Document:

EXHIBIT 10.12

 

THIRD
AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD
AMENDMENT TO CREDIT AGREEMENT (“Amendment”) is made and entered into by and
between USANA Health Sciences, Inc., a Utah corporation (“Borrower”) and Bank
of America, N.A., a national banking association (“Bank”).

 

Recitals

 

A.    Borrower and Bank are parties to that
certain Credit Agreement dated March 26, 2001, as amended by that certain
letter agreement dated January 25, 2002, by that certain First Amendment
to Credit Agreement dated as of April 17, 2002, by that certain letter
agreement dated May 8, 2002, by that certain letter agreement dated
July 23, 2002 and by that certain Second Amendment to Credit Agreement
dated as of August 21, 2002 (as amended or otherwise modified, the “Credit
Agreement”) pursuant to which, among other things, Bank made available a
revolving line of credit in the amount of $12,500,000 and a term loan to
Borrower in the amount of $10,000,000.

 

B.    Borrower has requested that Bank amend the
Credit Agreement to permit Borrower to purchase, retire, or redeem its capital
stock in an additional aggregate amount of $5,000,000, which Bank has agreed to
do on the terms and conditions herein contained.

 

NOW
THEREFORE, in consideration of the foregoing, Borrower and Bank agree as follows:

 

Agreement

 

1.     DEFINED TERMS. 
Capitalized terms not otherwise defined herein shall have the meanings
given in the Credit Agreement.

 

2.     AMENDMENTS TO CREDIT AGREEMENT. 
Section 9.6 and Section 9.7 of the Loan Agreement are amended
and restated to read as follows:

 

9.6      Capital Structure.  Purchase, retire, or
redeem any of its capital stock or otherwise effect any change in Borrower’s
capital structure, except that:

 

(a)   at any time during the period commencing
May 8, 2002 and ending December 31, 2003, Borrower may purchase,
retire, or redeem its capital stock in an aggregate amount not to exceed
(i) $12,000,000 minus (ii) the cumulative amount of
cash dividends paid by Borrower on its capital stock during such period; and

 

(b)   at any time after December 31, 2003,
Borrower may purchase, retire, or redeem its capital stock in an aggregate
amount not to exceed the sum of (i) 25% of the cumulative net income of
Borrower for all fiscal quarters ended after December 31, 2003 minus
(ii) the cumulative amount of cash dividends paid by Borrower on its
capital stock after December 31, 2003.

 

9.7      Dividends.  Declare or pay any
dividend on any class of Borrower’s capital stock, except that:

 

(a)   Borrower may declare or pay dividends payable
in the form of its capital stock;

 

(b)   at any time during the period commencing
May 8, 2002 and ending December 31, 2003, Borrower may declare and
pay dividends in an aggregate amount not to exceed (i) $12,000,000 minus
(ii) the cumulative amount of its capital stock that Borrower purchased,
retired, or redeemed during such period; and

 

(c)   at any time after December 31, 2003,
Borrower may purchase, retire, or redeem its capital stock in an aggregate
amount not to exceed the sum of (i) 25% of the cumulative net income of
Borrower for all fiscal quarters ended after December 31, 2003 minus
(ii) the 

 

 

cumulative
amount of cash dividends paid by Borrower on its capital stock after
December 31, 2003.

 

3.     CONDITIONS TO EFFECTIVENESS. 
Notwithstanding anything contained herein to the contrary, this
Amendment shall not become effective until each of the following conditions is
fully and simultaneously satisfied:

 

(a)           Delivery
of Amendment.  Borrower and Lender
shall have executed and delivered counterparts of this Amendment to each other;

 

(b)           Corporate
Authority.  Lender shall have
received such evidence of corporate authority and action as Lender shall
request demonstrating that the execution, delivery and performance of this
Amendment has been duly authorized by Borrower;

 

(c)           Amendment
Fee.  Lender shall have received
payment of an amendment fee in the amount of $15,000, which fee shall be deemed
fully earned when due and non-refundable when paid;

 

(d)           Representations
True; No Default.  The
representations of Borrower as set forth in Article 7 of the Credit
Agreement shall be true on and as of the date of this Amendment with the same
force and effect as if made on and as of this date.  No Event of Default and no event which, with notice or lapse of
time or both, would constitute an Event of Default, shall have occurred and be
continuing or will occur as a result of the execution of this Amendment; and

 

(e)           Other
Documents.  Lender shall have
received such other documents, instruments, and undertakings as Lender may
reasonably request.

 

4.     REPRESENTATIONS AND WARRANTIES. 
Borrower hereby represents and warrants to Lender that each of the
representations and warranties set forth in Article 7 of the Credit
Agreement is true and correct in each case as if made on and as of the date of
this Amendment and Borrower expressly agrees that it shall be an additional
Event of Default under the Credit Agreement if any representation or warranty
made hereunder shall prove to have been incorrect in any material respect when
made.

 

5.     NO FURTHER AMENDMENT. 
Except as expressly modified by this Amendment, the Credit Agreement and
the other Loan Documents shall remain unmodified and in full force and effect
and the parties hereby ratify their respective obligations thereunder.

 

6.     RESERVATION OF RIGHTS.  Borrower
acknowledges and agrees that the execution and delivery by Bank of this
Amendment shall not be deemed to create a course of dealing or otherwise
obligate Bank to forbear or execute similar amendments under the same or
similar circumstances in the future.

 

7.     MISCELLANEOUS.

 

(a)           This Amendment comprises the entire
agreement of the parties with respect to the subject matter hereof and
supersedes all prior oral or written agreements, representations or
commitments.  Without limiting the generality
of the foregoing, with respect to Section 9.6 of the Credit Agreement,
this Amendment incorporates and supercedes the terms of that certain letter
agreement dated May 8, 2002 made by Bank to Borrower, that certain First
Amendment to Credit Agreement dated as of April 17, 2002 by and between
Bank to Borrower, that certain letter agreement dated July 23, 2002 made
by Bank to Borrower and that certain Second Amendment to Credit Agreement dated
as of August 21, 2002 by and between Bank to Borrower.

 

(b)           This Amendment may be executed in any
number of counterparts, all of which taken together shall constitute one and
the same Agreement.

 

(c)           This Amendment and the rights and
obligations of the parties hereto shall be construed and interpreted in
accordance with the internal laws of the State of Washington.

 

EXECUTED
AND DELIVERED by the duly authorized officers of the parties as of the date
first above written.

Dated as of
December 27, 2002.

 

2

 

	
  Borrower:

  	
   

  	
  Bank:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  USANA
  HEALTH SCIENCES, INC.

  	
   

  	
  BANK
  OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Gilbert A. Fuller

  	
   

  	
  /s/ Mark N. Crawford

  	
   

  
	
  Gilbert A. Fuller

  	
   

  	
  Mark N. Crawford

  	
   

  
	
  Senior Vice President
  and Chief Financial Officer

  	
   

  	
  Senior Vice President

  	
   

  

 

3Exhibit 10.3

 

	

  

  	

  LIMITED LIABILITY PARTNERSHIP

  
	

   

  	

   

  
	

   

  	

  CONFORMED

  COPY

  
	

   

  	

  (Incorporating amendments made

  pursuant to an amendment agreement 

  dated 16 May 2001, a syndication and amendment agreement dated 14 June 2001,

  an amendment agreement dated 17 January 2002,

  an amendment agreement dated 23 December 2002 and an amendment agreement

  dated 11 February 2003)

  

 

 

EUR1,050,000,000

 

And

 

$540,000,000

 

SENIOR

FACILITIES AGREEMENT

dated  28

April 2001

 

for

 

CORNELIA

VERWALTUNGSGESELLSCHAFT MBH

with

GOLDMAN SACHS INTERNATIONAL

as

GLOBAL CO-ORDINATOR

and

GOLDMAN SACHS INTERNATIONAL

BAYERISCHE HYPO-UND VEREINSBANK AG

J.P. MORGAN PLC

And

THE ROYAL BANK

OF SCOTLAND PLC 

as

JOINT LEAD ARRANGERS

 

With

 

CHASE

MANHATTAN INTERNATIONAL LIMITED

acting as

Agent

 

 

SENIOR

MULTICURRENCY TERM AND REVOLVING FACILITIES AGREEMENT

 

 

Note:                   This Agreement is

entered into on the basis that it will have the benefit of and be

subject to the terms of an Intercreditor Deed.

 

 

CONTENTS

CLAUSE

 

	

  1.

  	

  Definitions And

  Interpretation

  
	

   

  	

  1.1

  	

  Definitions

  
	

   

  	

  1.2

  	

  Construction

  
	

   

  	

  1.3

  	

  Currency Symbols And

  Definitions

  
	

   

  	

  1.4

  	

  Third Party

  Rights

  
	

   

  	

   

  	

   

  
	

  2.

  	

  The Facilities

  
	

   

  	

  2.1

  	

  The Facilities

  
	

   

  	

  2.2

  	

  Lenders’

  And Fronting Banks’ Rights And Obligations

  
	

   

  	

  2.3

  	

  Ancillary

  Lenders’ Rights And Obligations

  
	

   

  	

  2.4

  	

  Ancillary

  Facilities

  
	

   

  	

   

  	

   

  
	

  3.

  	

  Purpose

  
	

   

  	

  3.1

  	

  Purpose

  
	

   

  	

  3.2

  	

  Monitoring

  
	

   

  	

   

  	

   

  
	

  4.

  	

  Conditions Of Utilisation

  
	

   

  	

  4.1

  	

  Initial Conditions

  Precedent

  
	

   

  	

  4.2

  	

  Further Conditions

  Precedent

  
	

   

  	

  4.3

  	

  Conditions

  Relating To Optional Currencies And The Euro Unit

  
	

   

  	

  4.4

  	

  Maximum

  Number Of Loans, Letters Of Credit Or Bank Guarantees

  
	

   

  	

  4.5

  	

  Order Of Drawing Of

  Facilities

  
	

   

  	

  4.6

  	

  Simultaneous

  Drawdown Of Certain Facilities

  
	

   

  	

  4.7

  	

  Drawing Of Term C

  Facilities

  
	

   

  	

   

  	

   

  
	

  5.

  	

  Utilisation

  
	

   

  	

  5.1

  	

  Delivery Of A

  Utilisation Request

  
	

   

  	

  5.2

  	

  Completion Of A

  Utilisation Request

  
	

   

  	

  5.3

  	

  Currency

  And Amount

  
	

   

  	

  5.4

  	

  Lenders’ And

  Fronting Banks’ Participation

  
	

   

  	

  5.5

  	

  Completion Of Letters

  Of Credit

  
	

   

  	

  5.6

  	

  Renewal

  Of A Letter Of Credit Or Bank Guarantee

  
	

   

  	

  5.7

  	

  Restrictions

  On Participation In Letters Of Credit

  
	

   

  	

  5.8

  	

  Restrictions

  On Participation In Bank Guarantees

  
	

   

  	

   

  	

   

  
	

  6.

  	

  Optional Currencies

  
	

   

  	

  6.1

  	

  Selection

  Of Currency

  
	

   

  	

  6.2

  	

  Unavailability Of A

  Currency

  
	

   

  	

  6.3

  	

  Change Of

  Currency

  
	

   

  	

  6.4

  	

  Same

  Optional Currency During Successive Interest Periods

  
	

   

  	

  6.5

  	

  Agent’s

  Calculations

  
	

   

  	

   

  	

   

  
	

  7.

  	

  Repayment

  
	

   

  	

  7.1

  	

  Repayment Of

  Term Disposal Facility Loans

  
	

   

  	

  7.2

  	

  Repayment Of Term A

  Facility Loans

  
	

   

  	

  7.3

  	

  Repayment Of

  Term B Dollar Facility Loans

  
	

   

  	

  7.4

  	

  Repayment Of

  Term B Euro Facility Loans

  
	

   

  	

  7.5

  	

  Repayment Of

  Term C Euro Facility Loans

  
	

   

  	

  7.6

  	

  Repayment Of

  Term C Dollar Facility Loans

  

 

 

	

   

  	

  7.7

  	

  Repayment Of

  Revolving Facility Loans

  
	

   

  	

  7.8

  	

  Change Of

  Borrower

  
	

   

  	

   

  	

   

  
	

  8.

  	

  Borrower’s

  Liabilities In Relation To Letters Of Credit And Bank Guarantees

  
	

   

  	

  8.1

  	

  Demands

  Under Letters Of Credit And Bank Guarantees

  
	

   

  	

  8.2

  	

  Borrowers’

  Indemnity To Fronting Banks

  
	

   

  	

  8.3

  	

  Borrowers’ Indemnity To

  Lenders

  
	

   

  	

  8.4

  	

  Preservation

  Of Rights

  
	

   

  	

  8.5

  	

  Settlement

  Conditional

  
	

   

  	

  8.6

  	

  Right

  To Make Payments Under Letters Of Credit And Bank Guarantees

  
	

   

  	

   

  	

   

  
	

  9.

  	

  Prepayment And Cancellation

  
	

   

  	

  9.1

  	

  Illegality

  
	

   

  	

  9.2

  	

  Change Of

  Control

  
	

   

  	

  9.3

  	

  Flotation Or

  Sale

  
	

   

  	

  9.4

  	

  Excess Cash

  Flow

  
	

   

  	

  9.5

  	

  Asset Disposals

  
	

   

  	

  9.6

  	

  Insurance

  Proceeds

  
	

   

  	

  9.7

  	

  Acquisition Recovery

  Proceeds

  
	

   

  	

  9.8

  	

  Application Of Prepayments

  
	

   

  	

  9.9

  	

  Prepayment Escrow Accounts

  
	

   

  	

  9.10

  	

  Voluntary

  Cancellation

  
	

   

  	

  9.11

  	

  Voluntary

  Prepayment Of Term Facility Loans

  
	

   

  	

  9.12

  	

  Voluntary

  Prepayment Of Revolving Facility Loans

  
	

   

  	

  9.13

  	

  Prepayment

  Premium

  
	

   

  	

  9.14

  	

  Right

  Of Repayment And Cancellation In Relation To A Single Lender Or Fronting Bank

  
	

   

  	

  9.15

  	

  Restrictions

  
	

   

  	

  9.16

  	

  Automatic

  Cancellation

  
	

   

  	

   

  	

   

  
	

  10.

  	

  Interest

  
	

   

  	

  10.1

  	

  Calculation

  Of Interest

  
	

   

  	

  10.2

  	

  Margin Ratchets

  
	

   

  	

  10.3

  	

  Margin Changes

  
	

   

  	

  10.4

  	

  Default Margin

  
	

   

  	

  10.5

  	

  Payment

  Of Interest

  
	

   

  	

  10.6

  	

  Default

  Interest

  
	

   

  	

  10.7

  	

  Notification Of Rates

  Of Interest

  
	

   

  	

   

  	

   

  
	

  11.

  	

  Interest Periods And Terms

  
	

   

  	

  11.1

  	

  Selection Of

  Interest Periods And Terms

  
	

   

  	

  11.2

  	

  Changes To Interest Periods

  
	

   

  	

  11.3

  	

  Non-Business

  Days

  
	

   

  	

  11.4

  	

  Consolidation

  And Division Of Term Facility Loans

  
	

   

  	

   

  	

   

  
	

  12.

  	

  Changes To The

  Calculation Of Interest

  
	

   

  	

  12.1

  	

  Absence

  Of Quotations

  
	

   

  	

  12.2

  	

  Market

  Disruption

  
	

   

  	

  12.3

  	

  Alternative

  Basis Of Interest Or Funding

  
	

   

  	

  12.4

  	

  Break Costs

  
	

   

  	

   

  	

   

  
	

  13.

  	

  Fees

  
	

   

  	

  13.1

  	

  Commitment Fee

  
	

   

  	

  13.2

  	

  Letter Of Credit Commission

  

 

 

	

   

  	

  13.3

  	

  Bank Guarantee Commission

  
	

   

  	

  13.4

  	

  Fronting Bank

  Fee

  
	

   

  	

  13.5

  	

  Arrangement Fee

  
	

   

  	

  13.6

  	

  Agency Fee

  
	

   

  	

  13.7

  	

  Security

  Trustee Fee

  
	

   

  	

   

  	

   

  
	

  14.

  	

  Tax Gross Up And

  Indemnities

  
	

   

  	

  14.1

  	

  Definitions

  
	

   

  	

  14.2

  	

  Tax Gross-Up

  
	

   

  	

  14.3

  	

  Tax Indemnity

  
	

   

  	

  14.4

  	

  Tax Credit

  
	

   

  	

  14.5

  	

  Stamp Taxes

  
	

   

  	

  14.6

  	

  Value Added Tax

  
	

   

  	

   

  	

   

  
	

  15.

  	

  Increased Costs

  
	

   

  	

  15.1

  	

  Increased Costs

  
	

   

  	

  15.2

  	

  Increased

  Cost Claims

  
	

   

  	

  15.3

  	

  Exceptions

  
	

   

  	

   

  	

   

  
	

  16.

  	

  Other Indemnities

  
	

   

  	

  16.1

  	

  Currency

  Indemnity

  
	

   

  	

  16.2

  	

  Other Indemnities

  
	

   

  	

  16.3

  	

  Indemnity

  To The Agent

  
	

   

  	

   

  	

   

  
	

  17.

  	

  Mitigation By The Lenders

  
	

   

  	

  17.1

  	

  Mitigation

  
	

   

  	

  17.2

  	

  Limitation

  Of Liability

  
	

   

  	

   

  	

   

  
	

  18.

  	

  Costs And Expenses

  
	

   

  	

  18.1

  	

  Transaction

  Expenses

  
	

   

  	

  18.2

  	

  Amendment Costs

  
	

   

  	

  18.3

  	

  Enforcement

  Costs

  
	

   

  	

   

  	

   

  
	

  19.

  	

  Guarantee And Indemnity

  
	

   

  	

  19.1

  	

  Guarantee And

  Indemnity

  
	

   

  	

  19.2

  	

  Continuing

  Guarantee

  
	

   

  	

  19.3

  	

  Reinstatement

  
	

   

  	

  19.4

  	

  Waiver Of

  Defences

  
	

   

  	

  19.5

  	

  Immediate

  Recourse

  
	

   

  	

  19.6

  	

  Appropriations

  
	

   

  	

  19.7

  	

  Deferral Of Guarantors’

  Rights

  
	

   

  	

  19.8

  	

  Additional

  Security

  
	

   

  	

  19.9

  	

  Limitation On

  German Obligor Guarantee

  
	

   

  	

  19.10

  	

  Limitation On Us

  Obligor Guarantee

  
	

   

  	

  19.11

  	

  Limitation On

  French Obligor Guarantee

  
	

   

  	

  19.12

  	

  Limitation On

  Luxembourg Obligor

  
	

   

  	

  19.13

  	

  Third Party

  Rights Of Hedge Counterparties

  
	

   

  	

   

  	

   

  
	

  20.

  	

  Representations

  
	

   

  	

  20.1

  	

  Signing

  Representations Of The Company

  
	

   

  	

  20.2

  	

  Closing

  Representations

  
	

   

  	

  20.3

  	

  Other

  Representations

  
	

   

  	

  20.4

  	

  Status

  
	

   

  	

  20.5

  	

  Binding

  Obligations

  
	

   

  	

  20.6

  	

  Non-Conflict With

  Other Obligations

  

 

 

	

   

  	

  20.7

  	

  Power And

  Authority

  
	

   

  	

  20.8

  	

  Validity And

  Admissibility In Evidence

  
	

   

  	

  20.9

  	

  Governing Law And

  Enforcement

  
	

   

  	

  20.10

  	

  No

  Filing Or Stamp Taxes

  
	

   

  	

  20.11

  	

  No Default

  
	

   

  	

  20.12

  	

  No Misleading Information

  
	

   

  	

  20.13

  	

  Financial

  Statements

  
	

   

  	

  20.14

  	

  Financial

  Year End

  
	

   

  	

  20.15

  	

  Pari Passu

  Ranking

  
	

   

  	

  20.16

  	

  No Proceedings

  Pending Or Threatened

  
	

   

  	

  20.17

  	

  Environmental

  Compliance

  
	

   

  	

  20.18

  	

  Environmental

  Claims

  
	

   

  	

  20.19

  	

  Taxation

  
	

   

  	

  20.20

  	

  Security And

  Financial Indebtedness

  
	

   

  	

  20.21

  	

  Security

  Interests

  
	

   

  	

  20.22

  	

  Intellectual

  Property

  
	

   

  	

  20.23

  	

  Good

  Title To Assets

  
	

   

  	

  20.24

  	

  Reports

  
	

   

  	

  20.25

  	

  Business Plan

  
	

   

  	

  20.26

  	

  Budgets

  
	

   

  	

  20.27

  	

  Group Structure

  
	

   

  	

  20.28

  	

  Ownership

  Of Obligors

  
	

   

  	

  20.29

  	

  Consents

  And Approvals

  
	

   

  	

  20.30

  	

  Acquisition

  Documents

  
	

   

  	

  20.31

  	

  Issue

  Of Share Capital

  
	

   

  	

  20.32

  	

  No Trading

  
	

   

  	

  20.33

  	

  Pensions

  
	

   

  	

  20.34

  	

  Erisa And Multiemployer

  Plans

  
	

   

  	

  20.35

  	

  Margin Stock

  
	

   

  	

  20.36

  	

  Investment

  Companies

  
	

   

  	

   

  	

   

  
	

  21.

  	

  Information Undertakings

  
	

   

  	

  21.1

  	

  Financial Statements

  
	

   

  	

  21.2

  	

  Compliance

  Certificates

  
	

   

  	

  21.3

  	

  Budgets

  
	

   

  	

  21.4

  	

  Requirements As

  To Financial Statements

  
	

   

  	

  21.5

  	

  Information: Miscellaneous

  
	

   

  	

  21.6

  	

  Notification

  Of Default

  
	

   

  	

  21.7

  	

  Erisa Related Information

  
	

   

  	

   

  	

   

  
	

  22.

  	

  Financial Covenants

  
	

   

  	

  22.1

  	

  Financial

  Definitions

  
	

   

  	

  22.2

  	

  Financial

  Condition

  
	

   

  	

  22.3

  	

  Capital

  Expenditure

  
	

   

  	

  22.4

  	

  Financial

  Testing

  
	

   

  	

  22.5

  	

  Adjustments

  
	

   

  	

   

  	

   

  
	

  23.

  	

  General Undertakings

  
	

   

  	

  23.1

  	

  Authorisations

  
	

   

  	

  23.2

  	

  Compliance

  With Laws

  
	

   

  	

  23.3

  	

  Negative Pledge

  
	

   

  	

  23.4

  	

  Loans

  And Guarantees

  
	

   

  	

  23.5

  	

  Financial

  Indebtedness

  

 

 

	

   

  	

  23.6

  	

  Acquisitions

  
	

   

  	

  23.7

  	

  Joint

  Ventures And Non Wholly-Owned Subsidiaries

  
	

   

  	

  23.8

  	

  Joint Ventures

  
	

   

  	

  23.9

  	

  Dividends And Distributions

  
	

   

  	

  23.10

  	

  Subordinated

  Debt

  
	

   

  	

  23.11

  	

  Disposals

  
	

   

  	

  23.12

  	

  Merger

  
	

   

  	

  23.13

  	

  Change Of

  Business

  
	

   

  	

  23.14

  	

  Insurance

  
	

   

  	

  23.15

  	

  Environmental

  Compliance

  
	

   

  	

  23.16

  	

  Environmental

  Claims

  
	

   

  	

  23.17

  	

  Taxation

  
	

   

  	

  23.18

  	

  Security

  
	

   

  	

  23.19

  	

  Pensions

  
	

   

  	

  23.20

  	

  Access

  
	

   

  	

  23.21

  	

  Preservation

  Of Assets

  
	

   

  	

  23.22

  	

  Intellectual Property

  
	

   

  	

  23.23

  	

  Vendor

  Warranties And Acquisition Closing Conditions

  
	

   

  	

  23.24

  	

  Amendments

  
	

   

  	

  23.25

  	

  Transactions With

  Related Parties

  
	

   

  	

  23.26

  	

  Fees

  And Commissions

  
	

   

  	

  23.27

  	

  Treasury

  Transactions

  
	

   

  	

  23.28

  	

  The Acquisition

  
	

   

  	

  23.29

  	

  Hedging

  
	

   

  	

  23.30

  	

  Guarantor Group

  And Security Coverage

  
	

   

  	

  23.31

  	

  Accounting Reference Date

  
	

   

  	

  23.32

  	

  Revised

  Group Structure

  
	

   

  	

  23.33

  	

  Syndication

  
	

   

  	

  23.34

  	

  Federal Reserve Regulations

  
	

   

  	

  23.35

  	

  Compliance

  With Erisa

  
	

   

  	

  23.36

  	

  Limitation

  On The Lenders’ Control Over German Obligors

  
	

   

  	

  23.37

  	

  Conditions

  Subsequent

  
	

   

  	

  23.38

  	

  Total

  Debt Relief Amount

  
	

   

  	

  23.39

  	

  Debtco Exit

  Date

  
	

   

  	

  23.40

  	

  Payments Under

  Debtco Intra-Group Loans

  
	

   

  	

   

  	

   

  
	

  24.

  	

  Events Of Default

  
	

   

  	

  24.1

  	

  Non-Payment

  
	

   

  	

  24.2

  	

  Financial

  Covenants

  
	

   

  	

  24.3

  	

  Other

  Obligations

  
	

   

  	

  24.4

  	

  Misrepresentation

  
	

   

  	

  24.5

  	

  Cross Default

  
	

   

  	

  24.6

  	

  Insolvency

  
	

   

  	

  24.7

  	

  Insolvency

  Proceedings

  
	

   

  	

  24.8

  	

  Creditors’

  Process

  
	

   

  	

  24.9

  	

  Transaction

  Security

  
	

   

  	

  24.10

  	

  Other

  Indebtedness

  
	

   

  	

  24.11

  	

  Subordination

  Agreements

  
	

   

  	

  24.12

  	

  Unlawfulness

  
	

   

  	

  24.13

  	

  Repudiation

  
	

   

  	

  24.14

  	

  Material

  Adverse Change

  
	

   

  	

  24.15

  	

  Acceleration

  

 

 

	

   

  	

  24.16

  	

  Closing Period

  
	

   

  	

  24.17

  	

  Clean-Up Period

  
	

   

  	

   

  	

   

  
	

  25.

  	

  Changes To The Lenders

  
	

   

  	

  25.1

  	

  Assignments

  And Transfers By The Lenders

  
	

   

  	

  25.2

  	

  Conditions Of

  Assignment Or Transfer

  
	

   

  	

  25.3

  	

  Assignment Or Transfer Fee

  
	

   

  	

  25.4

  	

  Limitation

  Of Responsibility Of Existing Lenders

  
	

   

  	

  25.5

  	

  Procedure

  For Transfer

  
	

   

  	

  25.6

  	

  Sub-Participations By

  Lenders

  
	

   

  	

  25.7

  	

  Disclosure Of Information

  
	

   

  	

   

  	

   

  
	

  26.

  	

  Changes To The Obligors

  
	

   

  	

  26.1

  	

  Assignment And

  Transfers By Obligors

  
	

   

  	

  26.2

  	

  Additional

  Borrowers

  
	

   

  	

  26.3

  	

  Resignation

  Of A Borrower

  
	

   

  	

  26.4

  	

  Additional

  Guarantors

  
	

   

  	

  26.5

  	

  Repetition Of

  Representations

  
	

   

  	

  26.6

  	

  Resignation Of A Guarantor

  
	

   

  	

  26.7

  	

  Transfers On

  Debtco Introduction Date

  
	

   

  	

  26.8

  	

  Transfers On Debtco Exit

  Date

  
	

   

  	

  26.9

  	

  German

  Security And Debtco Introduction Date

  
	

   

  	

  26.10

  	

  Company

  Ceases To Be Party On Mgg Accession

  
	

   

  	

  26.11

  	

  Mgg Accession

  
	

   

  	

   

  	

   

  
	

  27.

  	

  Role

  Of The Agent And The Arrangers And The Obligor’s Agent

  
	

   

  	

  27.1

  	

  Appointment

  Of The Agent

  
	

   

  	

  27.2

  	

  Duties Of

  The Agent

  
	

   

  	

  27.3

  	

  Role

  Of The Arrangers

  
	

   

  	

  27.4

  	

  No

  Fiduciary Duties

  
	

   

  	

  27.5

  	

  Business

  With The Group

  
	

   

  	

  27.6

  	

  Rights And

  Discretions Of The Agent

  
	

   

  	

  27.7

  	

  Majority Lenders’

  Instructions

  
	

   

  	

  27.8

  	

  Responsibility For

  Documentation

  
	

   

  	

  27.9

  	

  Exclusion

  Of Liability

  
	

   

  	

  27.10

  	

  Lenders’ Indemnity To

  The Agent

  
	

   

  	

  27.11

  	

  Resignation

  Of The Agent

  
	

   

  	

  27.12

  	

  Confidentiality

  
	

   

  	

  27.13

  	

  Relationship With The

  Lenders

  
	

   

  	

  27.14

  	

  Credit

  Appraisal By The Lenders And The Fronting Banks

  
	

   

  	

  27.15

  	

  Reference Banks

  
	

   

  	

  27.16

  	

  Obligor’s Agent

  
	

   

  	

  27.17

  	

  Reliance,

  Priority And Engagement Letters

  
	

   

  	

   

  	

   

  
	

  28.

  	

  The Lenders And The

  Fronting Banks

  
	

   

  	

  28.1

  	

  Lenders’

  Indemnity

  
	

   

  	

  28.2

  	

  Direct

  Participation

  
	

   

  	

  28.3

  	

  Obligations Not Discharged

  
	

   

  	

  28.4

  	

  Settlement Conditional

  
	

   

  	

  28.5

  	

  Exercise Of

  Rights

  
	

   

  	

  28.6

  	

  Beneficiary

  A Lender

  
	

   

  	

   

  	

   

  
	

  29.

  	

  Conduct Of

  Business By The Finance Parties

  

 

 

	

  30.

  	

  Sharing Among The Lenders

  
	

   

  	

  30.1

  	

  Payments

  To Lenders

  
	

   

  	

  30.2

  	

  Redistribution Of Payments

  
	

   

  	

  30.3

  	

  Recovering Lender’s Rights

  
	

   

  	

  30.4

  	

  Reversal Of Redistribution

  
	

   

  	

  30.5

  	

  Exceptions

  
	

   

  	

   

  	

   

  
	

  31.

  	

  Payment Mechanics

  
	

   

  	

  31.1

  	

  Payments

  To The Agent

  
	

   

  	

  31.2

  	

  Distributions By The Agent

  
	

   

  	

  31.3

  	

  Distributions To An Obligor

  
	

   

  	

  31.4

  	

  Clawback

  
	

   

  	

  31.5

  	

  Partial

  Payments

  
	

   

  	

  31.6

  	

  No

  Set-Off By Obligors

  
	

   

  	

  31.7

  	

  Business Days

  
	

   

  	

  31.8

  	

  Currency

  Of Account

  
	

   

  	

  31.9

  	

  Change Of Currency

  
	

   

  	

   

  	

   

  
	

  32.

  	

  Set-Off

  
	

   

  	

   

  
	

  33.

  	

  Notices

  
	

   

  	

  33.1

  	

  Communications In Writing

  
	

   

  	

  33.2

  	

  Addresses

  
	

   

  	

  33.3

  	

  Delivery

  
	

   

  	

  33.4

  	

  Notification

  Of Address, Fax Number And Telex Number

  
	

   

  	

  33.5

  	

  English

  Language

  
	

   

  	

   

  	

   

  
	

  34.

  	

  Calculations And

  Certificates

  
	

   

  	

  34.1

  	

  Accounts

  
	

   

  	

  34.2

  	

  Certificates And

  Determinations

  
	

   

  	

  34.3

  	

  Day

  Count Convention

  
	

   

  	

   

  	

   

  
	

  35.

  	

  Partial Invalidity

  
	

   

  	

   

  
	

  36.

  	

  Remedies And Waivers

  
	

   

  	

   

  	

   

  
	

  37.

  	

  Amendments And Waivers

  
	

   

  	

  37.1

  	

  Required

  Consents

  
	

   

  	

  37.2

  	

  Exceptions

  
	

   

  	

  37.3

  	

  Amendments By Security

  Trustee

  
	

   

  	

  37.4

  	

  Amendments By Obligor’s

  Agent

  
	

   

  	

  37.5

  	

  Amendment To

  Correct Manifest Error

  
	

   

  	

   

  	

   

  
	

  38.

  	

  Counterparts

  
	

   

  	

   

  
	

  39.

  	

  Governing Law

  
	

   

  	

   

  	

   

  
	

  40.

  	

  Enforcement

  
	

   

  	

  40.1

  	

  Jurisdiction Of English

  Courts

  
	

   

  	

  40.2

  	

  Service Of

  Process

  
	

   

  	

   

  	

   

  
	

  41.

  	

  Waiver Of Jury Trial

  
	

   

  	

   

  
	

  Schedule 1 THE CLOSING PARTIES

  
	

   

  
	

  Schedule 2 CONDITIONS PRECEDENT

  

 

 

	

  Schedule 3 REQUESTS

  
	

   

  
	

  Schedule 4 MANDATORY COST FORMULAE

  
	

   

  
	

  Schedule 5 FORM OF TRANSFER CERTIFICATES

  
	

   

  
	

  Schedule 6 FORM OF ACCESSION LETTER

  
	

   

  
	

  Schedule 7 FORM OF RESIGNATION LETTER

  
	

   

  
	

  Schedule 8  FORM OF COMPLIANCE CERTIFICATE

  
	

   

  
	

  Schedule 9 RESTRUCTURING PROGRAMME

  
	

   

  
	

  Schedule 10 TIMETABLES

  
	

   

  
	

  Schedule 11 FORM OF BANK GUARANTEE

  
	

   

  
	

  Schedule 12 FORM OF LETTER OF CREDIT

  
	

   

  
	

  Schedule

  13 MATERIAL COMPANIES AS AT SIGNING

  
	

   

  
	

  Schedule 14 FORM OF AUDITOR’S REPORT

  
	

   

  
	

  Schedule 15 SECURITY PRINCIPLES

  
	

   

  
	

  Schedule 16 DISPOSAL PLAN

  
	

   

  
	

  Schedule 17 CENTRAL AMERICAN ENTITIES

  

 

 

THIS AGREEMENT is dated 28 April 2001

and made between:

 

(1)                                  CORNELIA

VERWALTUNGSGESELLSCHAFT mbH (the “Company”)

(which is anticipated to have its name changed to Messer Griesheim Group GmbH

and then to be converted into a German partnership limited by shares (GmbH

& Co. KGaA) named Messer Griesheim Group GmbH & Co. KGaA on or shortly

after the Closing Date referred to below);

 

(2)                                  THE

PERSONS who become Borrowers pursuant to the

provisions of this Agreement;

 

(3)                                  THE

PERSONS who become Guarantors pursuant to the

provisions of this Agreement;

 

(4)                                  GOLDMAN

SACHS INTERNATIONAL as Global Co-ordinator (the “Global

Co-ordinator);

 

(5)                                  GOLDMAN

SACHS INTERNATIONAL, BAYERISCHE HYPO-UND VEREINSBANK AG, J.P.

MORGAN PLC and THE ROYAL BANK OF SCOTLAND PLC as Joint

Lead Arrangers (the “Arrangers”);

 

(6)                                  THE

PERSONS listed in Part II of Schedule 1 (The Closing

Parties) as lenders (the “Original Lenders”);

 

(7)                                  CHASE

MANHATTAN INTERNATIONAL LIMITED as agent of the

Lenders (the “Agent”); and

 

(8)                                  CHASE

MANHATTAN INTERNATIONAL LIMITED as security trustee

for the Finance Parties (the “Security Trustee”).

 

IT IS AGREED as follows:

 

SECTION 1

 

INTERPRETATION

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1                           Definitions

In this

Agreement:

 

“Accession

Letter” means a document substantially in the form set out in

Schedule 6 (Form

of Accession Letter).

 

“Acquisition”

means the China Acquisition and the MGG Acquisition.

 

“Acquisition

Closing Conditions” means each of the conditions to closing of the

Acquisition set out in clauses 3.1(f) (Material adverse change), 3.1(g) (Representations

and warranties true and correct) and 3.1(h) (No insolvency of certain members of

the MGG

Group) of the Business Combination Agreement.

 

“Acquisition

Documents” means the Business Combination Agreement, all documents

executed pursuant to the Business Combination Agreement on or before the

Closing Date, the Combination Documents defined therein, the Call Option

defined therein, the Counter-Call Option defined therein, the Counter-Put

Option defined therein, the Aventis Guarantee provided pursuant to exhibit 3.1

(j) thereof and each other document (if any) relating to the

 

1

 

transactions

contemplated in the Business Combination Agreement and identified by the Agent

and the Company in writing as an Acquisition Document.

 

“Acquisition

Recovery Proceeds” means the proceeds of any payment made by the

Vendor, or the Vendor’s Affiliates (including, without limitation, Aventis

China and Aventis), employees, officers or advisers under or in relation to the

Acquisition Documents including (without limitation) the proceeds of any

payment in respect of a claim for breach of contract or warranty,

misrepresentation or a claim under an indemnity provided that to the extent

that any such proceeds (or any portion thereof) relate to Indemnified

Unconsolidated Debt or otherwise do not relate to any matter which affects or

is connected with the equity value of the MGG Group they shall not be treated

as Acquisition Recovery Proceeds.  For

the avoidance of doubt, proceeds received pursuant to section 4.14 (Non-fulfilment

of Counter-Call) of the Business Combination Agreement shall not be

treated as Acquisition Recovery Proceeds.

 

“Acquisition

Remedy” means the application of Acquisition Recovery Proceeds

towards:

 

(a)                                      the discharge of a liability, charge or claim made upon any member

of the Group, where the Vendor is obliged under the Acquisition Documents to

indemnify or otherwise reimburse the relevant member of the Group for such a

liability, charge or claim (and, for the avoidance of any doubt, this paragraph

applies to the application of amounts paid by the Vendor as a result of breach

of section 5.19 (Consolidated Debt at Year End) of the BCA to the repayment

of Existing Indebtedness by a member of the Group); or

 

(b)                                     reimbursing a member of the Group for monies disbursed in connection

with discharging any liability, charge or claim referred to in paragraph (a)

above; or

 

(c)                                      replacing, reinstating and/or repairing assets of the Group where

the loss of, or damage to, such assets gave rise to a claim for breach of

contract or warranty, misrepresentation or a claim under an indemnity under the

Acquisition Documents.

 

For the

purposes of this definition, “Group” shall at all times include the

Company.

 

“Additional

Basket” means, at any time, an amount equal to the aggregate amount

of:

 

(a)                                      Available Excess Cash Flow and Deemed Available Net Disposal

Proceeds and Available Net Disposal Proceeds and 25% of Total Debt Relief

Amount at such time; less

 

(b)                                     the aggregate amount which has been used for acquisitions pursuant

to paragraph (h) of the definition of Permitted Acquisitions and the aggregate

amount which has been used in Capital Expenditure under paragraph (c)(iii) of

Clause 22.3 (Capital Expenditure) and the aggregate amount allocated to

be funded out of the Additional Basket pursuant to the provisions of paragraph

(c) of Clause 23.7 (Joint Ventures and Non Wholly-Owned Subsidiaries)

at such time.

 

“Additional

Borrower” means a company which becomes an Additional Borrower in

accordance with Clause 26 (Changes to the Obligors).

 

2

 

“Additional

Guarantor” means a company which becomes an Additional Guarantor in

accordance with Clause 26 (Changes to the Obligors).

 

“Additional

Obligor” means an Additional Borrower or an Additional Guarantor.

 

“Affiliate”

means, in relation to any person, a Subsidiary of that person or a Holding

Company of that person or any other Subsidiary of that Holding Company or any

other person which is under common control with that person (and for these

purposes, “control” has the meaning given to it in section 416 of the

Income and Corporation Taxes Act 1988 in force as at the date of this

Agreement). In addition, with respect to any Lender, the term “Affiliate” shall

(for all purposes hereof other than for the purposes of Clause 15 (Increased

Costs)) be deemed to include (a) any entity (whether a corporation,

partnership, trust or otherwise) that is engaged in making, purchasing, holding

or otherwise investing in bank loans and similar extensions of credit in the

ordinary course of its business and is administered or managed by such Lender

or an Affiliate of such Lender, and (b) in the case of any Lender that is a

fund that invests in bank loans and similar extensions of credit, any other fund

that invests in bank loans and similar extensions of credit and is managed by

the same investment advisor as such Lender or by an Affiliate of such

investment advisor.

 

“Agent’s Spot

Rate of Exchange” means the Agent’s spot rate of exchange for the

purchase of the relevant currency with the Base Currency in the London foreign

exchange market at or about 11:00 a.m. on a particular day.

 

“Aggregate Ancillary Commitment” means, in

relation to an Ancillary Lender, the aggregate of its Ancillary Commitments.

 

“Ancillary

Commitment” means, in relation to an Ancillary Lender and an

Ancillary Facility the maximum Base Currency Amount which that Ancillary Lender

has agreed to make available from time to time under that Ancillary Facility

and which has been authorised as such under Clause 2.4 (Ancillary Facilities) to the extent that

amount is not cancelled or reduced under this Agreement or the Ancillary

Documents relating to that Ancillary Facility.

 

“Ancillary

Document” means each document relating to or evidencing the terms of

an Ancillary Facility.

 

“Ancillary

Facility” means an overdraft ancillary facility made available upon

request as described in Clause 2.4 (Ancillary Facilities).

 

“Ancillary

Lender” means each Lender which makes available an Ancillary

Facility in accordance with Clause 2.4 (Ancillary Facilities).

 

“Ancillary

Outstandings” means, at any time, in relation to an Ancillary

Facility the principal amount calculated on a net basis (provided such netting

arrangements are documented on terms reasonably satisfactory to the Ancillary

Lender) outstanding under that Ancillary Facility.

 

“Allianz”

means Allianz Capital Partners GmbH and/or any of its Affiliates.

 

“Auditor’s

Report” means a report of the auditors of Newco 2 in substantially

the form set out in Schedule 14 (Form of Auditor’s Report).

 

3

 

“Austrian

Guarantee” means the guarantee to be entered into by Messer Austria

GmbH in the agreed form.

 

“Authorisation”

means an authorisation, consent, approval, resolution, licence, exemption,

filing or registration.

 

“Availability

Period”  means:

 

(a)                                      in relation to the Term Disposal Facility the period from and

including the date of this Agreement to and including the day falling 90 days

after the Closing Date;

 

(b)                                     in relation to the Term A Facility, the period from and including

the date of this Agreement to and including the day falling 90 days after the

Closing Date;

 

(c)                                      in relation to the Term B Euro Facility, the period from and

including the date of this Agreement to and including the day falling 45 days

after the Closing Date;

 

(d)                                     in relation to the Term B Dollar Facility, the period from and

including the date of this Agreement to and including the day falling 45 days

after the Closing Date;

 

(e)                                      in relation to the Term C Euro Facility, the period from and

including the date of this Agreement to and including the day falling 10

Business Days after the Closing Date;

 

(f)                                        in relation to the Term C Dollar Facility, the period from and

including the date of this Agreement to and including the day falling 10

Business Days after the Closing Date; and

 

(g)                                     in relation to each Revolving Facility, the period from and

including the date of this Agreement to and including the date falling 83

Months after the Base Date.

 

If any of the

above provisions of this definition of Availability Period would operate so

that (but for this provision) any Availability Period ended on a day which is

not a Business Day, then such Availability Period shall end on the immediately

first Business Day to occur after such day.

 

“Available Commitment” means, in relation to

a Facility and a Lender, that Lender’s Commitment under that Facility minus:

 

(a)                                      the Base Currency Amount of its participation in any outstanding

Loans (and in the case of a Revolving Facility, any outstanding Letters of

Credit and Bank Guarantees under that Revolving Facility and the Base Currency

Amount of its Aggregate Ancillary Commitments under Relevant Ancillary

Facilities); and

 

(b)                                     in relation to any proposed Utilisation, the Base Currency Amount of

its participation in any Loans (and, in the case of a Revolving Facility, any

Letters of Credit and Bank Guarantees under that Revolving Facility) that are

due to be made under that Facility on or before the proposed Utilisation Date

(and in the case of a Relevant Revolving Facility, the Base Currency Amount of

its Ancillary Commitment in relation to any new Ancillary Facility that is due

to be made available on or before the proposed Utilisation Date),

 

4

 

other than, in

relation to a Revolving Facility only, that Lender’s participation in any

Revolving Facility Loans, Letters of Credit or Bank Guarantees under that

Revolving Facility that are due to be repaid, prepaid or expire on or before

the proposed Utilisation Date and that Lender’s Ancillary Commitments under

Relevant Ancillary Facilities that are due to be reduced or cancelled on or

before the proposed Utilisation Date.”

 

“Available

Excess Cash Flow” means, at any time, any Excess Cash Flow generated

after 1 January 2001 which is not required to be applied in prepayment of the

Facilities in accordance with Clause 9.4 (Excess Cash Flow).

 

“Available

Facility” means, in relation to a Facility, the aggregate for the

time being of each Lender’s Available Commitment in respect of that Facility.

 

“Available

Net Disposal Proceeds” means, at any time, in respect of Net

Disposal Proceeds 75% (and not 100%) of which are or have been required to be

applied in prepayment of the Facilities (other than the Term Disposal Facility)

in accordance with Clause 9.5 (Asset Disposals), an amount equal to the

aggregate of 25% of such Net Disposal Proceeds.

 

“Aventis

China” means Aventis (China) Investment Co. Ltd.

 

“Bank

Guarantee” means a bank guarantee issued or to be issued by a

Fronting Bank under a Revolving Facility substantially in the form set out in

Schedule 11 (Form of Bank Guarantee) or in such other form requested by a

Borrower which is acceptable to the Agent and the relevant Fronting Bank.

 

“Base

Currency” means (a) for all purposes other than in relation to the

Dollar Facilities and the Term Disposal Facility, euro and (b) in relation to

the Dollar Facilities and the Term Disposal Facility only, dollars.

 

“Base

Currency Amount” means:

 

(a)                                      in relation to a Loan, Letter of Credit or Bank Guarantee, the

amount specified in the Utilisation Request for that Loan, Letter of Credit or

Bank Guarantee or, if the amount 

requested  is not denominated in

the relevant Base Currency, that amount converted into the relevant Base

Currency at the Agent’s Spot Rate of Exchange on the date which is:

 

(i)                       in relation to

a Utilisation three Business Days before the Utilisation Date (or, if later, on

the date the Agent receives the Utilisation Request); or

 

(ii)                    in the case of a

renewal or revaluation of a Letter of Credit or Bank Guarantee the date falling

two Business Days before its issue date or any renewal date,

 

in each case

as adjusted to reflect any repayment (other than, in relation to a Term

Facility, a repayment arising from a change of currency), prepayment,

consolidation or division in reduction of the Loan, Letter of Credit or, as the

case may be, Bank Guarantee; and

 

(b)                                     in relation to an Ancillary Commitment, the amount specified in the

notice delivered to the Agent by the Ancillary Lender making available that

Ancillary Facility pursuant to paragraph (f) of Clause 2.4 (Ancillary Facilities) or, if the amount

specified is not denominated in the Base Currency, that amount converted into the

 

5

 

Base Currency at the Agent’s Spot Rate of Exchange on

the date which is three Business Days before the commencement date for that

Ancillary Facility (or, if later, the date the Agent receives the notice of the

Ancillary Commitment) adjusted to reflect any cancellation or reduction of that

Ancillary Facility.  If no notice is

delivered pursuant to paragraph (f) of Clause 2.4 (Ancillary Facilities), the Base Currency Amount of the

Ancillary Commitment shall be calculated by reference to the amount estimated

by the Agent to be the Ancillary Commitment in accordance with paragraph (f) of

Clause 2.4 (Ancillary Facilities).

 

“Base Date”

means the earlier to occur of (a) the Closing Date and (b) 4 May 2001.

 

“Bookrunners”

means those Arrangers defined as Bookrunners in the Syndication Letter.

 

“Borrower”

means an Additional Borrower (including, for the avoidance of doubt, any

Initial Borrower which is an Additional Borrower) unless it has ceased to be a

Borrower in accordance with Clause 26 (Changes to the Obligors).

 

“Break Costs”

means the amount (if any) by which:

 

(a)                                      the interest (excluding for the avoidance of doubt, Margin and

Mandatory Cost) which a Lender should have received for the period from the date

of receipt of all or any part of its participation in a Loan or Unpaid Sum to

the last day of the current Interest Period in respect of that Loan or Unpaid

Sum, had the principal amount or Unpaid Sum received been paid on the last day

of that Interest Period;

 

exceeds:

 

(b)                                     the amount which that Lender would be able to obtain by placing an

amount equal to the principal amount or Unpaid Sum received by it on deposit

with a leading bank in the Relevant Interbank Market for a period starting on

the Business Day following receipt or recovery and ending on the last day of

the current Interest Period.

 

“Budget”

means a budget delivered by the Obligor’s Agent to the Agent pursuant to Clause

21.3 (Budgets)

or Part I of Schedule 2 (Conditions Precedent).

 

“Business

Combination Agreement” or “BCA” means the business combination

agreement dated as of 30/31 December 2000 between MIG, MGG, the Company, the

Vendor and Hoechst Newco 3 (as amended pursuant to amendment agreements dated 7

February 2001, 9 February 2001, 5 March 2001, 20 March 2001 and 30 March 2001

and any other amendment agreement in the agreed form entered into on or prior

to the date of this Agreement), setting out the terms of the Acquisition,

together with all schedules, exhibits and attachments to such agreement.

 

“Business Day”

means a day (other than a Saturday or Sunday) on which banks are open for

general business in London and Frankfurt and:

 

(a)                                      (in relation to any date for payment or purchase of a currency other

than euro) the principal financial centre of the country of that currency; or

 

(b)                                     (in relation to any date for payment or purchase of euro) any TARGET

Day.

 

6

 

“Business

Plan” means the financial model for the period beginning on 1

January 2001 and ending on 31 December 2010 including profit and loss accounts,

balance sheets and cash flow projections, in agreed form, relating to the Group

(for these purposes assuming completion of the Acquisition).

 

“Change of Borrower Notice” means a notice

substantially in the form set out in Part III of Schedule 3 (Requests) given in accordance with Clause

7.8 (Change of Borrower).

 

“Capital

Expenditure” has the meaning given to it in Clause 22.1 (Financial

definitions).

 

“Cash

Collateral” means, in relation to any Letter of Credit or L/C

Proportion of a Letter of Credit or any Bank Guarantee or Guarantee Proportion

of a Bank Guarantee, a deposit in an interest-bearing account or accounts

reasonably acceptable to the Agent, that deposit and account to be secured in

favour of, and on terms and conditions acceptable to, the Agent (acting

reasonably).

 

“Cash

Collateral Documents” means any documents as the Agent may specify,

to be entered into in relation to the Cash Collateral.

 

“Cash

Equivalent Investments” has the meaning given to it in Clause 22.1 (Financial

definitions).

 

“Central

American Entities” means the entities specified in Schedule 17 (Central

American Entities).

 

“Change of

Control” means any one of the following:

 

(a)                                      Goldman Sachs Managed Funds and Allianz cease to own (directly or

indirectly) in aggregate more than 50% of the Financial Investors Shares; or

 

(b)                                     Goldman Sachs Managed Funds cease to own (directly or indirectly) at

least 15% of the Total Shares; or

 

(c)                                      Allianz cease to own (directly or indirectly) at least 15% of the

Total Shares; or

 

(d)                                     a person (other than MIG) (together with its Affiliates) owns

(directly or indirectly) more of the Total Shares than the Total Shares owned

by Allianz and Goldman Sachs Managed Funds; or

 

(e)                                      the Company does not or ceases to own (directly or indirectly) all

of the issued share capital of Newco 2 (or, if converted into a KG or a KGaA,

its general partner) or MGG or (during the Debtco Structure Period, Debtco).

 

For the

purpose of this definition:

 

(i)                                         “Financial Investors Shares” means the shares in the Company

held by the Initial Sponsors on the Closing Date and all other shares in the

Company (and, following its conversion into a KgaA or KG, all of the shares in

its general partner) issued to any of the Initial Sponsors or any of their

Successors (as defined in Section 21 of the Shareholders’ Agreement); and

 

7

 

(ii)                                      “Total Shares” means all of the issued shares of the Company

and, following its conversion into a KgaA or KG, all of the shares in its

general partner.

 

“China

Acquisition” means the acquisition by MGG and/or one or more

Subsidiaries of MGG of the ACIC Gas Interests (as defined in the Business

Combination Agreement) and certain other assets of Aventis China from Aventis

China pursuant to the terms of the Business Combination Agreement and the China

SPA (as defined therein).

 

“China

Subordination Agreement” means a subordination agreement in the

agreed form between, among others, MGG, any other member of the MGG Group (a “Relevant

Member”) which acquires any of the ACIC Gas Interests (as defined in

the BCA) and/or any other assets pursuant to the China Acquisition and the

Company pursuant to which the rights of the Company to make any claims against

MGG and each Relevant Member as a result of any payment made by the Company

under the China Purchase Price Guarantee (as defined in Section 2.5 (Sale of

China Interests) of the BCA are restricted and subordinated.

 

“Clean-Up

Date” means the day which is three Months after the Closing Date.

 

“Closing Date”

has the meaning ascribed to it in the Business Combination Agreement.

 

“Closing

Event of Default” means any Event of Default other than any Event of

Default under any of the following: Clause 24.3 (Other Obligations), Clause

24.4 (Misrepresentation)

(excluding any Event of Default arising thereunder as a result of a Closing

Representation being incorrect or misleading), Clause 24.5 (Cross

default), Clause 24.6 (Insolvency), Clause 24.7 (Insolvency proceedings),

Clause 24.8 (Creditors’ process), Clause 24.9 (Transaction Security),

Clause 24.10 (Other Indebtedness) and Clause 24.14 (Material adverse change).

 

“Closing

Period” means the period beginning the moment after the MGG

Acquisition is completed on the Closing Date and ending on the day falling 20

Business Days after the Closing Date.

 

“Closing

Representations” means, in relation to the Obligor’s Agent and any

Obligor, each of the representations set out in Clauses 20.4 (Status)

to Clause 20.9 (Governing law and enforcement) (inclusive but excluding

paragraph (c) of Clause 20.6 (Non-conflict with other obligations)) and

paragraph (d) of Clause 20.12 (No misleading information) and

additionally, in relation to the Obligor’s Agent only, Clause 20.28 (Ownership of

Obligors), paragraphs (a) and (b) of Clause 20.30 (Acquisition

Documents) and Clause 20.32 (No Trading).

 

“Closing

Utilisation” means any Utilisation which has a date falling within

the Closing Period as its proposed Utilisation Date.

 

“Code”

means, on any date, the United States Internal Revenue Code of 1986 (or any

successor legislation thereto), as amended, and the regulations promulgated and

rulings issued thereunder, all as the same may be in effect at such date.

 

“Commitment”

means a Term Disposal Facility Commitment, Term A Facility Commitment, Term B

Euro Facility Commitment, Term B Dollar Facility Commitment, Term C Euro

Facility Commitment, Term C Dollar Facility Commitment, Revolving Facility I

Commitment or Revolving Facility II Commitment.

 

8

 

“Compliance

Certificate” means a certificate substantially in the form set out

in Schedule 8 (Form of Compliance Certificate.)

 

“Confidentiality

Undertaking” means a confidentiality undertaking in the standard

form from time to time of the LMA or in any other form agreed between the

Obligor’s Agent and the Agent or in any other form on equivalent terms.

 

“Consolidated

Subsidiary” means, in relation to any company or corporation, a

Subsidiary of such company or corporation whose financial statements are

required by IAS to be included in the consolidated annual financial statements

of that company or corporation provided that, for the purposes of this

definition, otherwise than in relation to the operation of Clause 22 (Financial

Covenants), a Subsidiary of a company or corporation shall not be

treated as having ceased to be a Consolidated Subsidiary of that company or

corporation solely by reason of the fact that an intention or agreement exists

to dispose of that Subsidiary within a particular time period.

