereby and thereby, (ii) setting forth the incumbency of the officer or officers of the Seller who have executed and delivered the Transaction Documents, including therein a signature specimen of each such officer or officers and (iii) attaching a copy, certified by such officer as true and complete, of a good standing certificate of the appropriate Governmental Authority of the Seller’s jurisdiction of organization, stating that the Seller is in good standing under the laws of such jurisdiction; 

  (e)	a consent to the assignment of the Emory/GT License Agreement, duly executed by the Company and each of Emory and GT, in form and substance reasonably satisfactory to the Purchaser (the “Emory/GT Consent”);

  (f)	a consent to the disclosure of Confidential Information (as defined in the Bausch License Agreement), duly executed by the Company and Bausch, in form and substance reasonably satisfactory to the Purchaser (the “Bausch Consent”);

  (g)	the Contribution Agreement duly executed by the Seller and the Company;

  (h)	the Equity Pledge Agreement duly executed by the Company; 

  (i)	UCC-1 financing statements to evidence and perfect the sale, assignment, transfer, conveyance and grant of the Purchased Royalties pursuant to Section 2.1 and the back-up security interest granted pursuant to Section 2.1(d); and

  (j)	A duly executed IRS Form W-9 from the Company certifying that it is exempt from U.S. federal backup withholding.  

  Section 7.3	Closing Deliverables of the Purchaser and the Purchaser Agent.  At the Closing, the Purchaser Agent shall deliver or cause to be delivered to the Seller the following:

  (a)	the Bill of Sale duly executed by the Purchaser; 

  (b)	counterpart to the Equity Pledge Agreement, duly executed by the Purchaser;

  (c)	a duly executed IRS Form W-9 from each of the Purchaser and the Purchaser Agent certifying that it is exempt from U.S. federal backup withholding; and

  (d)	a certificate of an executive officer of the Purchaser Agent dated as of the Closing Date and setting forth the incumbency of the officer or officers of the Purchaser and the Purchaser Agent who have executed and delivered the Transaction Documents to which the Purchaser or the Purchaser Agent is a party, including therein a signature specimen of each such officer or officers.

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  Section 7.4	Lockbox Account; Account Control Agreement.

  (a)	The Seller will establish the Lockbox Account on or prior to the Closing Date for the purpose of depositing all payments to be made by any Counterparty pursuant to each Covered License Agreement, which payments shall include all Purchased Royalties payable to the Purchaser pursuant to this Purchase and Sale Agreement.  

  (b)	Prior to or concurrently with the Purchaser’s payment of the Closing Payment pursuant to Section 2.2(a), each of the Purchaser Agent and the Seller shall deliver to the other Party a duly executed counterpart to the Account Control Agreement, which shall be a condition precedent to the Purchaser’s payment of the Closing Payment.

  (c)	The Seller shall pay all fees, expenses and charges of the Account Bank pursuant to the terms of the Account Control Agreement by depositing sufficient funds into the Lockbox Account when such fees, charges and expenses are due.  The Seller agrees that all Purchased Royalties deposited into the Lockbox Account are to be held in trust for the benefit of the Purchaser, and that the Seller disclaims and waives any claim or interest in such Purchased Royalties (other than, upon the occurrence of a Second Milestone Event, the Second Milestone Payment), so that the Purchaser may be assured of receiving the Purchased Royalties owned by the Purchaser.

  (d)	Prior to the Royalty Termination Date, the Seller shall have no right to terminate the Lockbox Account without the Purchaser’s prior written consent.

  (e)	The Seller hereby grants and pledges to the Purchaser, as security for its obligations created hereunder, a first priority security interest in and to all of the Seller’s right, title and interest in and the Lockbox Account and all funds deposited therein.

  ARTICLE VIII
INDEMNIFICATION

  Section 8.1	Indemnification by the Seller.  The Seller agrees to indemnify and hold harmless the Purchaser and its Affiliates (including the Purchaser Agent) and any or all of their respective partners, directors, trustees, officers, managers, employees, members, agents and controlling persons (each, a “Purchaser Indemnified Party”) harmless from and against, and will pay to each Purchaser Indemnified Party the amount of, any and all Losses awarded against or incurred or suffered by such Purchaser Indemnified Party, whether or not involving a Third Party Claim, arising out of (a) any breach of any representation or warranty made by the Seller or the Company in any of the Transaction Documents or in any certificate delivered by the Seller or the Company to the Purchaser or to the Purchaser Agent in writing pursuant to this Purchase and Sale Agreement, (b) any breach of or default under any covenant or agreement of the Seller or the Company in any of the Transaction Documents or License Agreements, (c) any Excluded Liabilities and Obligations or (d) any brokerage or finder’s fees or commissions or similar amounts incurred or owed by the Seller or the Company to any brokers, financial advisors or comparable other Persons retained or employed by it in connection with the transactions contemplated by this Purchase and Sale Agreement.  Any amounts due to any Purchaser Indemnified Party hereunder shall be payable by the Seller to such Purchaser Indemnified Party upon demand.

  Section 8.2	Indemnification by the Purchaser.  The Purchaser and the Purchaser Agent, jointly and severally, agree to indemnify and hold each of the Seller and its Affiliates and any or all of their respective partners, directors, officers, managers, members, employees, agents and controlling Persons (each, a “Seller Indemnified Party”) harmless from and against, and will pay to each Seller Indemnified 

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  Party the amount of, any and all Losses awarded against or incurred or suffered by such Seller Indemnified Party, whether or not involving a Third Party Claim, arising out of (a) any breach of any representation or warranty made by the Purchaser or the Purchaser Agent in any of the Transaction Documents or any certificate delivered by the Purchaser or the Purchaser Agent to the Seller in writing pursuant to this Purchase and Sale Agreement, (b) any breach of or default under any covenant or agreement of the Purchaser in any Transaction Document to which the Purchaser or the Purchaser Agent is party or (c) any brokerage or finder’s fees or commissions or similar amounts incurred or owed by the Purchaser or the Purchaser Agent to any brokers, financial advisors or comparable other Persons retained or employed by it in connection with the transactions contemplated by this Purchase and Sale Agreement.  Any amounts due to any Seller Indemnified Party hereunder shall be payable by the Purchaser and the Purchaser Agent to such Seller Indemnified Party upon demand.

  Section 8.3	Procedures for Third Party Claims.  If any Third Party Claim shall be brought or alleged against an indemnified party in respect of which indemnity is to be sought against an indemnifying party pursuant to Section 8.1 or Section 8.2, the indemnified party shall, promptly after receipt of notice of the commencement of such Third Party Claim, notify the indemnifying party in writing of the commencement thereof, enclosing a copy of all papers served, if any; provided, that the omission to so notify such indemnifying party will not relieve the indemnifying party from any liability that it may have to any indemnified party under Section 8.1 or Section 8.2 unless, and only to the extent that, the indemnifying party is actually prejudiced by such omission.  In the event that any Third Party Claim is brought against an indemnified party and it notifies the indemnifying party of the commencement thereof in accordance with this Section 8.3, the indemnifying party will be entitled, at the indemnifying party’s sole cost and expense, to participate therein and, to the extent that it may wish, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this ARTICLE VIII for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation.  In any such Third Party Claim, an indemnified party shall have the right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be at the sole cost and expense of such indemnified party unless (a) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (b) the indemnifying party has assumed the defense of such proceeding and has failed within a reasonable time to retain counsel reasonably satisfactory to such indemnified party or (c) the named parties to any such Third Party Claim (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential conflicts of interests between them based on the advice of counsel to the indemnified party.  It is agreed that the indemnifying party shall not, in connection with any Third Party Claim or related proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate law firm (in addition to local counsel where necessary) for all such indemnified parties.  The indemnifying party shall not be liable for any settlement of any Third Party Claim effected without its written consent, but, if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any Loss by reason of such settlement or judgment.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or discharge of any pending or threatened Third Party Claim in respect of which any indemnified party is or could have been a party and indemnity could be sought hereunder by such indemnified party, unless such settlement, compromise or discharge, as the case may be, (i) includes an unconditional, full written release of such indemnified party, in form and substance reasonably satisfactory to the indemnified party, from all liability on claims that are the subject matter of such claim or proceeding, (ii) does not include any statement as to an admission of fault, culpability or failure to act by or on behalf of any indemnified 

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  party and (iii) does not impose any continuing obligations or restrictions other than customary and reasonable confidentiality obligations relating to such claim, settlement or compromise.

  Section 8.4	Other Claims.  A claim by an indemnified party under this ARTICLE VIII for any matter not involving a Third Party Claim and in respect of which such indemnified party would be entitled to indemnification hereunder may be made by delivering, in good faith, a written notice of demand to the indemnifying party, which notice shall contain (a) a description and the amount of any Losses incurred or suffered or reasonably expected to be incurred or suffered by the indemnified party, (b) a statement that the indemnified party is entitled to indemnification under this ARTICLE VIII for such Losses and a reasonable explanation of the basis therefor, and (c) a demand for payment in the amount of such Losses.  For all purposes of this Section 8.4, the Seller shall be entitled to deliver such notice of demand to the Purchaser Agent on behalf of the Seller Indemnified Parties, and the Purchaser Agent shall be entitled to deliver such notice of demand to the Seller on behalf of the Purchaser Indemnified Parties.

  Section 8.5	Survival.  All representations, warranties and covenants made in this Purchase and Sale Agreement, in any other Transaction Document or in any certificate delivered pursuant to this Purchase and Sale Agreement shall survive [***].  The rights hereunder to indemnification, payment of Losses or other remedies based on any such representation, warranty or covenant shall not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time (whether before or after the execution and delivery of this Purchase and Sale Agreement or the Closing) in respect of the accuracy or inaccuracy of or compliance with, any such representation, warranty or covenant.

  Section 8.6	Remedies.  Except in the case of actual fraud, intentional misrepresentation, intentional wrongful acts, intentional breach, bad faith or willful misconduct and except as set forth in Section 11.2 or in the other Transaction Documents, (a) the indemnification afforded by this ARTICLE VIII shall be the sole and exclusive remedy for any and all Losses awarded against or incurred or suffered by a Party in connection with any breach of any representation or warranty made by a Party in any of the Transaction Documents or any certificate delivered by a Party to the other Party in writing pursuant to this Purchase and Sale Agreement or any breach of or default under any covenant or agreement by a Party pursuant to any Transaction Document, and (b) Purchaser acknowledges and agrees that Purchaser, together with its Affiliates and representatives, has made its own investigation of the Purchased Royalties and the Transferred Assets and the transactions contemplated by the Transaction Documents and is not relying on, and shall have no remedies in respect of, any implied warranties or upon any representation or warranty whatsoever as to the future amount or potential amount of the Purchased Royalties, or as to the creditworthiness of any Counterparty (or any of their respective Affiliates).

  Section 8.7	Limitations.  Notwithstanding anything in this Purchase and Sale Agreement to the contrary, (a) in no event shall any Seller Indemnified Party or Purchaser Indemnified Party have any liability for, or Losses be deemed to include, any special, punitive or exemplary damages, or any lost profits, whether in contract or tort, regardless of whether the other Party shall be advised, shall have reason to know, or in fact shall know of the possibility of such damages suffered or incurred by any such Seller Indemnified Party or Purchaser Indemnified Party in connection with this Purchase and Sale Agreement any of the other Transaction Documents or any of the transactions contemplated hereby or thereby, except to the extent any such damages are actually paid to a Third Party in accordance with Section 8.3 and (b) the Seller shall not have any liability under Section 8.1 in excess of [***]. Notwithstanding the foregoing, the limitations set forth in this Section 8.7 shall not apply to any claim for indemnification hereunder in the case of actual fraud, intentional misrepresentation, intentional wrongful acts, intentional breach, bad faith or willful misconduct.  The Parties acknowledge and agree that (a) the Purchaser’s Losses, if any, for any indemnifiable events under this Purchase and Sale Agreement will 

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  typically include Losses for Purchased Royalties that the Purchaser was entitled to receive in respect of its ownership of the Purchased Royalties but did not receive timely or at all due to such indemnifiable event and (b) subject to this Section 8.7, the Purchaser shall be entitled to make indemnification claims for all such missing or delayed Purchased Royalties that the Purchaser was entitled to receive in respect of its ownership of the Purchased Royalties as Losses hereunder (which claims shall be reviewed and assessed by the Parties in accordance with the procedures set forth in this ARTICLE VIII), and such missing or delayed Purchased Royalties shall not be deemed special, punitive or exemplary damages, or lost profits for any purpose of this Purchase and Sale Agreement.

  Section 8.8	Tax Treatment of Indemnification Payments.  For all purposes hereunder, any indemnification payments made pursuant to this ARTICLE VIII will be treated as an adjustment to the Investment Amount for all Tax purposes to the fullest extent permitted by Applicable Law.

  ARTICLE IX
CONFIDENTIALITY

  Section 9.1	Confidentiality.  Except as provided in this ARTICLE IX or otherwise agreed in writing by the Parties, the Parties agree that, during the term of this Purchase and Sale Agreement and until the tenth (10th) anniversary of the date of termination of this Purchase and Sale Agreement, each Party (the “Receiving Party”) shall keep confidential, and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Purchase and Sale Agreement (which includes the exercise of any rights or the performance of any obligations hereunder), any information (whether written or oral, or in electronic or other form) furnished to it by or on behalf of the other Party (the “Disclosing Party”) pursuant to the Existing Confidentiality Agreement or this Purchase and Sale Agreement, including the terms of this Purchase and Sale Agreement (such information, “Confidential Information” of the Disclosing Party), except for that portion of such information that:

  (a)	was already in the Receiving Party’s possession on a non-confidential basis prior to its disclosure to it by the Disclosing Party, or becomes known to the Receiving Party from a source other than the Disclosing Party and its representatives without any breach of this Purchase and Sale Agreement, in each case as evidenced by written records (provided, that, if such information was disclosed to the Receiving Party on a non-confidential basis by a source that is not the Disclosing Party, such source to the knowledge of the Receiving Party had the right to disclose such information to the Receiving Party without any legal, contractual or fiduciary obligation to, any person with respect to such information);

  (b)	is or becomes generally available to the public other than as a result of an act or omission by the Receiving Party or its Affiliates in breach of this Purchase and Sale Agreement; 

  (c)	was independently developed by the Receiving Party, as evidenced by written records, without use of or reference to the Confidential Information or in violation of the terms of this Purchase and Sale Agreement.  

  Section 9.2	Termination of Confidentiality Agreement.  Effective upon the date hereof, the Existing Confidentiality Agreement shall terminate and be of no further force or effect, and shall be superseded by the provisions of this Article IX.

  Section 9.3	Permitted Disclosure.  In the event that the Receiving Party or its Affiliates or any of its or its Affiliates’ representatives are requested by a governmental or regulatory authority or required by Applicable Law, regulation or legal process (including the regulations of a stock exchange or governmental or regulatory authority or the order or ruling of a court, administrative agency or other 

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  government or regulatory body of competent jurisdiction) to disclose any Confidential Information, the Receiving Party shall promptly, to the extent permitted by Applicable Law, notify the Disclosing Party in writing of such request or requirement so that the Disclosing Party may seek an appropriate protective order or other appropriate remedy (and if the Disclosing Party seeks such an order or other remedy, the Receiving Party will provide such cooperation, at the Receiving Party’s sole expense, as the Disclosing Party shall reasonably request).  If no such protective order or other remedy is obtained and the Receiving Party or its Affiliates or its or its Affiliates’ representatives are, in the view of their respective counsel (which may include their respective internal counsel), legally required to disclose Confidential Information, the Receiving Party or its Affiliates or its or its Affiliates’ representatives, as the case may be, shall only disclose that portion of the Confidential Information that their respective counsel advises that the Receiving Party or its Affiliates or its or its Affiliates’ representatives, as the case may be, are required to disclose and will exercise commercially reasonable efforts, at the Disclosing Party’s sole expense, to obtain reliable assurance that confidential treatment will be accorded to that portion of the Confidential Information that is being disclosed.  In any event, the Receiving Party will not oppose action by the Disclosing Party to obtain an appropriate protective order or other reliable assurance that confidential treatment will be accorded the Confidential Information.  Notwithstanding the foregoing, notice to the Disclosing Party shall not be required where disclosure is made (i) in response to a request by a governmental or regulatory authority having competent jurisdiction over the Receiving Party, its Affiliates or its or its Affiliates’ representatives, as the case may be, or (ii) in connection with a routine examination by a regulatory examiner, where in each case such request or examination does not expressly reference the Disclosing Party, its Affiliates, the Purchased Royalties or this Purchase and Sale Agreement.  The Receiving Party may disclose Confidential Information to its Affiliates, its and their employees, directors, officers, contractors, agents, and representatives, and to potential or actual acquirers, merger partners, permitted assignees, investment bankers, investors, limited partners, partners, lenders, or other financing sources (including, in the case of the Seller, any party evaluating the acquisition of any portion of the Royalties that are not included in the Purchased Royalties), and their respective directors, employees, contractors and agents; provided that such person or entity agrees to confidentiality and non-use obligations with respect thereto at least as stringent as those specified for in this Article IX.  Further, notwithstanding anything contained in this Article IX to the contrary, the Seller may disclose Confidential Information to the extent such disclosure is reasonably necessary to comply with the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or with any rule, regulation or legal process promulgated by the SEC or a stock exchange, subject to the Seller’s obligations set forth in Section 5.2.

  Section 9.4	Other Relevant Obligations.  In addition to, and without limiting, the Purchaser’s and the Purchaser Agent’s obligations under this Article IX, the Purchaser and the Purchaser Agent shall fully comply with any confidentiality obligations of the Seller or any of its Affiliates under the Aura License Agreement, the AV License Agreement, the Bausch License Agreement, and the REGENX License Agreement are applicable to the Confidential Information.

  ARTICLE X
TERMINATION

  Section 10.1	Termination of Agreement.  This Purchase and Sale Agreement shall terminate on the earlier of (a) the Royalty Termination Date and (b) mutual written agreement of the Purchaser and/or the Purchaser Agent and the Seller.

  Section 10.2	Effect of Termination.  Upon the termination of this Purchase and Sale Agreement pursuant to Section 10.1, this Purchase and Sale Agreement shall become void and of no further force and effect; provided, however, that (a) the provisions of Section 6.2, ARTICLE VIII, ARTICLE IX, this 

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  ARTICLE X and ARTICLE XI shall survive such termination and shall remain in full force and effect, (b) if, upon the termination of this Purchase and Sale Agreement, any Purchased Royalties or other amounts are payable to the Purchaser, this Purchase and Sale Agreement shall remain in full force and effect until any and all such payments have been made in full, and (except as provided in this Section 10.2) solely for that purpose, and (c) nothing contained in this Section 10.2 shall relieve any Party from liability for any breach of this Purchase and Sale Agreement that occurs prior to termination.

  ARTICLE XI
MISCELLANEOUS

  Section 11.1	Purchaser Agent.  

  (a)	The Purchaser hereby appoints and constitutes the Purchaser Agent as agent, proxy and attorney-in-fact, with full power of substitution, to act on behalf of the Purchaser for certain limited purposes, as specified herein, including the full power and authority to act on the Purchaser’s behalf as provided in Section 11.1(b).  The Purchaser further agree that such agency, proxy and attorney-in-fact shall be binding upon the successors, heirs, executors, administers and legal representatives of the Purchaser.  All decisions, actions, consents and instructions by the Purchaser Agent shall be binding upon the Purchaser, and the Purchaser shall have the right to object to, dissent from, protest or otherwise contest any such decision, action, consent or instruction.  The Seller shall be entitled to rely on any decision, action, consent or instruction of the Purchaser Agent as being the decision, action, consent or instruction of the Purchaser.

  (b)	The Purchaser Agent shall have such powers and authority as are necessary to carry out the functions assigned to it under this Purchase and Sale Agreement.  Without limiting the generality of the foregoing, the Purchaser Agent shall have full power, authority and discretion to (i) consummate the transactions contemplated under the Transaction Documents; (ii) negotiate disputes arising under, or relating to, the Transaction Documents (including pursuant to ARTICLE VIII hereof); (iii) receive and disburse to the Purchaser any funds received on behalf of the Purchaser under the Transaction Documents (including pursuant to ARTICLE VIII hereof); (iv) withhold any amounts received on behalf of the Purchaser under this Purchase and Sale Agreement or otherwise to satisfy any and all obligations or liabilities incurred by the Purchaser or the Purchaser Agent in the performance of their duties hereunder (including pursuant ARTICLE VIII hereof); (v) execute and deliver any amendment or waiver to the Transaction Documents (without the prior approval of the Purchaser); (vi) enter into subordination, non-disturbance and similar agreements in connection with the licensing of intellectual property and other general intangibles permitted under this Agreement to the extent reasonably requested by a licensee or sub-licensee thereof, and (vii) to take all other actions to be taken by or on behalf of the Purchaser in connection with the Transaction Documents.  The Purchaser Agent shall have no duties or obligations hereunder, including any fiduciary duties, except those set forth herein, and such duties and obligations shall be determined solely by the express provisions of this Purchase and Sale Agreement.

  (c)	The Purchaser Agent may resign at any time, and may be removed for any reason or no reason by the vote or written consent of the Purchaser.  In the event of the resignation or removal of the Purchaser Agent, a new Purchaser Agent shall be appointed by the vote or written consent of the Purchaser.  Notice of such vote or a copy of the written consent appointing such new Purchaser Agent shall be sent to the Seller; provided, that until such notice is received, the Seller, as applicable, shall be entitled to rely on the decisions, actions, consents and instructions of the prior Purchaser Agent as described in Section 11.1(a).  

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  (d)	The Purchaser Agent and the Purchaser agree that in connection with the entry into the Permitted Platform License by the Seller and the Company, the Purchaser Agent, acting on behalf of the Purchaser, shall enter into a subordination and nondisturbance agreement, in form and substance reasonably acceptable to the Seller and the Purchaser, upon request of the Seller.

  Section 11.2	Specific Performance.  Each Party acknowledges and agrees that, if it fails to perform any of its obligations under any of the Transaction Documents, the other Parties will have no adequate remedy at law.  In such event, each Party agrees that the other Parties shall have the right, in addition to any other rights it may have (whether at law or in equity), to seek specific performance of this Purchase and Sale Agreement.

  Section 11.3	Notices.  All notices, consents, waivers and other communications hereunder shall be in writing and shall be effective (a) upon receipt when sent by registered or certified mail, return receipt requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, (b) upon receipt when sent by an overnight courier (costs prepaid and receipt requested), (c) on the date personally delivered to an authorized officer of the Party to which sent or (d) on the date transmitted by e-mail with a confirmation of receipt, addressed to the recipient as follows:

  if to the Seller, to:

  CLEARSIDE ROYALTY LLC
c/o Clearside Biomedical, Inc.
900 North Point Parkway, Suite 200

  Alpharetta, GA 30005
Attention: George Lasezkay
Email: [***]

   

  with a copy to (which shall not constitute notice):

   

  Cooley LLP

  1299 Pennsylvania Avenue, NW, Suite 700 

  Washington, DC 20004
Attention: Michael Tollini 
Email:	[***]

   

  if to the Purchaser or the Purchaser Agent, to:

  
300 Atlantic Street, Suite 600
Stamford, CT 06901
Attention: Clarke Futch
Email: [***]

  with another copy to (which shall not constitute notice):

  300 Atlantic Street, Suite 600
Stamford, CT 06901
Attention: Chief Legal Officer
Email: [***]

 

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  and

Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103
Attention: Conor F. Larkin; Andrew R. Mariniello 
Email: [***]

  Each Party may, by notice given in accordance herewith to the other Party, designate any further or different address to which subsequent notices, consents, waivers and other communications shall be sent.

  Section 11.4	Successors and Assigns.  The Seller shall not be entitled to assign any of its rights or delegate any of its obligations under this Purchase and Sale Agreement without the prior written consent of the Purchaser Agent, (i) subject to the proviso in clause (a) of Section 6.10 and (ii) provided that consent shall not be required for an acquisition of all or substantially all assets of the Seller as contemplated pursuant to the proviso in the second sentence of Section 2.3.  The Purchaser may, without the consent of the Seller, assign any of its rights and delegate any of its obligations under this Purchase and Sale Agreement without restriction to any entity or entities other than a Competitor; provided that in connection with any such assignment the Seller shall be provided with an IRS Form W-9 or applicable IRS Form W-8, as appropriate, with respect to such assignee.  The Purchaser Agent may, without the consent of the Seller, assign its rights and obligations under this Purchase and Sale Agreement in full without restriction to any entity or entities other than a Competitor; provided that in connection with any such assignment the Seller shall be provided with an IRS Form W-9 or applicable IRS Form W-8, as appropriate, with respect to such assignee.  Each Party shall give written notice to the other Parties of any assignment permitted by this Section 11.4 promptly (but in any event within [***]) after the occurrence thereof.  The Seller shall be under no obligation to reaffirm any representations, warranties or covenants made in this Purchase and Sale Agreement or any of the other Transaction Documents or take any other action in connection with any such assignment by the Purchaser or by the Purchaser Agent.  Any purported assignment of rights or delegation of obligations in violation of this Section 11.4 will be void.  Subject to the foregoing, this Purchase and Sale Agreement will apply to, be binding upon, and inure to the benefit of, the successors and permitted assigns of the Parties. 

  Section 11.5	Independent Nature of Relationship.  The relationship between the Seller and the Purchaser is solely that of seller and purchaser, and neither the Seller nor the Purchaser has any fiduciary or other special relationship with the other Party or any of its Affiliates.  This Purchase and Sale Agreement is not a partnership or similar agreement, and nothing contained herein or in any other Transaction Document shall be deemed to constitute the Seller and the Purchaser as a partnership, an association, a joint venture or any other kind of entity or legal form for any purposes, including any Tax purposes.  The Parties agree that they shall not take any inconsistent position with respect to such treatment in a filing with any Governmental Authority.

  Section 11.6	Entire Agreement.  This Purchase and Sale Agreement, together with the Exhibits and Schedules hereto and the other Transaction Documents, constitute a complete and exclusive statement of the terms of agreement between the Parties, and supersede all prior agreements, understandings and negotiations, both written and oral, between the Parties, with respect to the subject matter of this Purchase and Sale Agreement.  No representation, inducement, promise, understanding, condition or warranty not set forth herein (or in the Exhibits or Schedules hereto or the other Transaction Documents) has been made or relied upon by any Party.

  Section 11.7	Governing Law.

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  (a)	THIS PURCHASE AND SALE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

  (b)	Each Party irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of (i) the United States District Court for the Southern District of New York and (ii) the Supreme Court of the State of New York, Borough of Manhattan, for purposes of any claim, action, suit or proceeding arising out of this Purchase and Sale Agreement, any of the other Transaction Documents or any of the transactions contemplated hereby or thereby, and agrees that all claims in respect thereof shall be heard and determined only in such courts.  Each Party agrees to commence any such claim, action, suit or proceeding only in the United States District Court for the Southern District of New York or, if such claim, action, suit or proceeding cannot be brought in such court for jurisdictional reasons, in the Supreme Court of the State of New York, Borough of Manhattan, and agrees not to bring any such claim, action, suit or proceeding in any other court.  Each Party hereby waives, and agrees not to assert in any such claim, action, suit or proceeding, to the fullest extent permitted by Applicable Law, any claim that (i) such Party is not personally subject to the jurisdiction of such courts, (ii) such Party and such Party’s property is immune from any legal process issued by such courts or (iii) any claim, action, suit or proceeding commenced in such courts is brought in an inconvenient forum.  Each Party agrees that a final judgment in any such claim, action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Applicable Law.  Each Party acknowledges and agrees that this Section 11.7(b) constitutes a voluntary and bargained-for agreement between the Parties.

  (c)	The Parties agree that service of process in any claim, action, suit or proceeding referred to in Section 11.7(b) may be served on any Party anywhere in the world, including by sending or delivering a copy of such process to such Party in any manner provided for the giving of notices in Section 11.3.  Nothing in this Purchase and Sale Agreement will affect the right of any Party to serve process in any other manner permitted by Applicable Law.  Each Party waives personal service of any summons, complaint or other process, which may be made by any other means permitted by New York law.

  Section 11.8	Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS PURCHASE AND SALE AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY HERETO WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS PURCHASE AND SALE AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.8.

  Section 11.9	Severability.  If one or more provisions of this Purchase and Sale Agreement are held to be invalid or unenforceable by a court of competent jurisdiction, such provision shall be excluded from this Purchase and Sale Agreement and the balance of this Purchase and Sale Agreement shall be interpreted as if such provision were so excluded and shall remain in full force and effect and be 

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  enforceable in accordance with its terms.  Any provision of this Purchase and Sale Agreement held invalid or unenforceable only in part or degree by a court of competent jurisdiction shall remain in full force and effect to the extent not held invalid or unenforceable.

  Section 11.10	Counterparts.  This Purchase and Sale Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Purchase and Sale Agreement shall become effective when each Party shall have received a counterpart hereof signed by the other Party.  Any counterpart may be executed by facsimile or other similar means of electronic transmission, including “PDF”, and such facsimile or other electronic transmission shall be deemed an original.

  Section 11.11	Amendments; No Waivers.  Neither this Purchase and Sale Agreement nor any term or provision hereof may be amended, supplemented, restated, waived, changed or modified except with the written consent of the Parties.  No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  No notice to or demand on any Party in any case shall entitle it to any notice or demand in similar or other circumstances.  No waiver or approval hereunder shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions.  No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Applicable Law.

  Section 11.12	No Third Party Rights.  Other than the Parties, no Person will have any legal or equitable right, remedy or claim under or with respect to this Purchase and Sale Agreement or any of the other Transaction Documents.  This Purchase and Sale Agreement may be amended or terminated, and any provision of this Purchase and Sale Agreement may be waived, without the consent of any Person who is not a Party.  The Seller shall enforce any legal or equitable right, remedy or claim under or with respect to this Purchase and Sale Agreement for the benefit of the Seller Indemnified Parties and the Purchaser and the Purchaser Agent shall enforce any legal or equitable right, remedy or claim under or with respect to this Purchase and Sale Agreement for the benefit of the Purchaser Indemnified Parties.  

  Section 11.13	Table of Contents and Headings.  The Table of Contents and headings of the Articles and Sections of this Purchase and Sale Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof. 

  {SIGNATURE PAGE FOLLOWS}

   

   

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  IN WITNESS WHEREOF, the Parties have executed this Purchase and Sale Agreement as of the day and year first written above.

  SELLER:

  CLEARSIDE ROYALTY LLC, a Delaware limited liability company

   

  By:	/s/ George Lasezkay
	Name:  George Lasezkay
	Title:    Chief Executive Officer

   

   

   

   

  [Signature Page to Purchase and Sale Agreement]

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  Healthcare Royalty Partners IV, L.P.

  By: HealthCare Royalty GP IV, LLC, its General Partner

  By: HealthCare Royalty Management, LLC, its

  Investment Manager

   

  By: /s/ Clarke B. Futch

  Name:  Clarke B. Futch

  Title:  Chief Executive Officer  

   

   

   

  hcr collateral management, llc

   

  By: /s/ Clarke B. Futch

  Name:  Clarke B. Futch

  Title:  Chief Executive OfficerExhibit 4.2

 

EXECUTION VERSION

 

AMENDMENT AND RESTATEMENT AGREEMENT

 

DATED 11 JANUARY 2018

 

BETWEEN

 

AMONG OTHERS

 

VODAFONE GROUP PLC

 

AND

 

THE ROYAL BANK OF SCOTLAND PLC

 

as Exiting Agent

 

relating to a EURO 3,860,000,000 (as increased to EURO 4,010,000,000) Credit Agreement

 

dated 28 March 2014

 

 

Allen & Overy LLP

 

 

CONTENTS

 

	
Clause
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Interpretation
    	
 
    	
2
    
	
2.
    	
 
    	
Amendments
    	
 
    	
2
    
	
3.
    	
 
    	
Representations
    	
 
    	
3
    
	
4.
    	
 
    	
Fees
    	
 
    	
3
    
	
5.
    	
 
    	
Consents
    	
 
    	
3
    
	
6.
    	
 
    	
Agent and Euro   Swingline Agent
    	
 
    	
4
    
	
7.
    	
 
    	
Miscellaneous
    	
 
    	
4
    
	
8.
    	
 
    	
Governing law
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedules
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Conditions precedent
    	
 
    	
6
    
	
2.
    	
 
    	
Parties
    	
 
    	
7
    
	
 
    	
 
    	
Part 1             Lenders
    	
 
    	
7
    
	
 
    	
 
    	
Part 2             Mandated Lead   Arrangers
    	
 
    	
9
    
	
 
    	
 
    	
Part 3             Co-Arrangers
    	
 
    	
10
    
	
 
    	
 
    	
Part 4             Exiting Lenders
    	
 
    	
11
    
	
3.
    	
 
    	
Amended Credit   Agreement
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signatories
    	
 
    	
13
    

 

 

THIS AGREEMENT is dated 11 January 2018 and is made

 

BETWEEN:

 

(1)           VODAFONE GROUP PLC (registered number 1833679) (Vodafone);

 

(2)           THE FINANCIAL INSTITUTIONS listed in Part 1 of Schedule 2 as Lenders;

 

(3)           THE FINANCIAL INSTITUTIONS listed in Part 2 of Schedule 2 as Mandated Lead Arrangers;

 

(4)           THE FINANCIAL INSTITUTIONS listed in Part 3 of Schedule 2 as Co-Arrangers;

 

(5)           THE FINANCIAL INSTITUTIONS listed in Part 4 of Schedule 2 as Exiting Lenders;

 

(6)           THE ROYAL BANK OF SCOTLAND PLC as Agent for and on behalf of the other Finance Parties under and as defined in the Credit Agreement defined below (in this capacity, the Exiting Agent);

 

(7)           THE ROYAL BANK OF SCOTLAND PLC as euro swingline agent (in this capacity, the Exiting Euro Swingline Agent);

 

(8)           BARCLAYS BANK PLC as successor agent (in this capacity the Successor Agent); and

 

(9)           BARCLAYS BANK PLC as successor euro swingline agent (in this capacity the Successor Euro Swingline Agent).

 

BACKGROUND

 

(A)          This Agreement is supplemental to and amends and restates a credit agreement dated 28 March 2014 between, among others, Vodafone and the Existing Agent (the Credit Agreement).

 

(B)          Pursuant to clause 26.1 (Procedure) of the Credit Agreement, the Majority Lenders or, where applicable, the Lenders (each as defined in the Credit Agreement and, for the avoidance of doubt, excluding the Exiting Lenders) have consented to the amendments to the Credit Agreement contemplated by this Agreement and to amend and restate the Credit Agreement as set out in this Agreement.

 

(C)          The Exiting Lenders have not consented to the amendments to the Credit Agreement and each Exiting Lender shall be prepaid and their respective Commitments cancelled in full on the Effective Date in accordance with Clause 2(c) hereto.

 

(D)          Pursuant to clause 20.15 (Resignation of the Agent or the Euro Swingline Agent) of the Credit Agreement, each of the Exiting Agent and the Exiting Euro Swingline Agent intends to resign from its respective role as Agent and Euro Swingline Agent under the Credit Agreement and the Majority Lenders, after consultation with Vodafone, intend to appoint (on and from the Effective Date) the Successor Agent and Successor Euro Swingline Agent as Agent and Euro Swingline Agent respectively under the Amended Credit Agreement.

 

1

 

IT IS AGREED as follows:

 

1.             INTERPRETATION

 

1.1          Definitions

 

In this Agreement:

 

Amended Credit Agreement means the Credit Agreement as amended and restated by this Agreement.

 

Effective Date means the date on which the Exiting Agent and the Successor Agent each gives the notifications to Vodafone and to the Lenders under Clause 2(b) (Amendments) below or such other date as Vodafone, the Exiting Agent and the Successor Agent may agree.

 

Successor Agent Fee Letter means any fee letter dated on or around the date of this Agreement between Vodafone, the Successor Agent and the Successor Euro Swingline Agent in connection with this Agreement and the Amended Credit Agreement.

 

Supplemental Fee Letter means any fee letter dated on or around the date of this Agreement between, among others, Vodafone and the Mandated Lead Arrangers (as defined in the Credit Agreement) in connection with this Agreement and the Amended Credit Agreement.

 

1.2          Construction

 

(a)           Capitalised terms defined in the Credit Agreement have, unless expressly defined in this Agreement, the same meaning in this Agreement.

 

(b)           The provisions of clause 1.2 (Construction) and clause 35 (Jurisdiction) of the Credit Agreement apply to this Agreement as though they were set out in full in this Agreement except that references to the Credit Agreement or to the Finance Documents are to be construed as references to this Agreement.

 

(c)           Bank of America Merrill Lynch International Limited is a reference to its successor in title Bank of America Merrill Lynch International Designated Activity Company (including, without limitation, its branches) pursuant to and with effect from the merger between Bank of America Merrill Lynch International Limited and Bank of America Merrill Lynch International Designated Activity Company that takes effect in accordance with the Cross-Border Mergers Directive (2005/56/EC) (as codified) as implemented in the United Kingdom and Ireland. Notwithstanding anything to the contrary in this Agreement, a transfer of rights and obligations from Bank of America Merrill Lynch International Limited to Bank of America Merrill Lynch International Designated Activity Company pursuant to such merger shall be permitted.

 

2.             AMENDMENTS

 

(a)           Subject as set out below, the Credit Agreement will be amended from the Effective Date so that it reads as if it were restated in the form set out in Schedule 3 (Amended Credit Agreement).

 

(b)           The Credit Agreement will not be amended by this Agreement unless and until:

 

(i)            the Exiting Agent notifies Vodafone and the Lenders that it has received all of the documents set out in Schedule 1 (Conditions precedent) in form and substance satisfactory to the Exiting Agent. The Exiting Agent must give this notification as soon as reasonably practicable;

 

2

 

(ii)           the Successor Agent and the Successor Euro Swingline Agent notifies Vodafone and the Lenders that it has satisfied all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to any Party to the Credit Agreement. The Successor Agent and the Successor Euro Swingline Agent must give this notification as soon as reasonably practicable; and

 

(iii)          the Successor Agent and the Successor Euro Swingline Agent notifies Vodafone and the Lenders that it has received a duly executed Successor Agent Fee letter. The Successor Agent and the Successor Euro Swingline Agent must give this notification as soon as reasonably practicable.

 

(c)           On the Effective Date, the Commitments of each of the Exiting Lenders under the Credit Agreement will be cancelled in full and all amounts outstanding under the Finance Documents in relation thereto will be prepaid in full. Any other accrued amounts due to the Exiting Lenders (including any interest and commitment fees accrued up to and including the Effective Date) shall be paid in full within 10 Business Days of the Effective Date.

 

(d)           If the Exiting Agent fails to give the notification under paragraph (b)(i) above by the date falling ten Business Days after the date of this Agreement, the Effective Date shall not occur and the Credit Agreement will not be amended in the manner contemplated by this Agreement.

 

3.             REPRESENTATIONS

 

Vodafone (for itself and, where relevant, its Controlled Subsidiaries) makes the representations and warranties set out in clause 16.2 (Status) to clause 16.9 (No Event of Default) (inclusive) and clauses 16.13 (Sanctions), 16.14 (Anti-money laundering) and 16.15 (Anti-corruption law) of the Credit Agreement on the date of this Agreement and on the Effective Date, in each case by reference to the facts and circumstances then existing and as if references to “the Finance Documents” include this Agreement and, on the Effective Date, the Amended Credit Agreement and as if references to “the Agreement” are references to, on the Effective Date, the Amended Credit Agreement.

 

4.             FEES

 

(a)           Vodafone must pay arrangement and other fees in relation to this Agreement in the amount and at the time set out in each Supplemental Fee Letter.

 

(b)           Vodafone must pay fees in relation to this Agreement and the Amended Credit Agreement in the amount and at the time set out in the Successor Agent Fee Letter.