 

“Consultants

Report” means a report by an appropriate institution in relation to

the financial control and central cash management systems of the MGG Group as

they currently exist and advising on how improved centralised cash management

systems should be implemented.

 

“Core Country”

means any OECD Country.

 

“Cost Savings”

means the cost savings in connection with the MGG Group, as identified in the

Business Plan.

 

“Debt Relief

Amount” means, in relation to a Permitted Disposal of any asset

(other than, for the avoidance of doubt, an asset of an Unconsolidated

Subsidiary of MGG or any shares in an Unconsolidated Subsidiary of MGG), the

amount by which Indebtedness for Borrowed Money of the MGG Group (without

double counting) is reduced as a result of such disposal of such asset by a

member of the MGG Group by reason of the purchaser of the asset acquiring such

asset subject to (or together with) such Indebtedness for Borrowed Money.

 

“Debtco”

means a company incorporated in Germany as a GmbH which has (or will have) as

its sole shareholder Newco 2 and which is intended to become the sole

shareholder of MGG and accede to this Agreement as a Borrower if twelve Months

after the date of this Agreement the High Yield Notes have not been issued and

there might reasonably be expected to be adverse German Tax implications in

having MGG (rather than Debtco) as the German Group Member which is a Borrower.

 

“Debtco Exit

Date” means the date the Agent (after consultation with the

Obligor’s Agent) confirms to the Obligor’s Agent and the Lenders as the Debtco

Exit Date for the purpose of the Finance Documents (and in particular Clause

26.8 (Transfers

on Debtco Exit Date)) provided that the Agent may not notify such

Parties of such date unless the following have been satisfied:

 

(a)                                      each of the Initial German Borrowers have become Borrowers in

accordance with Clause 26.2 (Additional Borrowers);

 

(b)                                     the Agent has received a Debtco Exit Transfer Certificate executed

by Debtco and each Initial German Borrower in form and substance satisfactory

to it;

 

9

 

(c)                                      the Agent has received evidence satisfactory to it (acting

reasonably) that on the Debtco Exit Date:

 

(i)                       Newco 2 will

become the sole shareholder of MGG (subject only to completion of formalities

in relation to registration of the transfer, it being acknowledged that such

formalities will be so far as practicable pre-approved by the relevant German

Court) and upon Debtco ceasing to be the shareholder of MGG the shares in MGG

will be or will remain pledged pursuant to a Security Document entered into by

Newco 2;

 

(ii)                    MGG will assume

the rights and obligations of Debtco under (1) any Subordination Agreement

already entered into; (2) any Newco 2 Loan Agreement already entered into; (3)

any High Yield Proceeds Loan Agreement already entered into; and (4) any

Exchange Notes Loan already entered into; and

 

(iii)                 all rights which

Debtco has against any member of the Newco 2 Group will be unconditionally

released and discharged.

 

“Debtco Exit

Transfer Certificate” means a certificate executed by Debtco and

each Initial German Borrower and the Agent in substantially the form set out in

Part III (Debtco

Exit Transfer Certificate) of Schedule 5.

 

“Debtco

Introduction Date” means the date the Agent (following a request to

do so by the Obligor’s Agent) confirms to the Obligor’s Agent and the Lenders

as the Debtco Introduction Date for the purpose of the Finance Documents (and,

in particular, for the purposes of Clause 26.7 (Transfers on Debtco Introduction Date))

which shall be a date falling within 10 Business Days of the date of the notice

given by the Agent pursuant to paragraph (c) of Clause 26.2 (Additional

Borrowers) in relation to Debtco’s accession as a Borrower.

 

“Debtco

Permitted Distributions” means each of the following:

 

(a)                                      dividends paid by Debtco to Newco 2;

 

(b)                                     payments of any amounts by Debtco to Newco 2 in respect of any

indebtedness under any Newco 2 Loan Agreement; and

 

(c)                                      loans made by Debtco to Newco 2,

 

provided that at

the time any such dividend or payment is paid or loan is advanced to Newco 2

all of the following conditions are satisfied:

 

(A)                                  at least EUR250,000,000 (or its equivalent) of the Term Facilities have

been permanently repaid;

 

(B)                                    there is no Default which is continuing; and

 

(C)                                    the amount of any such dividend, payment or loan when aggregated

with all other dividends, payments or loans referred to in (a), (b) and (c)

above made in the calendar year in which such dividend, payment or loan is

proposed to be made would not exceed EUR7,500,000 or its equivalent.

 

10

 

“Debtco

Structure Period” means the period (if any) from the Debtco

Introduction Date until the earlier of (1) the Debtco Exit Date and (2) the

date on which no obligations are outstanding under this Agreement.

 

“Deemed

Available Net Disposal Proceeds” means, at any time, an amount equal

to 25% of the aggregate amount of Net Disposal Proceeds arising from disposals

made after the Closing Date which are required to be applied in prepayment of

the Term Disposal Facility in accordance with Clause 9.5 (Asset Disposals).

 

“Default”

means an Event of Default or any event or circumstance specified in Clause 24 (Events of

Default) which would (with the expiry of a grace period or the

giving of notice under the Finance Documents or any combination of any of the

foregoing) be an Event of Default.

 

“Direct

Mezzanine Refinancing” means any form of debt financing pursuant to

which MGG is provided debt financing which satisfies the following conditions:

 

(a)                                      such debt financing does not contain any covenants, undertakings or

representations on the part of any member of the MGG Group which are any more

onerous than those contained in the Mezzanine Facility Agreement and does not

contain any events of default (however described) or other acceleration

provisions which are any more favourable to the Direct Mezzanine Refinancing

Providers than those set out in the Mezzanine Facility Agreement;

 

(b)                                     the cash pay interest rate applicable at any time to  such debt financing is not greater than 14%

per annum;

 

(c)                                      the principal amount of such debt financing does not mature until at

least the Final Maturity Date (as defined in the Mezzanine Facility Agreement)

and no amount of principal is scheduled to be paid thereunder before the Final

Maturity Date (as defined in the Mezzanine Facility Agreement);

 

(d)                                     if secured and/or guaranteed, such debt financing is only secured and/or

guaranteed by the same Security (or less) as secured by the Security

Documents  and by the same entities as

the Guarantors (or certain of the Guarantors only) and, in the case of any

security, securing such debt financing does not adversely affect the Security

provided to the Finance Parties and ranks behind such Security provided to the

Finance Parties;

 

(e)                                      the principal amount of such debt financing is at no time greater

than the total amount outstanding under the Mezzanine Facility Agreement at the

time the first advances are made under such Direct Mezzanine Refinancing plus

costs directly attributable to the refinancing;

 

(f)                                        the net proceeds of such debt financing are immediately used to

prepay in full the total amount outstanding under the Mezzanine Facility

Agreement at the time such net proceeds are advanced; and

 

(g)                                     the Direct Mezzanine Refinancing Providers have entered into an

intercreditor agreement prior to any such debt financing being advanced to MGG

with all of the persons which are at such time party to the Intercreditor Deed

(other than the

 

11

 

Mezzanine Finance Parties), such intercreditor

agreement (the “Direct Mezzanine Refinancing Intercreditor Agreement”) (which

may take the form of an amendment to the Intercreditor Deed as in effect at the

relevant date) to be on terms no less favourable to the Finance Parties than

the Intercreditor Deed (and the Finance Parties shall not unreasonably refuse

to enter into such an intercreditor agreement or to agree to corresponding

amendments to the Intercreditor Deed as in effect at the relevant date).

 

“Direct

Mezzanine Refinancing Intercreditor Agreement” has the meaning given

to it in the definition of Direct Mezzanine Refinancing.

 

“Direct Mezzanine

Refinancing Facility” means a facility providing Direct Mezzanine

Refinancing.

 

“Direct

Mezzanine Refinancing Providers” means the providers of any Direct

Mezzanine Refinancing including any agent or trustee for such providers.

 

“Disposal

Plan” means the disposal programme pursuant to which it is intended

that the shares in certain members of the MGG Group, certain Unconsolidated

Subsidiaries of MGG (as specified in Schedule 16 (Disposal Plan)) and/or the

whole or substantially the whole of the assets of such companies and certain

minority interests and assets (as specified in Schedule 16 (Disposal

Plan)) of the MGG Group and such Unconsolidated Subsidiaries of MGG

will be sold after the Closing Date.

 

“Dollar

Facilities” means the Term B Dollar Facility and the Term C Dollar

Facility.

 

“Dollar

Facility Loan” means a loan made or to be made under a Dollar

Facility or the principal amount outstanding for the time being of that loan.

 

“Employee

Plan” means an employee pension benefit plan (other than a Multiemployer

Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code

or Section 302 of ERISA, and in respect of which a US Group Member or any ERISA

Affiliate is (or, if such plan were terminated, would under Section 4069 of

ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Environmental

Claim” means any written claim or any proceeding or investigation by

any person in respect of any Environmental Law.

 

“Environmental

Law” means any applicable law in any jurisdiction in which any

member of the Group conducts business which relates to the pollution or

protection of the environment or harm to or the protection of human health or

the health of animals or plants.

 

“Environmental

Permits” means any permit, licence, consent, approval and other

authorisation and the filing of any notification, report or assessment required

under any Environmental Law for the operation of the business of any member of

the Group conducted on or from the properties owned or used by the relevant

member of the Group.

 

“ERISA”

means, at any date, the US Employee Retirement Income Security Act of 1974, or

any successor legislation thereto (as amended) and the regulations promulgated

and rulings issued thereunder, all as the same shall be in effect at such date.

 

12

 

“ERISA

Affiliate” means any person that for purposes of Title I and Title

IV of ERISA and Section 412 of the Code is a member of a US Group Member’s

controlled group, or under common control with a US Group Member, within the

meaning of Section 414(b), (c), (m) or (o) of the Code.

 

“ERISA Event” means:

(a)                                      any reportable event, as defined in Section 4043

of ERISA, with respect to an Employee Plan, as to which PBGC has not by

regulation waived the requirement of Section 4043(a) of ERISA that it be

notified within thirty days of the occurrence of such event (provided

that a failure to meet the minimum funding standard of Section 412

of the Code or Section 302 of ERISA shall be a reportable event for the

purposes of this paragraph (a) regardless of the issuance of any waivers in

accordance with Section 412(d) of the Code);

 

(b)                                     the filing under Section 4041(c) of

ERISA of a notice of intent to terminate any Employee Plan or the termination

of any Employee Plan under Section 4041(c) of ERISA;

 

(c)                                      the institution of proceedings under

Section 4042 of ERISA by the PBGC for the termination of, or the appointment of

a trustee to administer, any Employee Plan; and

 

(d)                                     an engagement in a non-exempt

prohibited transaction within the meaning of Section 4795 of the Code or

Section 406 of ERISA which upon the occurrence of any of the events described

in paragraphs (a) to (c) (inclusive) above could reasonably be expected to have

a Material Adverse Effect.

 

“EURIBOR”

means, in relation to any Loan in euro:

 

(a)                                      the applicable Screen Rate; or

 

(b)                                     (if no Screen Rate is available for the period of that Loan) the

arithmetic mean of the rates (rounded upwards to four decimal places) as

supplied to the Agent at its request quoted by the Reference Banks to leading

banks in the European interbank market,

 

as of the

Specified Time on the Quotation Day for the offering of deposits in euro for a

period comparable to the Interest Period of the relevant Loan and for these

purposes in respect of the drawing of a Loan to be advanced on the Closing Date

EURIBOR for the first Interest Period of such Loan shall be determined by

reference to paragraph (b) and in respect of the first Interest Period for the

Deemed Loan referred to in paragraph (d) of Clause 9.11 (Voluntary prepayment of Term Facility

Loans) EURIBOR shall be determined in accordance with the provisions

of such paragraph (d).

 

“Euro

Facilities” means the Term B Euro Facility and the Term C Euro

Facility.

 

“Euro

Facility Loan” means a loan made or to be made under a Euro Facility

or the principal amount outstanding for the time being of that loan.

 

“Excess Cash

Flow” has the meaning given to it in Clause 22.1 (Financial

Definitions).

 

13

 

“Event of

Default” means any event or circumstance specified as such in

Clause 24 (Events of Default).

 

“Exchange

Notes” means any notes (other than High Yield Notes) issued by Newco

2 or, subject to the proviso at the end of this definition, any other person

which satisfy the following conditions:

 

(a)                                      any such note is issued by Newco 2 or such other person to a

Mezzanine Lender in exchange for that Mezzanine Lender releasing all or any of

its claims to repayment of Mezzanine Outstandings (and cash and non-cash

interest relating thereto) under the Mezzanine Facility Agreement in accordance

with Clause 2.4 (Exchange Notes) of the Mezzanine Facility Agreement;

 

(b)                                     such notes are unsecured and are not guaranteed by any member of the

Newco 2 Group save that such notes may be secured by Permitted Exchange Notes

Security;

 

(c)                                      the cash interest contracted to be paid on such notes does not

exceed 14% per annum at any time;

 

(d)                                     such notes do not mature before the Final Maturity Date (as defined

in the Mezzanine Facility Agreement) and no amount of principal is scheduled to

be paid thereunder before the Final Maturity Date (as defined in the Mezzanine

Facility Agreement);

 

(e)                                      the terms of the Intra-Group Loan between Newco 2 (or such other

person issuing the notes) as lender and MGG (or, as the case may be, Debtco) as

borrower arising in connection with the issue of any Exchange Notes by Newco 2

(or such other person) as specified in paragraph (a) above (the “Exchange

Notes Loan”) are immediately governed by an Exchange Notes Loan

Agreement which is subordinated pursuant to the terms of an Exchange Notes

Subordination Agreement;

 

(f)                                        any such notes are otherwise on terms and conditions which are

substantially consistent with the terms and conditions for such notes as set

out in Schedule 15 of the Mezzanine Facility Agreement and are otherwise on

terms and conditions which are no more onerous for the issuer of such note than

the terms of the Mezzanine Facility Agreement are for MGG (or, as the case may

be, Debtco),

 

provided that if

the issuer of any Exchange Notes is to be a person other than Newco 2 then the

written consent of the Majority Lenders must be obtained prior to such person

issuing any Exchange Notes, such consent not to be unreasonably withheld and

(for the avoidance of doubt) such consent may be given subject to any changes

to the provisions of this Agreement or any other Finance Document which are

designed to provide the Finance Parties with similar protections in relation to

the consequences of the issue of any such Exchange Notes as are at that time

contained in such Finance Documents in relation to Newco 2 being the proposed

issuer of any Exchange Notes.

 

“Exchange

Notes Documents” means the Exchange Notes, any indentures and registration

rights agreement relating to the Exchange Notes, any permitted guarantees

provided in connection therewith, any Permitted Exchange Notes Security and any

fee letters, indemnity letters, purchase agreements, refinancing and engagement

letter relating to the Exchange Notes and all other documents relating to the

issue of the Exchange Notes.

 

14

 

“Exchange

Notes Loan” has the meaning ascribed to it in the definition of

Exchange Notes.

 

“Exchange Notes

Loan Agreement” means a loan agreement in the form set out in

schedule 1 to the Exchange Notes Subordination Agreement between Newco 2 (or

(if different) the issuer of the Exchange Notes) as lender and MGG (or, on the

case may be, Debtco) as borrower which governs the terms of any Exchange Notes

Loan.

 

“Exchange

Notes Subordination Agreement” means a subordination agreement in

the agreed form between MGG (or, as the case may be, Debtco) and Newco 2

(or (if different) the issuer of the Exchange Notes) relating to the

subordination of any Exchange Notes Loan to the Outstandings, the Mezzanine

Outstandings and amounts outstanding under the Hedging Agreements in respect of

the authorisation and execution of such subordination agreement the Agent has

received a legal opinion from its German counsel in form and substance

acceptable to it (acting reasonably).

 

“Existing

Factoring Programme” means the factoring programme in place as at

the Closing Date made between MGG, Eureka Securitisation PLC and Citibank, N.A.

and entered into on 2/4 December 1998.

 

“Existing Indebtedness” means the Financial Indebtedness of the MGG Group outstanding on

the Closing Date or outstanding under overdraft facilities in existence on the

Closing Date as such overdraft facilities are renewed from time to time,

provided that the aggregate amount of Financial Indebtedness outstanding under

all overdraft facilities falling within this definition shall not exceed

EUR10,000,000 (or its equivalent in other currencies) at any time.

 

“Expiry Date”

means, in relation to any Letter of Credit or Bank Guarantee, the date on which

the maximum aggregate liability under that Letter of Credit or Bank Guarantee

is to be reduced to zero.

 

“Facility”

means the Term Disposal Facility, the Term A Facility, the Term B Euro

Facility, the Term B Dollar Facility, the Term C Euro Facility, the Term C

Dollar Facility, the Revolving Facility I or the Revolving Facility II.

 

“Facility

Office” means the office or offices notified by a Lender or a

Fronting Bank to the Agent and the Obligor’s Agent in writing on or before the

date it becomes a Lender or a Fronting Bank (or, following that date, by not

less than five Business Days’ written notice to the Agent and the Obligor’s

Agent) as the office or offices through which it will perform its obligations

under this Agreement and (unless otherwise subsequently notified by not less

than five Business Days’ written notice to the Agent and the Obligor’s Agent)

the Facility Office of the Lenders named on the signing pages hereto shall be

the office or offices specified after their names on the signature pages

hereto.

 

“Family MGG

Shares” means the shares representing one third of the nominal value

of the issued share capital of MGG, held by MIG at the date of this Agreement.

 

“Fee Letter”

means any letter or letters dated on or about the date of this Agreement

between certain of the Arrangers and MGG (or the Agent or the Security Trustee

and MGG, as the case may be) setting out any of the fees referred to in Clause

13 (Fees)

and any letter or letters between any Fronting Bank and the Obligor’s Agent

setting out any of the fees referred to in 

 

15

 

Clause 13.4 (Fronting

Bank Fee) and any other agreement setting out fees referred to in

Clause 2.4(m) in respect of an Ancillary Facility.

 

“Final

Maturity Date” means the day which is 108 Months after the Base

Date.

 

“Finance

Disclosure Letter” means the letter (if any) from the Company to the

Agent dated prior to the Closing Date headed “Finance Disclosure Letter” in the

agreed form and initialled by each Arranger for the purposes of identification

pursuant to which certain specific issues are disclosed against specific

representations.

 

“Finance

Document” means this Agreement, any Fee Letter, the Syndication

Letter, each Letter of Credit, each Bank Guarantee, any Ancillary Document, any

Cash Collateral Document, any Accession Letter, the Austrian Guarantee, the

Security Documents, the Intercreditor Deed, any Subordination Agreement, the Hedging

Agreements, any Priority Letter, any Transfer Certificate, the Debtco Exit

Transfer Certificate, and any other document designated as such by the Agent

and the Obligor’s Agent.

 

“Finance

Party” means the Agent, the Security Trustee, an Arranger, a Fronting

Bank, a Hedge Counterparty or a Lender (including, for the avoidance of doubt,

and Ancillary Lender).

 

“Finance

Lease” means a contract treated as a finance or capital lease in

accordance with IAS.

 

“Financial

Indebtedness” means any indebtedness for or in respect of any of the

following:

 

(a)                                      moneys borrowed;

 

(b)                                     any amount raised by acceptance under any acceptance credit

facility;

 

(c)                                      any amount raised pursuant to any note purchase facility or the

issue of bonds, notes, debentures, loan stock or any similar instrument;

 

(d)                                     any liability in respect of any Finance Lease;

 

(e)                                      receivables sold or discounted (other than any receivables to the

extent they are sold on a non-recourse basis);

 

(f)                                        any amount raised under any other transaction (including any forward

sale or purchase agreement) having the commercial effect of a borrowing

including (for the avoidance of doubt and without limitation) any amount raised

by any member of the MGG Group pursuant to a Permitted Factoring Programme;

 

(g)                                     any derivative transaction entered into in connection with

protection against or benefit from fluctuation in any rate or price (and, when

calculating the value of any derivative transaction, only the marked to market

value shall be taken into account);

 

(h)                                     any counter-indemnity obligation in respect of a guarantee,

indemnity, bond, standby or documentary letter of credit or any other

instrument issued by a bank or financial institution other than in the ordinary

course of trade of any member of the MGG Group;

 

(i)                                         (without double counting) the amount of any liability in respect of

any guarantee or indemnity for any of the items referred to in paragraphs (a)

to (h) above.

 

16

 

“Financial

Quarter” has the meaning given to it in Clause 22.1 (Financial

Definitions).

 

“Flotation”

means a listing of all or any part of the share capital of (a) MGG, (b) any

Holding Company of MGG which is in the Group or (c) any member of the MGG Group

which directly or indirectly owns all or substantially all of the shares or

assets of the MGG Group, in each case on any recognised investment or

securities exchange in any country.

 

“French

Guarantor” means a Guarantor whose Relevant Jurisdiction is France.

 

“Fronting

Bank” means a Lender which has notified the Agent that it has agreed

to the relevant Borrower’s request to be a fronting bank for a particular Bank

Guarantee or Letter of Credit pursuant to the terms of this Agreement.

 

“Funds Flow

Statement” means the statement, in the agreed form, prepared by the

Company’s advisors showing the payments to be made and received by the

Investors, the Company and certain other members of the Group and the Vendor

(and any of the Vendor’s Affiliates) in relation to the Acquisition.

 

“German Group

Member” means any member of the Newco 2 Group whose Relevant

Jurisdiction is the Federal Republic of Germany.

 

“German

Obligor” means a German Group Member who is an Obligor.

 

“Goldman

Sachs Managed Funds” means GS Capital Partners 2000, L.P., GS

Capital Partners 2000 Employee Fund, L.P., GS Capital Partners 2000 Offshore,

L.P., GS Capital Partners 2000 GmbH & Co. Beteiligungs KG, Stone Street

Fund 2000, L.P. and Bridge Street Special Opportunities Fund 2000, L.P.

together with all funds managed, advised or operated by any Affiliate of The

Goldman Sachs Group, Inc.

 

“Group”

means, at any time, the Company and its Consolidated Subsidiaries at that time

save that if at any time after the Closing Date Newco 2 ceases to be a

Subsidiary of the Company, the “Group” shall, until such time as Newco 2

becomes a Subsidiary of the Company again, be the Newco 2 Group.

 

“Group

Structure Chart” means a group structure chart, in agreed form,

showing:

 

(a)                                      all members of the Group (assuming completion of the Acquisition)

and the Investors;

 

(b)                                     any person in which any Group member has (or members of the Group

together have) an interest of more than 20% in the issued share capital or

equivalent ownership interest of such person;

 

(c)                                      the jurisdiction of incorporation or establishment of each person

within (a) and (b) above (other than the Investors); and

 

(d)                                     that all members of the Group are wholly-owned Subsidiaries of the

Company or, if any members of the Group are not wholly-owned Subsidiaries of

the Company, specifying the percentage shareholding or other economic interest

which the Company (directly or indirectly) holds in such members of the Group.

 

17

 

“Guarantee

Amount” means:

 

(a)                                      each sum paid or due and payable by a Fronting Bank to the

beneficiary of a Bank Guarantee pursuant to the terms of that Bank Guarantee;

and

 

(b)                                     all liabilities, costs (including, without limitation, any costs

incurred in funding any amount which falls due from a Fronting Bank under a

Bank Guarantee), claims, losses and expenses which that Fronting Bank incurs or

sustains in connection with a Bank Guarantee,

 

in each case

which has not been reimbursed pursuant to Clause 8.2 (Borrower’s indemnity to Fronting Banks).

 

“Guarantee

Commission Period” means, save as otherwise provided in this

Agreement, any of those periods mentioned in Clause 13.3 (Bank Guarantee commission).

 

“Guarantee

Commission Rate” means, from time to time, a guarantee commission

equal to the Margin applicable to Revolving Facility Loans at that time.

 

“Guarantee

Proportion” means, in respect of any Bank Guarantee under any

Revolving Facility and save as otherwise provided in this Agreement, the

proportion (expressed as a percentage) borne by a Lender’s Available Commitment

in respect of that Revolving Facility to the Available Facility in respect of

that Revolving Facility immediately prior to the issue of that Bank Guarantee.

 

“Guarantor”

means an Additional Guarantor (including, for the avoidance of any doubt, any

Initial Guarantor which is an Additional Guarantor), unless it has ceased to be

a Guarantor in accordance with Clause 26 (Changes to the Obligors).

 

“Hedge

Counterparty” means a Lender or an Affiliate of a Lender or any

other person which in each case is either a party to the Intercreditor Deed or

has acceded to the Intercreditor Deed in accordance with its terms as a Hedge

Counterparty.

 

“Hedging

Agreements” means each of the agreements entered into or to be

entered into between the Borrowers approved by the Agent and Hedge Counterparties

for the purpose of hedging interest rate liabilities in accordance with Clause

23.29 (Hedging)

or Clause 21.29 of the Mezzanine Facility Agreement.

 

“Hedging

Letter” means the letter dated on or about the date of this

Agreement from MGG to the Arrangers and the Mezzanine Arrangers, setting out

the interest rate hedging requirements to be implemented by the MGG Group.

 

“High Yield

Documents” means the High Yield Notes, any indentures and

registration rights agreement relating to the High Yield Notes, any permitted

guarantees provided in connection therewith, any Permitted High Yield Security,

any future paid-in-kind notes contemplated by such indentures and registration

rights agreement and any fee letters, indemnity letters, purchase agreements, refinancing

and engagement letter relating to the High Yield Notes and all other documents

relating to the issue of the High Yield Notes.

 

18

 

“High Yield

Notes” means any notes (other than Exchange Notes) issued by Newco 2

or, subject to the proviso at the end of this definition, any other person

which either:

 

(a)                                      satisfy the following conditions:

 

(i)                       the aggregate

gross proceeds of such notes do not exceed the total amount outstanding under

the Mezzanine Facility Agreement at the time such gross proceeds are advanced

(or its equivalent in other currencies);

 

(ii)                    such notes are

unsecured and are not guaranteed by any member of the Newco 2 Group save that

such notes may be secured by the Permitted High Yield Security;

 

(iii)                 the cash interest

contracted to be paid on such notes does not exceed 15% per annum;

 

(iv)                such notes do not

mature before the Final Maturity Date (as defined in the Mezzanine Facility

Agreement) and no amount of principal is scheduled to be paid thereunder before

the Final Maturity Date (as defined in the Mezzanine Facility Agreement);

 

(v)                   the gross proceeds

of such notes are immediately either (1) used to make a High Yield Proceeds

Loan (which is subject to the terms of the High Yield Subordination Agreement)

and prepay in full the total amount outstanding under the Mezzanine Facility

Agreement at the time such gross proceeds are advanced or (2) are held in an

escrow account with the bond trustee of the indenture relating to such High Yield

Notes or another appropriate third party on terms that such proceeds are either

released to Newco 2 upon confirmation from the relevant German court that the

registration of the share capital increase of Newco 2 has been effected so that

the contribution of the Family MGG Shares to Newco 2 is effective (and are then

applied by Newco 2 immediately to repay the Mezzanine Facility Agreement in the

manner set out in sub-paragraph (1) of this paragraph (v)) or are repaid to the

holders of the High Yield Notes if such confirmation is not received within 120

days of the proceeds being paid into such escrow account; or

 

(b)                                     are on terms and conditions which have been approved in writing by

the Majority Lenders (acting reasonably and having regard to the then current

market practice (if any) in the high yield bond market for the financing of

leveraged acquisitions in Europe); or

 

(c)                                      are notes which are issued in exchange, renewal or replacement or

extension of any of the notes which satisfy the provisions of paragraph (a) or

(b) above for the same or smaller amount,

 

provided that:

 

(A)                                  if the issuer of any High Yield Notes is to be a person other than

Newco 2 then the written consent of the Majority Lenders must be obtained prior

to such person issuing any High Yield Notes, such consent not to be

unreasonably withheld and (for the

 

19

 

avoidance of doubt) such consent may be given subject

to any changes to the provisions of this Agreement or any other Finance Document

which are designed to provide the Finance Parties with similar protections in

relation to the consequences of the issue of any such High Yield Notes as are

at that time contained in such Finance Documents in relation to Newco 2 being

the proposed issuer of any High Yield Notes; and

 

(B)                                    the aggregate gross proceeds of such notes may exceed the amount

specified in (a)(i) above by EUR 150,000,000 (the “Additional Amount”) if such

Additional Amount is immediately used to make a High Yield Proceeds Loan (which

is subject to the terms of the High Yield Subordination Agreement) and

EUR 115,000,000 of such Additional Amount used to make such High Yield

Proceeds Loan is immediately used to prepay the Facilities in the manner

specified in paragraph (d) of Clause 9.11 (Voluntary prepayment of Term Facility Loans).

 

“High Yield

Proceeds Loan” means any loan of the proceeds from the issue of the

High Yield Notes, to be made by Newco 2 to MGG, in each case pursuant to a High

Yield Proceeds Loan Agreement and is subordinated pursuant to the terms of a

High Yield Subordination Agreement.

 

“High Yield

Proceeds Loan Agreement” means a loan agreement substantially in the

form set out in schedule 1 of the High Yield Subordination Agreement between

Newco 2 as lender and MGG as borrower pursuant to which any High Yield Proceeds

Loan is to be made.

 

“High Yield

Subordination Agreement” means a subordination agreement

substantially in the agreed form between 

MGG and Newco 2 relating to the subordination of any High Yield Proceeds

Loan to the Outstandings and amounts outstanding under the Hedging Agreements

in respect of the authorisation and execution of such subordination agreement

the Agent has received a legal opinion from its German counsel in form and

substance acceptable to it (acting reasonably).

 

“Hoechst

Newco 2 Receivable” means the loan deemed to be made by the Vendor

to Newco 2 in the amount of EUR200,000,000 pursuant to the terms of section 2.4

of the BCA (and defined therein as the Hoechst Newco 2 Receivable) which loan

constitutes part of the consideration received by the Vendor for it

contributing the Vendor MGG Shares to Newco 2, with the Vendor’s rights in

relation to such loan to be transferred and assigned to the Company pursuant to

an assignment contract substantially as set forth in Exhibit 2.7(b) of the BCA

on the Closing Date in accordance with section 2.7(b) of the BCA.

 

“Hoechst

Newco 3” means DIOGENES Zwanzigste Vermögensverwaltungs GmbH, being

a newly incorporated German limited liability company registered with the

commercial register of Frankfurt am Main under HR B 48032 which:

 

(a)                                      is a wholly-owned Subsidiary of Hoechst Aktiengesellschaft;

 

(b)                                     pursuant to a restructuring to be carried out by the Vendor prior to

the Closing Date, will be the sole shareholder of Newco 2; and

 

(c)                                      pursuant to the terms of the Business Combination Agreement, will

sell the entire issued share capital of Newco 2 to the Company.

 

20

 

“Holding

Company” means, in relation to a company or corporation, any other

company or corporation in respect of which it is a Subsidiary.

 

“Holding

Operating Companies” means Air Gas Production Limited, Messer

Cryotherm GmbH & Co. KG, Buse Gas Dettmannsdorf GmbH and Sauerstoffvertrieb

Wilhelm Geldbach GmbH & Co. KG.

 

“IAS”

means International Accounting Standards in effect from time to time.

 

“Indebtedness

for Borrowed Money” means Financial Indebtedness save for any

indebtedness for or in respect of paragraphs (g) and (h) of the definition of “Financial

Indebtedness”.

 

“Indemnified

Unconsolidated Debt” means, at any time, the aggregate amount of

Unconsolidated Debt to the extent to which the member of the MGG Group

providing the Unconsolidated Debt is fully indemnified at such time by the

Vendor and/or Aventis either pursuant to the provisions of section 11.1 (Hoechst

Undertakings) and/or section 11.2 (Aventis Guarantee) of the

Singapore Separation Agreement or pursuant to any other agreement acceptable to

the Majority Lenders (acting reasonably).

 

“Information

Memorandum” means the information memorandum concerning the Company

and the MGG Group which, at the Company’s and/or MGG’s request and on its/their

behalf, is to be prepared in relation to this transaction, agreed between the

Bookrunners and MGG, approved by the Company and/or MGG and distributed by the

Bookrunners prior to the last Syndication Date to selected financial

institutions in connection with the syndication of the Facilities.

 

“Initial

Borrowers” means the members of the Group listed in Part I of

Schedule 1 (The

Closing Parties) as initial borrowers.

 

“Initial

German Borrowers” means each of the Initial Borrowers whose Relevant

Jurisdiction is Germany.

 

“Initial

Guarantors” means the members of the Group listed in Part I of

Schedule 1 (The

Closing Parties) as initial guarantors.

 

“Initial

Margin”  means:

 

(a)                                      in relation to the Term Disposal Facility, 2.25 per cent. per annum;

 

(b)                                     in relation to the Term A Facility, 2.25 per cent. per annum;

 

(c)                                      in relation to the Term B Facilities, 2.75 per cent. per annum;

 

(d)                                     in relation to the Term C Facilities, 3.25 per cent. per annum; and

 

(e)                                      in relation to each Revolving Facility, 2.25 per cent. per annum.

 

“Initial

Obligors” means the Initial Borrowers and the Initial Guarantors.

 

“Initial Sponsors”

means Allianz Capital Partners GmbH and GS Capital Partners 2000, L.P., GS

Capital Partners 2000 Employee Fund, L.P., GS 

 

21

 

Capital

Partners 2000 Offshore, L.P., GS Capital Partners 2000 GmbH & Co Beteiligungs

KG, Stone Street Fund 2000, L.P. and Bridge Street Special Opportunities Fund

2000, L.P.

 

“Insurance

Proceeds” means the cash proceeds of any insurance claim intended to

compensate for damage to any asset (but not for loss of profit) received by any

member of the Group, after deducting:

 

(a)                                      any reasonable out of pocket expenses incurred by any member of the

Group in relation to such a claim;

 

(b)                                     proceeds relating to third party claims, which are applied towards

meeting such claims; and

 

(c)                                      Taxes paid (or reasonably estimated to be payable) in respect

thereof or in respect of the remittance or transfer of all or any of such

proceeds to another member of the Group in order to enable any such proceeds to

be utilised in prepayment of outstanding Loans pursuant to the requirements of

Clause 9.6 (Insurance

Proceeds).

 

For the

purposes of this definition, the term “Group” shall at all times include the

Company.

 

“Intellectual

Property” means any and all rights and interests existing now or in

the future in any part of the world in or relating to registered and

unregistered trade marks and service marks, domain names, patents, registered

designs, utility models, trade names, business names, titles, registered or

unregistered copyrights in published and unpublished works, unregistered

designs, inventions registered or unregistered, data base rights, know-how, any

other intellectual property rights and any applications for any of the

foregoing and any goodwill therein.

 

“Intellectual

Property Rights” means any Intellectual Property owned by any member

of the Group.

 

“Intercreditor

Deed” means:

 

(a)                                      in relation to the Mezzanine Facility, the intercreditor deed to be

entered into in the agreed form between, among others, the Obligors, the

Finance Parties and the Mezzanine Finance Parties; and

 

(b)                                     in relation to any Direct Mezzanine Refinancing, the Direct

Mezzanine Refinancing Intercreditor Agreement.

 

“Interest

Period” means, in relation to a Loan, each period determined in

accordance with Clause 11 (Interest Periods and Terms) and, in

relation to an Unpaid Sum, each period determined in accordance with

Clause 10.6 (Default interest).

 

“Intra-Group

Loan” means any loan between members of the Newco 2 Group.

 

“Investors”

means the Initial Sponsors and MIG.

 

“IRS”

means the United States Internal Revenue Service or any successor thereto.

 

“Joint

Venture” means any joint venture entity, whether a company,

unincorporated firm, undertaking, association, joint venture or partnership or

any other entity, but in any event an

 

22

 

entity will

not be a Joint Venture in relation to any member of the MGG Group if that

entity is a member of the MGG Group or is an Unconsolidated Subsidiary of Newco

2 and will not be a Joint Venture in relation to any member of the MGG Group

unless that member of the MGG Group has (or, together with other members of the

MGG Group, have) an interest of more than 20% in the issued share capital or

equivalent ownership interest of such entity.

 

“KPMG

Business Plan Audit” mans the audit of the Business Plan carried out

by KPMG in the agreed form.

 

“L/C Amount”

means:

 

(a)                                      each sum paid or due and payable by a Fronting Bank to the

beneficiary of a Letter of Credit pursuant to the terms of that Letter of

Credit; and

 

(b)                                     all liabilities, costs (including, without limitation, any costs

incurred in funding any amount which falls due from a Fronting Bank under a

Letter of Credit), claims, losses and expenses which that Fronting Bank incurs

or sustains in connection with a Letter of Credit,

 

in each case

which has not been reimbursed pursuant to Clause 8.2 (Borrower’s indemnity to Fronting Banks).

 

“L/C

Commission Period”means, save as otherwise provided in this Agreement, any of

those periods mentioned in Clause 13.2 (Letter of Credit commission).

 

“L/C

Commission Rate” means, from time to time, a letter of credit

commission equal to the Margin applicable to Revolving Facility Loans at that

time.

 

“L/C

Proportion” means, in respect of any Letter of Credit under any

Revolving Facility and save as otherwise provided in this Agreement, the

proportion (expressed as a percentage) borne by a Lender’s Available Commitment

in respect of that Revolving Facility to the Available Facility in respect of

that Revolving Facility immediately prior to the issue of that Letter of

Credit.

 

“Legal

Reports” means:

 

(a)                                      the legal due diligence report, in the agreed form, on certain

members of the MGG Group prepared by Milbank, Tweed, Hadley & McCloy;

 

(b)                                     the legal due diligence report, in the agreed form, on certain

members of the MGG Group prepared by Hengeler Mueller Weitzel Wirtz; and

 

(c)                                      the legal due diligence report, in the agreed form, on certain

members of the MGG Group prepared by Baker & McKenzie.

 

“Lender”

means:

 

(a)                                      any Original Lender; and

 

(b)                                     any person which has become a Party in accordance with Clause 25 (Changes to

the Lenders),

 

23

 

which in each

case has not ceased to be a Party in accordance with the terms of this

Agreement.

 

“Letter of

Credit” means a letter of credit issued or to be issued by a

Fronting Bank under a Revolving Facility substantially in the form set out in

Schedule 12 (Form of Letter of Credit) or in such other form requested by

a Borrower which is acceptable to the Agent and the relevant Fronting Bank.

 

“Leverage

Ratio” means, in respect of any period, the ratio of Total Debt as

at the last day of such period to EBITDA for that period, as determined in

accordance with the provisions of Clause 22 (Financial Covenants).

 

“LIBOR”

means, in relation to any Loan:

 

(a)                                      the applicable Screen Rate; or

 

(b)                                     (if no Screen Rate is available for the currency or Interest Period

of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal

places) as supplied to the Agent at its request quoted by the Reference Banks

to leading banks in the London interbank market,

 

as of the

Specified Time on the Quotation Day for the offering of deposits in the

currency of that Loan and for a period comparable to the Interest Period for

that Loan and for these purposes in respect of the drawing of a Loan to be

advanced on the Closing Date LIBOR for the first Interest Period of such Loan

shall be determined by reference to paragraph (b).

 

“LMA”

means the Loan Market Association.

 

“Loan”

means a Term Disposal Facility Loan, a Term A Facility Loan, a Term B Euro

Facility Loan, a Term B Dollar Facility Loan, a Term C Euro Facility Loan, a

Term C Dollar Facility Loan, a Revolving Facility I Loan or a Revolving Facility

II Loan or (for the avoidance of any doubt), a Rollover Loan.

 

“Luxembourg

Obligor” means any Obligor whose Relevant Jurisdiction is

Luxembourg.

 

“Majority

Lenders” means a Lender or Lenders whose Commitments aggregate more

than 662/3% of the Total Commitments (or, if the Total

Commitments have been reduced to zero, aggregated more than 662/3%

of the Total Commitments immediately prior to the reduction) (and in order to

calculate the Majority Lenders on the basis of Total Commitments at any time

the amount in dollars of all Term B Dollar Facility Commitments and all Term C

Dollar Facility Commitments and all Term Disposal Facility Commitments shall be

calculated in euros at the Agent’s Spot Rate of Exchange on the date of this

Agreement).

 

“Mandatory Cost”

means the percentage rate per annum calculated by the Agent in accordance with

Schedule 4 (Mandatory

Cost Formulae).

 

“Margin”

means:

 

(a)                                      in respect of all Term Disposal Facility Loans, the Initial Margin

for the Term Disposal Facility;

 

24

 

(b)                                     in respect of all Term A Facility Loans and Revolving Facility

Loans, the percentage rate per annum determined in accordance with paragraph

(a) of Clause 10.2 (Margin Ratchets), Clause 10.3 (Margin

Changes) and Clause 10.4 (Default Margin);

 

(c)                                      in respect of all Term B Euro Facility Loans and all Term B Dollar

Facility Loans, the percentage rate per annum determined in accordance with

paragraph (b) of Clause 10.2 (Margin ratchets), Clause 10.3 (Margin

changes) and Clause 10.4 (Default Margin);

 

(d)                                     in respect of all Term C Dollar Facility Loans and all Term C Euro

Facility Loans, the Initial Margin for the Term C Facilities.

 

“Margin Stock”

means margin stock or “margin security” within the meaning of

Regulations T, U and X.

 

“Material

Adverse Effect”  means a material adverse effect on:

 

(a)                                      the business, operations, property or condition (financial or

otherwise) of the Group taken as a whole;

 

(b)                                     the ability of the Obligors to perform their respective payment

obligations under the Finance Documents or the ability of the Obligor’s Agent

to perform its obligations under Clause 22.2 (Financial Condition); or

 

(c)                                      the validity or enforceability of the Finance Documents or the

rights or remedies of any Finance Party under the Finance Documents in a manner

or to an extent which the Majority Lenders reasonably consider to be materially

prejudicial to the interests of any Finance Party under the Finance Documents.

 

“Material

Company” means, at any time:

 

(a)                                      a Subsidiary of Newco 2 which is listed in Schedule 13 (Material

Companies as at Signing) (provided that if after the Closing Date any

Subsidiary listed in such Schedule would not, but for this paragraph (a), be a

Material Company, it shall not be a Material Company); and/or

 

(b)                                     a Consolidated Subsidiary of Newco 2 which has EBITDA representing 3

per cent. or more of EBITDA of the Newco 2 Group; and/or

 

(c)                                      a Consolidated Subsidiary of Newco 2 which has gross assets

(excluding assets which are not included on consolidation) representing 3 per

cent. or more of gross assets of the Newco 2 Group; and/or

 

(d)                                     Newco 2 and each member of the Newco 2 Group which is a Holding

Company of a Subsidiary falling within paragraph (a), (b) or (c) above,

 

in each case

calculated on a consolidated basis.

 

Whether a

person is a Material Company within the conditions set out in paragraphs (b)

and (c) shall be determined by reference to the most recent Compliance

Certificate and/or Auditor’s Report supplied by the Obligor’s Agent and/or the

latest audited financial statements of that 

 

25

 

Consolidated

Subsidiary of Newco 2 (which statements shall, if customarily prepared or

required by applicable law to be, be consolidated in the case of a Consolidated

Subsidiary of Newco 2 which itself has Consolidated Subsidiaries of Newco 2)

and/or the latest audited consolidated financial statements of the Newco 2

Group. If a Consolidated Subsidiary of Newco 2 has been acquired since the date

as at which the latest audited consolidated financial statements of the Newco 2

Group were prepared, the financial statements shall be notionally adjusted, for

the purpose of the calculation, in order to take into account the acquisition

of that Consolidated Subsidiary (that adjustment being certified by the Newco 2

Group’s auditors), it being acknowledged that the auditors of Newco 2 are

entitled to rely on information regarding such acquired Consolidated Subsidiary

provided to them by the management or auditors of such acquired Consolidated

Subsidiary for the purpose of this calculation and that if the auditors of

Newco 2 certify that on the basis of such information they are of the opinion

that the gross assets (excluding assets which are not included on consolidation)

and EBITDA of such acquired Consolidated Subsidiary will be less than 3% of the

gross assets and EBITDA of the Newco 2 Group the notional adjustment will not

be required for that acquired Consolidated Subsidiary.

 

A report by

the auditors of Newco 2 that a Consolidated Subsidiary of Newco 2, for the

purpose of the calculation is or is not a Material Company shall, in the

absence of manifest error, be conclusive and 

binding on all Parties.

 

“Messer

Singapore” means Messer Singapore Pte. Limited, a company

incorporated in Singapore and which as at the date hereof is a direct

wholly-owned Subsidiary of MGG.

 

“Mezzanine

Agent” means the Mezzanine Agent (as defined in the Mezzanine

Facility Agreement).

 

“Mezzanine

Arrangers” means Goldman Sachs International, Bayerische Hypo-und

Vereinsbank AG and The Royal Bank of Scotland plc.

 

“Mezzanine

Facility” means the mezzanine loan facilities made under the

Mezzanine Facility Agreement.

 

“Mezzanine

Facility Agreement” means the mezzanine facility agreement dated on

or about the date of this Agreement and made between (among others) the

Company, the Mezzanine Agent, the Mezzanine Arrangers, the Security Trustee and

the banks and financial institutions named therein as Mezzanine Lenders,

setting out the terms and conditions on which the Mezzanine Outstandings will

be made available to MGG.

 

“Mezzanine

Fee Letter” means any letter or letters dated on or about the date

of the Mezzanine Facility Agreement between certain of the Mezzanine Arrangers

and the Company (or the Mezzanine Agent or the Security Trustee and the

Company) setting out any of the fees referred to in clause 11 of the Mezzanine

Facility Agreement.

 

“Mezzanine

Finance Documents” means the Mezzanine Facility Agreement, any

guarantor or borrower accession memoranda under the Mezzanine Facility

Agreement, the Security Documents, the Intercreditor Deed, any Priority Letter,

the Austrian Guarantee, any Mezzanine Fee Letter, the Mezzanine Syndication

Letter, any Transfer Certificate (as defined in the Mezzanine Facility

Agreement) other than any such Transfer Certificate to which Newco 2 is a

 

26

 

party, and any

other document designated as such by the Mezzanine Agent and the Obligor’s

Agent excluding the Exchange Notes and the Exchange Notes Loan Agreement.

 

“Mezzanine

Finance Parties” means the Mezzanine Lenders (excluding for the

avoidance of doubt Newco 2), the Mezzanine Agent, the Mezzanine Arrangers and

the Security Trustee.

 

“Mezzanine

Lenders” means the “Mezzanine Lenders” as defined in the

Mezzanine Facility Agreement.

 

“Mezzanine

Outstandings” means the aggregate amount outstanding at any time in

respect of principal under the Mezzanine Facility Agreement (not including, for

the avoidance of any doubt, any amounts outstanding under the Exchange Notes

Loan Agreement).

 

“Mezzanine

Syndication Letter” means the “Mezzanine Syndication Letter” as defined in

the Mezzanine Facility Agreement.

 

“MGG”

means Messer Griesheim GmbH, registered in the Handelsregister (commercial

register) of the Amtsgericht (local court) of Frankfurt am Main under HRB

7812.

 

“MGG

Acquisition” means the acquisition by the Company of the issued

share capital of Newco 2 pursuant to the terms of the Business Combination

Agreement.

 

“MGG Group”

means, at any time,  MGG and its

Consolidated Subsidiaries at that time provided that at any time during the Debtco

Structure Period it shall mean Debtco and its Consolidated Subsidiaries at that

time.

 

“MGG Joint

Venture” means a Joint Venture in which a member of the MGG Group

has an interest.

 

“MGG

Permitted Distributions” means each of the following:

 

(a)                                      dividends paid by MGG to Newco 2;

 

(b)                                     payments of any amounts by MGG to Newco 2 in respect of any

indebtedness under any Newco 2 Loan Agreement;

 

(c)                                      loans made by MGG to Newco 2; and

 

(d)                                     payments by MGG to any Holding Company of MGG to the extent

necessary to reimburse such Holding Company for any German trade tax liability

or any German VAT liability which, in either case, is payable by such Holding

Company but which is attributable to the business activities of MGG or which is

caused by Newco 2 on-lending the proceeds of any Refinancing Note to MGG or

Debtco, or by any Finance Document, any Mezzanine Finance Document, any

document executed in respect of a Direct Mezzanine Refinancing or by Newco 2

issuing any Refinancing Note,

 

provided that at

the time any such dividend or payment is paid or loan is advanced to Newco 2

(other than (1) pursuant to paragraph (d) or (2) during the Debtco Structure

Period) all of the following conditions are satisfied:

 

(A)                                  the Term Disposal Facility has been repaid in full and the

conditions specified in Clause 23.38 (Total Debt Relief Amount) have been met;

 

27

 

(B)                                    there is no Default which is continuing; and

 

(C)                                    the amount of any such dividend, payment or loan when aggregated

with all other dividends, payments or loans referred to in (a), (b) and (c)

above made in the calendar year in which such dividend, payment or loan is

proposed to be made would not exceed EUR7,500,000 or its equivalent.

 

“MIG”

means Messer Industriegesellschaft mbH, registered in the Handelsregister (commercial

register) of the Amtsgericht (Local Court) of Königstein am Taunus under HRB

1033.

 

“MIG Power of

Attorney” means each power of attorney from MIG delivered pursuant

to paragraph 5 of Part I of Schedule 2 (Conditions Precedent).

 

“Month”

means a period starting on one day in a calendar month and ending on the

numerically corresponding day in the next calendar month, except that:

 

(a)                                      subject to paragraph (c) below, if the numerically corresponding day

is not a Business Day, that period shall end on the next Business Day in that

calendar month in which that period is to end if there is one, or if there is

not, on the immediately preceding Business Day;

 

(b)                                     if there is no numerically corresponding day in the calendar month

in which that period is to end, that period shall end on the last Business Day

in that calendar month; and

 

(c)                                      in relation to determining the last day of an Interest Period, if an

Interest Period begins on the last Business Day of a calendar month, that

Interest Period shall end on the last Business Day in the calendar month in

which that Interest Period is to end.

 

The above rules

will only apply to the last Month of any period.

 

“Multiemployer

Plan” means a “multiemployer plan” (as defined in Section 4001(a)(3)

in ERISA) maintained or contributed to for employees of a US Group Member or

any ERISA Affiliate.

 

“Net Disposal

Proceeds” means in relation to a disposal of an asset, the gross

total proceeds of such disposal received by the member of the Group concerned

in cash less:

 

(a)                                      reasonable fees, commissions and other out of pocket expenses of the

Group incurred due to the disposal;

 

(b)                                     the VAT or similar Tax paid or reasonably estimated to be payable by

any member of the Group due to such disposal;

 

(c)                                      any income, capital gains or other Taxes incurred and required to be

paid or reasonably estimated to be payable by any member of the Group in

connection with (i) such disposal or (ii) the remittance or transfer of all or

any of such proceeds to another member of the Group in order to enable any such

proceeds to be utilised in prepayment of the Facilities pursuant to the requirements

of Clause 9.5 (Asset Disposals), in each case as reasonably determined in

good faith by such member of 

 

28

 

the Group on the basis of the existing tax rates

applicable to the gain (if any) and after taking into account all available

credits, deductions and allowances connected with such disposal;

 

(d)                                     that part of the gross total proceeds which is equal to the amount

(if any) of additional investment made by any member of the MGG Group in the

entity whose shares or assets have been disposed of, where such additional

investment was made after the Closing Date; and

 

(e)                                      that part of the gross total proceeds of any disposal which is

immediately upon such disposal occurring applied in repaying Indebtedness for

Borrowed Money of the member of the Group making such disposal.

 

For the

purposes of this definition, the term “Group” shall at all times include the

Company.

 

“Newco 2”

means DIOGENES Vierte Vermögensverwaltungs Aktiengesellschaft, a newly

incorporated German stock corporation registered in the Handelregister (commercial

register) of the Amtsgericht (local court) of Frankfurt am Main under HR B

42291 (whose name it is anticipated will be changed to Messer Griesheim Holding

AG) which:

 

(a)                                      pursuant to a restructuring to be carried out by the Vendor prior to

the Closing Date, will be the holder of the Vendor MGG Shares except during the

Debtco Structure Period (when it will be the holder of all the shares in

Debtco); and

 

(b)                                     pursuant to the terms of the Shareholders’ Agreement, will be

(immediately following the Closing Date) the holder of the Family MGG Shares

except during the Debtco Structure Period (when it will be the holder of all

the shares in Debtco).

 

“Newco 2

Group” means, at any time, Newco 2 and its Consolidated Subsidiaries

at that time.

 

“Newco 2 Loan”

means any loan from Newco 2 to MGG or Debtco (other than a High Yield Proceeds

Loan and an Exchange Notes Loan) which is made pursuant to a Newco 2 Loan

Agreement and is subordinated pursuant to the terms of a Newco 2 Loan

Subordination Agreement.

 

“Newco 2 Loan

Agreement” means a loan agreement entered into between Newco 2 as

lender and MGG or (as the case may be) Debtco as borrower governing the terms

of any Newco 2 Loan, such loan agreement to be in the form set out in schedule

1 of the Newco 2 Loan Subordination Agreement.

 

“Newco 2 Loan

Subordination Agreement” means a subordination agreement in the

agreed form between MGG or Debtco (as the case may be) and Newco 2 relating to

the subordination of the claims of Newco 2 under any Newco 2 Loan to the

Outstandings, amounts outstanding under the Hedging Agreements and the

Mezzanine Outstandings in respect of which the Agent has received a legal

opinion from its German counsel in form and substance satisfactory to it

(acting reasonably).

 

“Newco 2

Receivable” means the Hoechst Newco 2 Receivable.

 

“Non-Indemnified

Unconsolidated Debt” means, at any time, Unconsolidated Debt which

is not Indemnified Unconsolidated Debt at such time.

 

29

 

“Non

Wholly-Owned Subsidiary” means a Subsidiary of MGG which is not a

wholly-owned Subsidiary of MGG provided that at all times during which MGG owns

directly or indirectly at least 70% of the issued and voting share capital of

MG OdraGas Spol s.r.o. (whose Relevant Jurisdiction is the Czech Republic) (the

“Czech

Entity”) then the Czech Entity shall be deemed to be a wholly-owned

Subsidiary of MGG.

 

“Obligor”

means a Borrower or a Guarantor.

 

“Obligor’s

Agent” means:

 

(a)                                      until MGG becomes a Party, the Company;

 

(b)                                     at all times after MGG has become a Party (other than during the

Debtco Structure Period), MGG; and

 

(c)                                      at all times during the Debtco Structure Period, Debtco.

 

“OECD Country”

means any country for the time being a member of the Organisation for Economic

Co-operation and Development.

 

“Optional

Currency” means a currency (other than the Base Currency) which

complies with the conditions set out in Clause 4.3 (Conditions relating to Optional

Currencies and the Euro Unit).

 

“Original

Financial Statements” means the audited consolidated financial

statements of the MGG Group for the financial year ended 31 December 2000.

 

“Outstandings”

means at any time, the aggregate of the Base Currency Amounts of the outstanding

Loans and the amount of the maximum actual and contingent liabilities of the

Lenders in respect of each outstanding Letter of Credit and Bank Guarantee.

 

“Participating

Member State” means any member state of the European Communities

that adopts or has adopted the euro as its lawful currency in accordance with

legislation of the European Union relating to European Monetary Union.

 

“Party”

means a party to this Agreement and includes its successors in title, permitted

assigns and permitted transferees.

 

“PBGC”

means the US Pension Benefit Guaranty Corporation, or any entity succeeding to

all or any of its functions under ERISA.

 

“Permitted

Acquisitions” means:

 

(a)                                      acquisitions of Cash Equivalent Investments;

 

(b)                                     acquisitions of any assets by a Holding Company of MGG from a

Holding Company of MGG;

 

(c)                                      acquisitions of assets by a member of the MGG Group from another

member of the MGG Group;

 

30

 

(d)                                     acquisitions (including the China Acquisition) expressly contemplated

in the Business Combination Agreement (excluding all of its schedules, exhibits

and attachments) and/or the Ancillary Agreements (as defined therein) in the

manner and at the time and subject to the terms and circumstances set out in

the Business Combination Agreement (excluding all of its schedules, exhibits

and attachments) and/or the Ancillary Agreements (as defined therein);

 

(e)                                      acquisitions comprising the purchase, subscription for, or other

acquisition of any new shares or other equity investment in any member of the

MGG Group (the “Relevant Entity”) by another member of the MGG Group provided

that:

 

(i)                        if Security has been given to the Security Trustee or the Finance

Parties over any of the existing shares in the Relevant Entity, equivalent

Security is provided as soon as reasonably practicable over the new shares or

equity investment in favour of either the Security Trustee or the Finance

Parties; and

 

(ii)                     if such acquisition is in shares or other equity investments in a

Non Wholly-Owned Subsidiary, the requirements of Clause 23.7 (Joint

Ventures and Non Wholly-Owned Subsidiaries) would be complied with;

 

(f)                                        acquisitions comprising the purchase, subscription for, or the

acquisition of any shares or other equity investment in any Joint Venture or

Unconsolidated Subsidiary of Newco 2 provided that the requirements of Clause

23.7 (Joint

Ventures and Non Wholly-Owned Subsidiaries) would be complied with;

 

(g)                                     acquisitions comprising the purchase, subscription for, or the

acquisition of any shares or other equity investment in any Joint Venture or

Unconsolidated Subsidiary of Newco 2 pursuant to binding arrangements which

were existing prior to the Closing Date;

 

(h)                                     subject to the proviso below acquisitions of any assets not

otherwise included in other paragraphs of this definition and not made in the

ordinary course of business and which are not Permitted Capital Expenditure at

any time in an amount up to the Additional Basket at such time;

 

(i)                                         the acquisition by the Company of any Holding Operating Company for

fair market value;

 

(j)                                         acquisitions of Comparable Assets (as defined in paragraph (e) of

the definition of Permitted Disposals) in the circumstances permitted in

paragraph (e) of the definition of Permitted Disposals; and

 

(k)                                      acquisitions which are not in the ordinary course of business and

which are not Permitted Capital Expenditure and which do not fall within

paragraphs (a) to (j) above where the total consideration (both cash and non-cash,

including the amount of indebtedness assumed by the purchaser or remaining in

the assets acquired and the amount of any deferred purchase price) for such

acquisitions in aggregate from the date of this Agreement does not exceed (if

such acquisition is made prior to the Relevant Debt Relief Amount being at

least EUR255,000,000 (or its equivalent in other currencies) and the Term

Disposal Facility being repaid in full) EUR75,000,000

 

31

 

(or its equivalent in another currency or currencies)

or (if such acquisition is made after the Relevant Debt Relief Amount has

exceeded EUR255,000,000 (or its equivalent in other currencies) and the Term

Disposal Facility has been repaid in full) EUR250,000,000 (or its equivalent in

other currencies),

 

provided

that in the case of any acquisition falling within paragraph (h) or (k) above

at the time of such acquisition the following conditions are satisfied:

 

(A)                                  there is no Default which is continuing; and

 

(B)                                    if the amount of the consideration for the acquisition (calculated

as in paragraph (k) above) is greater than EUR10,000,000 (or its equivalent in

other currencies), the Obligor’s Agent has supplied to the Agent a certificate

signed by any of its Prokurists, supported by accompanying calculations,

demonstrating that if the EBITDA of or attributable to those assets, and the

debt to be added to the consolidated balance sheet of the Newco 2 Group as a

result of the acquisition, were included, on a pro forma basis, in the

calculation of the Leverage Ratio as at the last Quarter Date in respect of

which financial statements have been delivered pursuant to Clause 21.1 (Financial

statements), the requirements of paragraph (d) of Clause 22.2 (Financial

condition) would have been satisfied.

 

“Permitted

Capital Expenditure” means any Capital Expenditure permitted to be

made pursuant to the provisions of Clause 22.3 (Capital Expenditure).

 

“Permitted

Disposals” means:

 

(a)                                      disposals of assets by any member of the Group in its ordinary

course of trading;

 

(b)                                     disposals:

 

(i)                       of assets (but not shares in MGG) by a Holding Company of MGG (other

than Debtco) to another Holding Company of MGG (other than Debtco);

 

(ii)                    of assets by a member of the MGG Group to another member of the MGG

Group;

 

(c)                                      disposals for cash of any surplus or obsolete or worn-out assets or

other assets which have been lost or which are disposed of to a customer on

arm’s length terms on termination of a business relationship which in the

reasonable opinion of the member of the Group making the disposal are not

required for the efficient operation of the business of the Group as a whole;

 

(d)                                     disposals of Cash Equivalent Investments on arm’s length terms;

 

(e)                                      disposals on arm’s length terms of assets either:

 

(i)                        in return for

or simultaneous with the acquisition by a member of the MGG Group of other

assets (“Comparable

Assets”) which in the reasonable opinion of the relevant member of

the Group making the disposal are of comparable or greater value or earnings

generation potential (and, if the assets disposed of are in a Core Country, the

Comparable Assets must also be in a Core Country) 

 

32

 

provided

that to the extent that consideration other than the disposed assets is used to

acquire such Comparable Assets the acquisition of those assets for an amount

equal to that additional consideration would be a Permitted Acquisition; or

 

(ii)                     in respect of

which prior to the expiry of 180 days after receipt by the relevant member of

the Group of the Net Disposal Proceeds relating to the disposal of such assets

the relevant member of the Group making such disposal or another member of the

Group (which other member of the Group is, if the member of the Group making

such disposal is incorporated in a Core Country, also incorporated in a Core

Country) has either (A) acquired Comparable Assets with such Net Disposal

Proceeds or (B) entered into a binding commitment to acquire Comparable Assets

and does so acquire such Comparable Assets within 360 days of the date of

receipt of such Net Disposal Proceeds provided that until either (A) or (B) is

satisfied an amount equal to such Net Disposal Proceeds is placed in a

Prepayment Escrow Account within 5 Business Days of receipt thereof by a member

of the Group;

 

provided that:

 

(i)                        the aggregate

fair market value of assets which are permitted to be disposed of pursuant to

this paragraph (e) does not from the date of this Agreement exceed

EUR250,000,000 (or its equivalent in other currencies); and

 

(ii)                     if any asset

proposed to be disposed of pursuant to this paragraph (e) whose fair market

value is greater than EUR10,000,000 (or its equivalent in other currencies) is

subject to security provided under any Security Document or is owned by a

member of the Group whose shares are pledged under a Security Document, then

for such disposal to be permitted pursuant to this paragraph (e) the Obligor’s

Agent shall either have supplied to the Agent a certificate signed by any of

its Prokurists, supported by accompanying calculations, demonstrating either:

 

(x)                                                  that if the book value of the assets to be disposed of and the

EBITDA attributable to such assets disposed of had not been taken into account

in the then most recent Compliance Certificate or Auditor’s Report (and, if the

asset to be acquired is to be owned by a Security Party, the book value of and

EBITDA attributable to the  asset to be

acquired had been taken into account) for determining compliance with the

provisions of paragraphs (a) and (b) of Clause 23.30 (Guarantor Group and Security Coverage)

it would have been in compliance with such paragraphs (a) and (b) of Clause

23.30; or

 

(y)                                                if (x) is not satisfied, a company will become an Additional

Guarantor and/or additional Security Documents will be entered into prior to

such disposal which, if included in such Compliance Certificate or Auditor’s

Request, would have meant that the provisions of paragraphs (a) and (b) of

Clause 23.30 were complied with;

 

33

 

(f)                                        the granting of leases or licences over property on arm’s length

terms, where such property is not required to allow the continued operation of

the business of the Group as a whole;

 

(g)                                     disposals of cash where such disposal is not prohibited by the

Finance Documents (including cash payments to the Company which do not give

rise to an Event of Default under Clause 23.9 (Dividends and Distributions));

 

(h)                                     disposals made pursuant to the implementation of the Disposal Plan;

 

(i)                                         disposals which pursuant to the provisions of section 14 (Approval of

Budgets and Business Plan by the Shareholders’ Committee) of the

Shareholders’ Agreement either do not require the consent of 75% of the votes

cast at a Shareholders Committee or Shareholders Meeting (each as referred to

therein) or to which MIG is obliged to consent;

 

(j)                                         disposals expressly contemplated in the Business Combination

Agreement (excluding all of its schedules, exhibits and attachments) and/or the

Ancillary Agreements in the manner and at the time and subject to the terms and

circumstances set out in the Business Combination Agreement (excluding all of

its schedules, exhibits and attachments but including, without limitation, any

disposals that may be required pursuant to section 3.3 (Exemption of Certain Transactions)

of the BCA);

 

(k)                                      a disposal by:

 

(i)                        Newco 2 of its

shares in MGG to Debtco provided that the shares in MGG remain or

are immediately pledged pursuant to a Security Document;

 

(ii)                     Debtco of its

shares in MGG to Newco 2 provided that the shares in MGG remain or

are immediately pledged pursuant to a Security Document;

 

(iii)                  MGG of its shares in

Messer Singapore, its shares in Syngas and the other Transferred Assets and

Transferred Liabilities of MGG relating to such companies as referred to in the

Singapore Separation Agreement to Singapore SPV on the terms and conditions set

out in the Singapore Separation Agreement;

 

(iv)                 MGG or any Subsidiary

of MGG of its shares in a Central American Entity or a disposal by a Central

American Entity of substantially all of its assets to MIG or a person

designated by MIG provided that (A) such disposal is made on an arm’s length

basis in good faith and in the commercial interests of the members of the MGG

Group (other than the Central American Entity) party thereto and (B) 50% of the

consideration for such disposal is received by the MGG Group in cash; and

 

(v)                    the relevant

members of the MGG Group of the shares in the Holding Operating Companies to

the Company for fair market value;

 

(l)                                         any disposal of assets pursuant to and on the terms of the Existing

Factoring Programme or a Permitted Factoring Programme;

 

34

 

(m)                                   any disposal to which the Majority Lenders have given their prior

written consent;

 

(n)                                     any other disposal(s) on arm’s length terms provided that the aggregate

consideration received for such disposal(s) (both cash and non-cash, including

the amount of Indebtedness for Borrowed Money assumed by the purchaser or

remaining in the assets disposed of or (if the disposal relates to a disposal

of less than the whole of the issued shares of a person) the relevant

proportion of such Indebtedness for Borrowed Money):

 

(i)                        is no greater

than EUR50,000,000 (or its equivalent in another currency or currencies) in any

calendar year; and

 

(ii)                     from the date of

this Agreement is no greater than EUR250,000,000 (or its equivalent in another

currency or currencies),

 

provided that

 

(A)                                  any disposal by way of the sale of the shares in any member of the

Group (other than the disposal referred to in paragraph (k)(iii) above) or the

sale of substantially all of the assets of a member of the Group which would

otherwise be permitted under any of the paragraphs of this definition shall not

be permitted if any member of the Group after such disposal would remain liable

for any contingent liabilities relating to the member of the Group which is to

be sold or the business which is to be sold other than those which it would be

customary and usual for a disposing company to remain liable for; and

 

(B)                                    in the case of disposals of assets under paragraphs (h), (i) and (n)

above the consideration for such disposals may only comprise one or more of the

elements set out in (1), (2) and (3) below and may include in addition

consideration in the form of (4) below:

 

(1)                     cash payable on the completion of the disposals;

 

(2)                     an obligation of the purchaser of such assets to pay the remainder

of the purchase price at a date or dates no later than 3 years after the

completion of such disposal (a “Deferred Purchase Obligation”) (provided

that the aggregate amount of all such Deferred Purchase Obligations which have

not been paid in cash to the relevant vendor or otherwise monetarised shall at

no time exceed EUR100,000,000 (or its equivalent in other currencies));

 

(3)                     the assumption of indebtedness by the purchaser or remaining in the

asset disposed of; and

 

(4)                     an amount of cash payable in the nature of an earn out payment by

the purchaser to the vendor of any such asset which is genuinely contingent and

dependent on the future performance or future value of the asset disposed of

shall not count towards the limits set out in paragraph (n) or paragraph (2)

above.

 

35

 

“Permitted

Distributions” means the payment or declaration of any dividend,

return on capital, repayment of capital contributions or other distribution or

payment in respect of share capital by any member of the MGG Group other than:

 

(a)                                      by MGG save that MGG may:

 

(i)                        pay dividends which are MGG Permitted Distributions; and

 

(ii)                     pay any dividend to Debtco during the Debtco Structure Period;

 

(b)                                     by Debtco save that Debtco may pay dividends which are Debtco

Permitted Distributions,

 

provided that (save

as otherwise permitted pursuant to paragraphs (a) or (b) or pursuant to the

Intercreditor Deed) if a Default has occurred which is continuing no such

payment, declaration, return, repayment distribution or payment may be made by

a member of the Group who is an Obligor to another member of the Group who is

not a wholly-owned Subsidiary of MGG or (during the Debtco Structure Period)

Debtco other than to MGG or (during the Debtco Structure Period) Debtco.

 

“Permitted

Exchange Notes Security” means the following security in favour of

the bond trustee of the holders of the Exchange Notes:

 

(a)                                      an assignment in substantially the agreed form by Newco 2 over its

rights to receive the excess proceeds (if any) remaining after a sale of the

shares in MGG pursuant to an enforcement of the pledge over the shares in MGG

and after all Senior Liabilities (as defined in the Intercreditor Deed) have

been fully paid and discharged in full to the satisfaction of the Agent (acting

reasonably); and

 

(b)                                     an assignment in substantially the agreed form by Newco 2 over its

rights in relation to the proceeds of the Exchange Notes Loan.

 

“Permitted

Factoring Programme” means any factoring programme permitted

pursuant to paragraph (k) in the definition of Permitted Indebtedness in this

Clause 1.1 (Definitions).

 

“Permitted

High Yield Security” means the following security in favour of the

bond trustee of the holders of the High Yield Notes:

 

(a)                                      an assignment in substantially the agreed form by Newco 2 over its

rights to receive the excess proceeds (if any) remaining after a sale of the

shares in MGG pursuant to an enforcement of the pledge over the shares in MGG

and after all Senior Liabilities (as defined in the Intercreditor Deed) have

been fully paid and discharged in full to the satisfaction of the Agent (acting

reasonably); and

 

(b)                                     an assignment in substantially the agreed form by Newco 2 over its

rights in relation to the proceeds of the High Yield Proceeds Loan.

 

36

 

“Permitted

Indebtedness” means:

 

(a)                                      any Financial Indebtedness arising under or permitted pursuant to

the Finance Documents or the Mezzanine Finance Documents or any Direct

Mezzanine Refinancing Facility;

 

(b)                                     any Financial Indebtedness arising under Permitted Loans and

Guarantees;

 

(c)                                      any Financial Indebtedness arising under Permitted Treasury

Transactions;

 

(d)                                     any Financial Indebtedness provided that such Financial Indebtedness

is subordinated on terms acceptable to the Majority Lenders (acting

reasonably);

 

(e)                                      any Financial Indebtedness of any Obligor in respect of a bank

account held as part of a cash pooling or similar arrangement with any other

Obligor(s);

 

(f)                                        any Financial Indebtedness to the extent such is supported by any

Letter of Credit or Bank Guarantee issued under this Agreement or is secured

(directly or indirectly) by cash collateral provided by any member of the Group

from the proceeds of any Loan made under this Agreement or under the Mezzanine

Facility Agreement;

 

(g)                                     any Financial Indebtedness arising under the High Yield Documents or

any Exchange Notes Documents;

 

(h)                                     any Financial Indebtedness in respect of Finance Leases provided

that the aggregate amount of Financial Indebtedness which falls

within this paragraph (h) does not exceed EUR150,000,000 (or its equivalent in

another currency or currencies) at any time;

 

(i)                                         any Financial Indebtedness arising under any Permitted Local

Facilities;

 

(j)                                         any Financial Indebtedness arising under any Existing Indebtedness

(which is not otherwise permitted under any paragraph of this definition of

Permitted Indebtedness other than paragraph (l));

 

(k)                                      any Financial Indebtedness:

 

(i)                        incurred

pursuant to the terms of the Existing Factoring Programme provided that (A) the

aggregate amount of such Financial Indebtedness does not exceed DM 100,000,000

(or its equivalent in other currencies) at any time and (B) such Existing

Factoring Programme is terminated and the aggregate amount of Financial

Indebtedness incurred pursuant to it permanently reduced to zero within 31 days

of the Closing Date; or

 

(ii)                     incurred pursuant

to the terms of any factoring arrangements other than under the Existing

Factoring Programme provided that the aggregate amount of such

Financial Indebtedness does not exceed EUR15,000,000 (or its equivalent in

other currencies) at any time;

 

(l)                                         any Financial Indebtedness (excluding Financial Indebtedness of

Newco 2) not falling within paragraphs (a) to (k) above provided that the aggregate

amount of Financial

 

37

 

Indebtedness falling within this paragraph (l) does

not exceed EUR50,000,000 (or its equivalent in another currency or currencies)

at any time;

 

(m)                                   any Financial Indebtedness of Newco 2 under the Newco 2 Receivable

or in respect of a loan made by the Company to Newco 2;

 

(n)                                     any Financial Indebtedness to which the Majority Lenders have given

their prior written consent.

 

“Permitted

Loans and Guarantees” means:

 

(a)                                      trade credit or indemnities granted in the ordinary course of

business on usual and customary terms or guarantees of such trade credit or

indemnities granted in the ordinary course of business on usual and customary

terms;

 

(b)                                     Intra-Group Loans provided that:

 

(i)                        no member of

the MGG Group may make a loan to any Holding Company of MGG save that MGG may

make loans which are MGG Permitted Distributions, Debtco may make loans which

are Debtco Permitted Distributions and (during the Debtco Structure Period)

members of the MGG Group may make loans to Debtco;

 

(ii)                     no loan may be

made by any Holding Company of MGG (other than, during the Debtco Structure Period,

Debtco) to any member of the MGG Group other than:

 

(A)            a

High Yield Proceeds Loan; or

 

(B)              a

Newco 2 Loan; or

 

(C)              an

Exchange Notes Loan;

 

(iii)                  no loan may be made

by MGG or Debtco or a wholly-owned Subsidiary of MGG to a Non Wholly-Owned

Subsidiary that is not an Obligor unless the requirements of Clause 23.7 (Joint

Ventures and Non Wholly-Owned Subsidiaries) would be complied with;

 

(iv)                 in the case of any

Intra-Group Loan entered into by any Obligor as a borrower or lender that

Obligor has acceded to the Intercreditor Deed as an Intra-Group Borrower or

Intra-Group Lender (as appropriate) pursuant to the terms thereof or is already

party to the Intercreditor Deed in such capacity;

 

(v)                    in the case of any

Intra-Group Loan entered into by an Obligor as borrower (other than a loan

permitted pursuant to sub-paragraph (ii) or (vi) of this paragraph (b)) the

lender of such loan has acceded to the Intercreditor Deed as an Intra-Group

Lender;

 

(vi)                 the aggregate amount

of Financial Indebtedness at any time owed by Obligors under Intra-Group Loans

to members of the MGG Group who are not party to the Intercreditor Deed as

Intra-Group Lenders does not exceed EUR100,000,000 (or its equivalent in other

currencies);

 

38

 

(vii)              any Intra-Group Loan

made by a Treasury Borrower shall be made in accordance with the provisions of

a Treasury Borrower Loan Agreement;

 

(viii)           any Intra-Group Loan made

by Debtco as lender may only be made to MGG as borrower and shall expressly

provide that it is governed by German law;

 

(c)                                      loans to MGG Joint Ventures or Unconsolidated Subsidiaries of Newco

2 by members of the MGG Group which are made pursuant to binding arrangements

which were existing prior to the Closing Date;

 

(d)                                     loans to an MGG Joint Venture or an Unconsolidated Subsidiary of

Newco 2 by a member of the MGG Group which do not fall within paragraph (c)

above or paragraph (g) below provided that the requirements of Clause

23.7 (Joint

Ventures and Non Wholly-Owned Subsidiaries) would be complied with;

 

(e)                                      loans constituting Permitted Indebtedness or guarantees or

indemnities which would constitute Permitted Indebtedness or guarantees or

indemnities in respect of Permitted Local Facilities;

 

(f)                                        loans to employees of the MGG Group and guarantees of loans to such

employees provided

that the aggregate principal amount of all such loans and guarantees

does not exceed EUR10,000,000 (or its equivalent in other currencies) at any

time;

 

(g)                                     Messer International GmbH may make loans to Singapore SPV in order

to satisfy its obligations pursuant to the provisions of section 4.2 (Making of

Shareholder Loans) of the Singapore Separation Agreement provided

that (i) such loans are repayable by Singapore SPV on the terms and

conditions specified in the Singapore Separation Agreement and (ii) the

aggregate amount of all such loans does not exceed at any time DM 180,000,000

(or its equivalent) less the Hoechst Closing Amount (as defined in section 4.5

of the Singapore Separation Agreement, being the amount confirmed under

paragraph 3(e) of Part I of Schedule 2 (Conditions Precedent));

 

(h)                                     guarantees or indemnities given by members of the MGG Group in

respect of indebtedness of MGG Joint Ventures or Unconsolidated Subsidiaries of

Newco 2 which are made pursuant to binding arrangements which were existing

prior to the Closing Date;

 

(i)                                         guarantees or indemnities given by members of the MGG Group in

respect of indebtedness of MGG Joint Ventures or Unconsolidated Subsidiaries of

Newco 2 which do not fall within paragraph (h) above provided that the

requirements of Clause 23.7 (Joint Ventures and Non Wholly-Owned Subsidiaries)

would be complied with;

 

(j)                                         guarantees or indemnities given by a member of the MGG Group in

respect of the indebtedness of another member of the MGG Group provided that no

such guarantees or indemnities may be given by MGG or Debtco or a wholly-owned

Subsidiary of MGG in respect of the indebtedness of a Non Wholly-Owned

Subsidiary that is not an Obligor unless the requirements of Clause 23.7 (Joint

Ventures and Non Wholly-Owned Subsidiaries) would be complied with;

 

39

 

(k)                                      the extension of credit by a member of the Group making a disposal

of an asset to the purchaser of such asset provided that in the case of disposals made

under paragraphs (h), (i) and (n) of the definition of Permitted Disposals such

credit is permitted pursuant to paragraph (B) of the proviso at the end of the

definition of Permitted Disposals; and

 

(l)                                         the leases and licenses granted by Messer Griesheim Zweite

Vermögensverwaltungs GmbH and Messer Griesheim Erste Vermögensverwaltungs GmbH

to NGG pursuant to the lease and licence agreements dated 20 December 2002

entered into in relation to the Sale and Leaseback Transaction.

 

“Permitted

Local Facilities” means any bank facilities (other than facilities

provided under the Finance Documents or the Mezzanine Finance Documents or any

Direct Mezzanine Refinancing Facility) made available to members of the MGG

Group (on normal commercial terms) provided that: (a) the aggregate

indebtedness of all members of the MGG Group in respect of such bank facilities

at no time exceeds EUR100,000,000 (or its equivalent in any other currency or

currencies); and (b) no one such bank facility is capable of having more than

EUR10,000,000 (or its equivalent in other currencies) outstanding at any one

time.

 

“Permitted

Security” means:

 

(a)                                      any Security entered into pursuant to any of the Finance Documents

or the Mezzanine Finance Documents or any Direct Mezzanine Refinancing or any

Permitted High Yield Security or any Permitted Exchange Notes Security;

 

(b)                                     any Security which was provided prior to the Closing Date by any

member of the MGG Group provided that the principal amount of

indebtedness secured by any such Security as at the Closing Date is not

increased and the aggregate principal amount of indebtedness secured by all

such Security after the first Loan has been made hereunder is not greater than

EUR25,000,000 (or its equivalent in other currencies) subject to the proviso at

the end of this definition;

 

(c)                                      any netting or set-off arrangement (or any Security over a credit

balance in a bank account which is entered into in order to effect such an

arrangement) entered into:

 

(i)                        by any member

of the Group in the normal course of its banking arrangements; or

 

(ii)                     by any member of

the MGG Group in relation to another member of the MGG Group in connection with

any cash pooling or similar arrangements between such members of the MGG Group;

or

 

(iii)                  in the ordinary

course of trade;

 

(d)                                     any netting or set-off arrangement under a Hedging Agreement where

the obligations of other parties thereunder are calculated by reference to net

exposure thereunder (but not any netting or set-off relating to such Hedging

Agreement in respect of cash collateral or any other Security except as

otherwise permitted under this Agreement);

 

(e)                                      any lien arising by operation of law and in the ordinary course of

trading;

 

40

 

(f)                                        any Security over or affecting (or Quasi Security affecting) any

asset acquired by a member of the Group after the date of this Agreement if:

 

(i)                        the Security

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

asset by a member of the Group;

 

(ii)                     the principal

amount secured has not been increased in contemplation of, or since the

acquisition of that asset by a member of the Group; and

 

(iii)                  the Security or

Quasi-Security is removed or discharged within three months of the date of

acquisition of such asset;

 

(g)                                     any Security or Quasi-Security over or affecting any asset of any

company which becomes a member of the Group after the date of this Agreement,

where the Security or Quasi-Security is created prior to the date on which that

company becomes a member of the Group, if:

 

(i)                        the Security

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

company;

 

(ii)                     the principal

amount secured has not increased in contemplation of or since the acquisition

of that company; and

 

(iii)                  the Security or

Quasi-Security is removed or discharged within three months of that company

becoming a member of the Group;

 

(h)                                     any title transfer or retention of title arrangement entered into by

any member of the Group in the normal course of its trading activities on the

counterparty’s standard or usual terms;

 

(i)                                         any lien in favour of a bank over goods and documents of title to

goods arising in the ordinary course of documentary credit transactions entered

into in the ordinary course of trade;

 

(j)                                         any Security arising under the general business conditions of any

credit institution with whom any member of the Group maintains a banking

relationship in the ordinary course of business;

 

(k)                                      any Security arising on rental deposits in connection with the

occupation of leasehold premises in the ordinary course of business;

 

(l)                                         any Security arising by operation of law in favour of any

government, state or local authority in respect of taxes, assessments or

government charges which are being contested by the relevant member of the

Group in good faith;

 

(m)                                   any Security or Quasi Security securing Permitted Local Facilities

subject to the proviso at the end of this definition;

 

(n)                                     any Security provided by Messer Trinidad and Tobago Limited to

International Finance Corporation (“IFC”) securing amounts owing under the loan

agreement dated 15 February 2000 made between Messer Trinidad and Tobago

Limited and IFC;

 

41

 

(o)                                     any Security over a deposit in a bank account providing cash

collateral in respect of any Existing Indebtedness or securing (directly or

indirectly) any Financial Indebtedness falling within paragraph (f) of the

definition of Permitted Indebtedness;

 

(p)                                     any Security or Quasi-Security arising under or in respect of any

Finance Lease falling within paragraph (h) of the definition of Permitted

Indebtedness;

 

(q)                                     any Security or Quasi-Security not falling within paragraphs (a) to

(p) above securing indebtedness and/or other obligations the aggregate

principal amount of which does not exceed EUR50,000,000 (or its equivalent in

another currency or currencies) subject to the proviso at the end of this

definition; and

 

(r)                                        any Security to which the Majority Lenders have given their prior

written consent,

 

provided that the Security or Quasi

Security falling within:

 

(a)                                      paragraphs (b), (m) and (q) above; and

 

(b)                                     paragraph (j) above (but only to the extent that such Security or

Quasi Security constitutes a pledge or other Security or Quasi-Security over

documents held with any credit institution and is not permitted under any other

paragraph of Permitted Security and secures obligations other than obligations

which are owing under the Finance Documents),

 

may not at any

time after the first Loan is made hereunder secure indebtedness and/or other

obligations (or, in the case of any Security or Quasi Security falling under

paragraph (j) above (to the extent relevant as described in paragraph (b) of

this proviso) the value of the assets subject to such Security) the aggregate

principal amount of which exceeds EUR75,000,000 (or its equivalent in other

currencies).

 

“Permitted

Treasury Transactions” means:

 

(a)                                      the Treasury Transactions entered into in accordance with Clause

23.29 (Hedging);

 

(b)                                     the Treasury Transactions, if any, which are foreign exchange

transactions entered into with a Hedge Counterparty in connection with payments

made or to be made by any Obligor in connection with the Acquisition; and

 

(c)                                      any other foreign exchange transactions for spot or forward delivery

entered into in the ordinary course of business (and not for investment or

speculative purposes) to hedge currency exposures (including, without

limitation, currency exposure relating to Loans made in an Optional Currency)

incurred by any member of the Group.

 

“Prepayment

Escrow Account” means an interest bearing account held with the

Agent (or such other financial institution reasonably acceptable to the Agent)

in the name of any Obligor (and identified as a Prepayment Escrow Account),

over which such Obligor has granted Security in favour of the Security Trustee

or all of the Finance Parties and into which sums are deposited in accordance

with Clause 9 (Prepayment and Cancellation) and may not be withdrawn by any

member of the Group other than as provided by Clause 9 (Prepayment and Cancellation).

 

42

 

“Prepayment

Order” means, in respect of any amount to be applied in repayment of

any Term Disposal Facility Loans, Term A Facility Loans, Term B Euro Facility

Loans, Term B Dollar Facility Loans, Term C Euro Facility Loans or Term C

Dollar Facility Loans in accordance with Clause 9.8 (Application of Prepayments),

the application of such amount as follows either:

 

(a)

 

(i)                        as to 50 per

cent. of such amount, the application of such in satisfaction of the

obligations under Clause 7.1 (Repayment of Term Disposal Facility Loans),

Clause 7.2 (Repayment

of Term A Facility Loans), Clause 7.3 (Repayment of Term B Dollar Facility

Loans), Clause 7.4 (Repayment of Term B Euro Facility Loans),

Clause 7.5 (Repayment

of Term C Euro Facility Loans) or, as the case may be, Clause 7.6 (Repayment of

Term C Dollar Facility Loans) in inverse chronological order; and

 

(ii)                     as to the remaining

50 per cent. of such amount, the application of such in satisfaction of the

obligations under Clause 7.1 (Repayment of Term Disposal Facility Loans),

Clause 7.2 (Repayment

of Term A Facility Loans), Clause 7.3 (Repayment of Term B Dollar Facility

Loans), Clause 7.4 (Repayment of Term B Euro Facility Loans),

Clause 7.5 (Repayment

of Term C Euro Facility Loans) or, as the case may be, Clause 7.6 (Repayment of

Term C Dollar Facility Loans) pro rata across the Outstandings under

each of the relevant Term Facilities; or

 

(b)                                     (if the Obligor’s Agent has notified the Agent in accordance with

Clause 9.8(a)(i) or Clause 9.8(b)(i) (Application

of prepayments), or Clause 9.11(c)(ii) (Voluntary prepayment of Term Facility Loans)), as to 100 per

cent. of such amount, the application of such in satisfaction of the

obligations under Clause 7.1 (Repayment of Term Disposal Facility Loans),

Clause 7.2 (Repayment

of Term A Facility Loans), Clause 7.3 (Repayment of Term B Dollar Facility

Loans), Clause 7.4 (Repayment of Term B Euro Facility Loans),

Clause 7.5 (Repayment

of Term C Euro Facility Loans) or, as the case may be, Clause 7.6 (Repayment of

Term C Dollar Facility Loans) in inverse chronological order.

 

“Prepayment

Premium” means an amount equal to:

 

(a)                                      in respect of a Prepayment Premium Loan (or part of a Prepayment

Premium Loan) which either becomes immediately due and payable pursuant to the

provisions of Clause 9.2 (Change of Control) or Clause 9.3 (Flotation or

Sale) or which a Borrower voluntarily gives notice that it wishes to

prepay, in each case on or before the day 12 Months after the Closing Date, 2

per cent. of the Base Currency Amount of the portion of that Prepayment Premium

Loan which is to be prepaid; or

 

(b)                                     in respect of a Prepayment Premium Loan (or part of a Prepayment

Premium Loan) which either becomes immediately due and payable pursuant to the

provisions of Clause 9.2 (Change of Control) or Clause 9.3 (Flotation or

Sale) or which a Borrower voluntarily gives notice that it wishes to

prepay, in each case after the day 12 Months after the Closing Date but on or

before the Prepayment Premium Date, 1 per cent. of

 

43

 

the Base Currency Amount of the portion of that

Prepayment Premium Loan which is to be prepaid.

 

“Prepayment

Premium Date” means the day 24 Months after the Closing Date.

 

“Prepayment

Premium Loan” means a Term B Euro Facility Loan, a Term B Dollar

Facility Loan, a Term C Euro Facility Loan or a Term C Dollar Facility Loan.

 

“Priority

Letter” means any letter in the agreed form from an addressee of a

Report which is not a party to the Intercreditor Deed and which is addressed to

the Security Trustee on behalf of the Finance Parties and the Mezzanine Finance

Parties relating to the priority of claims in respect of that Report.

 

“Quasi

Security” means any of the transactions described in paragraph (b)

of Clause 23.3 (Negative Pledge).

 

“Quotation

Day” means, in relation to any period for which an interest rate is

to be determined:

 

(a)                                      (if the currency is sterling) the first day of that period;

 

(b)                                     (if the currency is euro) two TARGET Days before the first day of

that period; or

 

(c)                                      (for any other currency) two Business Days before the first day of

that period,

 

unless market

practice differs in the Relevant Interbank Market for a currency, in which case

the Quotation Day for that currency will be determined by the Agent in

accordance with market practice in the Relevant Interbank Market (and if

quotations would normally be given by leading banks in the Relevant Interbank

Market on more than one day, the Quotation Day will be the last of those days) provided

that in the case of any Loan to which a one day interest period

shall apply pursuant to paragraph (j) of Clause 11.4 (Selection of Interest Periods and Terms)

the Quotation Day shall be the first day of that period.

 

“Reference

Banks” means the principal London offices of The Chase Manhattan

Bank, Bayerische Hypo-und Vereinsbank AG and The Royal Bank of Scotland plc or

such other banks as may be appointed by the Agent with the approval of the

Obligor’s Agent (such approval not to be unreasonably withheld or delayed).

 

“Refinancing

Notes” means any High Yield Notes or any Exchange Notes.

 

“Register”

has the meaning ascribed to it in Clause 25.1 (Assignments and Transfers by the

Lenders).

 

“Regulations

T, U and X” means, respectively, Regulations T, U and X of the Board

of Governors of the Federal Reserve System of the United States (or any

successor).

 

“Related

Party” means any of the following:

 

(a)                                      an Affiliate of a specified person;

 

(b)                                     any other person directly or indirectly controlling or controlled by

or under direct or indirect common control with that specified person, where “control”

(and

 

44

 

“controlling”, “controlled by” and “under common

control with”) mean the possession, directly or indirectly, of the

power to direct or cause the direction of the management or policies of a

person, whether by the ownership of shares, by agreement or otherwise;

 

(c)                                      a person who beneficially owns 5 per cent. or more of the issued

share capital of a specified person.

 

“Relevant Ancillary Facility” means, in

connection with a provision relating to a Revolving Facility, the Ancillary

Facility which is proposed to be, is or was (as the case may be) made available

in place of some or all of a Lender’s Available Commitment under that Revolving

Facility.

 

“Relevant

Debt Relief Amount” means, at any time, the aggregate of:

 

(a)                                      Debt Relief Amounts at such time attributable to disposals under the

Disposal Plan;

 

(b)                                     Debt Relief Amounts at such time attributable to disposals falling

under paragraph (i) of the definition of Permitted Disposal;

 

and a Debt

Relief Amount will only be attributable to disposals referred to in paragraphs

(a) or (b) above if in relation to the relevant disposal the Compliance

Certificate accompanying the financial statements for the period in which such

disposals were made is delivered pursuant to Clause 21.2 (Compliance Certificates)

providing:

 

(i)                        details as to

the asset disposed of; and

 

(ii)                     confirming that

it is a disposal under the Disposal Plan or falling within paragraph (i) of the

definition of Permitted Disposals (as the case may be); and

 

(iii)                  confirming the Debt

Relief Amount relating to that disposal together with reasonable details as to

how this has been calculated.

 

“Relevant

GAAP” means:

 

(a)                                      with respect to Newco 2 on a consolidated basis and MGG, IAS or

(subject to agreement being reached pursuant to the provisions of paragraph (d)

of Clause 21.4 (Requirements as to financial statements)), US GAAP; and

 

(b)                                     with respect to any other member of the Newco 2 Group (either

alone or including its Subsidiaries), the generally accepted accounting

principles and practices of its jurisdiction of incorporation.

 

“Relevant

Interbank Market” means in relation to euro, the European interbank

market, and, in relation to any other currency, the London interbank market.

 

“Relevant

Jurisdiction” means, in respect of any person, the jurisdiction of

the country in which such person is incorporated or, if it is not incorporated,

its seat or principal place of business.

 

“Relevant Revolving Facility” means in

connection with a provision relating to an Ancillary Facility, the Revolving

Facility in respect of which some or all of a Lender’s Available

 

45

 

Commitment is

proposed to be, is or was (as the case may be) replaced by that Ancillary

Facility.

 

“Reliance

Letter” means any letter in the agreed form from a provider of a

Report and which is addressed to the Security Trustee (on behalf of the Finance

Parties and the Mezzanine Finance Parties) or any Arranger on behalf of the

Finance Parties and any Mezzanine Arranger on behalf of the Mezzanine Finance

Parties or the relevant Finance Parties and the relevant Mezzanine Finance

Parties and pursuant to which the provider of the Report agrees that the

relevant Finance Parties and the relevant Mezzanine Finance Parties are

entitled to rely on such Report subject to and on the terms set out therein.

 

“Repayment

Instalment” means a Term Disposal Facility Repayment Instalment, a

Term A Facility Repayment Instalment, a Term B Euro Facility Repayment

Instalment, a Term B Dollar Facility Repayment Instalment, a Term C Euro

Facility Repayment Instalment or a Term C Dollar Facility Repayment Instalment.

 

“Repeating

Representations” means each of the representations set out in

Clauses 20.4 (Status) to 20.11 (No default) (inclusive), paragraph (d) of

Clause 20.12 (No misleading information), Clause 20.13 (Financial

statements), Clause 20.14 (Financial Year End), Clauses 20.15 (Pari passu

ranking) to 20.23 (Good title to assets) (inclusive) and

Clauses 20.27 (Group Structure) to Clause 20.36 (Investment companies) (inclusive).

 

“Reports”

means:

 

(a)                                      the Legal Reports;

 

(b)                                     the long form accountants’ report on the MGG Group, in the agreed

form, prepared by KPMG Deutsche Treuhand-Gesellschaft AG which includes the

following sections:

 

(i)                        the Group

Financials Report;

 

(ii)                     the Country

Reports;

 

(iii)                  the Pensions

Reports;

 

(iv)                 the IT Report;

 

(v)                    the Tax Report;

 

(vi)                 the Cost Analysis;

 

(vii)              the Net Debt Report;

 

(viii)           the 2000 Outturn Report to

be provided pursuant to (and as defined in) paragraph (b) of Clause 23.37 (Conditions

Subsequent); and

 

(ix)                   the Projections

Report to be provided pursuant to (and as defined in) paragraph (b) of Clause

23.37 (Conditions

Subsequent);

 

(c)                                      the market report on the MGG Group, in the agreed form, prepared by

CryoGas Consulting Limited;

 

46

 

(d)                                     the environmental report on the MGG Group, in the agreed form,

prepared by Dames & Moore GmbH & Co. KG;

 

(e)                                      the insurance report on the MGG Group, in the agreed form, dated

September 2000 prepared by Marsh GmbH;

 

(f)                                        the Consultants Report; and

 

(g)                                     the KPMG Business Plan Audit;

 

“Reservations”

means any reservations as to matters of law which are referred to in any legal

opinion delivered to the Agent pursuant to, in respect of the Company and Newco

2, Clause 4 (Conditions of Utilisation) or, in respect of any Additional

Obligor, Clause 26 (Changes to the Obligors).

 

“Resignation

Letter” means a letter substantially in the form set out in Schedule

7 (Form

of Resignation Letter).

 

“Restructuring

Expenses” means costs and expenses relating to the Restructuring

Programme which do not exceed in aggregate EUR100,000,000 or its equivalent in

other currencies.

 

“Restructuring

Programme” means the restructuring programme intended to be

implemented by the MGG Group after the Closing Date as set out in Schedule 9 (Restructuring

Programme).

 

“Revolving

Facility” means the Revolving Facility I or the Revolving Facility

II.

 

“Revolving

Facility Loan” means a Revolving Facility I Loan or a Revolving

Facility II Loan.

 

“Revolving

Facility

I” means the revolving loan, letter of credit and bank guarantee

facility made available under this Agreement as described in paragraph (g) of

Clause 2.1 (The

Facilities).

 

“Revolving

Facility

I Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in the Base Currency

set opposite its name under the heading “Revolving Facility I Commitment” in

Part II of Schedule 1 (The Closing Parties) and the amount of any

other Revolving Facility I Commitment transferred to it under this Agreement;

and

 

(b)                                     in relation to any other Lender, the amount in the Base Currency of

any Revolving Facility I Commitment transferred to it under this Agreement,

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Revolving

Facility

I Loan” means a loan made or to be made under the Revolving Facility

I or the principal amount outstanding for the time being of that loan.

 

“Revolving I

Outstandings”

means at any time, the aggregate of the Base Currency Amounts of the

outstanding Revolving Facility I Loans and the amount of the maximum actual and

contingent liabilities of the Lenders in respect of each outstanding Letter of

Credit and Bank Guarantee issued under Revolving Facility I.

 

47

 

“Revolving

Facility

II” means the revolving loan, letter of credit and bank guarantee

facility made available under this Agreement as described in paragraph (h) of

Clause 2.1 (The

Facilities).

 

“Revolving

Facility

II Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in the Base Currency

set opposite its name under the heading “Revolving Facility II Commitment” in

Part II of Schedule 1 (The Closing Parties) and the amount of any

other Revolving Facility II Commitment transferred to it under this Agreement;

and

 

(b)                                     in relation to any other Lender, the amount in the Base Currency of

any Revolving Facility II Commitment transferred to it under this Agreement,

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Revolving

Facility

II Loan” means a loan made or to be made under the Revolving

Facility II or the principal amount outstanding for the time being of that

loan.

 

“Revolving II

Outstandings”

means at any time, the aggregate of the Base Currency Amounts of the

outstanding Revolving Facility II Loans and the amount of the maximum actual

and contingent liabilities of the Lenders in respect of each outstanding Letter

of Credit and Bank Guarantee issued under Revolving Facility II.

 

“Rollover

Loan” means one or more Revolving Facility Loans made under the same

Revolving Facility:

 

(a)                                      made or to be made on the same day that (i) a maturing Revolving

Facility Loan under that same Revolving Facility is due to be repaid or (ii) a

demand in respect of either a Letter of Credit or a Bank Guarantee under that

same Revolving Facility is due to be met;

 

(b)                                     the aggregate amount of which is equal to or less than the maturing

Revolving Facility Loan or, as the case may be, Letter of Credit or Bank Guarantee

due to be met;

 

(c)                                      in the same currency as the maturing Revolving Facility Loan (unless

it arose as a result of the operation of Clause 6.2 (Unavailability of a currency)),

Letter of Credit or Bank Guarantee; and

 

(d)                                     made or to be made for the purpose of:

 

(i)                        refinancing a

maturing Revolving Facility Loan under that same Revolving Facility; or

 

(ii)                     satisfying any

demand made by the Agent under Clause 8.1 (Demands under Letters of Credit and Bank Guarantees)

pursuant to a drawing under a Letter of Credit or claim under a Bank Guarantee

issued under that same Revolving Facility.

 

48

 

“Sale”

means a sale or disposal (whether in a single transaction or a series of

related transactions) of all or substantially all of the shares and/or assets

of the Group provided that the disposal of 662/3% of the shares

in Newco 2 to Hoechst Newco 3 as a result of, and on the terms of, the

transactions expressly contemplated in the Business Combination Agreement shall

be deemed not to be a Sale.

 

“Sale and Leaseback Transaction” means the

sale and leaseback transaction entered into by MGG, Messer Griesheim Zweite

Vermögensverwaltungs GmbH and Messer Grisheim Erste Vermögensverwaltungs GmbH

pursuant to the following documents which were delivered to the Agent on or

about 23 December 2002:

 

(a)                                      sale and purchase agreement dated 20 December 2002 between MGG and

Messer Griesheim Zweite Vermögensverwaltungs GmbH under which MGG transfers its

residual rights in certain assets to  Messer

Griesheim Zweite Vermögensverwaltungs GmbH;

 

(b)                                     lease agreement dated 20 December 2002 between MGG and Messer

Griesheim Zweite Vermögensverwaltungs GmbH under which Messer Griesheim Zweite

Vermögensverwaltungs GmbH grants MGG the right to operate such assets;

 

(c)                                      sale and purchase agreement dated 20 December 2002 between MGG and

Messer Griesheim Erste Vermögensverwaltungs GmbH under which MGG transfers its

rights relating to certain trademarks to Messer Griesheim Erste

Vermögensverwaltungs GmbH; and

 

(d)                                     licence agreement dated 20 December 2002 between  MGG and Messer Griesheim Erste

Vermögensverwaltungs GmbH under which Messer Griesheim Erste

Vermögensverwaltungs GmbH grants a licence to MGG to use such trademarks.”

 

“Screen Rate”

means:

 

(a)                                      in relation to LIBOR, the British Bankers’ Association Interest

Settlement Rate for the relevant currency and period; and

 

(b)                                     in relation to EURIBOR, the percentage rate per annum determined by

the Banking Federation of the European Union for the relevant period,

 

displayed on

the appropriate page of the Telerate screen. If the agreed page is replaced or

service ceases to be available, the Agent may specify another page or service

displaying the appropriate rate after consultation with the Obligor’s Agent and

the Lenders.

 

“Security”

means a mortgage, charge, pledge, lien or other security interest securing any

obligation of any person or any other agreement or arrangement having a similar

effect.

 

“Security

Documents” means:

 

(a)                                      each security document referred to in paragraph 5 of Part I of

Schedule 2 (Conditions Precedent); and

 

(b)                                     any other document entered into by any member of the Group creating

or evidencing Security for all or any part of the obligations of the Obligors

or any of them under any

 

49

 

of the Finance Documents or the Mezzanine Finance

Documents or the Direct Mezzanine Refinancing Facility.

 

“Security

Party” has the meaning given to it in Clause 23.30 (Guarantor

Group and Security Coverage).

 

“Selection

Notice” means a notice substantially in the form set out in Part II

of Schedule 3 (Requests) given in accordance with Clause 11 (Interest

Periods and Terms) or Clause 6.1 (Selection of currency) in

relation to a Term Facility.

 

“Shareholders’

Agreement” means the agreement dated 31 December 2000 between the

Initial Sponsors and MIG (as amended by an amendment agreement made on or prior

to the Closing Date in the agreed form), setting out the terms of the Initial

Sponsors’ and MIG’s rights and obligations in respect of their shareholdings in

the Company.

 

“Singapore

SPV” means DIOGENES Neunzehnte Vermogensverwaltungs GmbH, a newly

incorporated limited liability company in which pursuant to the terms of the

Singapore Separation Agreement MGG will be a shareholder and which will hold

the interest in Messer Singapore and Syngas currently held by MGG.

 

“Singapore

Separation Agreement” means the formation, funding and shareholders

agreement in the agreed form made on or about the date hereof between, amongst

others, MGG, the Vendor, MIG, Singapore SPV, the Company and Aventis in

relation to (amongst other things) the sale by MGG to Singapore SPV of all of

MGG’s shares in Syngas and Messer Singapore.

 

“Syngas”

means Singapore Syngas Pte. Limited, a company incorporated in Singapore which

at the date hereof is an MGG Joint Venture.

 

“Specified

Time” means a time determined in accordance with Schedule 10 (Timetables).

 

“Subordination

Agreement” means:

 

(a)                                      any High Yield Subordination Agreement;

 

(b)                                     any Newco 2 Loan Subordination Agreement;

 

(c)                                      the China Subordination Agreement;

 

(d)                                     any subordination agreement subordinating Financial Indebtedness

referred to in paragraph (d) of the definition of Permitted Indebtedness; and

 

(e)                                      any Exchange Notes Subordination Agreement.

 

“Subsidiary”

means, in relation to any company or corporation, a company or corporation:

 

(a)                                      which is controlled, directly or indirectly, by the first mentioned

company or corporation;

 

(b)                                     more than half the issued share capital of which is beneficially

owned, directly or indirectly by the first mentioned company or corporation; or

 

50

 

(c)                                      which is a Subsidiary of another Subsidiary of the first mentioned

company or corporation,

 

and for this

purpose, a company or corporation shall be treated as being controlled by

another if that other company or corporation is able to direct its management

and policies and/or to control the composition of its board of directors or

equivalent body.

 

“Syndication

Dates” means:

 

(a)                                      the date notified by the Bookrunners to the Obligor’s Agent at least

five Business Days prior to such date as the day on which primary syndication

of the Facilities is to be completed; and

 

(b)                                     the date notified by the Bookrunners to the Obligor’s Agent at least

five Business Days prior to such date as the day on which general syndication

of the Facilities is to be completed,

 

each such date

being one on which one or more financial institutions become Parties to this

Agreement as Lenders as part of such syndication provided that each

Syndication Date shall not be more than 6 Months after the Closing Date.

 

“Syndication

Letter” means the letter from the Arrangers to MGG, Allianz Capital

Partners GmbH and Goldman Sachs Capital Partners 2000, L.P. dated on or about

the date hereof headed “Senior Syndication Letter”.

 

“TARGET”

means Trans-European Automated Real-time Gross Settlement Express Transfer

payment system.

 

“TARGET Day”

means any day on which TARGET is open for the settlement of payments in euro.

 

“Tax”

means any tax, levy, impost, duty or other charge or withholding of a similar

nature (including any penalty or interest payable in connection with any

failure to pay or any delay in paying any of the same).

 

“Taxes Act”

means the Income and Corporation Taxes Act 1988.

 

“Term”

means, in relation to any Letter of Credit or Bank Guarantee, the period from

its Utilisation Date until its Expiry Date.

 

“Term

Disposal  Facility” means the term loan facility made

available under this Agreement as described in paragraph (a) of Clause 2.1 (The

Facilities).

 

“Term

Disposal  Facility Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in the Base Currency

set opposite its name under the heading “Term Disposal Facility Commitment” in

Part II of Schedule 1 (The Closing Parties) and the amount of any

other Term Disposal Facility Commitment transferred to it under this Agreement;

and

 

(b)                                     in relation to any other Lender, the amount in the Base Currency of

any Term Disposal Facility Commitment transferred to it under this Agreement,

 

51

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Term

Disposal  Facility Loan” means a loan made or to be

made under the Term Disposal Facility or the principal amount outstanding for

the time being of that loan.

 

“Term

Disposal Facility Repayment Date” means the date falling 24 Months

after the Closing Date.

 

“Term

Facilities” means the Term Disposal Facility and the Term Refinancing

Facilities.

 

“Term

Facility Loan” means a Term Disposal Facility Loan, a Term A

Facility Loan, a Term B Euro Facility Loan, a Term B Dollar Facility Loan, a

Term C Euro Facility Loan or a Term C Dollar Facility Loan.

 

“Term

Refinancing Facilities” means the Term A Facility, the Term B Euro

Facility, the Term B Dollar Facility, the Term C Euro Facility and the Term C

Dollar Facility.

 

“Term

Refinancing Facility Loan” means any Term Facility Loan other than a

Term Disposal Facility Loan.

 

“Term A Facility”

means the term loan facility made available under this Agreement as described

in paragraph (b) of Clause 2.1 (The Facilities).

 

“Term A

Facility Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in the Base Currency

set opposite its name under the heading “Term A Facility Commitment” in Part II

of Schedule 1 (The Closing Parties) and the amount of any other Term A

Facility Commitment transferred to it under this Agreement; and

 

(b)                                     in relation to any other Lender, the amount in the Base Currency of

any Term A Facility Commitment transferred to it under this Agreement,

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Term A

Facility Loan” means a loan made or to be made under the Term A

Facility or the principal amount outstanding for the time being of that loan.

 

“Term A

Facility Repayment Date” means each of the dates specified in the

table set out in paragraph (a) of Clause 7.2 (Repayment of Term A Facility

Loans)

as a Repayment Date, but if any such date is not a Business Day, then that

Repayment Date shall be deemed to be the immediately succeeding Business Day

(if that succeeding Business Day falls in the same calendar month) or (if it

does not) the immediately preceding Business Day.

 

“Term A

Facility Repayment Instalment” means each instalment for repayment

of the Term A Facility Loans referred to in Clause 7.2 (Repayment of Term A Facility Loans).

 

“Term B

Dollar Facility” means the term loan facility made available under

this Agreement as described in paragraph (c) of Clause 2.1 (The

Facilities).

 

52

 

“Term B

Dollar Facility Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in dollars set

opposite its name under the heading “Term B Dollar Facility Commitment” in Part

II of Schedule 1 (The Closing Parties) and the amount of any other Term B

Dollar Facility Commitment transferred to it under this Agreement; and

 

(b)                                     in relation to any other Lender, the amount in dollars of any Term B

Dollar Facility Commitment transferred to it under this Agreement,

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Term B

Dollar Facility Loan” means a loan made or to be made under the Term

B Dollar Facility or the principal amount outstanding for the time being of

that loan.

 

“Term B

Dollar Facility Repayment Instalment” means each instalment for

repayment of the Term B Dollar Facility Loans referred to in Clause 7.3 (Repayment of

Term B Dollar Facility Loans).

 

“Term B Euro

Facility” means the term loan facility made available under this

Agreement as described in paragraph (d) of Clause 2.1 (The Facilities).

 

“Term B Euro

Facility Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in euros set opposite

its name under the heading “Term B Euro Facility Commitment” in Part II of

Schedule 1 (The

Closing Parties) and the amount of any other Term B Euro Facility

Commitment transferred to it under this Agreement; and

 

(b)                                     in relation to any other Lender, the amount in euros of any Term B

Euro Facility Commitment transferred to it under this Agreement,

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Term B Euro

Facility Loan” means a loan made or to be made under the Term B Euro

Facility or the principal amount outstanding for the time being of that loan.

 

“Term B Euro

Facility Repayment Instalment” means each instalment for repayment

of the Term B Euro Facility Loans referred to in Clause 7.4 (Repayment of

Term B Euro Facility Loans).

 

“Term B

Facilities” means the Term B Dollar Facility and the Term B Euro

Facility.

 

“Term B

Facility Repayment Date” means each of the days which are 90 and 96

Months after the Base Date.

 

“Term C

Dollar Facility” means the dollar term loan facility made available

under this Agreement as described in paragraph (f) of Clause 2.1 (The

Facilities).

 

53

 

“Term C

Dollar Facility Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in dollars set

opposite its name under the heading “Term C Dollar Facility Commitment” in Part

II of Schedule 1 (The Closing Parties) and the amount of any other Term C

Dollar Facility Commitment transferred to it under this Agreement; and

 

(b)                                     in relation to any other Lender, the amount in dollars of any Term C

Dollar Facility Commitment transferred to it under this Agreement,

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Term C

Dollar Facility Loan” means a loan made or to be made under the Term

C Dollar Facility or the principal amount outstanding for the time being of

that loan.

 

“Term C

Dollar Facility Repayment Instalment” means each instalment for

repayment of the Term C Dollar Facility Loans referred to in Clause 7.6 (Repayment of

Term C Dollar Facility Loans).

 

“Term C Euro

Facility” means the term loan facility made available under this

Agreement as described in paragraph (e) of Clause 2.1 (The Facilities).

 

“Term C Euro

Facility Commitment” means:

 

(a)                                      in relation to an Original Lender, the amount in euros set opposite

its name under the heading “Term C Euro Facility Commitment” in Part II of

Schedule 1 (The

Closing Parties) and the amount of any other Term C Euro Facility

Commitment transferred to it under this Agreement; and

 

(b)                                     in relation to any other Lender, the amount in euros of any Term C

Euro Facility Commitment transferred to it under this Agreement,

 

to the extent

not cancelled, reduced or transferred by it under this Agreement.