 

5.             CONSENTS

 

On the Effective Date, Vodafone:

 

(a)           confirms its acceptance of the Amended Credit Agreement and agrees that it is bound by the terms of the Amended Credit Agreement; and

 

(b)           confirms that any guarantee created or given by it under the Amended Credit Agreement:

 

(i)            continues in full force and effect on the terms of the Amended Credit Agreement; and

 

(ii)           extends to its obligations under the Finance Documents (including the Amended Credit Agreement).

 

3

 

6.             AGENT AND EURO SWINGLINE AGENT

 

(a)           The Exiting Agent and the Exiting Euro Swingline Agent each hereby gives notice to the Lenders and Vodafone pursuant to clause 20.15(a) (Resignation of the Agent or the Euro Swingline Agent) of the Credit Agreement that it intends to resign from its role as Agent and Euro Swingline Agent respectively under the Credit Agreement, with effect on and from the Effective Date.

 

(b)           The Majority Lenders hereby appoint the Successor Agent and the Successor Euro Swingline Agent as successor Agent and successor Euro Swingline Agent respectively, pursuant to clause 20.15(a) (Resignation of the Agent or the Euro Swingline Agent) of the Credit Agreement, with effect on and from the Effective Date.

 

(c)           Subject to satisfaction of the conditions under clauses 2(b)(ii) and 2(b)(iii) above, each of the Successor Agent and the Successor Euro Swingline Agent hereby accepts the appointments referred to in paragraph (b) above, pursuant to clause 20.15(c) (Resignation of the Agent or the Euro Swingline Agent) of the Credit Agreement, with effect on and from the Effective Date.

 

(d)           Subject to satisfaction of the conditions under clauses 2(b)(ii) and 2(b)(iii) above, on and from the Effective Date:

 

(i)            the Exiting Agent and the Exiting Euro Swingline Agent shall cease to act in their respective capacity as Agent and Euro Swingline Agent under the Credit Agreement and, for the avoidance of doubt, under the Amended Credit Agreement and shall, subject to clause 20.15(d) (Resignation of the Agent or the Euro Swingline Agent) of the Amended Credit Agreement, have no further obligation under any Finance Document; and

 

(ii)           the Successor Agent and the Successor Euro Swingline Agent shall succeed to the position of Agent and Euro Swingline Agent respectively under the Amended Credit Agreement.

 

7.             MISCELLANEOUS

 

(a)           Each of this Agreement, the Amended Credit Agreement and each Supplemental Fee Letter is a Finance Document.

 

(b)           Subject to the terms of this Agreement, the Credit Agreement will remain in full force and effect and, from the Effective Date, the Credit Agreement and this Agreement will be read and construed as one document.

 

(c)           Each Finance Party reserves any other right it may have now or subsequently. Except to the extent expressly waived in this Agreement, no waiver of any provision of any Finance Document is given by the terms of this Agreement and the Finance Parties expressly reserve all their rights and remedies in respect of any breach of, or other Default under, the Finance Documents.

 

(d)           Clause 31 (Severability), 32 (Counterparts) and 33 (Notices) shall apply to this Agreement as if set out here in full.

 

(e)           Vodafone must, at its own expense, take such action and do such other things as the Exiting Agent or Successor Agent may reasonably require to carry out and give effect to the transactions contemplated in this Agreement.

 

4

 

8.             GOVERNING LAW

 

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

 

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

 

5

 

SCHEDULE 1

 

CONDITIONS PRECEDENT

 

1.             Corporate documentation

 

(a)           A copy of the memorandum and articles of association and certificate of incorporation of Vodafone or, a certificate of an authorised signatory of Vodafone confirming that the copy in the Exiting Agent’s possession is still correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

(b)           A copy of a resolution of the board of directors of Vodafone (or, if applicable, a committee of its board of directors):

 

(i)            approving the terms of, and the transactions contemplated by, this Agreement, the Amended Credit Agreement and each Supplemental Fee Letter and resolving that it execute this Agreement and each Supplemental Fee Letter;

 

(ii)           authorising a specified person or persons to execute this Agreement and each Supplemental Fee Letter on its behalf; and

 

(iii)          authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with this Agreement, the Amended Credit Agreement and each Supplemental Fee Letter.

 

(c)           If applicable, a copy of a resolution of the board of directors of Vodafone establishing the committee referred to in paragraph (b) above.

 

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

 

(e)           A certificate of an authorised signatory of Vodafone confirming that as at the date of the Effective Date the borrowing of the Total Commitments in full (including the utilisation of the new accordion option in full) and the borrowing of the Total Commitments under (and as defined in) the USD Facility (as defined in the Amended Credit Agreement) in full would not together cause any borrowing limit or limit on the giving of guarantees binding on it to be exceeded (whether as a result of such limit having been waived or otherwise).

 

(f)            A certificate of an authorised signatory of Vodafone certifying that each copy document specified in this Schedule is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

2.             Legal opinion

 

A legal opinion of Allen & Overy LLP, legal advisers to the Finance Parties in England, addressed to the Finance Parties at the date of that opinion.

 

3.             Other documents and evidence

 

(a)           Each duly executed Supplemental Fee Letter.

 

(b)           Evidence that the Commitments of each of the Exiting Lenders under the Credit Agreement have been cancelled and all amounts outstanding under the Finance Documents in relation thereto have been prepaid in full.

 

6

 

SCHEDULE 2

 

PARTIES

 

PART 1

 

LENDERS

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED

 

BANK OF CHINA LIMITED, LONDON BRANCH

 

THE BANK OF NEW YORK MELLON

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 

BARCLAYS BANK PLC

 

BBVA IRELAND P.L.C.

 

BNP PARIBAS SA, LONDON BRANCH

 

CITIBANK N.A., LONDON BRANCH

 

COMMERZBANK AG, LONDON BRANCH

 

DEUTSCHE BANK LUXEMBOURG S.A.

 

GOLDMAN SACHS BANK USA

 

HSBC BANK PLC

 

ING BANK N.V., LONDON BRANCH

 

INTESA SANPAOLO S.P.A., LONDON BRANCH

 

JPMORGAN CHASE BANK, N.A., LONDON BRANCH

 

LLOYDS BANK PLC

 

MIZUHO BANK, LTD

 

MORGAN STANLEY BANK, N.A.

 

ROYAL BANK OF CANADA

 

SANTANDER UK PLC

 

SOCIETE GENERALE, LONDON BRANCH

 

STANDARD CHARTERED BANK

 

SUMITOMO MITSUI BANKING CORPORATION

 

7

 

THE ROYAL BANK OF SCOTLAND PLC

 

THE TORONTO-DOMINION BANK

 

UBS AG, LONDON BRANCH

 

UNICREDIT BANK AG, LONDON BRANCH

 

8

 

PART 2

 

MANDATED LEAD ARRANGERS

 

BANCO BILBAO VIZCAYA ARGENTARIA S.A.

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED

 

BANK OF CHINA LIMITED, LONDON BRANCH

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 

BARCLAYS BANK PLC

 

BNP PARIBAS SA

 

CITIGROUP GLOBAL MARKETS LIMITED

 

COMMERZBANK AG, LONDON BRANCH

 

DEUTSCHE BANK LUXEMBOURG S.A.

 

GOLDMAN SACHS BANK USA

 

HSBC BANK PLC

 

ING BANK N.V., LONDON BRANCH

 

INTESA SANPAOLO S.P.A.

 

J.P. MORGAN SECURITIES PLC

 

LLOYDS BANK PLC

 

MIZUHO BANK, LTD

 

MORGAN STANLEY N.A.

 

RBC CAPITAL MARKETS

 

SANTANDER UK PLC

 

SOCIETE GENERALE, LONDON BRANCH

 

SUMITOMO MITSUI BANKING CORPORATION

 

THE ROYAL BANK OF SCOTLAND PLC

 

UBS LIMITED

 

UNICREDIT BANK AG, LONDON BRANCH

 

9

 

PART 3

 

CO-ARRANGERS

 

THE BANK OF NEW YORK MELLON

 

STANDARD CHARTERED BANK

 

THE TORONTO-DOMINION BANK

 

10

 

PART 4

 

EXITING LENDERS

 

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

 

BANCO DE SABADELL S.A., LONDON BRANCH

 

CHINA CONSTRUCTION BANK CORPORATION LONDON BRANCH

 

NATIONAL AUSTRALIA BANK LIMITED

 

11

 

SCHEDULE 3

 

AMENDED CREDIT AGREEMENT

 

12

 

EXECUTION VERSION

 

FACILITY AGREEMENT

 

DATED 28 March 2014 as amended and restated on 11 January 2018

 

EURO 3,840,000,000

 

REVOLVING CREDIT FACILITY

 

for

 

VODAFONE GROUP PLC

 

 

Allen & Overy LLP

 

 

CONTENTS

 

	
Clause
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Interpretation
    	
 
    	
1
    
	
2.
    	
 
    	
The Facilities
    	
 
    	
25
    
	
3.
    	
 
    	
Purpose
    	
 
    	
30
    
	
4.
    	
 
    	
Conditions Precedent
    	
 
    	
31
    
	
5.
    	
 
    	
Advances
    	
 
    	
32
    
	
6.
    	
 
    	
Extension Options
    	
 
    	
33
    
	
7.
    	
 
    	
Repayment
    	
 
    	
35
    
	
8.
    	
 
    	
Prepayment and   Cancellation
    	
 
    	
36
    
	
9.
    	
 
    	
Interest
    	
 
    	
38
    
	
10.
    	
 
    	
Payments
    	
 
    	
42
    
	
11.
    	
 
    	
Taxes
    	
 
    	
45
    
	
12.
    	
 
    	
Market Disruption
    	
 
    	
50
    
	
13.
    	
 
    	
Increased Costs
    	
 
    	
51
    
	
14.
    	
 
    	
Illegality and   Mitigation
    	
 
    	
53
    
	
15.
    	
 
    	
Guarantee
    	
 
    	
54
    
	
16.
    	
 
    	
Representations and   Warranties
    	
 
    	
58
    
	
17.
    	
 
    	
Undertakings
    	
 
    	
62
    
	
18.
    	
 
    	
[Clause deliberately   not used]
    	
 
    	
67
    
	
19.
    	
 
    	
Events of Default
    	
 
    	
67
    
	
20.
    	
 
    	
The Agents and the   Arrangers
    	
 
    	
71
    
	
21.
    	
 
    	
Fees
    	
 
    	
76
    
	
22.
    	
 
    	
Expenses
    	
 
    	
77
    
	
23.
    	
 
    	
Stamp Duties
    	
 
    	
78
    
	
24.
    	
 
    	
Indemnities
    	
 
    	
78
    
	
25.
    	
 
    	
Evidence and   Calculations
    	
 
    	
79
    
	
26.
    	
 
    	
Amendments and Waivers
    	
 
    	
80
    
	
27.
    	
 
    	
Changes to the Parties
    	
 
    	
82
    
	
28.
    	
 
    	
Disclosure of   Information
    	
 
    	
90
    
	
29.
    	
 
    	
Set-off
    	
 
    	
92
    
	
30.
    	
 
    	
Pro Rata Sharing
    	
 
    	
93
    
	
31.
    	
 
    	
Severability
    	
 
    	
94
    
	
32.
    	
 
    	
Counterparts
    	
 
    	
94
    
	
33.
    	
 
    	
Notices
    	
 
    	
94
    
	
34.
    	
 
    	
Language
    	
 
    	
97
    
	
35.
    	
 
    	
Jurisdiction
    	
 
    	
98
    
	
36.
    	
 
    	
Governing Law
    	
 
    	
99
    
	
37.
    	
 
    	
USA Patriot Act
    	
 
    	
99
    
	
38.
    	
 
    	
Waiver of trial by jury
    	
 
    	
99
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedule
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Lenders and Commitments
    	
 
    	
100
    
	
 
    	
 
    	
Part 1             Lenders and   Commitments
    	
 
    	
100
    
	
 
    	
 
    	
Part 2             Swingline Lenders   and Swingline Commitments
    	
 
    	
102
    
	
 
    	
 
    	
Part 3             Mandated Lead   Arrangers
    	
 
    	
103
    
	
 
    	
 
    	
Part 4             Co-Arrangers
    	
 
    	
104
    
	
2.
    	
 
    	
Conditions Precedent   Documents
    	
 
    	
105
    
	
 
    	
 
    	
Part 1             To be Delivered   before the First Advance —Signing Date
    	
 
    	
105
    
	
 
    	
 
    	
Part 2             To be Delivered   before the First Advance — Incremental Facility
    	
 
    	
106
    

 

 

	
 
    	
 
    	
Part 3             To be Delivered by   an Additional Guarantor
    	
 
    	
107
    
	
 
    	
 
    	
Part 4             To be Delivered by   an Additional Borrower
    	
 
    	
109
    
	
3.
    	
 
    	
Form of Request
    	
 
    	
110
    
	
4.
    	
 
    	
Forms of Accession   Documents
    	
 
    	
111
    
	
 
    	
 
    	
Part 1             Novation   Certificate
    	
 
    	
111
    
	
 
    	
 
    	
Part 2             Guarantor Accession   Agreement
    	
 
    	
113
    
	
 
    	
 
    	
Part 3             Borrower Accession   Agreement
    	
 
    	
114
    
	
 
    	
 
    	
Part 4             Lender Accession   Agreement
    	
 
    	
115
    
	
5.
    	
 
    	
Form of   Confidentiality Undertaking from New Lender
    	
 
    	
116
    
	
6.
    	
 
    	
Form of Additional   Lender’s Fee Letter
    	
 
    	
119
    
	
7.
    	
 
    	
Form of Increase   Confirmation
    	
 
    	
121
    
	
8.
    	
 
    	
Commitment Increase   Agreement
    	
 
    	
123
    

 

 

THIS AGREEMENT is dated 28 March 2014 as amended and restated on 11 January 2018 and made

 

BETWEEN:

 

(1)           VODAFONE GROUP PLC (registered number 1833679) as borrower (“Vodafone”);

 

(2)           THE FINANCIAL INSTITUTIONS listed in Part 3 of Schedule 1 as Mandated Lead Arrangers;

 

(3)           THE FINANCIAL INSTITUTIONS listed in Part 4 of Schedule 1 as Co-Arrangers;

 

(4)           THE FINANCIAL INSTITUTIONS listed in Part 1 of Schedule 1 as Original Lenders;

 

(5)           BARCLAYS BANK PLC as agent (in this capacity the “Agent”); and

 

(6)           BARCLAYS BANK PLC as euro swingline agent (in this capacity the “Euro Swingline Agent”).

 

IT IS AGREED as follows:

 

1.             INTERPRETATION

 

1.1          Definitions

 

In this Agreement:

 

“Acceding Lender” has the meaning given to that term in Clause 2.8(b)(i).

 

“Acceptable Bank” means a bank or financial institution which has a rating for its long-term unsecured and non-credit enhanced debt obligations of A- or higher by S&P or Fitch or A3 or higher by Moody’s or a comparable rating from an internationally recognised credit rating agency.

 

“Accession Document” means each Lender Accession Agreement and each Commitment Increase Agreement.

 

“Acquisition” means the acquisition of any interest in the share capital (or equivalent) or in the business or undertaking of any company or other person (including, without limitation, any partnership or joint venture).

 

“Additional Borrower” means any member of the Restricted Group which becomes an additional borrower pursuant to Clause 27.8 (Additional Borrowers) and which has not been released as a borrower in accordance with Clause 27.9 (Removal of Borrowers).

 

“Additional Guarantor” means any member of the Consolidated Group which at such time has become a Guarantor in accordance with Clause 27.7 (Additional Guarantors) and has not been released in accordance with Clause 15.9 (Removal of Guarantors).

 

“Additional Lender” means a financial institution or other entity which becomes an additional lender pursuant to Clause 2.8 (Incremental revolving credit facility) or a transferee, successor or permitted assignee of such financial institution or other entity which is for the time being participating in the Facility.

 

“Advance” means a Revolving Credit Advance or a Swingline Advance.

 

“Affected Lender” has the meaning given to it in Clause 2.2(c) (Overall facility limits).

 

1

 

“Affiliate” means, in relation to a person, a Subsidiary or a Holding Company of that person and any other Subsidiary of that Holding Company.

 

“Agent’s Spot Rate of Exchange” means the spot rate of exchange as determined by the Agent for the purchase of the relevant Optional Currency in the London foreign exchange market with euros at or about 11.00 a.m. on a particular day.

 

“Agreed Percentage” means in relation to a Lender and a Swingline Advance, the amount of its Revolving Credit Commitment expressed as a percentage of the Total Commitments.

 

“All Quoting Credit Rating Agencies” has the meaning given to it in Clause 9.7(a).

 

“Amendment and Restatement Agreement” means the amendment and restatement agreement relating to this Agreement dated 11 January 2018 and entered into between, among others, Vodafone and the Agent.

 

“Arranger” means a financial institution or other entity listed in Part 3 or Part 4 of Schedule 1.

 

“Asset Disposal” means any sale, transfer, grant, lease or other disposal of an asset (which for the avoidance of doubt does not include returns to shareholders) by any member of the Controlled Group to a person outside the Controlled Group made after the Effective Date.

 

“Assumed Increase Commitments” has the meaning given to that term in Clause 2.8(b)(i).

 

“Available Cash” means:

 

(a)           cash in hand and cash in deposits repayable on demand with any Qualifying Financial Institution;

 

(b)           the marked to market position of in the money derivative contracts; and

 

(c)           Liquid Resources,

 

to the extent denominated in any freely convertible and transferable currencies, beneficially owned and unencumbered by any Security Interests other than Permitted Security Interests.

 

“Available Commitment” means a Lender’s Commitment minus:

 

(a)           the amount of its participation in any outstanding Advances (other than, in relation to any proposed Advance, that Lender’s participation in any Advances that are due to be repaid or prepaid on or before the proposed Drawdown Date); and

 

(b)           in relation to any proposed Advance, the amount of its participation in any Advances that are due to be made on or before the proposed Drawdown Date.

 

“Availability Period” means the period from and including the Effective Date up to and including the date which is one Business Day before the Final Maturity Date.

 

“Back to Back Loan” means any Financial Indebtedness made available to a member of the Restricted Group to the extent that the economic exposure of the creditor in respect of that Financial Indebtedness (taking any related transactions together) is reduced by reason of that creditor:

 

(a)           having recourse directly or indirectly to a deposit of cash or cash equivalent investments beneficially owned by any member of the Restricted Group placed, as part of a related

 

2

 

transaction, with that creditor (or an Affiliate of that creditor) or a financial institution approved by that creditor; or

 

(b)           having granted a funded sub-participation or similar arrangement to a member of the Restricted Group.

 

“Base Currency” means euro.

 

“Basel III” means:

 

(a)           the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

 

(b)           the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement — Rules text” published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and

 

(c)           any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”.

 

“Basel III Cost” means any increased cost attributable to the introduction, implementation or application of or compliance with or change in Basel III or CRD IV or any other law or regulation which implements Basel III or CRD IV.

 

“Borrower” means Vodafone or an Additional Borrower.

 

“Borrower Accession Agreement” means an agreement substantially in the form of Part 3 of Schedule 4 or with such amendments as the Agent may approve (such approval not to be unreasonably withheld or delayed) or may reasonably require.

 

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

 

(a)           the interest (excluding the Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in an Advance or unpaid sum to the last day of the Term in respect of that Advance or unpaid sum, had the principal amount or unpaid sum received been paid on the last day of the Term for that Advance or unpaid sum;

 

exceeds:

 

(b)           the amount by which that Lender would be able to obtain by placing an amount equal to the principal amount or unpaid sum received by it on deposit with a leading bank for a period starting on the Business Day following receipt or recovery and ending on the last day of the Term for the relevant Advance or unpaid sum.

 

“Business Day” means a day (other than a Saturday or Sunday) on which banks and the interbank and foreign exchange markets are open for general business in London and:

 

(a)           if a payment is required in U.S. Dollars, New York; or

 

3

 

(b)           if a payment is required in euro, a TARGET Day; or

 

(c)           if a payment is required in any other currency, the principal financial centre of the country of that currency.

 

“Change of Control” has the meaning given to it in Clause 8.4 (Change of Control).

 

“Code” means the US Internal Revenue Code of 1986.

 

“Combined Commitments” means the aggregate of the Total Commitments under this Agreement and the Total Commitments under and as defined in the USD Facility.

 

“Combined Swingline Commitments” means the aggregate of the Swingline Total Commitments under this Agreement and the Swingline Total Commitments under and as defined in the USD Facility.

 

“Commitment” means a Revolving Credit Commitment or a Swingline Commitment, in each case to the extent not transferred, cancelled or reduced under or in accordance with this Agreement.

 

Commitment Increase Agreement means an agreement (in form and substance set out in Schedule 8 (Commitment Increase Agreement)) between Vodafone, the Agent and the relevant Existing Increasing Lender, effecting an increase in the Revolving Credit Commitments and/or Swingline Commitments pursuant to Clause 2.8 (Incremental revolving credit facility).

 

“Consolidated Group” means Vodafone (or, following a Hive Up, NewTopco), its IFRS Consolidated Subsidiaries and Joint Ventures.

 

“Contractual Currency” has the meaning given to it in Clause 24.1(a) (Currency indemnity).

 

“Controlled Group” means Vodafone (or, following a Hive Up, NewTopco) and its Controlled Subsidiaries.

 

“Controlled Subsidiaries” means, those Subsidiaries of Vodafone (or, following a Hive Up, NewTopco) in which Vodafone or NewTopco, as the case may be, controls more than 50% of such Subsidiaries voting rights and has recourse to the cash flows of the Subsidiary. Until the first certificate is given by Vodafone to the Agent in accordance with Clause 17.2(a)(iii) (Financial information) (in respect of the financial year ended 31 March 2017), the Controlled Subsidiaries include, without limitation, the following operating Subsidiaries: Vodafone Romania S.A.; Vodafone Czech Republic A.S.; Vodafone Albania Sh.A; Vodafone GmbH; Vodafone Egypt Telecommunications S.A.E; Vodafone España S.A.; Vodafone Hungary Mobile Telecommunications Ltd; Vodafone Ireland Limited; Vodafone Limited; Vodafone New Zealand Limited; Vodafone Omnitel N.V.; Vodafone-Panafon Hellenic Telecommunications Company S.A.; Vodafone Telekomunikasyon A.S., Vodafone Portugal-Comunicações Pessoais S.A., Vodacom Group Limited; Ghana Telecommunication Company Limited; and Cable & Wireless Worldwide Limited.

 

“Controlled USA Group” means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with any U.S. Obligor, are treated as a single employer under Section 414(b) or (c) of the Code.

 

“Core Jurisdictions” are member states of the European Union as at the Effective Date (being Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK), Japan, United States,

 

4

 

Australia, New Zealand, Canada and Switzerland and any other states which become members of the European Union after the Effective Date provided that Vodafone has notified the Agent in writing of its agreement to their inclusion in this definition of Core Jurisdictions.

 

“CRD IV” means (A) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU No 648/2012) and (B) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

 

“CTA” means the Corporation Tax Act 2009.

 

“Credit Rating Agency” has the meaning given to it in Clause 9.7 (Margin).

 

“Default” means (a) an Event of Default or (b) an event which, with the expiry of any grace period or giving of any notice specified in Clause 19.2 (Non-payment), 19.3 (Breach of other obligations), 19.5 (Cross default), 19.6 (Winding up), 19.8 (Enforcement proceedings) or 19.10 (Similar proceedings) would constitute an Event of Default.

 

“Default Margin” has the meaning given to it in Clause 9.5(a) (Default Interest).

 

“Default Rate” has the meaning given to it in Clause 9.5(a) (Default Interest).

 

“Defaulting Lender” means any Lender:

 

(a)           which has failed to make its participation in an Advance available or has notified the Agent that it will not make its participation in an Advance available by the Drawdown Date of that Advance in accordance with Clause 5.6 (Payment of proceeds);

 

(b)           which has otherwise rescinded or repudiated a Finance Document; or

 

(c)           with respect to which an Insolvency Event has occurred and is continuing, unless, in the case of paragraph (a) above:

 

(i)            its failure to pay is caused by:

 

(A)          administrative or technical error and payment is made within three Business Days of its due date; or

 

(B)          a Disruption Event and payment is made within eight Business Days of its due date; or

 

(ii)           the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.

 

“Designated Term” has the meaning given to it in Clause 9.5(a)(ii) (Default Interest).

 

“Discharged Obligations” has the meaning given to it in Clause 27.4(c)(i) (Procedure for novations).

 

“Discharged Rights” has the meaning given to it in Clause 27.4(c)(iii) (Procedure for novations).

 

5

 

“Disruption Event” means either or both of:

 

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

 

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

 

(i)            from performing its payment obligations under the Finance Documents; or

 

(ii)           from communicating with other Parties in accordance with the terms of the Finance Documents,

 

(and which (in either such case)) is not caused by, and is beyond the control of, the Party whose operations are disrupted.

 

“Drawdown Date” means the date for the making of an Advance.

 

“Effective Date” has the meaning given to it in the Amendment and Restatement Agreement.

 

“EONIA” means:

 

(a)           in relation to any day which is a TARGET Day:

 

(i)            the EONIA Screen Rate for that day; or

 

(ii)           as otherwise determined pursuant to Clause 9.4 (Unavailability of EONIA Screen Rate); and

 

(b)           in relation to any day which is not a TARGET Day, the rate (determined in accordance with paragraph (a) above) for the immediately preceding TARGET Day.

 

“EONIA Screen Rate” means the euro overnight index average administered by the European Money Markets Institute (or any other person which takes over the administration of the rate) displayed on page EONIA of the Thomson Reuters screen or any replacement Thomson Reuters screen (or any replacement Thomson Reuters page which displays the rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Euro Swingline Agent may specify another page or service displaying the relevant rate after consultation with Vodafone.

 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended (or any successor legislation thereto), and any rule or regulation issued thereunder from time to time in effect.

 

“EURIBOR” means in relation to any Advance or unpaid sum in euro:

 

(a)           the applicable Screen Rate as of 11.00 a.m. (Brussels time) on the Rate Fixing Day for euro and for a period equal in length to the Required Period; or

 

(b)           as otherwise determined pursuant to Clause 9.3 (Unavailability of Screen Rate).

 

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“Event of Default” means an event specified as such in Clause 19 (Events of Default).

 

“Existing Increasing Lender” has the meaning given to that term in Clause 2.8(b)(i).

 

“Existing Lender” has the meaning given to it in Clause 27.2(a) (Transfers by Lenders).

 

“Existing Parties” has the meaning given to it in Clause 27.4(c)(i) (Procedure for novations).

 

“Facility” means any of the facilities to draw Revolving Credit Advances, or Swingline Advances referred to in Clause 2.1 (Facilities).

 

“Facility Office” means the office(s) notified by a Lender to the Agent:

 

(a)           on or before the date it becomes a Lender; or

 

(b)           by not less than five Business Days’ notice,

 

as the office(s) through which it will perform all or any of its obligations under this Agreement.

 

“Fallback Interest Period” means a period of 1 week.

 

“FATCA” means:

 

(a)           sections 1471 to 1474 of the Code, any associated regulations and other official guidance;

 

(b)           any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of paragraph (a) above; and

 

(c)           any agreement pursuant to the implementation of paragraphs (a) or (b) above with the United States Internal Revenue Service, the government of the United States of America or any governmental or taxation authority in any other jurisdiction.

 

“FATCA Application Date” means:

 

(a)           in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the United States of America), 1 July 2014;

 

(b)           in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from sources within the United States of America), 1 January 2019; or

 

(c)           in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2019,

 

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the Effective Date.

 

“FATCA Deduction” means a deduction or withholding from a payment under a Finance Document required by FATCA.

 

“FATCA Exempt Party” means a Party that is entitled to receive payments free from any FATCA Deduction.

 

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“Fee Letters” means each letter:

 

(a)           dated on or about the Signing Date between the Agent and Vodafone;

 

(b)                                 dated on or about the Signing Date between the Original Lenders as at the Signing Date and Vodafone;

 

(c)                                  dated on or about the date of the Amendment and Restatement Agreement between the Agent and Vodafone;

 

(d)                                 dated on or about the date of the Amendment and Restatement Agreement between the Original Lenders as at the Effective Date and Vodafone;

 

(e)                                  dated on or about the date of any Increase Effective Date between any Incremental Facility Increase Lender and Vodafone (as applicable); and

 

(f)                                   (if applicable) entered into between an Additional Lender and Vodafone substantially in the form of Schedule 6,

 

in each case setting out the amount of various fees referred to in Clause 21.3 (Agent’s fee) or 21.4 (Front-end fees).

 

“Final Maturity Date” means, subject to Clause 6 (Extension Options), the date which is five years after the Effective Date or, if that day is not a Business Day, the preceding Business Day.

 

“Finance Document” means this Agreement, the Amendment and Restatement Agreement, each Fee Letter, Novation Certificate, Borrower Accession Agreement, Guarantor Accession Agreement, Commitment Increase Agreement and Increase Confirmation and any other document agreed in writing as such by the Agent and Vodafone.

 

“Finance Party” means an Arranger, a Lender, the Agent or the Euro Swingline Agent.

 

“Financial Indebtedness” means any indebtedness in respect of:

 

(a)                                 moneys borrowed or raised by way of loan or redeemable preference shares or in the form of any debenture, bond, note, loan stock, commercial paper or similar instrument;

 

(b)                                 any acceptance credit, bill-discounting, note purchase or documentary credit facility;

 

(c)                                  any finance lease;

 

(d)                                 any receivables purchase, factoring or discounting arrangement under which there is recourse in whole or in part to any member of the relevant group;

 

(e)                                  any other transaction having the commercial effect of a borrowing; and

 

(f)                                   any guarantees or other legally binding assurance against financial loss in respect of the indebtedness of any person arising under an obligation falling within (a) to (e) above (but, for the avoidance of doubt, excluding any guarantees in respect of indebtedness falling within (i) to (v) below),

 

but without double counting and excluding (i) preference shares which are not accounted for as indebtedness under IFRS GAAP, (ii) any convertible or exchangeable debt which must or, at the option of the issuer, may be converted or exchanged without condition (other than the availability of sufficient authorised share capital of the issuer), prior to or upon the date any amount of principal

 

8

 

would otherwise fall due in respect of that debt, into equity share capital or preference shares, which in each case are not redeemable on or before the Final Maturity Date, (iii) deferred consideration in respect of the cost of Acquisitions, (iv) obligations of any member of the relevant group arising under any form of exchangeable, convertible, option or other similar instrument issued by that member of the relevant group in connection with a transaction the commercial effect of which is to effect the disposal by that member of the relevant group of shares or partnership or other ownership interests in any other person or entity (whether or not having a separate legal identity), provided that any such instrument may not, on or prior to the Final Maturity Date, be converted (whether by acceleration, maturity or otherwise) into cash or any other instrument constituting or evidencing Financial Indebtedness and (v) for the avoidance of doubt, derivatives primarily entered into to manage currency, credit or interest rate risks or to assist in purchasing or selling shares.

 

“Fitch” means Fitch Investors Services Inc.

 

“Funding Rate” means any rate notified to the Agent by a Lender pursuant to paragraph (b)(iii) of Clause 12.2 (Alternative rates).

 

“Guarantor” means each of:

 

(a)           Vodafone; and

 

(b)           each Additional Guarantor.

 

“Guarantor Accession Agreement” means a deed substantially in the form of Part 2 of Schedule 4 or with such amendments as the Agent may approve (such approval not to be unreasonably withheld or delayed) or may reasonably require.

 

“Historic Screen Rate” means, in relation to LIBOR or EURIBOR for any Advance or unpaid sum, the most recent applicable Screen Rate for the currency of that Advance or unpaid sum and (in each case) for a period equal in length to the Required Period of that Advance or unpaid sum which is as of a day which is no more than 5 days before the Rate Fixing Day.

 

“Hive Up” means a reorganisation by way of a scheme of arrangement (other than in an insolvency) or otherwise under which Vodafone becomes a Subsidiary of NewTopco, NewTopco controls (directly or indirectly) all of the voting rights in Vodafone (other than any voting rights in Vodafone in respect of the 50,000 7 per cent. fixed rate shares issued in 1999 or any other voting rights in Vodafone held by holders of a class of capital issued by Vodafone, where such voting rights relate only to any variation in the rights attaching to that class of capital issued by Vodafone) and NewTopco becomes the listed ultimate Holding Company of the Consolidated Group.

 

“Holding Company” means in relation to a person, an entity of which that person is a Subsidiary.

 

“HMRC” means HM Revenue & Customs.

 

“IFRS Consolidated Subsidiaries” means those Subsidiaries of Vodafone (or, following a Hive Up, NewTopco) which would be required to be fully consolidated (which excludes proportionate consolidation) in the consolidated accounts of Vodafone (or, following a Hive Up, NewTopco) in accordance with IFRS GAAP.

 

“IFRS GAAP” means the generally accepted accounting principles applied in the preparation of the IFRS consolidated audited accounts of Vodafone for the year ended 31 March 2017 or later audited accounts, if notified by Vodafone in writing to the Agent within three months (or such longer period as may be agreed by the Agent) of publication of such audited accounts.

 

9

 

“Impaired Agent” means the Agent or the Euro Swingline Agent at any time when:

 

(a)                                 it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment;

 

(b)                                 the Agent or the Euro Swingline Agent otherwise rescinds or repudiates a Finance Document;

 

(c)                                  (if the Agent or the Euro Swingline Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of Defaulting Lender; or

 

(d)                                 an Insolvency Event has occurred and is continuing with respect to the Agent or the Euro Swingline Agent;

 

Unless, in the case of paragraph (a) above:

 

(i)            its failure to pay is caused by:

 

(A)          administrative or technical error and payment is made within three Business Days of its due date; or

 

(B)          a Disruption Event and payment is made within eight Business Days of its due date; or

 

(ii)                                  the Agent or the Euro Swingline Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

 

“Increase Confirmation” means a confirmation substantially in the form set out in Schedule 7 (Form of Increase Confirmation).

 

“Increase Effective Date” has the meaning given to that term in Clause 2.8(h).

 

“Increase Lender” has the meaning given to that term in Clause 2.3 (Increase).

 

“Incremental Facility Increase Lender” has the meaning given to that tern in Clause 2.8(b)(i).

 

“increased cost” has the meaning given to that term in Clause 13.1 (Increased costs)

 

“Insolvency Event” in relation to a Finance Party means that the Finance Party:

 

(a)                                 is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

(b)                                 becomes insolvent or is unable to pay its debts or fails or admits in writing its inability to pay its debts as they become due in each case under the laws of any relevant jurisdiction applicable to that Finance Party;

 

(c)                                  makes a general assignment, arrangement or composition with or for the benefit of its creditors;

 

(d)                                 has made against it a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or an order is made for its winding-up or liquidation;

 

(e)                                  has an order made against it for a bank insolvency pursuant to Part 2 of the Banking Act 2009 or a bank administration pursuant to Part 3 of the Banking Act 2009;

 

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(f)                                   has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

 

(g)                                  seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets other than by way of Undisclosed Administration;

 

(h)                                 has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; or

 

(i)                                     causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above.

 

“Intermediate Holding Company” means in relation to Vodafone, an entity (other than NewTopco) which is a Subsidiary of NewTopco and of which Vodafone is a Subsidiary.

 

“Interpolated Historic Screen Rate” means, in relation to LIBOR or EURIBOR for any Advance or unpaid sum, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

(a)                                 the most recent applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Required Period of that Advance or unpaid sum; and

 

(b)                                 the most recent applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Required Period of that Advance or unpaid sum,

 

each as of a day which is no more than 5 days before the Rate Fixing Day and for the currency of that Advance or unpaid sum.

 

“Interpolated Screen Rate” means, in relation to LIBOR or EURIBOR for any Advance or unpaid sum, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

(a)                                 the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Required Period of that Advance or unpaid sum; and

 

(b)                                 the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Required Period of that Advance or unpaid sum,

 

each as of 11.00 a.m. (London time) in the case of LIBOR and 11.00 a.m. (Brussels time) in the case of EURIBOR on the Rate Fixing Day for the currency of that Advance.

 

“ITA 2007” means the Income Tax Act 2007.

 

“Joint Venture” means at any time an entity (which is not an IFRS Consolidated Subsidiary) in which any member of the Consolidated Group holds a long term interest and shares control under a contractual arrangement where each venturer has a veto over policy decisions and which is, or will be, accounted for on a proportionate basis in the consolidated accounts of Vodafone (or, following a Hive Up, NewTopco) for that time, and shall exclude any entity which is accounted for on an equity

 

11

 

basis in those accounts (in each case, in accordance with the generally applicable accounting principles applied to those accounts).

 

“Lender” means each Original Lender, each Additional Lender (if any) and each Increase Lender (if any).

 

“Lender Accession Agreement” means an agreement substantially in the same form of Part 4 of Schedule 4 or with such amendments as the Agent may approve or may reasonably require.

 

“LIBOR” means in relation to any Advance or unpaid sum in a currency other than euro:

 

(a)                                 the applicable Screen Rate as of 11.00 a.m. (London time) on the Rate Fixing Day for the currency of that Advance or unpaid sum and (in each case) for a period equal to the Required Period; or

 

(b)                                 as otherwise determined pursuant to Clause 9.3 (Unavailability of Screen Rate).

 

“Liquid Resources” means a current asset investment held as a readily disposable store of value which can be disposed of without curtailing or disrupting the business of the disposer and which is either:

 

(a)           readily convertible into a known amount of cash at or close to its carrying value; or

 

(b)           traded in an active market.

 

“Long Term Credit Rating Assigned to Vodafone” has the meaning given to it in Clause 9.7(d) (Margin).

 

“Majority Lenders” means, at any time:

 

(a)                                 Lenders whose Revolving Credit Commitments aggregate more than 60 per cent. of the Total Commitments; or

 

(b)                                 if the Total Commitments have been reduced to zero, Lenders whose Revolving Credit Commitments aggregated more than 60 per cent. of the Total Commitments immediately before the reduction.

 

“Margin” in relation to an Advance at any time, means the percentage rate per annum determined to be the Margin applicable to that Advance in accordance with Clause 9.7 (Margin).

 

“Maturity Date” means the last day of the Term of:

 

(a)           a Revolving Credit Advance; or

 

(b)           a Swingline Advance.

 

“Moody’s” means Moody’s Investors’ Service, Inc.

 

“Multi-employer Plan” means a “multi-employer plan” as defined in Section 4001(a)(3) of ERISA to which any U.S. Obligor or any member of the Controlled USA Group has an obligation to contribute.

 

“New Commitments” means commitments which have refinanced Permitted Indebtedness (or New Commitments) in whole or in part, provided that the aggregate principal amount of the New Commitments for such member of the Restricted Group is not at any time more than 120% of the

 

12

 

aggregate principal amount of such Permitted Indebtedness (or New Commitments) for such member of the Restricted Group (measured in the same currency) immediately prior to such refinancing, and provided further that to the extent that any New Commitment is to be guaranteed by an Obligor, the obligors under the New Commitments will have validly and legally acceded as Additional Guarantors in accordance with Clauses 27.7(a) and 27.7(b) (Additional Guarantors)) prior to any Obligor providing a guarantee of the New Commitments.

 

“NewTopco” means a company used for the purposes of a Hive Up.

 

“New Lender” has the meaning given to it in Clause 27.2(a) (Transfers by Lenders).

 

“Novation Certificate” has the meaning given to it in Clause 27.4(a)(i) (Procedure for novations).

 

“Obligor” means each Borrower and each Guarantor.

 

“Operating Cash Flow” means, without double counting, total operating profit or loss for continuing operations before taxation, interest and after (i) adding depreciation, (ii) adding amortisation, (iii) deducting the profit or adding the loss on exceptional items which are included in the foregoing, (iv) deducting any gain or adding any loss on disposal of tangible or intangible fixed assets, (v) adjusting for movements in working capital (being movements in stock, creditors, provisions and debtors) and (vi) excluding exceptional items.