 

“Term C Euro

Facility Loan” means a loan made or to be made under the Term C Euro

Facility or the principal amount outstanding for the time being of that loan.

 

“Term C Euro

Facility Repayment Instalment” means each instalment for repayment

of the Term C Euro Facility Loans referred to in Clause 7.5 (Repayment of

Term C Euro Facility Loans).

 

“Term C

Facilities” means the Term C Euro Facility and the Term C Dollar

Facility.

 

“Term C

Facility Repayment Date” means each of the days which are 102  and 108 Months after the Base Date.

 

“Termination

Date” means:

 

(a)                                      in relation to the Term Disposal Facility, the day which is 24

Months after the Closing Date;

 

(b)                                     in relation to the Term A Facility, the day which is 84 Months after

the Base Date;

 

54

 

(c)                                      in relation to the Term B Dollar Facility, the day which is 96

Months after the Base Date;

 

(d)                                     in relation to the Term C Euro Facility and the Term C Dollar

Facility, the Final Maturity Date;

 

(e)                                      in relation to each Revolving Facility, the day which is 84 Months

after the Base Date.

 

“Total

Commitments” means the aggregate of the Total Term Disposal Facility

Commitments, the Total Term A Facility Commitments, the Total Term B Euro

Facility Commitments, the Total Term B Dollar Facility Commitments, the Total

Term C Euro Facility Commitments, the Total Term C Dollar Facility Commitments,

the Total Revolving Facility I Commitments and the Total Revolving Facility II

Commitments, being the aggregate of EUR1,050,000,000 and $540,000,000 at the

date of this Agreement.

 

“Total Debt

Relief Amount” means, at any time, the aggregate of all Debt Relief

Amounts at such time in relation to all Permitted Disposals made after the date

of this Agreement up to such time.

 

“Total

Non-Indemnified Unconsolidated Debt” means, at any time, the

aggregate amount (without double counting) of Unconsolidated Debt at that time

which is not Indemnified Unconsolidated Debt at such time.

 

“Total

Revolving Facility I Commitments” means the aggregate of the

Revolving Facility I Commitments, being EUR260,000,000 at the date of this

Agreement.

 

“Total

Revolving Facility II Commitments” means the aggregate of the

Revolving Facility II Commitments, being EUR50,000,000 at the date of this

Agreement.

 

“Total Term

Disposal Facility Commitments” means the aggregate of the Term

Disposal Facility Commitments, being $225,000,000 at the date of this

Agreement.

 

“Total Term A

Facility Commitments” means the aggregate of the Term A Facility

Commitments, being EUR400,000,000 at the date of this Agreement.

 

“Total Term B

Dollar Facility Commitments” means the aggregate of the Term B

Dollar Facility Commitments, being $153,000,000 at the date of this Agreement.

 

“Total Term B

Euro Facility Commitments” means the aggregate of Term B Euro Facility

Commitments, being EUR170,000,000 at the date of this Agreement.

 

“Total Term C

Dollar Facility Commitments” means the aggregate of the Term C

Dollar Facility Commitments, being $162,000,000 at the date of this Agreement.

 

“Total Term C

Euro Facility Commitments” means the aggregate of the Term C Euro

Facility Commitments, being EUR170,000,000 at the date of this Agreement.

 

“Transaction

Documents” means the Acquisition Documents, the Finance Documents,

the Mezzanine Finance Documents, the High Yield Documents any documents

relating to the Direct Mezzanine Refinancing and any Exchange Notes Documents.

 

55

 

“Transaction

Security”

means the security from time to time constituted by or pursuant to the Security

Documents.

 

“Transfer

Certificate” means a certificate substantially in one of the forms

set out in Part I or Part II of Schedule 5 (Form of Transfer Certificates)

or any other form agreed between the Agent and the Obligor’s Agent.

 

“Transfer

Date” means, in relation to a transfer, the later of:

 

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

and

 

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

the transfer is recorded by the Agent in the Register.

 

“Treasury

Borrower” means Messer Finance S.A. and any other entity identified

by the Obligor’s Agent as a Treasury Borrower prior to the first Utilisation

under this Agreement, such company to be a newly incorporated member of the MGG

Group which is incorporated with limited liability in The Netherlands or

Luxembourg and is formed to be a finance company (and not a trading company)

performing (along with MGG or, as the case may be, Debtco) the treasury

function for the MGG Group provided that there shall not be more than

two Treasury Borrowers.

 

“Treasury

Borrower Loan Agreement” means a loan agreement entered into by a

Treasury Borrower as lender with a member of the MGG Group in one of the agreed

forms.

 

“Treasury

Transaction” means any currency or interest purchase, cap or collar

agreement, forward rate agreements, interest rate or currency future or option

contract, foreign exchange or currency purchase or sale agreement, interest

rate swap, currency swap or combined interest rate and currency swap agreement

and any other similar agreement.

 

“Unconsolidated

Debt” means any Financial Indebtedness of any member of the MGG

Group under any guarantee or indemnity given by any member of the MGG Group in

respect of Financial Indebtedness of a person who is not a member of the MGG

Group.

 

“Unconsolidated

Subsidiary” means, in relation to a company or corporation, a

Subsidiary of such company or corporation which is not a Consolidated

Subsidiary.

 

“Unpaid Sum”

means any sum due and payable but unpaid by an Obligor under the Finance

Documents.

 

“US Borrower”

means a Borrower whose jurisdiction of incorporation is a state of the United

States of America or the District of Columbia.

 

“US GAAP”

means generally accepted accounting principles and practices in the United

States of America.

 

“US Group

Member” means any member of the Group whose Relevant Jurisdiction is

the United States of America (or any state thereof) or the District of

Columbia.

 

“US Guarantor”

means a Guarantor whose Relevant Jurisdiction is a state of the United States

of America or the District of Columbia.

 

56

 

“Utilisation”

means a utilisation of a Facility by way of Loan or (in the case of a Revolving

Facility) Letter of Credit or Bank Guarantee.

 

“Utilisation

Date” means the date of a Utilisation, being the date on which the

relevant Loan is to be made or the relevant Letter of Credit or Bank Guarantee

issued.

 

“Utilisation

Request” means a notice substantially in the form set out in Part I

of Schedule 3 (Requests).

 

“VAT”

means value added tax as provided for in the Value Added Tax Act 1994 and any

other tax of a similar nature.

 

“Vendor”

means Hoechst AG.

 

“Vendor MGG

Shares” means the shares representing two thirds of the nominal

value of the issued share capital of MGG, held by the Vendor at the date of

this Agreement.

 

1.2                           Construction

(a)                                      Unless a contrary indication appears a reference in this Agreement

to:

 

(i)                        the “Agent”,

an “Arranger”,

the “Security

Trustee”, any “Hedge Counterparty”, any “Fronting

Bank” or any “Lender” or any other person shall be

construed so as to include it and any subsequent successors and permitted

transferees and assigns in accordance with their respective interests;

 

(ii)                     a document being

in the “agreed

form” is a reference to a document which is either initialled as

such (or agreed in writing as such) on or before the Closing Date for the

purposes of identification by or on behalf of the Obligor’s Agent and the

Arrangers or Agent or is executed on or before the date of this Agreement by

any of the Obligors and the Arrangers or Agent or, if not so executed or

initialled (or so agreed in writing), is in form and substance reasonably

satisfactory to the Agent;

 

(iii)                  “assets”

includes present and future properties, revenues and rights of every

description;

 

(iv)                 the “European

interbank  market” means the interbank market for euro

operating in Participating Member States;

 

(v)                    a “Finance

Document” or any other agreement or instrument is a reference to

that Finance Document or other agreement or instrument as amended or novated;

 

(vi)                 “indebtedness” includes any

obligation (whether incurred as principal or as surety) for the payment or

repayment of money, whether present or future, actual or contingent;

 

(vii)              a Lender’s “participation”,

in relation to a Letter of Credit or Bank Guarantee, shall be construed as a

reference to the rights and obligations of that Lender in relation to that

Letter of Credit or Bank Guarantee as are expressly set out in this Agreement;

 

57

 

(viii)           a “person” includes any person,

firm, company, corporation, government, state or agency of a state or any

association, trust, fund or other entity or partnership (whether or not having

separate legal personality) of two or more of the foregoing;

 

(ix)                   a “regulation”

includes any regulation, rule, official directive, request or guideline

(whether or not having the force of law) of any governmental, intergovernmental

or supranational body, agency, department or regulatory, self-regulatory or

other authority or organisation;

 

(x)                      a “wholly-owned

Subsidiary” of a company or corporation shall be construed as a

reference to any company or corporation more than 85% of the voting and issued

share capital of which is beneficially owned, directly or indirectly, by the

first-mentioned company or corporation;

 

(xi)                   a provision of law

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

 

(xii)                a time of day is a

reference to London time.

 

(b)                                     Section, Clause and Schedule headings are for ease of reference

only.

 

(c)                                      Unless a contrary indication appears, a term used in any other

Finance Document or in any notice given under or in connection with any  Finance Document has the same meaning in

that Finance Document or notice as in this Agreement.

 

(d)                                     A Default (other than an Event of Default) is “continuing” if it has not

been remedied or waived and an Event of Default is “continuing” if it has not

been remedied or waived.

 

(e)                                      A Utilisation is requested by a Borrower if that Borrower requests

such Utilisation itself or the Obligor’s Agent requests such Utilisation

expressly on behalf of that Borrower.

 

1.3                           Currency Symbols and Definitions

“$”

and “dollars”

denote lawful currency of the United States of America, “£” and “sterling” denotes lawful

currency of the United Kingdom, “EUR” and “euro” means the single

currency unit of the Participating Member States, “DM” means the national

currency unit of Germany as at the date of this Agreement and “Swiss Francs”

denote lawful currency of Switzerland.

 

1.4                           Third

party rights

(a)                                      Except as expressly provided in a Finance Document, the terms of a

Finance Document may be enforced only by a party to it and the operation of the

Contracts (Rights of Third Parties) Act 1999 is excluded.

 

(b)                                     Notwithstanding any provision of any Finance Document, the Parties

to a Finance Document do not require the consent of any third party to rescind

or vary any Finance Document at any time.

 

58

 

SECTION 2

 

THE FACILITIES

 

2.                                 THE FACILITIES

 

2.1                           The Facilities

Subject

to the terms of this Agreement, the Lenders make available the Facilities

referred to below to the Borrowers specified below in relation to each such

Facility:

 

(a)                                      (to MGG, Messer Griesheim Industries, Inc., any Treasury Borrower

and, during the Debtco Structure Period, Debtco) a multicurrency term loan

disposal facility in an aggregate amount equal to the Total Term Disposal

Facility Commitments;

 

(b)                                     (to MGG and any Treasury Borrower and, during the Debtco Structure

Period, Debtco) a multicurrency term loan refinancing facility in an aggregate

amount equal to the Total Term A Facility Commitments;

 

(c)                                      (to Messer Griesheim Industries, Inc.) a dollar term loan

refinancing facility in an aggregate amount equal to the Total Term B Dollar

Facility Commitments;

 

(d)                                     (to MGG and any Treasury Borrower and, during the Debtco Structure

Period, Debtco) a euro term refinancing facility in an aggregate amount equal

to the Total Term B Euro Facility Commitments;

 

(e)                                      (to MGG and any Treasury Borrower and, during the Debtco Structure

Period, Debtco) a euro term loan refinancing facility in an aggregate amount

equal to the Total Term C Euro Facility Commitments;

 

(f)                                        (to Messer Griesheim Industries, Inc.) a dollar term loan

refinancing facility in an aggregate amount equal to the Total Term C Dollar

Facility Commitments;

 

(g)                                     (to all of the Borrowers) a multicurrency revolving loan, letter of

credit and guarantee facility in an aggregate amount equal to the Total Revolving

Facility I Commitments;

 

(h)                                     (to all of the Borrowers other than any US Borrower) a multicurrency

revolving loan, letter of credit and guarantee facility in an aggregate amount

equal to the Total Revolving Facility II Commitments; and

 

(i)                                         in addition, if a Lender and the Obligor’s Agent agree and subject

as provided in Clause 2.4 (Ancillary

Facilities) and to the terms in the relevant Ancillary Documents, a

Lender may provide an Ancillary Facility or Ancillary Facilities on a

bi-lateral basis to a Borrower in place of all or part of that Lender’s

Available Commitment in relation to Revolving Facility I or, as the case

may be, Revolving Facility II

 

2.2                           Lenders’ and Fronting Banks’ rights and obligations

(a)                                      The obligations of each Lender and each Fronting Bank under the

Finance Documents are several.  Failure

by a Lender or a Fronting Bank to perform its obligations under the Finance

Documents does not affect the obligations of any other Party under the 

 

59

 

Finance Documents. 

No Finance Party is responsible for the obligations of any other Finance

Party under the Finance Documents.

 

(b)                                     The rights of each Lender and each Fronting Bank under or in

connection with the Finance Documents are separate and independent rights and

any debt arising under the Finance Documents to a Lender or a Fronting Bank

from an Obligor shall be a separate and independent debt.

 

(c)                                      A Finance Party may, except as otherwise stated in the Finance

Documents, separately enforce its rights under the Finance Documents.

 

2.3                           Ancillary Lenders’ rights and obligations

(a)                                      The obligations of each Ancillary Lender under the Finance Documents

are several.  Failure by an Ancillary

Lender to perform its obligations under the Finance Documents does not affect

the obligations of any other Party under the Finance Documents. No Finance

Party is responsible for the obligations of any other Finance Party under the

Finance Documents.

 

(b)                                     The rights of each Ancillary Lender under or in connection with the

Finance Documents are separate and independent rights and any debt arising

under the Finance Documents to an Ancillary Lender from an Obligor shall be a

separate and independent debt.

 

2.4                           Ancillary

Facilities

(a)                                      An Ancillary Facility may be made available to a Borrower by a

Lender which is a Lender under a Revolving Facility by way of bi-lateral

overdraft facilities in accordance with the provisions of this Clause 2.4.  More than one Ancillary Facility may exist

at any time.

 

(b)                                     The Obligor’s Agent may request an Ancillary Facility by delivery to

the Agent of a notice in writing not less than 5 Business Days (or such shorter

period as the Agent may agree) prior to the proposed commencement date for the

Ancillary Facility specifying:

 

(i)                        the proposed

Borrowers which may use that Ancillary Facility;

 

(ii)                     the proposed

commencement date for that Ancillary Facility (which shall be a Business Day

within the Availability Period for the Relevant Revolving Facility);

 

(iii)                  the proposed expiry

date for that Ancillary Facility (which must be a Business Day on or prior to

the Termination Date for the Relevant Revolving Facility);

 

(iv)                 the proposed

Ancillary Lender;

 

(v)                    the maximum amount

of the Ancillary Commitment under that Ancillary Facility;

 

(vi)                 whether that

Ancillary Facility is proposed to be provided in place of a Lender’s Available

Commitment under Revolving Facility I or Revolving Facility II (and

for the avoidance of doubt any one Ancillary Facility may only be provided in

 

60

 

place of the Available Commitment under one Revolving

Facility and not both Revolving Facilities); and

 

(vii)              the proposed currency or

currencies of that Ancillary Facility.

 

(c)                                      The Obligor’s Agent shall promptly provide the Agent with such other

details as to the nature, amount and operation of the proposed Ancillary

Facility as the Agent may reasonably require.

 

(d)                                     The Agent shall promptly notify each Lender upon receipt of a notice

delivered pursuant to paragraph 2.4(b) above.

 

(e)                                      The proposed Ancillary Lender shall notify the Agent in writing

whether it agrees to make that Ancillary Facility available and whether such

Ancillary Facility is to be provided from its Available Commitment under

Revolving Facility I or Revolving Facility II (and, for the avoidance

of doubt it may not be provided from a combination of its Available Commitment

under both Revolving Facilities).  No

Lender shall be obliged to make an Ancillary Facility available.

 

(f)                                        The Ancillary Lender will promptly upon it being committed to

provide an Ancillary Facility notify the Obligor’s Agent and the Agent of the

amount of its Ancillary Commitment in relation to that Ancillary Facility.  The Ancillary Commitment shall be the

maximum amount of Ancillary Outstandings which would be outstanding under that

Ancillary Facility assuming that the facility is available and fully

utilised.  In the event that an

Ancillary Lender fails to deliver this notice, the Agent may estimate the

amount of the Ancillary Commitment until such notice is delivered.

 

(g)                                     If the proposed Ancillary Lender agrees to make available a

requested Ancillary Facility, that Ancillary Facility shall be made available

by that Ancillary Lender on the applicable commencement date if:

 

(i)                        the conditions

set out in this Agreement have been met;

 

(ii)                     that Ancillary

Facility complies with the requirements of this Clause 2.4 (Ancillary

Facilities);

 

(iii)                  the Agent has

notified the Obligor’s Agent and the proposed Ancillary Lender in writing that

it consents to that Ancillary Facility (such consent not to be unreasonably

withheld or delayed);

 

(iv)                 the Available

Commitment of that Ancillary Lender in relation to the Relevant Revolving

Facility is, immediately prior to commencement of that Ancillary Facility, at

least equal to the Ancillary Commitment for that Ancillary Facility;

 

(v)                    the proposed

Ancillary Commitment for that Ancillary Facility when aggregated with the

Ancillary Commitment of each other outstanding Ancillary Facility, does not

exceed EUR50,000,000 (or its equivalent from time to time in an Optional

Currency) (or such higher amount as the Majority Lenders agree); and

 

61

 

(vi)                 the Borrower

concerned has completed any Ancillary Documents required by that Ancillary

Lender to be completed before the commencement date of that Ancillary Facility.

 

(h)                                     Each Borrower of an Ancillary Facility shall complete such mandates

or other documentation as the Ancillary Lender of that Ancillary Facility may

reasonably require.

 

(i)                                         Subject to Clauses 9.1 (Illegality) and 9.10 (Voluntary cancellation) the

terms governing the operation of any Ancillary Facility (including the terms of

any counter-indemnity required in connection with that facility) shall be those

determined by agreement between the Ancillary Lender and the Borrower

concerned, provided that such terms are based upon normal commercial

terms, save as may be varied by this Agreement.

 

(j)                                         In the case of inconsistency between any term of an Ancillary Facility

and of this Agreement, the terms of this Agreement shall prevail.

 

(k)                                      Any amendment to an Ancillary Facility or any proposed increase or

reduction in the Ancillary Commitment relating to an Ancillary Facility shall

be subject to the terms of this Clause 2.4 (Ancillary Facilities).

 

(l)                                         The rate and time of payment of interest, commission, fees and any

other remuneration in respect of each Ancillary Facility shall be determined by

agreement between the Ancillary Lender and the Borrower concerned based upon

normal market rates and terms.

 

(m)                                   A reference in this Agreement to a Fee Letter shall include the

provisions of any document setting out the agreement between the Ancillary

Lender and the Borrower concerned in respect of interest, commission, fees and

other remuneration.

 

(n)                                     Accrued interest, commission, fees and other remuneration in respect

of an Ancillary Facility shall also be payable to the Ancillary Lender on

cancellation of the Ancillary Commitment in respect of that Ancillary Facility

at the time the cancellation is effective if the Ancillary Commitment is

cancelled in full.

 

(o)                                     The Borrower concerned shall pay to the relevant Ancillary Lender a

fee computed at the rate applicable to the Relevant Revolving Facility under

paragraph (c) of Clause 13.1 (Commitment fee) on the unused portion of

any Ancillary Facility (being the Ancillary Commitment applicable to that

Ancillary Facility minus the Ancillary Outstandings under that Ancillary

Facility) for the period for which that Ancillary Facility is made available by

that Ancillary Lender.

 

(p)                                     The accrued commitment fee in respect of an Ancillary Facility is

payable on the last day of each successive period of three Months which ends

during the period for which that Ancillary Facility is available, on the last

day of the availability period for that Ancillary Facility and on the cancelled

amount of the Ancillary Lender’s Ancillary Commitment for that Ancillary

Facility at the time the cancellation is effective.

 

62

 

(q)                                     On the last day of the availability period in relation to an

Ancillary Facility, any commitment in relation thereto shall be automatically

reduced to zero, and all Ancillary Outstandings and other liabilities of any

Borrower thereunder shall be repaid.

 

(r)                                        The Obligor’s Agent may at any time prior to the occurrence of an

Event of Default, request the reduction or cancellation of an Ancillary

Facility by delivery of a notice in writing to the Agent and the Ancillary

Lender providing that Ancillary Facility, specifying the Ancillary Facility and

the proposed cancellation date.  That

notice must be delivered not less than ten Business Days (or such shorter

period as the Ancillary Lender and Agent may agree) before the proposed

reduction or cancellation date. With effect from the proposed reduction or

cancellation date, the relevant Ancillary Commitment shall be reduced by the

amount of such reduction or cancellation, the Ancillary Facility shall be

reduced or cancelled (as applicable) by such amount and (to the extent

necessary) the Ancillary Outstandings under that Ancillary Facility shall be

repaid.  An Ancillary Facility may not

be reduced or cancelled in any other way prior to the occurrence of an Event of

Default without the consent of the relevant Ancillary Lender, the Agent and the

Obligor’s Agent.

 

(s)                                      On the date of any reduction in the available Ancillary Facility

pursuant to paragraphs (q) or (r) above or otherwise, the Available Commitment

of the applicable Ancillary Lender under the Relevant Revolving Facility shall

be increased by an amount equal to the amount by which such Ancillary

Commitment is cancelled or reduced, subject to any other cancellation or

repayment obligation effected pursuant to the terms and conditions of the

Finance Documents.  In relation to the

first Loans made under the Relevant Revolving Facility following such increase

of such Available Commitment of a Lender, that Lender shall participate in

those Loans such that (to the extent possible) following the making of those

Loans its pro rata share in the Outstandings under the Relevant Revolving

Facility is equal to its pro rata share of the total Available Commitments of

all the Lenders in the Relevant Revolving Facility.

 

(t)                                        The Borrowers concerned shall ensure that the Ancillary Commitments

of each Ancillary Lender shall terminate and all Ancillary Outstandings are

repaid in full no later than the Termination Date for the Relevant Revolving

Facility.

 

(u)                                     Each Borrower and each Ancillary Lender agree with and for the

benefit of each Lender that the Ancillary Outstandings under any Ancillary

Facility provided by that Ancillary Lender shall not exceed the Ancillary

Commitment applicable to that Ancillary Facility and that only Borrowers may

use an Ancillary Facility and that only Borrowers may use an Ancillary

Facility.

 

(v)                                     Upon the occurrence of an Event of Default which is continuing, the

following terms and conditions in this paragraph (v) shall apply.

 

(a)                     Subject to the other provisions of this paragraph (v),

 

(i)                     an Ancillary

Lender shall not have the right to cancel commitments or demand a payment of,

or in relation to (including, without limitation, the

 

63

 

provision

of cash cover) any Ancillary Outstandings or other liabilities of a Borrower

under an Ancillary Facility; and

 

(ii)                  no Borrower shall

have the right to utilise an Ancillary Facility, and no Ancillary Lender shall

make available further Ancillary Outstandings thereunder.

 

(b)                    Upon the delivery of a notice by the Agent in accordance with Clause

24.15 (Acceleration):

 

(i)                     cancelling the

Total Commitments, the Agent may (and shall if so directed by the Majority

Lenders) cancel any unutilised commitment under any Ancillary Facility; and/or

 

(ii)                  declaring all or

part of the Loans immediately payable on demand, the Agent may (and shall if so

directed by the Majority Lenders) declare all or part of the Ancillary

Outstandings immediately payable on demand; and/or

 

(iii)               declaring all or part

of the Loans immediately due and payable, the Agent may (and shall if so

directed by the Majority Lenders) declare all or part of the Ancillary

Outstandings immediately due and payable.

 

(c)                     If following the occurrence of an Event of Default, a waiver is

given or an amendment is made (whether or not subject to certain specified

conditions) of any of the Finance Documents, to the extent that such Event of

Default arose under or in connection with an Ancillary Facility, such Ancillary

Lender must give or make (and to the extent possible shall be deemed to have

given or made), at the same time, a corresponding waiver or amendment to the

Ancillary Documents, and the parties to the relevant Ancillary Documents shall

do all such things and execute or procure the execution of all such documents

as the Agent may require to give effect to the terms of this paragraph (v).

 

(d)                    Any payments received by an Ancillary Lender in relation to an

Ancillary Facility shall be applied in accordance with Clause 31.5 (Partial

Payments).

 

(w)                                   Upon the delivery of a notice by the Agent in accordance with Clause

24.15 (Acceleration), notwithstanding the occurrence of

an Event of Default or that any other applicable conditions precedent are not

satisfied and subject to the provisions of this paragraph (w), the Lenders and

Ancillary Lenders participating in the Relevant Revolving Facility must, among

themselves, purchase and sell their participations (by way of novation,

sub-participation, credit-linked instrument or otherwise) in relation to (a) each

Utilisation under the Relevant Revolving Facility and (b) the Ancillary

Outstandings in relation to the Relevant Ancillary Facilities (if any)

(together, the “Transfers”) such that following the Transfers, each Lender

shall participate in the aggregate of Utilisations under the Relevant Revolving

Facility and Ancillary Outstandings under the Relevant Ancillary Facilities pro rata to their Commitments in the

Relevant Revolving Facility as were outstanding on the date on which the Agent

delivered the notice in accordance with Clause 24.15 (Acceleration).  For the

 

64

 

purposes of the Transfers, Utilisations and Ancillary

Outstandings shall be valued at par.

 

(x)                                       The Transfers shall be effected promptly with economic effect from

the date of delivery of a notice by the Agent in accordance with Clause 24.15 (Acceleration), so that to the fullest extent

reasonably possible following the Transfers, each Lender shall participate in

each of the Utilisations under each Relevant Revolving Facility and each of the

Ancillary Outstandings under the Relevant Ancillary Facilities pro rata

to their Commitments in the Relevant Revolving Facility.

 

(y)                                     No consent from any Obligor or Borrower under an Ancillary Facility

is required in connection with the Transfers.

 

(z)                                       The Obligor’s Agent shall indemnify each Finance Party against any

cost, loss or liability incurred by that Finance Party in connection with the

Transfers, including, without limitation, legal fees and break costs for any

Finance Party.

 

(aa)                                Each Borrower and each Ancillary Lender will, promptly upon request

by the Agent, supply the Agent with any information relating to the operation

of each Ancillary Facility (including, without limitation, the Ancillary Outstandings)

as the Agent may from time to time reasonably request.  Each Borrower consents to all such

information being released to the Agent and the other Finance Parties.

 

(bb)                              Each Borrower under an Ancillary Facility hereby agrees to pay all

amounts owing by it under any Ancillary Document to the relevant Ancillary

Lender in accordance with the provisions of that Ancillary Document (as

adjusted by the terms of Clause 2.4 (Ancillary

Facilities)) and all obligations and liabilities of a Borrower under

the Ancillary Documents shall be treated for all purposes as obligations and

liabilities owed under this Agreement.

 

(cc)                                Each Ancillary Lender agrees to the extent it makes available

Ancillary Facilities in place of its Available Commitment under both Revolving

Facilities that it shall keep such Ancillary Facilities distinct and separate

from each other.

 

3.                                 PURPOSE

 

3.1                           Purpose

(a)                                      Each Borrower shall apply all amounts borrowed by it under the Term

Facilities either towards the refinancing of Existing Indebtedness and the

payment of the fees payable pursuant to the terms of any Fee Letters and other

expenses payable in connection with the Finance Documents and the Mezzanine

Finance Documents or towards the making of Intra-Group Loans the proceeds of

which are to be applied to refinance Existing Indebtedness or (during the

period when the Term Facilities have not been drawn or cancelled in full)

towards the general working capital requirements of the MGG Group provided that

the aggregate of the Base Currency Amounts of all Loans under the Term

Facilities used for such general working capital purposes shall not exceed EUR

100,000,000.  Amounts borrowed by Messer

Griesheim Industries, Inc. (“MGI”) on the Closing Date may be held initially in

a specifically identified account of MGI at The Chase Manhattan Bank and

amounts borrowed by Messer Finance S.A. on the Closing Date may be held

initially in an account of Messer Finance S.A.

 

65

 

which is secured in favour of the Finance Parties

under a Security Document, in each case pending application within 5 Business

Days of the Closing Date for the purposes specified in the first sentence of

this paragraph (a). The Deemed Loan referred to in paragraph (d) of Clause 9.11

(Voluntary

prepayment of Term Facility Loans) shall be used to prepay the Term

Disposal Facility in the manner referred to in such paragraph (d).

 

(b)                                     Each Borrower shall apply all amounts borrowed by it and all Letters

of Credit and Bank Guarantees and Ancillary Facilities issued at its request

under Revolving Facility I towards the general corporate purposes of the MGG

Group.

 

(c)                                      Each Borrower shall apply all amounts borrowed by it and all Letters

of Credit and Bank Guarantees and Ancillary Facilities issued at its request

under Revolving Facility II to finance or refinance Non-Indemnified

Unconsolidated Debt provided that a Borrower shall be entitled

to apply amounts borrowed by it and Letters of Credit and Bank Guarantees and

Ancillary Facilities issued at its request under Revolving Facility II towards

the general working capital requirements of the MGG Group if the following

conditions are satisfied at the time of the first such application in relation

to any part of Revolving Facility II:

 

(i)                        the Agent has

received 5 Business Days prior to such time written confirmation from the

Obligor’s Agent (together with relevant supporting evidence) that the Total

Non-Indemnified Unconsolidated Debt has been permanently reduced (by reason of

the expiry of a guarantee or indemnity given by a member of the MGG Group which

is not to be renewed or as a result of the disposal of the MGG Group’s interest

in a Joint Venture or Unconsolidated Subsidiary or payment of a sum under such

a guarantee or indemnity by a member of the MGG Group or otherwise but not by

reason of a payment from the proceeds of a Revolving Facility II Loan or under

a Letter of Credit or Ancillary Facility or Bank Guarantee issued under

Revolving Facility II) by a specified amount; and

 

(ii)                     the reduction of

Total Non-Indemnified Unconsolidated Debt referred to in paragraph (i) above

has not been used to permit any previous such application and the aggregate

amount of (A) the amount to be borrowed and (B) the face amount of such

Guarantee or Letter of Credit or Ancillary Facility to be issued which are to

be so applied is equal to or less than the total amount of such reduction.

 

3.2                           Monitoring

No Finance

Party is bound to monitor or verify the application of any amount borrowed or

Bank Guarantee or Letter of Credit issued pursuant to this Agreement.

 

4.                                 CONDITIONS

OF UTILISATION

 

4.1                           Initial conditions precedent

No Borrower

may deliver a Utilisation Request unless the Agent has received all of the

documents and other evidence listed in Part I of Schedule 2 (Conditions

Precedent) in form and substance satisfactory to the Agent (acting

reasonably).  The Agent shall notify the

Obligor’s Agent and the Lenders promptly upon being so satisfied.

 

66

 

4.2                           Further conditions precedent

(a)                                      In the case of any Closing Utilisation, the Lenders and the relevant

Fronting Bank will only be obliged to comply with Clause 5.4 (Lenders’ and

Fronting Banks’ Participation) if on the date of the Utilisation

Request and on the proposed Utilisation Date:

 

(i)                        no Closing

Event of Default is continuing or would result from the proposed Closing

Utilisation; and

 

(ii)                    the Acquisition

Closing Conditions were satisfied on the Closing Date without being partially

or entirely waived by the Company or MGG or, notwithstanding the Acquisition

Closing Conditions not having been so satisfied without being partially or

entirely waived by the Company or MGG (except in accordance with Clause 23.24 (Amendments)),

the Company is obliged pursuant to the terms of the Business Combination

Agreement to consummate the MGG Acquisition on the Closing Date;

 

(iii)                 the Closing

Representations to be made or deemed to be made by the Obligor’s Agent and each

Obligor which is then a Party are true in all material respects.

 

(b)                                     In the case of any Utilisation (other than a Closing Utilisation),

the Lenders and the relevant Fronting Bank will only be obliged to comply with

Clause 5.4 (Lenders’

and Fronting Banks’ participation) if on the date of the Utilisation

Request and on the proposed Utilisation Date:

 

(i)                        in the case of

a Rollover Loan, no Event of Default is continuing or would result from the

proposed Rollover Loan and, in the case of any other Loan, a Letter of Credit

or a Bank Guarantee, no Default is continuing or

would result from the proposed Loan, Letter of Credit or Bank Guarantee; and

 

(ii)                     the Repeating

Representations to be made or deemed to be made by the Obligor’s Agent and each

Obligor which is then a Party are true in all material respects.

 

(c)                                      The Lenders will only be obliged to comply with paragraph (a)(iv) of

Clause 6.3 (Change

of currency) if, on the first day of an Interest Period, no Default

is continuing or would result from the change of currency and the Repeating

Representations to be made by each Obligor are true in all material respects.

 

(d)                                     In relation to a proposed Letter of Credit or Bank Guarantee, the

relevant Fronting Bank will only be obliged to comply with Clause 5.5 (Completion

of Letters of Credit) if the relevant Fronting Bank and the Agent

have approved the terms of the Letter of Credit or Bank Guarantee (which,

unless the Agent otherwise agrees in writing, shall be substantially in the

form set out in Schedule 11 (Form of Bank Guarantee) or Schedule 12 (Form of

Letter of Credit)).

 

67

 

4.3                           Conditions relating to Optional Currencies and the

euro unit

(a)                                      A currency will constitute an Optional Currency in relation to a

Loan, Letter of Credit or Bank Guarantee if:

 

(i)                        it is readily

available in the amount required and freely convertible into the Base Currency

in the Relevant Interbank Market on the Quotation Day and the Utilisation Date

for that Loan, Letter of Credit or Bank Guarantee; and

 

(ii)                     it is dollars or

sterling or Swiss Francs or euro 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 Utilisation Request or Selection Notice for that Loan, Letter of

Credit or Bank Guarantee, save that dollars shall not be an Optional Currency

in relation to a Term Disposal Facility Loan and euro shall not be an Optional

Currency in relation to any Term A Facility Loan, Revolving Facility Loan,

Letter of Credit or Bank Guarantee.

 

(b)                                     If the Agent has received a written request from the Obligor’s Agent

for a currency to be approved under paragraph (a)(ii) above, the Agent will

confirm to the Obligor’s Agent by the Specified Time:

 

(i)                        whether or not

the Lenders have granted their approval; and

 

(ii)                     if approval has been

granted, the minimum amount for any subsequent Utilisation in that currency,

which shall be a round number which is approximately the equivalent in that

currency of EUR5,000,000.

 

(c)                                      If a Loan, Letter of Credit or Bank Guarantee is to be denominated in

euros it will only be made available in the euro unit, deutschmarks or any

other national currency units of the euro agreed by the Majority Lenders.

 

4.4                           Maximum

number of Loans, Letters of Credit or Bank Guarantees

(a)                                      A Borrower may not deliver a Utilisation Request if as a result of

the proposed Utilisation:

 

(i)                        fifteen or

more Term Disposal Facility Loans would be outstanding;

 

(ii)                     fifteen or more

Term A Facility Loan would be outstanding;

 

(iii)                  five or more Term B

Euro Facility Loans would be outstanding;

 

(iv)                 five or more Term B

Dollar Facility Loans would be outstanding;

 

(v)                    five or more Term

C Euro Facility Loans would be outstanding;

 

(vi)                 five or more Term C

Dollar Facility Loans would be outstanding;

 

(vii)              ten or more Revolving

Facility I Loans would be outstanding; or

 

(viii)           ten or more Revolving

Facility II Loans would be outstanding.

 

68

 

(b)                                     A Borrower may not request that a Term Facility Loan be divided if,

as a result of the proposed division, ten or more Loans under the relevant Term

Facility would be outstanding.

 

(c)                                      Any Loan made by a single Lender under Clause 6.2 (Unavailability

of a Currency) shall not be taken into account in this Clause 4.4.

 

(d)                                     The above provisions of this Clause 4.4 shall not apply to any

Utilisation Request delivered prior to the end of the first one month Interest

Period relating to any Loan.

 

4.5                           Order of drawing of Facilities

(a)                                      The Facilities may only be drawn in the following order, so that no

Utilisation Request may be delivered in relation to any Facility until each of

the Facilities referred to above it in the following list has either been drawn

in full or will have been drawn in full prior to or on the proposed Utilisation

Date:

 

(i)            first,

the Term C Euro Facility, the Term C Dollar Facility, the Term B Euro Facility

and the Term B Dollar Facility;

 

(ii)           second,

the Term A Facility and Term Disposal Facility;

 

(iii)          third,

the Revolving Facilities.

 

(b)                                     Notwithstanding the above paragraph (a):

 

(i)                                     Utilisations (“Relevant Utilisations”) by way of Letters

of Credit and/or Bank Guarantees may be issued under the Revolving Facilities

prior to the Facilities referred to in paragraph (a)(ii) above being drawn in

full provided

that the aggregate of the Base Currency Amounts of all such Relevant

Utilisations does not exceed EUR25,000,000; and

 

(ii)                                  Term A Loans (“Relevant Loans”) may be drawn prior to the

Facilities referred to in paragraph (a)(i) above being drawn in full provided

that the aggregate Base Currency Amounts of all such Relevant Loans

does not exceed EUR 100,000,000.

 

4.6                           Simultaneous Drawdown of certain facilities

No Loan shall

be made under the Term C Euro Facility or the Term C Dollar Facility (the “First

Relevant Facilities”) unless Loans are made simultaneously under the

other First Relevant Facility so that the Available Facility in relation to

each First Relevant Facility is reduced rateably.

 

4.7                           Drawing of Term C Facilities

The Term C

Dollar Facility and the Term C Euro Facility may each only be drawn in no more

than two amounts.

 

69

 

SECTION 3

 

UTILISATION

 

5.                                 UTILISATION

 

5.1                           Delivery of a Utilisation Request

A Borrower may

utilise a Facility made available to it by delivery to the Agent of a duly

completed Utilisation Request no later than the Specified Time.

 

5.2                           Completion of a Utilisation Request

(a)                                      Each Utilisation Request is irrevocable (unless it is a Utilisation

Request solely requesting the issue of a Letter of Credit or Bank Guarantee

which is withdrawn or revoked by written notice to the Agent and the relevant

Fronting Bank before that Letter of Credit or Bank Guarantee is issued by that

Fronting Bank) and will not be regarded as having been duly completed unless:

 

(i)                        it identifies

the Facility to be utilised and, if it is a Revolving Facility, whether it is

to be utilised by way of a Loan or a Bank Guarantee or a Letter of Credit;

 

(ii)                     the proposed

Utilisation Date is a Business Day within the Availability Period;

 

(iii)                  the amount of the

Utilisation complies with Clause 5.3 (Currency and Amount); and

 

(iv)                 the proposed Interest

Period or Term (as the case may be) complies with Clause 11 (Interest

Periods and Terms).

 

(b)                                     Only one Utilisation may be requested in each Utilisation Request.

 

(c)                                      During the first 90 days after the Closing Date, no more than 10 and

thereafter no more than 3 Utilisation Requests may be delivered to the Agent on

any one Business Day.

 

5.3                           Currency

and amount

(a)                                      The currency specified in a Utilisation Request must be the Base

Currency or an Optional Currency, except that in the case of the Dollar

Facilities it must be dollars and, in the case of the Euro Facilities, it must

be euros.

 

(b)                                     The amount of the proposed Loan, Letter of Credit or Bank Guarantee

must be an amount whose Base Currency Amount is not more than the Available

Facility and which is:

 

(i)                        if the

currency selected is the Base Currency, a minimum of EUR5,000,000 for each

Facility (other than any Dollar Facility 

and the Term Disposal Facility) (or, in relation to a Letter of Credit

or Bank Guarantee, EUR1,000,000 or such lesser amount agreed to by the Fronting

Bank) or (in relation to any Dollar Facility or the Term Disposal Facility) a

minimum of $5,000,000 or in each case, if less, the  Available Facility;

 

70

 

(ii)                     if the currency

selected is dollars, a minimum of $5,000,000 for each Facility  (or, in relation to a Letter of Credit or

Bank Guarantee, $1,000,000 or such lesser amount agreed to by the Fronting

Bank) or, if less, the  Available

Facility;

 

(iii)                  if the currency

selected is sterling, a minimum of £5,000,000 for each Facility (or, in

relation to a Letter of Credit or Bank Guarantee, £1,000,000 or such lesser

amount as may be agreed to by the Fronting Bank) or, if less, the Available

Facility;

 

(iv)                 if the currency

selected is an Optional Currency other than dollars or sterling, the minimum

amount specified by the Agent pursuant to paragraph (b)(ii) of Clause 4.3 (Conditions

relating to Optional Currencies and the Euro Unit) (or, in relation

to a Letter of Credit or Bank Guarantee, such minimum amount agreed to by the

Fronting Bank) or, if less, the Available Facility; or

 

(v)                    (in respect of a

Letter of Credit or Bank Guarantee in relation to any Revolving Facility) an

amount which, when aggregated with the amount of maximum actual and contingent

liabilities of the Lenders in respect of all other outstanding Letters of

Credit and Bank Guarantees at such time in relation to that Revolving Facility,

does not exceed EUR75,000,000 (in the case of Revolving Facility I) or

EUR50,000,000 (in the case of Revolving Facility II).

 

5.4                           Lenders’ and Fronting Banks’ participation

(a)                                      If the conditions set out in this Agreement have been met:

 

(i)                        each Lender

shall make its participation in each Loan available through its Facility

Office; and

 

(ii)                     each Fronting

Bank shall issue each Letter of Credit and Bank Guarantee through its Facility

Office.

 

(b)                                     The amount of each Lender’s participation in each Loan, Letter of

Credit and Bank Guarantee will be equal to the proportion borne by its

Available Commitment to the Available Facility immediately prior to making such

Loan or issuing such Letter of Credit or Bank Guarantee.

 

(c)                                      The Agent shall notify each Lender of the amount, currency and the

Base Currency Amount of each Loan, Letter of Credit and Bank Guarantee at the

Specified Time.

 

5.5                           Completion of Letters of Credit

The

relevant Fronting Bank is authorised to issue any Letter of Credit or Bank Guarantee

pursuant to Clause 5 (Utilisation) by:

 

(a)                                      completing the issue date and the proposed Expiry Date of that

Letter of Credit or Bank Guarantee; and

 

(b)                                     executing and delivering that Letter of Credit or Bank Guarantee to

the relevant recipient on the Utilisation Date.

 

71

 

5.6                           Renewal of a Letter of Credit or Bank Guarantee

(a)                                      No later than the Specified Time before the Expiry Date of a Letter

of Credit or Bank Guarantee the relevant Borrower may, by written notice to the

Agent, request that the Term of that Letter of Credit or Bank Guarantee be

extended.

 

(b)                                     The Finance Parties shall treat the request in the same way as a

Utilisation Request for a Letter of Credit or, as the case may be, Bank Guarantee

in the amount and maturity of the Letter of Credit or Bank Guarantee (as to be

extended).

 

(c)                                      The terms of each renewed Letter of Credit or Bank Guarantee shall

be the same as those of the relevant Letter of Credit or Bank Guarantee

immediately prior to its renewal, save that its Term shall commence on the date

which was the Expiry Date of that Letter of Credit or Bank Guarantee

immediately prior to its renewal and shall end on the proposed Expiry Date

specified in that request.

 

(d)                                     The relevant Fronting Bank is authorised to amend any Letter of

Credit or Bank Guarantee pursuant to that request if the conditions set out in

this Agreement have been complied with.

 

5.7                           Restrictions on participation in Letters of Credit

If at any time

prior to the issue of a Letter of Credit any Lender is prohibited by law or

pursuant to any request from or requirement of any central bank or other

fiscal, monetary or other authority from having any right or obligation under

this Agreement in respect of a Letter of Credit, that Lender shall notify the

Agent on or before the Business Day prior to the proposed Utilisation Date and:

 

(a)                                      the maximum actual and contingent liabilities of the relevant

Fronting Bank under that Letter of Credit shall be reduced by an amount equal to

an amount which would have been the amount of that Lender’s L/C Proportion of

that Letter of Credit if the prohibition had not occurred;

 

(b)                                     the L/C Proportion of that Lender in relation to that Letter of

Credit shall be nil; and

 

(c)                                      that Lender’s Available Commitment in respect of the relevant

Revolving Facility shall be reduced by an amount equal to an amount which would

have been the amount of that Lender’s L/C Proportion of the Letter of Credit if

the prohibition had not occurred.

 

5.8                           Restrictions on participation in Bank Guarantees

If at any time

prior to the issue of a Bank Guarantee any Lender is prohibited by law or

pursuant to any request from or requirement of any central bank or other

fiscal, monetary or other authority from having any right or obligation under

this Agreement in respect of a Bank Guarantee, that Lender shall notify the

Agent on or before the Business Day prior to the proposed Utilisation Date and:

 

(a)                                      the maximum actual and contingent liabilities of the relevant

Fronting Bank under that Bank Guarantee shall be reduced by an amount equal to

an amount which would have been the amount of that Lender’s Guarantee

Proportion of that Bank Guarantee if the prohibition had not occurred;

 

72

 

(b)                                     the Guarantee Proportion of that Lender in relation to that Bank

Guarantee shall be nil; and

 

(c)                                      that Lender’s Available Commitment in respect of the relevant

Revolving Facility shall be reduced by an amount equal to an amount which would

have been the amount of that Lender’s Guarantee Proportion of the Bank

Guarantee if the prohibition had not occurred.

 

6.                                 OPTIONAL

CURRENCIES

 

6.1                           Selection

of currency

(a)                                      A Borrower (or the Obligor’s Agent on behalf of a Borrower) shall

select the currency of a Loan, Letter of Credit or Bank Guarantee:

 

(i)                        (in the case

of an initial Utilisation) in a Utilisation Request provided that in respect of

Loans to be made on the Closing Date only euros and dollars and sterling may be

selected; and

 

(ii)                     (afterwards in relation

to a Term Facility Loan (other than a Dollar Facility Loan) made to it) in a

Selection Notice which must be delivered by the same Specified Time as if it

were a Utilisation Request for such a Loan to be made on the date of such

conversion in the currency into which it wishes to convert such Loan.

 

(b)                                     If a Borrower (or the Obligor’s Agent on behalf of a Borrower) fails

to issue a Selection Notice by the time specified in paragraph (a)(ii) above in

relation to a Term Facility Loan, that Term Facility Loan will remain

denominated for its next Interest Period in the same currency in which it is

then outstanding.

 

(c)                                      If a Borrower (or the Obligor’s Agent on behalf of a Borrower)

issues a Selection Notice requesting a change of currency and the first day of

the requested Interest Period is not a Business Day for the new currency, the

Agent shall promptly notify the Borrower and the Lenders and the Loan will

remain in the existing currency (with Interest Periods running from one

Business Day until the next Business Day) until the next day which is a

Business Day for both currencies, on which day the requested Interest Period

will begin.

 

(d)                                     A Dollar Facility Loan may only be denominated in dollars and a Euro

Facility Loan may only be denominated in euros.

 

6.2                           Unavailability of a currency

If

before the Specified Time on any Quotation Day:

 

(a)                                      the Agent has received notice from a Lender that the Optional

Currency requested is not readily available to it in the amount required; or

 

(b)                                     a Lender notifies the Agent that compliance with its obligation to

participate in a Loan in the proposed Optional Currency would contravene a law

or regulation applicable to it,

 

73

 

the Agent will

give notice to the relevant  Borrower to

that effect by the Specified Time on that day. 

In this event, any Lender that gives notice pursuant to this Clause 6.2

will be required to participate in the Loan in the Base Currency (in an amount

equal to that Lender’s proportion of the Base Currency Amount, or in respect of

a Rollover Loan, an amount equal to that Lender’s proportion of the Base

Currency Amount of the maturing Revolving Facility Loan that is due to be

repaid) and its participation will be treated as a separate Loan denominated in

the Base Currency during that Interest Period.

 

6.3                           Change

of currency

(a)                                      If a Term Facility Loan is to be denominated in different currencies

during two successive Interest Periods:

 

(i)                        if the

currency for the second Interest Period is an Optional Currency, the amount of

the Loan in that Optional Currency will be calculated by the Agent as the

amount of that Optional Currency equal to the Base Currency Amount of the Loan

at the Agent’s Spot Rate of Exchange at the Specified Time;

 

(ii)                     if the currency

for the second Interest Period is the Base Currency, the amount of the Loan

will be equal to the Base Currency Amount;

 

(iii)                  (unless the Agent

and the Borrower agree otherwise in accordance with paragraph (b) below) the

Borrower that has borrowed the Loan shall repay it on the last day of the first

Interest Period in the currency in which it was denominated for that Interest

Period; and

 

(iv)                 (subject to Clause

4.2 (Further

conditions precedent)) the Lenders shall re-advance the Loan in the

new currency in accordance with Clause 6.5 (Agent’s Calculations).

 

(b)                                     If the Agent and the Borrower that has borrowed the relevant Term

Facility Loan agree, the Agent shall:

 

(i)                        apply the

amount paid to it by the Lenders pursuant to paragraph (a)(iv) above (or so much

of that amount as is necessary) in or towards purchase of an amount in the

currency in which the relevant Term Facility Loan is outstanding for the first

Interest Period; and

 

(ii)                     use the amount it

purchases in or towards satisfaction of the relevant Borrower’s obligations

under paragraph (a)(iii) above.

 

(c)                                      If the amount purchased by the Agent pursuant to paragraph (b)(i)

above is less than the amount required to be repaid by the relevant Borrower,

the Agent shall promptly notify that Borrower and that Borrower shall, on the

last day of the first Interest Period, pay an amount to the Agent (in the

currency of the outstanding relevant Term Facility Loan for the first Interest

Period) equal to the difference.

 

(d)                                     If any part of the amount paid to the Agent by the Lenders pursuant

to paragraph (a)(iv) above is not needed to purchase the amount required to be

repaid by the relevant Borrower, the Agent shall promptly notify that Borrower

and pay that

 

74

 

Borrower, on the last day of the first Interest Period

that part of that amount (in the new currency).

 

6.4                           Same Optional Currency during successive Interest

Periods

(a)                                      If a Term Facility Loan (other than a Dollar Facility Loan or a Euro

Facility Loan) is to be denominated in the same Optional Currency during two

successive Interest Periods, the Agent shall calculate the amount of such Term

Facility Loan in the Optional Currency for the second of those Interest Periods

(by calculating the amount of Optional Currency equal to the Base Currency

Amount of that Term Facility Loan at the Agent’s Spot Rate of Exchange at the

Specified Time) and (subject to paragraph (b) below):

 

(i)                        if the amount

calculated is less than the existing amount of that Term Facility Loan in the

Optional Currency during the first Interest Period, promptly notify the

Borrower that has borrowed that Term Facility Loan and that Borrower shall pay,

on the last day of the first Interest Period, an amount equal to the

difference; or

 

(ii)                     if the amount

calculated is more than the existing amount of that Term Facility Loan in the

Optional Currency during the first Interest Period, promptly notify each Lender

and, if no Event of Default is continuing, each Lender shall, on the last day

of the first Interest Period, pay its participation in an amount equal to the

difference.

 

(b)                                     If the calculation made by the Agent pursuant to paragraph (a) above

shows that the amount of the relevant Term Facility Loan in the Optional

Currency has increased or decreased by less than 5 per cent. compared to its

Base Currency Amount, no notification shall be made by the Agent and no payment

shall be required under paragraph (a) above.

 

6.5                           Agent’s

calculations

(a)                                      All calculations made by the Agent pursuant to this Clause 6 will

take into account any repayment, prepayment, consolidation or division of Term

Facility Loans to be made on the last day of the first Interest Period.

 

(b)                                     Each Lender’s participation in a Loan will, subject to paragraph (a)

above, be determined in accordance with paragraph (b) of Clause 5.4 (Lenders’ and

Fronting Banks’ participation).

 

75

 

SECTION 4

 

REPAYMENT, PREPAYMENT AND CANCELLATION

 

7.                                 REPAYMENT

 

7.1                           Repayment of Term Disposal Facility Loans

(a)                                      Unless the terms of this Agreement require such to be repaid at an

earlier date, each Borrower shall repay the Term Disposal Facility Loans made

to it in full on the Term Disposal Facility Repayment Date.

 

(b)                                     No Borrower may reborrow any part of the Term Disposal Facility

which is repaid.

 

7.2                           Repayment of Term A Facility Loans

(a)                                      Unless the terms of this Agreement require such to be repaid at an

earlier date, each Borrower shall repay the Term A Facility Loans made to it in

instalments by repaying on each Term A Facility Repayment Date an amount which

reduces the Base Currency Amount of the outstanding Term A Facility Loans by an

amount equal to the relevant percentage of the Base Currency Amount of all the

Term A Facility Loans borrowed by that Borrower as at the close of business in

London on the last day of the relevant Availability Period in relation to the

Term A Facility as set out in the table below:

 

	

  Repayment Date

  	

   

  	

  Repayment

  Instalment

  (as percentage of all Term A Facility

  Loans as at close of business in London on

  the last day of the relevant Availability

  Period)

  	

   

  
	

  20 December 2001

  	

   

  	

  1.5

  	

  %

  
	

  20 April 2002

  	

   

  	

  1.5

  	

  %

  
	

  20 October 2002

  	

   

  	

  2.00

  	

  %

  
	

  20 April 2003

  	

   

  	

  2.5

  	

  %

  
	

  20 October 2003

  	

   

  	

  5.5

  	

  %

  
	

  20 April 2004

  	

   

  	

  6.0

  	

  %

  
	

  20 October 2004

  	

   

  	

  8.5

  	

  %

  
	

  20 April 2005

  	

   

  	

  7.5

  	

  %

  
	

  20 October 2005

  	

   

  	

  10.0

  	

  %

  
	

  20 April 2006

  	

   

  	

  10.0

  	

  %

  
	

  20 October 2006

  	

   

  	

  10.0

  	

  %

  
	

  20 April 2007

  	

   

  	

  10.0

  	

  %

  
	

  20 October 2007

  	

   

  	

  12.5

  	

  %

  
	

  20 April 2008

  	

   

  	

  12.5

  	

  %

  

 

(b)                                     If, in relation to a Term A Facility Repayment Date, the aggregate

outstanding amount of the Term A Facility Loans made to the Borrowers exceeds

the Term A Facility Repayment Instalment to be repaid by the Borrowers, the

Obligor’s Agent may, if it gives the Agent not less than five Business Days’

prior notice, select which of those Term A Facility Loans will be wholly or

partially repaid so that the Term A

 

76

 

Facility Repayment Instalment is repaid on the

relevant Term A Facility Repayment Date in full.

 

(c)                                      If the Obligor’s Agent fails to deliver a notice to the Agent in

accordance with paragraph (b) above, the Agent shall select the Term A Facility

Loans to be wholly or partially repaid.

 

(d)                                     Any repayment or prepayment of a Term A Facility Loan denominated in

an Optional Currency shall reduce the amount of that Term A Facility Loan by

the amount of that Optional Currency repaid.

 

(e)                                      Save as provided in Clause 10.3 (Margin Changes) or paragraph (d) of Clause

9.11 (Voluntary

prepayment of Term Facility Loans), no Borrower may reborrow any

part of Term A Facility which is repaid.

 

7.3                           Repayment of Term B Dollar Facility Loans

(a)                                      Unless the terms of this Agreement require such to be repaid at an

earlier date, each Borrower shall repay the Term B Dollar Facility Loans made

to it in instalments by repaying on each Term B Facility Repayment Date an

amount which reduces the outstanding Term B Dollar Facility Loans by an amount

equal to 50% of all the Term B Dollar Facility Loans borrowed by that Borrower

as at close of business on the last Business Day of the relevant Availability

Period.

 

(b)                                     If, in relation to a Term B Facility Repayment Date, the aggregate

outstanding amount of the Term B Dollar Facility Loans made to the Borrowers

exceeds the Term B Dollar Facility Repayment Instalment to be repaid by the Borrowers,

the Obligor’s Agent may, if it gives the Agent not less than five Business

Days’ prior notice, select which of those Term B Dollar Facility Loans will be

wholly or partially repaid so that the Term B Dollar Facility Repayment

Instalment is repaid on the relevant Term B Facility Repayment Date in full.

 

(c)                                      If the Obligor’s Agent fails to deliver a notice to the Agent in

accordance with paragraph (b) above, the Agent shall select the Term B Dollar

Facility Loans to be wholly or partially repaid.

 

(d)                                     No Borrower may reborrow any part of the Term B Dollar Facility

which is repaid.

 

7.4                           Repayment of Term B Euro Facility Loans

(a)                                      Unless the terms of this Agreement require such to be repaid at an

earlier date, each Borrower shall repay the Term B Euro Facility Loans made to

it in instalments by repaying on each Term B Facility Repayment Date an amount

which reduces the outstanding Term B Euro Facility Loans by an amount equal to

50% of all the Term B Euro Facility Loans borrowed by that Borrower as at close

of business on the last Business Day of the relevant Availability Period.

 

(b)                                     If, in relation to a Term B Facility Repayment Date, the aggregate

outstanding amount of the Term B Euro Facility Loans made to the Borrowers

exceeds the Term B Euro Facility Repayment Instalment to be repaid by the

Borrowers, the Obligor’s Agent may, if it gives the Agent not less than five

Business Days’ prior notice, select which of those Term B Euro Facility Loans

will be wholly or partially repaid so that the 

 

77

 

Term B Euro Facility Repayment Instalment is repaid on

the relevant Term B Facility Repayment Date in full.

 

(c)                                      If the Obligor’s Agent fails to deliver a notice to the Agent in

accordance with paragraph (b) above, the Agent shall select the Term B Euro

Facility Loans to be wholly or partially repaid.

 

(d)                                     Save as provided in Clause 10.3 (Margin changes), no Borrower may reborrow

any part of the Term B Euro Facility which is repaid.

 

7.5                           Repayment of Term C Euro Facility Loans

(a)                                      Unless the terms of this Agreement require such to be repaid at an

earlier date, each Borrower shall repay the Term C Euro Facility Loans made to

it in instalments by repaying on each Term C Facility Repayment Date an amount

which reduces the outstanding Term C Euro Facility Loans by an amount equal to

50% of all the Term C Euro Facility Loans borrowed by the Borrowers as at close

of business on the last Business Day of the relevant Availability Period.

 

(b)                                     If, in relation to a Term C Facility Repayment Date, the aggregate

outstanding amount of the Term C Euro Facility Loans made to the Borrowers

exceeds the Term C Euro Facility Repayment Instalment to be repaid by the

Borrowers, the Obligor’s Agent may, if it gives the Agent not less than five

Business Days’ prior notice, select which of those Term C Euro Facility Loans

will be wholly or partially repaid so that the Term C Euro Facility Repayment

Instalment is repaid on the relevant Term C Facility Repayment Date in full.

 

(c)                                      If the Obligor’s Agent fails to deliver a notice to the Agent in

accordance with paragraph (b) above, the Agent shall select the Term C Euro

Facility Loans to be wholly or partially repaid.

 

(d)                                     No Borrower may reborrow any part of the Term C Euro Facility which

is repaid.

 

7.6                           Repayment of Term C Dollar Facility Loans

(a)                                      Unless the terms of this Agreement require such to be repaid at an

earlier date, each US Borrower shall repay the Term C Dollar Facility Loans

made to it in instalments by repaying on each Term C Facility Repayment Date an

amount which reduces the outstanding Term C Dollar Facility Loans by an amount

equal to 50% of all the Term C Dollar Facility Loans borrowed by that US

Borrower as at close of business in London on the last day of the relevant Availability

Period.

 

(b)                                     If, in relation to a Term C Facility Repayment Date, the aggregate

outstanding amount of the Term C Dollar Facility Loans made to the US Borrowers

exceeds the Term C Dollar Facility Repayment Instalment to be repaid by the US

Borrowers, the Obligor’s Agent may, if it gives the Agent not less than five

Business Days’ prior notice, select which of those Term C Dollar Facility Loans

will be wholly or partially repaid so that the Term C Facility Repayment

Instalment is repaid on the relevant Term C Facility Repayment Date in full.

 

78

 

(c)                                      If the Obligor’s Agent fails to deliver a notice to the Agent in

accordance with paragraph (b) above, the Agent shall select the Term C Dollar

Facility Loans to be wholly or partially repaid.

 

(d)                                     No Borrower may reborrow any part of the Term C Dollar Facility

which is repaid.

 

7.7                           Repayment of Revolving Facility Loans

Each Borrower

which has drawn a Revolving Facility Loan shall repay that Loan on the last day

of its Interest Period.

 

7.8                           Change

of Borrower

(a)                                      A Term A Facility Loan, a Term B Euro Facility Loan or on Term C

Euro Facility Loan may be prepaid (in whole or in part) by a Borrower (which is

either MGG or Messer Finance S.A.) and reborrowed by another Borrower of the

relevant Facility (which is either MGG or Messer Finance S.A.) on the last day

of an Interest Period provided that:

 

(i)                        a duly

completed Change of Borrower Notice has been delivered to the Agent no later

than 9.30 a.m. four Business Days before the proposed date of the change of

Borrower;

 

(ii)                     the Loan

reborrowed is under the same Term Facility, is the same amount as the amount

prepaid and is in the same currency as the Loan (in whole or in part) prepaid;

 

(iii)                  no Event of Default

is continuing or would result from the reborrowing;

 

(iv)                 the Repeating

Representations to be made or deemed to be made by the Obligor’s Agent and each

Obligor which is then a Party are true in all material respects; and

 

(v)                    the prepayment and

reborrowing, take place on the same day by way of book entries, and not by way

of a physical movement of cash.

 

(b)                                     Notwithstanding any other provision of this Agreement, a change of

Borrower in accordance with paragraph (a) above may occur on the last day of an

Interest Period after the Availability Period for the relevant Term Facility

has ended.

 

8.                                 BORROWER’S LIABILITIES IN RELATION TO LETTERS OF CREDIT AND BANK GUARANTEES

 

8.1                           Demands under Letters of Credit and Bank Guarantees

If a demand is

made under a Letter of Credit or a Bank Guarantee or a Fronting Bank incurs in

connection with a Letter of Credit or a Bank Guarantee any other liability,

cost, claim, loss or expense which is to be reimbursed pursuant to this

Agreement, the relevant Fronting Bank shall promptly notify the Agent of the

amount of such demand or such liability, cost, claim, loss or expense and the

Letter of Credit or, as the case may be, Bank Guarantee to which it relates and

the Agent shall promptly make demand upon the relevant Borrower in accordance

with this Agreement and notify the Obligor’s Agent and the Lenders.

 

79

 

8.2                           Borrowers’ indemnity to Fronting Banks

Each Borrower

shall irrevocably and unconditionally as a primary obligation indemnify (within

three Business Days of demand of the Agent) any Fronting Bank which has issued

a Letter of Credit or a Bank Guarantee at the request of such Borrower against:

 

(a)                                      any sum paid by that Fronting Bank in accordance with the provisions

of such Letter of Credit or Bank Guarantee or due and payable by that Fronting

Bank under such Letter of Credit or, as the case may be, Bank Guarantee; and

 

(b)                                     all liabilities, costs (including, without limitation, any costs

incurred in funding any amount which falls due from that Fronting Bank under

such Letter of Credit or Bank Guarantee or in connection with any such Letter

of Credit or Bank Guarantee), claims, losses and expenses which that Fronting

Bank may at any time incur or sustain in connection with or arising out of any

such Letter of Credit or Bank Guarantee provided that any payment under such Letter

of Credit or Bank Guarantee shall have been made in compliance with the terms

thereof.

 

8.3                           Borrowers’ indemnity to Lenders

Each Borrower

shall irrevocably and unconditionally as a primary obligation indemnify (on

demand of the Agent) each Lender against, in respect of each Letter of Credit

and Bank Guarantee issued at such Borrower’s request:

 

(a)                                      any sum paid by that Lender in accordance with the provisions hereof

or due and payable by that Lender (whether under Clause 28.1 (Lenders’ Indemnity)

or otherwise) in connection with such Letter of Credit or Bank Guarantee; and

 

(b)                                     all liabilities, costs (including, without limitation, any costs

incurred in funding any amount which falls due from that Lender in connection

with such Letter of Credit or Bank Guarantee), claims, losses and expenses

which that Lender may at any time incur or sustain in connection with any such

Letter of Credit or Bank Guarantee provided that any payment under such Letter

of Credit or Bank Guarantee shall have been made in compliance with the terms

thereof.

 

8.4                           Preservation

of rights

Neither the

obligations of the Borrowers set out in this Clause 8 nor the rights, powers

and remedies conferred on any Fronting Bank or Lender by this Agreement or by

law shall be discharged, impaired or otherwise affected by:

 

(a)                                      the winding-up, dissolution, administration or re-organisation

of the relevant Fronting Bank, any Lender or any other person or any change in

its status, function, control or ownership;

 

(b)                                     any of the obligations of the relevant Fronting Bank, any Lender or

any other person under this Agreement, any Letter of Credit, any Bank Guarantee

or any other security taken in respect of its obligations under this Agreement

or otherwise in connection with a Letter of Credit or Bank Guarantee being or

becoming illegal, invalid, unenforceable or ineffective in any respect;

 

(c)                                      time or other indulgence being granted or agreed to be granted to

the relevant Fronting Bank, any Lender or any other person in respect of its

obligations under this

 

80

 

Agreement or under or in connection with a Letter of

Credit or Bank Guarantee or under any other security;

 

(d)                                     any amendment to, or any variation, waiver or release of, any

obligation of that Fronting Bank, any Lender or any other person under a Letter

of Credit, Bank Guarantee or this Agreement;

 

(e)                                      any other act, event or omission which, but for this Clause 8,

might operate to discharge, impair or otherwise affect any of the obligations

of the Borrowers set out in this Clause 8 or any of the rights, powers or

remedies conferred upon that Fronting Bank or any Lender by this Agreement or

by law.

 

The obligations

of each Borrower set out in this Clause 8 shall be in addition to and

independent of every other security which any Fronting Bank or any Lender may

at any time hold in respect of the Borrowers’ obligations under this Agreement.

 

8.5                           Settlement

conditional

Any settlement

or discharge between a Borrower and a Fronting Bank or a Lender shall be

conditional upon no security or payment to that Fronting Bank or Lender by that

Borrower, or any other person on behalf of that Borrower, being avoided or

reduced by virtue of any laws relating to bankruptcy, insolvency, liquidation

or similar laws of general application and, if any such security or payment is

so avoided or reduced, that Fronting Bank or Lender shall be entitled to

recover the value or amount of such security or payment from such Borrower

subsequently as if such settlement or discharge had not occurred.

 

8.6                           Right to make payments under Letters of Credit and

Bank Guarantees

Each Fronting

Bank shall be entitled to make any payment in accordance with the terms of the

relevant Letter of Credit or, as the case may be, Bank Guarantee without any

reference to or further authority from the Obligor’s Agent, the Borrowers or

any other investigation or enquiry. Each Borrower irrevocably authorises each

Fronting Bank to comply with any demand under a Letter of Credit or Bank

Guarantee which is valid on its face.

 

9.                                 PREPAYMENT

AND CANCELLATION

 

9.1                           Illegality

If, at any

time, it is unlawful in any jurisdiction for a Lender or Fronting Bank to

perform any of its obligations as contemplated by this Agreement or to fund,

issue or participate in any Loan, Letter of Credit or Bank Guarantee:

 

(a)                                      that Lender shall promptly notify the Agent upon becoming aware of

that event;

 

(b)                                     upon the Agent notifying the Obligor’s Agent, the Commitment of that

Lender will be immediately cancelled;

 

(c)                                      each Borrower shall, on the last day of the Interest Period for each

Loan or Term for each Letter of Credit or Bank Guarantee occurring after the

Agent has notified the Obligor’s Agent or, if earlier, the date specified by

the Lender or Fronting Bank in the notice delivered to the Agent (being no

earlier than the last day of any applicable grace period permitted by law):

 

(i)                        repay that

Lender’s participation in the Loans made to it; and

 

81

 

(ii)                     ensure that the

liabilities of that Lender or Fronting Bank under or in respect of each Letter

of Credit and Bank Guarantee issued at the request of such Borrower are reduced

to zero or otherwise secured by providing Cash Collateral in an amount equal to

such Lender’s L/C Proportion of those Letters of Credit, Guarantee Proportion

of those Bank Guarantees or, as the case may be, that Fronting Bank’s maximum

actual and contingent liabilities under those Letter of Credit and Bank

Guarantees in the currency or currencies of those Letters of Credit and Bank

Guarantees.

 

9.2                           Change

of control

If after the

Closing Date there is a Change of Control:

 

(a)                                      the Obligor’s Agent shall promptly notify the Agent upon becoming

aware of that event; and

 

(b)                                     the Obligor’s Agent shall procure that the Outstandings are

immediately and permanently prepaid in full and the Facilities immediately

cancelled,

 

provided that:

 

(1)                     if the Company ceases to own 100% of the issued share capital of

Newco 2 as a result of, and on the terms of, the transactions expressly

contemplated by the Business Combination Agreement relating to the transfer of

66 2/3% of the shares in Newco 2 to Hoechst Newco 3, for a period no

longer than 90 days (the “Postponed Control Period”) then during the

Postponed Control Period only the Company shall not be regarded for the

purposes of the definition of Change of Control in Clause 1.1 (Definitions)

to have ceased to own (directly or indirectly) 100% of the issued share capital

in Newco 2 or MGG or (if it is during the Debtco Structure Period) Debtco; and

 

(2)                     no Change of Control under paragraph (e) of the definition of Change

of Control in Clause 1.1 (Definitions) shall arise as a result of

Newco 2 not owning 100% of the issued share capital of MGG if at such time

Newco 2 owns 662/3% of the issued share capital of MGG

and MIG has contributed the Family MGG Shares to Newco 2 in accordance with the

Contribution Agreement set out in Annex 1.1(b) to the Shareholders’ Agreement

but such contribution is not yet effective pending the registration of the

relevant increase of share capital of Newco 2 by the relevant German court.

 

9.3                           Flotation

or Sale

The Obligor’s

Agent shall procure that the Outstandings are immediately and permanently

prepaid in full upon the occurrence of a Sale or a Flotation and the Facilities

immediately cancelled.

 

9.4                           Excess

Cash Flow

The Obligor’s

Agent shall ensure that after delivery of the most recent audited financial

statements of the Newco 2 Group pursuant to paragraph (a) of Clause 21.1 (Financial

Statements), commencing with the financial statements delivered in

respect of the calendar year ending 31 December 2001, 75 per cent.(or, if the

Leverage Ratio for the calendar year to which such financial statements relate

is less than 4:1, 50 per  cent.) of

Excess Cash Flow for 

 

82

 

the calendar

year to which such financial statements relate (less the aggregate amount by

which the Term Facilities have been prepaid pursuant to Clause 9.11 (Voluntary

Prepayment of Term Facility Loans)  during such calendar year

(other than the aggregate amount by which the Term Facilities have been prepaid

in that calendar year pursuant to Clause 9.11(e) (Voluntary prepayment of Term Facility Loans)) and less the

aggregate amount by which the Term Facilities have been prepaid in accordance

with Clause 9.11(e)(i) (Voluntary prepayment

of Term Facility Loans) after the end of such calendar year but

before the delivery of the financial statements in respect of such calendar

year) is applied in repayment of the outstanding Loans in accordance with

Clause 9.8 (Application

of Prepayments), such repayment in relation to each Loan to be

repaid to be made on the last day of the Interest Period current at the date of

delivery of such financial statements of each such Loan due to be repaid or

such earlier date as the Obligor’s Agent may elect.  Without in any way affecting the obligations of the Obligor’s

Agent under this Clause, the Agent agrees that it shall notify the Obligor’s

Agent as soon as reasonably practicable after receipt of the relevant financial

statements and their accompanying Compliance Certificate and Auditors Report of

the details of the application of the repayment required under this Clause  and the dates on which such application is

to be made.

 

9.5                           Asset

Disposals

(a)                                      Subject to Clause 9.9 (Prepayment Escrow Account), the Obligor’s

Agent shall ensure that an amount equal to 100% of the amount of the Net

Disposal Proceeds of any disposals of any asset by any member of the Group made

in accordance with the Disposal Plan or falling within paragraph (i) or (k)(iv)

of the definition of Permitted Disposals is applied within 5 Business Days of

such member of the Group receiving such Net Disposal Proceeds in repayment of

the outstanding Loans in accordance with Clause 9.8 (Application of Prepayments),

save that if such Net Disposal Proceeds when added to the aggregate amount of

the Term Disposal Facility which has been repaid at that time and the Relevant

Debt Relief Amount at such time exceed EUR255,000,000 (or its equivalent) (the

amount of such excess being the “Excess Amount”) then in respect of such

Excess Amount only the Obligor’s Agent is only obliged to procure that an

amount equal to 75% of such Excess Amount is so applied unless if as a result

there would still be Term Disposal Facility Loans outstanding, in which case it

is obliged to procure that a higher percentage of such Excess Amount is so

applied so as to ensure that the Term Disposal Facility is repaid in full.

 

(b)                                     Subject to Clause 9.9 (Prepayment Escrow Account), the Obligor’s

Agent shall ensure that an amount equal to 100% of the amount of the Net

Disposal Proceeds of any disposal of any asset by any member of the Group,

where such a disposal falls within paragraph (n) of the definition of Permitted

Disposals or is a disposal pursuant to section 3.3 (Exemption of Certain Transactions)

of the BCA which does not fall to be applied under paragraph (a) of this Clause

9.5, is applied promptly upon such member of the Group receiving such amount in

repayment of the outstanding Loans in accordance with Clause 9.8 (Application

of Prepayments) save that if such Net Disposal Proceeds exceed the

aggregate amount of the Term Disposal Facility Loans outstanding at that time

(the amount of such excess being the “Excess Amount”) then in respect of such

Excess Amount only the Obligor’s Agent is only obliged to procure that an

amount equal to 75% of such Excess Amount is so applied.  The Obligor’s Agent shall not be obliged to

apply such amounts in such repayment if the relevant

 

83

 

member of the Group can show to the satisfaction of

the Agent (acting reasonably) that the Net Disposal Proceeds, when aggregated

with the Net Disposal Proceeds received by members of the Group in respect of

disposals falling within paragraph (n) of the definition of Permitted Disposals

made in the same calendar year, does not exceed EUR10,000,000 or its

equivalent.

 

(c)                                      In the case of sub-clause (ii) of paragraph (e) of the definition of

Permitted Disposals in Clause 1.1 (Definitions), the Obligor’s Agent shall

ensure that an amount equal to the Net Disposal Proceeds referred to therein is,

within 5 Business Days of the relevant member of the Group receiving such Net

Disposal Proceeds, deposited in a Prepayment Escrow Account and the relevant

member of the Group or the Obligor’s Agent shall be entitled, during the 180

or, as appropriate, 360 day period, to withdraw (or, as the case may be,

require the Obligor in whose name such Prepayment Escrow Account is held to

withdraw) sums from such account only to the extent that it certifies to the

Agent (providing any supporting evidence reasonably required by the Agent) that

such sums will be reinvested or applied in accordance with the provisions of

sub-clause (A) or (B)  of paragraph

(e)(ii) of the definition of Permitted Disposals in Clause 1.1 (Definitions).

 

(d)                                     Any amounts not reinvested as specified in sub-clause (A) or (B) of

paragraph (e)(ii) of the definition of Permitted Disposals in Clause 1.1 (Definitions)

during the 180 or, as appropriate, 360 day period specified therein shall

(subject to the provisions of Clause 9.9 (Prepayment Escrow Accounts)) thereafter be

promptly applied in repayment of the outstanding Loans in accordance with

Clause 9.8 (Application

of Prepayments).

 

(e)                                      If at the time a prepayment (the “Relevant

Prepayment”) is due to be made under this Clause 9.5 as a result of

any disposal there is an amount which has been prepaid pursuant to Clause

9.11(e)(ii) (Voluntary prepayment of Term

Facility Loans) which has not been used to satisfy obligations to

make a prepayment under this Clause 9.5 already (the “Relevant Amount”) then such Relevant Amount

(or, if the Relevant Amount is greater than the amount of the Relevant

Prepayment, a part of the Relevant Amount equal to the amount of such Relevant

Prepayment) shall be treated as having satisfied (to the extent of the Relevant

Amount or such part thereof) the obligations of the Obligor’s Agent to procure

the making of the Relevant Prepayment in regard to that disposal.  For the avoidance of any doubt, a Relevant

Amount (or part thereof) shall only be so treated once (so that there is no

double counting of a Relevant Amount or any part thereof).

 

9.6                           Insurance

Proceeds

(a)                                      Subject to Clause 9.9 (Prepayment Escrow Accounts), the Obligor’s

Agent shall ensure that an amount equal to the Insurance Proceeds received by

any member of the Group above an aggregate minimum threshold of Insurance

Proceeds of EUR5,000,000 (the “Minimum Insurance Proceeds Threshold”) is,

within 5 Business Days of such member receiving such Insurance Proceeds,

applied in repayment of the outstanding Loans in accordance with Clause 9.8 (Application

of Prepayments) unless the Obligor’s Agent notifies the Agent within

30 days of receipt by the relevant member of the Group of such proceeds that

either:

 

84

 

(i)                        the Insurance

Proceeds received above the Minimum Insurance Proceeds Threshold will be

applied towards the replacement, reinstatement and/or repair of the assets in

respect of which the relevant insurance claim was made (or to refinance or

reimburse any expenditure incurred in the replacement, reinstatement and/or

repair of such assets) within a period of 180 days from the date of receipt of

such Insurance Proceeds by the relevant member of the Group; or

 

(ii)                     binding

commitments will be made by the relevant member of the Group within such 180

day period to so apply the Insurance Proceeds received above the Minimum

Insurance Proceeds Threshold and such proceeds are so applied pursuant to such

commitments within a period of 360 days or, if the proceeds to be so applied

exceed EUR20,000,000 (or its equivalent in other currencies), 720 days from the

date of receipt of such proceeds by such member of the Group.

 

(b)                                     If the Insurance Proceeds are to be applied in such replacement,

reinstatement, repair or to refinance such expenditure as contemplated in

paragraph (a) above, then the Obligor’s Agent shall ensure that an amount equal

to such Insurance Proceeds is, promptly upon such member receiving such

Insurance Proceeds, deposited in a Prepayment Escrow Account.  The relevant member of the Group who

received the Insurance Proceeds (or the Obligor’s Agent) shall be entitled,

during the period of 180 days or, as appropriate, 360 days or, as appropriate,

720 days, from such receipt of the Insurance Proceeds, to withdraw sums from

such Prepayment Escrow Account only to the extent that it certifies to the

Agent (providing any supporting evidence reasonably requested by the Agent)

that such sums will be applied towards the replacement, reinstatement and/or

repair of the assets in respect of which the relevant insurance claim was made

(or to refinance or reimburse any expenditure incurred in the replacement,

reinstatement and/or repair of such assets). 

Any sums not so withdrawn during such 180 or, as appropriate, 360 or, as

appropriate, 720 day, period shall (subject to the provisions of Clause 9.9 (Prepayment

Escrow Accounts)) thereafter be promptly paid to the Agent and

applied in repayment of the outstanding Loans in accordance with Clause 9.8 (Application

of Prepayments).

 

9.7                           Acquisition Recovery Proceeds

(a)                                      Subject to Clause 9.9 (Prepayment Escrow Account), the Obligor’s

Agent shall ensure that an amount equal to the amount of Acquisition Recovery

Proceeds received by any member of the Group (or any shareholder of the Company)

above an aggregate minimum threshold of Acquisition Recovery Proceeds of

EUR5,000,000 (the “Minimum Acquisition Recovery Threshold”),

are within 5 Business Days of the relevant member of the Group (or such other

person) receiving such Acquisition Recovery Proceeds applied in repayment of

the outstanding Loans in accordance with Clause 9.8 (Application of Prepayments) unless

the Obligor’s Agent notifies the Agent within 30 days of receipt by the

relevant member of the Group (or such other relevant person) of such proceeds

that either:

 

(i)                        the

Acquisition Recovery Proceeds received above the Minimum Acquisition Recovery

Threshold will be applied towards an Acquisition Remedy within a

 

85

 

period

of 180 days from the date of receipt of such Acquisition Recovery Proceeds by

the relevant member of the Group; or

 

(ii)                     binding

commitments will be made by the relevant member of the Group within such 180

day period to apply the Acquisition Recovery Proceeds received above the

Minimum Acquisition Recovery Threshold towards an Acquisition Remedy set out in

paragraph (c) of the definition of Acquisition Remedy in Clause 1.1 (Definitions)

and such proceeds are so applied within 360 days from the date of receipt of

such proceeds by such member of the Group or relevant person.

 

(b)                                     If the Acquisition Recovery Proceeds are to be applied towards an

Acquisition Remedy, the Obligor’s Agent shall ensure that an amount equal to

any Acquisition Recovery Proceeds to be applied in accordance with paragraph

(a) above is, promptly upon the relevant member of the Group (or any other

person entitled to receive the same) receiving such Acquisition Recovery

Proceeds, deposited in a Prepayment Escrow Account.  The relevant member of the Group who received the Acquisition

Recovery Proceeds (or the Obligor’s Agent) shall be entitled, during the period

of 180 days or, as appropriate, 360 days from such receipt of such Acquisition

Recovery Proceeds, to withdraw sums from the Prepayment Escrow Account only to

the extent that it certifies to the Agent (providing any supporting evidence

reasonably requested by the Agent) that such sums will be applied towards a

relevant Acquisition Remedy.  Any sums

not so withdrawn during such 180 or, as appropriate, 360 day period shall

(subject to the provisions of Clause 9.9 (Prepayment of Escrow  Account)) thereafter be

promptly paid to the Agent and applied in repayment of the outstanding Loans in

accordance with Clause 9.8 (Application of Prepayments).

 

9.8                           Application of Prepayments

(a)                                      Any amounts paid to the Agent in accordance with Clause 9.4 (Excess Cash

Flow) to 9.7 (Acquisition Recovery  Proceeds) or Clause 9.11(e)

(Voluntary prepayment of Term Facility Loans)

(inclusive) (other than paragraph (a) of Clause 9.5 (Asset Disposals)) to be

applied in prepayment of the Loans shall be applied as follows:

 

(i)                        first, in

repayment of the outstanding Term Facility Loans in the Prepayment Order set

out in paragraphs (a)(i) and (a)(ii) of the definition of Prepayment Order

unless the Obligor’s Agent has, not less than three Business Days prior to the

date on which such  amounts are to be

applied under this Clause 9.8(a), notified the Agent that such amounts shall be

applied in accordance with paragraph (b) of the definition of “Prepayment

Order” in Clause 1.1 (Definitions)

(and a corresponding cancellation of the Term Facilities), such repayment and

cancellation being on a pro rata basis between the Term Facilities (subject to

paragraph (d) below); and

 

(ii)                     secondly, if any

excess remains thereafter, in payment of such excess to the relevant member of

the Group and in cancellation of the remaining Available Facility in respect of

each Revolving Facility by an equal amount (reducing the Commitments of the

Lenders rateably under each such Revolving Facility).

 

86

 

(b)                                     Any amounts paid to the Agent in accordance with paragraph (a) of

Clause 9.5 (Asset Disposals) or

Clause 9.11(e) (Voluntary prepayment of Term

Facility Loans) to be applied in prepayment of the Loans shall be

applied as follows:

 

(i)                        first, in

repayment of the outstanding Term Facility Loans in the Prepayment Order set

out in paragraphs (a)(i) and (a)(ii) of the definition of Prepayment Order

unless the Obligor’s Agent has, not less than three Business Days prior to the

date on which such amounts are to be applied under this Clause 9.8(b), notified

the Agent that such amounts shall be applied in accordance with paragraph (b)

of the definition of “Prepayment Order” in Clause 1.1 (Definitions) (and a corresponding

cancellation of the Term Facilities); and

 

(ii)                     secondly, if any

excess remains thereafter, in payment of such excess to the relevant member of

the Group and in cancellation of the remaining Available Facility in respect of

each Revolving Facility by an equal amount (reducing the Commitments of the

Lenders rateably under each such Revolving Facility).

 

(c)                                      Any amount of the Loans repaid in accordance with this Clause 9.8

may not be reborrowed and any cancellation of the Available Facility in

accordance with this Clause 9.8 shall reduce the Commitment of each Lender

rateably and the amount so cancelled may not be reborrowed.

 

(d)                                     Any Lender which has provided a Term B Euro Facility Loan and/or a

Term B Dollar Facility Loan and/or a Term C Euro Facility Loan and/or a Term C

Dollar Facility Loan, shall have the right to elect that any such Loan shall

not be mandatorily repaid in accordance with this Clause 9.8 or voluntarily

prepaid in accordance with Clause 9.11(e) (Voluntary

prepayment of Term Facility Loans) provided that the amount

which would have been applied towards such mandatory prepayment or voluntary

prepayment can be applied towards the mandatory prepayment of Term Disposal

Facility Loans and/or Term A Facility Loans which remain outstanding.  Any Lenders wishing to make such an election

shall notify the Agent accordingly.  The

sums which would have been applied towards the repayment of such Loans shall be

applied towards the repayment of the remaining Term Facility Loans and (if

appropriate) in payment to the relevant member of the Group (and corresponding

cancellation of the remaining Available Facility in respect of each Revolving

Facility), in each case in accordance with paragraphs (a) or (b) above (as

applicable).

 

9.9                           Prepayment Escrow Accounts

(a)                                      If Clause 9.4 (Excess Cash Flow) to Clause 9.7 (Acquisition

Recovery Proceeds) inclusive would require the Obligor’s Agent to

procure the prepayment of any Loan otherwise than at the end of an Interest

Period relating to that Loan, the Obligor’s Agent can elect (by written notice

to the Agent to be received not later than 10 a.m. three Business Days prior to

the date on which the prepayment obligation would, but for this Clause 9.9,

arise) to credit the amount to be prepaid to an identified Prepayment Escrow

Account on the date on which the prepayment obligation would, but for this

Clause 9.9, arise and to prepay the relevant Loan at the first occurring end of

an Interest Period relative to the Loan to be repaid.  Following any such election and provided the required payment is

made to such Prepayment Escrow Account the

 

87

 

obligation to prepay the relevant Loan will not arise

until the first occurring end of an Interest Period relative to such Loan to be

repaid.

 

(b)                                     The Obligor’s Agent and each Obligor hereby irrevocably authorises

the Agent to withdraw monies from any Prepayment Escrow Account and apply such

monies against prepayments which are due to be made hereunder.

 

(c)                                      The Parties agree that interest which has accrued on any Prepayment

Escrow Account may be withdrawn by the Obligor in whose name that Prepayment

Escrow Account is held in accordance with the mandate relating to such account provided that

no such withdrawal may be made while a Default is continuing.

 

(d)                                     If an amount is paid into a Prepayment Escrow Account pursuant to

the provisions of paragraph (e) (ii) of the definition of Permitted Disposals

in Clause 1.1 (Definitions) then the Obligor’s Agent shall be entitled,

during the 180 or, as appropriate, 360 day period referred to in that paragraph

(e) (ii) in relation to such amount to withdraw (or, as the case may be,

require the Obligor in whose name such Prepayment Escrow Account is held to

withdraw) sums from such account only to the extent that it certifies to the

Agent (providing any supporting evidence reasonably required by the Agent) that

such sums will be used to acquire Comparable Assets as defined in paragraph (e)

of the definition of Permitted Disposals. Any amounts not so applied as

specified above during such 180 or, as appropriate, 360 day period shall be

promptly applied in repayment of the outstanding Loans in accordance with this

Clause 9.9.

 

9.10                     Voluntary

cancellation

(a)                                      The Obligor’s Agent may, if it gives the Agent not less than ten

Business Days’ (or such shorter period as the Majority Lenders may agree) prior

notice, cancel the whole or any part (being a minimum amount of EUR5,000,000)

of an Available Facility.  The Obligor’s

Agent may only cancel any amount of the Available Facility relating to

Revolving Facility II if either:

 

(i)                        the Total

Non-Indemnified Unconsolidated Debt has been or will be permanently reduced by

at least the same amount prior to any such cancellation and for the avoidance

of any doubt the amount of any permanent reduction of Total Non-Indemnified

Unconsolidated Debt may only count once for the purpose of this Clause 9.10; or

 

(ii)                     the Obligor’s

Agent certifies to the Agent (providing any supporting evidence thereof

reasonably requested by the Agent) that after the proposed cancellation the

Available Facility relating to Revolving Facility II will be equal to or

greater than Total Non-Indemnified Unconsolidated Debt.

 

Any

cancellation under this Clause 9.10 shall reduce the Commitments of the Lenders

rateably under that Facility.

 

(b)                                     The Obligor’s Agent may, by giving the Agent not less than ten

Business Days’ prior notice (or such shorter period as the Majority Lenders may

agree) of its intention to do so, procure that the relevant Fronting Bank’s

liability under a Letter of Credit or a

 

88

 

Bank Guarantee is reduced to zero (whereupon the

Obligor’s Agent and the relevant Borrower shall do so).

 

9.11                     Voluntary prepayment of Term Facility Loans

(a)                                      A Borrower to which a Term Facility Loan has been made may, if it

gives the Agent not less than five Business Days’ (or such shorter period as

the Majority Lenders may agree) prior notice, prepay the whole or any part of

any Term Facility Loan (but, if in part, being an amount that reduces the Base

Currency Amount of the relevant Term Facility Loan by a minimum amount of

EUR5,000,000 (in the case of a Term Facility Loan which is not a Dollar

Facility Loan) or by a minimum amount of $5,000,000 (in the case of a Dollar

Facility Loan) or in any other amount to comply with paragraph (d) of this

Clause 9.11).

 

(b)                                     A Term Facility Loan may only be prepaid after the last day of the

relevant Availability Period (or, if earlier, the day on which the applicable

Available Facility is zero) unless paragraph (d) of this Clause 9.11 applies.

 

(c)                                      Subject to paragraph (d) of this Clause 9.11, any prepayment under

this Clause 9.11 shall:

 

(i)                        in respect of

Term Disposal Facility Loans, satisfy the obligations under Clause 7.1 (Repayment of

Term Disposal Facility Loans) on a pro rata basis; and

 

(ii)                     in respect of

Term A Facility Loans, Term B Euro Facility Loans, Term B Dollar Facility

Loans, Term C Euro Facility Loans and Term C Dollar Facility Loans satisfy the

obligations under Clauses 7.2 (Repayment of Term A Facility Loans),

Clause 7.3 (Repayment

of Term B Dollar Facility Loans), Clause 7.4 (Repayment of Term B Euro Facility Loans),

Clause 7.5 (Repayment

of Term C Euro Facility Loans) or, as the case may be, Clause 7.6 (Repayment of

Term C Dollar Facility Loans) in the Prepayment Order set out in

paragraphs (a)(i) and (a)(ii) of the definition of Prepayment Order unless the

Obligor’s Agent has given the Agent not less than five Business Days’ notice

that any amount to be voluntarily prepaid under this Clause 9.11(c)(ii) shall

be applied in accordance with paragraph (b) of the definition of “Prepayment

Order” in Clause 1.1 (Definitions).

 

(d)                                     Any prepayment of the Facilities from EUR 115,000,000 of the

Additional Amount (as defined in the definition of High Yield Notes in Clause

1.1 (Definitions))

shall be made under this Clause 9.11 and shall be applied in prepayment of the

Outstandings as follows:

 

(i)                           EUR 60,000,000 shall be used in prepayment of the Term A Facility

and immediately after such prepayment there shall be deemed to be an immediate

re-borrowing of half of such amount so prepaid resulting in a Term A Facility

Loan (the “Deemed Loan”) deemed to be borrowed by Messer Finance S.A. in

euro of EUR 30,000,000. The Deemed Loan shall have a first Interest Period

ending on 5 June 2001 and EURIBOR in relation to such first Interest Period

shall be deemed to be the same as that which applied to the Term A Facility

Loans so prepaid. The Deemed Loan shall be applied by the Agent immediately

 

89

 

in partial prepayment of the Term Disposal Facility

Loans borrowed by Messer Finance S.A. and to the extent such Term Disposal

Facility Loans are in dollars those Term Disposal Facility Loans shall be

reduced by such prepayment in euro at the Agent’s Spot Rate of Exchange for the

purchase of dollars with euro on the date of such prepayment, with the net

result being that the Term A Facility is permanently prepaid by EUR30,000,000

on the date of the High Yield Proceeds Loan and the Term Disposal Facility is

permanently prepaid by the equivalent in dollars of EUR 30,000,000 on the same

date and the Deemed Loan remains outstanding on such date; and

 

(ii)                        EUR 55,000,000 shall be used in prepayment of the Term C Euro

Facility.

 

(e)                                      The Obligor’s Agent may voluntarily prepay (or procure that members

of the Group prepay):

 

(i)                        an amount on

account of its obligations under Clause 9.4 (Excess

Cash) after the end of a calendar year but prior to the delivery of

the financial statements of the Newco 2 Group in respect of such calendar year;

and

 

(ii)                     an amount on

account of its obligations under Clause 9.5 (Asset

Disposals) prior to the date on which it receives the Net Disposal

Proceeds of any disposals referred to therein,

 

provided that (a)  such amounts are prepaid in accordance

with Clause 9.8 (Application of Prepayments);

and (b) the Obligor’s Agent specifies in the relevant notice of prepayment

whether it is a prepayment for the purposes of paragraph (e)(i) or (e)(ii)

above.

 

9.12                     Voluntary prepayment of Revolving Facility Loans

The Borrower

to which a Revolving Facility Loan has been made may, if it gives the Agent not

less than five Business Days’ (or such shorter period as the Majority Lenders

may agree) prior notice, prepay the whole or any part of a Revolving Facility

Loan (but if in part, being an amount that reduces the Base Currency Amount of

the Revolving Facility Loan by a minimum amount of EUR5,000,000).

 

9.13                     Prepayment

Premium

(a)                                      If, in each case on or before the Prepayment Premium Date:

 

(i)                        the whole or

any part of any outstanding Prepayment Premium Loan becomes immediately due and

payable pursuant to Clause 9.2 (Change of control) or Clause 9.3 (Flotation or

Sale); and/or

 

(ii)                     a Borrower

voluntarily gives the Agent notice, pursuant to Clause 9.11 (Voluntary

prepayment of Term Facility Loans), that it wishes to prepay the

whole or any part of a Prepayment Premium Loan,

 

the provisions

of paragraph (b) below will apply provided that they will not apply to any

voluntary prepayment of a Prepayment Premium Loan made in accordance with

paragraph (d) of Clause 9.11 (Voluntary Prepayment of Term Facility Loans)

to the extent such prepayments are made prior to 90 days after the date hereof.

 

90

 

(b)                                     If all or any part of a Prepayment Premium Loan becomes due and

payable in the circumstances set out in paragraph (a) above:

 

(i)                        an amount

equal to the Prepayment Premium applicable to the amount of such Prepayment

Premium Loan (excluding any amount which the Obligor’s Agent certifies is

prepaid as a result of the provisions of paragraph (a)(ii) above out of the

amount of Net Disposal Proceeds or Insurance Proceeds or Acquisition Recovery

Proceeds which were not required to be used in mandatory prepayment under

Clauses 9.5 (Asset Disposals), 9.6 (Insurance Proceeds) or 9.7 (Acquisition

Recovery Proceeds) respectively) which becomes due and payable (the

“Applicable

Prepayment Premium”) will become immediately due and payable by the

Borrower owing such a Prepayment Premium Loan;

 

(ii)                     each Applicable

Prepayment Premium shall be paid to the Agent at the same time as the

Prepayment Premium Loan (or any part thereof) to which it relates is repaid to

the Agent; and

 

(iii)                  the Agent shall

distribute each Applicable Prepayment Premium between the Lenders rateably

according to their participations in each Loan to which that Applicable

Prepayment Premium relates.

 

9.14                     Right of repayment and cancellation in relation to a

single Lender or Fronting Bank

(a)                                      If:

 

(i)                        any sum

payable to any Lender or Fronting Bank by an Obligor is required to be

increased under paragraph (c) of Clause 14.2 (Tax gross-up); or

 

(ii)                     any Lender or

Fronting Bank claims indemnification from the Company under Clause 14.3 (Tax

indemnity) or Clause 15.1 (Increased costs),

 

the

Obligor’s Agent may, whilst the circumstance giving rise to the requirement or

indemnification continues, give the Agent notice:

 

(A)            (if

such circumstance relates to a Lender) of cancellation of the Commitment of

that Lender and its intention to procure the repayment of that Lender’s

participation in the Loans; or

 

(B)              (if

such circumstance relates to a Fronting Bank) of cancellation of or of the

Obligor’s Agent’s intention to procure that Cash Collateral is provided  in respect of that Fronting Bank’s Letters

of Credit and Bank Guarantees.

 

(b)                                     On receipt of a notice referred to in paragraph (a) above, the

Commitment of that Lender shall immediately be reduced to zero.

 

(c)                                      On the last day of each Interest Period or, as the case may be, Term

which ends after the Obligor’s Agent has given notice under paragraph (a) above

(or, if earlier, the date specified by the Obligor’s Agent in that notice), the

Borrowers shall:

 

(A)            (if

the circumstance relates to a Lender) repay that Lender’s participation in the

Loans;

 

91

 

(B)              (if

the circumstance relates to a Lender) procure either that such Lender’s L/C

Proportion of each relevant Letter of Credit be reduced to zero (by reduction

of the amount of that Letter of Credit in an amount equal to that Lender’s L/C

Proportion) or that Cash Collateral be provided to the Agent in an amount equal

to such Lender’s L/C Proportion of that Letter of Credit);

 

(C)              (if

the circumstance relates to a Lender) procure either that such Lender’s

Guarantee Proportion of each relevant Bank Guarantee be reduced to zero (by

reduction of the amount of that Bank Guarantee in an amount equal to that

Lender’s Guarantee Proportion) or that Cash Collateral be provided to the Agent

in an amount equal to such Lender’s Guarantee Proportion of that Bank

Guarantee); and

 

(D)             (if

the circumstance relates to a Fronting Bank) procure that the relevant Fronting

Bank’s liability under any Letters of Credit and Bank Guarantees issued by it

shall either be reduced to zero or otherwise secured by the relevant Borrower

providing Cash Collateral in an amount equal to that Fronting Bank’s maximum

actual and contingent liabilities under those Letters of Credit and Bank

Guarantees.

 

9.15                     Restrictions

(a)                                      Any notice of cancellation or prepayment given by any Party under

this Clause 9 shall be irrevocable and, unless a contrary indication appears in

this Agreement, shall specify the date or dates upon which the relevant

cancellation or prepayment is to be made and the amount of that cancellation or

prepayment.

 

(b)                                     Any prepayment under this Agreement shall be made together with

accrued interest on the amount prepaid and, subject to any Break Costs, without

premium or penalty save as provided in Clause 9.13 (Prepayment Premium).

 

(c)                                      No Borrower may reborrow any part of a Term Facility which is

prepaid.

 

(d)                                     Unless a contrary indication appears in this Agreement, any part of

a Revolving Facility which is prepaid may be reborrowed in accordance with the

terms of this Agreement.

 

(e)                                      The Borrowers shall not repay or prepay all or any part of the

Loans, reduce the liabilities of the Lenders or Fronting Banks or provide Cash

Collateral in respect of Letters of Credit or Bank Guarantees or cancel all or

any part of the Commitments except at the times and in the manner expressly

provided for in this Agreement.

 

(f)                                        No amount of the Total Commitments cancelled under this Agreement

may be subsequently reinstated.

 

(g)                                     If the Agent receives a notice under this Clause 9 it shall promptly

forward a copy of that notice to either the Obligor’s Agent or the affected

Lender, as appropriate.

 

9.16                     Automatic

cancellation

(a)                                      If the Closing Date does not occur by 30 June 2001 then the

Facilities shall be automatically cancelled on that date.

 

92

 

(b)                                     If

the Fee Letters relating to the fees referred to in Clauses 13.5 (Arrangement

fee) and 13.6 (Agency Fee) and 13.7 (Security Trustee fee) are

not all executed, dated and effective within two Business Days of the date of

this Agreement then the Facilities shall be automatically cancelled at 11.59pm

on second Business Day to occur after the date of this Agreement.

 

(c)                                      If

the certificate referred to in Clause 26.11 (MGG Accession) is not

delivered to the Agent by 11.59 p.m. on 2 May 2001, then the Facilities shall

be automatically cancelled at 11.59 p.m. on 2 May 2001.

 

93

 

SECTION 5

 

COSTS OF UTILISATION

10.                           INTEREST

 

10.1                     Calculation

of interest

The rate of

interest on each Loan for each Interest Period is the percentage rate per annum

which is the aggregate of the applicable:

 

(a)                                      Margin;

 

(b)                                     LIBOR

or, in relation to any Loan in euro, EURIBOR; and

 

(c)                                      Mandatory

Cost, if any.

 

10.2                     Margin

ratchets

(a)                                      The

Margin shall, in respect of all Term A Facility Loans and all Revolving

Facility Loans:

 

(i)                        from the date

hereof until the later of (a) the date on which both the Term Disposal Facility

has been repaid in full and the conditions specified in Clause 23.38 (Total Debt

Relief Amount) have been met and (b) the date falling 12 months

after the date hereof, be the Initial Margin for the relevant Facility; and

 

(ii)                     at any other

time, subject to Clause 10.4 (Default Margin) and in accordance with the

provisions of Clause 10.3 (Margin Changes), be the Initial Margin for

the relevant Facility reduced by the amount determined by the Leverage Ratio

for the then most recently ended Relevant Period in respect of which financial

statements have been delivered to the Agent pursuant to paragraph (a), (b) or

(d) of Clause 21.1 (Financial Statements) in accordance with

the table set out below provided that if, but for this proviso, the

applicable Margin would reduce by more than 0.25 at any one time then it shall

only reduce by 0.25.

 

	

  Leverage

  Ratio

  	

   

  	

  Amount

  of Reduction from 

  Initial Margin

  	

   

  
	

  Equal to or greater than 3.5:1

  	

   

  	

  0

  	

   

  
	

  Less than 3.5:1 but equal to or greater than 3.0:1

  	

   

  	

  0.25

  	

   

  
	

  Less than 3.0:1 but equal to or greater than 2.5:1

  	

   

  	

  0.50

  	

   

  
	

  Less than 2.5:1 but equal to or greater than 2.0:1

  	

   

  	

  0.75

  	

   

  
	

  Less than 2.0:1

  	

   

  	

  1.00

  	

   

  

 

(b)                                     The

Margin shall, in respect of all Term B Euro Facility Loans and all Term B

Dollar Facility Loans:

 

(i)                        from the date

hereof until the later of the (a) date on which both the Term Disposal Facility

has been repaid in full and the conditions specified in Clause

 

94

 

23.38 (Total Debt Relief Amount) have been met and (b) the date

falling 12 months after the date hereof, be the Initial Margin for the Term B

Facilities; and

 

(ii)                     subject to Clause

10.4 (Default

Margin) and in accordance with the provisions of Clause 10.3 (Margin

Changes), at any time when the Leverage Ratio for the then most

recently ended Relevant Period in respect of which financial statements have

been delivered to the Agent pursuant to paragraph (a), (b) or (d) of Clause

21.1 (Financial

Statements) is less than 3:1, be the Initial Margin for that

Facility less 0.25.

 

10.3                     Margin

changes

Any reduction

or increase to the Margin provided for by Clause 10.2 (Margin ratchets) shall take

effect in relation to all future Loans with effect from the date the Agent

receives the Compliance Certificate (together with the accompanying

consolidated financial statements of Newco 2 and, if applicable, the relevant

Auditor’s Report) in accordance with Clause 21.2 (Compliance Certificates) for

its most recent Financial Quarter.  For

these purposes, if there is to be a reduction or increase in the Margin

provided for by Clause 10.2 (Margin Ratchets) and there are any

existing Term A Facility Loans or Term B Euro Facility Loans outstanding at

such time, then at the last day of each then current Interest Period relating

to each such Term A Facility Loan or Term B Euro Facility Loan (as applicable)

there shall be deemed to be a repayment of such Term A Facility Loan or Term B

Euro Facility Loan (as applicable) and an immediate re-borrowing of a Term A

Facility Loan or Term B Euro Facility Loan (as applicable) in the same amount

and same currency as the Term A Facility Loan or Term B Euro Facility Loan (as

applicable) deemed repaid and any change in the Margin applicable to each such

new Term A Facility Loan or Term B Euro Facility Loan (as applicable) shall

take effect in relation to such new Term A Facility Loan or Term B Euro

Facility Loan (as applicable).

 

10.4                     Default

Margin

No reduction

in the Margin provided for by Clause 10.2 (Margin Ratchets) will be implemented from

the date (a “No Ratchet Date”) determined by the Agent as being the date on

which an Event of Default has occurred or come into existence until the date (a

“Ratchet

Date”) specified by the Agent as being the date on which it has been

demonstrated to its satisfaction that such Event of Default is no longer

continuing.  The Margin applicable to

any Loan outstanding during the period from any No Ratchet Date until the corresponding

Ratchet Date shall be the Initial Margin. 

The Agent shall promptly notify the Lenders and the Obligor’s Agent of

any determination that an Event of Default has occurred or exists or, as the

case may be, that it has been demonstrated to its reasonable satisfaction that

such is no longer continuing.

 

10.5                     Payment

of interest

The Borrower

to which a Loan has been made shall pay accrued interest on that Loan on the

last day of each Interest Period (and, if the Interest Period is longer than

six Months, on the dates falling at six Monthly intervals after the first day

of the Interest Period).

 

10.6                     Default

interest

(a)                                      If

an Obligor fails to pay any amount payable by it under a Finance Document on

its due date, interest shall accrue on the overdue amount from the due date up

to the date

 

95

 

of actual payment (both before and after judgment) at a rate one per

cent higher than the rate which would have been payable if the overdue amount

had, during the period of non-payment, constituted a Loan in the currency of

the overdue amount for successive Interest Periods, each of a duration selected

by the Agent (acting reasonably).  Any

interest accruing under this Clause 10.6 shall be immediately payable by the

relevant Obligor on demand by the Agent.

 

(b)                                     Default

interest (if unpaid) arising on an overdue amount will be compounded with the

overdue amount at the end of each Interest Period applicable to that overdue

amount but will remain immediately due and payable.

 

10.7                     Notification of rates of interest

The Agent

shall promptly notify the Lenders and the relevant Borrower of the

determination of a rate of interest under this Agreement.

 

11.                           INTEREST

PERIODS AND TERMS

 

11.1                     Selection of Interest Periods and Terms

(a)                                      A

Borrower (or the Obligor’s Agent on behalf of a Borrower) may select:

 

(i)                        an Interest

Period for a Loan in the Utilisation Request for that Loan or (if the Loan has

already been borrowed) in a Selection Notice; or

 

(ii)                     a Term for a

Letter of Credit or Bank Guarantee in the Utilisation Request for that Letter

of Credit or, as the case may be, Bank Guarantee.

 

(b)                                     Each

Selection Notice for a Term Facility Loan is irrevocable and must be delivered

to the Agent by the Borrower (or the Obligor’s Agent on behalf of a Borrower)

to which that Term Facility Loan was made not later than the Specified Time.

 

(c)                                      If

a Borrower (or the Obligor’s Agent) fails to deliver a Selection Notice to the

Agent in accordance with paragraph (b) above, the relevant Interest Period

will, subject to Clause 11.2 (Changes to Interest Periods) and paragraph

(j) of this Clause 11.1, be one Month.

 

(d)                                     Subject

to this Clause 11, a Borrower (or the Obligor’s Agent) may select an Interest

Period of one, two, three or six Months or any other period agreed between the

Obligor’s Agent and the Agent (acting on the instructions of all the

Lenders).  In addition a Borrower (or

the Obligor’s Agent on its behalf) may select (in relation to a Term Facility)

an Interest Period of less than one Month, if necessary to ensure that there

are Loans in respect of that Term Facility (with an aggregate Base Currency

Amount equal to or greater than the relevant Repayment Instalment) which have

an Interest Period ending on a Term Disposal Facility Repayment Date, Term A

Facility Repayment Date, Term B Facility Repayment Date or, as the case may be,

Term C Facility Repayment Date for the relevant Borrower(s) to make such

Repayment Instalment due on that date.

 

(e)                                      A

Borrower (or the Obligor’s Agent on behalf of a Borrower) may select a Term for

a Letter of Credit or a Bank Guarantee of a period of up to twelve months,

ending on or before the Termination Date for the relevant Revolving Facility.

 

96

 

(f)                                        An Interest Period for a Loan shall not extend beyond the

Termination Date applicable to its Facility. 

A Term for a Letter of Credit or a Bank Guarantee shall not extend

beyond the Termination Date for the relevant Revolving Facility.

 

(g)                                     Each

Interest Period for a Term Facility Loan shall start on the Utilisation Date or

(if already made) on the last day of its preceding Interest Period.

 

(h)                                     A

Revolving Facility Loan has one Interest Period only, which shall start on the

Utilisation Date.  A Term for a Letter

of Credit or a Bank Guarantee shall start on the Utilisation Date.

 

(i)                                         Prior to the last Syndication Date and subject to paragraph (j)

below, Interest Periods shall be one month or such other period as specified by

the Agent (acting reasonably) and any Interest Period which would otherwise end

during the month preceding or extend beyond a Syndication Date shall end on

that Syndication Date. Consequently (for the avoidance of doubt) no Selection

Notices are required to be delivered by any Borrower prior to the last

Syndication Date.

 

(j)                                         The first Interest Period for each Loan made on the Closing Date

shall be three Business Days and the first Interest Period for the Deemed Loan

referred to in paragraph (d) of Clause 9.11 (Voluntary prepayment of Term Facility

Loans) shall end on 5 June 2001.

 

11.2                     Changes to Interest Periods

(a)                                      Prior

to determining the interest rate for a Term Facility Loan, the Agent may

shorten an Interest Period for any Term Facility Loan to ensure there are

sufficient Loans for the relevant Term Facility with Interest Periods ending on

a Term Disposal Facility Repayment Date, Term A Facility Repayment Date, Term B

Facility Repayment Date or, as the case may be, Term C Facility Repayment Date

for the relevant Borrower(s) to make the Repayment Instalment due on that date.

 

(b)                                     If

the Agent makes any of the changes to an Interest Period referred to in this

Clause 11.2, it shall promptly notify the Obligor’s Agent and the Lenders.

 

11.3                     Non-Business

Days

If an Interest

Period or Term would otherwise end on a day which is not a Business Day, that

Interest Period or, as the case may be, Term will instead end on the next

Business Day in that calendar month (if there is one) or the preceding Business

Day (if there is not unless such Interest Period is for one day, in which case

it shall be the immediately succeeding Business Day).

 

11.4                     Consolidation and division of Term Facility Loans

(a)                                      Subject

to paragraph (b) below, if two or more Interest Periods:

 

(i)                        relate to

Loans under the same Term Facility and in the same currency; and

 

(ii)                     end on the same

date; and

 

(iii)                  are made to the same

Borrower

 

97

 

those Term

Facility Loans will, unless that Borrower (or the Obligor’s Agent on its

behalf) specifies to the contrary in the Selection Notice for the next Interest

Period, be consolidated into, and treated as, a single Loan under the relevant

Term Facility on the last day of the Interest Period.

 

(b)                                     Subject

to Clause 4.4 (Maximum number of Loans, Letters of Credit or Bank Guarantee)

and Clause 5.3 (Currency and amount), if a Borrower (or the Obligor’s Agent

on its behalf) requests in a Selection Notice that a Term Facility Loan be

divided into two or more Loans under the relevant Term Facility, that Term

Facility Loan will, on the last day of its Interest Period, be so divided with

Base Currency Amounts specified in that Selection Notice, being an aggregate

Base Currency Amount equal to the Base Currency Amount of the Term Facility

Loan immediately before its division.