 

“Optional Currency” means, in relation to any Advance or proposed Advance, a currency (other than the Base Currency) which complies with the conditions set out in Clause 4.3 (Conditions relating to Optional Currencies).

 

“Original Euro Amount” means:

 

(a)                                 the principal amount of an Advance denominated in euro; or

 

(b)                                 the principal amount of an Advance denominated in any other currency, translated into euro on the basis of the Agent’s Spot Rate of Exchange on the date of receipt by the Agent of the Request for that Advance.

 

“Original Lender” means a financial institution or other entity listed in Part 1 or Part 2 of Schedule 1 or a transferee, successor or permitted assignee of such financial institution or other entity which is for the time being participating in the Facility.

 

“Overdue Amount” has the meaning given to it in Clause 9.5(a) (Default interest).

 

“Overnight LIBOR” means, in relation to any day:

 

(a)           the applicable Screen Rate as of 11.00 a.m. on that day; or

 

(b)           as otherwise determined in accordance with Clause 9.3 (Unavailability of screen rate).

 

“Participating Member State” means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

 

“Party” means a party to this Agreement.

 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA, or any successor.

 

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“Permitted Security Interest” means:

 

(a)                                 any Security Interest arising out of retention of title provisions or created or subsisting over documents of title, insurance policies (including any export credit agencies’ agreements) and sale contracts in relation to commercial goods in each case created or made in the ordinary course of business to secure the purchase price of such goods or loans to finance such purchase price; or

 

(b)                                 any Security Interest over any assets acquired by a member of the Restricted Group after the Effective Date (and/or over the assets of any person that becomes a member of the Restricted Group after the Effective Date) provided that:

 

(i)                                     any such Security Interest is either (i) in existence before such acquisition or before such person becomes a member of the Restricted Group and is not created in contemplation of such acquisition or such person becoming a member of the Restricted Group (the “Initial Security”) or (ii) created following such acquisition or following such person becoming a member of the Restricted Group in connection with a refinancing of the indebtedness secured by the Initial Security solely in accordance with the terms of Clause 17.8(a) (Priority Borrowing) and such Security Interest is in respect of the same assets (or, in the case, of a Security Interest created in respect of a changing class of assets, the same class of assets) as were subject to the Initial Security; and

 

(ii)                                  the indebtedness secured by such Security Interest is not prohibited by Clause 17.8  (Priority Borrowing) and, to the extent that at any time the aggregate principal amount secured by such Security Interest thereafter exceeds (measured in the same currency) the higher of (i) the aggregate of the amounts drawn and available to be drawn (assuming all drawdown conditions will be met) under the relevant commitment existing at the time of such acquisition or such person becoming a member of the Restricted Group or, if applicable, (ii) the relevant amount otherwise permitted for that member of the Restricted Group pursuant to Clause 17.8(a) (Priority Borrowing) such Security Interest shall not fall within this paragraph (b);

 

for the purposes of this paragraph (b) Restricted Group shall not include any companies which have become members of the Restricted Group due to the expansion of the definition of Core Jurisdiction to include any other states which become members of the European Union after the Effective Date; or

 

(c)                                  any Security Interest created for the purpose of securing obligations of Vodafone (or, following a Hive Up, NewTopco) or any member of the Restricted Group under any agreement (including, without limitation, any agreement under Section 106 of the Town and Country Planning Act 1990 or Section 111 of the Local Government Act 1972) entered into with a local or other public authority and related to the development or maintenance of property owned by Vodafone (or, following a Hive Up, NewTopco) or any member of the Restricted Group; or

 

(d)                                 any Security Interest created on or subsisting over any asset held in Clearstream Banking, société anonyme or Euroclear Bank S.A./N.V. as operator of the Euroclear System, or any other securities depository or any clearing house pursuant to the standard terms and procedures of the relevant clearing house applicable in the normal course of trading; or

 

(e)                                  any Security Interest which arises in connection with any cash management, set-off or netting arrangements made between banks or financial institutions and any member(s) of the Restricted Group in the ordinary course of business; or

 

14

 

(f)                                   any Security Interest created in favour of a plaintiff or defendant in any action of the court or tribunal before whom such action is brought as pre-judgment security for costs or expenses where any member of the Restricted Group is prosecuting or defending such action in the bona fide interest of the Controlled Group; or

 

(g)                                  any Security Interest created pursuant to any order of attachment, distraint, garnishee order, arrestment, adjudication or injunction or interdict restraining disposal of assets or similar legal process arising in connection with pre-judgment court proceedings; or

 

(h)                                 any Security Interest which arises by operation of law in the ordinary course of trading and securing an amount not more than 45 days overdue or which is being contested in good faith on the basis of favourable legal advice; or

 

(i)                                     any Security Interest over shares in entities which are not members of the Restricted Group which do not secure Financial Indebtedness of the Restricted Group (or over shares and/or other ownership interests in and/or loans to entities which are Project Finance Subsidiaries to secure Project Finance Indebtedness); or

 

(j)                                    to the extent they constitute Security Interests (or to the extent that the relevant transaction includes the creation of any Security Interest over the assets which are the subject of the finance lease), finance leases in respect of existing or future assets; or

 

(k)                                 any Security Interest comprising a right of set-off which arises by agreement between parties providing mutual rights of set-off or operation of law or by agreement having substantially the same effect; or

 

(l)                                     any Security Interest for taxes, assessments or charges not yet due or that are being contested in good faith by appropriate proceedings and (unless the amount thereof is not material to the Consolidated Group’s financial condition) for which adequate reserves are being maintained (in accordance with generally accepted accounting principles); or

 

(m)                             deposits or pledges to secure obligations under workers’ compensation, social security or similar laws, or under unemployment insurance; or

 

(n)           any Security Interest created with the prior written consent of the Majority Lenders; or

 

(o)                                 any Security Interest over deposits of cash or cash equivalent investments securing (directly or indirectly) Financial Indebtedness under (i) finance or structured tax lease arrangements as described in paragraph (b) of Clause 17.8 (Priority borrowing) or (ii) Back to Back Loans; or

 

(p)                                 any Security Interest securing Project Finance Indebtedness over the assets (or the income, cash flow or other proceeds deriving from the assets) which are the subject of that Project Finance Indebtedness; or

 

(q)                                 any Security Interest (a “Substitute Security Interest”) which replaces any other Security Interest permitted under paragraphs (a) to (p) above inclusive and which secures an amount not exceeding the principal amount secured by such permitted Security Interest (or, in the case of paragraph (b) above, the amount available to be drawn, assuming all drawdown conditions will be met) at the time it is replaced together with any interest accruing on such amounts from the date such Substitute Security Interest is created or arises and any related fees or expenses provided that the existing Security Interest to be replaced is released and all amounts secured thereby are paid or otherwise discharged in full at or prior to the time of such Substitute Security Interest being created or arising; or

 

15

 

(r)                                    any Security Interest over the shares or other interests as described in paragraph (iv) of the last paragraph of the definition of Financial Indebtedness securing indebtedness of a kind referred to in that paragraph; or

 

(s)                                   any Security Interest created (i) between Obligors (including by an Obligor to a member of the Restricted Group which concurrently becomes an Obligor) or (ii) by a member of the Restricted Group which is not an Obligor in favour of an Obligor or to another member of the Restricted Group; or

 

(t)                                    any Security Interest over Available Cash created in the ordinary course of business to secure obligations, liabilities or performance criteria in relation to any mobile telecommunications licence where such Security Interest is required to be in compliance with the requirements of the relevant telecommunications regulator or an associated governmental or regulatory body; or

 

(u)                                 any Security Interest over Available Cash created to defease (directly or indirectly) Financial Indebtedness in the form of debentures, bonds, notes, loan stock, or other similar instruments issued by a Controlled Subsidiary where (A) such Financial Indebtedness was either in existence at the Signing Date or ( B) if the Subsidiary became a Controlled Subsidiary after the Signing Date such Financial Indebtedness existed at the time that the Controlled Subsidiary became a part of the Controlled Group and was not created in contemplation of that Controlled Subsidiary becoming part of the Controlled Group; or

 

(v)                                 any Security Interest over loan notes or other securities issued by Verizon Communications Inc. or any of its affiliates in connection with the acquisition of Vodafone’s interest in Verizon Wireless (the “Verizon Notes”), provided that:

 

(i)                                     the maximum aggregate principal amount of Verizon Notes which may be subject to Security Interests pursuant to this paragraph (v) is U.S.$5,000,000,000;

 

(ii)                                  the Security Interest is removed or discharged within 30 months from the date of issuance of the Verizon Notes; and

 

(iii)                               the Security Interest was created for the purpose of, or in contemplation of, an issuance by Vodafone of loan notes or other securities which are secured by that Security Interest (the “Secured Notes”), provided that any holders of the Secured Notes shall not have any recourse to Vodafone in respect of any amounts outstanding (other than interest payable) under or in connection with the Secured Notes; or

 

(w)                               any other Security Interest (in addition to those listed in (a) to (v) above) where the aggregate principal amount secured by all such Security Interests does not exceed €3,000,000,000 or its equivalent.

 

“Plan” means an “employee benefit plan” as defined in Section 3(3) of ERISA.

 

“Principal Subsidiary” means, from the date that each notice is given by Vodafone to the Agent pursuant to Clause 17.2(a)(iii) (Financial Information) or, as the case may be, 17.2(a)(iv) (Financial Information) the four Controlled Subsidiaries which are members of the Restricted Group whose revenues are primarily generated by operations licensed by telecommunications authorities in Core Jurisdictions (excluding for this purpose any Subsidiaries whose principal activity is to act as a Holding Company of other Subsidiaries) that had the largest, if positive or smallest if negative Operating Cash Flow in the previous financial year of Vodafone or, following the Reorganisation Date, NewTopco.

 

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Until the first notice is given by Vodafone to the Agent (in respect of the financial year ended 31 March 2017), the Principal Subsidiaries are Vodafone Limited, Vodafone GmbH, Vodafone Omnitel N.V. and Vodafone Libertel B.V. being Vodafone’s principal subsidiaries operating in UK, Germany, Italy and the Netherlands, respectively.

 

For the purposes of this definition, until such new notice is given by Vodafone to the Agent pursuant to Clause 17.2(a)(iii) (Financial Information) or, as the case may be, Clause 17.2(a)(iv) (Financial Information), if any Principal Subsidiary sells, transfers, merges into or with or otherwise disposes of the majority of its undertakings or assets whether by a single transaction or a number of related transactions (unless such Principal Subsidiary is the surviving entity following such merger) (the “Seller”) to any member of the Restricted Group (the “Purchaser”), then from the date of the relevant sale, transfer, merger or disposal the Purchaser shall be deemed to become a Principal Subsidiary and the Seller shall no longer be deemed to be a Principal Subsidiary.

 

On the date of each notice given by Vodafone (or as the case may be, NewTopco) to the Agent pursuant to Clause 17.2(a)(iii) (Financial Information) or, as the case may be, Clause 17.2(a)(iv) (Financial Information), any Subsidiary which is identified as a Principal Subsidiary in the relevant notice, which was not identified as such in the immediately preceding notice, shall be deemed to immediately replace any Subsidiary which was a Principal Subsidiary immediately prior to the delivery of the notice and which is not named in such notice.

 

“Project Finance Indebtedness” means any Financial Indebtedness which finances or otherwise relates to the acquisition, development, ownership and/or operation of an asset or combination of assets whether directly or indirectly, where the Financial Indebtedness is incurred pursuant to facilities available prior to the date the relevant entity becomes a member of the Controlled Group (and not created in contemplation of the acquisition):

 

(a)           which is incurred by a Project Finance Subsidiary; or

 

(b)                                 in respect of which the person or persons to whom such borrowing is or may be owed by the relevant debtor (whether or not a member of the Controlled Group) has or have no recourse whatsoever to any member of the Controlled Group (other than to a Project Finance Subsidiary) for any payment or repayment in respect thereof other than:

 

(i)                                     recourse to such debtor for amounts limited to the cash flow or net cash flow (other than historic cash flow or historic net cash flow) from such asset or assets; and/or

 

(ii)                                  recourse to such debtor for the purpose only of enabling amounts to be claimed in respect of such Financial Indebtedness in an enforcement of any Security Interest given by such debtor over such asset or assets or the income, cash flow or other proceeds deriving from the asset (or given by any shareholder or the like in the debtor over its shares and/or other ownership interest in and/or loans to the debtor) to secure such Financial Indebtedness or any recourse referred to in paragraph (iii) below, provided that:

 

(A)                               the extent of such recourse to such debtor is limited solely to the amount of any recoveries made on any such enforcement; and

 

(B)                               such person or persons are not entitled, by virtue of any right or claim arising out of or in connection with such Financial Indebtedness, to commence proceedings for the winding up or dissolution of the debtor or to appoint or procure the appointment of any receiver, trustee or similar person or officer in respect of the debtor or any of its assets (save only for the assets the subject of that Security Interest); and/or

 

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(iii)          recourse:

 

(A)                               to such debtor generally, or directly or indirectly to a member of the Controlled Group, under any form of assurance, undertaking or support which recourse is limited to a claim for damages (other than liquidated damages and damages required to be calculated in a specific way) for breach of an obligation (not being a payment obligation or any obligation to procure payment by another or an indemnity in respect thereof or any obligation to comply or procure compliance by another with any financial ratios or other tests of financial condition) by the person against whom such recourse is available; and/or

 

(B)                               to shares and/or other ownership interest in and/or loans to and/or the assets of such debtor and/or any Project Finance Subsidiary owned by a member of the Controlled Group; or

 

(c)           which the Majority Lenders have agreed in writing to treat as Project Finance Indebtedness.

 

“Project Finance Subsidiary” means any member of the Controlled Group:

 

(a)                                 whose principal assets and business are constituted by the ownership, acquisition, development and/or operation of any asset or combination of assets whether directly or indirectly; and

 

(b)                                 none of whose Financial Indebtedness in respect of the financing of the ownership, acquisition, development and/or operation of any such asset benefits from any recourse whatsoever (including, without limitation, any obligation to subscribe for equity or provide loans) to any member of the Controlled Group (other than such person or another Project Finance Subsidiary) in respect of any payment or repayment in respect thereof, except as expressly referred to in paragraph (b)(iii) of the definition of “Project Finance Indebtedness”; and

 

(c)           which has been designated as such by Vodafone by written notice to the Agent.

 

“Qualifying Financial Institution” means any bank or financial institution that as part of its business generally receives deposits or other repayable funds and grants credits for its own account.

 

“Qualifying Lender” means a Lender which is beneficially entitled to interest payable to that Lender in respect of an Advance and is:

 

(a)           a Lender;

 

(i)                                     which is a bank (as defined for the purpose of Section 879 of the ITA 2007) making an Advance under this Agreement; or

 

(ii)                                  in respect of an Advance made under this Agreement by a person that was a bank (as defined for the purpose of Section 879 of the ITA 2007) at the time that that Advance was made,

 

and which is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that Advance at the time payments are made (or in the case of sub-paragraph (i) above would be within such charge as respects such payments apart from section 18A of the CTA); or

 

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(b)           a Treaty Lender.

 

“Rate Fixing Day” means:

 

(a)           the Drawdown Date for an Advance denominated in Sterling; or

 

(b)                                 the second TARGET Day before the Drawdown Date for an Advance denominated in euro; or

 

(c)                                  the second Business Day before the Drawdown Date for an Advance denominated in any other currency,

 

or such other day as the Agent, after consultation with Vodafone and the Lenders, may designate as market practice in the Relevant Interbank Market for leading banks to give quotations in the relevant currency for delivery on the relevant Drawdown Date.

 

“Recovering Finance Party” has the meaning given to it in Clause 30.1 (Redistribution).

 

“Recovery” has the meaning given to it in Clause 30.1 (Redistribution).

 

“Redistribution” has the meaning given to it in Clause 30.1(c) (Redistribution).

 

“Reference Bond” has the meaning given to it in Clause 9.7(d) (Margin).

 

“Relevant Interbank Market” means, in relation to euro, the European interbank market and, in relation to any other currency, the London interbank market.

 

“Relevant Tax” means any tax imposed or levied by or in (or by any political sub-division or taxing authority of any of the following):

 

(a)           the UK;

 

(b)           the United States; or

 

(c)                                  any other jurisdiction in or through which any payment under the Finance Documents is made.

 

“Reportable Event” means a reportable event as defined in Section 4043 of ERISA and the regulations issued under such section with respect to a Plan, excluding, however, such events as to which the PBGC by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within 30 days of the occurrence of such event, provided, however, that a failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA shall be a Reportable Event regardless of the issuance of any such waiver of the notice requirement in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

 

“Reorganisation Date” means the date NewTopco or any other Intermediate Holding Company acquires any shares or assets (other than the shares in Vodafone acquired pursuant to the Hive Up) in circumstances where the aggregate market value of the assets of Vodafone (as determined by Vodafone (acting reasonably)) immediately following the acquisition is an amount which represents 95 per cent. or less of the aggregate market value of the assets of NewTopco (as determined by Vodafone (acting reasonably)) at that time.

 

“Request” means a request made by a Borrower to utilise a Facility, substantially in the form of Schedule 3 (or in such other form as may be agreed by the Agent and Vodafone).

 

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“Requested Amount” means the amount requested in a Request.

 

“Required Period” means the Term of a Revolving Credit Advance, or the period in respect of which EURIBOR or (as the case may be) LIBOR falls to be determined in relation to any unpaid sum.

 

“Restricted Group” means Vodafone, NewTopco (following the Reorganisation Date) and any Controlled Subsidiary (other than a Project Finance Subsidiary) of Vodafone or, following the Reorganisation Date, NewTopco:

 

(a)           whose principal operations or assets are located in a Core Jurisdiction; and/or

 

(b)                                 whose revenues are primarily generated by operations licensed by telecommunications authorities in Core Jurisdictions,

 

but excludes any Controlled Subsidiary whose principal business is satellite telecommunications.

 

“Revolving Credit Advance” means an advance (other than a Swingline Advance) made to a Borrower by the Revolving Credit Lenders under the Revolving Credit Facility.

 

“Revolving Credit Commitment” means:

 

(a)                                 in respect of an Original Lender, the amount in euro set opposite the name of that Lender in Part 1 of Schedule 1 (Lenders and Commitments) or assumed by it in accordance with Clause 2.3 (Increase) or Clause 2.8 (Incremental revolving credit facility); and

 

(b)                                 in respect of an Additional Lender, the amount in euro set out as a Revolving Credit Commitment in the relevant Lender Accession Agreement or assumed by it in accordance with Clause 2.3 (Increase) or Clause 2.8 (Incremental revolving credit facility),

 

in each case to the extent not transferred, cancelled or reduced under or in accordance with this Agreement.

 

“Revolving Credit Facility” means the multicurrency revolving credit facility referred to in a Clause 2.1(a) (Facilities).

 

“Revolving Credit Lender” means, subject to Clause 27.2 (Transfers by Lenders), a Lender listed in Part 1 of Schedule 1 (Lenders and Commitments) in its capacity as a participant in the Revolving Credit Facility and/or an Additional Lender.

 

“Rollover Advance” means any Advance (other than a Swingline Advance) made during the Availability Period which is drawn down to refinance in whole or in part any outstanding Advance (other than a Swingline Advance) where, after making and applying the proceeds of that Advance, the aggregate principal amount outstanding under the Revolving Credit Facility is not greater than the aggregate amount outstanding under that Facility immediately prior to that Advance being made.

 

“Screen Rate” means:

 

(a)                                 in relation to LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate);

 

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(b)                                 in relation to EURIBOR, the euro interbank offered rate administered by the European Money Markets Institute (or any other person which takes over the administration of that rate) for the relevant period displayed on page EURIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate); and

 

(c)                                  in relation to Overnight LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for euro and an overnight period displayed on pages LIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate),

 

or, in each case, on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with Vodafone.

 

“S&P” means Standard & Poor’s Rating Services.

 

“Security Interest” means any mortgage, charge, assignment by way of security, pledge, lien or other security interest securing any obligation of any person.

 

“Separate Loan” has the meaning given to that term in Clause 7.3 (Separate Loans).

 

“Signing Date” means 28 March 2014.

 

“Single Employer Plan” means a Plan which is maintained by any U.S. Obligor or any member of the Controlled USA Group for employees of Vodafone or any member of the Controlled USA Group.

 

“Subsidiary” means:

 

(a)           a subsidiary within the meaning of section 1159 of the Companies Act 2006; and

 

(b)                                 unless the context otherwise requires, a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006.

 

“Substitute Security Interest” has the meaning given to it in the definition of Permitted Security Interest, paragraph (q).

 

“Swingline Advance” means an advance made to a Borrower by the Swingline Lenders under the Swingline Facility.

 

“Swingline Affiliate” means, in relation to a Lender, any Swingline Lender that is an Affiliate of that Lender and which is notified to the Agent and the Euro Swingline Agent by that Lender in writing to be its Swingline Affiliate.

 

“Swingline Commitment” means:

 

(a)                                 in respect of a Swingline Lender which is an Original Lender, the amount in euro set opposite its name under the heading “Swingline Commitment” in Part 2 of Schedule 1 (Swingline Lenders and Swingline Commitments) or assumed by it in accordance with Clause 2.3 (Increase) or Clause 2.8 (Incremental revolving credit facility); and

 

(b)                                 in respect of a Swingline Lender which is an Additional Lender, the amount in euro set out as a Swingline Commitment in the relevant Lender Accession Agreement or assumed by it

 

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in accordance with Clause 2.3 (Increase) or Clause 2.8 (Incremental revolving credit facility), 

 

in each case to the extent not transferred, cancelled or reduced under or in accordance with this Agreement.

 

“Swingline Facility” means the committed euro swingline facility referred to in Clause 2.1(b) (Facilities).

 

“Swingline Lender” means, subject to Clause 27.2 (Transfers by Lenders), an Original Lender listed in Part 1 of Schedule 1 as a swingline lender or an Additional Lender in respect of which a Swingline Commitment is specified in the relevant Lender Accession Agreement.

 

“Swingline Margin” means 0.50 per cent. per annum.

 

“Swingline Rate” means, in relation to any day, the percentage rate per annum which is the aggregate of:

 

(a)                                 EONIA (in the case of a Swingline Advance with a Term of less than one week) or EURIBOR (in the case of a Swingline Advance with a Term of one week) for that day; and

 

(b)           the Swingline Margin.

 

“Swingline Total Commitments” means the aggregate for the time being of the Swingline Commitments, being €1,800,000,000 at the date of the Amendment and Restatement Agreement or as may be increased pursuant to Clause 2.8 (Incremental revolving credit facility) up to a maximum of €2,550,000,000.

 

“TARGET Day” means a day on which the Trans European Automated Real Time Gross Settlement Express Transfer (TARGET) payment system which utilises a single shared platform and which was launched on 19 November 2007 and is open for the settlement of payments in euro.

 

“Tax Credit” has the meaning given to it in Clause 11.6 (Refund of Tax Credits).

 

“Tax on Overall Net Income” in relation to a Finance Party, means any tax on the overall net income, profits or gains of that Finance Party or any of its Holding Companies (or the overall net income, profits or gains of a division or branch of that Finance Party or any of its Holding Companies).

 

“Tax Payment” has the meaning given to it in Clause 11.6 (Refund of Tax Credits).

 

“Taxes Act” means the Corporation Tax Act 2010.

 

“Term” means the period selected by a Borrower in a Request for which the relevant Revolving Credit Advance or Swingline Advance is to be outstanding.

 

“Total Commitments” means the aggregate for the time being of the Revolving Credit Commitments, being, at the date of the Amendment and Restatement Agreement, €3,840,000,000 (including the Swingline Total Commitments but without double counting).

 

“Treaty Lender” means a Lender which is (i) resident (as such term is defined in the appropriate double taxation treaty) in a country with which the United Kingdom has an appropriate double taxation treaty under which residents of that country are entitled to complete exemption from United Kingdom tax on interest and is entitled to apply under the Double Taxation Relief (Taxes on

 

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Income) (General) Regulations 1970 to have interest paid to its Facility Office without withholding or deduction for or on account of United Kingdom taxation; and (ii) does not carry on business in the United Kingdom through a permanent establishment with which the investments under this Agreement in respect of which the interest is paid are effectively connected; and for this purpose “double taxation treaty” means any convention or agreement between the government of the United Kingdom and any other government for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains.

 

“UK” or “United Kingdom” means the United Kingdom of Great Britain and Northern Ireland (but excluding, for the avoidance of doubt, the Channel Islands).

 

“Undisclosed Administration” means in relation to a Lender the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator under or based on the laws of the country where such Lender is subject to home jurisdiction supervision if applicable law requires that such appointment is not to be publicly disclosed.

 

“United States” means the United States of America.

 

“USD Facility” means the multi currency revolving credit facility originally dated 27 February 2015 (as amended from time to time) between, among others, Vodafone Group Plc and The Royal Bank of Scotland Plc as agent.

 

“U.S. Obligor” means any Obligor which is incorporated in the United States or any State thereof (including the District of Columbia).

 

“U.S. Tax Obligor” means:

 

(a)           a Borrower which is resident for tax purposes in the United States of America; or

 

(b)                                 an Obligor some or all of whose payments under the Finance Documents are from sources within the United States for United States federal income tax purposes.

 

“2015 Facility” means the €4,000,000,000 multi currency revolving five year facility dated 1 July 2010 with a capacity of €4,000,000,000 as at 1 July 2010 and made between, amongst others, Vodafone Group Plc, the Arrangers and Lenders identified therein and The Royal Bank of Scotland plc as Agent and Euro Swingline Agent and due 1 July 2015.

 

1.2          Construction

 

(a)           In this Agreement, unless the contrary intention appears, a reference to:

 

“agreed form” means, in relation to any document, such document in a form previously agreed in writing by or on behalf of the Agent and Vodafone;

 

“assets” of any person includes all or any part of that person’s business, operations, undertaking, property, assets, revenues (including any right to receive revenues) and uncalled capital;

 

an “authorisation” includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration and notarisation;

 

“Bank of America Merrill Lynch International Limited” is a reference to its successor in title Bank of America Merrill Lynch International Designated Activity Company (including, without limitation, its branches) pursuant to and with effect from the merger between Bank of America

 

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Merrill Lynch International Limited and Bank of America Merrill Lynch International Designated Activity Company that takes effect in accordance with the Cross-Border Mergers Directive (2005/56/EC) (as codified) as implemented in the United Kingdom and Ireland. Notwithstanding anything to the contrary in any Finance Document, a transfer of rights and obligations from Bank of America Merrill Lynch International Limited to Bank of America Merrill Lynch International Designated Activity Company pursuant to such merger shall be permitted;

 

a “finance lease” has the meaning given to it in IAS 17 as in effect at 1 April 2013;

 

“indebtedness” is a reference to any obligation for the payment or repayment of money, whether as principal or surety and whether present or future, actual or contingent;

 

a “month” is a reference to a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that, if there is no numerically corresponding day in the month in which that period ends, that period shall end on the last Business Day in that month;

 

a “regulation” includes any regulation, rule, official directive, request or guideline (in each case, whether or not having the force of law, but if not having the force of law, is generally complied with by the persons to whom it is addressed) of any governmental or supranational body, agency, department or regulatory, self-regulatory authority or organisation; and

 

“U.S.$” and “U.S. dollars” denote the lawful currency of the United States of America. “£” and “sterling” denote the lawful currency of the United Kingdom. “€”, “EUR” and “euro” denote the single currency of the Participating Member States;

 

(i)            a provision of a law is a reference to that provision as amended or re-enacted;

 

(ii)           a Clause or a Schedule is a reference to a clause of or a schedule to this Agreement;

 

(iii)          a person includes its successors, transferees and assigns;

 

(iv)          words importing the plural shall include the singular and vice versa;

 

(v)                                 a Finance Document or another document is a reference to that Finance Document or that other document as novated or, with the approval of Vodafone, amended or supplemented;

 

(vi)                              the term “Affiliate”, in relation to The Royal Bank of Scotland plc, shall not include (i) the UK government or any member or instrumentality thereof, including Her Majesty’s Treasury and UK Financial Investments Limited (or any directors, officers, employees or entities thereof) or (ii) any persons or entities controlled by or under common control with the UK government or any member or instrumentality thereof (including Her Majesty’s Treasury and UK Financial Investments Limited) and which are not part of The Royal Bank of Scotland Group plc and its subsidiaries or subsidiary undertakings; and

 

(vii)         a time of day is a reference to London time.

 

(b)                                 Unless the contrary intention appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

 

(c)                                  The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement.

 

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(d)           (i)            Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999.

 

(ii)           Notwithstanding any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise of any liability under) or termination of that Finance Document.

 

2.             THE FACILITIES

 

2.1          Facilities

 

Subject to the terms of this Agreement, the Lenders grant to the Borrowers:

 

(a)           a committed multicurrency revolving five year facility (subject to Clause 6 (Extension Options)), under which the Lenders will, when requested by a Borrower, make cash advances in euro or Optional Currencies to that Borrower on a revolving basis during the Availability Period already defined; and

 

(b)           a committed euro swingline advance facility (which is a sub-division of the Revolving Credit Facility) under which the Swingline Lenders will, when requested by a Borrower, make to that Borrower Swingline Advances during the Availability Period.

 

2.2          Overall facility limits

 

(a)           The Swingline Facility is not independent of the Revolving Credit Facility. The aggregate Original Euro Amount of all outstanding Advances (including Swingline Advances) under:

 

(i)            the Revolving Credit Facility, shall not at any time exceed the Total Commitments at that time; and

 

(ii)           the Swingline Facility, shall not at any time exceed the Swingline Total Commitments at that time.

 

(b)           The aggregate Original Euro Amount of:

 

(i)            the participations of a Lender in Revolving Credit Advances plus that Lender’s and, if applicable, that Lender’s Swingline Affiliate’s (if any), participations in outstanding Swingline Advances shall not at any time exceed that Lender’s Revolving Credit Commitment at that time; and

 

(ii)           the participations of a Swingline Lender in Swingline Advances shall not at any time exceed that Swingline Lender’s Swingline Commitment at that time.

 

(c)           If, in respect of any Revolving Credit Advance, the operation of Clause 5.4 (Amount of each Lender’s participation in an Advance) would otherwise have caused a Lender (the “Affected Lender”) to breach sub-paragraph (b)(i) above then:

 

(i)            each Affected Lender will participate in the relevant Revolving Credit Advance only to the extent that the Original Euro Amount of its participation in that Revolving Credit Advance (when aggregated with the Original Euro Amount of its and, if applicable, that Lender’s Swingline Affiliate’s (if any), participations in other outstanding Revolving Credit Advances and Swingline Advances) will not exceed its Revolving Credit Commitment; and

 

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(ii)           each other non-Affected Lender’s participation in that Revolving Credit Advance will be recalculated in accordance with Clause 5.4 (Amount of each Lender’s participation in an Advance), but, for the purpose of the recalculation, the Affected Lenders’ Revolving Credit Commitments will be deducted from the Total Commitments and the amount of the Affected Lenders’ participations in that Revolving Credit Advance (if any) will be deducted from the requested amount of the Revolving Credit Advance.

 

2.3          Increase

 

(a)           Vodafone may by giving prior notice to the Agent by no later than the date falling 60 Business Days after the effective date of a cancellation of:

 

(i)            the Available Commitments of a Defaulting Lender in accordance with paragraph (c) of Clause 8.5 (Right of prepayment and cancellation); or

 

(ii)           the Commitments of a Lender in accordance with Clause 14.1 (Illegality),

 

request that the Total Commitments be increased (and the Total Commitments shall be so increased in an aggregate amount of up to the amount of the Available Commitments or Commitments so cancelled as follows:

 

(A)          the increased Commitments will be assumed by one or more Lenders or other banks or financial institutions (each an “Increase Lender”) selected by Vodafone and which is further acceptable to the Agent (acting reasonably) and each of which confirms its willingness to assume and does assume all the obligations of a Lender corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Lender;

 

(B)          each of the Obligors and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors and the Increase Lender would have assumed and/or acquired had the Increase Lender been an Original Lender;

 

(C)          each Increase Lender shall become a Party as a “Lender” and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender;

 

(D)          the Commitments of the other Lenders shall continue in full force and effect; and

 

(E)           any increase in the Total Commitments shall take effect on the date specified by Vodafone in the notice referred to above or any later date on which the conditions set out in paragraph (b) below are satisfied.

 

(b)           An increase in the Total Commitments will only be effective on:

 

(i)            the execution by the Agent of an Increase Confirmation from the relevant Increase Lender;

 

(ii)           in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase the performance by the Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender, the completion of which the Agent shall promptly notify to Vodafone and the Increase Lender.

 

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(c)           Each Increase Lender, by executing the Increase Confirmation, confirms (for the avoidance of doubt) that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase becomes effective.

 

(d)           Unless the Agent otherwise agrees or the increased Commitment is assumed by an existing Lender, Vodafone shall, on the date upon which the increase takes effect, pay to the Agent (for its own account) a fee of €2,500 and Vodafone shall promptly on demand pay the Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with any increase in Commitments under this Clause 2.3.

 

(e)           Vodafone may pay to the Increase Lender a fee in the amount and at the times agreed between Vodafone and the Increase Lender in a letter between Vodafone and the Increase Lender setting out that fee. A reference in this Agreement to a Fee Letter shall include any letter referred to in this paragraph (e).

 

(f)            Clause 27.2(f) to (j) inclusive (Transfers by Lenders) shall apply mutatis mutandis in this Clause 2.3 in relation to an Increase Lender as if references in that Clause to:

 

(i)            an “Existing Lender” were references to all the Lenders immediately prior to the relevant increase;

 

(ii)           the “New Lender” were references to that “Increase Lender”; and

 

(iii)          a “retransfer” were references to a “transfer”.

 

2.4          Number of Requests

 

Unless the Agent agrees otherwise, no more than one Request (other than Requests for Swingline Advances only) may be delivered on any one day but that Request may specify any number and type of Advances from the Revolving Credit Facility or the Swingline Facility or either of them.

 

2.5          Nature of rights and obligations

 

(a)           The obligations of a Finance Party and each Obligor under the Finance Documents are several. Failure of a Finance Party or an Obligor to carry out those obligations does not relieve any other Party of its obligations under the Finance Documents. No Finance Party or Obligor is responsible for the obligations of any other Finance Party or Obligor under the Finance Documents save and to the extent that the relevant obligations are guaranteed by another Obligor.

 

(b)           The rights of a Finance Party under the Finance Documents are divided rights. A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce those rights.

 

2.6          Vodafone as Obligors’ agent

 

Each Obligor:

 

(a)           irrevocably authorises and instructs Vodafone to give and receive as agent on its behalf all notices (including Requests) and sign all documents in connection with the Finance Documents on its behalf (including but not limited to amendments and variations and execution of any new Finance Documents) and take such other action as may be necessary or desirable under or in connection with the Finance Documents; and

 

27

 

(b)           confirms that it will be bound by any action taken by Vodafone under or in connection with the Finance Documents.

 

2.7          Actions of Vodafone as Obligors’ agent

 

The respective liabilities of each of the Obligors under the Finance Documents shall not be in any way affected by:

 

(a)           any irregularity (or purported irregularity) in any act done by or any failure (or purported failure) by Vodafone; or

 

(b)           Vodafone acting (or purporting to act) in any respect outside any authority conferred upon it by any Obligor; or

 

(c)           the failure (or purported failure) by or inability (or purported inability) of Vodafone to inform any Obligor of receipt by it of any notification under this Agreement.

 

2.8          Incremental revolving credit facility

 

(a)           Vodafone may, by giving notice to the Agent and the Euro Swingline Agent, request that the Total Commitments be increased, provided that:

 

(i)            the Total Commitments may not be increased to an amount greater than €7,500,000,000;

 

(ii)           the Combined Commitments shall not exceed €7,500,000,000 plus US$7,500,000,000 (or its equivalent in euros calculated at the Agent’s Spot Rate of Exchange);

 

(iii)          the Swingline Total Commitments shall not exceed €2,550,000,000; and

 

(iv)          the Combined Swingline Commitments shall not exceed €2,550,000,000 plus US$7,500,000,000 (or its equivalent in euros calculated at the Agent’s Spot Rate of Exchange).

 

(b)           Vodafone shall no later than five Business Days prior to the intended Increase Effective Date (as defined below) deliver to the Agent (with a copy to the Euro Swingline Agent) notice of the intended Increase Effective Date together with:

 

(i)            a list of each existing Lender (each an Existing Increasing Lender) and each Additional Lender (each an Acceding Lender), in each case that has confirmed its willingness to assume increased Revolving Credit Commitments and/or Swingline Commitments (as applicable) (together, the Incremental Facility Increase Lenders), together with details of the amounts of their intended increased Revolving Credit Commitments and/or Swingline Commitments (as applicable) (the Assumed Increase Commitments);

 

(ii)           originals of each Lender Accession Agreement duly completed and executed by each relevant Acceding Lender and countersigned by Vodafone on behalf of itself and each other Obligor; and

 

(iii)          originals of each Commitment Increase Agreement duly completed and executed by Vodafone and each Existing Increasing Lender.

 

(c)           No later than three Business Days prior to the intended Increase Effective Date, the Agent and the Euro Swingline Agent shall notify each Incremental Facility Increase Lender of the Increase Effective Date.

 

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(d)           An increase in the Total Commitments pursuant to this Clause 2.8 will only be effective in relation to an Acceding Lender which is not a Lender immediately prior to the intended Increase Effective Date, on the performance by the Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Acceding Lender, the completion of which the Agent shall promptly notify to Vodafone and the Acceding Lender.

 

(e)           Any Additional Lender will participate only in Advances with a Drawdown Date following the date on which it became an Additional Lender and only then if:

 

(i)            it has become an Additional Lender in time to receive sufficient notice of the relevant Advance from the Agent pursuant to Clause 5.5 (Notification of the Lenders); and

 

(ii)           immediately before such an Advance is to be made either:

 

(A)          no Advances are or will be outstanding; or

 

(B)          all outstanding Advances at that time are or will be immediately repaid or prepaid in full in accordance with the terms of this Agreement.

 

(f)            On and from the Drawdown Date on which an Incremental Facility Increase Lender makes an Advance under Clause 5.1, such Incremental Facility Increase Lender shall participate in each new Revolving Credit Advance or, as the case may be, Swingline Advance in accordance with Clause 5.4 (Amount of each Lender’s participation in an Advance).

 

(g)           The execution by Vodafone of an Accession Document constitutes confirmation by each Guarantor that its obligations under Clause 15 (Guarantee) shall continue unaffected except that those obligations shall extend to the Total Commitments as increased by the addition of the relevant Additional Lender’s Revolving Credit Commitment (including such Additional Lender’s Swingline Commitment but without double counting) and shall be owed to each Finance Party including the relevant Additional Lender.

 

(h)           On the date nominated (by notice given by the Agent to the Incremental Facility Increase Lenders and the Euro Swingline Agent) by the Agent and Vodafone as the date on which such increase is to take effect (the Increase Effective Date):

 

(i)            the Revolving Credit Commitments and/or Swingline Commitments (as applicable) of each Existing Increasing Lender shall be increased, as the case may be to the amount set out in the relevant Accession Document;

 

(ii)           the Revolving Credit Commitments and/or Swingline Commitments (as applicable) of each Lender that is not an Existing Increasing Lender shall remain unchanged;

 

(iii)          each Acceding Lender shall accede hereto as an Additional Lender with such Revolving Credit Commitments and/or Swingline Commitments (as applicable) as it has agreed in accordance with this Clause 2.8;

 

(iv)          each of the Obligors and each Incremental Facility Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors and each Incremental Facility Increase Lender would have assumed and/or acquired had each Incremental Facility Increase Lender been an Original Lender in respect of the Assumed Increase Commitment including, for the avoidance of doubt, any rights and obligations under Clause 15 (Guarantee) (as applicable); and

 

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(v)           each Incremental Facility Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Incremental Facility Increase Lender and those Finance Parties would have assumed and/or acquired had the Incremental Facility Increase Lender been an Original Lender in respect of the Assumed Increase Commitment.