 

(c)                                      A

Term Facility Loan shall be divided into a number of separate Loans with the

same initial Interest Periods as the Term Facility Loan immediately prior to

such division on the Debtco Exit Date if the provisions of Clause 26.8 (Transfers on

Debtco Exit Date) so require.

 

12.                           CHANGES TO THE CALCULATION OF INTEREST

 

12.1                     Absence

of quotations

Subject to

Clause 12.2 (Market disruption), if LIBOR or, if applicable, EURIBOR is

to be determined by reference to the Reference Banks but a Reference Bank does

not supply a quotation by the Specified Time on the Quotation Day, the

applicable LIBOR or EURIBOR shall be determined on the basis of the quotations

of the remaining Reference Banks.

 

12.2                     Market

disruption

(a)                                      If

a Market Disruption Event (as defined in paragraph (b) below) occurs in

relation to a Loan for any Interest Period, then the rate of interest on each

Lender’s share of that Loan for the Interest Period shall be the rate per annum

which is the sum of:

 

(i)                        the Margin;

 

(ii)                     the rate notified

to the Agent by that Lender (acting in good faith) as soon as practicable and

in any event before interest is due to be paid in respect of that Interest

Period, to be that which expresses as a percentage rate per annum the cost to

that Lender of funding its participation in that Loan from whatever source it

may reasonably select; and

 

(iii)                  the Mandatory Cost,

if any, applicable to that Lender’s participation in the Loan.

 

(b)                                     In

this Agreement “Market Disruption Event” means:

 

(i)                        at or about

noon on the Quotation Day for the relevant Interest Period the Screen Rate is

not available and none or only one of the Reference Banks supplies a rate to

the Agent to determine LIBOR or, if applicable, EURIBOR for the relevant

currency and Interest Period; or

 

(ii)                     before close of

business in London on the Quotation Day for the relevant Interest Period, the

Agent receives notifications from a Lender or Lenders 

 

98

 

(whose participations in a Loan exceed 50 per cent. of that Loan) that

the cost to it of obtaining matching deposits in the Relevant Interbank Market

would be in excess of LIBOR or, if applicable, EURIBOR.

 

12.3                     Alternative basis of interest or funding

(a)                                      If

a Market Disruption Event occurs and the Agent or the Obligor’s Agent so

requires, the Agent and the Obligor’s Agent shall enter into negotiations (for

a period of not more than thirty days) with a view to agreeing a substitute

basis for determining the rate of interest.

 

(b)                                     Any

alternative basis agreed pursuant to paragraph (a) above shall, with the prior

consent of all the Lenders and the Obligor’s Agent, be binding on all Parties

but when the Market Disruption Event ceases to apply any such alternative basis

shall cease to apply and the other provisions of this Agreement relating to

determining the rate of interest shall apply once more.

 

12.4                     Break

Costs

(a)                                      Each

Borrower shall, within three Business Days of demand by a Finance Party, pay to

that Finance Party its Break Costs attributable to all or any part of a Loan or

Unpaid Sum being paid by that Borrower on a day other than the last day of an

Interest Period for that Loan or Unpaid Sum.

 

(b)                                     Each

Lender shall, as soon as reasonably practicable after a demand by the Agent,

provide a certificate confirming the amount of its Break Costs for any Interest

Period in which they accrue.

 

13.                           FEES

 

13.1                     Commitment

fee

(a)                                      The

Obligor’s Agent shall, in respect of each Facility and for the period from the

date of this Agreement until (but excluding) the earlier to occur of 20 April

2001 and the Closing Date, pay to the Agent (for the account of each Lender) a

commitment fee in the relevant Base Currency computed at a rate of 0.375% per

annum on each Lender’s Available Commitment under each Facility.

 

(b)                                     The

accrued commitment fees under paragraph (a) above will only become payable on

the earlier to occur of 20 April 2001 and the Closing Date (the “First

Commitment Fee Date”).  If

the Obligor’s Agent cancels the Facilities in full prior to the First

Commitment Fee Date no commitment fees will be payable under this Agreement.

 

(c)                                      The

Obligor’s Agent shall, in respect of each Facility, from the earlier to occur

of the Closing Date and 20 April 2001 (the “Relevant Date”) pay to the

Agent (for the account of each Lender) a commitment fee in the relevant Base

Currency computed at a rate of 0.75% per annum on each Lender’s Available

Commitment under each Facility for the Availability Period applicable to that

Facility (commencing from the Relevant Date).

 

(d)                                     The

accrued commitment fees under paragraph (c) above are payable on the last day

of each successive period of three Months which ends during the relevant

Availability 

 

99

 

Period (commencing from the earlier to occur of the Closing Date and 20

April 2001), on the last day of the relevant Availability Period and on the

date the relevant Lender’s Commitment is cancelled.

 

13.2                     Letter of Credit commission

(a)                                      Each

Borrower shall, in respect of each Letter of Credit issued at its request, pay

to the Agent (for the account of each Lender) (for distribution in proportion

to each Lender’s L/C Proportion of that Letter of Credit) a letter of credit

commission in the relevant Base Currency at the L/C Commission Rate on the

maximum actual and contingent liabilities of the Fronting Bank under the

relevant Letter of Credit.

 

(b)                                     The

accrued letter of credit commission shall be paid on the last day of each

successive period of three Months which ends during the Term of the relevant

Letter of Credit and on the relevant Expiry Date.

 

13.3                     Bank Guarantee commission

(a)                                      Each

Borrower shall, in respect of each Bank Guarantee issued at its request, pay to

the Agent (for the account of each Lender) (for distribution in proportion to

each Lender’s Guarantee Proportion of that Bank Guarantee) a bank guarantee

commission in the relevant Base Currency at the Guarantee Commission Rate on

the maximum actual and contingent liabilities of the Fronting Bank under the

relevant Bank Guarantee.

 

(b)                                     The

accrued bank guarantee commission shall be paid on the last day of each

successive period of three Months which ends during the Term of the relevant

Bank Guarantee and on the relevant Expiry Date.

 

13.4                     Fronting

Bank Fee

Each Borrower

shall, in respect of each Letter of Credit and Bank Guarantee issued at its

request, pay to the relevant Fronting Bank a fee in the relevant Base Currency

in the amounts and at the times agreed between such Fronting Bank and the

Obligor’s Agent in a Fee Letter.

 

13.5                     Arrangement

fee

The Obligor’s

Agent shall procure that MGG pays to the relevant Arrangers an arrangement fee

in the amount and at the times agreed in a Fee Letter.

 

13.6                     Agency

fee

The Obligor’s

Agent shall procure that MGG pays to the Agent (for its own account) an agency

fee in the amount and at the times agreed in a Fee Letter.

 

13.7                     Security

Trustee fee

The Obligor’s

Agent shall procure that MGG pays to the Security Trustee (for its own account)

a security trustee fee in the amount and at the times agreed in a Fee Letter.

 

100

 

SECTION 6

 

ADDITIONAL PAYMENT

OBLIGATIONS

 

14.                           TAX

GROSS UP AND INDEMNITIES

 

14.1                     Definitions

(a)                                      In

this Clause 14:

 

“Protected

Party” means a Finance Party which is or will be, for or on account

of Tax, subject to any liability or required to make any payment in relation to

a sum received or receivable (or any sum deemed for the purposes of Tax to be

received or receivable) under a Finance Document.

 

“Qualifying

Lender” means:

 

(i)                        in respect of

a payment made by an Obligor incorporated in the United Kingdom, a Lender which

is:

 

(A)            within

the charge to United Kingdom corporation tax as respects that payment and that

is a Lender in respect of an advance made by a person that was a bank (as

defined for the purpose of section 349 of the Taxes Act in section 840A of the

Taxes Act) at the time that advance was made; or

 

(B)              a

Treaty Lender with respect to the United Kingdom;

 

(ii)                     in respect of

payment made by an Obligor which is incorporated in Germany, means any Lender;

 

(iii)                  in respect of a

payment made by an Obligor which is incorporated in the United States of

America or any state thereof, a Lender which is:

 

(A)            created

or organised under the laws of the United States of America or of any state

thereof; or

 

(B)              a

Treaty Lender with respect to the United States of America; or

 

(C)              entitled

to receive payments under this Agreement without deduction or withholding of

any United States federal income Taxes as a result of such payments being

effectively connected with the conduct by such Lender of a trade or business

within the United States, provided such Lender timely has delivered to the

Agent for transmission to the Obligor making such payment two original copies

of either (1) Internal Revenue Service Form W-8ECI (or any successor form)

certifying that the payments made pursuant to the Finance Documents are

effectively connected with the conduct by that Lender of a trade or business

within the United States or (2) Internal Revenue Service Form W-8BEN (or any

successor form) claiming exemption from withholding in respect of payments made

pursuant to the Finance Documents under the portfolio interest exemption or (3)

such other applicable form prescribed by the IRS certifying as to such Lender’s

entitlement to exemption from United States withholding tax 

 

101

 

with respect to all payments to be made to such Lender

under the Finance Documents; and

 

(iv)                 in respect of a

payment by an Obligor not incorporated in the United Kingdom, the United States

of America or Germany, any Lender.

 

“Tax Credit”

means a credit against, relief or remission for, or repayment of, any Tax.

 

“Tax

Deduction” means a deduction or withholding for or on account of Tax

from a payment under a Finance Document.

 

“Tax Payment”

means an increased payment made by an Obligor to a Finance Party under Clause

14.2 (Tax

gross-up) or a payment under Clause 14.3 (Tax indemnity).

 

“Treaty

Lender” means, in respect of a jurisdiction, a Lender entitled under

the provisions of a double taxation treaty to receive payments of interest from

a person resident in such jurisdiction without a Tax Deduction (subject to the

completion of any necessary procedural formalities).

 

(b)                                     In

this Clause 14 a reference to “determines” or “determined” means a

determination made in the absolute discretion of the person making the

determination.

 

14.2                     Tax

gross-up

(a)                                      Each

Obligor shall make all payments to be made by it without any Tax Deduction,

unless a Tax Deduction is required by law.

 

(b)                                     The

Obligor’s Agent or a Lender shall promptly upon becoming aware that an Obligor

must make a Tax Deduction (or that there is any change in the rate or the basis

of a Tax Deduction) notify the Agent accordingly.  If the Agent receives such notification from a Lender it shall

notify the Obligor’s Agent and that Obligor.

 

(c)                                      If

a Tax Deduction is required by law to be made by an Obligor in one of the

circumstances set out in paragraph (d) below, the amount of the payment due

from that Obligor shall be increased to an amount which (after making any Tax

Deduction) leaves an amount equal to the payment which would have been due if

no Tax Deduction had been required.

 

(d)                                     The

circumstances referred to in paragraph (c) above are where a person entitled to

the payment:

 

(i)                        is the Agent

or an Arranger (on its own behalf);  or

 

(ii)                     is a Qualifying

Lender as respects such payment, unless that Qualifying Lender is a Treaty

Lender and the Obligor making the payment is able to demonstrate the Tax

Deduction is required to be made as a result of the failure of that Qualifying

Lender to comply with paragraph (g) below; or

 

(iii)                  is not or has ceased

to be a Qualifying Lender to the extent that this altered status results from

any change after the date of this Agreement in (or in the interpretation,

administration, or application of) any law or double taxation

 

102

 

agreement or any published practice or published concession of any

relevant taxing authority.

 

(e)                                      If

an Obligor is required to make a Tax Deduction, that Obligor shall make that

Tax Deduction and any payment required in connection with that Tax Deduction

within the time allowed and in the minimum amount required by law.

 

(f)                                        Within thirty days of making either a Tax Deduction or any payment

required in connection with that Tax Deduction, the Obligor making that Tax

Deduction shall deliver to the Agent for the Finance Party entitled to the

payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction

has been made or (as applicable) any appropriate payment paid to the relevant

taxing authority.

 

(g)                                     A

Treaty Lender and each Obligor which makes a payment to which that Treaty

Lender is entitled shall co-operate in completing any procedural formalities

necessary for that Obligor to obtain authorisation to make that payment without

a Tax Deduction.

 

14.3                     Tax

indemnity

(a)                                      The

Obligor’s Agent shall (within ten Business Days of demand by the Agent) pay to

a Protected Party an amount equal to the loss, liability or cost which that

Protected Party determines will be or has been (directly or indirectly)

suffered by that Protected Party for or on account of Tax in relation to any

sum received or receivable (or any sum deemed for the purposes of Tax to be received

or receivable) under a Finance Document.

 

(b)                                     Paragraph

(a) above shall not apply with respect to any Tax assessed on a Protected

Party:

 

(i)                        under the law

of the jurisdiction in which that Protected Party is incorporated or, if

different, the jurisdiction (or jurisdictions) in which that Protected Party is

treated as resident for tax purposes; or

 

(ii)                     under the law of

the jurisdiction in which that Protected Party’s Facility Office is located in

respect of amounts received or receivable in that jurisdiction,

 

if that Tax is

imposed on or calculated by reference to the net income received or receivable

(but not any sum deemed to be received or receivable) by that Protected Party.

 

(c)                                      A

Protected Party making, or intending to make a claim pursuant to paragraph (a)

above shall promptly notify the Agent of the event which will give, or has

given, rise to the claim, following which the Agent shall notify the Obligor’s

Agent.

 

(d)                                     A

Protected Party shall, on receiving a payment from an Obligor under this Clause

14.3, notify the Agent.

 

103

 

14.4                     Tax

Credit

If an Obligor

makes a Tax Payment and the relevant Finance Party determines in good faith

that:

 

(a)                                      a

Tax Credit is attributable to that Tax Payment; and

 

(b)                                     that

Finance Party has obtained, utilised and retained that Tax Credit,

 

the Finance

Party shall pay an amount to the Obligor which that Finance Party determines

will leave it (after that payment) in the same after-Tax position as it would

have been in had the Tax Payment not been made by the Obligor.

 

14.5                     Stamp

taxes

The Obligor’s

Agent shall pay and, within ten Business Days of demand, indemnify each Finance

Party against any cost, loss or liability that Finance Party incurs in relation

to all stamp duty, registration and other similar Taxes payable in respect of

any Finance Document.

 

14.6                     Value

added tax

(a)                                      All

consideration payable under a Finance Document by an Obligor to a Finance Party

shall be deemed to be exclusive of any VAT. 

If VAT is chargeable, the Obligor shall pay to the Finance Party (in

addition to and at the same time as paying the consideration) an amount equal

to the amount of the VAT.

 

(b)                                     Where

a Finance Document requires an Obligor to reimburse a Finance Party for any

costs or expenses, that Obligor shall also at the same time pay and indemnify

that Finance Party against all VAT incurred by that Finance Party in respect of

the costs or expenses save to the extent that that Finance Party is entitled to

repayment or credit in respect of the VAT.

 

15.                           INCREASED

COSTS

 

15.1                     Increased

costs

(a)                                      Subject

to Clause 15.3 (Exceptions) the Obligor’s Agent shall, within ten Business

Days of a demand by the Agent, pay for the account of a Finance Party the

amount of any Increased Costs incurred by that Finance Party or any of its

Affiliates as a result of (i) the introduction of or any change in (or in the

interpretation or application of) any law or regulation or (ii) compliance with

any law or regulation made after the date of this Agreement.

 

(b)                                     In

this Agreement “Increased Costs” means:

 

(i)                        a reduction in

the rate of return from the Facilities or on a Finance Party’s (or its

Affiliate’s) overall capital;

 

(ii)                     an additional or

increased cost; or

 

(iii)                  a reduction of any

amount due and payable under any Finance Document,

 

which is

incurred or suffered by a Finance Party or any of its Affiliates to the extent

that it is attributable to that Finance Party having entered into its

Commitment or an

 

104

 

Ancillary

Commitment or funding or performing its obligations under any Finance Document,

Letter of Credit or Bank Guarantee.

 

15.2                     Increased

cost claims

(a)                                      A

Finance Party intending to make a claim pursuant to Clause 15.1 (Increased

costs) shall notify the Agent of the event giving rise to the claim

as soon as reasonably practicable after its relevant Facility Office has become

aware of such event giving rise to such claim, following which the Agent shall

promptly notify the Obligor’s Agent.

 

(b)                                     Each

Finance Party shall, as soon as practicable after a demand by the Agent,

provide a certificate confirming (in reasonable detail) the amount of its

Increased Costs.

 

15.3                     Exceptions

(a)                                      Clause

15.1 (Increased

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

 

(i)                        attributable

to a Tax Deduction required by law to be made by an Obligor;

 

(ii)       compensated

for by Clause 14.3 (Tax indemnity) (or would have been compensated for under

Clause 14.3 (Tax indemnity) but was not so compensated solely because one of

the exclusions in paragraph (b) of Clause 14.3 (Tax indemnity) applied);

 

(iii)                  compensated for by

the payment of the Mandatory Cost; or

 

(iv)      attributable

to the wilful or grossly negligent breach by the relevant Finance Party or its

Affiliates of any law or regulation.

 

(b)                                     In

this Clause 15.3, a reference to a “Tax Deduction” has the same meaning given

to the term in Clause 14.1 (Definitions).

 

16.                           OTHER

INDEMNITIES

 

16.1                     Currency

indemnity

(a)                                      If

any sum due from the Obligor’s Agent or an Obligor under the Finance Documents

(a “Sum”),

or any order, judgment or award given or made in relation to a Sum, has to be

converted from the currency (the “First Currency”) in which that Sum is

payable into another currency (the “Second Currency”) for the purpose of:

 

(i)                        making or

filing a claim or proof against the Obligor’s Agent or that Obligor;

 

(ii)                     obtaining or

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

arbitration proceedings,

 

the Obligor’s

Agent or that Obligor (as the case may be) shall as an independent obligation,

within three Business Days of demand, indemnify each Finance Party to whom that

Sum is due against any cost, loss or liability arising out of or as a result of

the conversion including any discrepancy between (A) the rate of exchange used

to convert that Sum from the First Currency into the Second Currency and (B)

the rate or rates of exchange available to that person at the time of its

receipt of that Sum.

 

105

 

(b)                                     The

Obligor’s Agent and each Obligor waives any right it may have in any

jurisdiction to pay any amount under the Finance Documents in a currency or

currency unit other than that in which it is expressed to be payable.

 

16.2                     Other

indemnities

The Obligor’s

Agent shall (or shall procure that an Obligor will), within ten Business Days

of demand, indemnify each Lender and each Fronting Bank against any cost, loss

or liability incurred by that Lender or, as the case may be, Fronting Bank as a

result of:

 

(a)                                      the

occurrence of any Event of Default;

 

(b)                                     a

failure by the Obligor’s Agent or an Obligor to pay any amount due under a

Finance Document on its due date, including without limitation, any cost, loss

or liability arising as a result of Clause 30 (Sharing among the Lenders);

 

(c)                                      funding,

or making arrangements to fund, its participation in a Loan requested by a

Borrower in a Utilisation Request but not made by reason of the operation of

any one or more of the provisions of this Agreement (other than by reason of

default or negligence by that Lender alone);

 

(d)                                     issuing

or making arrangements to issue a Letter of Credit or Bank Guarantee  requested by a Borrower in a Utilisation

Request but not issued by reason of the operation of any one or more of the

provisions of this Agreement; or

 

(e)                                      a

Loan (or part of a Loan) not being prepaid in accordance with a notice of

prepayment given by a Borrower or the Obligor’s Agent.

 

16.3                     Indemnity

to the Agent

The Obligor’s

Agent shall promptly indemnify the Agent against any cost, loss or liability

incurred by the Agent (acting reasonably) as a result of:

 

(a)                                      investigating

any event which it reasonably believes is a Default; or

 

(b)                                     entering

into or performing any foreign exchange contract for the purposes of Clause 6 (Optional

Currencies); or

 

(c)                                      acting

or relying on any notice, request or instruction which it reasonably believes

to be genuine, correct and appropriately authorised.

 

17.                           MITIGATION

BY THE LENDERS

 

17.1                     Mitigation

(a)                                      Each

Finance Party shall, in consultation with the Obligor’s Agent, take all

reasonable steps to mitigate any circumstances which arise and which would

result in any amount becoming payable under, or cancelled pursuant to, any of

Clause 9.1 (Illegality),

Clause 14 (Tax

gross-up and indemnities) or Clause 15 (Increased costs) including

(but not limited to) transferring its rights and obligations under the Finance

Documents to another Affiliate or Facility Office.

 

(b)                                     Paragraph

(a) above does not in any way limit the obligations of any Obligor under the

Finance Documents.

 

106

 

17.2                     Limitation

of liability

(a)                                      The

Obligor’s Agent shall indemnify each Finance Party for all costs and expenses

reasonably incurred by that Finance Party as a result of steps taken by it

under Clause 17.1 (Mitigation).

 

(b)                                     A

Finance Party is not obliged to take any steps under Clause 17.1 (Mitigation)

if, in the opinion of that Finance Party (acting reasonably), to do so might be

prejudicial to it.

 

18.                           COSTS AND

EXPENSES

 

18.1                     Transaction

expenses

The Obligor’s

Agent shall promptly on demand pay the Agent and the Arrangers the amount of

all costs and expenses (including legal fees) reasonably incurred by any of

them in connection with the negotiation, preparation, printing, execution and

syndication of:

 

(a)                                      this

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

 

(b)                                     any

other Finance Documents executed after the date of this Agreement.

 

18.2                     Amendment

costs

If (a) an

Obligor requests an amendment, waiver or consent or (b) an amendment is

required pursuant to Clause 31.9 (Change of currency), the Obligor’s Agent

shall, within ten Business Days of demand, reimburse the Agent for the amount

of all costs and expenses (including legal fees) reasonably incurred by the

Agent in responding to, evaluating, negotiating or complying with that request

or requirement.

 

18.3                     Enforcement

costs

The Obligor’s

Agent shall, within ten Business Days of demand, pay to each Finance Party the

amount of all costs and expenses (including legal fees) incurred by that

Finance Party in connection with the enforcement of, or the preservation of any

rights under, any Finance Document.

 

107

 

SECTION 7

 

GUARANTEE

 

19.                           GUARANTEE

AND INDEMNITY

 

19.1                     Guarantee

and

indemnity

Each Guarantor

irrevocably and unconditionally jointly and severally:

 

(a)                                      guarantees

to each Finance Party punctual performance by each Borrower of all that

Borrower’s obligations under the Finance Documents;

 

(b)                                     undertakes

with each Finance Party that whenever a Borrower does not pay any amount when

due under or in connection with any Finance Document, that Guarantor shall

immediately on demand pay that amount as if it was the principal obligor; and

 

(c)                                      indemnifies

each Finance Party immediately on demand against any cost, loss or liability

suffered by that Finance Party if any obligation guaranteed by it is or becomes

unenforceable, invalid or illegal.  The

amount of the cost, loss or liability shall be equal to the amount which that

Finance Party would otherwise have been entitled to recover.

 

19.2                     Continuing

guarantee

This guarantee

is a continuing guarantee and will extend to the ultimate balance of sums

payable by any Obligor under the Finance Documents, regardless of any

intermediate payment or discharge in whole or in part.

 

19.3                     Reinstatement

If any payment

by an Obligor or any discharge given by a Finance Party (whether in respect of

the obligations of any Obligor or any security for those obligations or otherwise)

is avoided or reduced as a result of insolvency or any similar event:

 

(a)                                      the

liability of each Obligor shall continue as if the payment, discharge,

avoidance or reduction had not occurred; and

 

(b)                                     each

Finance Party shall be entitled to recover the value or amount of that security

or payment from each Obligor, as if the payment, discharge, avoidance or

reduction had not occurred.

 

19.4                     Waiver

of defences

The

obligations of each Guarantor under this Clause 19 will not be affected by an

act, omission, matter or thing which, but for this Clause, would reduce,

release or prejudice any of its obligations under this Clause 19 (without

limitation and whether or not known to it or any Finance Party) including:

 

(a)                                      any

time, waiver or consent granted to, or composition with, any Obligor or other

person;

 

(b)                                     the

release of any other Obligor or any other person under the terms of any

composition or arrangement with any creditor of any member of the Group;

 

108

 

(c)                                      the

taking, variation, compromise, exchange, renewal or release of, or refusal or

neglect to perfect, take up or enforce, any rights against, or security over

assets of, any Obligor or other person or any non-presentation or

non-observance of any formality or other requirement in respect of any

instrument or any failure to realise the full value of any security;

 

(d)                                     any

incapacity or lack of power, authority or legal personality of or dissolution

or change in the members or status of an Obligor or any other person;

 

(e)                                      any

amendment (however fundamental) or replacement of a Finance Document or any

other document or security;

 

(f)                                        any unenforceability, illegality or invalidity of any obligation of

any person under any Finance Document or any other document or security; or

 

(g)                                     any

insolvency or similar proceedings.

 

19.5                     Immediate

recourse

Each Guarantor

waives any right it may have of first requiring any Finance Party (or any

trustee or agent on its behalf) to proceed against or enforce any other rights

or security or claim payment from any person before claiming from that

Guarantor under this Clause 19.  This

waiver applies irrespective of any law or any provision of a Finance Document

to the contrary.

 

19.6                     Appropriations

Until all

amounts which may be or become payable by the Obligors under or in connection

with the Finance Documents have been irrevocably paid in full, each Finance

Party (or any trustee or agent on its behalf) may:

 

(a)                                      refrain

from applying or enforcing any other moneys, security or rights held or

received by that Finance Party (or any trustee or agent on its behalf) in

respect of those amounts, or apply and enforce the same in such manner and

order as it sees fit (whether against those amounts or otherwise) and no

Guarantor shall be entitled to the benefit of the same; and

 

(b)                                     hold

in an interest-bearing suspense account any moneys received from any Guarantor

or on account of any Guarantor’s liability under this Clause 19.

 

19.7                     Deferral of Guarantors’ rights

Until all

amounts which may be or become payable by the Obligors under or in connection

with the Finance Documents have been irrevocably paid in full and unless the

Agent otherwise directs, no Guarantor will exercise any rights which it may

have by reason of performance by it of its obligations under the Finance

Documents:

 

(a)                                      to

be indemnified by an Obligor;

 

(b)                                     to

claim any contribution from any other guarantor of any Obligor’s obligations

under the Finance Documents; and/or

 

(c)                                      to

take the benefit (in whole or in part and whether by way of subrogation or

otherwise) of any rights of the Finance Parties under the Finance Documents or

of any

 

109

 

other guarantee or security taken pursuant to, or in connection with,

the Finance Documents by any Finance Party.

 

19.8                     Additional

security

This guarantee

is in addition to and is not in any way prejudiced by any other guarantee or

security now or subsequently held by any Finance Party.

 

19.9                     Limitation on German Obligor Guarantee

(a)                                      To

the extent that the guarantee and indemnity in this Clause 19 is given by a

German Obligor which is constituted in the form of a GmbH or GmbH & Co. KG

(a “Relevant

German Obligor”) to guarantee obligations of its (direct or

indirect) shareholder or a person related to such shareholder within the

meaning of Sections 15 et seq. of the German Stock Corporation Act (for

clarification purposes, this does not include a Subsidiary of such German

Obligor), the Finance Parties agree that the Agent shall not make any demand

against such Relevant German Obligor under the guarantee and indemnity until

the earlier of:

 

(i)                        45 days after

the notification in writing to such Relevant German Obligor or its general

partner, as the case may be, by the Agent of the Agent’s intention to engage a

firm of auditors as contemplated in paragraph (b) below; and

 

(ii)                     the date on which

the Auditors’ Determination (as defined in paragraph (e) below) is available to

the Agent, if such Auditors’ Determination is up to date and in any event

prepared as of a date no earlier than 21 days prior to the date of enforcement.

 

(b)                                     The

Agent shall at all times, acting reasonably and subject to the right of a

Relevant German Obligor to itself engage a firm of auditors in accordance with

paragraph (d) below, have the right to engage at its sole discretion and at the

Relevant German Obligor’s expense a firm of auditors of international standard

and reputation which shall proceed to audit the Relevant German Obligor or its

general partner, as the case may be, with a view to investigating to what

extent the Relevant German Obligor’s or its general partner’s, as the case may

be, net assets exceed its registered share capital and to produce an Auditors’

Determination on the basis set out in paragraph (e) below.

 

(c)                                      Each

Relevant German Obligor or its general partner, as the case may be, shall

render all and any reasonable assistance requested by the Agent for the

purposes of facilitating the audit referred to in paragraph (b) above and shall

allow full access to and inspection of its books and any other necessary

documents.

 

(d)                                     Each

Relevant German Obligor at all times shall be entitled itself to engage a firm

of auditors (subject to the prior agreement of the Agent, not to be

unreasonably withheld, as to the identity of such firm of auditors if such

Relevant German Obligor intends to instruct a different firm of auditors than

that used most recently by it) to produce the Auditors’ Determination on the

basis set out in paragraph (e) below.

 

(e)                                      The

determination by the auditors (the “Auditors’ Determination”) of the amounts

which may be claimed against a Relevant German Obligor under the guarantee and

indemnity in this Clause 19 pursuant to §§30, 31 of the German Limited

Liability

 

110

 

Companies Act (GmbH-Gesetz) in conjunction with §172a of

the German Commercial Code (Handelsgesetzbuch), as the case may be,

shall take into account the general accepted accounting principles applicable

in Germany (GAAP) as well as the applicable court rulings and will be subject

to the adjustments referred to in paragraph (f) below.  The Agent shall, after it receives an

Auditors’ Determination produced at its request, deliver the same to the

Relevant German Obligor in issue or its general partner, as the case may

be.  The Relevant German Obligor shall,

after it receives an Auditors’ Determination produced at its request, deliver

the same to the Agent. An Auditors’ Determination shall, in the absence of

manifest error, be binding on the parties hereto.

 

(f)                                        The maximum amount that may be claimed against a Relevant German

Obligor under this Clause 19 shall be the amount specified in an Auditors’

Determination on that Relevant German Obligor subject to such Auditors’

Determination being up to date and in any event prepared as of a date no

earlier than 21 days prior to the date of enforcement provided that for the

purposes of the calculation of the amount to be claimed the following balance

sheet items shall be adjusted as follows:

 

(i)                        the amount of

any increase of capital (Stammkapital) after the date hereof (A)

that has been effected without the prior written consent of the Agent (acting

on the instructions of the Majority Lenders), (B) that has been effected out of

retained earnings (Kapitalerhöhung aus Gesellschaftsmitteln) or (C) to the

extent that is not fully paid up, shall be deducted from the capital (Stammkapital);

and

 

(ii)                     loans and other

contractual liabilities incurred in violation of the provisions of the Finance

Documents shall be disregarded.

 

(g)                                     If

the 45 day period contemplated by paragraph (a) above has passed and the Agent

has either not received an Auditors’ Determination or has received an Auditors’

Determination which, due to lapse of time after its delivery, no longer

satisfies the criteria set out in paragraph (f) above, the Agent may proceed to

make a demand against the Relevant German Obligor concerned under the guarantee

and indemnity in this Clause 19. The maximum amount that may be claimed against

such Relevant German Obligor in those circumstances will be the amount

determined by the Agent, in good faith by reference to the most recent

financial statements delivered pursuant to paragraph (c) of Clause 21.1 (Financial

Statements), as the amount that would not lead to the situation that

such Relevant German Obligor would have insufficient assets to maintain its or

its general partner’s capital (Stammkapital). For the purpose of

calculating such amount, the adjustments referred to in paragraph (f) above will

be made to the most recent financial statements delivered pursuant to paragraph

(c) of Clause 21.1 (Financial Statements).

 

(h)                                     If

the amount payable under the guarantee and indemnity was determined:

 

(i)                        in accordance

with paragraph (g) above; or

 

(ii)                     by reference to

an Auditors’ Determination in accordance with paragraph (f) above

 

111

 

and an

Auditors’ Determination subsequently delivered to the Agent confirms that the

amount available under the guarantee and indemnity at the time of enforcement

was less than the amount recovered by the Agent, the Agent agrees to release

(or instruct the Security Trustee to release) an amount of the proceeds equal

to the amount by which the recoveries from the Relevant German Obligor exceeded

the amount determined to be available.

 

(i)                                         Each Relevant German Obligor who is a Guarantor shall realise in a

situation where that Relevant German Obligor does not have (or would not have

as the result of the enforcement of the guarantee in this Clause 19 if Clause

19.9 did not apply) sufficient assets to maintain its or its general partner’s

capital (Stammkapital),

to the extent legally permissible and commercially justifiable any and all of

its assets that are shown in the balance sheet with a book value (Buchwert)

that is significantly lower than the market value of the asset if such asset is

not necessary for such Relevant German Obligor’s business (betriebsnotwendig).

 

(j)                                         Notwithstanding the above provisions of this Clause 19.9, the

provisions of paragraphs (a) to (i) (inclusive) of this Clause 19.9 shall not

apply:

 

(i)                        during the

Debtco Structure Period to MGG in its capacity as a Guarantor to the extent

that any amounts are outstanding from MGG under Intra-Group Loans made by Debtco

to MGG at the time the relevant demand is made against MGG under the guarantee

and indemnity contained in this Clause 19 (Guarantee and Indemnity);

 

(ii)                     to the extent any

of the funds borrowed under this Agreement have been onlent to a Relevant German

Obligor who is a Guarantor to the extent that any amounts so on-lent to such

Relevant German Obligor are still outstanding at the time the relevant demand

is made against such Relevant German Obligor under the guarantee and indemnity

contained in this Clause 19 (Guarantee and Indemnity).

 

19.10               Limitation on US Obligor Guarantee

Notwithstanding anything to the contrary contained herein or in any

other Finance Document, the maximum liability of each US Guarantor under Clause

19.1 (Guarantee

and  Indemnity) shall in no event exceed an amount equal to the

greatest amount that would not render such US Guarantor’s obligations hereunder

and under the other Finance Documents subject to avoidance under Section 548 of

the Bankruptcy Code of the United States of America (Title 11 of the United

States of America Code) or any equivalent provision of the laws of any state of

the United States of America or to being set aside, avoided or annulled under

any applicable laws of any state of the United States of America relating to

fraudulent transfers or fraudulent obligations.

 

19.11               Limitation on French Obligor Guarantee

Notwithstanding

anything to the contrary contained herein or in any other Finance Document, the

liability of each French Guarantor:

 

112

 

19.11.1                shall not include any

obligation which if incurred would constitute the provision of financial

assistance within the meaning of Article 225-216 of the French Code of

Commerce;

 

19.11.2                shall be limited to an

amount not exceeding at any time the greater of:

 

(a)                     the equivalent in

euros of the Utilisations (plus any accrued interest commission and fee

thereon) on-lent to that French Guarantor calculated by the Agent on the date

on which such Utilisation(s) are made; and

 

(b)                    90% of the greater

of:

 

(i)                       the Net Asset

Value of that French Guarantor calculated by reference to the most recent

audited financial statements of that French Guarantor available at the date it

became a Guarantor; and

 

(ii)                    the Net Asset

Value of that French Guarantor calculated by reference to the most recent

audited financial statements of that French Guarantor available at the date on

which the relevant demand is made on it pursuant to this Clause 19.

 

For the

purposes of this Clause 19.11, “Net Asset Value” of a French Guarantor means

the capitaux propres (as defined under the provisions of French accounting

laws, decrees and regulations consistently applied) of that French

Guarantor.  A certificate of the

statutory auditors of a French Guarantor as to the Net Asset Value shall be

prima facie evidence as to the Net Asset Value of that French Guarantor.

 

19.12               Limitation on Luxembourg Obligor

Notwithstanding

anything to the contrary contained herein or in any other Finance Document, the

liability of any Luxembourg Obligor shall not include any obligation which if

incurred would constitute unlawful financial assistance or misuse of corporate

assets pursuant to the provisions of the amended Luxembourg Companies Act dated

10 August 1915.

 

19.13               Third Party Rights of Hedge Counterparties

Any Hedge

Counterparty which is not a Party but which is a Finance Party may enjoy the

benefit of and enforce the terms of this Clause 19 (Guarantee and Indemnity) in

accordance with the provisions of the Contracts (Rights of Third Parties) Act

1999.

 

113

 

SECTION 8

 

REPRESENTATIONS,

UNDERTAKINGS AND EVENTS OF DEFAULT

 

20.                           REPRESENTATIONS

 

20.1                     Signing Representations of the Company

Subject to

matters specifically identified and disclosed against particular

representations contained in the Finance Disclosure Letter, the Company makes

the following representations and warranties to each Finance Party on the date

of this Agreement:

 

(a)                                      the

representations and warranties set out in Clause 20.4 (Status) to Clause 20.10 (No filing or

stamp taxes) in relation to itself only;

 

(b)                                     the

representations and warranties set out in Clause 20.24 (Reports), Clause 20.25 (Business

Plan) and Clause 20.27 (Group structure).

 

20.2                     Closing Representations

Subject to

matters specifically identified and disclosed against particular

representations contained in the Finance Disclosure Letter, during the Closing

Period, the Closing Representations are deemed to be made by the Obligor’s

Agent and each Obligor (by reference to the facts and circumstances then

existing) to the Finance Parties on each of the following days or dates if such

day or date falls within the Closing Period:

 

(a)                                      the

date of each Utilisation Request and the first day of each Interest Period and

the first day of each Term;

 

(b)                                     the

day on which a company becomes (or it is proposed that a company becomes) an

Additional Obligor.

 

20.3                     Other

Representations

(a)                                      Subject

to matters specifically identified and disclosed against particular

representations contained in the Finance Disclosure Letter, the Obligor’s Agent

and each Obligor make the representations and warranties set out in Clause

20.12 (No

misleading information) to the Finance Parties on the date on which

the Information Memorandum is approved by the Obligor’s Agent and (save as

disclosed in writing by the Obligor’s Agent to the Agent after approval of such

Information Memorandum and prior to a Syndication Date) on each Syndication

Date.

 

(b)                                     Subject

to matters specifically identified and disclosed against particular

representations contained in the Finance Disclosure Letter the Repeating

Representations are deemed to be made by the Obligor’s Agent and each Obligor

(by reference to the facts and circumstances then existing) to the Finance

Parties on:

 

(i)                        the date of

each Utilisation Request, the first day of each Interest Period and the first

day of each Term other than any such day or date falling within the Closing

Period; and

 

(ii)                     the day on which

a company becomes (or it is proposed that a company becomes) an Additional

Obligor, other than any such day falling within the Closing Period.

 

114

 

(c)                                      The

representations and warranties set out in Clause 20.26 (Budgets) shall be deemed to

be made by the Obligor’s Agent and MGG to the Finance Parties on the date each

Budget is delivered to the Agent.

 

(d)                                     On

each date that the Obligor’s Agent is deemed to make the Closing

Representations or the Repeating Representations it shall be deemed to make

those Closing Representations or Repeating Representations (as the case may be)

on behalf of itself and also in respect of Newco 2 and the Company.

 

20.4                     Status

(a)                                      It

is a corporation or company, duly incorporated with limited liability and validly

existing under the law of its jurisdiction of incorporation or a partnership

duly formed with limited liability.

 

(b)                                     It

and each of its Subsidiaries has the power to own its assets and carry on its

business as it is being conducted.

 

(c)                                      Each

Borrower is acting on its own account when entering into this Agreement and

drawing Loans under this Agreement.

 

20.5                     Binding

obligations

The

obligations expressed to be assumed by it in each Transaction Document to which

it is a party are, subject to the Reservations, legal, valid, binding and

enforceable obligations.

 

20.6                     Non-conflict with other obligations

The entry into

and performance by it of, and of the transactions contemplated by, the

Transaction Documents to which it is a party do not and will not conflict with:

 

(a)                                      any

law or regulation applicable to it;

 

(b)                                     its

constitutional documents and (in the case of MGG) its constitutional documents

and those of any member of the MGG Group; or

 

(c)                                      any

agreement or instrument binding upon it or any member of the Group or any of

its or any member of the Group’s assets, to the extent that such a conflict

would reasonably be expected to have a Material Adverse Effect.

 

20.7                     Power and authority

It has the

power to enter into, perform and deliver, and has taken all necessary action to

authorise its entry into, performance and delivery of, the Transaction

Documents to which it is a party and the transactions contemplated by those

Transaction Documents. No limit on its powers will be exceeded as a result of

the borrowings, granting of Security or giving of guarantees by it contemplated

by the Finance Documents to which it is a party.

 

20.8                     Validity and admissibility in evidence

All

Authorisations required:

 

(a)                                      to

enable it lawfully to enter into, exercise its rights and comply with its

obligations in the Transaction Documents to which it is a party; and

 

115

 

(b)                                     subject

to the Reservations, to make the Transaction Documents to which it is a party

admissible in evidence in its jurisdiction of incorporation,

 

have been

obtained or effected and are in full force and effect, save for any filings or

registrations required in relation to the Security constituted by any Security

Document which filings or registrations will be made promptly after execution

of the relevant Security Document and in any event within applicable time

limits.

 

20.9                     Governing law and enforcement

(a)                                      Subject

to the Reservations, the choice of English law as the governing law of the

Finance Documents (or, in respect of any Subordination Agreements or Security

Documents to which it is a party, the relevant governing laws of such

Subordination Agreements or Security Documents) will be recognised and enforced

in its jurisdiction of incorporation.

 

(b)                                     Subject

to the Reservations, any judgment obtained in England in relation to a Finance

Document (or, in respect of any Subordination Agreements or Security Documents

to which it is a party, any judgement obtained in the courts which are

expressed to have jurisdiction to hear disputes under such Subordination

Agreements or Security Documents) will be recognised and enforced in its

jurisdiction of incorporation.

 

20.10               No

filing or stamp taxes

Save to the

extent identified in any legal opinion delivered pursuant to Clause 4 (Conditions

of Utilisation) or Clause 26 (Changes to the Obligors), under the law of

its jurisdiction of incorporation it is not necessary that the Finance

Documents which have been executed be filed, recorded or enrolled with any

court or other authority in that jurisdiction or that any stamp, registration

or similar tax be paid on or in relation to such Finance Documents or the

transactions contemplated by such Finance Documents.  Any such requirements identified in any such legal opinions will promptly

be effected or paid either (in respect of the Obligor’s Agent) after the date

of this Agreement or (in respect of an Additional Obligor) after it becomes a

Party.

 

20.11               No

default

(a)                                      No

Event of Default is continuing or would reasonably be expected to result from

the making of any Utilisation.

 

(b)                                     No

other event or circumstance is outstanding which constitutes a default under

any other agreement or instrument which is binding on it or any of its

Subsidiaries or to which its (or its Subsidiaries’) assets are subject which

would reasonably be expected to have a Material Adverse Effect.

 

20.12               No misleading information

(a)                                      So

far as it is aware after due and careful enquiry, any material factual

information provided by it or any of its Subsidiaries (or, in the case of MGG,

any of its Holding Companies) (in each case taken as a whole) for the purposes

of the Information Memorandum was true and accurate in all material respects as

at the date it was provided or as at the date (if any) at which it is stated.

 

116

 

(b)                                     The

financial projections contained in the Information Memorandum have been

prepared on the basis of recent historical information and on the basis of

reasonable assumptions at the time of such preparation.

 

(c)                                      Nothing

has occurred or been omitted from the Information Memorandum and no information

has been given or withheld that results in the material information contained

in the Information Memorandum (taken as a whole) being untrue or misleading in

any material respect.

 

(d)                                     So

far as it is aware after reasonable enquiry, all material written information

(taken as a whole) (other than the Information Memorandum) supplied by any

member of the Group is true, complete and accurate in all material respects as

at the date it was given and is not misleading in any material respect.

 

20.13               Financial

statements

The Original

Financial Statements and (in the case of each of Newco 2, MGG and each

Borrower) its most recent audited financial statements delivered to the Agent

pursuant to paragraph (a) or (d) of Clause 21.1 (Financial Statements):

 

(a)                                      were

prepared in accordance with Relevant GAAP consistently applied; and

 

(b)                                     fairly

represent its financial condition and operations (consolidated in the case of

(1) MGG, with respect to the Original Financial Statements and (2) Newco 2,

with respect to its financial statements delivered to the Agent pursuant to

Clause 21.1 (Financial Statements)) during the relevant financial year.

 

20.14               Financial

Year End

Except as

permitted under Clause 23.31 (Accounting Reference Date) the financial

year end of the Newco 2 Group is 31 December.

 

20.15               Pari

passu ranking

Its payment

obligations under the Finance Documents rank at least pari passu with the

claims of all its other unsecured and unsubordinated creditors, except for

obligations mandatorily preferred by law applying to companies generally.

 

20.16               No proceedings pending or threatened

No litigation,

arbitration or administrative proceedings of or before any court, arbitral body

or agency which would reasonably be expected to have a Material Adverse Effect

have been started or (to the best of its knowledge and belief) threatened

against it or any of its Subsidiaries. 

No labour disputes, which would reasonably be expected to have a

Material Adverse Effect, have been started or (to the best of its knowledge and

belief) threatened against it or any of its Subsidiaries.

 

20.17               Environmental compliance

It and each of

its Subsidiaries has performed and observed in all material respects all

Environmental Law, Environmental Permits and all other material covenants,

conditions, restrictions or agreements directly or indirectly concerned with

any contamination, pollution or waste or the release or discharge of any toxic

or hazardous substance in connection with any real property which is or was at

any time owned, leased or occupied by it, or any of its 

 

117

 

Subsidiaries

or on which it or any of its Subsidiaries has conducted any activity where

failure to do so would reasonably be expected to have a Material Adverse

Effect.

 

20.18               Environmental

Claims

No

Environmental Claim has been commenced or (to the best of its knowledge and

belief) is threatened against it or any of its Subsidiaries where that claim

would reasonably be expected to have a Material Adverse Effect.

 

20.19               Taxation

(a)                                      It

and each of its Subsidiaries which is a Material Company has duly and

punctually paid and discharged all Taxes imposed upon it or its assets within

the time period allowed without incurring penalties (save to the extent that

(i) payment is being contested in good faith, (ii) it has maintained adequate

reserves for those Taxes and (iii) payment can be lawfully withheld or any such

non-payment or non-discharge would not reasonably be expected to have a

Material Adverse Effect).

 

(b)                                     It

and each of its Subsidiaries which is a Material Company is not overdue in the

filing of any Tax returns where such late filing would reasonably be expected

to have a Material Adverse Effect.

 

(c)                                      No

claims are being or are reasonably likely to be asserted against it or any of

its Subsidiaries which is a Material Company with respect to Taxes which would

reasonably be expected to have a Material Adverse Effect.

 

20.20               Security and Financial Indebtedness

(a)                                      Save

for Permitted Security, no Security exists over all or any of the present or

future revenues, assets or undertakings of it or any Material Company or

Obligor.

 

(b)                                     Save

for Permitted Indebtedness, neither it nor any of its Consolidated Subsidiaries

has any Financial Indebtedness.

 

(c)                                      The

execution of the Finance Documents to which it is a party and the exercise by

it of its rights thereunder will not result in the existence or imposition of

nor oblige any Material Company or any Obligor to create any Security (save for

Permitted Security) in favour of any person over any of its present or future

revenues, assets or undertakings.

 

20.21               Security

interests

(a)                                      It

is, or will be upon execution of the relevant Security Documents on the Closing

Date occurring (if later), the absolute legal and, where applicable, beneficial

owner of all the assets over which it purports to create Security pursuant to

the Security Documents and (subject to the Reservations) each Security Document

to which it is a party creates the Security which that Security Document

purports to create or, if that Security Document purports to evidence Security,

accurately evidences Security which has been validly created.

 

(b)                                     The

shares and, if applicable, limited partnership interests charged, mortgaged or

pledged by it pursuant to the Security Documents are all fully paid up (and in

the case of limited partnership interests have not been repaid) and not subject

to any option to

 

118

 

purchase or similar rights save that 662/3% of the shares in

Newco 2 are subject to the Call Option (as defined in the Business Combination

Agreement).

 

20.22               Intellectual

Property

It is not

aware of any adverse circumstance relating to validity, subsistence or use of

any of its or its Subsidiaries’ Intellectual Property which would reasonably be

expected to have a Material Adverse Effect.

 

20.23               Good

title to assets

It and each of

its Subsidiaries has good title to or valid leases of or other appropriate

licence, authorisation or consent to use all assets necessary to carry on its

business as presently conducted, the absence of which would reasonably be

expected to have a Material Adverse Effect.

 

20.24               Reports

Having made all

reasonable enquiries in the circumstances of the Acquisition and the

negotiation of the Acquisition Documents:

 

(a)                                      it

is not aware of any materially adverse inaccuracy as to factual matters

relating to either the MGG Group or Syngas contained in the Reports; and

 

(b)                                     it

is not aware of any facts or matters not stated in the Reports, the omission of

which make any statements contained therein (taking the Reports as a whole)

misleading in any materially adverse respect.

 

20.25               Business

Plan

(a)                                      The

Business Plan has been prepared using accounting policies, practices and

procedures consistent, in all material respects, with IAS.

 

(b)                                     After

due and careful consideration, having made all reasonable efforts to make due

and careful enquiries in connection with the Acquisition (including, without

limitation, discussing the Business Plan with relevant managers employed by

members of the MGG Group), it:

 

(i)                        is not aware

of any material inaccuracy as to factual matters relating to the Group

contained in the Business Plan;

 

(ii)                     does not regard

as unreasonable, or to any material extent, unattainable, any of the forecasts

or projections set out in the Business Plan;

 

(iii)                  believes that the

Cost Savings will in all material respects be achieved on or before the fourth

anniversary of the Closing Date;

 

(iv)                 believes the

assumptions, upon which the forecasts and projections in relation to the Group

contained in the Business Plan are based, to be fair and reasonable in all

material respects at the time made;

 

(v)                    is not aware of

any facts or matters omitted from the Business Plan or the Original Financial

Statements, the omission of which make any statements contained therein (taken

as a whole) misleading in any material respect;

 

119

 

(vi)                 has made full

disclosure of all material facts relating to the Group to all the persons

responsible for the preparing of the Business Plan; and

 

(vii)              believes that the

disposal of sufficient of the shares of the companies identified in the

Disposal Plan and/or the assets of such companies to realise the amount of Net

Disposal Proceeds assumed in the Business Plan is achievable before the Term

Disposal Facility Repayment Date,

 

provided that the

above representations in this Clause 20.25 are given subject to the

qualification that projections are based on estimates and assumptions and are

subject to business, economic and competitive uncertainties and contingencies

and that accordingly no assurances can be given or representation made that any

of the assumptions are correct, that projections will be attained or that

forward-looking statements expressed in the projections will correspond to

actual results.

 

20.26               Budgets

It:

 

(a)                                      regards

(as at the date each Budget is delivered to the Agent) as neither unreasonable,

nor to any material extent unattainable, any of the forecasts or projections

set out in the latest Budget delivered under Clause 21.3 (Budgets) or pursuant to

Schedule 2 (Conditions

Precedent);

 

(b)                                     believes

(having made all reasonable enquiries) the assumptions, upon which the

forecasts and projections in relation to the Newco 2 Group contained in the

latest Budget delivered under Clause 21.3 (Budgets) or pursuant to Schedule 2 (Conditions

Precedent) are based, to be fair and reasonable; and

 

(c)                                      has,

to the best of its knowledge and belief (having made all reasonable efforts to

make due and careful enquiry), made full disclosure of all material facts

relating to the Newco 2 Group to all the persons responsible for the preparing

of the latest Budget delivered under Clause 21.3 (Budgets) or pursuant to

Schedule 2 (Conditions

Precedent),

 

provided that the

above representations in this Clause 20.26 are given subject to the

qualification that projections are based on estimates and assumptions and are

subject to business, economic and competitive uncertainties and contingencies

and that accordingly no assurances can be given or representation made that any

of the assumptions are correct, that projections will be attained or that

forward-looking statements expressed in the projections will correspond to

actual results.

 

20.27               Group

structure

The Group

Structure Chart delivered to the Agent pursuant to Clause 4 (Conditions

of Utilisation) or any revised group structure chart delivered to

the Agent pursuant to Clause 23.32 (Revised Group structure) is true, complete

and accurate in all material respects.

 

120

 

20.28               Ownership

of Obligors

From the

Closing Date (save as expressly contemplated in the Business Combination

Agreement on the terms and conditions set out in the Business Combination

Agreement):

 

(a)                                      the

Company will directly and beneficially own 100% of the issued shares of Newco

2; and

 

(b)                                     Newco

2 will directly and beneficially own 100% of the issued shares of MGG (save

that during the Debtco Structure Period Newco 2 will directly and beneficially

own 100% of the issued shares of Debtco and Debtco will directly and

beneficially own 100% of the shares of MGG and until the contribution of the

Family MGG Shares to Newco 2 in accordance with the BCA becomes effective (as

referred to in paragraph 4(d) of Part I of Schedule 2 (Conditions Precedent)) Newco

2 will directly and beneficially own 662/3% of the issued

shares of MGG).

 

20.29               Consents

and Approvals

All necessary

consents, licences, authorisations and approvals to the transactions

constituted by the Transaction Documents have been obtained and all consents,

licences, authorisations and other approvals necessary for the conduct of the

business of the Group as a whole have been obtained, their terms and conditions

have been complied with in all material respects and they have not been and, so

far as it is aware, will not be revoked or otherwise terminated, save in each

case to the extent that the absence of any such consent or filing or variation

would not reasonably be expected to have a Material Adverse Effect.

 

20.30               Acquisition

Documents

(a)                                      There

has been no amendment, variation or waiver of the terms of any of the

Acquisition Documents save for any amendments, variations or waivers:

 

(i)                        approved in

writing by the Agent (acting on the instructions of the Majority Lenders); or

 

(ii)                     which are of a

minor or technical nature or which could not reasonably be considered to be

adverse in any material respect to the interests of any of the Finance Parties.

 

(b)                                     The

Acquisition Documents contain all of the terms of the agreement between the

Investors, the members of the Group and the Vendor in relation to the

Acquisition (other than agreements made between the Investors inter se).

 

(c)                                      It

is not aware of any event, fact or circumstance which would constitute a

material breach of warranty or misrepresentation or material breach of contract

in respect of an Acquisition Document, or otherwise allow it to make any other

claim (other than minor claims of a non material nature) against either the

Vendor or an Affiliate of the Vendor.

 

20.31               Issue

of share capital

There are no

agreements in force to which any member of the Group is party or corporate resolutions

passed which call for the present or further issue or allotment of, or grant to

any person the right (whether conditional or otherwise) to call for the issue

or allotment of any

 

121

 

share or

partnership interest (or equivalent) of any member of the MGG Group (including

an option or right of pre-emption or conversion) other than:

 

(a)                                      pursuant

to the Singapore Separation Agreement;

 

(b)                                     as

expressly provided in the Shareholders’ Agreement;

 

(c)                                      rights

under employee share ownership plans in relation to shares in members of the

MGG Group (other than MGG);

 

(d)                                     rights

under shareholders’ or joint venture agreements, or under the constituent

documents of the relevant entity, held by minority shareholders of members of

the MGG Group (other than MGG) or by their Affiliates; and

 

(e)                                      the

existing agreement between Neal and Massy Gas Products Ltd. (“NMG”),

MGG and Messer Trinidad & Tobago Limited (“MTTL”) pursuant to which NMG

is required to subscribe for 26% of the issued share capital of MTTL.

 

20.32               No

Trading

Save as

contemplated by, or otherwise in connection with, the Transaction Documents and

the transactions contemplated thereby, neither the Company or Newco 2 or Debtco

or any Treasury Borrower has traded or undertaken any commercial activities of

any kind or has any liabilities or obligations (actual or contingent).

 

20.33               Pensions

Each member of

the Group is in compliance with all applicable laws and contracts relating to

the pension schemes (if any) operated by it or in which it participates, save

where any failure to comply would not reasonably be expected to have a Material

Adverse Effect, and (to the extent required by applicable law) each such

pension scheme is fully funded based on reasonable actuarial assumptions and

administered and funded in accordance with applicable law (save as would not

reasonably be expected to have a Material Adverse Effect).