 

(i)            The obligations of each Finance Party to any Borrower under this Agreement on and from the Increase Effective Date are subject to the conditions precedent that the Agent has notified Vodafone and the Lenders that it has received all of the documents set out in Part 3 (To be delivered before the first Advance — Incremental Facility) of Schedule 2 (Conditions Precedent Documents) in form and substance satisfactory to the Agent. The Agent will give such notice of receipt within two Business Days after receiving the relevant documents and finding them in form and substance satisfactory to it.

 

(j)            Nothing in this Clause 2.8 shall oblige any Lender to increase its Revolving Credit Commitments and/or Swingline Commitments (as applicable) at any time. Each Lender acknowledges and agrees that its Revolving Credit Commitment and/or Swingline Commitments (as applicable) may be adjusted in accordance with this Clause 2.8.

 

(k)           Vodafone may pay to an Incremental Facility Increase Lender a fee in the amount and at the times agreed between Vodafone and the Incremental Facility Increase Lender in the relevant Fee Letter.

 

(l)            Vodafone shall promptly on demand pay the Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with any increase of the Total Commitments under this Clause 2.8.

 

(m)          On each Increase Effective Date, each Incremental Facility Increase Lender shall pay to the Agent (for its own account) a fee of €2,500.

 

(n)           The Agent shall, as soon as reasonably practicable after establishment of any increase to the Total Commitments pursuant to this Clause 2.8, notify the Lenders of such increase and the Increase Effective Date.

 

3.             PURPOSE

 

3.1          Purpose

 

Each Revolving Credit Advance will be used for the refinancing of the 2015 Facility, following which each Advance will be applied in or towards providing support for the Consolidated Group’s continuing commercial paper programmes and each Revolving Credit Advance will be applied for general corporate purposes of the Consolidated Group including, but not limited to, Acquisitions (provided that a Swingline Advance may not be applied in or towards refinancing another Swingline Advance).

 

3.2          No monitoring

 

Without affecting the obligations of any Borrower in any way, no Finance Party is bound to monitor or verify the application of the proceeds of any Advance.

 

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4.             CONDITIONS PRECEDENT

 

4.1          Initial conditions precedent — Signing Date

 

The obligations of each Finance Party to any Borrower under this Agreement are subject to the conditions precedent that:

 

(a)           the Agent has notified Vodafone and the Lenders that it has received all of the documents set out in Part 1 of Schedule 2 in the agreed form or such other form and substance satisfactory to the Agent. The Agent will give such notice of receipt within two Business Days after receiving the relevant documents and finding them in form and substance satisfactory to it; and

 

(b)           the Agent confirms on or prior to the Signing Date (i) that the 2015 Facility has been cancelled and (ii) all amounts outstanding under the 2015 Facility have been repaid.

 

4.2          Conditions to all drawdowns and rollovers

 

The obligations of each Lender to participate in any Advance are subject to the further conditions precedent that on the date of the Request for the Advance (if applicable) and on the date on which the relevant amount is to be drawn down:

 

(a)           the representations and warranties in Clause 16 (Representations and Warranties) are correct and will be correct immediately after the relevant Advance or amount is drawn down in each case in all material respects; and

 

(b)           in the case of a Rollover Advance, no Event of Default is continuing or would result from the proposed Advance, and in the case of any other drawdown, no Default has occurred and is continuing or would result from drawdown of the relevant Advance or amount.

 

4.3          Conditions relating to Optional Currencies

 

(a)           A currency will constitute an Optional Currency in relation to an Advance if:

 

(i)            it is readily available in the amount required and freely convertible into the Base Currency in the Relevant Interbank Market on the Rate Fixing Day and the Drawdown Date for that Advance; and

 

(ii)           it is Sterling or U.S. Dollars, or has been approved by the Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Agent of the relevant Request for that Advance.

 

(b)           If by 10:00 a.m. on a Business Day, the Agent has received a written request from Vodafone for a currency to be approved under paragraph (a)(ii) above, the Agent will notify the Lenders of that request by 3:00 p.m. on the same Business Day. Based on any responses received by the Agent by 1:00 p.m. the next Business Day, the Agent will confirm to Vodafone by 5:00 p.m. on that Business Day:

 

(i)            whether or not the Lenders have granted their approval; and

 

(ii)           if approval has been granted, the minimum amount (and, if required, integral multiples) for any subsequent utilisation in that currency.

 

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4.4          Maximum number of Revolving Credit Advances

 

A Borrower may not deliver a Request if as a result of the proposed Advance more than 10 Revolving Credit Advances would be outstanding.

 

5.             ADVANCES

 

5.1          Receipt of Requests

 

(a)           A Borrower may borrow Advances under the Revolving Credit Facility (other than Swingline Advances) if the Agent receives, not later than 3.00 p.m. on the third Business Day before the proposed Drawdown Date, or, in the case of an Advance in Sterling, not later than 3.00 p.m. on the Business Day before the proposed Drawdown Date, a duly completed Request, copied, to the Euro Swingline Agent.

 

(b)           A Borrower may borrow Swingline Advances if the Euro Swingline Agent receives, not later than 9.30 a.m. (Central European time) on the proposed Drawdown Date, a duly completed Request, copied to the Agent.

 

5.2          Completion of Requests for Revolving Credit Advances

 

A Request for a Revolving Credit Advance will not be regarded as having been duly completed unless:

 

(a)           the Drawdown Date is a Business Day falling during the Availability Period;

 

(b)           only one currency is specified for each separate Advance and the Requested Amount for each separate Advance is in a minimum amount:

 

(i)            if in euro, of €25,000,000;

 

(ii)           if in Sterling, of £20,000,000;

 

(iii)          if in U.S. Dollars, of U.S.$25,000,000; or

 

(iv)          appropriate equivalent minimum amounts for Optional Currencies other than Sterling or U.S. Dollars,

 

or, in any such case:

 

(A)          if less, is in an amount equal to the unutilised portion of the Total Commitments; or

 

(B)          such other amount as Vodafone and the Agent may agree;

 

(c)           only one Term for each separate Advance is specified which:

 

(i)            does not overrun the Final Maturity Date; and

 

(ii)           is a period of one week, one month, two, three (or such comparable period as the Borrower may adopt to reflect international futures exchange settlement dates) or six months (or such other period as may be agreed by Vodafone and (if not more than six months) the Agent or (if more than six months) all of the Lenders); and

 

(d)           the payment instructions comply with Clause 10.1 (Place of payment).

 

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5.3          Completion of Requests for Swingline Advances

 

A Request for a Swingline Advance will not be regarded as having been duly completed unless:

 

(a)           the Drawdown Date is a Business Day falling during the Availability Period;

 

(b)           it is specified that the Swingline Advance is to be made in euro under the Swingline Facility;

 

(c)           the Requested Amount is a minimum of €15,000,000 or such other amount as the Euro Swingline Agent and Vodafone may agree;

 

(d)           only one Term is specified, which:

 

(i)            does not overrun the Final Maturity Date; and

 

(ii)           is a period not exceeding one week; and

 

(e)           the payment instructions comply with Clause 10.1 (Place of payment).

 

5.4          Amount of each Lender’s participation in an Advance

 

The amount of a Lender’s participation in an Advance will be the proportion of the Requested Amount which:

 

(a)           in the case of a Revolving Credit Advance, its Revolving Credit Commitment bears to the Total Commitments; and

 

(b)           in the case of a Swingline Advance, its Swingline Commitment bears to the Swingline Total Commitments,

 

in each case on the date of receipt of the relevant Request, adjusted in the case of paragraph (a) (if necessary) to reflect the operation of Clause 2.2(c) (Overall facility limits).

 

5.5          Notification of the Lenders

 

The Agent (or, in the case of Swingline Advances, the Euro Swingline Agent) shall promptly notify each Lender (or, as the case may be, Swingline Lender) of the details of the requested Advance and the amount of its participation in such Advance.

 

5.6          Payment of proceeds

 

Subject to the terms of this Agreement, each Lender (or, as the case may be, Swingline Lender) shall make its participation in an Advance available to the Agent (or, in the case of a participation in a Swingline Advance, the Euro Swingline Agent) for the Borrower concerned for value on the relevant Drawdown Date.

 

6.             EXTENSION OPTIONS

 

6.1          First extension option

 

(a)           Vodafone may by notice to the Agent (the “First Extension Request”) not more than 60 days and not less than 30 days before the first anniversary of the Effective Date (the “First Anniversary”), request that the Final Maturity Date be extended to the date which is six years after the Effective Date (the “Sixth Anniversary”).

 

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(b)                                 The Agent must promptly notify the Lenders of the First Extension Request.

 

(c)                                  Each Lender may, in its sole discretion, agree to the First Extension Request. Subject to paragraph (g) below, each Lender that agrees to the First Extension Request by the date falling 15 days before the First Anniversary, will, on the First Anniversary, extend its Commitments to the Sixth Anniversary and the Final Maturity Date with respect to the Commitments of that Lender will be extended to that date.

 

(d)                                 If any Lender fails to reply to the First Extension Request on or before the date falling 15 days before the First Anniversary, it will be deemed to have refused the First Extension Request and its Commitments will not be extended.

 

(e)                                  Subject to paragraph 6.1(g) below, the First Extension Request is irrevocable.

 

(f)                                   If one or more (but not all) of the Lenders agree to the First Extension Request, then by the date falling no later than 10 days before the First Anniversary, the Agent must notify Vodafone and the Lenders which have agreed to the first extension, identifying in that notification which Lenders have not agreed to the First Extension Request.

 

(g)                                  Vodafone may, on the basis that one or more of the Lenders have not agreed to the First Extension Request and no later than the date falling 5 days before the First Anniversary, withdraw the request by notice to the Agent which will promptly notify the Lenders.

 

6.2                               Second extension option

 

(a)                                 If the Final Maturity Date has been extended to the Sixth Anniversary pursuant to Clause 6.1 (First extension option), Vodafone may by notice to the Agent (the “Second Extension Request”) not more than 60 days and not less than 30 days before second anniversary of the Effective Date (the Second Anniversary), request that the Final Maturity Date be extended to the date which is seven years after the Effective Date (the “Seventh Anniversary”).

 

(b)                                 The Agent must promptly notify the Lenders of the Second Extension Request.

 

(c)                                  Each Lender may, in its sole discretion, agree to the Second Extension Request. Subject to paragraph (g) below, each Lender that agrees to the Second Extension Request by the date falling 15 days before the Second Anniversary, will, on the Second Anniversary, extend its Commitments to the Seventh Anniversary and the Final Maturity Date with respect to the Commitments of that Lender will be extended to that date.

 

(d)                                 If any Lender fails to reply to the Second Extension Request on or before the date falling 15 days before the Second Anniversary, it will be deemed to have refused the Second Extension Request and its Commitments will not be extended.

 

(e)                                  Subject to paragraph (g) below, the Second Extension Request is irrevocable.

 

(f)                                   If one or more (but not all) of the Lenders agree to the Second Extension Request, then by the date falling no later than ten days before the Second Anniversary, the Agent must notify Vodafone and the Lenders which have agreed to the second extension, identifying in that notification which Lenders have not agreed to the Second Extension Request.

 

(g)                                  Vodafone may, on the basis that one or more of the Lenders have not agreed to the Second Extension Request and no later than the date falling 5 days before the Second Anniversary, withdraw the request by notice to the Agent which will promptly notify the Lenders.

 

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7.                                      REPAYMENT

 

7.1                               Repayment of Revolving Credit Advances

 

(a)                                 Each Borrower shall repay each Revolving Credit Advance made to it in full on its Maturity Date to the Agent for the Lenders, but since the Revolving Credit Facility is available on a revolving basis during the Availability Period amounts repaid may be reborrowed subject to the terms of this Agreement.

 

(b)                                 No Revolving Credit Advance may be outstanding after the Final Maturity Date.

 

7.2                               Repayment of Swingline Advances

 

(a)                                 Each Borrower shall repay each Swingline Advance made to it in full on its Maturity Date to the Euro Swingline Agent for the Swingline Lenders. No Swingline Advance may be outstanding after the Final Maturity Date.

 

(b)                                 Each Swingline Advance shall be repaid on its Maturity Date in accordance with paragraph (a) above. In the event and to the extent that a Swingline Advance is not so repaid, each Lender will, within four Business Days of a demand to that effect from the Euro Swingline Agent, pay to the Euro Swingline Agent on behalf of the Swingline Lenders (which shall be deemed to be a drawing of that Lender’s Commitment) an amount equal to its Agreed Percentage (without set-off, counterclaim, withholding or other deduction) of the principal amount outstanding of such Swingline Advance and accrued interest (including default interest) thereon to the date of actual payment by such Lender (provided that no Lender shall be obliged to exceed its Commitment as a result of any such payment). The relevant Borrower shall forthwith reimburse the Lenders (through the Agent) in full for each payment made by the Lenders under this paragraph (b). Each amount the relevant Borrower is required to reimburse to the Lenders under this paragraph (b) shall be deemed to be an Overdue Amount which fell due for payment by the relevant Borrower on the day on which the payment by the Lenders giving rise to the reimbursement obligation was made and shall accrue default interest under Clause 9.3 (Default Interest) accordingly. The obligations of each Lender under this paragraph (b) are unconditional and shall not be affected by the occurrence or continuance of a Default.

 

7.3                               Separate Loans

 

(a)                                 At any time when a Lender becomes a Defaulting Lender, the maturity date of each of the participations of that Lender in the Facilities then outstanding will be automatically extended to the earlier of:

 

(i)                                     the first Business Day falling 364 days after the date on which the Agent or a Borrower gives notice to the Defaulting Lender and the other Parties that the relevant Lender has become a Defaulting Lender, and will be treated as separate Facilities (the “Separate Loans”) denominated in the currency in which the relevant participations are outstanding; and

 

(ii)                                  the last day of the Availability Period.

 

(b)                                 A Borrower to whom a Separate Loan is outstanding may prepay that Separate Loan by giving 10 Business Days’ prior notice to the Agent. The Agent will forward a copy of a prepayment notice received in accordance with this paragraph (b) to the Defaulting Lender concerned as soon as practicable on receipt.

 

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(c)                                  Interest in respect of a Separate Loan will accrue for successive Terms selected by a Borrower by the time and date specified by the Agent acting reasonably and will be payable by that Borrower to the Defaulting Lender on the last day of each Term of that Advance.

 

(d)                                 The terms of this Agreement relating to the Facilities generally shall continue to apply to Separate Loans other than to the extent inconsistent with paragraphs (a) to (c) above (inclusive) in which case those paragraphs shall prevail in respect of any Separate Loans.

 

(e)                                  If at any time while a Separate Loan is outstanding the Borrower transfers the relevant Defaulting Lender’s outstanding participations to a Replacement Lender in accordance with Clause 27.5 (Replacement of Lenders), each Separate Loan transferred to the Replacement Lender will automatically become, on the last day of the current Term for each such Separate Loan, a Revolving Credit Advance and paragraphs (a) to (c) above (inclusive) shall cease to apply to that Advance while such Replacement Lender is not a Defaulting Lender.

 

8.                                      PREPAYMENT AND CANCELLATION

 

8.1                               Automatic cancellation of Total Commitments

 

(a)                                 The Revolving Credit Commitments of each Lender shall be automatically cancelled at the close of business in London on the Final Maturity Date.

 

(b)                                 The Swingline Commitment of each Swingline Lender shall be automatically cancelled at the close of business in London on the Final Maturity Date.

 

8.2                               Voluntary cancellation

 

(a)                                 Vodafone may by giving not less than one Business Day’s prior written notice to the Agent, cancel the unutilised portion of the Total Commitments in whole or in part (but, if in part, in an aggregate minimum amount of €75,000,000) in such proportions as Vodafone may designate in the notice of cancellation. Any cancellation in part shall be applied against the Revolving Credit Commitment of each Lender pro rata.

 

(b)                                 Whenever part of the Total Commitments is cancelled, the Swingline Commitments will not be cancelled unless (i) the amount of the Swingline Total Commitments would exceed the Total Commitments after such cancellation or (ii) the Swingline Commitment of any Swingline Lender would exceed its Commitment after such cancellation. In any such case, the Swingline Total Commitments shall, at the same time as the cancellation of the Total Commitments takes effect, be cancelled by such amount as is necessary to ensure that after the relevant cancellation of the Total Commitments the Swingline Total Commitments do not exceed the Total Commitments and the Swingline Commitment of each Swingline Lender does not exceed its Commitment.

 

8.3                               Voluntary prepayment

 

(a)                                 Any Borrower may by giving not less than five Business Days’ prior written notice to the Agent, prepay the whole or any part of the Revolving Credit Advances (but, if in part, in an aggregate minimum Original Euro Amount, taking all prepayments made by all the Borrowers on the same day together, of €100,000,000).

 

(b)                                 Any Borrower may prepay the whole of any Swingline Advance at any time.

 

(c)                                  Any voluntary prepayment in part made under paragraph (a) above will be applied against all the Revolving Credit Advances pro rata (or against such Revolving Credit Advances as Vodafone (or the relevant Borrower) may designate in the notice of prepayment).

 

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8.4                               Change of Control

 

If control of Vodafone (other than as a result of a Hive Up) or, following a Hive Up, NewTopco, passes to any person acting either individually or in concert (a “Change of Control”):

 

(a)                                 Vodafone shall, promptly upon becoming aware thereof, notify the Agent who shall inform the Lenders;

 

(b)                                 any Lender may, if it determines that as a result of the Change of Control:

 

(i)                                     the level of its exposure to Vodafone, NewTopco and/or the entity which acquires control of Vodafone or NewTopco, as the case may be is unacceptably high in each case in the sole opinion of the Lender; or

 

(ii)                                  it no longer wishes (in its sole discretion and acting in good faith) to continue lending to Vodafone or NewTopco, as the case may be (whether for relationship, internal policy or any other reason);

 

propose to Vodafone (through the Agent) the revised terms (if any) which it requires in order to continue to participate in the Facilities; and

 

(c)                                  if those revised terms have not been agreed with that Lender (or that Lender is not prepared, for one or more of the reasons set out in paragraph (b)(i) or (ii) above, to continue on any terms) within 30 days of the date of notification in paragraph (a) above (or such longer period as that Lender may agree in writing) then on expiry of 30 days from the date of notification in paragraph (a) above that Lender may by notice to the Agent (which shall promptly inform Vodafone) cancel the whole (but not part only) of such Lender’s Commitments and following service of such notice:

 

(i)                                     such Lender’s Commitments shall be cancelled on the date of service of the notice or as specified in it; and

 

(ii)                                  all such Lender’s outstanding Advances shall be repaid or prepaid on the last day of the then current Term applicable thereto, and no amount may be outstanding to such Lender thereafter.

 

For the purposes of this Clause 8.4, “control” has the meaning given to it in relation to a body corporate by Section 1124 of the Taxes Act.

 

8.5                               Right of prepayment and cancellation

 

If:

 

(a)                                 any Borrower is required to pay or is notified by any Lender in writing that it will be required to pay any amount to a Lender under Clause 11 (Taxes) or Clause 13 (Increased Costs); or

 

(b)                                 if circumstances exist such that a Borrower will be required to pay any amount to a Lender under Clause 11 (Taxes) or Clause 13 (Increased Costs),

 

Vodafone may serve a notice of prepayment and cancellation on that Lender through the Agent. On the date falling five Business Days after the date of service of the notice:

 

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(i)                                     each Borrower will prepay the participations of that Lender in all outstanding Advances made to that Borrower; and

 

(ii)                                  the Lender’s Commitments shall be permanently cancelled on the date of service of the notice.

 

(c)                                  If any Lender becomes a Defaulting Lender, Vodafone may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent 5 Business Days’ notice of cancellation of each Available Commitment of that Lender.

 

(d)                                 On the notice referred to in paragraph (d) above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be reduced to zero.

 

(e)                                  The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (e) above, notify all the Lenders.

 

8.6                               Miscellaneous provisions

 

(a)                                 Any notice of prepayment and/or cancellation under this Agreement is irrevocable. The Agent shall notify the Lenders promptly of receipt of any such notice.

 

(b)                                 All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid and any other amounts due under this Agreement in respect of that prepayment (including, but not limited to, any amounts payable under Clause 24.2(c) (Other indemnities) if not made on the Maturity Date of the relevant Revolving Credit Advance or Swingline Advance).

 

(c)                                  No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement.

 

(d)                                 Subject to the provisions of this Agreement, any amount prepaid in respect of the Revolving Credit Facility during the Availability Period may be reborrowed.

 

(e)                                  Subject to Clause 2.3 (Increase), no amount of the Total Commitments, (including the Swingline Total Commitments) cancelled under this Agreement may subsequently be reinstated.

 

9.                                      INTEREST

 

9.1                               Interest rate for all Advances

 

(a)                                 The rate of interest on each Advance (other than any Swingline Advance) for its Term, is the rate per annum determined by the Agent to be the aggregate of:

 

(i)                                     the applicable Margin; and

 

(ii)                                  EURIBOR or, in the case of an Advance denominated in any Optional Currency, LIBOR.

 

(b)                                 The rate of interest on each Swingline Advance for each day during its Term is the rate per annum determined by the Euro Swingline Agent to be the Swingline Rate for that day.

 

(c)                                  If, in relation to any TARGET Day:

 

(i)                                     there is no EONIA Screen Rate; or

 

(ii)                                  on or before the close of business in London on the TARGET Day, the Agent receives notifications from a Lender or Lenders (whose participations in a Swingline Advance exceed

 

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50 per cent. of that Swingline Advance) that the cost to it of obtaining matching deposits in their Relevant Interbank Market would be in excess of EONIA,

 

the rate of interest on each Lender’s share of the relevant Swingline Advance for the relevant day shall be the percentage rate per annum which is the sum of the Swingline Margin and:

 

(A)                               Overnight LIBOR; or

 

(B)                               if there is no Screen Rate for Overnight LIBOR, the rate notified to the Euro Swingline Agent by that Lender to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Swingline Advance for that day from whatever source it may reasonably select.

 

9.2                               Due dates

 

Except as otherwise provided in this Agreement, accrued interest on each Advance is payable by the relevant Borrower on its Maturity Date and also, in the case of any Advance with a Term longer than six months, at six monthly intervals after its Drawdown Date for so long as the Term is outstanding.

 

9.3                               Unavailability of Screen Rate

 

(a)                                 Interpolated Screen Rate: If no Screen Rate is available for EURIBOR or, if applicable, LIBOR for the Required Period of an Advance or unpaid sum, the applicable EURIBOR or, if applicable, LIBOR shall be the Interpolated Screen Rate for a period equal in length to the Required Period of that Advance or unpaid sum;

 

(b)                                 Shortened Interest Period: If no Screen Rate is available for EURIBOR or, if applicable, LIBOR for:

 

(i)                                     the currency of an Advance or unpaid sum; or

 

(ii)                                  the Required Period of an Advance or unpaid sum and it is not possible to calculate the Interpolated Screen Rate,

 

the Required Period of that Advance or unpaid sum shall (if it is longer than the applicable Fallback Interest Period) be shortened to the applicable Fallback Interest Period and the applicable EURIBOR or, if applicable, LIBOR for that shortened Required Period shall be determined pursuant to the definition of “EURIBOR”/”LIBOR”.

 

(c)                                  Shortened Interest Period and Historic Screen Rate: If the Required Period of an Advance or unpaid sum is, after giving effect to paragraph (b) above, either the applicable Fallback Interest Period or shorter than the applicable Fallback Interest Period and, in either case, no Screen Rate is available for EURIBOR or, if applicable, LIBOR for:

 

(i)                                     the currency of that Advance or unpaid sum; or

 

(ii)                                  the Required Period of that Advance or unpaid sum and it is not possible to calculate the Interpolated Screen Rate,

 

the applicable EURIBOR or, if applicable, LIBOR shall be the Historic Screen Rate for that Advance or unpaid sum.

 

(d)                                 Shortened Interest Period and Interpolated Historic Screen Rate: If paragraph (c) above applies but no Historic Screen Rate is available for the Required Period of the Advance or unpaid sum, the

 

39

 

applicable EURIBOR or, if applicable, LIBOR shall be the Interpolated Historic Screen Rate for a period equal in length to the Required Period of that Advance or unpaid sum.

 

(e)                                  Cost of funds: if paragraph (d) above applies but it is not possible to calculate an Interpolated Historic Screen Rate for that Advance or unpaid sum, the Required Period for that Advance or unpaid sum shall, if it has been shortened pursuant to paragraph (b) above, revert to its previous length and there shall be no EURIBOR or, if applicable, LIBOR for that Advance or unpaid sum and Clause 9.9 shall apply to that Advance or unpaid sum for a period in length equal to the Required Period.

 

9.4                               Unavailability of EONIA Screen Rate

 

(a)                                 If no EONIA Screen Rate is available for any day the applicable EONIA for that day shall be the most recent applicable EONIA Screen Rate which is as of a day which is no more than 5 days before that day.

 

(b)                                 If paragraph (a) above applies and there is no applicable EONIA Screen Rate which is as of a day which is no more than 5 days before that day then there shall be no EONIA for that day.

 

9.5                               Default interest

 

(a)                                 If a Borrower fails to pay any amount payable by it under this Agreement when due (an “Overdue Amount”), it shall forthwith on demand by the Agent or, as the case may be, the Euro Swingline Agent, pay interest on the Overdue Amount from the due date up to the date of actual payment, both before and after judgment, at a rate (the “Default Rate”) determined by the Agent or, as the case may be, the Euro Swingline Agent to be one per cent. per annum (the “Default Margin”) above the higher of:

 

(i)                                     the rate on the Overdue Amount under Clause 9.1 (Interest rate for all Advances) immediately before the due date (in the case of principal); and

 

(ii)                                  the rate which would have been payable under Clause 9.1 (Interest rate for all Advances) if the Overdue Amount had, during the period of non-payment, constituted a Revolving Credit Advance in the currency of the Overdue Amount for such successive Terms of such duration as the Agent may determine (each a “Designated Term”),

 

except that during any grace period specified in Clause 19.2 (Non-payment) the Default Margin portion of the Default Rate will only apply to overdue payments of principal.

 

(b)                                 The Default Rate will be determined on each Business Day or the first day of, or two Business Days before the first day of, the relevant Designated Term, as appropriate.

 

(c)                                  Default interest will be compounded at the end of each Designated Term.

 

(d)                                 The Agent shall notify Vodafone of the duration of each Designated Term.

 

9.6                               Notification of rates of interest

 

The Agent or, as the case may be, the Euro Swingline Agent will promptly notify each relevant Party of the determination of a rate of interest under this Agreement.

 

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9.7          Margin

 

(a)                                 The Margin applicable to each Advance will be the lowest percentage rate specified in Column 2 below which corresponds to the criteria in relation to the Long Term Credit Rating Assigned to Vodafone in Column 1 below by Moody’s, Fitch and/or S&P (as the case may be) (each a “Credit Rating Agency”) at the relevant time.

 

	
Column 1
    	
 
    	
Column 2
    	
 
    
	
Moody’s/Fitch/S&P ratings
    	
 
    	
Margin (per cent. per annum)
    	
 
    
	
Any two are   equal to or higher than: A1/A+/A+
    	
 
    	
0.175
    	
 
    
	
Any two are   equal to or higher than: A2/A/A
    	
 
    	
0.20
    	
 
    
	
Any two are   equal to or higher than: A3/A-/A-
    	
 
    	
0.225
    	
 
    
	
Otherwise
    	
 
    	
0.275
    	
 
    
	
All Quoting   Credit Rating Agencies are lower than: Baa1/BBB+/BBB+
    	
 
    	
0.325
    	
 
    

 

For the purposes of this Clause 9.7(a) “All Quoting Credit Rating Agencies” means at any time each Credit Rating Agency which has a Long Term Credit Rating Assigned to Vodafone at the relevant time

 

(b)                                 For the purposes of paragraph (a) above:

 

(i)                                     the Margin applicable to an Advance throughout the whole of its Term will be determined according to the Long Term Credit Rating Assigned to Vodafone as at the Drawdown Date of the Advance; and

 

(ii)                                  if on the Drawdown Date of any Advance only one Credit Rating Agency assigns a long term credit rating to Vodafone, the Margin applicable to that Advance will be determined in accordance with paragraph (i) by reference to such Long Term Credit Rating Assigned to Vodafone, or in the event that there is no Long Term Credit Rating Assigned to Vodafone the Margin applicable to that Advance will be 0.325 per cent. per annum.

 

In the case of Clause 9.7(b)(ii) above, where the ratings category will be determined by one Credit Rating Agency only, the words “Any two are” and “All Quoting Credit Rating Agencies” in Column 1 of the table above shall be construed as a reference to the rating determined pursuant to Clause 9.7(b)(ii) above.

 

(c)                                  Promptly upon becoming aware of the same, Vodafone shall inform the Agent in writing if any change in the Long Term Credit Rating Assigned to Vodafone occurs or the circumstances contemplated by paragraph 9.7(b)(ii) above arise.

 

(d)                                 For the purpose of this Clause 9.7 the “Long Term Credit Rating Assigned to Vodafone” means, at any time, the solicited long term credit rating assigned at that time to Vodafone by the relevant Credit Rating Agency (but, for the avoidance of doubt, disregarding any outlook or review action, including placing Vodafone on creditwatch or any similar or analogous step, taken by such Credit Rating Agency) where the rating is based primarily on the unsecured credit risk (not credit enhanced or collateralised) of Vodafone in a manner comparable to the credit structure of Vodafone’s €1,250,000,000 bond issue due January 2022 (the “Reference Bond”), or if the Reference Bond

 

41

 

ceases to be outstanding, such other outstanding series of listed bonds issued or guaranteed by Vodafone with a maturity date following and closest to January 2022. References in this paragraph (d) to Vodafone shall, following the Reorganisation Date, be references to NewTopco, provided that a long term credit rating has been assigned to NewTopco.

 

9.8                               Non-Business Days

 

If a Term would otherwise end on a day which is not a Business Day, that Term shall instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

 

9.9                               Cost of funds

 

(a)                                 If this Clause 9.9 applies, the rate of interest on the relevant Advance for the Required Period shall be the percentage rate per annum which is the sum of:

 

(i)                                     the Margin; and

 

(ii)                                  the weighted average of the rates notified to the Agent by each Lender as soon as practicable and in any event by close of business on the date falling 2 Business Days after the Rate Fixing Day (or, if earlier, on the date falling 5 Business Days before the date on which interest is due to be paid in respect of that Required Period), to be that which expresses as a percentage rate per annum the cost to the relevant Lender of funding its participation in that Advance from whatever source it may reasonably select.

 

(b)                                 If this Clause 9.9 applies and the Agent or Vodafone so requires, the Agent and Vodafone shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

 

(c)                                  Any alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and Vodafone, be binding on all Parties.

 

(d)                                 If this Clause 9.9 applies pursuant to Clause 12 (Market Disruption) and:

 

(i)                                     a Lender’s Funding Rate is less than EURIBOR or, in relation to any Advance in an Optional Currency, LIBOR; or

 

(ii)           a Lender does not supply a quotation by the time specified in paragraph (a)(ii) above,

 

the cost to that Lender of funding its participation in that Advance for that Required Period shall be deemed, for the purposes of paragraph (a) above, to be EURIBOR or, in relation to any Loan in an Optional Currency, LIBOR.

 

(e)                                  If this Clause 9.9 applies pursuant to Clause 9.3 (Unavailability of Screen Rate) but any Lender does not supply a quotation by the time specified in paragraph (a)(ii) above the rate of interest shall be calculated on the basis of the quotations of the remaining Lenders.

 

10.                               PAYMENTS

 

10.1                        Place of payment

 

All payments by an Obligor or a Lender under this Agreement shall be made to the Agent or (if the payment relates to the Swingline Facility) the Euro Swingline Agent to its account at such office or bank in the principal financial centre of the country of the relevant currency (or, in the case of euro,

 

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in the principal financial centre of a Participating Member State or London) or as it may notify to that Obligor or Lender for this purpose.

 

10.2                        Funds

 

Payments under this Agreement to the Agent or, as the case may be, the Euro Swingline Agent shall be made for value on the due date at such times and in such funds as the Agent or, as the case may be, the Euro Swingline Agent may specify to the Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment.

 

10.3                        Distribution

 

(a)                                 Each payment received by the Agent or, as the case may be, the Euro Swingline Agent under this Agreement for another Party shall, subject to paragraphs (b) and (c) below, be made available by the Agent or, as the case may be, the Euro Swingline Agent to that Party by payment (on the date of value of receipt and in the currency and funds of receipt) to its account with such bank in the principal financial centre of the country of the relevant currency (or, in the case of euro, in the principal financial centre of a Participating Member State or London) as it may notify to the Agent or, as the case may be, the Euro Swingline Agent for this purpose by not less than five Business Days’ prior notice.

 

(b)                                 The Agent or, as the case may be, the Euro Swingline Agent may apply any amount received by it for an Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from an Obligor under this Agreement in the same currency on such date or in or towards the purchase of any amount of any currency to be so applied.

 

(c)                                  Where a sum is to be paid under this Agreement to the Agent or, as the case may be, the Euro Swingline Agent for the account of another Party, the Agent or, as the case may be, the Euro Swingline Agent is not obliged to pay that sum to that Party until it has established that it has actually received that sum. The Agent or, as the case may be, the Euro Swingline Agent may, however, assume that the sum has been paid to it in accordance with this Agreement and, in reliance on that assumption, make available to that Party a corresponding amount. If the sum has not been made available but the Agent or, as the case may be, the Euro Swingline Agent has paid a corresponding amount to another Party, that Party shall forthwith on demand refund the corresponding amount to the Agent or, as the case may be, the Euro Swingline Agent together with interest on that amount from the date of payment to the date of receipt, calculated at a rate reasonably determined by the Agent or, as the case may be, the Euro Swingline Agent to reflect its cost of funds.

 

10.4                        Currency

 

(a)                                 (i)                                     A repayment or prepayment of an Advance is payable in the currency in which the Advance is denominated.

 

(ii)                                  Interest is payable in the currency in which the relevant amount in respect of which it is payable is denominated.

 

(iii)                               Amounts payable in respect of costs, expenses, taxes and the like are payable in the currency in which they are incurred.

 

(iv)                              Any other amount payable under this Agreement is, except as otherwise provided in this Agreement, payable in euro.

 

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(b)                                 Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

 

(i)                                     any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (acting reasonably and after consultation with Vodafone); and

 

(ii)                                  any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of the currency unit into the other, rounded up or down by the Agent (acting reasonably); and

 

(iii)                               if a change in any currency of a country occurs this Agreement will be amended to the extent the Agent and Vodafone agree (such agreement not to be unreasonably withheld) to be necessary to reflect the change in currency and to put the Lenders and the Obligors in the same position, as far as possible, that they would have been in if no change in currency had occurred.

 

10.5                        Set-off and counterclaim

 

Subject to Clause 29.4 (Set-off by Obligors), all payments made by an Obligor under this Agreement shall be made without set-off or counterclaim.

 

10.6                        Non-Business Days

 

(a)                                 If a payment under this Agreement is due on a day which is not a Business Day, the due date for that payment shall instead be the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

 

(b)                                 During any extension of the due date for payment of any principal under this Agreement interest is payable on the principal at the rate payable on the original due date.

 

10.7                        Impaired Agent or Euro Swingline Agent

 

(a)                                 If, at any time, the Agent or, as the case may be, the Euro Swingline Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent or Euro Swingline Agent in accordance with Clause 10 (Payments) may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents. In each case such payment must be made on the due date for payment under the Finance Documents.

 

(b)                                 All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements.

 

(c)                                  A party who has made a payment in accordance with this Clause 10.7 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

 

(d)                                 Promptly upon the appointment of a successor Agent or, as the case may be, successor Euro Swingline Agent, in accordance with Clause 20.15 (Resignation of the Agent or the Euro Swingline Agent), each Party which has made a payment to a trust account in accordance with this Clause 10.7

 

44

 

shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount) together with any accrued interest to the successor Agent or, as the case may be, the successor Euro Swingline Agent for distribution in accordance with Clause 10.3 (Distribution).

 

10.8                        Partial payments

 

(a)                                 If the Agent or, as the case may be, the Euro Swingline Agent receives a payment insufficient to discharge all the amounts then due and payable by an Obligor under this Agreement, the Agent or, as the case may be, the Euro Swingline Agent shall apply that payment towards the obligations of the Obligors under this Agreement in the following order:

 

(i)                                     first, in or towards payment pro rata of any unpaid costs, fees and expenses of the Agent and the Euro Swingline Agent under this Agreement;

 

(ii)                                  secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 21 (Fees);

 

(iii)                               thirdly, in or towards payment pro rata of any interest due but unpaid under this Agreement;

 

(iv)                              fourthly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and

 

(v)                                 fifthly, in or towards payment pro rata of any other sum due but unpaid under this Agreement.

 

(b)                                 The Agent or, as the case may be, the Euro Swingline Agent, shall, if so directed by all the Lenders, vary the order set out in sub-paragraphs (a)(ii) to (v) above. The Agent or, as the case may be, the Euro Swingline Agent, shall notify Vodafone of any such variation.

 

(c)                                  Paragraphs (a) and (b) above shall override any appropriation made by any Obligor.

 

11.                               TAXES

 

11.1                        Gross-up

 

All payments by an Obligor to a Finance Party under the Finance Documents shall be made free and clear of and without deduction for or on account of any Relevant Taxes, except to the extent that the Obligor is required by law to make payment subject to any such taxes. Subject to Clause 11.4 (Qualifying Lenders) and Clause 11.5 (U.S. Taxes), if any Relevant Tax or amounts in respect of Relevant Tax are deducted or withheld from any amounts payable or paid by an Obligor, to a Finance Party under the Finance Documents (in each case, other than a FATCA Deduction), the Obligor shall pay such additional amounts as may be necessary to ensure that the relevant Finance Party receives a net amount equal to the full amount which it would have received had that Relevant Tax or those amounts in respect of Relevant Tax not been so deducted or withheld.

 

11.2                        Indemnity

 

Save to the extent that the relevant Finance Party is compensated by an increased payment under Clause 11.1 (Gross-up), but otherwise without prejudice to the provisions of Clause 11.1 (Gross-up), but subject to Clause 11.4 (Qualifying Lenders) and Clause 11.5 (U.S. Taxes), if a Finance Party or the Agent (or, as the case may be, the Euro Swingline Agent) on behalf of that Finance Party is required to make any payment on account of any Relevant Tax on or in relation to any sum received or receivable hereunder by such Finance Party or the Agent (or, as the case may be, the Euro Swingline Agent) on behalf of that Finance Party (including a sum received or receivable under this

 

45

 

Clause 11) or any liability in respect of any such payment on account of any Relevant Tax is incurred by such Finance Party or the Agent (or, as the case may be, the Euro Swingline Agent) on behalf of that Finance Party (in all cases other than any Tax on Overall Net Income or any FATCA Deduction), the relevant Obligor shall, within five Business Days of demand by the Agent (or, as the case may be, the Euro Swingline Agent) indemnify such Finance Party against such payment or liability in respect of such payment, together with any interest, penalties, reasonable costs and reasonable expenses payable or incurred in connection therewith other than any such interest, penalties, costs or expenses arising as a result of a failure by a Finance Party to make payment of such tax when due.

 

11.3                        Tax receipts

 

All taxes required by law to be deducted or withheld by an Obligor from any amounts paid or payable under the Finance Documents shall be paid by the relevant Obligor when due and the Obligor shall, within 15 days of the payment being made, deliver to the Agent for the relevant Lender evidence satisfactory to that Lender acting reasonably (including any relevant tax receipts which have been received) that the payment has been duly remitted to the appropriate authority.

 

11.4                        Qualifying Lenders

 

(a)                                 An Obligor is not required to pay to a Lender any amounts under Clause 11.1 (Gross-up) or Clause 11.2 (Indemnity) in respect of Relevant Tax imposed by the United Kingdom if, on the date on which the payment falls due, the relevant Lender is a Party but is not a Qualifying Lender (other than as a result of the introduction, suspension, withdrawal or cancellation of, or change in, or change in the official interpretation, administration or official application of, any law, regulation having the force of law, tax treaty or any published practice or published concession of any relevant taxing authority in any jurisdiction with which the relevant Lender has a connection, occurring after the Effective Date or, if later, the date on which that Lender becomes a Party).

 

(b)                                 A Treaty Lender shall:

 

(i)                                     promptly and, in any event, within seven Business Days after it becomes a Lender, deliver to its local revenue authority for certification such UK HMRC forms (“Claim Forms”) as may be required for any Obligor making a payment to such Treaty Lender to obtain authorisation from the UK HMRC to make such payment without deduction for or on account of any taxes;

 

(ii)                                  in circumstances where the procedure for Treaty relief contemplated in paragraph (i) above requires a local revenue authority to return a certified Claim Form to the Treaty Lender for submission by that Treaty Lender to the UK HMRC, (a) take all reasonable follow up action available to the Treaty Lender to facilitate the return in a timely manner to the Treaty Lender of such Claim Form, duly stamped or certified by the relevant revenue authority and (b) submit such Claim Form to the UK HMRC as soon as reasonably practicable (and in any event within seven Business Days) after receipt of that Claim Form from the local revenue authority; and

 

(iii)                               in all other circumstances relating to the Treaty relief procedure contemplated in (i) above, following the submission of Claim Forms by the Treaty Lender to the relevant local revenue authority, respond promptly to any further requests any Treaty Lender receives from the relevant local revenue authority and, on receipt of written request from Vodafone to do so, take all reasonable follow up action to facilitate the submission by the relevant local revenue authority of duly stamped or certified Claim Forms to the UK HMRC in a timely manner.

 

46

 

If there is any change in the procedure by which certification is to be made or to be notified to the UK HMRC, the Treaty Lender’s obligations shall be modified in such manner as the Treaty Lender may reasonably determine so that such amended obligations shall, as far as possible, have the same or equivalent effect as the original obligations. No Obligor resident in the UK shall be liable to pay any sums to any Treaty Lender under Clause 11.1 (Gross-up) or Clause 11.2 (Indemnity) unless the Treaty Lender has complied with its obligations under this Clause 11.4(b).

 

(c)                                  Subject to paragraph (d) below, each Lender warrants to Vodafone, on each date upon which it makes an Advance and on the due date for each payment of interest to the Lender:

 

(i)                                     that it is a Qualifying Lender; and

 

(ii)                                  if it is a Treaty Lender, it has delivered (or will deliver within the time limits specified herein) the forms described in paragraph (b) above.

 

(d)                                 If a Lender or, as the case may be, the Facility Office of a Lender is aware that it is or will become unable to make the warranty set out in paragraph (c) above of this Clause 11.4 it will promptly notify the Agent and Vodafone. Notwithstanding such notification to Vodafone, the Agent will promptly notify Vodafone and from the date of the first such notification received by Vodafone the warranty in paragraph (c) above will no longer be made by that Lender.

 

11.5                        U.S. Taxes

 

(a)                                 A U.S. Tax Obligor shall not be required to pay any amount pursuant to Clause 11.1 (Gross-up) or any amount pursuant to Clause 11.2 (Indemnity) in respect of Relevant Tax imposed by the United States (including, without limitation, federal, state, local or other income taxes, branch profits or franchise taxes “U.S. Taxes”) with respect to a sum payable by it pursuant to this Agreement to a Lender if on the date a payment of interest falls due under this Agreement either:

 

(i)                                     in the case of a Lender which is not a United States person (as such term is defined in Section 7701(a)(30) of the Code), such Lender is not entitled to receive interest payable under this Agreement free and clear of any U.S. Taxes imposed by way of deduction or withholding at the source under applicable law as in effect on the date such Lender becomes a party to this Agreement or, if such Lender has designated a new Facility Office, the date of such designation; or

 

(ii)                                  such Lender has failed to provide the relevant U.S. Tax Obligor with the appropriate form, certificate or other information with respect to such sum payable that it was required to provide pursuant to paragraphs (b) and (c) below; or

 

(iii)                               such Lender is subject to such tax by reason of any connection between the Lender or its Facility Office and the jurisdiction imposing such tax on the Lender or its Facility Office other than a connection arising solely from this Agreement or any transaction contemplated hereby.

 

(b)                                 At any time after a U.S. Tax Obligor becomes (and while there continues to be a U.S. Tax Obligor) a Party to this Agreement, if a Lender is not a United States person (as such term is defined in Section 7701(a)(30) of the Code) it shall submit, as soon as reasonably practicable after:

 

(i)                                     the date on which the U.S. Tax Obligor becomes a Party to this Agreement (if requested by the relevant U.S. Tax Obligor);

 

(ii)                                  the date on which the relevant Lender becomes a Party to this Agreement; or

 

47

 

(iii)                               the date on which the relevant Lender designates a new Facility Office,

 

(but, in each case, no later than the due date for the next interest payment), in duplicate to each U.S. Tax Obligor duly completed and signed originals of either United States Internal Revenue Service Form W-8BEN or Form W-8ECI or applicable successor form relating to such Lender and evidencing such Lender’s complete exemption from withholding on all amounts (to which such withholding would otherwise apply) to be received by such Lender, including fees, pursuant to this Agreement in connection with any borrowing by a U.S. Tax Obligor. Thereafter such Lender shall submit to each U.S. Tax Obligor such additional duly completed and signed originals of one or the other such forms (or such successor forms as shall be adopted from time to time by the relevant United States taxation authorities) or any additional information, in each case as may be required under then current United States law or regulations to claim the inapplicability of or exemption from United States withholding taxes on payments in respect of all amounts (to which such withholding would otherwise apply) to be received by such Lender, including fees, pursuant to this Agreement in connection with any borrowing by a U.S. Tax Obligor unless such Lender is unable to do so as a result of a change in, the introduction of, suspension, withdrawal or cancellation of, or change in the official interpretation, administration or official application of, the Code or any regulation promulgated thereunder or of a convention or agreement for the avoidance of double taxation and the prevention of fiscal evasion between the government of the United States of America and the jurisdiction in which the relevant Lender has a connection, occurring after the date the Lender becomes a Party to this Agreement or, if such Lender has designated a new Facility Office, the date of such designation.

 

(c)                                  At any time after a U.S. Tax Obligor becomes (and while there continues to be a U.S. Tax Obligor) a Party to this Agreement, if a Lender is a United States person (as such term is defined in Section 7701(a)(30) of the Code) it shall, as soon as practicable after:

 

(i)                                     the date on which the U.S. Tax Obligor becomes a Party to this Agreement (if requested by the relevant U.S. Tax Obligor);

 

(ii)                                  the date on which the relevant Lender becomes a Party to this Agreement; or

 

(iii)                               the date on which the relevant Lender designates a new Facility Office,

 

(but, in each case, no later than the due date for the next interest payment), and thereafter, on or before the date that any such form expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent form or forms to be delivered, submit in duplicate to each U.S. Tax Obligor a duly completed and signed United States Internal Revenue form W-9 evidencing that such Lender is such a United States person and shall submit any additional information that may be necessary to avoid United States withholding taxes on all payments, including fees, (to which such withholding would otherwise apply) to be received pursuant to this Agreement in connection with any borrowing by a U.S. Tax Obligor.

 

11.6                        Refund of Tax Credits

 

If any Obligor pays any amount to a Finance Party under this Clause 11 (a “Tax Payment”) and that Finance Party obtains a refund of a tax, or a credit against tax by reason of either the circumstances giving rise to the Obligor’s obligation to make the Tax Payment or that Tax Payment (a “Tax Credit”) then that Finance Party shall reimburse that Obligor such amount, which that Finance Party determines in good faith, as can be determined to be the proportion of the Tax Credit as will leave that Finance Party (after that reimbursement) in no better or worse position than it would have been in if the Tax Payment had not been paid. Nothing in this Clause 11 shall interfere with the right of each Finance Party to arrange its affairs in whatever manner it thinks fit and no Finance Party is

 

48

 

obliged to disclose any information regarding its tax affairs or computations to an Obligor which it reasonably considers confidential.

 

11.7                        FATCA Information

 

(a)                                 Subject to paragraph (c) below, each Party must, within ten Business Days of a reasonable request by another Party:

 

(i)                                     confirm to that other Party whether it is:

 

(A)                               a FATCA Exempt Party; or

 

(B)                               not a FATCA Exempt Party; and

 

(ii)                                  supply to that other Party such forms, documentation and other information relating to its status under FATCA (including its applicable “passthru payment percentage” or other information required under relevant US Treasury regulations or other official guidance including intergovernmental agreements) as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA.

 

(b)                                 If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that Party must notify that other Party reasonably promptly.

 

(c)                                  A Finance Party is not obliged to do anything under paragraph (a) above which would or might in its reasonable opinion constitute a breach of:

 

(i)                                     any law or regulation;

 

(ii)                                  any fiduciary duty; or

 

(iii)                               any duty of confidentiality.

 

(d)                                 If a Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with paragraph (a) above (including, for the avoidance of doubt, where paragraph (c) above applies), then if that Party failed to confirm whether it is (or remains) a FATCA Exempt Party then such Party is to be treated for the purposes of the Finance Documents (and payments made under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

 

(e)                                  If a Borrower is a U.S. Tax Obligor, or where the Agent or, as the case may be, the Euro Swingline Agent, reasonably believes that its obligations under FATCA require it, each Lender shall, within ten Business Days of:

 

(i)                                     where a Borrower is a U.S. Tax Obligor and the relevant Lender is an Original Lender, the Signing Date;

 

(ii)                                  where a Borrower is a U.S. Tax Obligor and the relevant Lender is a New Lender, the relevant transfer date;

 

(iii)                               the date a new U.S. Tax Obligor accedes as a Borrower; or

 

(iv)                              where the Borrower is not a U.S. Tax Obligor, the date of a request from the Agent or, as the case may be, the Euro Swingline Agent,

 

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supply to the Agent or, as the case may be, the Euro Swingline Agent:

 

(A)                               a withholding certificate on Form W-8 or Form W-9 (or any successor form) (as applicable); or

 

(B)                               any withholding statement and other documentation, authorisations and waivers as the Agent or, as the case may be, the Euro Swingline Agent, may require to certify or establish the status of such Lender under FATCA.

 

The Agent shall provide any withholding certificate, withholding statement, documentation, authorisations and waivers it receives from a Lender pursuant to this paragraph (e) to the Borrower and shall be entitled to rely on any such withholding certificate, withholding statement, documentation, authorisations and waivers provided without further verification. The Agent or, as the case may be, the Euro Swingline Agent, shall not be liable for any action taken by it under or in connection with this paragraph (e).

 

(f)                                   Each Lender agrees that if any withholding certificate, withholding statement, documentation, authorisations and waivers provided to the Agent, or, as the case may be, the Euro Swingline Agent, pursuant to paragraph (e) above is or becomes materially inaccurate or incomplete, it shall promptly update such withholding certificate, withholding statement, documentation, authorisations and waivers or promptly notify the Agent, or, as the case may be, the Euro Swingline Agent, in writing of its legal inability to do so. The Agent, or, as the case may be, the Euro Swingline Agent, shall provide any such updated withholding certificate, withholding statement, documentation, authorisations and waivers or a copy of any such notification to the Borrower. The Agent or, as the case may be, the Euro Swingline Agent, shall not be liable for any action taken by it under or in connection with this paragraph (f).

 

11.8                        FATCA Deduction

 

(a)                                 Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party is required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

(b)                                 Each Party must, promptly upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment and, in addition, must notify Vodafone, the Agent or, as the case may be, the Euro Swingline Agent, and the other Finance Parties.

 

12.                               MARKET DISRUPTION

 

12.1                        Market disturbance

 

Notwithstanding anything to the contrary herein contained, if and each time that prior to or on a Drawdown Date relative to an Advance (other than, in the case of paragraphs (a)(ii) or (b) below, a Swingline Advance) to be made:

 

(a)                                 the Agent is notified by Lenders whose participations in that Advance would represent 50 per cent. or more of that Advance that (i) deposits in the currency of that Advance may not in the ordinary course of business be available to them in the Relevant Interbank Market for a period equal to the Term concerned in amounts sufficient to fund their participations in that Advance or (ii) the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of EURIBOR or LIBOR; or

 

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(b)                                 the Agent shall have determined (which determination shall be conclusive and binding upon all Parties) that by reason of circumstances affecting the Relevant Interbank Market generally, adequate and fair means do not exist for ascertaining the EURIBOR or LIBOR (as the case may be) applicable to such Advance during its Term,

 

the Agent shall promptly give written notice of such determination or notification to Vodafone and to each of the Lenders.

 

12.2                        Alternative rates

 

If the Agent gives a notice under Clause 12.1 (Market disturbance):

 

(a)                                 Vodafone and the Lenders whose participations in the relevant Advance would represent 50 per cent. or more of that Advance may (through the Agent) agree that (except in the case of a Rollover Advance) that Advance shall not be borrowed; or

 

(b)                                 in the absence of such agreement by the Drawdown Date specified in the relevant Request (and in any event in the case of a Rollover Advance):

 

(i)                                     the Term of the relevant Advance shall be one month;

 

(ii)                                  the Advance shall be made in the currency requested or, in the case of Clause 12.1(a)(i) (Market disturbance), in euro (or, if the currency requested for the relevant Advance is euro, U.S. Dollars); and

 

(iii)                               during the Term of the relevant Advance the rate of interest applicable to such Advance shall be the Margin plus the rate per annum notified by each Lender concerned to the Agent before the last day of such Term to be that which expresses as a percentage rate per annum the cost to such Lender of funding its participation in such Advance from whatever sources it may reasonably select.

 

13.                               INCREASED COSTS

 

13.1                        Increased costs

 

(a)                                 Except as provided below in this Clause 13, Vodafone will forthwith on demand by a Finance Party pay that Finance Party the amount of any increased cost incurred by it or any of its Affiliates as a result of:

 

(i)                                     the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation (including any relating to reserve asset, special deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control);

 

(ii)                                  the compliance with any law or regulation made after the Effective Date; or

 

(iii)                               without prejudice to the generality of the foregoing, the implementation or application of or compliance with Basel III or CRD IV or any other law or regulation which implements Basel III or CRD IV (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates).

 

(b)                                 Subject to Clause 13.3 (Basel III Cost claims), promptly following the service of any demand, Vodafone will pay to that Finance Party such amount as that Finance Party certifies in the demand (with sufficient details for the calculations to be verified) will in its reasonable opinion compensate it

 

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for the applicable increased cost and in relation to the period expressed to be covered by such demand.

 

(c)                                  When calculating an increased cost, a Finance Party will only apply the costs incurred in relation to the Facilities. Nothing contained in this Clause 13.1 shall oblige the Finance Party to disclose any information (other than information which is readily available in the public domain or which is not in the reasonable opinion of the Finance Party confidential) relating to the way in which it employs its capital or arranges its internal financial affairs.

 

(d)                                 In this Agreement “increased cost” means:

 

(i)                                     an additional cost incurred by a Finance Party or any of its Holding Companies as a result of it performing, maintaining or funding its obligations under, this Agreement; or

 

(ii)                                  that portion of an additional cost incurred by a Finance Party or any of its Holding Companies in making, funding or maintaining all or any advances comprised in a class of advances formed by or including its participations in the Advances made or to be made under this Agreement as is attributable to it making, funding or maintaining its participations; or

 

(iii)                               a reduction in any amount payable to a Finance Party or the effective return to a Finance Party under this Agreement or on its capital (or the capital of any of its Holding Companies); or

 

(iv)                              the amount of any payment made by a Finance Party, or the amount of interest or other return foregone by a Finance Party, calculated by reference to any amount received or receivable by a Finance Party from any other Party under this Agreement.

 

13.2                        Exceptions

 

Clause 13.1 (Increased costs) does not apply to any increased cost:

 

(a)                                 attributable to any tax or amounts in respect of tax; or

 

(b)                                 occurring as a result of any negligence or default by a Lender or its Holding Company relating to a breach of any law or regulation including but not limited to a breach by that Lender or Holding Company of any fiscal, monetary or capital adequacy limit imposed on it by any law or regulation; or

 

(c)                                  to the extent that the increased cost was incurred in respect of any day more than six months before the first date on which it was reasonably practicable to notify Vodafone thereof (except in the case of any retrospective change); or

 

(d)                                 attributable to the implementation or application of or compliance with the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the Effective Date (“Basel II”) or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates). For the avoidance of doubt, the foregoing shall not include any amendments, supplements, restatements or changes to Basel II to implement Basel III; or

 

(e)                                  attributable to a FATCA Deduction required to be made by a Party.

 

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13.3                        Basel III Cost claims

 

(a)                                 Vodafone need not make any payment for a Basel III Cost, except to the extent that the Basel III Cost is attributable to an amount of an Advance(s) which has been drawn at any time by an Obligor under this Agreement.

 

(b)                                 Without limiting Clause 13.2 (Exceptions) Vodafone need not make any payment for a Basel III Cost unless the claiming Finance Party:

 

(i)                                     provides reasonable detail of the basis of calculation of such Basel III Costs provided that this obligation to provide reasonable detail does not extend to information and detail that a Finance Party considers it is not legally allowed to disclose, is confidential to third parties, is confidential for internal reasons or is price-sensitive in relation to listed shares or other instruments issued by that Finance Party or any of its Affiliates;

 

(ii)                                  confirms to Vodafone that it is the Finance Party’s policy to claim Basel III Costs to a similar extent from similar borrowers in relation to similar facilities; and

 

(iii)                               confirms to Vodafone that it is making a claim for those Basel III Costs within three months of incurring them.

 

(c)                                  If any claim by any Finance Party is made under this Clause 13 (Increased Costs) in respect of Basel III Costs, that Finance Party and Vodafone shall enter into discussions (for a period not exceeding 15 Business Days) as to the basis for such claim and whether it is reasonable for Vodafone to pay such claim in the circumstances.

 

(d)                                 If no agreement is reached in respect of the payment of such claim within 15 Business Days of the claim being made, the relevant Finance Party may, within 15 Business Days after the end of such period and by ten Business Days’ prior notice to Vodafone:

 

(i)                                     cancel its Commitments with immediate effect; and

 

(ii)                                  demand the prepayment of its share of all Advances then outstanding together with accrued interest thereon and all other amounts accrued under the Finance Documents.

 

(e)                                  On the expiry of the ten Business Days’ notice period referred to in paragraph (d) above, Vodafone (or, if applicable, the relevant Borrower) shall pay to the Agent for that Finance Party:

 

(i)                                     the participations of that Lender in all outstanding Advances together with accrued interest;

 

(ii)                                  the increased costs originally claimed by that Lender and the increased costs continuing to be incurred by it for the period until payment by Vodafone in full under this Clause 13.3 (Basel III Cost claims);

 

(iii)                               any amounts payable pursuant to Clause 24.3 (Breakage costs); and

 

(iv)                              all amounts owing to that Finance Party under the Finance Documents.

 

14.                               ILLEGALITY AND MITIGATION

 

14.1                        Illegality

 

If it becomes unlawful in any jurisdiction for a Lender to give effect to any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Advance, then the

 

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Lender may notify Vodafone through the Agent accordingly and thereupon, but only to the extent necessary to remove the illegality:

 

(a)                                 each Borrower shall, upon request from that Lender within the period allowed or if no period is allowed, forthwith, repay any participation of that Lender in the Advances made to it together with all other amounts payable by it to that Lender under this Agreement; and

 

(b)                                 the Lender’s Commitments shall be cancelled immediately.

 

14.2                        Mitigation

 

Notwithstanding the provisions of Clauses 9.1 (Interest rate for all Advances), 11 (Taxes), 13 (Increased Costs) and 14.1 (Illegality), if in relation to a Finance Party circumstances arise which would result in:

 

(a)                                 any deduction, withholding or payment of the nature referred to in Clause 11 (Taxes); or

 

(b)                                 any increased cost of the nature referred to in Clause 13 (Increased Costs); or

 

(c)                                  a notification pursuant to Clause 14.1 (Illegality),

 

then without in any way limiting, reducing or otherwise qualifying the rights of such Finance Party or the Agent, such Finance Party shall promptly upon becoming aware of the same notify the Agent thereof (whereupon the Agent shall promptly notify Vodafone) and such Finance Party shall use reasonable endeavours to transfer its participation in the Facility and its rights hereunder and under the Finance Documents to another financial institution or Facility Office not affected by circumstances having the results set out in paragraphs (a), (b) or (c) above and shall otherwise take such reasonable steps as may be open to it to mitigate the effects of such circumstances provided that such Finance Party shall not be under any obligation to take any such action if, in its opinion, to do so would or would be likely to have a material adverse effect upon its business, operations or financial condition or would involve it in any unlawful activity or any activity that is contrary to its policies or any request, guidance or directive of any competent authority (whether or not having the force of law) or (unless indemnified to its satisfaction) would involve it in any significant expense or tax disadvantage.

 

15.                               GUARANTEE

 

15.1                        Guarantee

 

Each Guarantor jointly and severally, irrevocably and unconditionally:

 

(a)                                 as principal obligor, guarantees to each Finance Party that if and whenever:

 

(i)                                     an amount is due and payable by a Borrower under or in connection with any Finance Document; and

 

(ii)                                  demand for payment of that amount has been made by the Agent on that Borrower,

 

that Guarantor will forthwith on demand by the Agent pay that amount as if that Guarantor instead of that Borrower were expressed to be the principal obligor; and

 

(b)                                 indemnifies each Finance Party on demand against any loss or liability suffered by it if any obligation guaranteed by any Guarantor is or becomes unenforceable, invalid or illegal (the

 

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amount of that loss being the amount expressed to be payable by the relevant Borrower in respect of the relevant sum).

 

15.2                        Continuing guarantee

 

This guarantee is a continuing guarantee and will extend to the ultimate balance of all sums payable by the Borrowers under the Finance Documents, regardless of any intermediate payment or discharge in part.

 

15.3                        Reinstatement

 

(a)                                 Where any discharge (whether in respect of the obligations of any Borrower or any security for those obligations or otherwise) is made in whole or in part or any arrangement is made on the faith of any payment, security or other disposition which is avoided or must be restored on insolvency, liquidation or otherwise without limitation, the liability of the Guarantors under this Clause 15 shall continue as if the discharge or arrangement had not occurred (but only to the extent that such payment, security or other disposition is avoided or restored).

 

(b)                                 Each Finance Party may concede or compromise any claim that any payment, security or other disposition is liable to avoidance or restoration.

 

15.4                        Waiver of defences

 

The obligations of each Guarantor under this Clause 15 will not be affected by any act, omission, matter or thing which, but for this provision, would reduce, release or prejudice any of its obligations under this Clause 15 or prejudice or diminish those obligations in whole or in part, including (whether or not known to it or any Finance Party):

 

(a)                                 any time or waiver granted to, or composition with, any Borrower or other person;

 

(b)                                 the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Consolidated Group;

 

(c)                                  the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

 

(d)                                 any incapacity or lack of powers, authority or legal personality of or dissolution or change in the members or status of a Borrower or any other person;

 

(e)                                  any variation (however fundamental) or replacement of a Finance Document so that references to that Finance Document in this Clause 15 shall include each variation or replacement;

 

(f)                                   any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document, to the intent that the Guarantors’ obligations under this Clause 15 shall remain in full force and its guarantee be construed accordingly, as if there were no unenforceability, illegality or invalidity; and

 

(g)                                  any postponement, discharge, reduction, non-provability or other similar circumstance affecting any obligation of any Borrower under a Finance Document resulting from any insolvency, liquidation or dissolution proceedings or from any law, regulation or order so

 

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that each such obligation shall, for the purposes of the Guarantors’ obligations under this Clause 15, be construed as if there were no such circumstance.

 

15.5                        Immediate recourse

 

Except as provided in Clause 15.1(a)(ii) (Guarantee), each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 15.

 

15.6                        Appropriations

 

Until all amounts which may be or become payable by the Borrowers under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:

 

(a)                                 refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and

 

(b)                                 hold in a suspense account (bearing interest at a commercial rate) any moneys received from any Guarantor or on account of that Guarantor’s liability under this Clause 15, with any interest earned being credited to that account.

 

15.7                        Non-competition

 

Until all amounts which may be or become payable by the Borrowers under or in connection with the Finance Documents have been paid in full, no Guarantor shall, after a claim has been made or by virtue of any payment or performance by it under this Clause 15:

 

(a)                                 be subrogated to any rights, security or moneys held, received or receivable by any Finance Party (or any trustee or agent on its behalf) or be entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of that Guarantor’s liability under this Clause 15; or

 

(b)                                 claim, rank, prove or vote as a creditor of any Borrower or its estate in competition with any Finance Party (or any trustee or agent on its behalf); or

 

(c)                                  receive, claim or have the benefit of any payment, distribution or security from or on account of any Borrower, or exercise any right of set-off as against any Borrower.

 

Each Guarantor shall hold in trust for and forthwith pay or transfer to the Agent for the Finance Parties any payment or distribution or benefit of security received by it contrary to this Clause 15.7.

 

15.8                        Additional security

 

This guarantee is in addition to and is not in any way prejudiced by any other security now or hereafter held by any Finance Party.

 

15.9                        Removal of Guarantors

 

(a)                                 Any Guarantor (other than, Vodafone (subject to paragraph (b) below) and, following the Reorganisation Date, NewTopco and any Intermediate Holding Company (subject to paragraph (c)

 

56

 

below) of Vodafone) which is not a Borrower, may, at the request of Vodafone and if no Default is continuing, cease to be a Guarantor by entering into a supplemental agreement to this Agreement at the cost of Vodafone in such form as the Agent may reasonably require which shall discharge that Guarantor’s obligations as a Guarantor under this Agreement.

 

(b)                                 If on the Reorganisation Date, NewTopco or any Intermediate Holding Company have acceded as Guarantors in accordance with Clause 27.7 (Additional Guarantors) and no Default is continuing or would result from Vodafone’s resignation as a Guarantor, Vodafone may cease to be a Guarantor with effect from the Reorganisation Date by entering into a supplemental agreement to this Agreement at the cost of Vodafone or NewTopco in such form as the Agent may reasonably require which shall discharge Vodafone’s obligations as a Guarantor under this Agreement.

 

(c)                                  If NewTopco has acceded as a Guarantor in accordance with Clause 27.7 (Additional Guarantors) and no Default is continuing or would result from Intermediate Holding Company’s resignation as a Guarantor, Intermediate Holding Company may cease to be a Guarantor by entering into a supplemental agreement to this Agreement at the cost of Vodafone or NewTopco in such form as the Agent may reasonably require which shall discharge Intermediate Holding Company’s obligation as a Guarantor under this Agreement.

 

(d)                                 Any Party retiring as a Guarantor in accordance with paragraphs (a), (b) or (c) above (a “Retiring Guarantor”) for the purpose of any sale or other disposal of that Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

 

(i)                                     that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Finance Documents; and

 

(ii)                                  each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Finance Documents to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Finance Document or of any other security taken pursuant to, or in connection with, any Finance Document where such rights or security are granted by or in relation to the assets of the Retiring Guarantor.

 

15.10                 Limitation on guarantee of U.S. Guarantors

 

Notwithstanding any other provision of this Clause 15, the obligations of each Guarantor incorporated in the United States (other than NewTopco and any Intermediate Holding Company, to the extent incorporated in the United States) (a “U.S. Guarantor”) under this Clause 15 shall be limited to a maximum aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Bankruptcy Code or any applicable provisions of comparable state law (collectively, the “Fraudulent Transfer Laws”), in each case after giving effect to all other liabilities of such U.S. Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such U.S. Guarantor in respect of intercompany indebtedness to the Borrowers or Affiliates of the Borrowers to the extent that such indebtedness would be discharged in an amount equal to the amount paid by such U.S. Guarantor hereunder) and after giving effect as assets to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, contribution, reimbursement, indemnity or similar rights of such U.S. Guarantor pursuant to (a) applicable law or (b) any agreement providing for an equitable allocation among such U.S. Guarantor and other Affiliates of the Borrowers of obligations arising under guarantees by such parties.

 

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16.                               REPRESENTATIONS AND WARRANTIES

 

16.1                        Representations and warranties

 

Each Obligor makes the representations and warranties set out in this Clause 16 to each Finance Party (in respect of itself and where relevant its Controlled Subsidiaries only).

 

16.2                        Status

 

(a)                                 It is a duly incorporated and validly existing corporation under the laws of the jurisdiction of its incorporation.

 

(b)                                 Except to the extent specified in the applicable Borrower Accession Agreement or Guarantor Accession Agreement, each Obligor is classified as a corporation for U.S. federal income tax purposes.

 

16.3                        Powers and authority

 

It has the power to:

 

(a)                                 enter into and comply with, all obligations expressed on its part under the Finance Documents;

 

(b)                                 (in the case of a Borrower) to borrow under this Agreement; and

 

(c)                                  (in the case of a Guarantor) to give the guarantee in Clause 15 (Guarantee),

 

and has taken all necessary actions to authorise the execution, delivery and performance of the Finance Documents.

 

16.4                        Non-violation

 

The execution, delivery and performance of the Finance Documents will not violate:

 

(a)                                 any provisions of any existing law or regulation or statute applicable to it; or

 

(b)                                 to any material extent, any provisions of any mortgage, contract or other undertaking to which it or any of its Controlled Subsidiaries which is a member of the Restricted Group is a party or which is binding upon it or any of its Controlled Subsidiaries which is a member of the Restricted Group, the consequences of which would have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their material obligations under the Finance Documents.

 

16.5                        Borrowing limits

 

Borrowings under this Agreement up to and including the maximum amount available under this Agreement, together with borrowings under the USD Facility up to and including the maximum amount available under the USD Facility, will not cause any limit (except to the extent the limit has been waived) on borrowings or, as the case may be, on the giving of guarantees (whether imposed in its Articles of Association or otherwise), or on the powers of its board of directors, applicable to it to be exceeded.

 

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16.6                        Authorisations

 

All necessary consents or authorisations of any governmental authority or agency required by it in connection with the execution, validity, performance or enforceability of the Finance Documents have been obtained and are validly existing.

 

16.7                        No default

 

Neither it nor any of its Controlled Subsidiaries which is a member of the Restricted Group is in default under any law or agreement by which it is bound the consequences of which would have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their payment obligations under the Finance Documents.

 

16.8                        Accounts

 

The audited consolidated financial statements of Vodafone (or, following a Hive Up, NewTopco) most recently delivered to the Agent (which, at the date of the Amendment and Restatement Agreement are the audited consolidated accounts of Vodafone for the year ended 31 March 2017):

 

(a)                                 give a true and fair view of the consolidated financial position of Vodafone (or, following a Hive Up, NewTopco) as at the date to which they were drawn up; and

 

(b)                                 have been prepared in accordance with generally accepted accounting principles applied by Vodafone (or, following a Hive Up, NewTopco) at such time, consistently applied except for changes disclosed in such financial statements which are necessary to reflect a change in generally accepted accounting principles or the adoption of international finance reporting standards.

 

16.9                        No Event of Default

 

No Event of Default has occurred and is continuing in respect of it or any of its Subsidiaries which is a member of the Restricted Group.

 

16.10                 Investment Company

 

Each Borrower which is a U.S. Obligor either (i) is not an investment company as defined under United States Investment Company Act of 1940, as amended, or (ii) is exempt from the registration provisions of the Act pursuant to an exemption under that Act.

 

16.11                 ERISA

 

(a)                                 Each member of the Controlled USA Group has fulfilled its obligations under the minimum funding standards of ERISA and the Code with respect to each Plan maintained by such member or any member of the Controlled USA Group where non-fulfilment of such obligations would have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their payment obligations under the Finance Documents.

 

(b)                                 Each Obligor is in compliance with the applicable provisions of ERISA, the Code and any other applicable United States Federal or State law with respect to each Plan maintained by such Obligor where non-fulfilment of or non-compliance with such provisions would have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their payment obligations under the Finance Documents.

 

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(c)                                  No Reportable Event has occurred with respect to any Plan maintained by an Obligor or any member of the Controlled USA Group and no steps have been taken to reorganise or terminate any Single Employer Plan or by that Obligor to effect a complete or partial withdrawal from any Multi-employer Plan where non-compliance or such Reportable Event, reorganisation, termination or withdrawal would have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their payment obligations under the Finance Documents.

 

(d)                                 No member of the Controlled USA Group has:

 

(i)                                     sought a waiver of the minimum funding standard under Section 412 of the Code in respect of any Plan; or

 

(ii)                                  failed to make any contribution or payment to any Single Employer Plan or Multi-employer Plan, or made any amendment to any Plan, and no other event, transaction or condition has occurred which has resulted or would result in the imposition of a lien or the posting of a bond or other security under ERISA or the Code; or

 

(iii)                               incurred any material, actual liability under Title I or Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA,

 

if such seeking, failure or incurrence would have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their payment obligations under the Finance Documents.

 

16.12                 Anti-Terrorism Laws

 

(a)                                 In this Clause,

 

“Anti-Terrorism Law” means each of:

 

(i)                                     Executive Order No. 13224 on Terrorist Financing: Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism issued September 23, 2001, as amended by Order 13268 (as so amended, the “Executive Order”);

 

(ii)                                  the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (commonly known as the USA Patriot Act) (the “USA Patriot Act”);

 

(iii)                               the Money Laundering Control Act of 1986, 18 U.S.C. sect. 1956; and

 

(iv)                              any similar law enacted in the United States of America subsequent to the Signing Date.

 

“Restricted Party” means any person listed:

 

(i)                                     in the Annex to the Executive Order;

 

(ii)                                  on the “Specially Designated Nationals and Blocked Persons” list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury; or

 

(iii)                               in any successor list to either of the foregoing.

 

(b)                                 No U.S. Obligor or any of its Subsidiaries:

 

(i)                                     is, or is controlled by, a Restricted Party;

 

(ii)                                  to the best of its knowledge, has received funds or other property from a Restricted Party; or

 

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(iii)                               to the best of its knowledge, is in breach of or is the subject of any action or investigation under any Anti-Terrorism Law.

 

(c)                                  Each U.S. Obligor and each of its Subsidiaries have taken reasonable measures to ensure compliance with the Anti-Terrorism Laws.

 

16.13                 Sanctions

 

To the best of its and its Subsidiaries’ knowledge, neither it nor any of its Subsidiaries, nor, to the best of its knowledge, any director, officer, agent, employee or affiliate of it or any of its Subsidiaries are currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC) or any equivalent sanctions administered or enforced by the United Nations Security Council, the European Union, Her Majesty’s Treasury, the State Secretariat for Economic Affairs or other relevant sanctions authority.

 

16.14                 Anti-money laundering

 

To the best of its and its Subsidiaries’ knowledge, the operations of each Obligor and its Subsidiaries are and have been in all material respects conducted in compliance with applicable financial record keeping and reporting requirements and money laundering statutes in the United Kingdom and in all jurisdictions in which each Obligor and its Subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, Money Laundering Laws), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving any Obligor or any of its Subsidiaries with respect to Money Laundering Laws is, to the best of each Obligor’s and its Subsidiaries’ knowledge, pending and, to the best of each Obligor’s knowledge, no such actions, suits or proceedings are threatened or contemplated.

 

16.15                 Anti-corruption law

 

To the best of its and its Subsidiaries’ knowledge:

 

(a)                                 each Obligor and its respective Subsidiaries, directors, officers and employees conducts its business in compliance with applicable anti-bribery and anti-corruption laws and regulations, including the UK Bribery Act 2010; and

 

(b)                                 each Obligor and its respective Subsidiaries maintains an effective anti-bribery compliance programme which monitors compliance and detects violations.

 

16.16                 Times for making representations and warranties

 

(a)                                 The representations and warranties set out in this Clause 16 (excluding Clause 16.10 (Investment Company) to Clause 16.12 (Anti-Terrorism Laws) (inclusive)):

 

(i)                                     are made by Vodafone on the Signing Date and, in the case of an Obligor which becomes a Party after the Effective Date, will be deemed to be made by that Obligor on the date it executes a Borrower Accession Agreement or Guarantor Accession Agreement; and

 

(ii)                                  are deemed to be made again by each Obligor on the date of each Request and on each Drawdown Date with reference to the facts and circumstances then existing.

 

(b)                                 The representations and warranties set out in Clauses 16.10 (Investment Company), 16.11 (ERISA) and 16.12 (Anti-Terrorism Laws):

 

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(i)                                     are made by Vodafone on the date on which the first U.S. Obligor executes a Borrower Accession Agreement or a Guarantor Accession Agreement as the case may be;

 

(ii)                                  are deemed to be made by each Obligor which becomes a party after the Effective Date on the date it executes a Borrower Accession Agreement or Guarantor Accession Agreement, provided that there is a U.S. Obligor;

 

(iii)                               are deemed to be made again by each Obligor on the date of each Request and on each Drawdown Date with reference to the facts and circumstances then existing, provided that there is a U.S. Obligor.

 

16.17                 Anti-boycott statutes

 

In relation to each Finance Party that notifies the Agent to such effect (each a “Restricted Finance Party”), Clause 16.12 (Anti-Terrorism Laws) and Clause 16.13 (Sanctions) shall only apply for the benefit of that Restricted Finance Party to the extent that the relevant representations do not result in any violation of, conflict with or liability under (i) Council Regulation (EC) 2271/96, (ii) section 7 of the German Foreign Trade Rules (AWV) (Außenwirtschaftsverordnung) (in connection with section 4 paragraph 1 no. 3 of the German Foreign Trade Act (Außenwirtschaftsgesetz)) or (iii) a similar anti-boycott statute.

 

17.                               UNDERTAKINGS

 

17.1                        Duration

 

The undertakings in this Clause 17 will remain in force for so long as any amount is or may be outstanding under this Agreement or any Commitment is in force.

 

17.2                        Financial information

 

(a)                                 Vodafone shall supply to the Agent:

 

(i)                                     as soon as the same are publicly available (and in any event within 180 days of the end of each of its financial years):

 

(A)                               the audited consolidated financial statements of the Consolidated Group for that financial year; and

 

(B)                               (if published) each other Obligor’s audited statutory accounts for that financial year, consolidated if that Obligor has Subsidiaries and consolidated accounts are prepared and published;

 

(ii)                                  as soon as the same are publicly available (and in any event within 90 days of the end of the first half-year of each of its financial years) the interim unaudited financial statements of the Consolidated Group for that half-year;

 

(iii)                               within 20 days of the day on which the accounts referred to in paragraph (i) (A) or (ii) above are posted on Vodafone’s website in accordance with paragraph (b) below (provided that it shall not be a Default under this Clause 17.2 unless Vodafone fails to so supply within 10 days of written request by the Agent (on its own accord or at the request of a Lender) made at any time following the date of such posting) a certificate signed by a Vodafone authorised officer (or following a Hive Up, a NewTopco authorised officer), or in their absence any director of Vodafone or NewTopco, as the case may be, establishing (in reasonable detail) compliance with Clauses 17.8 (Priority borrowing) as at the date to which those accounts

 

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were drawn up and identifying the Principal Subsidiaries and the operating Subsidiaries which are Controlled Subsidiaries; and

 

(iv)                              if, after the date of the most recent certificate delivered pursuant to paragraph (iii) above and prior to the date that the next certificate is required to be delivered, a Principal Subsidiary ceases to be Principal Subsidiary as a result of (A) a sale or transfer to or a merger into or with an entity which is not a member of the Restricted Group or (B) the acquisition of a new Principal Subsidiary, a certificate signed by a Vodafone authorised officer (or following a Hive Up, a NewTopco authorised officer), or in their absence any director of Vodafone or NewTopco, as the case may be, which identifies the Principal Subsidiary which has ceased to be a Principal Subsidiary and the new Principal Subsidiary.