 

20.34               ERISA and Multiemployer Plans

(a)                                      Neither

any US Group Member nor any ERISA Affiliate is making or accruing an obligation

to make contributions or has within any of the five calendar years immediately

preceding the date of this Agreement made or accrued an obligation to make

contributions to any Multiemployer Plan to an extent or in a manner which would

reasonably be expected to have a Material Adverse Effect.

 

(b)                                     Each

Employee Plan is in compliance in form and operation with ERISA and the Code

and all other applicable laws and regulations save where any failure to comply

would not reasonably be expected to have a Material Adverse Effect.

 

(c)                                      Each

Employee Plan which is intended to be qualified under Section 401(a) of the

Code has been determined by the IRS to be so qualified or is in the process of

being submitted to the IRS for approval or will be so submitted during the

applicable remedial amendment period, and, to the knowledge of the Obligor’s

Agent, nothing has occurred since the date of such determination that would

adversely affect such determination where such adverse effect would reasonably

be expected to have a Material Adverse Effect (or, in the case of an Employee

Plan with no determination,

 

122

 

nothing has occurred that would adversely affect such qualification

where such adverse effect would reasonably be expected to have a Material

Adverse Effect).

 

(d)                                     The

fair market value of the assets of each Employee Plan subject to Title IV of

ERISA is at least equal to the present value of all accumulated benefit

obligations under each such Employee Plan (based on the assumptions used for

the purposes of Statement of Financial Accounting Standards No. 87) as of the

date of the most recent financial statement reflecting such amounts or, if, as

of such date, additional contributions are required, the Obligor’s Agent does

not believe that the making of such additional contribution to the extent

necessary to satisfy legal requirements would reasonably be expected to have a

Material Adverse Effect.

 

(e)                                      There

are no actions, suits or claims pending against an Employee Plan (other than

routine claims for benefits) or, to the knowledge of the Obligor’s Agent, any

US Group Member or any ERISA Affiliate threatened, which would reasonably be

expected to be asserted successfully against any Employee Plan, as to which

there is a reasonable possibility of such an assertion and which would

reasonably be expected either singly or in the aggregate to have a Material

Adverse Effect.

 

(f)                                        Each US Group Member and any ERISA Affiliate has made all material

contributions to or under each such Employee Plan required by law within the

applicable time limits prescribed thereby, the terms of such Employee Plan, or

any contract or agreement requiring contributions to an Employee Plan save

where any failure to comply would not reasonably be expected to have a Material

Adverse Effect.

 

(g)                                     Neither

any US Group Member nor any ERISA Affiliate has ceased operations at a facility

so as to become subject to the provisions of Section 4068(a) of ERISA,

withdrawn as a substantial employer so as to become subject to the provisions

of Section 4063 of ERISA or ceased making contributions to any Employee Plan

subject to Section 4064(a) of ERISA to which it made contributions, except

where any such ceasing of operations, withdrawal as a substantial employer or

ceasing to make contributions would not reasonably be expected to have a

Material Adverse Effect.

 

(h)                                     Neither

any US Group Member nor any ERISA Affiliate has incurred or reasonably expects

to incur any liability to PBGC save for any liability which would not

reasonably be expected to have a Material Adverse Effect.

 

20.35               Margin

Stock

 

(a)                                      No

US Group Member is engaged principally, or as one of its important activities,

in the business of owning or extending credit for the purpose of purchasing or

carrying any Margin Stock.

 

(b)                                     The

Facilities will not be used, directly or indirectly, for any purpose which

might constitute all or any part of the Facilities a “purpose credit” within

the meaning of Regulation U or Regulation X.

 

(c)                                      No

US Group Member or any agent acting on its behalf has taken or will take any

action which might cause the Finance Documents to violate any regu­lation of

the Board of Governors of the Federal Reserve System of the United States.

 

123

 

20.36               Investment

Companies

No US Group

Member is subject to regulation under the United States Public Utility Holding

Company Act of 1935 or the United States Investment Company Act of 1940 or any

United States federal or state statute or regulation limiting its ability to

incur indebtedness.

 

21.                           INFORMATION

UNDERTAKINGS

The

undertakings in this Clause 21 remain in force from the date of this Agreement

for so long as any amount is outstanding under the Finance Documents or any Commitment

is in force.  Save as otherwise provided

in the Finance Documents (in particular, but without limitation, pursuant to

Clause 25.7 (Disclosure of Information)) and save for disclosure to their

professional advisers, the Lenders shall treat information received pursuant to

this Clause 21 as confidential.

 

21.1                     Financial

statements

The Obligor’s

Agent shall supply to the Agent in sufficient copies for all the Lenders:

 

(a)                                      as

soon as the same become available, but in any event within 120 days after the

end of each of the financial years of Newco 2 which are for the twelve months

ending on 31 December:

 

(i)                        the audited

consolidated financial statements of Newco 2 for that financial year; and

 

(ii)                     the

unconsolidated audited financial statements of each Borrower for that financial

year; and

 

(iii)                  the audited

consolidated financial statements of MGG for that financial year; and

 

(b)                                     as

soon as the same become available, but in any event within 55 days after the

end of each quarter (other than the final quarter) of each of the financial

years of Newco 2 (or, in the case of the financial statements for each final

quarter of each of the financial years of Newco 2, within 75 days of the end of

each such final quarter or within 120 days of the end of the final quarter

ending 31 December 2001), the consolidated financial statements of Newco 2 for

that financial quarter consisting of a balance sheet and profit and loss

statement and cash flow statement for such financial quarter (and, if any

financial quarter of Newco 2 does not end on a Quarter Date, as soon as the

same become available, but in any event within 45 days after each Quarter Date,

the consolidated financial statements of Newco 2 for the three months ending on

that Quarter Date consisting of a balance sheet and profit and loss statement

and cash flow statement for such three month period); and

 

(c)                                      as

soon as the same become available, but in any event within 30 days after the

end of each calendar month, commencing with the first full calendar month after

the Closing Date, the consolidated profit and loss statement of Newco 2 for

that calendar month showing the performance relative to the Budget during such

calendar month and for the calendar year to date, together with the amount of

Capital Expenditure for that calendar month and the financial liabilities of

the Newco 2 Group as at the end of such calendar month (such profit and loss

statement to provide as a minimum the

 

124

 

information provided in the monthly management reports as at the date

of this Agreement); and

 

(d)                                     as

soon as the same become available, but in any event within 120 days after the

end of each calendar year in which the financial year of Newco 2 ending on 31

December is for a period of less than twelve months:

 

(i)                        the pro forma

summary of the audited consolidated financial statements of Newco 2 for that

calendar year; and

 

(ii)                     the pro forma

summary of the unconsolidated audited financial statements of each Borrower for

that calendar year; and

 

(iii)                  the pro forma

summary of the audited consolidated financial statements of MGG for that

calendar year; and

 

(e)                                      as

soon as the same become available, but in any event within 45 days of the end

of each financial quarter of MGG ending after 1 January 2001 but on or before

the end of the financial quarter in which the Closing Date occurs, the

consolidated financial statements of MGG for that financial quarter consisting

of a balance sheet and profit and loss statement and cash flow statement for

such financial quarter.

 

21.2                     Compliance Certificates

(a)                                      The

Obligor’s Agent shall supply to the Agent, with each set of financial

statements delivered pursuant to paragraph (a)(i) or (b) or (d)(i) of Clause

21.1 (Financial

statements), a Compliance Certificate signed by any Prokurist of

Newco 2 setting out (in reasonable detail) computations as to compliance with

Clause 22 (Financial

covenants) and Clause 23.30 (Guarantor Group and Security Coverage) and

the Material Companies falling within paragraphs (b) and (c) of the definition

of Material Company as at the date as at which those financial statements were

drawn up and the details listed in paragraphs (i), (ii) and (iii) of the

definition of Relevant Debt Relief Amount relating to any disposals during the

period to which such financial statements relate which it wishes to include for

the purposes of paragraphs (a) and (b) of the definition of Relevant Debt

Relief Amount.

 

(b)                                     The

Obligor’s Agent shall supply to the Agent with each set of financial statements

delivered pursuant to paragraph (a)(i) or (d)(i) of Clause 21.1 (Financial

statements) an Auditor’s Report reporting on the Compliance

Certificate accompanying such financial statements.

 

21.3                     Budgets

(a)                                      The

Obligor’s Agent shall, as soon as the same become available, and in any event

no later than 15 days prior to the beginning of each calendar year, deliver to

the Agent in sufficient copies for the Lenders an annual budget (in a form

agreed with the Agent) prepared by reference to each calendar month in respect

of such calendar year including:

 

(i)                        forecasts of

any projected disposals (including timing and amount of any projected

disposals) on a consolidated basis of the Newco 2 Group for such calendar year;

 

125

 

(ii)                     projected profit

and loss accounts (including projected turnover and operating costs) and key

projected cashflow items (including capital expenditure, working capital,

taxes, interest, acquisitions, disposals and exceptionals) and projected debt,

together with the main operating assumptions relating to such projected

financial statements, on a monthly basis, for such calendar year on a

consolidated basis for the Newco 2 Group;

 

(iii)                  revisions to the

projections set out in the Business Plan, together with the main operating

assumptions relating thereto, for such calendar year until 31 December 2010,

based on the financial condition and performance and prospects of the Newco 2

Group at such time;

 

(iv)                 projected Capital

Expenditure to be incurred on a monthly basis for such calendar year on a

consolidated basis for the Newco 2 Group;

 

(v)                    projected EBIT and

EBITDA as at the end of each calendar month in such calendar year; and

 

(vi)                 a qualitative

analysis and commentary from the management on its proposed activities for such

calendar year.

 

(b)                                     The

Obligor’s Agent shall, as soon as the same become available, and in any event

no later than 15 August in each year, deliver to the Agent in sufficient copies

for the Lenders an update to the annual budget previously delivered to the

Agent pursuant to paragraph (a) above in respect of that year.

 

(c)                                      The

Obligor’s Agent shall provide the Agent with details of any material changes in

the projections delivered under this Clause 21.3 as soon as reasonably

practicable after it becomes aware of any such change.

 

21.4                     Requirements as to financial statements

(a)                                      Each

set of financial statements delivered by the Obligor’s Agent pursuant to Clause

21.1 (Financial

statements) shall be certified by a board member of the relevant

company as fairly presenting in all material respects its financial condition

as at the date as at which those financial statements were drawn up.

 

(b)                                     Subject

to paragraph (d) below, the Obligor’s Agent shall procure that each set of financial

statements of the Newco 2 Group or a Borrower delivered pursuant to Clause 21.1

(Financial

statements) is prepared using Relevant GAAP, and in the case of the

consolidated financial statements of Newco 2 only, accounting practices and

financial reference periods consistent with those applied in the preparation of

the Original Financial Statements unless, in relation to the consolidated

financial statements of Newco 2, it notifies the Agent that there has been a

change in IAS, or the accounting practices or reference periods, and Newco 2’s

auditors deliver to the Agent:

 

(i)                        a description

of any change necessary for those financial statements to reflect the IAS,

accounting practices and reference periods upon which the Original Financial

Statements were prepared; and

 

126

 

(ii)                     sufficient

information, in form and substance as may be reasonably required by the Agent,

to enable the Lenders to determine whether Clause 22 (Financial covenants) has

been complied with and make an accurate comparison between the financial

position indicated in those financial statements and the Original Financial

Statements.

 

Any reference

in this Agreement to those financial statements shall be construed as a

reference to those financial statements as adjusted to reflect the basis upon

which the Original Financial Statements were prepared.

 

(c)                                      If

the Obligor’s Agent notifies the Agent of a change in accordance with paragraph

(b) above then the Obligor’s Agent and Agent (acting on the Majority Lenders’

instructions) shall enter into negotiations in good faith with a view to

agreeing:

 

(i)                        whether or not

the change might result in any material alteration in the commercial effect of

any of the terms of this Agreement; and

 

(ii)                     if so, any

amendments to this Agreement which may be necessary to ensure that the change

does not result in any material alteration in the commercial effect of those

terms,

 

and if any

amendments are agreed they shall take effect and be binding on each of the

Parties in accordance with their terms.

 

(d)                                     If

the Obligor’s Agent notifies the Agent in writing that it wishes the

consolidated financial statements of Newco 2 and MGG to be delivered under

Clause 21.1 (Financial statements) to be prepared using US GAAP and

provides with such notification a description from Newco 2’s auditors of the

differences for Newco 2’s and MGG’s consolidated financial statements between

US GAAP and IAS as applied to the Original Financial Statements, then the

Obligor’s Agent and the Agent (acting on the Majority Lenders’ instructions)

shall enter into negotiations in good faith with a view to agreeing any

amendments to this Agreement which may be necessary to ensure that if in future

the consolidated financial statements of Newco 2 were to be permitted to be

delivered pursuant to Clause 21.1 (Financial statements) prepared using US

GAAP rather than IAS such change would not result in any material alteration to

the commercial effect of the terms of this Agreement.  If any amendments are agreed they shall take effect and be

binding on each of the Parties in accordance with their terms and future

consolidated financial statements of Newco 2 may be delivered pursuant to

Clause 21.1 (Financial statements) prepared using US GAAP.

 

(e)                                      Each

Lender acknowledges that it shall not unreasonably withhold or delay its

consent in relation to any request from the Obligor’s Agent under paragraphs

(c) or (d) of this Clause 21.4.

 

127

 

21.5                     Information: miscellaneous

The Obligor’s

Agent shall supply to the Agent (in sufficient copies for all the Lenders, if

the Agent so requests):

 

(a)                                      all

documents dispatched by the Obligor’s Agent to its shareholders (or any class

of them) or its creditors generally pursuant to applicable legal requirements

at the same time as they are dispatched;

 

(b)                                     promptly

upon becoming aware of them, the details of any litigation, arbitration or

administrative proceedings which are current, threatened or pending against any

member of the MGG Group, and which would reasonably be expected to have a

Material Adverse Effect;

 

(c)                                      promptly

notify the Agent in writing upon becoming aware of any pollution or

contamination of the environment in respect of which any member of the Group

may incur expenditure in excess of EUR10,000,000 (or its equivalent) to clean

up or remedy together with details of such pollution or contamination; and

 

(d)                                     promptly,

such further information regarding the financial condition, business and

operations of any member of the Group as any Finance Party (through the Agent)

may reasonably request.

 

21.6                     Notification

of default

Each Obligor

shall notify the Agent of any Default (and the steps, if any, being taken to

remedy it) promptly upon becoming aware of its occurrence (unless that Obligor

is aware that a notification has already been provided by another Obligor).

 

21.7                     ERISA related Information

(a)                                      The

Obligor’s Agent shall procure that each US Group Member and each ERISA

Affiliate (each a “Relevant Company” for the purposes of this

Clause 21.7) shall:

 

(i)                        promptly and

in any event within thirty days after any Relevant Company knows or has reason

to know that any ERISA Event which would reasonably be expected to have a

Material Adverse Effect has occurred; and

 

(ii)                     promptly and in

any event within ten days after any Relevant Company knows or has reason to

know that a request for a minimum funding waiver under Section 412 of the Code

has been filed with respect to any Title IV Plan or Multiemployer Plan,

 

deliver to the

Agent a written statement of the Chief Financial Officer of such Relevant

Company describing such ERISA Event or waiver request and the action, if any,

which it proposes to take with respect thereto and a copy of any notice filed

with the PBGC or the IRS pertaining thereto.

 

(b)                                     The

Obligor’s Agent shall procure that each Relevant Company shall simultaneously

with the date that any Relevant Company files a notice of intent to terminate

any Title IV Plan, if such termination would require material additional

contributions in order to be considered a standard termination within the

meaning of Section 4041(b) of ERISA, deliver to the Agent a copy of each

notice.

 

128

 

22.                           FINANCIAL

COVENANTS

 

22.1                     Financial

definitions

In this Clause

22:

 

“Capital

Expenditure” means any expenditure or obligations in respect of

expenditure (including any obligation in respect of the capital element of any

Finance Lease) for the acquisition of equipment, fixed assets, real property,

intangible assets and other assets of a capital nature, or for the replacements

or substitution therefor or additions or improvements thereto, that in any such

case have a useful life or more than one year together with the costs incurred

in connection therewith but excluding any cash payments in respect of

expenditure on Permitted Acquisitions and excluding any expenditure or

obligations in respect of expenditure in respect of Restructuring Expenses and

excluding any expenditure eliminated on consolidation.  Under this Agreement, Capital Expenditure

will be treated as having been made or incurred at the time it is treated as

having been incurred under IAS.

 

“Cash”

means, at any time, cash at bank and credited to an account in the sole name of

a member of the Newco 2 Group.

 

“Cash

Equivalent Investments” means certificates of deposit and debt

securities which are not convertible into any other form of security, are not

issued or guaranteed by any member of the Newco 2 Group and have a maturity of

twelve months or less.

 

“Current

Assets” means the aggregate of inventories of each member of the

Newco 2 Group (including advanced payments made), trade accounts receivable of

each member of the Newco 2 Group and receivables of each member of the Newco 2

Group relating to long-term construction contracts but excluding amounts

receivable in respect of Restructuring Expenses and Exceptional Items.

 

“Current

Liabilities” means the aggregate of trade accounts payable by each

member of the Newco 2 Group and advance payments received by each member of the

Newco 2 Group on orders (in each case, falling due within twelve months from

the date of computation) but excluding liabilities in respect of Restructuring

Expenses and Exceptional Items.

 

“EBITDA”

means, for any period, the consolidated profit from operations of the Newco 2

Group for that period and, in respect of any part (the “Pre-Closing Period”) of such

period which falls prior to the Closing Date, the consolidated profit from

operations of the MGG Group for that Pre-Closing Period:

 

(a)                                      

excluding any Exceptional Items;

 

(b)                                     adding

back (in each case only to the extent deducted in calculating consolidated

profit from operations):

 

(i)                        any amount

attributable to amortisation of intangible assets (including goodwill);

 

(ii)                     any amount

attributable to depreciation of tangible assets;

 

(iii)                  any amount

attributable to Restructuring Expenses (which is not otherwise excluded by

virtue of being an Exceptional Item); and

 

129

 

(iv)                 any amount of expense

incurred that is attributable to financing or refinancing Unconsolidated Debt;

 

(c)                                      adding

any cash dividends declared by any person which is not a member of the MGG

Group in favour of a member of the MGG Group during that period; and

 

(d)                                     deducting

(to the extent otherwise included) any amounts returned to any member of the

MGG Group in respect of monies paid by that member of the MGG Group in relation

to Unconsolidated Debt,

 

provided that no

amount shall be excluded, deducted or added back more than once.

 

“Exceptional

Items” means items which are required (due to their size, nature or

incidence) to be disclosed separately in accordance with paragraphs 16 - 18 of

international accounting standard 8 of IAS.

 

“Excess Cash

Flow” means, for any period for which it is being calculated,

Operating Cash Flow for that period less Total Debt Service for that period but

adding back (to the extent included in Total Debt Service) mandatory

prepayments made during that period pursuant to Clause 9.4 (Excess Cash

Flow) and Clause 9.5 (Asset Disposals).

 

“Financial

Quarter” means the period commencing on the day after one Quarter

Date and ending on the next Quarter Date.

 

“Net Cash

Interest Payable” means, in respect of any period and without double

counting, the aggregate amount of the interest (including the interest element

of any Finance Lease), commission, fees, discounts and other finance payments

payable by the Newco 2 Group in respect of any Indebtedness for Borrowed Money

(other than arising under permitted Intra-Group Loans) which have accrued

during that period,

 

(a)                                      adding any commission, fees, discounts and other finance payments expensed

by the Newco 2 Group under any interest rate hedging arrangement during

that period;

 

(b)                                     deducting any commission, fees, discounts and other finance payments

receivable by the Newco 2 Group during that period under any interest rate

hedging instrument permitted by this Agreement;

 

(c)                                      deducting any interest receivable by the Newco 2 Group on any deposit or bank

account during that period;

 

(d)                                     excluding

any capitalised interest in respect of the

Mezzanine Outstandings, any Direct Mezzanine Refinancing Facility and any

Refinancing Notes (for the avoidance of doubt, any interest which has been

capitalised in respect of the Mezzanine Outstandings which becomes payable upon

any refinancing in full of the Mezzanine Facility permitted hereunder shall be

excluded pursuant to this paragraph (d));

 

(e)                                      excluding (for the avoidance of doubt) any arrangement, underwriting or other

front end fees payable in respect of (or any prepayment fees in respect of)

facilities providing Indebtedness for Borrowed Money; and

 

130

 

(f)                                        excluding (for the avoidance of doubt) capitalised borrowing costs relating

to the construction of fixed assets provided that such costs have been incurred

as Capital Expenditure.

 

“Operating

Cash Flow”

means, in respect of any period, EBITDA for such period after:

 

(a)                                      adding

back:

 

(i)                        any decrease

in the amount of Working Capital at the end of such a period compared against

the Working Capital at the start of such a period;

 

(ii)                     any cash receipt

in respect of any Exceptional Item (other than in respect of any disposal);

 

(iii)                  any increase in the

amount of Working Capital attributed to any increase of Current Assets in the

first two Financial Quarters ending after the Closing Date related to the

discontinuance of the Existing Factoring Programme;

 

(iv)                 the book value of any

disposal of assets in the ordinary course of business during that period;

 

(v)                    any increases in

long term provisions;

 

(vi)                 any indemnities

received in cash by any member of the MGG Group in relation to Unconsolidated

Debt (or, to the extent otherwise included, paid directly to the creditor in

respect thereof); and

 

(vii)              receipts by any member

of the Newco 2 Group in respect of Taxes; and

 

(b)                                     deducting:

 

(i)                        (to the extent

otherwise included) any amount of Capital Expenditure actually paid by any

member of the Newco 2 Group during that period (other than Capital Expenditure

using the Additional Basket) pursuant to paragraph (c)(iii) of Clause 22.3 (Capital

Expenditure);

 

(ii)                     any increase in

the amount of Working Capital at the end of such a period compared against the

Working Capital at the start of such a period;

 

(iii)                  (to the extent

otherwise included) any amount actually paid in respect of taxes on the profits

of any member of the Newco 2 Group;

 

(iv)                 any cash payment in

respect of any Exceptional Item;

 

(v)                    (to the extent not

deducted under paragraph (b) (iv) above) any cash payment in respect of

Restructuring Expenses;

 

(vi)                 any cash investment

in a person which is not a member of the MGG Group other than in respect of

Unconsolidated Debt;

 

(vii)              (to the extent otherwise

included) any decrease in long term provisions; and

 

131

 

(viii)           the amount of any dividends

actually paid in cash by any member of the MGG Group to any person who is not a

member of the MGG Group and any cash dividends declared by any member of the

MGG Group to any person which is not a member of the MGG Group,

 

and no amount

shall be included or excluded more than once save that (except for the purposes

of calculating Excess Cash Flow) any cash payment made in 2001 or 2002 in

respect of any Restructuring Expenses which is otherwise deducted under

paragraph (b) above shall be added back.

 

“Quarter Date”

means each of 31 March, 30 June, 30 September and 31 December.

 

“Relevant

Period” means:

 

(a)                                      the

period beginning on 1 January 2001 and ending on 30 September 2001; and

 

(b)                                     each

period of twelve months ending on the last day of each Quarter Date falling

after 30 September 2001.

 

“Total Debt”

means, at any time, the aggregate of the Indebtedness for Borrowed Money

(without double counting) of the Newco 2 Group at that time expressed in euros

(and if any such Indebtedness for Borrowed Money is not denominated in euros

then the amount of such Indebtedness for Borrowed Money shall be converted into

euros using the same principles as those used in establishing a euro

denominated figure for operating profit of the Newco 2 Group for the applicable

period ending on the date at which the Total Debt figure is being calculated,

with the exception that for Indebtedness for Borrowed Money covered under any

currency hedging arrangement entered into by the Newco 2 Group the exchange

rate to be used shall be the effective rate under that currency hedging

arrangement) excluding:

 

(a)                                      any

Indebtedness for Borrowed Money arising under any permitted Intra-Group Loan;

 

(b)                                     any

Indebtedness for Borrowed Money owed by Newco 2 under any loan from a Holding

Company of Newco 2 to Newco 2;

 

(c)                                      any

Indebtedness for Borrowed Money to the extent that such Indebtedness for

Borrowed Money is supported by any Letter of Credit or Bank Guarantee issued

under this Agreement; and

 

(d)                                     any

Indebtedness for Borrowed Money to the extent that the creditor of such

Indebtedness for Borrowed Money has been (and continues at that time to be)

provided with first priority Security over a deposit in a bank account securing

such Indebtedness for Borrowed Money,

 

but adding

Uncovered Non-Indemnified Unconsolidated Debt at that time.

 

“Total Debt

Service” means, in respect of any period and without double

counting, the aggregate of:

 

(a)                                      Net

Cash Interest Payable for that period; and

 

132

 

(b)                                     the

aggregate of scheduled repayments and mandatory prepayments of Total Debt

falling due during that period (but excluding:

 

(i)                        any amounts

falling due under either Revolving Facility other than any payments required to

be made in permanent reduction of either Revolving Facility;

 

(ii)                     any prepayments

required to be made pursuant to paragraph (a) of Clause 9.5 (Asset

Disposals)); and

 

(iii)                  any mandatory

repayments of Existing Indebtedness falling due as a result of any provisions

contained in the relevant agreement pursuant to which such Existing

Indebtedness was provided relating to the change of control of any member of

the Newco 2 Group as a result of the MGG Acquisition or otherwise triggered by

the MGG Acquisition or the entering into of the Finance Documents.

 

For the

avoidance of doubt, “scheduled repayments” are repayments due

under the relevant agreement as reduced from time to time (in accordance with

the provisions of that agreement) as a consequence of any prepayment.

 

“Total

Senior Debt” means, at any time (without double counting), the

aggregate of the Indebtedness for Borrowed Money of the MGG Group at such time

expressed in euros (and if any such Indebtedness for Borrowed Money is not

denominated in euros then the amount of such Indebtedness for Borrowed Money

shall be converted into euros using the same principles as those used in

establishing a euro denominated figure for operating profit of the Newco 2

Group for the applicable period ending on the date at which the Total Senior

Debt figure is being calculated, with the exception that for Indebtedness for

Borrowed Money covered under any currency hedging arrangement entered into by

the Newco 2 Group the exchange rate to be used shall be the effective rate

under that currency hedging arrangement):

 

(a)                                      excluding

any Indebtedness for Borrowed Money arising under any permitted Intra-Group

Loan made between members of the MGG Group;

 

(b)                                     excluding

any Indebtedness for Borrowed Money to the extent that such Indebtedness for

Borrowed Money is supported by any Letter of Credit or Bank Guarantee issued

under this Agreement;

 

(c)                                      excluding

any Indebtedness for Borrowed Money to the extent that the creditor of such

Indebtedness for Borrowed Money has been (and continues at that time to be)

provided with first priority Security over a deposit in a bank account securing

such Indebtedness for Borrowed Money;

 

(d)                                     less

(to the extent otherwise included) any Indebtedness for Borrowed Money

outstanding under the Mezzanine Facility Agreement or the Direct Mezzanine

Refinancing Facility at such time;

 

(e)                                      less

(to the extent otherwise included) any Indebtedness for Borrowed Money owing by

MGG or, as the case may be, Debtco in respect of any High Yield Proceeds Loan,

any Exchange Notes Loan and in respect of any Newco 2 Loan;

 

133

 

(f)                                        less (to the extent otherwise included) any Indebtedness for

Borrowed Money (not falling within paragraphs (b) or (c) above) which is

subordinated to the Facilities on terms acceptable to the Majority Lenders; and

 

(g)                                     plus

Uncovered Non-Indemnified Unconsolidated Debt at that time.

 

“Uncovered

Non-Indemnified Unconsolidated Debt” at any time means the amount of

Revolving Facility II which is not at such time utilised less an amount (if

any) certified in the then latest Compliance Certificate by which Total

Non-Indemnified Unconsolidated Debt has been permanently reduced (by reason of

the expiry of a guarantee or indemnity given by a member of the MGG Group which

is not to be renewed or as a result of the disposal of the MGG Group’s interest

in a Joint Venture or Unconsolidated Subsidiary of MGG or payment of a sum

under such a guarantee or indemnity by a member of the MGG Group or otherwise)

other than by reason of a payment in respect of any Non-Indemnified

Unconsolidated Debt from the proceeds of a Revolving Facility II Loan or under

a Letter of Credit or Bank Guarantee issued under Revolving Facility II and

which such reduction has not been used to enable a Utilisation under Revolving

Facility II to be used for general working capital requirements of the MGG

Group pursuant to the provisions to paragraph (c) of Clause 3.1 (Purpose).

 

“Working

Capital” means at any time Current Assets less Current Liabilities

at that time.

 

22.2                     Financial

condition

The Obligor’s

Agent shall ensure that:

 

(a)                                      EBITDA

to Net Cash Interest Payable: The ratio of EBITDA

for the Relevant Period ending on each Quarter Date specified in column 1 below

to Net Cash Interest Payable for each Relevant Period ended on such Quarter

Date shall not be less than the ratio set out in column 2 below opposite such

Quarter Date.

 

	

  Column

  1

  Quarter Date

  	

   

  	

  Column 2

  EBITDA: Net Cash Interest Payable

  	

   

  
	

  31 December 2001

  	

   

  	

  2.15:1.0

  	

   

  
	

  31 March 2002

  	

   

  	

  2.15:1.0

  	

   

  
	

  30 June 2002

  	

   

  	

  2.25:1.0

  	

   

  
	

  30 September 2002

  	

   

  	

  2.35:1.0

  	

   

  
	

  31 December 2002

  	

   

  	

  2.50:1.0

  	

   

  
	

  31 March 2003

  	

   

  	

  2.60:1.0

  	

   

  
	

  30 June 2003

  	

   

  	

  2.60:1.0

  	

   

  
	

  30 September 2003

  	

   

  	

  2.70:1.0

  	

   

  
	

  31 December 2003

  	

   

  	

  2.75:1.0

  	

   

  
	

  31 March 2004

  	

   

  	

  2.85:1.0

  	

   

  
	

  30 June 2004

  	

   

  	

  3.00:1.0

  	

   

  
	

  30 September 2004

  	

   

  	

  3.05:1.0

  	

   

  
	

  31 December 2004

  	

   

  	

  3.10:1.0

  	

   

  
	

  31 March 2005

  	

   

  	

  3.25:1.0

  	

   

  
	

  30 June 2005

  	

   

  	

  3.35:1.0

  	

   

  
	

  30 September 2005

  	

   

  	

  3.50:1.0

  	

   

  
	

  31 December 2005

  	

   

  	

  3.60:1.0

  	

   

  
	

  31 March 2006 and each Quarter Date thereafter

  	

   

  	

  3.75:1.0

  	

   

  

 

134

 

(b)                                      Total

Senior Debt to EBITDA: The ratio of Total Senior

Debt on each of the Quarter Dates specified in column 1 below to EBITDA for the

Relevant Period ending on such Quarter Date shall not be more than the ratio

set out in column 2 below corresponding to that Quarter Date. 

 

	

  Column

  1

  Quarter Date

  	

   

  	

  Column 2 

  Total Senior Debt : EBITDA

  	

   

  
	

  31 December 2001

  	

   

  	

  4.00:1.0

  	

   

  
	

  31 March 2002

  	

   

  	

  3.90:1.0

  	

   

  
	

  30 June 2002

  	

   

  	

  3.80:1.0

  	

   

  
	

  30 September 2002

  	

   

  	

  3.50:1.0

  	

   

  
	

  31 December 2002

  	

   

  	

  3.00:1.0

  	

   

  
	

  31 March 2003

  	

   

  	

  2.85:1.0

  	

   

  
	

  30 June 2003

  	

   

  	

  2.75:1.0

  	

   

  
	

  30 September 2003

  	

   

  	

  2.70:1.0

  	

   

  
	

  31 December 2003

  	

   

  	

  2.55:1.0

  	

   

  
	

  31 March 2004

  	

   

  	

  2.45:1.0

  	

   

  
	

  30 June 2004

  	

   

  	

  2.30:1.0

  	

   

  
	

  30 September 2004

  	

   

  	

  2.20:1.0

  	

   

  
	

  31 December 2004

  	

   

  	

  2.10:1.0

  	

   

  
	

  31 March 2005

  	

   

  	

  2.00:1.0

  	

   

  
	

  30 June 2005

  	

   

  	

  1.90:1.0

  	

   

  
	

  30 September 2005

  	

   

  	

  1.80:1.0

  	

   

  
	

  31 December 2005

  	

   

  	

  1.70:1.0

  	

   

  
	

  31 March 2006 and each Quarter Date thereafter

  	

   

  	

  1.50:1.0

  	

   

  

 

(c)                                      Cash

Flow to Total Debt Service: The ratio of Operating

Cash Flow to Total Debt Service for each Relevant Period ended on each Quarter

Date specified in column 1 below shall not be less than the ratio set out in

column 2 below opposite such Quarter Date.

 

	

  Column

  1

  Quarter Date

  	

   

  	

  Column 2

  Operating Cash Flow: Total Debt Service

  	

   

  
	

  30 June 2002

  	

   

  	

  1.00:1.0

  	

   

  
	

  30 September 2002

  	

   

  	

  1.00:1.0

  	

   

  
	

  31 December 2002

  	

   

  	

  1.00:1.0

  	

   

  
	

  31 March 2003

  	

   

  	

  1.00:1.0

  	

   

  
	

  30 June 2003

  	

   

  	

  1.00:1.0

  	

   

  
	

  30 September 2003

  	

   

  	

  1.05:1.0

  	

   

  
	

  31 December 2003

  	

   

  	

  1.05:1.0

  	

   

  
	

  31 March 2004 and each Quarter Date thereafter

  	

   

  	

  1.10:1.0

  	

   

  

 

(d)                                     Total

Debt to EBITDA: The ratio of Total Debt on each of

the Quarter Dates specified in column 1 below to EBITDA for the Relevant Period

ending on such Quarter Date shall not be more than the ratio set out in column

2 below corresponding to that Quarter Date.

 

135

 

	

  Column

  1

  Quarter Date

  	

   

  	

  Column 2

  Total Debt: EBITDA

  	

   

  
	

  31 December 2001

  	

   

  	

  5.25:1.0

  	

   

  
	

  31 March 2002

  	

   

  	

  5.15:1.0

  	

   

  
	

  30 June 2002

  	

   

  	

  5.00:1.0

  	

   

  
	

  30 September 2002

  	

   

  	

  4.70:1.0

  	

   

  
	

  31 December 2002

  	

   

  	

  4.10:1.0

  	

   

  
	

  31 March 2003

  	

   

  	

  3.90:1.0

  	

   

  
	

  30 June 2003

  	

   

  	

  3.85:1.0

  	

   

  
	

  30 September 2003

  	

   

  	

  3.75:1.0

  	

   

  
	

  31 December 2003

  	

   

  	

  3.60:1.0

  	

   

  
	

  31 March 2004

  	

   

  	

  3.50:1.0

  	

   

  
	

  30 June 2004

  	

   

  	

  3.35:1.0

  	

   

  
	

  30 September 2004

  	

   

  	

  3.25:1.0

  	

   

  
	

  31 December 2004

  	

   

  	

  3.10:1.0

  	

   

  
	

  31 March 2005

  	

   

  	

  3.00:1.0

  	

   

  
	

  30 June 2005

  	

   

  	

  2.90:1.0

  	

   

  
	

  30 September 2005

  	

   

  	

  2.80:1.0

  	

   

  
	

  31 December 2005

  	

   

  	

  2.70:1.0

  	

   

  
	

  31 March 2006 and each Quarter Date ending

  thereafter

  	

   

  	

  2.50:1.0

  	

   

  

 

22.3                     Capital

Expenditure

(a)                                      The

Obligor’s Agent shall ensure that the Newco 2 Group (and, to the extent that

any such period occurs prior to the Closing Date, the Newco 2 Group and the MGG

Group combined) shall not incur Capital Expenditure in any Financial Quarter

specified in Column 1 below in excess of the amount set out in Column 2 below

as applicable for such Financial Quarter:

 

	

  Column 1 

  Financial Quarter Ending

  	

   

  	

  Column

  2 

  Maximum Capital 

  Expenditure (euros)

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  31 December 2001

  	

   

  	

  39,800,000

  	

   

  
	

  31 March 2002

  	

   

  	

  54,200,000

  	

   

  
	

  30 June 2002

  	

   

  	

  51,100,000

  	

   

  
	

  30 September 2002

  	

   

  	

  49,600,000

  	

   

  
	

  31 December 2002

  	

   

  	

  51,300,000

  	

   

  

 

provided

always that the Obligor’s Agent shall ensure that the Newco 2 Group (including,

prior to the Closing Date, the MGG Group) shall not incur Capital Expenditure

in the calendar year ending 31 December 2001 or the calendar year ending 31

December 2002 in excess of the amount specified in Column 2 of paragraph (b)

below applicable to such calendar year.

 

(b)                                     The

Obligor’s Agent shall ensure that the Newco 2 Group shall not incur Capital

Expenditure in any calendar year specified in Column 1 below in excess of the

amount set out in Column 2 below as applicable for such calendar year:

 

136

 

	

  Column 1

  Calendar Year Ending

  	

   

  	

  Column

  2

  Maximum Capital

  Expenditure (euros)

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  31 December 2001

  	

   

  	

  179,000,000

  	

   

  
	

  31 December 2002

  	

   

  	

  179,000,000

  	

   

  
	

  31 December 2003

  	

   

  	

  180,000,000

  	

   

  
	

  31 December 2004

  	

   

  	

  187,600,000

  	

   

  
	

  31 December 2005

  	

   

  	

  190,000,000

  	

   

  
	

  31 December 2006

  	

   

  	

  200,000,000

  	

   

  
	

  31 December 2007

  	

   

  	

  200,000,000

  	

   

  

 

(c)                                      Notwithstanding

paragraphs (a) and (b) above:

 

(i)                        to the extent

that in any Financial Quarter ending in 2001 or in any Financial Quarter ending

in 2002 the amount spent in making Capital Expenditure on assets is less than

the maximum expenditure limit for such Financial Quarter, an amount equal to

100% of the amount of such shortfall (the “Relevant FQ Amount”) may be carried forward

to the following Financial Quarter in that calendar year only and added to the

maximum expenditure limit specified in Column 2 of paragraph (a) above in

respect of such following Financial Quarter but provided that if such Relevant

FQ Amount is not spent within such following Financial Quarter it shall cease

to be available.  For the purposes of

determining whether the Relevant FQ Amount has been spent in such following

Financial Quarter, it will be presumed that such Relevant FQ Amount is spent

before all of the other Capital Expenditure permitted by paragraph (a) above to

be spent in such following Financial Quarter has been spent;

 

(ii)                     to the extent

that in any calendar year the amount spent in making Capital Expenditure on

assets is less than the maximum expenditure limit for such period, an amount

equal to 50% of the amount of such shortfall (the “Relevant Amount”) may be

carried forward to the following calendar year only and added to the maximum

expenditure limit specified in Column 2 of paragraph (b) above in respect of

such following calendar year (and in respect of any Relevant Amount carried

forward from 2001 to 2002, such Relevant Amount shall be added so that the

maximum capital expenditure permitted in each Financial Quarter in 2002 is

increased pro rata) but provided further that if such Relevant Amount is not

spent within such following calendar year it shall cease to be available.  For the purposes of determining whether the

Relevant Amount has been spent in such following calendar year, it will be

presumed that such Relevant Amount is spent before all of the other Capital

Expenditure permitted by paragraph (b) above (or, in the case of any Relevant

Amount carried forward from 2001 to 2002, paragraph (a) above) to be spent in

such following calendar year has been spent; and

 

(iii)                  an amount of the

Additional Basket may be added to the maximum Capital Expenditure amount

permitted in respect of any calendar year commencing after 31 December 2000,

 

137

 

provided that the

amount of such permitted maximum Capital Expenditure for any calendar year

specified in Column 1 of paragraph (b) above shall not in any event exceed 150%

of the maximum amount which would be permitted to be incurred without any

additional amounts being added to such maximum amount under this paragraph (c).

 

22.4                     Financial

testing

The financial

covenants set out in Clause 22.2 (Financial condition) and the requirements

of Clause 22.3 (Capital Expenditure) shall be tested by reference to each

Compliance Certificate (and the accompanying financial statements) and

Auditor’s Report delivered pursuant to Clause 21.2 (Compliance Certificates).

 

22.5                     Adjustments

Notwithstanding

any other provision of this Agreement, for the purpose of calculating the ratio

of Total Senior Debt to EBITDA and the ratio of Total Debt to EBITDA in

relation to the Relevant Period ending 30 September 2001, EBITDA shall be an

amount equal to EBITDA for the period of 9 months ending on 30 September 2001

multiplied by four and divided by three.

 

23.                           GENERAL

UNDERTAKINGS

The

undertakings in this Clause 23 remain in force from the date of this Agreement

for so long as any amount is outstanding under the Finance Documents or any

Commitment is in force.

 

23.1                     Authorisations

(a)                                      The

Obligor’s Agent and each Obligor shall promptly (and the Obligor’s Agent shall

procure that Newco 2 shall promptly):

 

(i)                        obtain, comply

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

 

(ii)                     supply certified

copies to the Agent of,

 

any

Authorisation required under any law or regulation of its jurisdiction of

incorporation to enable it to perform its obligations under the Finance

Documents and, subject to the Reservations, to ensure the legality, validity,

enforceability or admissibility in evidence in its jurisdiction of

incorporation of any Finance Document.

 

(b)                                     Each

Obligor shall (and the Obligor’s Agent shall ensure that each Material Company

shall):

 

(i)                        ensure that it

has the right and is duly qualified to conduct its business as it is conducted

from time to time in all applicable jurisdictions;

 

(ii)                     obtain, comply

with in all material respects and do all that is necessary to maintain in full

force and effect any Authorisation which is necessary for the conduct of its

business or the business of the Newco 2 Group as a whole; and

 

(iii)                  upon the Agent’s

written request supply the Agent with copies of any such Authorisations.

 

138

 

23.2                     Compliance

with laws

The Obligor’s

Agent and each Obligor shall (and the Obligor’s Agent shall procure that Newco 2

shall) comply in all respects with all laws to which it may be subject, if

failure so to comply would materially impair its ability to perform its

obligations under the Finance Documents.

 

23.3                     Negative

pledge

(a)                                      No

Obligor shall (and the Obligor’s Agent shall ensure that no Material Company

will) create or permit to subsist any Security over any of its assets.

 

(b)                                     No

Obligor shall (and the Obligor’s Agent shall ensure that no Material Company

will):

 

(i)                        sell, transfer

or otherwise dispose of any of its assets on terms whereby they are or may be

leased to or re-acquired by any other member of the Group (other than, for the

avoidance of doubt, any such disposal and consequential lease between members

of the Group);

 

(ii)                     sell, transfer or

otherwise dispose of any of its receivables on recourse terms;

 

(iii)                  enter into any

arrangement under which money or the benefit of a bank or other account may be

applied, set-off or made subject to a combination of accounts; or

 

(iv)                 enter into any other

preferential arrangement having a similar effect,

 

in

circumstances where the arrangement or transaction is entered into primarily as

a method of raising Financial Indebtedness or of financing the acquisition of

an asset.

 

(c)                                      Paragraphs

(a) and (b) above do not apply to Permitted Security.

 

(d)                                     The

Obligor’s Agent shall procure that Newco 2 shall not create or permit to

subsist any Security over any of its assets or any Quasi Security in respect of

any of its assets other than:

 

(i)                        under the

Security Documents;

 

(ii)                     under any

Permitted High Yield Security;

 

(iii)                  under any Permitted

Exchange Notes Security; and

 

(iv)                 under any Permitted

Security falling within paragraphs (c)(i), (j) or (l) of the definition of

Permitted Security.

 

(e)                                      No

Obligor shall (and the Obligor’s Agent shall ensure that no member of the Group

will) create or permit to subsist any Permitted Security falling within

paragraph (m) or (n) of the definition of Permitted Security in Clause 1.1 (Definitions)

over any of its assets where such assets are specifically secured under any

Security Document.

 

23.4                     Loans

and Guarantees

No Obligor

shall (and the Obligor’s Agent shall ensure that no member of the Newco 2 Group

will) make any loans, grant any credit or give any guarantee or indemnity

(except as required 

 

139

 

by the Finance

Documents) to or for the benefit of any person or otherwise voluntarily assume

any liability, whether actual or contingent, in respect of any obligation of

any other person other than Permitted Loans and Guarantees.

 

23.5                     Financial

Indebtedness

(a)                                      No

Obligor shall (and the Obligor’s Agent shall ensure that no member of the Newco

2 Group will) incur, create or permit to subsist or have outstanding any

Financial Indebtedness or enter into any agreement or arrangement whereby it is

entitled to incur, create or permit to subsist any Financial Indebtedness other

than, in either case, Permitted Indebtedness.

 

(b)                                     The

Obligor’s Agent shall ensure that (without double counting) the aggregate of

Total Debt (as defined in Clause 22 (Financial Covenants)) shall at no time

exceed EUR2,250,000,000 (or its equivalent in other currencies, using the

exchange rate quoted in the Financial Times as at the date hereof).

 

23.6                     Acquisitions

Other than the

Acquisition or Permitted Acquisitions no Obligor shall (and the Obligor’s Agent

shall ensure that no member of the Group will):

 

(a)                                      purchase,

subscribe for or otherwise acquire any shares (or other securities or any

interest therein) in, or incorporate, any other company or agree to do any of

the foregoing; or

 

(b)                                     purchase

or otherwise acquire any assets (other than in the ordinary course of business

or pursuant to any Permitted Capital Expenditure) or (without  limitation to any of the foregoing) acquire

any business or interest therein or agree to do so.

 

23.7                     Joint Ventures and Non Wholly-Owned Subsidiaries

(a)                                      The

Obligor’s Agent shall ensure that the aggregate amount of:

 

(i)                        outstanding

loans permitted pursuant to paragraphs (b)(iii) and (d) of the definition of

Permitted Loans and Guarantees;

 

(ii)                     the aggregate

consideration (both cash and non-cash) paid for acquisitions permitted pursuant

to paragraph (e) of the definition of Permitted Acquisitions in relation to

acquisitions of any shares or investments in a Non Wholly-Owned Subsidiary that

is not an Obligor;

 

(iii)                  the aggregate

consideration (both cash and non-cash) paid for acquisitions permitted pursuant

to paragraph (f) of the definition of Permitted Acquisitions;

 

(iv)                 outstanding guarantees

and indemnities permitted pursuant to paragraphs (i)     of the definition of Permitted Loans and Guarantees; and

 

(v)                    outstanding

guarantees and indemnities from MGG or Debtco or a wholly-owned Subsidiary of

MGG or Debtco to a Non Wholly-Owned Subsidiary that is not an Obligor permitted

pursuant to paragraph (j) of the definition of Permitted Loans and Guarantees,

 

140

 

shall not at

any time (the “Relevant Time”) exceed EUR100,000,000 (or its equivalent in

other currencies).

 

(b)                                     Save

as provided in paragraph (c) below, the following shall not count towards the

permitted euro amounts specified in paragraph (a) of this Clause:

 

(i)                        loans to Non

Wholly-Owned Subsidiaries to the extent that they are used to repay Existing

Indebtedness or guarantees of such Existing Indebtedness;

 

(ii)                     equity

investments in Non Wholly-Owned Subsidiaries or MGG Joint Ventures if as a

consequence of making such equity investments such entities become wholly-owned

Subsidiaries of MGG;

 

(iii)                  any Indemnified

Unconsolidated Debt;

 

(iv)                 loans existing on the

Closing Date to Non Wholly-Owned Subsidiaries, MGG Joint Ventures and

Unconsolidated Subsidiaries;

 

(v)                    guarantees and

indemnities existing on the Closing Date in respect of indebtedness of Non

Wholly-Owned Subsidiaries, MGG Joint Ventures and Unconsolidated Subsidiaries;

 

(vi)                 loans permitted

pursuant to paragraph (g) of the definition of Permitted Loans and Guarantees;

 

(vii)              any loans to Non

Wholly-Owned Subsidiaries, MGG Joint Ventures and Unconsolidated Subsidiaries

to the extent they are supported by any Letter of Credit or Bank Guarantee

issued under Revolving Facility II; and

 

(viii)           any guarantee given by MGG

guaranteeing indebtedness owing by any borrower under a Treasury Borrower Loan

Agreement.

 

(c)                                      Any

equity investments of the type referred to in paragraph (b)(ii) above shall,

whilst the entities into which they are contributed are not wholly-owned

Subsidiaries, count towards the relevant euro amount specified in paragraph (a)

above provided that:

 

(i)                        upon all of

the shares of any such entity which are held by members of the MGG Group being

disposed of to non-members of the MGG Group such equity investments which

counted towards such euro amount shall cease to count towards such euro amount;

and

 

(ii)                     (subject to

paragraph (i) of this paragraph (c)) if any such entity becomes a wholly-owned

Subsidiary of MGG, then at the election of the Obligor’s Agent at the time such

entity becomes a wholly-owned Subsidiary of MGG any such equity investments may

remain allocated against the relevant euro amount specified in paragraph (a)

above or be treated as being an amount funded out of the Additional Basket at

that time or count towards the relevant euro amount specified in paragraph (k)

of the definition of Permitted Acquisitions (in relation to the year in which

the relevant expenditure was made) or any combination thereof, but unless such

election is made by the Obligor’s Agent such equity

 

141

 

investments shall be deemed to remain counting towards the relevant

euro amount specified in paragraph (k) of the definition of Permitted

Acquisitions.

 

23.8                     Joint

Ventures

No Obligor

shall, and the Obligor’s Agent shall procure that no member of the Group shall,

enter into or acquire or subscribe (or agree to enter into or acquire or

subscribe) for any shares, stocks, securities or other interest in or transfer

of any assets to or lend to or guarantee or give security for the obligations of

any Joint Ventures, Non Wholly-Owned Subsidiaries that are not Guarantors or

Unconsolidated Subsidiaries of Newco 2 save for Permitted Acquisitions or

Permitted Loans and Guarantees.

 

23.9                     Dividends and distributions

The Obligor’s

Agent shall ensure that no member of the MGG Group will pay, make or declare

any dividend, return on capital, repayment of capital contributions or other

distribution (whether in cash or in kind) or make any distribution of assets or

other payment whatsoever in respect of share capital whether directly or

indirectly, save for Permitted Distributions.

 

23.10               Subordinated

Debt

(a)                                      The

Obligor’s Agent shall ensure that no member of the MGG Group will pay any

interest or return on principal or repayment of principal or other distribution

(in cash or in kind) or make any distribution of assets or other payment

whatsoever in respect of any indebtedness:

 

(i)                        in respect of

any High Yield Proceeds Loan, save as permitted under the High Yield Proceeds

Loan Agreement relating thereto and the High Yield Subordination Agreement

relating thereto;

 

(ii)                     under the

Mezzanine Facility Agreement or the Direct Mezzanine Refinancing Facility, save

as permitted under the terms of the Intercreditor Deed applicable thereto;

 

(iii)                  in respect of any

Newco 2 Loan, save as permitted under the Newco 2 Loan Agreement and the Newco

2 Subordination Agreement relating thereto and save as any such payment is an

MGG Permitted Distribution or a Debtco Permitted Distribution (as the case may

be);

 

(iv)                 in respect of any

Exchange Notes Loan, save as permitted under the Exchange Notes Loan Agreement

relating thereto and Exchange Notes Subordination Agreement relating thereto.

 

(b)                                     MGG

(and, during the Debtco Structure Period, Debtco) shall ensure that it

diligently enforces its rights under any Subordination Agreement.

 

(c)                                      No

Obligor shall (and the Obligor’s Agent shall ensure that no member of the MGG

Group shall) pay, prepay, defease, repay, purchase, exchange or enter into any

sub-participation arrangements in respect of any principal amount or amount

representing capitalised interest under the High Yield Notes other than the

purchase by MGG of an aggregate of EUR 56,292,000 in nominal amount of the

High Yield Notes which were made prior to 1 November 2002.

 

142

 

23.11               Disposals

No Obligor

shall (and the Obligor’s Agent shall ensure that no other member of the Group

will), enter into a single transaction or a series of transactions (whether

related or not) and whether voluntary or involuntary to sell, lease, transfer

or otherwise dispose of any asset other than Permitted Disposals.

 

23.12               Merger

(a)                                      No

Obligor shall (and the Obligor’s Agent shall ensure that no other member of the

Group will) enter into any amalgamation, demerger, merger or corporate

reconstruction unless the Majority Lenders have given their prior written

consent thereto (such consent not to be unreasonably withheld) save that:

 

(i)                        Hoechst Newco

3 may merge into the Company (with the Company being the surviving entity) as

expressly contemplated in the Business Combination Agreement;

 

(ii)                     the Company or

Newco 2 (or both) may be converted from a GmbH (a limited liability company) or

an AG (a stock corporation) (respectively) to a GmbH & Co. KGaA (a partnership

limited by shares) or a KG (a limited partnership) or a GmbH (a limited

liability company);

 

(iii)                  a member of the

Group may merge with another member of the Group pursuant to a solvent

re-organisation provided that (1) MGG may not merge with any of its Holding

Companies, (2) if MGG merges with any of its Subsidiaries MGG shall be the

surviving entity, (3) the Agent is given 30 Business Days’ notice by the

Obligor’s Agent of any such merger and the Majority Lenders do not object to

such merger (on the basis that they believe it would reasonably be expected to

be prejudicial to any Security granted pursuant to the Security Documents) and

(4) the surviving entity of any such merger would be liable for the obligations

of the entity it has merged with.

 

(b)                                     Paragraph

(a) above is subject to the provisions of Clause 23.36 (Limitation on the Lenders’ control over

German Obligors).

 

23.13               Change

of business

(a)                                      The

Obligor’s Agent shall procure that no substantial change is made to the general

nature of the business of the MGG Group from that carried on at the date of

this Agreement.

 

(b)                                     The

Obligor’s Agent shall procure that Newco 2 shall not carry on any business, own

any assets (other than (i) Newco 2’s shareholding in MGG or Debtco, (ii)

rights under Intra-Group Loans permitted pursuant to the terms of this

Agreement and (iii) any claims for rebates or indemnification with respect to

Taxes and (iv) cash at bank) and shall not incur any liabilities of any nature

whatsoever save for: (i) any Security contemplated pursuant to the terms of

this Agreement or the Mezzanine Finance Documents or any Direct Mezzanine

Refinancing Facility; (ii) professional fees and administration costs in the

ordinary course of business; (iii) any liabilities under the Finance Documents,

Mezzanine Finance Documents, any Direct Mezzanine Refinancing Facility or the

High Yield Documents and any Exchange Notes 

 

143

 

Documents; (iv) any liabilities under Intra-Group Loans permitted

pursuant to the terms of this Agreement; (v) any liabilities incurred pursuant

to the Acquisition Documents, (vi) any liabilities under the Newco 2 Receivable

and under any other loans made to Newco 2 from the Company and (vii) any

liabilities in respect of Taxes.

 

(c)                                      Neither

any Treasury Borrower nor Debtco shall carry on any business, own any assets

(other than (i) Debtco’s shareholding in MGG and, (ii) rights under Intra-Group

Loans permitted pursuant to the terms of this Agreement and (iii) cash at bank)

or incur any liabilities of any nature whatsoever save for: (i) any Security

contemplated pursuant to the terms of this Agreement or the Mezzanine Finance

Documents or any Direct Mezzanine Refinancing Facility; (ii) professional fees

and administration costs in the ordinary course of business; (iii) any

liabilities under the Finance Documents, Mezzanine Finance Documents or any

Direct Mezzanine Refinancing Facility; (iv) any liabilities under Intra-Group

Loans permitted pursuant to the terms of this Agreement; and (v) in the case of

Debtco, any liabilities under any High Yield Proceeds Loan Agreement or Newco 2

Loan Agreement or Exchange Notes Loan Agreement to which it is party.