 

(b)                                 Reports required to be delivered pursuant to clauses (a)(i) and (a)(ii) above for Vodafone shall be deemed to have been delivered on the date on which Vodafone posts such reports to its website on the Internet at the website address listed for Vodafone in Clause 33.2(d) (Addresses for notices) or another relevant website to which the Agent and the Lenders have access and such posting shall be deemed to satisfy the reporting requirements of paragraphs (a)(i) and (a)(ii) above. The Borrower shall provide paper copies of the deliverables required by paragraphs (a)(iii) and (a)(iv) above to the Agent (in sufficient copies for all the Lenders if the Agent so requests).

 

17.3                        Information - miscellaneous

 

Vodafone shall supply to the Agent:

 

(a)                                 all documents despatched by the ultimate Holding Company of the Controlled Group to its shareholders (or any class of them) or by Vodafone or such ultimate Holding Company to the creditors of the Controlled Group generally (or any class of them) at the same time as they are despatched; and

 

(b)                                 as soon as reasonably practicable, such further publicly available information (including that required to comply with “know your customer” or similar identification procedures) in the possession or control of any member of the Controlled Group regarding the business, financial or corporate affairs of the Controlled Group, as the Agent may reasonably request.

 

17.4                        Notification of Default

 

Vodafone shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of it.

 

17.5                        Authorisations

 

Each Obligor shall promptly:

 

(a)                                 obtain, maintain and comply in all material respects with the terms of; and

 

(b)                                 if requested, supply certified copies to the Agent of,

 

any authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or enforceability of, any Finance Document.

 

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17.6                        Pari passu ranking

 

Each Obligor will procure that its obligations under the Finance Documents do and will rank at least pari passu with all its other present and future unsecured and unsubordinated obligations (save for those obligations mandatorily preferred by applicable law).

 

17.7                        Negative pledge

 

No Obligor will, and each Obligor will procure that none of its Subsidiaries which is a member of the Restricted Group will, create or permit to subsist any Security Interest on or over any of its assets except for any Permitted Security Interest.

 

17.8                        Priority borrowing

 

Each Obligor will procure that none of its Subsidiaries (which is a member of the Restricted Group and which is not a Guarantor) will create, assume, incur, guarantee, permit to subsist or otherwise be liable in respect of any Financial Indebtedness owed to persons outside the Restricted Group except for:

 

(a)                                 Financial Indebtedness of any Subsidiary which became a member of the Restricted Group after the Effective Date (unless it became a member of the Restricted Group due to the expansion of the definition of Core Jurisdiction to include members of the European Union after the Effective Date) provided that:

 

(i)                                     any such Financial Indebtedness is either (A) outstanding before that Subsidiary becomes a member of the Restricted Group and was not created in contemplation of that Subsidiary becoming a member of the Restricted Group and/or (B) drawn at any time under commitments in existence before that Subsidiary becomes a member of the Restricted Group and that commitment was not created in contemplation of that Subsidiary becoming a member of the Restricted Group (together with Financial Indebtedness permitted pursuant to sub-paragraph (A), “Permitted Indebtedness”) and/or (C) drawn at any time under New Commitments, provided that such Financial Indebtedness may not be refinanced more than once in each successive four year period (with the first such period commencing on the Effective Date); and

 

(ii)                                  to the extent that at any time the aggregate principal amount of such Financial Indebtedness exceeds the amounts permitted under this paragraph (a) (measured in the same currency) for such member of the Restricted Group, the excess amount of such Financial Indebtedness shall not fall within this paragraph (a); or

 

(b)                                 Financial Indebtedness under finance or structured tax lease arrangements (including, but not limited to qualifying technological equipment leases) to the extent matched as part of those arrangements by deposits of cash or cash equivalent investments (including, but not limited to securities issued by G7 governments) or other securities rated at least A by S&P or A2 by Moody’s or A by Fitch which are treated by the creditor concerned as available to reduce its net exposure; or

 

(c)                                  Financial Indebtedness which is created with the prior written consent of the Majority Lenders; or

 

(d)                                 Financial Indebtedness to the extent matched by cash balances or cash equivalent investments (including, but not limited to securities issued by G7 governments) or other securities rated at least A by S&P or A2 by Moody’s or A by Fitch, held by members of the Restricted Group which are treated as available for netting by the creditors to whom that

 

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Financial Indebtedness is owed under cash management or netting arrangements in the ordinary course of business; or

 

(e)                                  Financial Indebtedness under any finance lease or structured tax lease arrangements (including, but not limited to qualifying technological equipment leases) entered into in respect of assets which were or are acquired or become part of the Restricted Group after 1 March 2014; or

 

(f)                                   Financial Indebtedness under or in connection with any other finance lease entered into in respect of existing assets or future assets (to the extent they are subject to Security Interests contemplated under paragraph (j) of the definition of Permitted Security Interests); or

 

(g)                                  Financial Indebtedness under Back to Back Loans; or

 

(h)                                 Financial Indebtedness of any member of the Controlled Group which operates as a finance company to the extent that any such Financial Indebtedness is on-lent to an Obligor or to a member of the Controlled Group outside the Restricted Group; or

 

(i)                                     Financial Indebtedness that has been defeased to the extent that it is subject to Security Interests contemplated under paragraph (u) of the definition of Permitted Security Interests; or

 

(j)                                    Financial Indebtedness incurred solely in contemplation of an initial public offering or other disposal of the companies or partnerships incurring such Financial Indebtedness, to the extent that (i) the aggregate principal amount of such Financial Indebtedness does not exceed U.S.$5,000,000,000 (or its equivalent in other currencies) whilst such Financial Indebtedness is owed by a member of the Restricted Group; and (ii) the creditors in respect of such Financial Indebtedness have recourse for no more than ninety days to any member of the Controlled Group which is or whose assets are not intended to be subject to the initial public offering or disposal; or

 

(k)                                 Project Finance Indebtedness; or

 

(l)                                     Financial Indebtedness owed to persons outside the Restricted Group under guarantees or other legally binding assurances against financial loss granted by Vodafone Deutschland GmbH or any of its Subsidiaries in respect of any asset, undertaking or business not forming part of the mobile or wireless telecommunications business of the Restricted Group; or

 

(m)                             Financial Indebtedness under this Agreement; or

 

(n)                                 other Financial Indebtedness to the extent that the sum of:

 

(i)                                     the aggregate unpaid principal amount of the Financial Indebtedness of all the members of the Restricted Group which are not Guarantors and owed to persons outside the Restricted Group (other than Financial Indebtedness under paragraphs (a) to (m) above inclusive); plus

 

(ii)                                  the aggregate unpaid principal amount of Financial Indebtedness secured by Security Interests referred to in paragraph (w) of the definition of Permitted Security Interest (to the extent not falling within paragraph (i) above),

 

does not exceed €3,500,000,000 or its equivalent in other currencies.

 

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Compliance with this Clause 17.8 will be tested on the last day of each financial half year. For the purposes of paragraph (n) above, Financial Indebtedness of the Restricted Group not denominated in (or which has not been swapped into) Sterling shall be notionally converted (from the currency in which it is denominated or, as the case may be, into which it has been swapped) to Sterling at the rate of exchange used in the management accounts of the relevant Obligor for that relevant financial quarter.

 

17.9                        Disposals

 

No Obligor will, and each Obligor will procure that none of its Subsidiaries which is a member of the Restricted Group will, either in a single transaction or in a series of transactions, whether related or not and whether voluntarily or involuntarily, make any Asset Disposals other than:

 

(a)                                 Asset Disposals:

 

(i)                                     on arm’s length terms which are, in the opinion of an Obligor, at fair market value; or

 

(ii)                                  required by law or any governmental authority or agency (including without limitation any authority or agency of the European Union); or

 

(iii)                               made in good faith for the purpose of carrying on the business of the Controlled Group which it is reasonable to believe will benefit the Controlled Group; and

 

(b)                                 a transfer of all or any part of the assets of the Controlled Group to NewTopco and/or any Intermediate Holding Company of Vodafone.

 

17.10                 Restriction on Acquisitions

 

Vodafone will not, and will procure that no member of the Controlled Group will, make any Acquisition unless the major part of the Controlled Group’s business remains telecommunications, data communications and associated businesses.

 

17.11                 Margin Stock

 

(a)                                 In this Clause,

 

Margin Regulations means Regulations T, U and X issued by the Board of Governors of the United States Federal Reserve System.

 

Margin Stock means “margin stock” or “margin securities” as defined in the Margin Regulations.

 

(b)                                 No Obligor may:

 

(i)                                     extend credit for the purpose, directly or indirectly, of buying or carrying Margin Stock; or

 

(ii)                                  use any Advance, directly or indirectly, to buy or carry Margin Stock or for any other purpose in violation of the Margin Regulations.

 

17.12                 Sanctions

 

Each Obligor shall ensure, to the best of its ability, that the proceeds of Advances will not, directly or indirectly, be lent to any person or entity (whether or not related to Vodafone) for the purpose of financing the activities of any person or for the benefit of any country currently subject to any U.S. sanctions administered by OFAC or any equivalent sanctions administered or enforced by the United

 

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Nations Security Council, the European Union, Her Majesty’s Treasury, the State Secretariat for Economic Affairs or other relevant sanctions authority.

 

17.13                 Anti-corruption law

 

Each Obligor and its Subsidiaries, directors, officers and employees shall:

 

(a)                                 conduct its business in compliance with applicable anti-bribery and anti-corruption laws and regulations, including the UK Bribery Act 2010;

 

(b)                                 maintain an effective anti-bribery compliance programme which monitors compliance and detects violations; and

 

(c)                                  not give or receive any bribes, including in relation to any public official.

 

17.14                 Know Your Customer

 

Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

 

17.15                 Anti-boycott statutes

 

In relation to each Restricted Finance Party, Clause 17.12 (Sanctions) shall only apply for the benefit of that Restricted Finance Party to the extent that the relevant undertaking does not result in any violation of, conflict with or liability under (i) Council Regulation (EC) 2271/96, (ii) section 7 of the German Foreign Trade Rules (AWV) (Außenwirtschaftsverordnung) (in connection with section 4 paragraph 1 no. 3 of the German Foreign Trade Act (Außenwirtschaftsgesetz)) or (iii) a similar anti-boycott statute.

 

18.                               [CLAUSE DELIBERATELY NOT USED]

 

19.                               EVENTS OF DEFAULT

 

19.1                        Events of Default

 

Each of the events set out in Clauses 19.2 (Non-payment) to 19.15 (United States Bankruptcy Laws) (inclusive) is an Event of Default (whether or not caused by any reason whatsoever outside the control of any Obligor or any other person).

 

19.2                        Non-payment

 

An Obligor does not pay within four Business Days (the “Initial Grace Period”) of the due date any amount payable by it under the Finance Documents at the place at, and in the currency in, which it is expressed to be payable unless its failure to pay is caused by:

 

(a)                                 administrative or technical error and payment is made within a further two Business Days after the expiry of the Initial Grace Period; or

 

(b)                                 a Disruption Event and payment is made within a further four Business Days after the expiry of the Initial Grace Period.

 

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19.3                        Breach of other obligations

 

An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 19.2 (Non-payment)) and such failure (if capable of remedy before the expiry of such period) continues unremedied for a period of 21 days from the earlier of the date on which (i) such Obligor has become aware of the failure to comply or (ii) the Agent gives notice to Vodafone requiring the same to be remedied.

 

19.4                        Misrepresentation

 

A representation or warranty made or repeated by any Obligor in any Finance Document is found to be untrue in any respect material in the context of performance of the Finance Documents when made or deemed to have been made.

 

19.5                        Cross default

 

(a)                                 (i)                                     Any Financial Indebtedness of any Obligor is:

 

(A)                               not paid when due or within any originally applicable grace period; or

 

(B)                               declared due, or is capable of being declared due, prior to its specified maturity as a result of an event of default (howsoever described) except this paragraph (B) does not apply to:

 

I.                                        Financial Indebtedness quoted or listed on a stock exchange; or

 

II.                                   Financial Indebtedness of an Obligor arising solely under paragraph (f) of the definition of “Financial Indebtedness” in Clause 1.1 (Definitions); or

 

(ii)                                  an Event of Default has occurred under the USD Facility and is continuing.

 

(b)                                 Paragraph (a) above does not apply:

 

(i)                                     to Project Finance Indebtedness; or

 

(ii)                                  to Financial Indebtedness which in aggregate is less than £100,000,000 (or equivalent currency); or

 

(iii)                               where the payment or occurrence of the event concerned is being contested in good faith; or

 

(iv)                              where the default is under a bond and is capable of waiver without bondholder consent; or

 

(v)                                 to Financial Indebtedness owed to a member of the Restricted Group.

 

19.6                        Winding up

 

An order is made or an effective resolution is passed for winding up any Obligor or any Principal Subsidiary (except for the purposes of a reconstruction or amalgamation on terms previously approved in writing by the Majority Lenders) or a petition is presented (which is not set aside or withdrawn within the earlier of 30 days of its presentation or by not later than the date for the hearing of such petition) for an administration order or for the winding up of any Obligor or any Principal Subsidiary except where demonstrated to the reasonable satisfaction of the Majority Lenders that any such petition is being contested in good faith.

 

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19.7                        Insolvency process

 

(a)                                 A liquidator, administrator, receiver, trustee, sequestrator or similar officer is appointed in respect of all or any part of the assets of any Obligor or any Principal Subsidiary which generates a material part of the revenues of that Obligor or that Principal Subsidiary; or

 

(b)                                 any Obligor or any Principal Subsidiary, by reason of financial difficulties, enters into a composition, assignment or a moratorium in respect of any indebtedness or arrangement with any class of its creditors.

 

19.8                        Enforcement proceedings

 

A distress, execution, attachment or other legal process is levied, enforced or sued out upon or against all or any part of the assets of any Obligor or any Principal Subsidiary which generates a material part of the revenues of that Obligor or that Principal Subsidiary except where the same is being contested in good faith or is removed, discharged or paid within 30 days.

 

19.9                        Insolvency

 

Any Obligor or any Principal Subsidiary is deemed under Section 123(1)(e) or 123(2) of the Insolvency Act 1986 to be unable to pay its debts.

 

19.10                 Similar proceedings

 

Anything having a substantially similar effect to any of the events specified in Clauses 19.6 (Winding up) to 19.9 (Insolvency) inclusive shall occur under the laws of any applicable jurisdiction in relation to any Obligor or any Principal Subsidiary.

 

19.11                 Unlawfulness

 

It is or becomes unlawful for any Obligor to perform any of its payment or other material obligations under the Finance Documents.

 

19.12                 Guarantee

 

The guarantee of any Guarantor under Clause 15 (Guarantee) is not effective or is alleged by an Obligor to be ineffective for any reason (other than by reason of written release or waiver by the Finance Parties or in accordance with Clause 15.9 (Removal of Guarantors)).

 

19.13                 Cessation of business

 

Any Obligor or any Principal Subsidiary ceases to carry on all or substantially all of its business otherwise than:

 

(a)                                 as a result of a transfer of all or any part of its business to a member of the Restricted Group; or

 

(b)                                 as a result of a disposal permitted under Clause 17.9 (Disposals); or

 

(c)                                  with the prior written consent of the Majority Lenders.

 

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19.14                 Litigation

 

Any litigation proceedings are current which are reasonably likely to be adversely determined and which would have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their payment obligations under the Finance Documents.

 

19.15                 United States Bankruptcy Laws

 

(a)                                 In this Clause 19.15 and Clause 19.16 (Acceleration):

 

U.S. Bankruptcy Law means the United States Bankruptcy Code or any other United States Federal or State bankruptcy, insolvency or similar law.

 

U.S. Debtor means an Obligor that is incorporated or organized under the laws of the United States of America or any State of the United States of America (including the District of Columbia) or that has a place of business or property in the United States of America.

 

(b)                                 Any of the following occurs in respect of a U.S. Debtor:

 

(i)                                     it makes a general assignment for the benefit of creditors;

 

(ii)                                  it commences a voluntary case or proceeding under any U.S. Bankruptcy Law; or

 

(iii)                               an involuntary case under any U.S. Bankruptcy Law is commenced against it and is not controverted within 20 days or is not dismissed or stayed within 60 days after commencement of the case; or

 

(iv)                              an order for relief or other order approving any case or proceeding is entered under any U.S. Bankruptcy Law.

 

19.16                 Acceleration

 

(a)                                 On and at any time after the occurrence of an Event of Default while such event is continuing the Agent may, and if so directed by the Majority Lenders, will by notice to Vodafone, declare that an Event of Default has occurred and:

 

(i)                                     if not already cancelled under paragraph (b) below, cancel the Total Commitments; and/or

 

(ii)                                  demand that all the Advances, together with accrued interest, and all other amounts accrued under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; and/or

 

(iii)                               demand that all the Advances be payable on demand, whereupon they shall immediately become payable on demand.

 

(b)                                 If an Event of Default described in Clause 19.15 (United States Bankruptcy Laws) occurs, the Commitments which are available to any U.S. Debtor will, if not already cancelled under this Agreement, be immediately and automatically cancelled and all amounts owed by any U.S. Debtor outstanding under the Finance Documents will be immediately and automatically due and payable, without the requirement of notice or any other formality.

 

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20.                               THE AGENTS AND THE ARRANGERS

 

20.1                        Appointment and duties of the Agents

 

Each Finance Party (other than the Agent) irrevocably appoints the Agent to act as its agent under and in connection with the Finance Documents and each Swingline Lender appoints the Euro Swingline Agent to act as its agent in relation to the Swingline Facility, and each Finance Party irrevocably authorises the Agent or, as the case may be, the Euro Swingline Agent on its behalf to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to it under or in connection with the Finance Documents, together with any other incidental rights, powers and discretions. The Agent or, as the case may be, the Euro Swingline Agent shall have only those duties which are expressly specified in this Agreement. Those duties are solely of a mechanical and administrative nature.

 

20.2                        Role of the Arrangers

 

Except as otherwise provided in this Agreement, no Arranger has any obligations of any kind to any other Party under or in connection with any Finance Document.

 

20.3                        Relationship

 

The relationship between the Agent or, as the case may be, the Euro Swingline Agent and the other Finance Parties is that of agent and principal only. Nothing in this Agreement constitutes the Agent or, as the case may be, the Euro Swingline Agent as trustee or fiduciary for any other Party or any other person and the Agent or, as the case may be, the Euro Swingline Agent need not hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys.

 

20.4                        Majority Lenders’ directions

 

(a)                                 The Agent or, as the case may be, the Euro Swingline Agent will be fully protected if it acts in accordance with the instructions of the Majority Lenders in connection with the exercise of any right, power or discretion or any matter not expressly provided for in the Finance Documents. Any such instructions given by the Majority Lenders will be binding on all the Lenders. In the absence of such instructions the Agent or, as the case may be, the Euro Swingline Agent may act as it considers to be in the best interests of all the Lenders.

 

(b)                                 Neither the Agent nor the Euro Swingline Agent is authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.

 

20.5                        Delegation

 

The Agent or, as the case may be, the Euro Swingline Agent may act under the Finance Documents through its personnel and agents.

 

20.6                        Responsibility for documentation

 

Neither the Agent, the Euro Swingline Agent nor any Arranger is responsible to any other Party for:

 

(a)                                 the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document by any other Party; or

 

(b)                                 the collectability of amounts payable under any Finance Document; or

 

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(c)                                  the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document by any other Party.

 

20.7                        Default

 

(a)                                 The Agent or, as the case may be, the Euro Swingline Agent is not obliged to monitor or enquire as to whether or not a Default has occurred. Neither the Agent nor the Euro Swingline Agent will be deemed to have knowledge of the occurrence of a Default. However, if the Agent or, as the case may be, the Euro Swingline Agent receives notice from a Party referring to this Agreement, describing the Default and stating that the event is a Default, it shall promptly notify the Lenders of such notice.

 

(b)                                 The Agent or, as the case may be, the Euro Swingline Agent may require the receipt of security satisfactory to it whether by way of payment in advance or otherwise, against any liability or loss which it will or may incur in taking any proceedings or action arising out of or in connection with any Finance Document before it commences these proceedings or takes that action.

 

20.8                        Exoneration

 

(a)                                 Without limiting paragraph (b) below, the Agent or, as the case may be, the Euro Swingline Agent will not be liable to any other Party for any action taken or not taken by it under or in connection with any Finance Document, unless directly caused by its negligence or wilful misconduct or breach of any of its obligations under or in connection with the Finance Documents.

 

(b)                                 No Party may take any proceedings against any officer, employee or agent being an individual of the Agent or, as the case may be, the Euro Swingline Agent in respect of any claim it might have against the Agent or, as the case may be, the Euro Swingline Agent or in respect of any act or omission of any kind (including negligence or wilful misconduct) by that officer, employee or agent in relation to any Finance Document.

 

(c)                                  The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose.

 

(d)                                 Any officer, employee or agent being an individual of the Agent, or as the case may be, the Euro Swingline Agent may rely on paragraph (b) above and enforce its terms under the Contract (Rights of Third Parties) Act 1999.

 

(e)                                  Nothing in this Agreement shall oblige the Agent or an Arranger to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Agent and an Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or an Arranger.

 

20.9                        Reliance

 

The Agent or, as the case may be, the Euro Swingline Agent may:

 

(a)                                 rely on any notice or document reasonably believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person;

 

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(b)                                 rely on any statement made by a director or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify; and

 

(c)                                  engage, pay for and rely on legal or other professional advisers selected by it (including those in the Agent’s or, as the case may be, the Euro Swingline Agent’s employment and those representing a Party other than the Agent or, as the case may be, the Euro Swingline Agent).

 

20.10                 Credit approval and appraisal

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms that it:

 

(a)                                 has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Agent, the Euro Swingline Agent or the Arrangers in connection with any Finance Document; and

 

(b)                                 will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

 

20.11                 Information

 

(a)                                 The Agent or, as the case may be, the Euro Swingline Agent shall promptly forward to the person concerned the original or a copy of any document which is delivered to the Agent or, as the case may be, the Euro Swingline Agent by a Party for that person.

 

(b)                                 The Agent shall promptly supply a Lender with a copy of each document received by the Agent under Clauses 4 (Conditions Precedent), 27.7 (Additional Guarantors) or 27.8 (Additional Borrowers) upon the request and at the expense of that Lender.

 

(c)                                  Except where this Agreement specifically provides otherwise, the Agent or, as the case may be, the Euro Swingline Agent is not obliged to review or check the accuracy or completeness of any document it forwards to another Party.

 

(d)                                 The Agent shall provide to Vodafone within 5 Business Days of a request by Vodafone (but no more than once per calendar month), a list (which may be in electronic form) setting out the names of the Lenders as at the date of that request, their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made or document to be delivered under or in connection with the Finance Documents), the electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Agent to that Lender under the Finance Documents.

 

(e)                                  Except as provided above, the Agent or, as the case may be, the Euro Swingline Agent has no duty:

 

(i)                                     either initially or on a continuing basis to provide any Lender with any credit or other information concerning the financial condition or affairs of any Obligor or any related entity of any Obligor whether coming into its possession or that of any of its related entities before, on or after the Signing Date; or

 

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(ii)                                  unless specifically requested to do so by a Lender in accordance with this Agreement, to request any certificates or other documents from any Obligor.

 

20.12                 The Agent, the Euro Swingline Agent and the Arrangers individually

 

(a)                                 If it is also a Lender, each of the Agent, the Euro Swingline Agent and the Arrangers has the same rights and powers under this Agreement as any other Lender and may exercise those rights and powers as though it were not the Agent, the Euro Swingline Agent or an Arranger.

 

(b)                                 Each of the Agent, the Euro Swingline Agent and the Arrangers may:

 

(i)                                     carry on any business with an Obligor or its related entities;

 

(ii)                                  act as agent or trustee for, or in relation to any financing involving, an Obligor or its related entities; and

 

(iii)                               retain any profits or remuneration in connection with its activities under the Finance Documents, or in relation to any of the foregoing.

 

20.13                 Indemnities

 

(a)                                 Without limiting the liability of any Obligor under the Finance Documents, each Lender shall forthwith on demand indemnify the Agent or, as the case may be, the Euro Swingline Agent for its proportion of any liability or loss incurred by the Agent or, as the case may be, the Euro Swingline Agent in any way relating to or arising out of its acting as the Agent or, as the case may be, the Euro Swingline Agent, except to the extent that the liability or loss arises directly from the Agent’s or, as the case may be, the Euro Swingline Agent’s negligence or wilful misconduct.

 

(b)                                 A Lender’s proportion of the liability or loss set out in paragraph (a) above is the proportion which its Commitment bears to the Total Commitments at the date of demand or, if the Total Commitments have been cancelled, bore to the Total Commitments immediately before being cancelled.

 

20.14                 Compliance

 

(a)                                 The Agent or, as the case may be, the Euro Swingline Agent, may refrain from doing anything which might, in its reasonable opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do anything which, in its reasonable opinion, is necessary or desirable to comply with any law or regulation of any jurisdiction.

 

(b)                                 Without limiting paragraph (a) above, the Agent or, as the case may be, the Euro Swingline Agent, need not disclose any information relating to any Obligor or any of its related entities if the disclosure might, in the opinion of the Agent or, as the case may be, the Euro Swingline Agent, constitute a breach of any law or regulation or any duty of secrecy or confidentiality or be otherwise actionable at the suit of any person.

 

20.15                 Resignation of the Agent or the Euro Swingline Agent

 

(a)                                 Notwithstanding its irrevocable appointment, the Agent or, as the case may be, the Euro Swingline Agent, may resign by giving notice to the Lenders and Vodafone, in which case the Agent or, as the case may be, the Euro Swingline Agent, may forthwith appoint one of its Affiliates as successor Agent or, failing that, the Majority Lenders may after consultation with Vodafone appoint a reputable and experienced bank as successor Agent or, as the case may be, successor Euro Swingline Agent.

 

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(b)                                 If the appointment of a successor Agent or, as the case may be, successor Euro Swingline Agent is to be made by the Majority Lenders but they have not, within 30 days after notice of resignation, appointed a successor Agent or, as the case may be, successor Euro Swingline Agent which accepts the appointment, the retiring Agent or, as the case may be, the retiring Euro Swingline Agent may, following consultation with Vodafone, appoint a successor Agent or, as the case may be, successor Euro Swingline Agent.

 

(c)                                  The resignation of the retiring Agent or, as the case may be, retiring Euro Swingline Agent and the appointment of any successor Agent or, as the case may be, successor Euro Swingline Agent will both become effective only upon the successor Agent or, as the case may be, successor Euro Swingline Agent notifying all the Parties that it accepts the appointment. On giving the notification and receiving such approval, the successor Agent or, as the case may be, successor Euro Swingline Agent will succeed to the position of the retiring Agent or, as the case may be, retiring Euro Swingline Agent and the term “Agent” or, as the case may be, “Euro Swingline Agent” will mean the successor Agent or, as the case may be, successor Euro Swingline Agent.

 

(d)                                 The retiring Agent or, as the case may be, retiring Euro Swingline Agent shall, at its own cost (unless required to resign pursuant to paragraph (f) below), make available to the successor Agent or, as the case may be, successor Euro Swingline Agent such documents and records and provide such assistance as the successor Agent or, as the case may be, successor Euro Swingline Agent may reasonably request for the purposes of performing its functions as the Agent or, as the case may be, the Euro Swingline Agent under this Agreement.

 

(e)                                  Upon its resignation becoming effective, this Clause 20 shall continue to benefit the retiring Agent or, as the case may be, retiring Euro Swingline Agent in respect of any action taken or not taken by it under or in connection with the Finance Documents while it was the Agent or, as the case may be, the Euro Swingline Agent, and, subject to paragraph (d) above, it shall have no further obligation under any Finance Document.

 

(f)                                   The Majority Lenders may by notice to the Agent or, as the case may be, the Euro Swingline Agent, require it to resign in accordance with paragraph (a) above. In this event, the Agent or, as the case may be, the Euro Swingline Agent shall resign in accordance with paragraph (a) above but it shall not be entitled to appoint one of its Affiliates as successor Agent or successor Euro Swingline Agent.

 

(g)                                  Any successor Agent or, as the case may be, successor Euro Swingline Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original party to this Agreement.

 

(h)                                 The Agent or, as the case may be, the Euro Swingline Agent shall resign in accordance with paragraph (a) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent or, as the case may be, the Euro Swingline Agent, pursuant to paragraph (c) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent or, as the case may be, the Euro Swingline Agent, under the Finance Documents, either:

 

(i)                                     the Agent or, as the case may be, the Euro Swingline Agent, fails to respond to a request under Clause 11.7 (FATCA Information) and Vodafone or a Lender reasonably believes that the Agent or, as the case may be, the Euro Swingline Agent, will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

(ii)                                  the information supplied by the Agent or, as the case may be, the Euro Swingline Agent, pursuant to Clause 11.7 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

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(iii)                               the Agent or, as the case may be, the Euro Swingline Agent, notifies Vodafone and the Lenders that the Agent or, as the case may be, the Euro Swingline Agent, will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

and (in each case) Vodafone or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and Vodafone or that Lender, by notice to the Agent, or, as the case may be, the Euro Swingline Agent, requires it to resign.

 

20.16                 Lenders

 

The Agent or, as the case may be, the Euro Swingline Agent may treat each Lender as a Lender, entitled to payments under this Agreement and as acting through its Facility Office(s) until it has received notice from the Lender to the contrary by not less than five Business Days prior to the relevant payment.

 

20.17                 Chinese wall

 

In acting as Agent, Euro Swingline Agent or Arranger, the agency and syndications division of each of the Agent, the Euro Swingline Agent and each Arranger shall be treated as a separate entity from its other divisions and departments. Any information acquired at any time by the Agent, the Euro Swingline Agent or any Arranger otherwise than in the capacity of Agent, Euro Swingline Agent or Arranger through its agency and syndications division (whether as financial advisor to any member of the Consolidated Group or otherwise) may be treated as confidential by the Agent, Euro Swingline Agent or Arranger and shall not be deemed to be information possessed by the Agent, Euro Swingline Agent or Arranger in their capacity as such. Each Finance Party acknowledges that the Agent, the Euro Swingline Agent and the Arrangers may, now or in the future, be in possession of, or provided with, information relating to the Obligors which has not or will not be provided to the other Finance Parties. Each Finance Party agrees that, except as expressly provided in this Agreement, none of the Agent, Euro Swingline Agent or any Arranger will be under any obligation to provide, or under any liability for failure to provide, any such information to the other Finance Parties.

 

21.                               FEES

 

21.1                        Commitment fee

 

(a)                                 Vodafone shall pay to the Agent for distribution to each Lender pro rata to the proportion its Revolving Credit Commitment bears to the Total Commitments from time to time a commitment fee at the rate of 35 per cent. of the applicable Margin on any undrawn, uncancelled amount of the Total Commitments on each day.

 

(b)                                 Commitment fee is calculated and accrues on a daily basis on and from the Effective Date and is payable quarterly in arrear. Accrued and unpaid commitment fee is also payable to the Agent for the relevant Lender(s) on any amount of its Revolving Credit Commitment, which is cancelled voluntarily by the Borrower at the time the cancellation takes effect (but only in respect of the period up to the date of cancellation).

 

(c)                                  No commitment fee is payable to the Agent (for the account of a Lender) on any Available Commitment of that Lender for any day on which that Lender is a Defaulting Lender.

 

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21.2                        Utilisation Fee

 

(a)                                 Vodafone shall pay to the Agent for distribution to each Lender pro rata to the proportion its Revolving Credit Commitment bears to the Total Commitments from time to time a utilisation fee in accordance with paragraphs (b) and (c) below and at the rate per annum specified in paragraph (b) below on any outstanding drawn amount of any Advance on each day.

 

(b)                                 The utilisation fee will be paid on the aggregate outstanding amount of all Advances for each day upon which the outstanding Advances exceed one half of the Total Commitments, at the rate of 0.275 per cent. per annum.

 

(c)                                  The utilisation fee is calculated and accrues on a daily basis and is payable at the end of each Term.

 

21.3                        Agent’s fee

 

Vodafone shall pay to the Agent for its own account an agency fee in the amounts and on the dates agreed in the relevant Fee Letter.

 

21.4                        Front-end fees

 

(a)                                 Vodafone shall pay to the Agent for the Original Lenders as at the Signing Date a front-end fee and MLA fee in the amount and on the date specified in the relevant Fee Letter.

 

(b)                                 If so agreed between Vodafone and an Additional Lender or an Existing Increasing Lender (as applicable), Vodafone shall pay to such Additional Lender or Existing Increasing Lender (as applicable) a front-end fee in the amounts and on the dates specified in the relevant Fee Letter.

 

21.5                        VAT

 

Any fee referred to in this Clause 21 is exclusive of any United Kingdom value added tax. If any value added tax is so chargeable, it shall be paid by Vodafone at the same time as it pays the relevant fee.

 

22.                               EXPENSES

 

22.1                        Initial and special costs

 

Vodafone shall forthwith on demand pay the Agent, the Euro Swingline Agent and the Arrangers the amount of all out-of-pocket costs and expenses (including but not limited to legal fees up to an amount agreed, in the case of (a)(i) below, with the Arrangers) reasonably incurred by any of them in connection with:

 

(a)                                 the negotiation, preparation, printing and execution of:

 

(i)                                     this Agreement and any other documents referred to in this Agreement; and

 

(ii)                                  any other Finance Document (other than a Novation Certificate) executed on or after the Effective Date;

 

(b)                                 any amendment, waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested by or on behalf of an Obligor and relating to a Finance Document or a document referred to in any Finance Document or any amendment to this Agreement to reflect a change in currency of a country pursuant to Clause 10.4(b)(iii) (Currency); and

 

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(c)                                  any other agency matter not of an ordinary administrative nature, arising out of or in connection with a Finance Document in the amount agreed between the Agent and Vodafone at the relevant time.

 

22.2                        Enforcement costs

 

Vodafone shall within five Business Days of receiving written demand pay to each Finance Party the amount of all costs and expenses (including but not limited to legal fees) incurred (or in the case of (b) below reasonably incurred) by it:

 

(a)                                 in connection with the enforcement of any Finance Document; or

 

(b)                                 in connection with the preservation of any rights under any Finance Document.

 

23.                               STAMP DUTIES

 

Vodafone shall pay and within five Business Days of receiving written demand indemnify each Finance Party against any liability it incurs in respect of any stamp, registration or similar tax which is or becomes payable in any jurisdiction in or through which any payment under the Finance Documents is made or any Obligor is incorporated or has any assets in connection with the entry into, performance or enforcement of any Finance Document.

 

24.                               INDEMNITIES

 

24.1                        Currency indemnity

 

(a)                                 If a Finance Party receives an amount in respect of an Obligor’s liability under the Finance Documents or if that liability is converted into a claim, proof, judgment or order in a currency other than the currency (the “Contractual Currency”) in which the amount is expressed to be payable under the relevant Finance Document:

 

(i)                                     that Obligor shall indemnify that Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion;

 

(ii)                                  if the amount received by that Finance Party, when converted into the Contractual Currency at a market rate in the usual course of its business, is less than the amount owed in the Contractual Currency, the Obligor concerned shall forthwith on demand pay to that Finance Party an amount in the Contractual Currency equal to the deficit (provided that if the amount received by the Finance Party following such conversion is greater than the amount owed, the Finance Party shall pay to such Obligor an amount equal to the excess); and

 

(iii)                               the Obligor shall pay to the Finance Party concerned on demand any exchange costs and taxes payable in connection with any such conversion.

 

(b)                                 Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.

 

24.2                        Other indemnities

 

Vodafone shall forthwith on demand indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of:

 

(a)                                 the occurrence of any Default; or

 

(b)                                 the operation of Clause 19.16 (Acceleration); or

 

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(c)                                  any payment of principal or an Overdue Amount being received from any source otherwise than in the case of Revolving Credit Advances or Swingline Advances on its Maturity Date (and, for the purposes of this paragraph (c), the Maturity Date of an Overdue Amount is the last day of each Designated Term); or

 

(d)                                 a Default or an action or omission by an Obligor resulting in an Advance not being disbursed after a Borrower has delivered a Request for that Advance.

 

Vodafone’s liability in each case includes any loss or expense, (excluding loss of Margin) in respect or on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance Document, any amount repaid or prepaid or any Advance.

 

24.3                        Breakage costs

 

If a Finance Party receives or recovers any payment of principal of an Advance or of an Overdue Amount other than on its Maturity Date or, as the case may be, the last day of the Designated Term for the purposes of calculation of the amount payable by Vodafone under sub-clause (c) of Clause 24.2 (Other indemnities) in respect of the amount so received or recovered, that Finance Party shall calculate:

 

(a)                                 the additional interest (excluding the Margin) which would have been payable on the principal so received or recovered had it been received or recovered on the relevant Maturity Date or, as the case may be, the last day of the Designated Term; and

 

(b)                                 the amount of interest which would have been payable to that Finance Party on the relevant Maturity Date or, as the case may be, the last day of the Designated Term concerned in respect of a deposit by that Finance Party in the currency of the amount received or recovered placed with a prime bank in London earning interest from (and including) the earliest Business Day for placing deposits in such currency following receipt of that amount up to (but excluding) the relevant Maturity Date or, as the case may be, the last day of the applicable Designated Term,

 

and if the amount payable under paragraph (a) above is greater than the amount payable under paragraph (b), Vodafone will, forthwith on receipt of a demand from the relevant Finance Party pursuant to sub-clause (c) of Clause 24.2 (Other indemnities), pay to that Finance Party an amount equal to the difference between the amount payable under paragraphs (a) and (b) above.

 

25.                               EVIDENCE AND CALCULATIONS

 

25.1                        Accounts

 

Accounts maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate (except in a case of manifest error).

 

25.2                        Certificates and determinations

 

Any certification or determination by a Finance Party of a rate or amount under this Agreement is, in the absence of manifest error, prima facie evidence of the matters to which it relates.

 

25.3                        Calculations

 

Interest and the fees payable under Clause 21.1 (Commitment fee) accrue from day to day and are calculated on the basis of the actual number of days elapsed and a year of 360 days, or, in the case of

 

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interest at the Swingline Rate or any interest payable in an amount denominated in Sterling, 365 days.

 

26.                               AMENDMENTS AND WAIVERS

 

26.1                        Procedure

 

(a)                                 Subject to Clause 26.2 (Exceptions) and Clause 26.3 (NewTopco), any term of the Finance Documents may be amended or waived with the agreement of Vodafone and the Majority Lenders. The Agent may effect, on behalf of the Lenders, an amendment to which the Majority Lenders have agreed.

 

(b)                                 The Agent shall promptly notify the other Parties of any amendment or waiver effected under paragraph (a) above, and any such amendment or waiver shall be binding on all the Parties.

 

26.2                        Exceptions

 

An amendment or waiver which relates to:

 

(a)                                 the definition of “Majority Lenders” in Clause 1.1 (Definitions); or

 

(b)                                 an extension of the date for, or a decrease in an amount or a change in the currency of, any payment under the Finance Documents; or

 

(c)                                  an increase in or extension of a Lender’s Commitment or a change to the Margin; or

 

(d)                                 a change in the guarantee under Clause 15 (Guarantee) otherwise than in accordance with Clause 27.7 (Additional Guarantors) or Clause 15.9 (Removal of Guarantors); or

 

(e)                                  a term of a Finance Document which expressly requires the consent of each Lender; or

 

(f)                                   Clause 27.5 (Replacement of Lenders); or

 

(g)                                  Clause 30 (Pro Rata Sharing) or this Clause 26; or

 

(h)                                 any Term exceeding six months,

 

may not be effected without the consent of each Lender. Any amendment or waiver which changes, or relates to the rights and/or obligations of the Agent or Euro Swingline Agent shall also require the Agent’s or the Euro Swingline Agent’s (as applicable) agreement.

 

In connection with any amendment, waiver, determination, declaration, decision (including a decision to accelerate) or direction (each a “Relevant Measure”) relating to any part of Clause 16.12 (Anti-Terrorism Laws), Clause 16.13 (Sanctions) or Clause 17.12 (Sanctions) of which a Restricted Finance Party does not have the benefit, the Commitments of that Restricted Finance Party will be excluded for the purpose of determining whether the requisite level of consent of the Lenders to approve such Relevant Measure has been obtained.

 

26.3                        NewTopco

 

Any amendment substituting a reference to Vodafone with a reference to NewTopco:

 

(a)                                 to any procedural or administrative provision of this Agreement; or

 

(b)                                 which puts the Parties in substantially the same position as applied prior to the Hive Up,

 

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may be effected by agreement between NewTopco and the Agent.

 

26.4                        Waivers and remedies cumulative

 

The rights of each Party under the Finance Documents:

 

(a)                                 may be exercised as often as necessary;

 

(b)                                 are cumulative and not exclusive of its rights under the general law; and

 

(c)                                  may be waived only in writing and specifically.

 

Delay in exercising or non-exercise of any such right is not a waiver of that right.

 

26.5                        Disenfranchisement of Defaulting Lenders

 

(a)                                 For so long as a Defaulting Lender has any Available Commitment, in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Lender’s commitments will be reduced by the amount of its Available Commitments.

 

(b)                                 For the purposes of this Clause 26.5, the Agent may assume that the following Lenders are Defaulting Lenders:

 

(i)                                     any Lender which has notified the Agent that it has become a Defaulting Lender;

 

(ii)                                  any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a) or (b) of the definition of “Defaulting Lender” has occurred, and in the case of the events or circumstances referred to in paragraph (a) of the definition of “Defaulting Lender”, none of the exceptions to that paragraph apply,

 

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

26.6                        Replacement of a Defaulting Lender

 

(a)                                 Vodafone may, at any time a Lender has become and continues to be a Defaulting Lender, by giving five Business Days’ prior written notice to the Agent and such Lender:

 

(i)                                     replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to Clause 27 (Changes to the Parties) all (and not part only) of its rights and obligations under this Agreement; or

 

(ii)                                  require such Lender to (and such Lender shall) transfer pursuant to Clause 27 (Changes to the Parties) all (and not part only) of the undrawn Commitments of the Lender,

 

to a Lender or other bank or financial institution, (a “Replacement Lender”) selected by Vodafone, and which is acceptable to the Agent (acting reasonably) and which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Lender (including the assumption of the transferring Lender’s participations or unfunded participations (as the case may be) on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal amount of such Lender’s participation in the

 

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outstanding Advances and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(b)                                 Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause shall be subject to the following conditions:

 

(i)                                     Vodafone shall have no right to replace the Agent;

 

(ii)                                  neither the Agent nor the Defaulting Lender shall have any obligation to Vodafone to find a Replacement Lender;

 

(iii)                               the transfer must take place no later than 45 Business Days after the notice referred to in paragraph (a) above; and

 

(iv)                              in no event shall a Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents.

 

(c)                                  An amendment or waiver which relates to this Clause 26 may not be effected without the consent of each Lender.

 

27.                               CHANGES TO THE PARTIES

 

27.1                        Transfers by Obligors

 

(a)                                 No Obligor may assign, transfer, novate or dispose of any of, or any interest in, its rights and/or obligations under this Agreement provided that without any further consent from the Lenders or the Agent it may, subject to paragraph (b) below and provided that no Default is continuing or would result from any such transfer, transfer its rights and obligations under this Agreement to NewTopco or any Intermediate Holding Company and NewTopco or the Intermediate Holding Company will execute a document, or documents, in favour of the Lenders in form and substance the same as this Agreement, with references to such Obligor in this Agreement amended to mean NewTopco or such Intermediate Holding Company (as applicable), provided that if such transfer is to an Intermediate Holding Company, the Agent may, within 30 days of receipt of notification of such transfer, require NewTopco to accede as a Guarantor. The Agent shall (and is hereby authorised to) execute on behalf of the Finance Parties any such document or documents executed by NewTopco or the Intermediate Holding Company provided that the conditions set out in this Clause 27.1 are satisfied.

 

(b)                                 The transfer of rights and obligations under this Agreement to NewTopco or any Intermediate Holding Company shall not require the consent of the Lenders or the Agent provided that NewTopco or the Intermediate Holding Company, as applicable, is incorporated and tax resident in the United Kingdom or in the United States and prior to such transfer Vodafone provides satisfactory evidence to the Agent that it is tax resident in one of those jurisdictions. Subject to paragraph (c) below, the prior written consent of the Majority Lenders shall be required in relation to the transfer of rights and obligations to a NewTopco or an Intermediate Holding Company incorporated elsewhere.

 

(c)                                  All Lender consent will be required for any transfer of rights under this Agreement to a NewTopco or an Intermediate Holding Company to the extent the transferee is incorporated or established or carrying on its principal business in a country which is subject to OFAC sanctions, United Nations sanctions under Article 41 of the UN Charter, or any equivalent sanctions administered or enforced by the European Union, Her Majesty’s Treasury, the State Secretariat for Economic Affairs, or other relevant sanctions authority.

 

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27.2                        Transfers by Lenders

 

(a)                                 A Lender (the “Existing Lender”) may at any time assign, transfer or novate any of its rights and/or obligations under this Agreement to another bank, financial institution, central bank or federal reserve (the “New Lender”) provided that:

 

(i)                                     subject to paragraph (b) below Vodafone (or following a Hive Up, NewTopco) has, except while an Event of Default is continuing or in the case of an assignment, transfer or novation to an Affiliate or another Lender, given its prior written consent (in the case of a transfer to a financial institution, such consent to be in its absolute discretion and, in the case of a transfer to a bank, central bank or federal reserve such consent not to be unreasonably withheld or delayed);

 

(ii)                                  in the case of a partial assignment, transfer or novation of rights and/or obligations, a minimum amount of €8,000,000 in aggregate and in multiples of €1,000,000 (unless to an Affiliate or to a Lender or the Agent agrees otherwise) must be assigned, transferred or novated;

 

(iii)                               any assignment or transfer by an Existing Lender to a New Lender shall only be effective if it transfers or assigns the Existing Lender’s share of the relevant Facility pro rata against the Existing Lender’s Available Commitment and its participations in Advances under that Facility; and

 

(iv)                              in the case of an assignment, transfer or novation by a Swingline Lender (or an Affiliate of a Swingline Lender), a portion of that Swingline Lender’s Swingline Commitment must also be assigned, transferred or novated to the extent necessary (if at all) to ensure that the Swingline Lender’s Swingline Commitment does not exceed its Commitment after the assignment, transfer or novation.

 

(b)                                 Vodafone must respond to a request for its consent to a transfer made under paragraph (a)(i) above as soon as is reasonably practicable and, in any event, no later than 15 Business Days after the day on which it received the request, or Vodafone will be deemed to have given its consent to the transfer.

 

(c)                                  A transfer of obligations will be effective only if either:

 

(i)                                     the obligations are novated in accordance with Clause 27.4 (Procedure for novations); or

 

(ii)                                  the New Lender gives prior written notice to Vodafone and, except while an Event of Default is continuing or in the case of an assignment, transfer or novation to an Affiliate or another Lender, obtains the consent of Vodafone in accordance with paragraph (a)(i) above and confirms to the Agent and Vodafone that it undertakes to be bound by the terms of this Agreement as a Lender in form and substance satisfactory to the Agent. On the transfer becoming effective in this manner the Existing Lender shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Lender; and

 

the Agent has performed all “know your customer” or other checks relating to any person that it is required to carry out in relation to such assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.

 

(d)                                 Nothing in this Agreement restricts the ability of a Lender to sub-contract an obligation if that Lender remains liable under this Agreement for that obligation.

 

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(e)                                  On each occasion an Existing Lender assigns, transfers or novates any of its rights and/or obligations under this Agreement, the New Lender shall, on the date the assignment, transfer and/or novation takes effect, pay to the Agent for its own account a fee of €2,500.

 

(f)                                   An Existing Lender is not responsible to a New Lender for:

 

(i)                                     the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; or

 

(ii)                                  the collectability of amounts payable under any Finance Document; or

 

(iii)                               the accuracy of any statements (whether written or oral) made in connection with any Finance Document.

 

(g)                                  Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

 

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

 

(ii)                                  will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under this Agreement or any Commitment is in force.

 

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

 

(i)                                     accept a re transfer from a New Lender of any of the rights and/or obligations assigned, transferred or novated under this Clause 27; or

 

(ii)                                  support any losses incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under this Agreement or otherwise.

 

(i)                                     Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement and its Commitment has been cancelled or reduced to nil.

 

(j)                                    If any assignment, transfer or novation results either:

 

(i)                                     at the time of the assignment, transfer or novation; or

 

(ii)                                  at any future time where the additional amount was caused as a result of laws and/or regulations in force at the date of the assignment, transfer or novation,

 

in additional amounts becoming due under Clause 11 (Taxes) or amounts becoming due under Clause 13 (Increased Costs), the New Lender shall be entitled to receive such additional amounts only to the extent that the Existing Lender would have been so entitled had there been no such assignment, transfer or novation.

 

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27.3                        Affiliates of Lenders

 

(a)                                 Each Lender may fulfil its obligations in respect of any Advance through an Affiliate if:

 

(i)                                     the relevant Affiliate is specified in this Agreement as a Lender or becomes a Lender by means of a Novation Certificate in accordance with this Agreement and subject to any consent required under Clause 27.2 (Transfers by Lenders); and

 

(ii)                                  the Advances in which that Affiliate will participate are specified in this Agreement or in a notice given by that Lender to the Agent.

 

In this event, the Lender and the Affiliate will participate in Advances in the manner provided for in sub-paragraph (ii) above.

 

(b)                                 If paragraph (a) above applies, the Lender and its Affiliate will be treated as having a single Commitment and a single vote, but, for all other purposes, will be treated as separate Lenders.

 

27.4                        Procedure for novations

 

(a)                                 A novation is effected if:

 

(i)                                     the Existing Lender and the New Lender deliver to the Agent a duly completed certificate (a “Novation Certificate”), substantially in the form of Part 1 of Schedule 4, with such amendments as the Agent approves to achieve a substantially similar effect (which may be delivered by fax and confirmed by delivery of a hard copy original but the fax will be effective irrespective of whether confirmation is received); and

 

(ii)                                  the Agent executes it (as soon as practicable for it to do so).

 

(b)                                 Each Party (other than the Existing Lender and the New Lender) irrevocably authorises the Agent to execute any duly completed Novation Certificate on its behalf.

 

(c)                                  To the extent that they are expressed to be the subject of the novation in the Novation Certificate:

 

(i)                                     the Existing Lender and the other Parties (the “Existing Parties”) will be released from their obligations to each other (the “Discharged Obligations”);

 

(ii)                                  the New Lender and the Existing Parties will assume obligations towards each other which differ from the Discharged Obligations only insofar as they are owed to or assumed by the New Lender instead of the Existing Lender;

 

(iii)                               the rights of the Existing Lender against the Existing Parties and vice versa (the “Discharged Rights”) will be cancelled; and

 

(iv)                              the New Lender and the Existing Parties will acquire rights against each other which differ from the Discharged Rights only insofar as they are exercisable by or against the New Lender instead of the Existing Lender,

 

all on the date of execution of the Novation Certificate by the Agent or, if later, the date specified in the Novation Certificate.

 

(d)                                 If the effective date of a novation is after the date a Request is received by the Agent but before the date the requested Advance is disbursed to the relevant Borrower, the Existing Lender shall be obliged to participate in that Advance in respect of its Discharged Obligations notwithstanding that novation, and the New Lender shall reimburse the Existing Lender for its participation in that

 

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Advance and all interest and fees thereon up to the date of reimbursement (in each case to the extent attributable to the Discharged Obligations) within three Business Days of the Drawdown Date of that Advance.

 

(e)                                  The Agent shall only be obliged to execute a Novation Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

 

27.5                        Replacement of Lenders

 

(a)                                 In this Clause:

 

“Non-Consenting Lender” means a Lender which does not agree to a consent or amendment to, or a waiver of, a provision of a Finance Document requested by Vodafone where:

 

(i)                                     the consent, waiver or amendment requires the consent of all the Lenders;

 

(ii)                                  a period of not less than 15 Business Days (or such other longer period as agreed from time to time between the Agent and Vodafone) has elapsed from the date the consent, waiver or amendment was requested; and

 

(iii)                               80% of the Lenders have agreed to the consent, waiver or amendment.

 

“Prepayment Lender” means, at any time, a Lender in respect of which a Borrower is at that time entitled to serve a notice under Clause 8.5(a) to (c) (Right of prepayment and cancellation) (inclusive), but has not done so.

 

“Relevant Lender” means:

 

(i)                                     a Prepayment Lender; or

 

(ii)                                  a Non-Consenting Lender.

 

“Replacement Lender” means a Lender or any other bank or financial institution selected by Vodafone which:

 

(i)                                     in the case of a person which is not an existing Lender is acceptable to the Agent (acting reasonably); and

 

(ii)                                  is willing to assume all of the obligations of the Relevant Lender.

 

(b)                                 Subject to paragraph (e) below, Vodafone may, on giving 10 Business Days’ prior notice to the Agent and a Relevant Lender, require that Relevant Lender to transfer all of its rights and obligations under this Agreement to a Replacement Lender.

 

(c)                                  On receipt of a notice under paragraph (b) above the Relevant Lender must transfer all of its rights and obligations under this Agreement:

 

(i)                                     in accordance with Clause 27.2 (Transfers by Lenders);

 

(ii)                                  on the date specified in the notice;

 

(iii)                               to the Replacement Lender specified in the notice; and

 

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(iv)                              for a purchase price equal to the aggregate of:

 

(A)                               the Relevant Lender’s share in the outstanding Facilities;

 

(B)                               any Break Costs incurred by the Relevant Lender as a result of the transfer; and

 

(C)                               all accrued interest, fees and other amounts payable to the Relevant Lender under this Agreement as at the transfer date.

 

(d)                                 No member of the Consolidated Group may make any payment or assume any obligation to or on behalf of the Replacement Lender as an inducement for a Replacement Lender to become a Lender, other than as provided in paragraph (c) above.

 

(e)                                  Notwithstanding the above, Vodafone’s right to replace:

 

(i)                                     a Non-Consenting Lender may only be exercised within 45 Business Days after the date the consent, waiver or amendment was requested by Vodafone;

 

(ii)                                  a Prepayment Lender may only be exercised whilst it is entitled to serve a notice under Clause 8.5 (Right of prepayment and cancellation); and

 

(iii)                               a Non-Consenting Lender or Prepayment Lender under this Clause 27.5 shall in no way be obliged to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents.

 

27.6                        Pro rata interest settlement

 

If the Agent has notified the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 27.2 (Transfers by Lenders) or any novation pursuant to Clause 27.4 (Procedure for novations) the transfer date of which, in each case, is after the date of such notification and is not on the last day of a Term):

 

(a)                                 any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the transfer date (“Accrued Amounts”) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Term (or, if the Term is longer than six Months, on the next of the dates which falls at six monthly intervals after the first day of that Term); and

 

(b)                                 the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts so that, for the avoidance of doubt:

 

(i)                                     when the Accrued Amounts become payable, those Accrued Amounts will be payable for the account of the Existing Lender; and

 

(ii)                                  the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 27.6, have been payable to it on that date, but after deduction of the Accrued Amounts.

 

27.7                        Additional Guarantors

 

(a)                                 (i)                                     Vodafone will procure that NewTopco and any Intermediate Holding Company of Vodafone will become an Additional Guarantor on or before the Reorganisation Date by executing and

 

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delivering the documents set out in paragraph (iii) below on or before the Reorganisation Date.

 

(ii)                                  Subject to Vodafone’s prior written consent, any other member of the Consolidated Group may become an Additional Guarantor.

 

(iii)                               The relevant company will become an Additional Guarantor upon:

 

(A)                               the delivery to the Agent of a Guarantor Accession Agreement duly executed by that company; and

 

(B)                               delivery to the Agent of all those other documents listed in Part 2 of Schedule 2, in each case in the agreed form or in such other form and substance satisfactory to the Agent.

 

(b)                                 The execution of a Guarantor Accession Agreement constitutes confirmation by the Additional Guarantor concerned that the representations and warranties set out in Clauses 16.1 (Representations and Warranties) to 16.6 (Authorisations) to be made by it on the date of the Guarantor Accession Agreement are correct, as if made with reference to the facts and circumstances then existing.

 

27.8                        Additional Borrowers

 

(a)                                 Subject to paragraph (b) below:

 

(i)                                     any member of the Restricted Group, or following a Hive Up (and subject to the proviso below), NewTopco or any Intermediate Holding Company incorporated and tax resident in the United Kingdom or in the United States or, subject to the prior written consent of the Majority Lenders (or, if sub-paragraph (iii) below applies, all the Lenders), elsewhere which Vodafone nominates may become an Additional Borrower, provided that on or prior to the date on which NewTopco or any Intermediate Holding Company accedes as an Additional Borrower it also accedes as an Additional Guarantor.

 

(ii)                                  the relevant member of the Restricted Group (or NewTopco or any Intermediate Holding Company, as applicable) will become an Additional Borrower upon:

 

(A)                               the delivery to the Agent of a Borrower Accession Agreement duly executed by that member of the Restricted Group (or NewTopco or any Intermediate Holding Company, as applicable); and

 

(B)                               delivery to the Agent of each other document listed in Part 4 of Schedule 2, in each case in the agreed form or in such other form and substance satisfactory to the Agent; and

 

(iii)                               all Lender consent will be required for any Additional Borrower to the extent the Additional Borrower is incorporated or established or carrying on its principal business in a country which is subject to OFAC sanctions or United Nations sanctions under Article 41 of the UN Charter or any equivalent sanctions administered or enforced by the European Union, Her Majesty’s Treasury or other relevant sanctions authority.

 

(b)                                 If the accession of such Additional Borrower (in its capacity as either a Borrower or a Guarantor) obliges the Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, Vodafone shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of

 

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any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations prior to the accession of such member of the Restricted Group to this Agreement as an Additional Borrower.

 

(c)                                  The execution of a Borrower Accession Agreement constitutes confirmation by the Additional Borrower concerned that the representations and warranties set out in Clauses 16.1 (Representations and warranties) to 16.6 (Authorisations) to be made by it on the date of the Borrower Accession Agreement are correct, as if made with reference to the facts and circumstances then existing.

 

27.9                        Removal of Borrowers

 

(a)                                 Any Borrower (other than Vodafone (subject to paragraph (b) below) or, if applicable, NewTopco) which has no liabilities to the Finance Parties in respect of outstanding Advances or any other liabilities to the Finance Parties under the Finance Documents (other than as a Guarantor) may, at the request of Vodafone and if no Default is outstanding or will result from such action, cease to be a Borrower by entering into a supplemental agreement to this Agreement at the cost of Vodafone in such form as the Agent may reasonably require which shall discharge that Borrowers’ obligations as a Borrower under this Agreement.

 

(b)                                 If on the Reorganisation Date:

 

(i)                                     NewTopco and any Intermediate Holding Company has acceded as a Guarantor in accordance with Clause 27.7 (Additional Guarantors);

 

(ii)                                  Vodafone has no liabilities to the Finance Parties in respect of outstanding Advances or any other liabilities to the Finance Parties under the Finance Documents (other than as a Guarantor); and

 

(iii)                               no Default is continuing,

 

Vodafone may cease to be a Borrower with effect from the Reorganisation Date by entering into a supplemental agreement to this Agreement at the cost of Vodafone or NewTopco in such form as the Agent may reasonably require which shall discharge Vodafone’s obligations as a Borrower under this Agreement.

 

27.10                 Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 27, each Lender may at any time charge, assign or otherwise create security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:

 

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

 

(b)                                 with the prior written consent of Vodafone (or following a Hive Up, NewTopco), such consent not to be unreasonably withheld or delayed, in the case of any Lender which is a fund, any charge, assignment or other security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,

 

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except that no such charge, assignment or security shall:

 

(i)                                     release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or other security for the Lender as a party to any of the Finance Documents; or

 

(ii)                                  require any payments to be made by an Obligor or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents.

 

28.                               DISCLOSURE OF INFORMATION

 

28.1                        Disclosure

 

(a)                                 A Lender may disclose to any of its Affiliates, directors, employees, officers, professional advisers or auditors; any person to whom or for whose benefit a Lender charges, assigns or otherwise creates security (or may do so) pursuant to Clause 27.10 (Security over Lenders’ rights); or any person with whom it is proposing to enter, or has entered into, any kind of transfer, participation or other agreement in relation to this Agreement:

 

(i)                                     a copy of any Finance Document; and

 

(ii)                                  any information which that Lender has acquired under or in connection with any Finance Document,

 

provided that a Lender shall not disclose any such information:

 

(A)                               to any of its Affiliates, directors, employees, officers, professional advisers or auditors or a federal reserve or central bank, unless the recipient is informed that such information is confidential; or

 

(B)                               to any other person, unless that person has provided to that Lender a confidentiality undertaking addressed to that Lender and Vodafone substantially in the form of Schedule 5 or such other form as Vodafone may approve.

 

(b)                                 Paragraphs 1(a), 1(c), 2(b), 3, 6, 8, 9 and 12 of Schedule 5 (Form of Confidentiality Undertaking from New Lender) shall be deemed to be incorporated herein as if set out in full (mutatis mutandis), but as if references therein to “we”, “us” or “our”” were to each Finance Party and references to “you” were to Vodafone and as if the Confidential Information included any Funding Rate.

 

28.2                        Disclosure to numbering service providers

 

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

 

(i)                                     names of Obligors;

 

(ii)                                  country of domicile of Obligors;

 

(iii)                               place of incorporation of Obligors;

 

(iv)                              the Signing Date or the Effective Date;

 

(v)                                 the name of the Agent and the Arranger;

 

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(vi)                              date of each amendment and restatement of this Agreement;

 

(vii)                           amount of Total Commitments;

 

(viii)                        currencies of the Facilities;

 

(ix)                              type of Facilities;

 

(x)                                 ranking of Facilities;

 

(xi)                              Maturity Date for the Facilities;

 

(xii)                           changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above (inclusive); and

 

(xiii)                        such other information agreed between such Finance Party and Vodafone,

 

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

 

(b)                                 The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facilities and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

 

(c)                                  If requested, the Agent shall notify Vodafone and the other Finance Parties of:

 

(i)                                     the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Facilities and/or one or more Obligors; and

 

(ii)                                  the number or, as the case may be, numbers assigned to this Agreement, the Facilities and/or one or more Obligors by such numbering service provider.

 

28.3                        Confidentiality of Funding Rates

 

(a)                                 Confidentiality and Disclosure

 

(i)                                     The Agent and each Obligor agree to keep each Funding Rate confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (ii) and (iii) below.

 

(ii)                                  The Agent may disclose:

 

(A)                               any Funding Rate to Vodafone pursuant to Clause 9.6 (Notification of rates of interest); and

 

(B)                               any Funding Rate to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Agent and the relevant Lender, as the case may be.

 

(iii)                               The Agent may disclose any Funding Rate, and each Obligor may disclose any Funding Rate, to:

 

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(A)                               any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and representatives if any person to whom that Funding Rate is to be given pursuant to this paragraph (A) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or is otherwise bound by requirements of confidentiality in relation to it;

 

(B)                               any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;

 

(C)                               any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; and

 

(D)                               any person with the consent of the relevant Lender, as the case may be.

 

(b)                                 Other Obligations

 

(i)                                     The Agent and each Obligor acknowledge that each Funding Rate is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Agent and each Obligor undertake not to use any Funding Rate for any unlawful purpose.

 

(ii)                                  The Agent and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender:

 

(A)                               of the circumstances of any disclosure made pursuant to paragraphs (a)(iii)(B) or (a)(iii)(C) above except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(B)                               upon becoming aware that any information has been disclosed in breach of this Clause 28.3

 

29.                               SET-OFF

 

29.1                        Contractual set-off

 

Whilst an Event of Default subsists each Obligor authorises each Finance Party to apply any credit balance to which that Obligor is entitled on any account of that Obligor with that Finance Party or any other sum due and payable by that Lender to that Obligor in satisfaction of any sum due and payable from that Obligor to that Finance Party under the Finance Documents but unpaid. For this

 

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purpose, each Finance Party is authorised to purchase with the moneys standing to the credit of any such account such other currencies as may be necessary to effect such application.

 

29.2                        Set-off not mandatory

 

No Finance Party shall be obliged to exercise any right given to it by Clause 29.1 (Contractual set-off).

 

29.3                        Notice of set-off

 

Any Finance Party exercising its rights under Clause 29.1 (Contractual set-off) shall notify Vodafone promptly after set-off is applied.

 

29.4                        Set-off by Obligors

 

Any Obligor may at any time on or after a Lender becomes a Defaulting Lender set off amounts owed by that Obligor to that Lender under the Finance Documents against any credit balance on any account of that Obligor with that Lender or any other sum due and payable by that Lender to that Obligor (regardless of the place of payment, booking branch or currency of either obligation). If the obligations are in different currencies, that Obligor may convert either obligation at the Agent’s Spot Rate of Exchange (or, if there is no such rate, at a market rate of exchange reasonably selected by Vodafone) for the purpose of the set-off. If an Obligor exercises such rights of set off: (i) it shall notify the Lender promptly thereafter; and (ii) the Lender shall treat any such obligation owed by the Lender to that Obligor as if it was a payment received by the Lender from that Obligor in accordance with the provisions of this Agreement.

 

30.                               PRO RATA SHARING

 

30.1                        Redistribution

 

If any amount owing by an Obligor under any Finance Document to a Finance Party (the “Recovering Finance Party”) is discharged by payment, set-off or any other manner other than through the Agent in accordance with Clause 10 (Payments) (a “Recovery”), then:

 

(a)                                 the Recovering Finance Party shall, within three Business Days, notify details of the Recovery to the Agent;

 

(b)                                 the Agent shall determine whether the Recovery is in excess of the amount which the Recovering Finance Party would have received had the Recovery been received by the Agent and distributed in accordance with Clause 10 (Payments);

 

(c)                                  subject to Clause 30.3 (Exceptions), the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the “Redistribution”) equal to the excess;

 

(d)                                 the Agent shall treat the Redistribution as if it were a payment by the Obligor concerned under Clause 10 (Payments) and shall pay the Redistribution to the Finance Parties (other than the Recovering Finance Party) in accordance with Clause 10.8 (Partial payments); and

 

(e)                                  after payment of the full Redistribution, the Recovering Finance Party will be subrogated to the portion of the claims paid under paragraph (d) above, and that Obligor will owe the Recovering Finance Party a debt which is equal to the Redistribution, immediately payable and of the type originally discharged.

 

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30.2                        Reversal of redistribution

 

If under Clause 30.1 (Redistribution):

 

(a)                                 a Recovering Finance Party must subsequently return a Recovery, or an amount measured by reference to a Recovery, to an Obligor; and

 

(b)                                 the Recovering Finance Party has paid a Redistribution in relation to that Recovery,

 

each Finance Party shall, within three Business Days of demand by the Recovering Finance Party through the Agent, reimburse the Recovering Finance Party all or the appropriate portion of the Redistribution paid to that Finance Party. Thereupon the subrogation in Clause 30.1(e) (Redistribution) will operate in reverse to the extent of the reimbursement.

 

30.3                        Exceptions

 

(a)                                 A Recovering Finance Party need not pay a Redistribution to the extent that it would not, after the payment, have a valid claim against the Obligor concerned in the amount of the Redistribution pursuant to Clause 30.1(e) (Redistribution).

 

(b)                                 A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal proceedings, if the other Finance Party had an opportunity to participate in those legal proceedings but did not do so and did not take separate legal proceedings.

 

31.                               SEVERABILITY

 

If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

 

(a)                                 the legality, validity or enforceability in that jurisdiction of any other provision of the Finance Documents; or

 

(b)                                 the legality, validity or enforceability in other jurisdictions of that or any other provision of the Finance Documents.

 

32.                               COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

33.                               NOTICES

 

33.1                        Giving of notices

 

(a)                                 All notices or other communications under or in connection with this Agreement shall be given in writing or by facsimile. Any such notice will be deemed to be given as follows:

 

(i)                                     if in writing, when delivered; and

 

(ii)                                  if by facsimile, when received.

 

However, a notice given in accordance with the above but received on a non-working day or after 5 p.m. in the place of receipt will only be deemed to be given on the next working day in that place.

 

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

 

(c)                                  Any Party may agree with any other Party to give and receive notices by telex in which case the notice will be deemed given when the correct answerback is received.

 

33.2                        Addresses for notices

 

(a)                                 The address and facsimile number of each Party (other than the Agent, the Euro Swingline Agent and Vodafone) for all notices under or in connection with this Agreement are:

 

(i)                                     that notified by that Party for this purpose to the Agent on or before it becomes a Party; or

 

(ii)                                  any other notified by that Party for this purpose to the Agent by not less than five Business Days’ notice.

 

(b)                                 The address, email contact details and facsimile number of the Agent are:

 

1 Churchill Place

London E14 5HP

 

Contact: Head of EME Loan Agency

Facsimile: +44 (0) 20 7773 4893

Email: loans.agency@barclays.com

 

or such other as the Agent may notify to the other Parties by not less than five Business Days’ notice.

 

(c)                                  The address and email contact details of the Euro Swingline Agent are:

 

1 Churchill Place

London E14 5HP

 

Contact: EMEA Agency Servicing

Email: emeaagency1loans@barclays.com

 

or such other as the Euro Swingline Agent may notify to the other Parties by not less than five Business Days’ notice.

 

(d)                                 The address, facsimile number and website of Vodafone are:

 

Vodafone Group Plc

One Kingdom Street

Paddington Central

London W2 6BY

 

Contact:                                                Group Treasury Director

Telephone:                                   0787 9496611

Facsimile:                                         01635 676 746

Email:                                                            neil.garrod@vodafone.com

 

Website: http://www.vodafone.com/start/investor_relations/financial_reports. html

 

95

 

or such other as Vodafone may notify to the other Parties by not less than five Business Days’ notice.

 

(e)                                  The Agent shall, promptly upon request from any Party, give to that Party the address or facsimile number of any other Party applicable at the time for the purposes of this Clause 33.

 

33.3                        Communication when Agent or Euro Swingline Agent is Impaired Agent

 

If the Agent or, as the case may be, the Euro Swingline Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent or, as the case may be, the Euro Swingline Agent, communicate with each other directly and (while the Agent or the Euro Swingline Agent is an impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly. This provision shall not operate after a successor Agent or, as the case may be, successor Euro Swingline Agent has been appointed.

 

33.4                        Electronic communication

 

(a)                                 Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means (including, without limitation, by way of posting to a secure website) if those two Parties:

 

(i)                                   notify each other in writing of their electronic mail address and/or any other information required to enable the transmission of information by that means; and

 

(ii)                                notify each other of any change to their address or any other such information supplied by them by not less than five Business Days’ notice.

 

(b)                                 Any such electronic communication as specified in paragraph (a) above to be made between an Obligor and a Finance Party may only be made in that way to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication.

 

(c)                                  Any such electronic communication as specified in paragraph (a) above made between any two Parties will be effective only when actually received (or made available) in readable form and in the case of any electronic communication made by a Party to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose.

 

(d)                                 Any electronic communication which becomes effective, in accordance with paragraph (c) above, after 5:00 p.m. in the place in which the Party to whom the relevant communication is sent or made available has its address for the purpose of this Agreement shall be deemed only to become effective on the following day.

 

(e)                                  Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 33.4

 

33.5                        Use of websites

 

(a)                                 Vodafone may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the “Website Lenders”) who accept this method of communication by posting this information onto an electronic website designated by Vodafone and the Agent (the “Designated Website”) if:

 

(i)                                   the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;

 

96

 

(ii)                                both Vodafone and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and

 

(iii)                             the information is in a format previously agreed between Vodafone and the Agent.

 

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

 

(b)                                 The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by Vodafone and the Agent.

 

(c)                                  Vodafone shall promptly upon becoming aware of its occurrence notify the Agent if:

 

(i)                                   the Designated Website cannot be accessed due to technical failure;

 

(ii)                                the password specifications for the Designated Website change;

 

(iii)                             any new information which is required to be provided under this Agreement is posted onto the Designated Website;

 

(iv)                            any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

 

(v)                               Vodafone becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

 

If Vodafone notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by Vodafone under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.

 

(d)                                 Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website. Vodafone shall at its own cost comply with any such request within ten Business Days.

 

34.                               LANGUAGE

 

(a)                                 Any notice given under or in connection with any Finance Document shall be in English.

 

(b)                                 All other documents provided under or in connection with any Finance Document shall be:

 

(i)                                   in English; or

 

(ii)                                if not in English, accompanied by a certified English translation and, in this case, the English translation shall prevail unless the document is a statutory or other official document.

 

97

 

35.                               JURISDICTION

 

35.1                        Submission

 

(a)                                 Each Party agrees that the courts of England have exclusive jurisdiction to settle any disputes in connection with any Finance Document or any non-contractual obligation arising out of or in connection with any Finance Document and accordingly submits to the jurisdiction of the English courts.

 

(b)                                 Notwithstanding paragraph (a) above, for the benefit of the Finance Parties, any New York State court or U.S. Federal court sitting in the City and County of New York also has jurisdiction to settle any dispute in connection with any Finance Document involving a U.S. Obligor, and each U.S. Obligor submits to the jurisdiction of those courts.

 

(c)                                  The English courts and (in respect of a dispute involving a U.S. Obligor) New York courts are the most appropriate and convenient courts to settle any such dispute and each Obligor and U.S. Obligor waives objection to those courts on the grounds of inconvenient forum or otherwise in relation to proceedings in connection with any Finance Document.

 

35.2                        Service of process

 

(a)                                 Without prejudice to any other mode of service, each Obligor (other than an Obligor incorporated in England and Wales):

 

(i)                                   irrevocably appoints Vodafone as its agent for service of process relating to any proceedings before the English courts in connection with any Finance Document (and Vodafone accepts this appointment);

 

(ii)                                agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned;

 

(iii)                             consents to the service of process relating to any such proceedings by prepaid posting of a copy of the process to its address for the time being applying under Clause 33.2 (Addresses for notices); and

 

(iv)                            agrees that if the appointment of any person mentioned in paragraph (i) or (ii) above ceases to be effective, the relevant Obligor shall immediately appoint a further person in England to accept service of process on its behalf in England and, failing such appointment within 15 days, the Agent is entitled to appoint such a person by notice to Vodafone.

 

(b)                                 Prior to the accession of a US Obligor who is not incorporated or having a place of business in New York State such US Obligor must appoint an agent for service of process in any proceedings before any court located in the State of New York on terms reasonably satisfactory to the Agent.

 

35.3                        Forum convenience and enforcement abroad

 

Each Obligor:

 

(a)                               waives objection to the English courts on grounds of inconvenient forum or otherwise as regards proceedings in connection with a Finance Document; and

 

(b)                               agrees that a judgment or order of an English court in connection with a Finance Document is conclusive and binding on it and may be enforced against it in the courts of any other jurisdiction.

 

98

 

35.4                        Non-exclusivity

 

Nothing in this Clause 35 limits the right of a Finance Party to bring proceedings against an Obligor in connection with any Finance Document:

 

(a)                                 in any other court of competent jurisdiction; or

 

(b)                                 concurrently in more than one jurisdiction.

 

36.                               GOVERNING LAW

 

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

 

37.                               USA PATRIOT ACT

 

Each Finance Party that is subject to the requirements of the USA Patriot Act hereby notifies each Obligor that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record information that identifies the Obligors, which information includes the name and address of the Obligors and other information that will allow such Finance Party to identify the Obligors in accordance with the USA Patriot Act. Each Obligor agrees that it will provide each Finance Party with such information as it may request in order for such Finance Party to satisfy the requirements of the USA Patriot Act.

 

38.                               WAIVER OF TRIAL BY JURY

 

EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN CONNECTION WITH ANY FINANCE DOCUMENT OR ANY TRANSACTION CONTEMPLATED BY ANY FINANCE DOCUMENT. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY THE COURT.

 

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

 

99

 

SCHEDULE 1

 

LENDERS AND COMMITMENTS

 

PART 1

 

LENDERS AND COMMITMENTS

 

	
Original Lender
    	
 
    	
Commitment (€)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
BANK OF AMERICA   MERRILL LYNCH INTERNATIONAL LIMITED
    	
 
    	
150,000,000
    	
 
    
	
BANK OF CHINA   LIMITED, LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
THE BANK OF NEW   YORK MELLON
    	
 
    	
80,000,000
    	
 
    
	
THE BANK OF   TOKYO-MITSUBISHI UFJ, LTD.
    	
 
    	
150,000,000
    	
 
    
	
BARCLAYS BANK   PLC
    	
 
    	
150,000,000
    	
 
    
	
BBVA IRELAND   P.L.C.
    	
 
    	
150,000,000
    	
 
    
	
BNP PARIBAS SA,   LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
CITIBANK N.A.,   LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
COMMERZBANK AG,   LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
DEUTSCHE BANK   LUXEMBOURG S.A.
    	
 
    	
150,000,000
    	
 
    
	
GOLDMAN SACHS   BANK USA
    	
 
    	
150,000,000
    	
 
    
	
HSBC BANK PLC
    	
 
    	
150,000,000
    	
 
    
	
ING BANK N.V.,   LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
INTESA SANPAOLO   S.P.A., LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
JPMORGAN CHASE   BANK, N.A., LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
LLOYDS BANK PLC
    	
 
    	
150,000,000
    	
 
    
	
MIZUHO BANK, LTD
    	
 
    	
150,000,000
    	
 
    
	
MORGAN STANLEY   BANK, N.A.
    	
 
    	
150,000,000
    	
 
    
	
ROYAL BANK OF   CANADA
    	
 
    	
150,000,000
    	
 
    
	
SANTANDER UK PLC
    	
 
    	
150,000,000
    	
 
    
	
SOCIETE   GENERALE, LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    

 

100

 

	
STANDARD   CHARTERED BANK
    	
 
    	
80,000,000
    	
 
    
	
SUMITOMO MITSUI   BANKING CORPORATION
    	
 
    	
150,000,000
    	
 
    
	
THE ROYAL BANK   OF SCOTLAND PLC
    	
 
    	
150,000,000
    	
 
    
	
THE   TORONTO-DOMINION BANK
    	
 
    	
80,000,000
    	
 
    
	
UBS AG, LONDON   BRANCH
    	
 
    	
150,000,000
    	
 
    
	
UNICREDIT BANK   AG, LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
3,840,000,000
    	
 
    

 

101

 

PART 2

 

SWINGLINE LENDERS AND SWINGLINE COMMITMENTS

 

	
Swingline Lender
    	
 
    	
Swingline Commitments €
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
THE BANK OF   TOKYO-MITSUBISHI UFJ, LTD.
    	
 
    	
150,000,000
    	
 
    
	
BARCLAYS BANK   PLC
    	
 
    	
150,000,000
    	
 
    
	
BBVA IRELAND   P.L.C.
    	
 
    	
150,000,000
    	
 
    
	
BNP PARIBAS SA,   LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
DEUTSCHE BANK   LUXEMBOURG S.A.
    	
 
    	
150,000,000
    	
 
    
	
HSBC BANK PLC
    	
 
    	
150,000,000
    	
 
    
	
ING BANK N.V.,   LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
JPMORGAN CHASE   BANK, N.A., LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
SANTANDER UK PLC
    	
 
    	
150,000,000
    	
 
    
	
THE ROYAL BANK   OF SCOTLAND PLC
    	
 
    	
150,000,000
    	
 
    
	
UBS AG, LONDON   BRANCH
    	
 
    	
150,000,000
    	
 
    
	
UNICREDIT BANK   AG, LONDON BRANCH
    	
 
    	
150,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
1,800,000,000
    	
 
    

 

102

 

PART 3

 

MANDATED LEAD ARRANGERS

 

BANCO BILBAO VIZCAYA ARGENTARIA S.A.

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED

 

BANK OF CHINA LIMITED, LONDON BRANCH

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 

BARCLAYS BANK PLC

 

BNP PARIBAS SA

 

CITIGROUP GLOBAL MARKETS LIMITED

 

COMMERZBANK AG, LONDON BRANCH

 

DEUTSCHE BANK LUXEMBOURG S.A.

 

GOLDMAN SACHS BANK USA

 

HSBC BANK PLC

 

ING BANK N.V., LONDON BRANCH

 

INTESA SANPAOLO S.P.A.

 

J.P. MORGAN SECURITIES PLC

 

LLOYDS BANK PLC

 

MIZUHO BANK, LTD

 

MORGAN STANLEY BANK INTERNATIONAL LIMITED

 

RBC CAPITAL MARKETS

 

SANTANDER UK PLC

 

SOCIETE GENERALE, LONDON BRANCH

 

SUMITOMO MITSUI BANKING CORPORATION

 

THE ROYAL BANK OF SCOTLAND PLC

 

UBS LIMITED

 

UNICREDIT BANK AG, LONDON BRANCH

 

103

 

PART 4

 

CO-ARRANGERS

 

THE BANK OF NEW YORK MELLON

 

STANDARD CHARTERED BANK

 

THE TORONTO-DOMINION BANK

 

104

 

SCHEDULE 2

 

CONDITIONS PRECEDENT DOCUMENTS

 

PART 1

 

TO BE DELIVERED BEFORE THE FIRST ADVANCE —SIGNING DATE

 

1.                                      Constitutional documents

 

A copy of the memorandum and articles of association and certificate of incorporation of Vodafone.

 

2.                                      Authorisations

 

(a)                                 A copy of a resolution of the board of directors of Vodafone or, if applicable, of a committee of the board of directors (together with a copy of the resolution of the board of directors constituting that committee):

 

(i)                                   approving the terms of, and the transactions contemplated by, this Agreement and the Fee Letters and resolving that it execute and, where applicable, deliver this Agreement and the Fee Letters;

 

(ii)                                authorising a specified person or persons to execute and, where applicable, deliver this Agreement and the Fee Letters on its behalf; and

 

(iii)                             authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including Requests) to be signed and/or despatched by it under or in connection with the Finance Documents;

 

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

 

(c)                                  A certificate of an authorised signatory of Vodafone confirming that as at the first Drawdown Date the borrowing of the Total Commitments in full and the borrowing of the Total Commitments under (and as defined in) the USD Facility in full would not together cause any borrowing limit or limit on the giving of guarantees binding on it to be exceeded (whether as a result of such limit having been waived or otherwise);

 

(d)                                 A certificate of an authorised signatory of Vodafone certifying that each copy document specified in this Part 1 of Schedule 2 and supplied by Vodafone is correct, complete and in full force and effect as at a date no earlier than the Signing Date.

 

3.                                      Legal opinions

 

A legal opinion of Allen & Overy LLP, English law counsel to the Agent, in relation to English law.

 

4.                                      Fee Letter

 

Duly executed Fee Letters referred to in paragraphs (a) and (b) of the definition of Fee Letters.

 

105

 

PART 2

 

TO BE DELIVERED BEFORE THE FIRST ADVANCE — INCREMENTAL FACILITY

 

A certificate of an authorised signatory of each Obligor confirming that as at the first Drawdown Date following the Increase Effective Date the borrowing of the Total Commitments in full and the borrowing of the Total Commitments under (and as defined in) the USD Facility in full would not together cause any borrowing limit or limit on the giving of guarantees binding on it to be exceeded (whether as a result of such limit having been waived or otherwise).

 

106

 

PART 3

 

TO BE DELIVERED BY AN ADDITIONAL GUARANTOR

 

1.                                      A Guarantor Accession Agreement duly executed (if appropriate, under seal) by the Additional Guarantor.

 

2.                                      A copy of the memorandum (if applicable) and articles of association and certificate of incorporation (or other equivalent constitutional documents) of the Additional Guarantor.

 

3.                                      A copy of a resolution of the board of directors of the Additional Guarantor:

 

(a)                                 approving the terms of, and the transactions contemplated by, the Guarantor Accession Agreement and resolving that it execute the Guarantor Accession Agreement as a deed;

 

(b)                                 authorising a specified person or persons to execute the Guarantor Accession Agreement as a deed; and

 

(c)                                  authorising a specified person or persons, on its behalf, to sign and/or despatch all documents to be signed and/or despatched by it under or in connection with this Agreement.

 

4.                                      If the Additional Guarantor is not NewTopco and the lawyers referred to in paragraph 10 below advise it to be necessary or desirable, a copy of a resolution, signed by all the holders of the issued or allotted shares in the Additional Guarantor, approving the terms of, and the transactions contemplated by, the Guarantor Accession Agreement.

 

5.                                      If the Additional Guarantor is not NewTopco, a copy of a resolution of the board of directors of each corporate shareholder in the Additional Guarantor:

 

(a)                                 approving the terms of the resolution referred to in paragraph 4 above; and

 

(b)                                 authorising a specified person or persons to sign the resolution on its behalf.

 

6.                                      A certificate of a director of the Additional Guarantor certifying that the borrowing of the Total Commitments in full and the borrowing of the Total Commitments under (and as defined in) the USD Facility in full would not together cause any borrowing limit or limit on the giving of guarantees binding on it to be exceeded (whether as a result of such limit being waived or otherwise).

 

7.                                      A copy of any other authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of, and the transactions contemplated by, the Guarantor Accession Agreement or for the validity and enforceability of any Finance Document.

 

8.                                      A specimen of the signature of each person authorised by the resolutions referred to in paragraphs 3 and, if applicable, 5 above.

 

9.                                      A copy of the latest annual statutory audited accounts of the Additional Guarantor.

 

10.                               A legal opinion of Allen & Overy, legal advisers to the Agent, and, if applicable, other lawyers approved by the Agent in the place of incorporation of the Additional Guarantor addressed to the Finance Parties.

 

107

 

11.                               A certificate of an authorised signatory of the Additional Guarantor certifying that each copy document specified in this Part 3 of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Guarantor Accession Agreement.

 

108

 

PART 4

 

TO BE DELIVERED BY AN ADDITIONAL BORROWER

 

1.                                      A Borrower Accession Agreement duly executed (if appropriate, under seal) by the Additional Borrower.

 

2.                                      A copy of the memorandum and articles of association and certificate of incorporation (or other equivalent constitutional documents) of the Additional Borrower.

 

3.                                      A copy of a resolution of the board of directors of the Additional Borrower:

 

(a)                                 approving the terms of, and the transactions contemplated by, the Borrower Accession Agreement and resolving that it execute the Borrower Accession Agreement;

 

(b)                                 authorising a specified person or persons to execute the Borrower Accession Agreement; and

 

(c)                                  authorising a specified person or persons, on its behalf, to sign and/or despatch all documents to be signed and/or despatched by it under or in connection with this Agreement.

 

4.                                      A certificate of a director of the Additional Borrower certifying that the borrowing of the Total Commitments in full and the borrowing of the Total Commitments under (and as defined in) the USD Facility in full would not together cause any borrowing limit or limit on the giving of guarantees binding on it to be exceeded (whether as a result of such limit being waived or otherwise).

 

5.                                      A copy of any other authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of, and the transactions contemplated by, the Borrower Accession Agreement or for the validity and enforceability of any Finance Document.

 

6.                                      A specimen of the signature of each person authorised by the resolutions referred to in paragraph 3 above.

 

7.                                      A copy of the latest annual statutory audited accounts of the Additional Borrower (if any).

 

8.                                      A legal opinion of Allen & Overy, legal advisers to the Agent, and, if applicable, other lawyers approved by the Agent in the place of incorporation of the Additional Borrower addressed to the Finance Parties.

 

9.                                      A certificate of an authorised signatory of the Additional Borrower certifying that each copy document specified in this Part 4 of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Borrower Accession Agreement.

 

109

 

SCHEDULE 3

 

FORM OF REQUEST

 

To:                             BARCLAYS BANK PLC as [Agent/Euro Swingline Agent*]

 

From:               [BORROWER]

 

Date: [        ]

 

Vodafone Group Plc —€ [        ]

Revolving Credit Agreement dated 28 March 2014 (as amended and/or restated from time to time)

 

1.                                      We wish to utilise the Revolving Credit Facility* and/or the Swingline Facility* by way of Advances*/Swingline Advances* as follows:

 

	
(a)
    	
 
    	
Drawdown Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Revolving Credit Facility:
    	
[        ]
    	
*
    
	
 
    	
 
    	
 
    	
Swingline Facility:
    	
[        ]
    	
*
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(b)
    	
 
    	
Requested Amount (including currency):
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Revolving Credit Facility:
    	
[        ]
    	
*
    
	
 
    	
 
    	
 
    	
Swingline Facility:
    	
[        ]
    	
*
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(c)
    	
 
    	
Term:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Revolving Credit Facility:
    	
[        ]
    	
*
    
	
 
    	
 
    	
 
    	
Swingline Facility:
    	
[        ]
    	
*
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(d)
    	
 
    	
Payment Instructions:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Revolving Credit Facility:
    	
[        ]
    	
*
    
	
 
    	
 
    	
 
    	
Swingline Facility:
    	
[        ]
    	
*
    

 

2.                                      We confirm that each condition specified in [Clause 4.2 (Conditions to all drawdowns and rollovers)]** is satisfied on the date of this Request and this Advance would not cause any borrowing limit binding on us to be exceeded.

 

[By:

[BORROWER]

Authorised Signatory]

 

**                                  Delete as applicable depending on whether the Advance is a Rollover Advance.

 

110

 

SCHEDULE 4

 

FORMS OF ACCESSION DOCUMENTS

 

PART 1

 

NOVATION CERTIFICATE

 

	
To:
    	
BARCLAYS BANK PLC as Agent
    	
 
    
	
 
    	
 
    	
 
    
	
From:
    	
[THE EXISTING LENDER] and [THE NEW LENDER] 
    	
Date: [       ]
    

 

Vodafone Group Plc —€ [       ]

Revolving Credit Agreement dated 28 March 2014 (as amended and/or restated from time to time)

 

We refer to Clause 27.4 (Procedure for novations).

 

1.                                      We [       ] (the “Existing Lender”) and [       ] (the “New Lender”) agree to the Existing Lender and the New Lender novating all the Existing Lender’s rights and obligations referred to in the Schedule in accordance with Clause 27.4 (Procedure for novations).

 

2.                                      The specified date for the purposes of [Clause 27.4(c) (Procedure for novations)] is [date of novation].

 

3.                                      The Facility Office and address for notices of the New Lender for the purposes of Clause 33.2 (Addresses for notices) are set out in the Schedule.

 

4.                                      The New Lender confirms that it has given notice to Vodafone of the entry into of this Novation Certificate [and has obtained Vodafone’s consent]* in accordance with Clause 27.2(c)(ii) (Transfers by Lenders).

 

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

 

*                                         Delete as applicable depending on whether Vodafone’s consent is required.

 

111

 

THE SCHEDULE

 

Rights and obligations to be novated

 

[Details of the rights and obligations of the Existing Lender to be novated.]

 

	
[New Lender]
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
[Facility Office
    	
 
    	
Address for notices]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
[Existing Lender]
    	
 
    	
[New Lender]
    	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
By:
    	
 
    	
By:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
Date:
    	
 
    	
Date:
    

 

112

 

PART 2

 

GUARANTOR ACCESSION AGREEMENT

 

To:                             BARCLAYS BANK PLC as Agent

 

From:               [PROPOSED GUARANTOR]

 

Date: [       ]

 

Vodafone Group Plc —€ [       ] Revolving Credit Agreement

dated 28 March 2014 (as amended and/or restated from time to time) (the “Credit Agreement”)

 

Terms used in this Deed which are defined in the Credit Agreement shall have the same meaning in this Deed as in the Credit Agreement.

 

We refer to Clause 27.7 (Additional Guarantors).

 

We, [name of company] of [Registered Office] (Registered no. [       ]) agree to become an Additional Guarantor and to be bound by the terms of the Credit Agreement as an Additional Guarantor in accordance with Clause 27.7 (Additional Guarantors). [In addition, we also agree to become bound by all the terms of the Credit Agreement expressed to apply to or be binding on NewTopco] *

 

Our address for notices for the purposes of Clause 33.2 (Addresses for notices) is:

 

[

 

]

 

[If not classified as a corporation: [Name of company] is [classified as a partnership /OR/ disregarded as an entity separate from its owner] and is owned by [NAME OF OWNER(S)] for U.S. federal income tax purposes.]

 

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

 

	
Executed as a deed   by
    	
)
    	
Director
    
	
[PROPOSED   GUARANTOR]
    	
)
    	
 
    
	
acting by
    	
)
    	
Director/Secretary
    
	
And
    	
)
    	
 
    

 

*                                         Only in the case of accession by NewTopCo.

 

113

 

PART 3

 

BORROWER ACCESSION AGREEMENT

 

To:                             BARCLAYS BANK PLC as Agent

 

From:               [PROPOSED BORROWER]

 

[Date]

 

Vodafone Group Plc -€ [       ] Revolving Credit Agreement

dated 28 March 2014 (as amended and/or restated from time to time) (the “Credit Agreement”)

 

Terms used herein which are defined in the Credit Agreement shall have the same meaning herein as in the Credit Agreement.

 

We refer to Clause 27.8 (Additional Borrowers).

 

We, [Name of company] of [Registered Office] (Registered no. [       ] agree to become party to and to be bound by the terms of the Credit Agreement as an Additional Borrower in accordance with Clause 27.8 (Additional Borrowers).

 

The address for notices of the Additional Borrower for the purposes of Clause 33.2 (Addresses for notices) is:

 

[

 

]

 

[If not classified as a corporation: [Name of company] is [classified as a partnership /OR/ disregarded as an entity separate from its owner] and is owned by [NAME OF OWNER(S)] for U.S. federal income tax purposes.]

 

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

 

	
[ADDITIONAL   BORROWER]
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
BARCLAYS BANK   PLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    

 

114

 

PART 4

 

LENDER ACCESSION AGREEMENT

 

To:                             BARCLAYS BANK PLC as Agent

 

From:               [PROPOSED ADDITIONAL LENDER]

 

[Date]

 

Vodafone Group Plc -€ [       ] Revolving Credit Agreement

dated 28 March 2014 (as amended and/or restated from time to time) (the “Credit Agreement”)

 

Terms used herein which are defined in the Credit Agreement shall have the same meaning herein as in the Credit Agreement.

 

We refer to Clause 2.8 (Incremental revolving credit facility).

 

We, [Name of Additional Lender] agree to become party to and to be bound by the terms of the Credit Agreement as an Additional Lender in accordance with Clause 2.8 (Incremental revolving credit facility) with effect on and from [insert date].

 

Our Revolving Credit Commitment is € [       ]. [Our Swingline Commitment is €[       ]](1)

 

We confirm to each Finance Party that we:

 

(a)                                 have made our own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in the Credit Agreement and have not relied exclusively on any information provided to us by a Finance Party in connection with any Finance Document; and

 

(b)                                 will continue to make our own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit Agreement or any Commitment is in force.

 

The Facility Office and address for notices of the Additional Lender for the purposes of Clause 33.2 (Addresses for notices) is:

 

[                                            ]

 

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

 

	
[ADDITIONAL   LENDER]
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
BARCLAYS BANK   PLC
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
VODAFONE GROUP   PLC
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    

 

(1)                                 Delete if not applicable

 

115

 

SCHEDULE 5

 

FORM OF CONFIDENTIALITY UNDERTAKING FROM NEW LENDER

 

To:                             [Existing Lender];

Vodafone Group Plc;

 

Dear Sirs,

 

We refer to the € [       ] Revolving Credit Agreement dated 28 March 2014 (as amended and/or restated from time to time) (the “Credit Agreement”) between, among others, Vodafone Group Plc and The Royal Bank of Scotland plc (as Agent).

 

This is a confidentiality undertaking referred to in Clause 28 (Disclosure of Information) of the Credit Agreement. A term defined in the Credit Agreement has the same meaning in this undertaking.

 

We are considering entering into contractual relations with [insert name of Lender] (the “Existing Lender”) and understand that it is a condition of our receiving information about Vodafone Group Plc and its related companies and any Finance Document and/or any information under or in connection with any Finance Document that we execute this undertaking.

 

1.                                      Confidentiality Undertaking

 

We undertake (a) to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2 below and to ensure that the Confidential Information is protected with security measures and a degree of care that would apply to our own confidential information, (b) to use the Confidential Information only for the Permitted Purpose, (c) to use all reasonable endeavours to ensure that any person to whom we pass any Confidential Information (unless disclosed under paragraph 2(b) below) acknowledges and complies with the provisions of this letter as if that person were also a party to it and (d) not to make enquiries of any member of the Consolidated Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Facilities, other than directly to the Group Treasurer of Vodafone.

 

2.                                      Permitted Disclosure

 

You agree that we may disclose Confidential Information:

 

(a)                                 to members of the Purchaser Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any auditors of members of the Purchaser Group;

 

(b)                                 where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, (ii) where required by the rules of any stock exchange on which the shares or other securities of any member of the Purchaser Group are listed or (iii) where required by the laws or regulations of any country with jurisdiction over the affairs of any member of the Purchaser Group.

 

3.                                      Notification of Required or Unauthorised Disclosure

 

We agree (to the extent permitted by law) to inform you of the full circumstances of any disclosure under paragraph 2(b) above or upon becoming aware that Confidential Information has been disclosed in breach of this letter.

 

116

 

4.                                      Return of Copies

 

If you so request in writing, we shall return all Confidential Information supplied by you to us and destroy or permanently erase all copies of Confidential Information made by us and use all reasonable endeavours to ensure that anyone to whom we have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made by them, in each case save to the extent that we or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with internal policy, or where the Confidential Information has been disclosed under paragraph 2(b) above.

 

5.                                      Continuing Obligations

 

The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us. Notwithstanding the previous sentence, the obligations in this letter shall cease (a) if we become a party to the Facilities or (b) twelve months after we have returned all Confidential Information supplied to us by you and destroyed or permanently erased all copies of Confidential Information made by us (other than any such Confidential Information or copies which have been disclosed under paragraph 2 above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not required to be returned or destroyed provided that any such Confidential Information retained in accordance with paragraph 4 shall remain confidential, subject to paragraph 2, for the period during which it is retained).

 

6.                                      Consequences of Breach, etc.

 

We acknowledge and agree that you or members of the Consolidated Group (each a “Relevant Person”) may be irreparably harmed by the breach of the terms hereof and damages may not be an adequate remedy; each Relevant Person may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by any member of the Purchaser Group.

 

7.                                      No Waiver; Amendments, etc.

 

This letter sets out the full extent of our obligations of confidentiality owed to you in relation to the information the subject of this letter. No failure or delay in exercising any right, power or privilege hereunder will operate as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privileges hereunder. The terms of this letter and our obligations hereunder may only be amended or modified by written agreement between us.

 

8.                                      Inside Information

 

We acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation relating to insider dealing and we undertake not to use any Confidential Information for any unlawful purpose.

 

9.                                      Nature of Undertakings

 

The undertakings given by us under this letter are given to you and (without implying any fiduciary obligations on your part) are also given for the benefit of each other member of the Consolidated Group.

 

117

 

10.                               Governing Law and Jurisdiction

 

This letter and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with the laws of England and the parties submit to the non-exclusive jurisdiction of the English courts.

 

11.                               Third Party Rights

 

(a)                                 Subject to paragraph 6 and to paragraph 9 the terms of this letter may be enforced and relied upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act 1999 is excluded.

 

(b)                                 Notwithstanding any provisions of this letter, the parties of this letter do not require the consent of any Relevant Person to rescind or vary this letter at any time.

 

12.                               Definitions

 

In this letter:

 

“Confidential Information” means any information relating to Vodafone, the Consolidated Group and/or the Facilities provided to us by you or any of your Affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or (b) is known by us before the date the information is disclosed to us by you or any of your affiliates or advisers or is lawfully obtained by us thereafter, other than from a source which is connected with the Consolidated Group and which, in either case, as far as we are aware, has not been obtained in violation of, and is not otherwise subject to, any obligation of confidentiality;

 

“Permitted Purpose” means considering and evaluating whether to enter into the Facilities; and

 

“Purchaser Group” means us, each of our holding companies and subsidiaries and each subsidiary of each of our holding companies (as each such term is defined in the Companies Act 1985).

 

Yours faithfully

 

 

For and on behalf of

[New Lender]

 

118

 

SCHEDULE 6

 

FORM OF ADDITIONAL LENDER’S FEE LETTER

 

Vodafone Group Plc (“Vodafone”)(2)

Vodafone House

The Connection

Newbury

Berkshire RG14 2FN

 

For the attention of [Director of Treasury]

 

[DATE]

 

Dear Sirs,

 

Fee Letter

 

You have asked us to participate in a € [       ] credit facility (the “Facility”) to provide support for the Consolidated Group’s continuing commercial paper programmes and for general corporate purposes of the Consolidated Group including, but not limited to, acquisitions.

 

Terms defined in the credit agreement dated 28 March 2014 (as amended and/or restated from time to time) between (inter alia) Vodafone and the financial institutions listed therein (the “Credit Agreement”) have the same meaning in this letter unless otherwise defined in this letter or the context otherwise requires.

 

This letter sets out the terms upon which you have agreed to pay a fee in relation to our participation in the Facility.

 

1.                                      Fee

 

You will pay to us for our account a non-refundable up-front fee equal to [       ] per cent. flat calculated on our Revolving Credit Commitment as at the date on which we become an Additional Lender pursuant to Clause 2.8 (Incremental revolving credit facility) of the Credit Agreement and payable 5 Business Days after that date;

 

2.                                      Finance Document

 

This Fee Letter is a Finance Document.

 

3.                                      No Set-off

 

All payments to be made under this Fee Letter will be calculated and made without (and free and clear of any deduction for) set-off or counterclaim).

 

4.                                      Governing Law

 

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

 

If you agree to the above please sign and return the enclosed copy of this letter.

 

(2)                                 Note: Vodafone to update as applicable.

 

119

 

This letter may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this letter.

 

	
Yours   faithfully,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[              ]
    	
 
    
	
For and on   behalf of
    	
 
    
	
[ADDITIONAL   LENDER]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
We   agree to the terms set out above.
    	
 
    
	
 
    	
 
    
	
[              ]
    	
 
    
	
For and on   behalf of
    	
 
    
	
Vodafone   Group Plc
    	
 
    

 

[DATE]

 

120

 

SCHEDULE 7

 

FORM OF INCREASE CONFIRMATION

 

To:                             BARCLAYS BANK PLC as Agent and Vodafone, for and on behalf of each Obligor

 

From:               [the Increase Lender] (the “Increase Lender”)

 

[DATE]

 

Vodafone Group Plc -€ [      ] Revolving Credit Agreement

dated 28 March 2014 (as amended and/or restated from time to time) (the “Credit Agreement”)

 

1.                                      We refer to the Credit Agreement. This agreement (the “Agreement”) shall take effect as an Increase Confirmation for the purpose of the Credit Agreement. Terms defined in the Credit Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2.                                      We refer to Clause 2.3 (Increase) of the Credit Agreement.

 

3.                                      The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the Schedule (the “Relevant Commitment”) as if it was an Original Lender under the Credit Agreement.

 

4.                                      The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment is to take effect (the “Increase Date”) is [      ].

 

5.                                      On the Increase Date, the Increase Lender becomes party to the relevant Finance Documents as a Lender.

 

6.                                      The Facility Office and address, fax number and attention details for notices to the Increase Lender for the purposes of Clause 33.2 (Addresses for notices) are set out in the Schedule.

 

7.                                      The Increase Lender expressly acknowledges the limitations on the Lenders’ obligations referred to in paragraph (f) of Clause 2.3 (Increase).

 

8.                                      The Increase Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [a Qualifying Lender (other than a Treaty Lender);]

 

(b)                                 [a Treaty Lender;]

 

(c)                                  [not a Qualifying Lender].(3)

 

[9]                                 This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

[9/10]               This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English Law.

 

[10/11]        This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

(3)                                 Delete as applicable - each Increase Lender is required to confirm which of these three categories it falls within.

 

121

 

THE SCHEDULE

 

Relevant Commitment/rights and obligations to be assumed by the Increase Lender

 

[insert relevant details]

 

[Facility office address, fax number and attention details for notices and account details for payments]

 

[Increase Lender]

 

By:

 

This Agreement is accepted as an Increase Confirmation for the purpose of the Credit Agreement by the Agent and the Increase Date is confirmed as [    ].

 

Agent

 

By:

 

122

 

SCHEDULE 8

 

COMMITMENT INCREASE AGREEMENT

 

To:                             BARCLAYS BANK PLC as Agent and Vodafone, for and on behalf of each Obligor

 

From:               Vodafone and [insert details of Existing Increasing Lender] (the Existing Increasing Lender)

 

[DATE]

 

Vodafone Group Plc -€ [      ] Revolving Credit Agreement

dated 28 March 2014 (as amended and/or restated from time to time) (the “Credit  Agreement”)

 

1.                                      We refer to the Agreement. This is a Commitment Increase Agreement. Terms defined in the Agreement have the same meaning in this Commitment Increase Agreement unless given a different meaning in this Commitment Increase Agreement.

 

2.                                      The proposed Increase Effective Date is [·].

 

3.                                      On the Increase Effective Date, the Existing Increasing Lender hereby increases its [Revolving Credit Commitment as a Lender] / [its Swingline Commitment as Swingline Lender] under the Agreement specified in the schedule to this Commitment Increase Agreement (the Schedule) in accordance with the terms of the Agreement.

 

4.                                      The administrative details of the Existing Increasing Lender remain as applicable to it as an existing Lender for the purposes of the Agreement.

 

5.                                      This Commitment Increase Agreement takes effect as a deed notwithstanding that a party may execute it under hand.

 

6.                                      This Commitment Increase Agreement has been executed and delivered as a deed on the date stated at the beginning of this Commitment Increase Agreement and is governed by English law.

 

7.                                      This Commitment Increase Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Commitment Increase Agreement.

 

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

 

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

 

123

 

Signatures

 

 

[                ]

 

 

For and on behalf of

 

	
Vodafone   Group Plc
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[                ]
    	
 
    
	
For and on   behalf of
    	
 
    
	
[EXISTING   INCREASE LENDER]
    	
 
    

 

[DATE]

The Increase Effective Date is confirmed by the Agent as [·].

[AGENT]

By:

 

(as Agent and for and on behalf of each of the parties to the Agreement other than the Obligors and the Existing Increasing Lender)

 

The Schedule

 

INCREASED COMMITMENT

 

[insert relevant details]

 

124

 

SIGNATURES

 

THIS AGREEMENT WAS SIGNED ON 28 MARCH 2014 AND THE SIGNATURE PAGES ARE NOT RESTATED.

 

125

 

SIGNATORIES

 

	
Company
    	
 
    
	
 
    	
 
    
	
VODAFONE   GROUP PLC
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Nick Read
    	
 
    
	
 
    	
Nick Read
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Neil Garrod
    	
 
    
	
 
    	
Neil Garrod
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

The Lenders

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED as Lender

 

	
By:
    	
/s/ Shaminda de   Silva
    	
 
    
	
 
    	
Shaminda de   Silva - VP
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

BANK OF CHINA LIMITED, LONDON BRANCH as Lender

 

	
By: 
    	
/s/ Shaoyang   Zhao
    	
 
    	

    
	
 
    	
Shaoyang Zhao
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
THE   BANK OF NEW YORK MELLON as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ William M.   Feathers
    	
 
    
	
 
    	
William M.   Feathers
    	
 
    
	
 
    	
Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. as Lender

 

	
By:
    	

    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
BARCLAYS   BANK PLC as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Michael   Joyner
    	
 
    
	
 
    	
Michael Joyner
    	
 
    
	
 
    	
Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
BBVA   IRELAND P.L.C. as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pablo   Vallejo
    	
 
    
	
 
    	
Pablo Vallejo
    	
 
    
	
 
    	
Managing   Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
BNP   PARIBAS SA, LONDON BRANCH as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ M.E. Molloy
    	
 
    
	
 
    	
M.E. Molloy
    	
 
    
	
 
    	
Managing Director
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ T. Reeves
    	
 
    
	
 
    	
T. Reeves
    	
 
    
	
 
    	
Global Relationship Manager
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

CITIBANK N.A., LONDON BRANCH as Lender

 

	
By:
    	

    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

COMMERZBANK AG, LONDON BRANCH as Lender

 

	
By:
    	

    	
 
    	
/s/ Kristin Ruud
    
	
 
    	
 
    	
Kristin Ruud
    
	
 
    	
 
    	
Director
    
	
 
    	
 
    	
Authorised   Signatory
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

DEUTSCHE BANK LUXEMBOURG S.A. as Lender

 

	
By:
    	
/s/ M. Heinemann
    	
 
    	
/s/ Banu Kologlu
    
	
 
    	
M. Heinemann
    	
 
    	
Banu Kologlu
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

GOLDMAN SACHS BANK USA as Lender

 

	
By: 
    	
/s/ Lorraine   Schmit
    	
 
    
	
 
    	
Lorraine Schmit
    	
 
    
	
 
    	
Authorised Signatory
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

HSBC BANK PLC as Lender

 

	
By:
    	

    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

ING BANK N.V., LONDON BRANCH as Lender

 

	
By:
    	
/s/ Francesca   Mosca
    	
 
    
	
 
    	
Francesca Mosca,   Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Siobhan   Walker
    	
 
    
	
 
    	
Siobhan Walker,   Managing Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

INTESA SANPAOLO S.P.A., LONDON BRANCH as Lender

 

	
By:
    	
/s/ Flavio   Stellini
    	
 
    	
/s/ Jessica   Rees-Hole
    
	
 
    	
Flavio Stellini
    	
 
    	
Jessica   Rees-Hole
    
	
 
    	
 
    	
 
    	
Senior Legal   Counsel
    
	
 
    	
 
    	
 
    	
Intesa Sanpaolo   S.p.A
    
	
 
    	
 
    	
 
    	
London Branch
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

JPMORGAN CHASE BANK, N.A., LONDON BRANCH as Lender

 

	
By:
    	
/s/ Andres Korin
    	
 
    
	
 
    	
Andres Korin
    	
 
    
	
 
    	
Vice President
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

LLOYDS BANK PLC as Lender

 

	
By: 
    	
/s/ Vijay   Chauhan
    	
 
    
	
 
    	
Vijay Chauhan
    	
 
    
	
 
    	
Associate   Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
MORGAN STANLEY BANK, N.A. as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Michael King
    	
 
    
	
 
    	
Michael King
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
SANTANDER UK PLC as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	

    	
 
    	

    
				

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
SOCIETE GENERALE, LONDON BRANCH as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Tom Hill
    	
 
    
	
 
    	
Tom Hill, Managing Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
STANDARD CHARTERED BANK as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Simon Derrick
    	
 
    
	
 
    	
Simon Derrick, Managing Director, Loan Syndications Europe
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
SUMITOMO MITSUI BANKING CORPORATION as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Thierry Muschs
    	
 
    	
/s/ Nadine Boudart
    
	
 
    	
Thierry Muschs
    	
 
    	
Nadine Boudart
    
	
 
    	
Managing Director
    	
 
    	
Assistant Vice President
    
					

 

[Signature Page to Amendment and Restatement Agreement]

 

 

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
THE TORONTO-DOMINION BANK as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Philip Bates
    	
 
    
	
 
    	
Philip Bates
    	
 
    
	
 
    	
MD, European Credit   Origination
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
UBS AG, LONDON BRANCH as   Lender
    
	
 
    	
 
    
	
By:
    	
/s/ Ryan Philpot
    	
 
    	
/s/ Graham Vance
    
	
 
    	
Ryan Philpot
    	
 
    	
Graham Vance
    
	
 
    	
Associate Director
    	
 
    	
Managing Director
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

	
UNICREDIT BANK AG, LONDON BRANCH as Lender
    
	
 
    	
 
    
	
By:
    	

    	
 
    	
   
    
				

 

[Signature Page to Amendment and Restatement Agreement]

 

 

Mandated Lead Arrangers

 

BANCO BILBAO VIZCAYA ARGENTARIA S.A. as Mandated Lead Arranger

 

	
By:
    	
/s/ Pedro   Garrido
    	
 
    	
/s/ Almudena   Lopez
    
	
 
    	
Pedro Garrido
    	
 
    	
Almudena Lopez
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED as Mandated Lead Arranger

 

	
By:
    	
/s/ Shaminda de   Silva
    	
 
    	
 
    
	
 
    	
Shaminda de   Silva – VP
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

BANK OF CHINA LIMITED, LONDON BRANCH as Mandated Lead Arranger

 

	
By:
    	

    	
 
    	

    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

BARCLAYS BANK PLC as Mandated Lead Arranger

 

	
By:
    	
/s/ Michael   Joyner
    	
 
    	
 
    
	
 
    	
Michael Joyner
    	
 
    	
 
    
	
 
    	
Director
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

BNP PARIBAS SA as Mandated Lead Arranger

 

	
By:
    	
/s/ M.E. Molloy
    	
 
    	
 
    
	
 
    	
M.E. Molloy
    	
 
    	
 
    
	
 
    	
Managing   Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ T. Reeves
    	
 
    	
 
    
	
 
    	
T. Reeves
    	
 
    	
 
    
	
 
    	
Global Relationship   Manager
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

CITIGROUP GLOBAL MARKETS LIMITED as Mandated Lead Arranger

 

	
By:
    	

    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

COMMERZBANK AG, LONDON BRANCH as Mandated Lead Arranger

 

	
By:
    	

    	
 
    	
/s/ Kristin Ruud
    
	
 
    	
 
    	
Kristin Ruud
   Director
   Authorised Signatory
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

DEUTSCHE BANK LUXEMBOURG S.A. as Mandated Lead Arranger

 

	
By:
    	
/s/ M. Heinemann
    	
 
    	
/s/ Banu Kologlu
    
	
 
    	
M. Heinemann
    	
 
    	
Banu Kologlu
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

GOLDMAN SACHS BANK USA as Mandated Lead Arranger

 

	
By:
    	
/s/ Lorraine Schmit
    	
 
    	
 
    
	
 
    	
Lorraine Schmit
    	
 
    	
 
    
	
 
    	
Authorised Signatory
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

HSBC BANK PLC as Mandated Lead Arranger

 

	
By:
    	

    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

ING BANK N.V., LONDON BRANCH as Mandated Lead Arranger

 

	
By:
    	
/s/ Francesca   Mosca
    	
 
    
	
 
    	
Francesca Mosca,   Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Siobhan   Walker
    	
 
    
	
 
    	
Siobhan Walker,   Managing Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

INTESA SANPAOLO S.P.A. as Mandated Lead Arranger

 

	
By:
    	
/s/ Flavio   Stellini
    	
 
    	
/s/ Jessica   Rees-Hole
    
	
 
    	
Flavio Stellini
    	
 
    	
Jessica   Rees-Hole
    
	
 
    	
 
    	
 
    	
Senior Legal   Counsel
    
	
 
    	
 
    	
 
    	
Intesa Sanpaolo S.p.A
    
	
 
    	
 
    	
 
    	
London Branch
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

J. P. MORGAN SECURITIES PLC as Mandated Lead Arranger

 

	
By:
    	
/s/ Andres Korin
    	
 
    
	
 
    	
Andres Korin
    	
 
    
	
 
    	
Vice President
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

LLOYDS BANK PLC as Mandated Lead Arranger

 

	
By:
    	
/s/ Vijay   Chauhan
    	
 
    
	
 
    	
Vijay Chauhan
    	
 
    
	
 
    	
Associate   Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

[Signature Page to Amendment and Restatement Agreement]

 

 

MORGAN STANLEY BANK INTERNATIONAL LIMITED as Mandated Lead Arranger

 

	
By:
    	
/s/ Mark Walton
    	
 
    
	
 
    	
Mark Walton
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

ROYAL BANK OF CANADA as Mandated Lead Arranger

 

	
By:
    	

    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

SANTANDER UK PLC as Mandated Lead Arranger

 

	
By:
    	

    	

    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

SOCIETE GENERALE, LONDON BRANCH as Mandated Lead Arranger

 

	
By:
    	
/s/ Tom Hill
    	
 
    
	
 
    	
Tom Hill,   Managing Director
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

SUMITOMO MITSUI BANKING CORPORATION as Mandated Lead Arranger

 

	
By:
    	
/s/ Thierry   Muschs
    	
 
    	
/s/ Nadine   Boudart
    
	
 
    	
Thierry Muschs
    	
 
    	
Nadine Boudart
    
	
 
    	
Managing   Director
    	
 
    	
Assistant Vice   President
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. as Mandated Lead Arranger

 

	
By:
    	

    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

 

[Signature Page to Amendment and Restatement Agreement]

 

 

UBS LIMITED as Mandated Lead Arranger

 

	
By:
    	
/s/ Ryan Philpot
    	
 
    	
/s/ Graham Vance
    
	
 
    	
Ryan Philpot
    	
 
    	
Graham Vance
    
	
 
    	
Associate   Director
    	
 
    	
Managing   Director
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

UNICREDIT BANK AG as Mandated Lead Arranger

 

	
By:
    	

    	
 
    	

    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

Co-Arrangers

 

THE BANK OF NEW YORK MELLON as Co-Arranger

 

	
By:
    	
/s/ William M.   Feathers
    	
 
    	
 
    
	
 
    	
William M. Feathers
    	
 
    	
 
    
	
 
    	
Director
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

STANDARD CHARTERED BANK as Co-Arranger

 

	
By:
    	
/s/ Simon   Derrick
    	
 
    	
 
    
	
 
    	
Simon Derrick,   Managing Director, Loan Syndications Europe
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

THE TORONTO-DOMINION BANK as Co-Arranger

 

	
By:
    	
/s/ Philip Bates
    	
 
    	
 
    
	
 
    	
Philip Bates
    	
 
    	
 
    
	
 
    	
MD, European   Credit Origination
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

Exiting Lenders

 

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED as Exiting Lender

 

	
By:
    	
/s/ Helen Mason
    	
 
    	
 
    
	
 
    	
Helen Mason
    	
 
    	
 
    
	
 
    	
Head of   Corporate & Transaction Banking
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

BANCO DE SABADELL S.A., LONDON BRANCH as Exiting Lender

 

	
By:
    	

    	
 
    	

    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

CHINA CONSTRUCTION BANK CORPORATION LONDON BRANCH as Exiting Lender

 

	
By:
    	

    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

NATIONAL AUSTRALIA BANK LIMITED ABN 12 004 044 937 as Exiting Lender

 

	
By:
    	

    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

Exiting Agent

 

 

[Signature Page to Amendment and Restatement Agreement]

 

 

Exiting Euro Swingline Agent

 

 

[Signature Page to Amendment and Restatement Agreement]

 

 

Successor Agent

 

BARCLAYS BANK PLC

 

	
By:
    	
/s/ Michael   Joyner
    	
 
    	
 
    
	
 
    	
Michael Joyner
    	
 
    	
 
    
	
 
    	
Director
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

 

 

Successor Euro Swingline Agent

 

BARCLAYS BANK PLC

 

	
By:
    	
/s/ Michael   Joyner
    	
 
    	
 
    
	
 
    	
Michael Joyner
    	
 
    	
 
    
	
 
    	
Director
    	
 
    	
 
    

 

[Signature Page to Amendment and Restatement Agreement]

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