 

(d)                                     The

Obligor’s Agent shall procure that the Company shall not carry on any business,

own any assets (other than (i) its shareholding in Newco 2, (ii) its

shareholding in any Holding Operating Company and (should any Holding Operating

Company cease to be or fail to become a direct Subsidiary of the Company) a

shareholding in one other operating company if such shareholding is reasonably

considered by the Obligor’s Agent to be required for the purposes of German

trade tax consolidation, (iii) the receivable owed by Hoechst Newco 3 on

exercise of the Call Option (as defined in the Business Combination Agreement),

(iv) the Newco 2 Receivable, (v) its rights under the Acquisition Documents and

(vi) cash at bank, (vii) its rights under any loan made to it or by it which is

not prohibited by the terms of this Agreement) and (viii) any claims against

its shareholders with respect to newly issued shares in the Company or incur

any liabilities of any nature whatsoever save for: (i) any liabilities in

respect of Taxes; (ii) any liabilities incurred pursuant to the Acquisition

Documents; (iii) professional fees and administration costs in the ordinary

course of business; (iv) any liabilities under the Finance Documents, Mezzanine

Finance Documents or any Direct Mezzanine Refinancing Facility; (v) any

liabilities under any loans made to it which are not prohibited by the terms of

this Agreement; (vi) any liabilities under subordination agreements

subordinating its claims against any of its Subsidiaries to the Refinancing

Notes and (vii) (for the avoidance of any doubt) obligations to issue share options

and shares pursuant to employee share option plans or otherwise in relation to

shares in the Company.

 

(e)                                      Paragraphs

(a), (b), (c) and (d) above are subject to the provisions of Clause 23.36 (Limitation

on the Lenders’ control over German Obligors)

 

(f)                                        “Neither Messer Griesheim Zwerte Vermögensverwaltungs GmbH Nov

Messer Griesheim Erste Vermögensverwaltungs GmbH shall carry on any business,

own any assets or incur any liabilities of any nature whatsoever other than in

connection with the Sale and Leaseback Transaction.”

 

144

 

23.14               Insurance

(a)                                      Each

Obligor shall (and the Obligor’s Agent shall ensure that each member of the MGG

Group will) maintain insurances on and in relation to its business and assets

with reputable underwriters or insurance companies against those risks and to

the extent as is usual for companies carrying on the same or substantially

similar business in the country or countries in which it owns or leases

property or otherwise conducts its business (including, without limitation,

loss of earnings, business interruption and directors and officers liability

cover where available on a cost-effective basis).

 

(b)                                     Each

Obligor shall (if so requested in writing) supply the Agent with copies of all

insurance policies or certificates of insurance evidencing compliance with

paragraph (a) above or (in the absence of the same) such other evidence of the

existence of such policies as may be reasonably acceptable to the Agent.

 

(c)                                      Each

Obligor shall notify the Agent of any material changes to the insurance cover

it (and, in the case of the Obligor’s Agent, each member of the MGG Group) from

time to time has in place.

 

23.15               Environmental

Compliance

The Obligor’s

Agent shall (and the Obligor’s Agent shall ensure that each member of the MGG

Group will) comply in all material respects with all Environmental Law and

obtain and maintain any Environmental Permits and take all reasonable steps in

anticipation of known or expected future changes to or obligations under the

same, in each case, where failure to do so would reasonably be expected to have

a Material Adverse Effect.

 

23.16               Environmental

Claims

The Obligor’s

Agent shall inform the Agent in writing as soon as reasonably practicable upon

becoming aware of the same:

 

(a)                                      if

any Environmental Claim has been commenced or (to the best of the Obligor’s

Agent’s knowledge and belief) is threatened against any member of the Group; or

 

(b)                                     of

any facts or circumstances which will or are reasonably likely to result in any

Environmental Claim being commenced or threatened against any member of the

Group,

 

where the

claim would reasonably be expected, if determined against that member of the

Group, to have a Material Adverse Effect.

 

23.17               Taxation

(a)                                      Each

Obligor shall (and the Obligor’s Agent shall ensure that each Material Company

will) duly and punctually pay and discharge all material Taxes imposed upon it

or its assets within the time period allowed without incurring penalties (save

to the extent that (i) payment is being contested in good faith, (ii) adequate

reserves are being maintained for those Taxes and (iii) where such payment can

be lawfully withheld).

 

(b)                                     No

Obligor shall (and the Obligor’s Agent shall ensure that no Material Company

will) be materially overdue in the filing of any tax returns.

 

145

 

(c)                                      Each

Obligor shall (and the Obligor’s Agent shall ensure that each member of the

Group will) do all such things as are necessary to ensure that no claims are or

are reasonably likely to be asserted against any member of the Group with

respect to Taxes which would reasonably be expected to have a Material Adverse

Effect.

 

(d)                                     No

Obligor shall (and the Obligor’s Agent shall ensure that no member of the Group

will) enter into any arrangements in relation to Taxes which may give rise to:

 

(i)                        either any

Holding Company of MGG having a claim against any member of the MGG Group,

unless subordinated in a manner confirmed in writing by the Agent as being

satisfactory; or

 

(ii)                     any member of the

MGG Group being liable for any obligation of any Holding Company of MGG,

 

except that

each member of the Group incorporated in Germany may enter into an arrangement

pursuant to which it forms a consolidated group with the Company and/or Newco 2

and/or Debtco for German trade tax and/or German VAT purposes only.

23.18               Security

Each Obligor

shall, at its own expense, take all such action and the Obligor’s Agent shall

ensure that it and Newco 2 and any other member of the Newco 2 Group shall, at

its own expense, take all such action:

 

(a)                                      as

the Agent or the Security Trustee may require (acting reasonably) for the

purpose of perfecting or protecting the Finance Parties’ rights under and

preserving the Security intended to be created or evidenced by any of the

Finance Documents; and

 

(b)                                     as

the Agent or the Security Trustee may require following the making of any

declaration pursuant to Clause 24.15 (Acceleration) for facilitating the

realisation of any such Security or any part thereof.

 

23.19               Pensions

(a)                                      The

Obligor’s Agent will, if requested by the Agent, deliver to the Agent at such

time as those reports are prepared in order to comply with then current

statutory or auditing requirements (if any), actuarial reports in relation to

the pension schemes for the time being operated by members of the Group.

 

(b)                                     The

Obligor’s Agent shall (and shall procure that each member of the Group will)

ensure that all pension schemes applicable to it are fully funded (where

required by applicable law) based on reasonable actuarial assumptions and are

administered and funded in accordance with applicable law where failure to do

so would reasonably be expected to have a Material Adverse Effect.

 

23.20               Access

The Obligor’s

Agent shall ensure that any one or more representatives, agents and advisers of

the Agent will, on reasonable grounds and with reasonable prior notice (but not

more often than once during each financial year of Newco 2 unless the Agent

reasonably believes that an Event of Default has occurred), be allowed to have

access to the assets, books, records and 

 

146

 

premises of

each member of the Group and to inspect the same during normal business hours

(at the expense of the Obligor’s Agent).

 

23.21               Preservation

of assets

Each Obligor

shall (and the Obligor’s Agent shall ensure that each member of the Group will)

maintain and preserve all of its assets that are necessary in the conduct of

the business of the MGG Group (taken as a whole) as conducted at the date of

this Agreement in good working order and condition, ordinary wear and tear

excepted and where failure to do so would reasonably be expected to have a

Material Adverse Effect.

 

23.22               Intellectual

Property

Each Obligor

shall (and the Obligor’s Agent shall ensure that each member of the Group

will), save where failure to do so would not reasonably be expected to have a

Material Adverse Effect:

 

(a)                                      make

such registrations and pay such fees and other amounts as are necessary to keep

those registered Intellectual Property Rights of the Group in force and to

record its interest in those Intellectual Property Rights;

 

(b)                                     observe

and comply with all material obligations and laws to which it in its capacity

as registered proprietor, beneficial owner, user, licensor or licensee of the

Intellectual Property Rights (or any part thereof) is subject;

 

(c)                                      do

all acts as are reasonably practicable (including, without limitation, the

institution of legal proceedings) to maintain, protect and safeguard the

Intellectual Property of the Group as a whole; and

 

(d)                                     not

terminate or discontinue the use of any such Intellectual Property save that

licensing arrangements in relation to such Intellectual Property may be entered

into provided

that such licensing arrangements:

 

(i)                        do not allow

any further sub-licensing by the licensee; and

 

(ii)                     do not have a

material adverse effect on the value of any of the Intellectual Property

licensed under such.

 

23.23               Vendor Warranties and Acquisition Closing Conditions

(a)                                      The

Obligor’s Agent shall ensure that the Company and any other relevant Obligor

will diligently pursue all material claims for breach of contract or warranty

by, or misrepresentation by, or indemnity or other claim against the Vendor or

any of the Vendor’s Affiliates under or in connection with any Acquisition

Documents, unless the Agent (acting on the instruction of the Majority Lenders)

has consented in writing to such claim not being made.

 

(b)                                     If

the Majority Lenders (through the Agent) notify the Obligor’s Agent that in

their opinion one or more of the Acquisition Closing Conditions has not been

satisfied the Obligor’s Agent shall ensure that the Company shall promptly

exercise its rights under the Acquisition Documents in relation to the non-satisfaction

of such Acquisition Closing Condition(s).

 

147

 

23.24               Amendments

Neither the

Obligor’s Agent nor any relevant Obligor shall (and the Obligor’s Agent shall

ensure that the Company shall not) amend, vary, novate, supplement or terminate

any of the Acquisition Documents, the Shareholders’ Agreement, any of the

Mezzanine Finance Documents, any documents relating to any Direct Mezzanine

Refinancing, any Exchange Notes Documents, any Exchange Notes Loan Agreement

any of the High Yield Documents, any High Yield Proceeds Loan Agreement, any

Newco 2 Loan Agreement, any Subordination Agreement, the constitutional

documents or any other document delivered to the Agent pursuant to Clause 4 (Conditions

of Utilisation) or Clause 26 (Changes to the Obligors) or waive any

right thereunder other than:

 

(a)                                      any

amendment, variation or waiver which is of a minor or technical nature; or

 

(b)                                     any

amendment, variation or waiver which could not reasonably be expected to have

an adverse effect on the rights of the Finance Parties under the Finance

Documents or be prejudicial to the interests of the Finance Parties under the

Finance Documents; or

 

(c)                                      (in

the case of any of the Mezzanine Finance Documents or any documents relating to

any Direct Mezzanine Refinancing) any amendment, variation, novation or

supplement thereto which is not expressly prohibited under the terms of the

applicable Intercreditor Deed;

 

(d)                                     (in

the case of the High Yield Documents) any amendment, variation, novation,

supplement of any such High Yield Document or waiver of any right thereunder

which is not inconsistent with the definition of High Yield Notes in Clause 1.1

(Definitions);

or

 

(e)                                      in

respect of the Mezzanine Finance Documents, the termination thereof in

circumstances where the Mezzanine Outstandings have either:

 

(i)                        been fully

refinanced by the proceeds of High Yield Proceeds Loans or any Direct Mezzanine

Refinancing; or

 

(ii)                     been fully

replaced by Exchange Notes;

 

(f)                                        in the case of any High Yield Proceeds Loan Agreement, Newco 2 Loan

Agreement or any relevant Subordination Agreement, any amendment, variation,

novation, supplement of any such agreement which is required to ensure that the

Debtco Introduction Date or the Debtco Exit Date occurs or (in the case of the

High Yield Proceeds Loan Agreement only) any change which is permitted to be

made under the terms of the High Yield Subordination Agreement;

 

(g)                                     in

the case of any Exchange Notes Loan Agreement, any change which is permitted to

be made under the terms of the Exchange Notes Subordination Agreement;

 

(h)                                     in

the case of any Exchange Notes Documents, any amendment, variation, novation or

supplement of any such document or waiver of any right thereunder which is not

inconsistent with the definition of Exchange Notes in Clause 1.1 (Definitions);

 

(i)                                         as expressly permitted or required pursuant to any Finance Document;

 

148

 

(j)                                         as consented to in writing by the Majority Lenders, it being noted

that in the event of any request for the increase of capital (Stammkapital) of

any German Obligor which is constituted in the form of a GmbH as a result of

any such capital increase the maximum amount that may be claimed against such

German Obligor under any guarantee or security provided by such German Obligor

may be reduced pursuant to paragraph (f) of Clause 19.9 (Limitation on German Obligor Guarantee)

of this Agreement and corresponding provisions in the relevant Security

Documents to which such German Obligor is a party.

 

23.25               Transactions with Related Parties

No Obligor

shall (and the Obligor’s Agent shall ensure that no member of the MGG Group

will) enter into any arrangement or contract with any of its Related Parties

other than where:

 

(a)                                      both

parties to the arrangement are members of the MGG Group;

 

(b)                                     such

arrangement or contract is entered into on an arm’s length basis in good faith

and in the commercial interests of the members of the MGG Group party thereto;

or

 

(c)                                      such

arrangement or contract is expressly permitted under the terms of the Finance

Documents.

 

23.26               Fees

and commissions

No Obligor

shall (and the Obligor’s Agent shall ensure that no member of the Group will)

pay any fees or commissions to any person other than:

 

(a)                                      any

fees payable on arm’s length terms to third parties who have rendered service

or advice to such Group member required by such Group member in the ordinary

course of business;

 

(b)                                     non-executive

director fees payable to any non-executive directors of any member of the

Group; and

 

(c)                                      as

required under the Finance Documents, the Mezzanine Finance Documents, any

Direct Mezzanine Refinancing Facility, any Exchange Notes Documents or the High

Yield Documents; and

 

(d)                                     any

fees payable in connection with the Acquisition or the Finance Documents or the

Mezzanine Finance Documents or the Direct Mezzanine Refinancing Facility or the

High Yield Documents or the Exchange Notes Documents.

 

23.27               Treasury

Transactions

No Obligor

shall (and the Obligor’s Agent shall ensure that no member of the Group will)

enter into any Treasury Transaction which is not a Permitted Treasury

Transaction.

 

23.28               The

Acquisition

The Obligor’s

Agent shall (and shall ensure that each member of the Group will):

 

(a)                                      in

relation to the Acquisition, comply in all material respects with all material

applicable laws and all material requirements of relevant regulatory

authorities;

 

149

 

(b)                                     at

the request of the Agent, provide the Agent with any material information in

its possession relating to the Acquisition;

 

(c)                                      use

reasonable endeavours to ensure that no publicity material, press releases or

other public documents in relation to the Acquisition (other than those

required by law or regulation) are published or released by or on behalf of it,

or by its advisers which refer to any of the Finance Parties, the Finance

Documents or the Facilities, unless such reference and the context in which it

appears have previously been approved by the Agent (such approval not to be

unreasonably withheld or delayed); and

 

(d)                                     not

withhold its consent, after the Closing Date, to any reasonable request by the

Agent or the Arrangers to publicise the Facilities and the involvement of all

or any of the Finance Parties in the Facilities and the transactions

contemplated thereby.

 

 

23.29               Hedging

The Obligor’s

Agent and the Borrowers shall procure that Borrowers approved by the Agent

shall, in accordance with the terms of the Hedging Letter, enter into Hedging

Agreements (satisfactory to the Agent (acting reasonably)) which:

 

(a)                                      satisfy

the requirements of the Hedging Letter; and

 

(b)                                     rank

pari

passu with the claims of the Finance Parties under the Finance

Documents.

 

23.30               Guarantor Group and Security Coverage

(a)                                      Subject

to paragraph (d) of this Clause 23.30, the Obligor’s Agent shall ensure that as

at the end of each calendar year (beginning with the calendar year ended 31

December 2001):

 

(i)                        the aggregate

(without double counting) of (1) the EBITDA of each of the Guarantors (but

ignoring losses before interest and tax of any Guarantor) and (2) the EBITDA of

each Consolidated Subsidiary of MGG which is not a Guarantor (but ignoring any

losses before interest and tax of that Consolidated Subsidiary) in respect of

which 95% or more of its voting and issued share capital is pledged pursuant to

a Security Document (the Guarantors referred to in paragraph (1) of this

paragraph (a)(i) taken together with the Subsidiaries referred to in paragraph

(2) of this paragraph (a)(i) being collectively referred to as the “Security

Parties”); and

 

(ii)                     the aggregate

gross assets (without double counting and excluding assets which are not

included on consolidation) of the Security Parties,

 

shall equal or

exceed (in the case of paragraph (a)(i) above) 75 per cent. of the consolidated

EBITDA and (in the case of paragraph (a)(ii) above) 60 per cent. of the

consolidated gross assets of the Newco 2 Group, each as determined by reference

to the most recent Compliance Certificate and Auditor’s Report delivered

pursuant to Clause 21.2 (Compliance Certificates) in connection

with the financial statements delivered pursuant to paragraph (a)(i) or

(a)(iii) and (if relevant) paragraph (d)(i) or (d)(iii) of Clause 21.1 (Financial

statements).

 

150

 

(b)                                     Subject

to paragraph (d) of this Clause 23.30, the Obligor’s Agent shall ensure that as

at the end of each calendar year (beginning with the calendar year ending 31

December 2001):

 

(i)                        the aggregate

(without double counting) of the EBITDA of each of the Guarantors (but ignoring

losses before interest and tax of any Guarantor); and

 

(ii)                     the aggregate

gross assets (without double counting and excluding assets which are not

included on consolidation) of the Guarantors,

 

shall equal or

exceed (in the case of paragraph (b)(i) above) 65 per cent. of the consolidated

EBITDA and (in the case of paragraph (b)(ii) above) 55 per cent. of the

consolidated gross assets of the Newco 2 Group, each as determined by reference

to the most recent Compliance Certificate and Auditor’s Report delivered

pursuant to Clause 21.2 (Compliance Certificates) in connection

with the financial statements delivered pursuant to paragraph (a)(i) or

(a)(iii) and (if relevant) paragraph (d)(i) or (d)(iii) of Clause 21.1 (Financial

statements).

 

(c)                                      For

these purposes, EBITDA in relation to the Newco 2 Group is calculated as

defined in Clause 22.2 (Financial definitions) and EBITDA of any

Security Party shall be calculated on the same principles as that definition

but on an unconsolidated basis.

 

(d)                                     If

a Compliance Certificate or Auditor’s Report delivered pursuant to Clause 21.2

(Compliance

Certificates) in connection with the financial statements delivered

pursuant to paragraph (a) (i) or (d) (i) and/or paragraph (a) (iii) or (d)

(iii) of Clause 21.1 (Financial Statements) shows that any of

the requirements of paragraphs (a) or (b) 

of this Clause 23.30 are not satisfied, then it shall not be treated as

a breach of this Clause 23.30 nor shall a Default occur under Clause 24.3 (Other

obligations) in relation to such non satisfaction if on or before

the date falling 60 days after delivery of such Compliance Certificate or

Auditor’s Report either the managing director or two board members of Newco 2

provide a certificate to the Agent (on behalf of the Finance Parties) (together

with any supporting documentation reasonably requested by the Agent) certifying

that the failure to satisfy the percentage requirements of paragraphs (a) and

(b) above was due to the sale of member(s) of the MGG Group with negative

EBITDA or the following conditions are satisfied:

 

(i)                        additional

member(s) of the MGG Group become Additional Guarantor(s) in accordance with

Clause 26.4 (Additional Guarantors); and/or

 

(ii)                     additional Security

Document(s) are entered into creating pledge(s) over a Consolidated Subsidiary

or Consolidated Subsidiaries of MGG which are not Guarantors in respect of

which 95% or more (or, in the case of Messer Carburos S.A., 89% or more) of its

voting and issued share capital are pledged pursuant to such Security

Document(s) (and the Agent is provided with legal opinions satisfactory to it

(acting reasonably) in relation to each such Security Document from its legal

counsel in relation to the law of the jurisdiction of incorporation of the

pledgor and the law governing the Security Document)

 

151

 

(the

Additional Guarantors referred to in paragraphs (i) and the Consolidated

Subsidiaries referred to in paragraph (ii) of this paragraph (d) being

collectively referred to as the “Top Up Security Parties”); and

 

(iii)                  any Prokurist of

Newco 2 provides a certificate addressed to the Agent (on behalf of itself and

the Finance Parties) confirming (1) the EBITDA of each of the Top Up Security

Parties (ignoring losses before interest and tax) and (2) the aggregate gross

assets of each of the Top Up Security Parties in respect of the applicable

calendar year and (3) that if the Top Up Security Parties had been taken into

account as Security Parties or Guarantors (as the case may be) for the purposes

of Clause 23.30 (a) and (b) for the applicable calendar year then:

 

(A)            the

aggregate (without double counting) of the EBITDA of each of the Security

Parties (but ignoring losses before interest and tax of any Security Party) and

the aggregate gross assets (without double counting) of the Security Parties as

at the end of the applicable calendar year equalled or exceeded (as

appropriate) 80% of the consolidated EBITDA and 65% of the consolidated gross

assets of the Newco 2 Group; and

 

(B)              the

aggregate (without double counting) of the EBITDA of each of the Guarantors

(but ignoring losses before interest and tax of any Guarantor) and the

aggregate gross assets (without double counting) of the Guarantors equalled or

exceeded (as appropriate) 70% of the consolidated EBTIDA and 60% of the

consolidated gross assets of the Newco 2 Group; and

 

(iv)                 the auditors of Newco

2 provide a report addressed to the Agent (on behalf of the Finance Parties)

confirming the calculations set out in the certificate referred to in paragraph

(iii) of this paragraph (d).

 

(e)                                      The

Obligor’s Agent shall not be required to meet any of the above requirements of

this Clause 23.30 to the extent that it satisfies the Agent that it cannot meet

such requirements by reason of legal or regulatory impediment which are beyond

its or any member of the Newco 2 Group’s control or the factors referred to in

paragraph 4(a) of Schedule 15 (Security Principles). The Obligor’s Agent shall

use reasonable endeavours to ensure that relevant members of the Newco 2 Group

do all that is necessary in order to ensure that such relevant members of the

Newco 2 Group can become an Additional Guarantor and/or grant a pledge over

shares in a Consolidated Subsidiary (as the case may be).

 

(f)                                        Without prejudice to its obligations under paragraphs (a), (b) and

(d) above, the Obligor’s Agent shall procure that each person that is at any

time a Guarantor under (and as defined in) the Mezzanine Facility Agreement or

a guarantor of any of the Direct Mezzanine Refinancing is also a Guarantor

under this Agreement at that time.

 

23.31               Accounting reference date

The Obligor’s

Agent shall ensure that Newco 2 retains (and shall ensure that each member of

the Newco 2 Group will retain) 31 December as its accounting reference date and

shall not change the duration of any of its financial years, save that:

 

152

 

(a)                                      Newco

2 and its Subsidiaries incorporated in Germany may change their accounting

reference dates to the first Quarter Date after the Closing Date provided

that the Obligor’s Agent shall use all reasonable endeavours to

ensure that after any such change the accounting reference dates of Newco 2 and

each of its Subsidiaries incorporated in Germany are, as soon as reasonably

practicable, changed back to 31 December 2001; and

 

(b)                                     Newco

2 and its Subsidiaries incorporated in Germany may change their accounting

reference dates to the first Quarter Date following the completion of the

transactions contemplated by the Business Combination Agreement relating to the

transfer of 662/3% of the shares of Newco 2 to Hoechst

Newco 3 and then the transfer of the shares of Hoechst Newco 3 to the Company, provided

that the Obligor’s Agent shall use all reasonable endeavours to

ensure that after any such change the accounting reference dates of Newco 2 and

each of its Subsidiaries incorporated in Germany are, as soon as reasonably

practicable, changed back to 31 December 2002.

 

23.32               Revised

Group structure

If the

Obligor’s Agent or an Obligor becomes aware of any inaccuracies (as at the

Closing Date) in the Group Structure Chart delivered to the Agent pursuant to

Clause 4 (Conditions

of Utilisation) it will deliver to the Agent as soon as is

reasonably practicable thereafter a revised structure chart for the Group

(covering the same categories of information as the Group Structure Chart).

 

23.33               Syndication

The Obligor’s

Agent shall provide reasonable assistance to the Arrangers in the preparation

of the Information Memorandum and the primary and general syndication of the

Facilities (including, without limitation, by making senior management

available for the purpose of making presentations to, or meeting, potential

lending institutions) and will comply with all reasonable requests for

information from potential syndicate members prior to completion of

syndication.  The Obligor’s Agent and

each Obligor agree to be bound by the terms and conditions of the Syndication

Letter.

 

23.34               Federal Reserve Regulations

The Obligor’s

Agent shall procure that each Borrower which is a US Group Member will use the

Facilities without violating Regulations T, U and X.

 

23.35               Compliance

with ERISA

The Obligor’s

Agent shall procure that each US Group Member and each ERISA Affiliate (each a

“Relevant

Company”) shall not cause or permit to occur (a) an event which

would result in the imposition of Security under Section 412 of the Code or

Section 302 or 4068 of ERISA or (b) an ERISA Event that would reasonably be

expected to have a Material Adverse Effect.

 

23.36               Limitation on the Lenders’ control over German

Obligors

(a)                                      The

provisions of Clause 23.12 (Merger) and Clause 23.13 (Change of

business) (the “Relevant Restrictive Undertakings”) shall

only apply to each German Obligor in the following manner:

 

153

 

(i)                        each German

Obligor shall give the Agent no less than twenty Business Days’ prior written

notice of the intention of it to carry out any acts or take any steps

inconsistent with the Relevant Restrictive Undertakings;

 

(ii)                     the Agent shall

be entitled within ten Business Days of receipt of such a notice from a German

Obligor to request that such German Obligor supply the Agent with any relevant

information in connection with the proposed action or steps referred to in such

notice; and

 

(iii)                  the Agent shall, if

it decides that the proposed action or steps set out in such notice would

reasonably be expected to be materially prejudicial to the interests of the

Finance Parties under the Finance Documents, notify the relevant German Obligor

of such a decision within twenty Business Days of its receipt of such a notice.

 

(b)                                     If:

 

(i)                        the Agent

notifies a German Obligor that the proposed action or steps set out in a notice

delivered by such German Obligor pursuant to paragraph (a) above would

reasonably be expected to be materially prejudicial to the interests of the

Finance Parties under the Finance Documents; and

 

(ii)                     the relevant

German Obligor nevertheless proceeds to carry out such proposed action or

steps,

 

the Agent

shall be entitled to (and, if so instructed by the Majority Lenders, shall)

exercise all or any of its rights under Clause 24.15 (Acceleration).

 

23.37               Conditions

Subsequent

(a)                                      The

Obligor’s Agent shall (and shall procure that each Initial Guarantor will) use

its best efforts to obtain all releases and perform all other acts required to

discharge in full the Security which secures any Financial Indebtedness which

is to be repaid as a condition precedent under paragraph 5(g) of Part I of

Schedule 2 (Conditions

Precedent) on or before the Closing Date, and in any event the

Obligor’s Agent shall ensure that all such releases are obtained and shall

perform all such other acts within 30 days of the Closing Date.

 

(b)                                     The

Obligor’s Agent shall use its best endeavours to procure that the following

reports from KPMG are provided as soon as reasonably practicable after the

Closing Date (together with Reliance Letters relating thereto) in form and substance

satisfactory to the Arrangers (acting reasonably):

 

(i)                        a report

discussing the Business Plan and its underlying assumptions (the “Projections

Report”); and

 

(ii)                     a report

discussing the results of the MGG Group in the year 2000 (the “2000 Outturn

Report”).

 

154

 

(c)                                      The

Obligor’s Agent shall procure that the Original Financial Statements of MGG are

delivered to the Agent as soon as reasonably practicable and in any event

within 10 days of the Closing Date.

 

23.38               Total

Debt Relief Amount

The Obligor’s

Agent shall ensure that the aggregate of the amount of the Term Disposal

Facility which has been repaid and Relevant Debt Relief Amount as at the Term

Disposal Facility Repayment Date is equal to or greater than EUR255,000,000 (or

its equivalent in other currencies).

 

23.39               Debtco

Exit Date

If for any

reason, after the Debtco Introduction Date, no German thin capitalisation would

apply if the Debtco Exit Date were to occur, then at the request of the Majority

Lenders the Obligor’s Agent shall use all reasonable endeavours to ensure that

the Debtco Exit Date occurs.

 

23.40               Payments under Debtco Intra-Group Loans

Notwithstanding

any other provision of any Finance Document, Debtco and MGG shall ensure that

each payment in respect of principal under any Intra-Group Loan to which Debtco

is the lender and MGG is the borrower is either immediately used to reduce the

Outstandings or the Mezzanine Outstandings (unless prohibited by the terms of

the Intercreditor Deed) or placed in a bank account in Germany of Debtco which

is subject to a Security Document.

 

24.                           EVENTS OF

DEFAULT

Each of the

events or circumstances set out in this Clause 24 is an Event of Default.

 

24.1                     Non-payment

An Obligor

does not pay on the due date any amount payable pursuant to a Finance Document

at the place at and in the currency in which it is expressed to be payable

unless:

 

(a)                                      its

failure to pay is caused by administrative or technical error; and

 

(b)                                     payment

is made within three Business Days of its due date.

 

24.2                     Financial

covenants

Any

requirement of Clause 22 (Financial covenants) is not satisfied.

 

24.3                     Other

obligations

(a)                                      An

Obligor or the Company or Newco 2 does not comply with any provision of

the Finance Documents (other than those referred to in Clause 24.1 (Non-payment)

and Clause 22 (Financial covenants)).

 

(b)                                     No

Event of Default under paragraph (a) above in relation to Clause 23.1 (Authorisation),

Clause 23.2 (Compliance with laws), Clause 23.14 (Insurance), Clause 23.15 (Environmental

Compliance), Clause 23.16 (Environmental Claims), Clause 23.17 (Taxation),

Clause 23.18 (Security), Clause 23.19 (Pensions), 23.20 (Access), Clause 23.21 (Preservation

of assets), Clause 23.22 (Intellectual Property), Clause 23.23 (Vendor

Warranties and Acquisition Closing Conditions), Clause 23.28 (The

Acquisition), Clause 23.32 (Revised Group structure), Clause 23.33 (Syndication)

or Clause 23.35 (Compliance with ERISA) will occur if the failure to comply

is capable of remedy and is remedied within twenty one Business Days of the

 

155

 

earlier to occur of the date of the Agent giving notice to the

Obligor’s Agent or the Obligor’s Agent becoming aware of the failure to comply.

 

24.4                     Misrepresentation

Any

representation or written statement made or deemed to be made by an Obligor or

the Company or Newco 2 in the Finance Documents or any other document

delivered by or on behalf of any Obligor or the Company under or in connection

with any Finance Document is or proves to have been incorrect or misleading in

any material respect when made or deemed to be made unless (save in relation to

the Closing Representations) the underlying circumstances (if capable of

remedy) are remedied within twenty one Business Days of the earlier to occur of

the date of the Agent giving notice to the Obligor’s Agent or the Obligor’s

Agent becoming aware of such underlying circumstances.

 

24.5                     Cross

default

(a)                                      Any

Financial Indebtedness of any Material Company is not paid when due nor within

any originally applicable grace period.

 

(b)                                     Any

Financial Indebtedness of any Material Company is declared to be or otherwise

becomes due and payable prior to its specified maturity as a result of an event

of default (however described).

 

(c)                                      Any

commitment for any Financial Indebtedness of any Material Company is cancelled

or suspended by a creditor of such Material Company as a result of an event of

default (however described).

 

(d)                                     Any

creditor of any Material Company becomes entitled to declare any Financial

Indebtedness of such Material Company due and payable prior to its specified

maturity as a result of an event of default (however described).

 

(e)                                      No

Default will occur under this Clause 24.5 if:

 

(i)                         the aggregate

amount of Financial Indebtedness or commitment for Financial Indebtedness

falling within paragraphs (a) to (d) above is less than EUR10,000,000 (or its

equivalent in any other currency or currencies); or

 

(ii)                     such Financial

Indebtedness is repaid in full within 10 days of the earlier to occur of the

date of the Agent giving notice to the Obligor’s Agent of such event or

circumstance or the Obligor’s Agent becoming aware of such event or

circumstance.

 

(f)                                        For the purposes of this Clause 24.5, to the extent that any Financial

Indebtedness is supported by a Letter of Credit or Bank Guarantee issued under

this Agreement or the creditor of any Financial Indebtedness has been provided

with first priority security over a deposit in a bank account securing such

Financial Indebtedness, then the amount of such Financial Indebtedness which is

supported by such Letter of Credit or Bank Guarantee or security shall not

count as Financial Indebtedness for so long as such Letter of Credit or Bank

Guarantee or security remains in force.

 

156

 

24.6                     Insolvency

(a)                                      Any

Material Company (other than a German Group Member) is unable or admits

inability to pay its debts as they fall due or suspends making payments on any

of its debts.

 

(b)                                     The

value of the assets of any Material Company (other than a German Group Member)

is less than its liabilities (taking into account contingent and prospective

liabilities).

 

(c)                                      The

Company or any German Group Member who is a Material Company ceases or suspends

generally payment of its debts or publicly announces an intention to do so (or

is deemed for the purposes of any law applicable to it to be) or is over

indebted (Überschuldung)

within the meaning of section 19 of the German Insolvency Code or unable or

deemed unable to pay its debts as they fall due (Zahlungsunfähigkeit or drohende

Zahlungsunfähigkeit).

 

(d)                                     Any

event occurs or proceedings are taken with respect to the Company or any

Material Company which has a similar or equivalent effect to any of the provisions

set out in paragraphs (a) to (c) above.

 

(e)                                      The

Company or any Material Company, by reason of actual or anticipated financial

difficulties, commences negotiations with one or more of its creditors with a

view to rescheduling any of its indebtedness.

 

(f)                                        A moratorium is declared in respect of any indebtedness of the

Company or any Material Company.

 

24.7                     Insolvency

proceedings

Any corporate

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

 

(a)                                      the

suspension of payments, a moratorium of any indebtedness, winding-up,

dissolution, administration or reorganisation (by way of voluntary arrangement,

scheme of arrangement or otherwise) of the Company or any Material Company

other than a solvent liquidation or reorganisation of any Material Company

(other than Newco 2) which is not an Obligor;

 

(b)                                     a

composition, assignment or arrangement with any creditor of the Company or any

Material Company;

 

(c)                                      the

appointment of a liquidator (other than in respect of a solvent liquidation of

a Material Company (other than Newco 2) which is not an Obligor), receiver,

administrator, administrative receiver, compulsory manager or other similar

officer in respect of the Company or any Material Company or any of its assets;

or

 

(d)                                     enforcement

of any Security over any assets having a value greater than EUR10,000,000 (or

its equivalent in any other currency or currencies) of any Material Company,

 

or any

analogous procedure or step is taken in any jurisdiction.

 

157

 

(e)                                      No

Event of Default will occur under this Clause 24.7 if the Majority Lenders

(acting reasonably) are satisfied that the Company or the relevant Material

Company (as the case may be) is contesting in good faith and by appropriate

proceedings the relevant corporate action, legal proceedings or other procedure

or step and that it is reasonably likely that such action, proceedings or steps

will be discharged within 60 days of their commencement.

 

24.8                     Creditors’

process

Any

expropriation, attachment, sequestration, distress or execution affects any

asset or assets of a Material Company having an aggregate value of

EUR10,000,000  (or its equivalent in any

other currency or currencies) and is not discharged within 60 days.

 

24.9                     Transaction

Security

(a)                                      Any

Obligor, the Company or Newco 2 fails to perform or comply with any of the

material obligations assumed by it in the Security Documents.

 

(b)                                     At

any time any of the Transaction Security is or becomes unlawful or (subject to

the Reservations) is not, or ceases to be, legal, valid, binding or enforceable

or otherwise ceases to be effective, in a manner and to an extent which the

Majority Lenders reasonably consider to be materially prejudicial to the

interests of the Finance Parties under the Finance Documents.

 

(c)                                      No

Event of Default will occur under paragraph (a) of this Clause 24.9 if the

failure is capable of remedy and it is remedied within 21 Business Days of the

earlier of the date the Agent gives notice to the Obligor’s Agent or the Obligor’s

Agent becoming aware of the failure to comply.

 

24.10               Other

indebtedness

Any event of

default (howsoever described) occurs under the Mezzanine Facility Agreement or

any High Yield Notes or any Direct Mezzanine Refinancing or any Exchange Notes.

 

24.11               Subordination Agreements

Any party to

any Intercreditor Deed or any Subordination Agreement or any Newco 2 Loan

Agreement or any High Yield Proceeds Loan Agreement or any Exchange Notes Loan

Agreement (other than any Finance Party) fails to comply with its obligations

under any such agreement in a manner which is reasonably likely to be

materially prejudicial to the interests of any Finance Party under the Finance

Documents.

 

24.12               Unlawfulness

It is or

becomes unlawful for an Obligor to perform any of its obligations under the

Finance Documents in circumstances or to an extent which the Majority Lenders

reasonably consider to be material prejudicial to the interests of any Finance

Party under the Finance Documents.

 

24.13               Repudiation

An Obligor

repudiates a Finance Document or any of the Transaction Security or evidences

an intention to repudiate a Finance Document or any of the Transaction

Security.

 

24.14               Material

adverse change

Any event or

circumstance occurs which would reasonably be expected to have a Material

Adverse Effect.

 

158

 

24.15               Acceleration

Subject to

Clause 24.16 (Closing Period) and 24.17 (Clean-Up Period) on and at

any time after the occurrence of an Event of Default which is continuing, or

otherwise in accordance with Clause 23.36 (Limitation on the Lenders’ control over German

Obligors), the Agent may, and shall if so directed by the Majority

Lenders, by notice to the Obligor’s Agent:

 

(a)                                      cancel

the Total Commitments whereupon they shall immediately be cancelled;

 

(b)                                     declare

that all or part of the Loans, 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;

 

(c)                                      declare

that all or part of the Loans be payable on demand, whereupon they shall

immediately become payable on demand by the Agent on the instructions of the

Majority Lenders;

 

(d)                                     exercise,

or direct the Security Trustee to exercise, all or any of its or, as the case

may be, the Security Trustee’s rights, remedies, powers or discretions under

any of the Finance Documents; and/or

 

(e)                                      require

the Borrowers to:

 

(i)                        procure that

the liabilities of each of the Lenders and the Fronting Banks under each Letter

of Credit and Bank Guarantee are promptly reduced to zero; or

 

(ii)                     provide Cash

Collateral for each Letter of Credit and Bank Guarantee in an amount specified

by the Agent and in the currency of that Letter of Credit or, as the case may

be, Bank Guarantee.

 

24.16               Closing

Period

During the

Closing Period none of the Finance Parties shall be entitled to take any action

under Clause 24.15 (Acceleration) or rescind, terminate or

cancel this Agreement or the Facilities unless:

 

(i)                        a Closing

Event of Default has occurred which is continuing; and/or

 

(ii)                     the Acquisition

Closing Conditions have not been satisfied or have been waived (either

partially or entirely) by the Company or MGG (unless (notwithstanding the

Acquisition Closing Conditions not having been so satisfied without being

partially or entirely waived by the Company or MGG (except in accordance with

Clause 23.24 (Amendments))) the Company is obliged pursuant to the terms

of the Business Combination Agreement to consummate the MGG Acquisition on the

Closing Date), and/or

 

(iii)                  any of the Closing

Representations made or deemed to be made by the Obligor’s Agent and each

Obligor are not true in all material respects,

 

provided that

immediately upon the expiry of the Closing Period (subject to Clause 24.17 (Clean-Up

Period)) all such rights, remedies and entitlements which would have

been available to the Finance Parties but for this Clause 24.16 shall be

available 

 

159

 

to the Finance

Parties notwithstanding that they may not have been used or available for use

during the Closing Period.

 

24.17               Clean-Up

Period

Until the

Clean-Up Date, the Events of Default set out in Clause 24.3 (Other

obligations) (save in so far as it relates to Clause 23.37 (Conditions Subsequent)),

Clause 24.4 (Misrepresentation) and Clause 24.5 (Cross default) shall not

apply to any member of the MGG Group if reasonable steps are being taken by the

Obligor’s Agent and (as appropriate) any member of the MGG Group to cure any

such Event of Default, unless such Event of Default:

 

(i)                        is reasonably

likely to have a material adverse effect on the ability of any Obligor to

perform its payment obligations under the Finance Documents; or

 

(ii)                     has been

procured, or approved, by any Holding Company of MGG or any of the Obligors

(other than by way of any such company entering into any of the Transaction

Documents).

 

160

 

SECTION 9

 

CHANGES TO PARTIES

 

25.                           CHANGES

TO THE LENDERS

 

25.1                     Assignments and transfers by the Lenders

Subject to

this Clause 25, a Lender (the “Existing Lender”) may:

 

(a)                                      assign

any of its rights; or

 

(b)                                     transfer

by novation any of its rights and obligations,

 

to another

person (the “New Lender”).  The

Agent shall maintain a book-entry registration transfer system (the “Register”)

for the purposes of all assignments and transfers made pursuant to this Clause

25.

 

25.2                     Conditions of assignment or transfer

(a)                                      The

consent of neither the Obligor’s Agent nor any other Obligor is required for an

assignment or transfer by a Lender.

 

(b)                                     The

consent of the Bookrunners is required for an assignment or transfer by a

Lender at any time prior to the last Syndication Date, save that no such

consent is required for an assignment or transfer by a Lender to any of its

Affiliates.

 

(c)                                      If

a Lender wishes to enter into an assignment or transfer in relation to a

Revolving Facility at a time when any Letters of Credit or Bank Guarantees are

outstanding under that Revolving Facility, the consent of the relevant Fronting

Banks in respect of such Letters of Credit or Bank Guarantees will be required

(such consent not to be unreasonably withheld or delayed).

 

(d)                                     An

assignment will only be effective on the Agent recording the assignment on the

Register and receipt by the Agent of written confirmation from the New Lender

(in form and substance satisfactory to the Agent) that the New Lender will

assume the same obligations to the other Finance Parties as it would have been

under if it was an Original Lender.

 

(e)                                      A

transfer will only be effective if the procedure set out in Clause 25.5 (Procedure

for transfer) is complied with.

 

(f)                                        A Lender may transfer or assign all or any part of its share of a

Facility without transferring or assigning any part of its share of any other

Facility.

 

(g)                                     If:

 

(i)                        a Lender

assigns or transfers any of its rights or obligations under the Finance

Documents or changes its Facility Office; and

 

(ii)                     as a result of

circumstances existing at the date the assignment, transfer or change occurs,

an Obligor would be obliged to make a payment to the New Lender or Lender

acting through its new Facility Office under Clause 14 (Tax gross-up and indemnities)

or Clause 15 (Increased costs),

 

161

 

then the New

Lender or Lender acting through its new Facility Office is only entitled to

receive payment under those Clauses to the same extent as the Existing Lender

or Lender acting through its previous Facility Office would have been if the

assignment, transfer or change had not occurred provided that this clause

25.2(g) shall not affect any obligation of an Obligor to make a payment under

Clause 14 (Tax

gross-up and indemnities) that results from a deduction of tax

imposed on the Agent by section 118E(3) of the Income and Corporation Taxes Act

1988.

 

(h)                                     If

a Lender transfers or assigns part but not all of its share of the Facilities

to a person other than one of its Affiliates then such transfer or assignment

must be in a minimum amount of EUR1,000,000 of its Commitment (or, if such

partial transfer or assignment relates to a Dollar Facility or the Term

Disposal Facility  in a minimum amount

of $1,000,000).

 

(i)                                         If the Lender to whom the assignment or transfer is being made is

not party to the Intercreditor Deed as a Senior Lender then (if it does not

become a Lender pursuant to a Transfer Certificate) it shall duly execute and

deliver to the Security Trustee and the Agent a deed of accession in the form

required under the Intercreditor Deed so as to become a Senior Lender under the

Intercreditor Deed.

 

25.3                     Assignment or transfer fee

The New Lender

shall, on the date upon which an assignment or transfer takes effect, pay to

the Agent (for its own account) a fee of EUR750 provided that no such fee

shall be paid in relation to any assignment or transfer:

 

(a)                                      by

a Lender to one of its Affiliates; or

 

(b)                                     made

pursuant to primary or general syndication of the Facilities.

 

25.4                     Limitation of responsibility of Existing Lenders

(a)                                      Unless

expressly agreed to the contrary, an Existing Lender makes no representation or

warranty and assumes no responsibility to a New Lender for:

 

(i)                        the legality,

validity, effectiveness, adequacy or enforceability of the Finance Documents or

any other documents;

 

(ii)                     the financial

condition of any Obligor;

 

(iii)                  the performance and

observance by any Obligor or the Company or Newco 2 of its obligations under

the Finance Documents or any other documents; or

 

(iv)                 the accuracy of any

statements (whether written or oral) made in or in connection with any Finance

Document or any other document,

 

and any

representations or warranties implied by law are excluded.

 

(b)                                     Each

New Lender confirms to the Existing Lender and the other Finance Parties that

it:

 

(i)                        has made (and

shall continue to make) its own independent investigation and assessment of the

financial condition and affairs of each Obligor and its related

 

162

 

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 whilst any amount is or may be outstanding under the

Finance Documents or any Commitment is in force.

 

(c)                                      Nothing

in any Finance Document obliges an Existing Lender to:

 

(i)                        accept a

re-transfer from a New Lender of any of the rights and obligations assigned or

transferred under this Clause 25; or

 

(ii)                     support any

losses directly or indirectly incurred by the New Lender by reason of the

non-performance by any Obligor, the Company or Newco 2 of its obligations under

the Finance Documents or otherwise.

 

25.5                     Procedure

for transfer

(a)                                      Subject

to the conditions set out in Clause 25.2 (Conditions of assignment or transfer) a

transfer is effected in accordance with paragraph (b) below when the Agent

executes an otherwise duly completed Transfer Certificate delivered to it by

the Existing Lender and the New Lender and the transfer is recorded by the

Agent on the Register.  The Agent shall,

as soon as reasonably practicable after receipt by it of a duly completed

Transfer Certificate appearing on its face to comply with the terms of this

Agreement and delivered in accordance with the terms of this Agreement, execute

that Transfer Certificate.

 

(b)                                     On

the Transfer Date:

 

(i)                        to the extent

that in the Transfer Certificate the Existing Lender seeks to transfer by

novation its rights and obligations under the Finance Documents each of the

Obligors (which term shall include for the purposes of this Clause 25.5 the

Company and Newco 2) and the Existing Lender shall be released from further

obligations towards one another under the Finance Documents and their

respective rights against one another shall be cancelled (being the “Discharged

Rights and Obligations”);

 

(ii)                     each of the

Obligors and the New Lender shall assume obligations towards one another and/or

acquire rights against one another which differ from the Discharged Rights and

Obligations only insofar as that Obligor and the New Lender have assumed and/or

acquired the same in place of that Obligor and the Existing Lender;

 

(iii)                  the Agent, the

Security Trustee, the Arrangers, the New Lender, the other Lenders and any

relevant Fronting Banks and any relevant Ancillary Lender shall acquire the

same rights and assume the same obligations between themselves as they would

have acquired and assumed had the New Lender been an Original Lender with the

rights and/or obligations acquired or assumed by it as a result of the transfer

and to that extent the Agent, the Security Trustee, the Arrangers, any relevant

Fronting Banks, any Ancillary Lender and the Existing 

 

163

 

Lender shall each be released from further obligations

to each other under this Agreement; and

 

(iv)                 the New Lender shall

become a Party as a “Lender”.

 

25.6                     Sub-participations by Lenders

Any Lender

may, without the consent of the Obligor’s Agent or any Obligor, enter into with

any person:

 

(a)                                      sub-participation

agreements relating to this Agreement; and/or

 

(b)                                     any

other transactions under which payments are to be made by reference to this

Agreement or any Obligor.

 

Any Lender

may, without the consent of the Obligor’s Agent or any Obligor, at any time

charge or create a security interest in all or any portion of its rights under

this Agreement to secure obligations of such Lender, including without

limitation (i) any charge or creation of a security interest to secure

obligations to a Federal Reserve Bank and (ii) in the case of any Lender that

is a fund, any charge or creation of a security interest of all or any portion

of such Lender’s rights under this Agreement to any holders of obligations

owed, or securities issued, by such Lender as security for such obligations or

securities, or to any trustee for, or any other representative of, such

holders, and this paragraph shall not apply to any such charge or security

interest; provided

that  no such charge or

creation of a security interest shall:

 

(i)                                         release a Lender from any of its obligations hereunder or substitute

any such chargor or holder of the benefit of such security interest for such

Lender as a party hereto; or

 

(ii)                                      require

any payments to be made by any Obligor other than as required by this

Agreement.  A copy of any notice of

charge or creation of security interest as envisaged in this paragraph shall be

delivered to the Agent and the Agent shall not be obliged to take any action in

regard to such notice unless instructed to do so by the relevant Lender which

has given such security.

 

25.7                     Disclosure of information

Any Lender may

disclose to any of its Affiliates and any other person:

 

(a)                                      to

(or through) whom that Lender assigns or transfers (or proposes to assign or

transfer) all or any of its rights and obligations under this Agreement;

 

(b)                                     with

(or through) whom that Lender enters into (or proposes to enter into) any

sub-participation in relation to, or any other transaction under which payments

are to be made by reference to, this Agreement or any Obligor; or

 

(c)                                      to

whom, and to the extent that, information is required to be disclosed by any

applicable law or regulation,

 

any

information about any Obligor, the Group and the Finance Documents as that

Lender shall consider appropriate if, in relation to paragraphs (a) and (b)

above, the person to whom the information is to be given has entered into a

Confidentiality Undertaking.

 

164

 

26.                           CHANGES

TO THE OBLIGORS

 

26.1                     Assignment and transfers by Obligors

No Obligor may

assign any of its rights or transfer any of its rights or obligations under the

Finance Documents other than as provided in Clause 26.7 (Transfers on Debtco Introduction Date)

or Clause 26.8 (Transfer on Debtco Exit Date).

 

26.2                     Additional

Borrowers

(a)                                      The

Obligor’s Agent may request that MGG and/or any Consolidated Subsidiary of MGG

99% or more of whose voting and issued share capital is owned directly or

indirectly by MGG becomes an Additional Borrower.  That Consolidated Subsidiary or MGG (as the case may be) shall

become an Additional Borrower if:

 

(i)                        (other than in

the case of any Initial Borrower) all the Lenders approve the addition of that

Consolidated Subsidiary or, if that Consolidated Subsidiary is incorporated in

Luxembourg, The Netherlands, Germany or in any state of the United States of

America, the Majority Lenders approve the addition of that Consolidated

Subsidiary as an Additional Borrower (such approval not to be unreasonably

withheld it being noted that as at the date hereof there are German thin

capitalisation concerns which would mean that while MGG is a Borrower no other

German Group Member should be a Borrower);

 

(ii)                        the Obligor’s

Agent delivers to the Agent a duly completed and executed Accession Letter;

 

(iii)                     the Obligor’s

Agent confirms that no Default (or, during the Closing Period, no Closing Event

of Default) is continuing or would occur as a result of that Consolidated Subsidiary

or MGG (as the case may be) becoming an Additional Borrower; and

 

(iv)                    the Agent has

received all of the documents and other evidence listed in Part II of Schedule

2 (Conditions

precedent) in relation to that Additional Borrower, each in form and

substance satisfactory to the Agent.

 

(b)                                     The

Obligor’s Agent may request that Debtco becomes an Additional Borrower.  Debtco shall become an Additional Borrower

if:

 

(i)                        the Obligor’s

Agent delivers to the Agent a duly completed and executed Accession Letter;

 

(ii)                     the Obligor’s

Agent confirms that no Default is continuing or would occur as a result of

Debtco becoming an Additional Borrower;

 

(iii)                  the Agent has

received all of the documents and other evidence listed in Part III of Schedule

2 (Conditions

Precedent) in relation to Debtco, each in form and substance

satisfactory to the Agent; and

 

(iv)                 no High Yield Notes

have been issued and twelve Months have elapsed since the date of this

Agreement.

 

165

 

(c)                                      The

Agent shall notify the Obligor’s Agent and the Lenders promptly upon being

satisfied that it has received (in form and substance satisfactory to it) all

the documents and other evidence listed in Part II (or Part III, in the case of

the accession of Debtco) of Schedule 2 (Conditions precedent).

 

26.3                     Resignation of a Borrower

(a)                                      The

Obligor’s Agent may request that a Borrower (other than MGG) ceases to be a

Borrower by delivering to the Agent a Resignation Letter.

 

(b)                                     The

Agent shall accept a Resignation Letter and notify the Obligor’s Agent and the

Lenders of its acceptance if:

 

(i)                        no Default is

continuing or would result from the acceptance of the Resignation Letter (and

the Obligor’s Agent has confirmed this is the case); and

 

(ii)                        that Borrower

is under no actual or contingent obligations (in respect of principal or

interest in relation to any Loan made to it or in respect of any actual or

contingent obligations relating to a Bank Guarantee or Letter of Credit issued

at its request) as a Borrower under any Finance Documents,

 

whereupon

that company shall cease to be a Borrower and shall have no further rights or

obligations under the Finance Documents.

 

26.4                     Additional

Guarantors

(a)                                      The

Obligor’s Agent may request that any member of the MGG Group (or, with effect

from the Debtco Introduction Date, Debtco) becomes an Additional

Guarantor.  That member of the MGG Group

or Debtco, as the case may be, shall become an Additional Guarantor if:

 

(i)                        the Obligor’s

Agent delivers to the Agent a duly completed and executed Accession Letter or,

in the case of Messer Austria GmbH, the duly executed Austrian Guarantee; and

 

(ii)                        the Agent has

received all of the documents and other evidence listed in Part II (or, in the

case of Debtco, Part III) of Schedule 2 (Conditions precedent) in relation to that

Additional Guarantor (other than, in the case of Messer Austria GmbH, an

Accession Letter), each in form and substance satisfactory to the Agent.

 

(b)                                     The

Agent shall notify the Obligor’s Agent and the Lenders promptly upon being

satisfied that it has received (in form and substance satisfactory to it) all

the documents and other evidence listed in Part II (or, in the case of Debtco,

Part III) of Schedule 2 (Conditions precedent).

 

26.5                     Repetition of Representations

Delivery of an

Accession Letter constitutes confirmation by the relevant Consolidated

Subsidiary of MGG or Debtco (as the case may be) that the Repeating

Representations (or, during the Closing Period, the Closing Representations)

are true and correct in relation to it as at the date of delivery as if made by

reference to the facts and circumstances then existing.

 

166

 

26.6                     Resignation of a Guarantor

(a)                                      The

Obligor’s Agent may request that a Guarantor (other than MGG) ceases to be a

Guarantor by delivering to the Agent a Resignation Letter.

 

(b)                                     The

Agent shall accept a Resignation Letter and notify the Obligor’s Agent and the

Lenders of its acceptance if:

 

(i)                        no Default is

continuing or would result from the acceptance of the Resignation Letter (and

the Obligor’s Agent has confirmed this is the case);

 

(ii)                     all the Lenders

have consented to the request of the Obligor’s Agent provided that if the shares

in such Guarantor have been (or are about to be) sold pursuant to a Permitted

Disposal, then all the Lenders shall be deemed to consent to such request.

 

26.7                     Transfers on Debtco Introduction Date

(a)                                      All

of the Parties agree that if there have been any Utilisations made prior to the

Debtco Introduction Date at the request of any Borrower whose Relevant

Jurisdiction is Germany (a “Relevant German Borrower”) then on the

Debtco Introduction Date the rights and obligations of the Relevant German

Borrowers as Borrowers shall be automatically transferred to Debtco so that on

such date:

 

(i)                        each of the

Relevant German Borrowers (other than Debtco) who have had Loans made to them

or who have had Letters of Credit or Bank Guarantees issued at their request

prior to the Debtco Introduction Date shall be released from their obligations

as Borrowers (but not as Guarantors) under the Finance Documents and their

rights as Borrowers shall be cancelled (being the “German Borrowers Discharged Rights and

Obligations”);

 

(ii)                     Debtco shall

assume obligations and acquire rights under the Finance Documents which differ

from the German Borrowers Discharged Rights and Obligations only insofar as

Debtco has assumed and/or acquired the same in place of the Relevant German

Borrowers.

 

(b)                                     Each

Relevant German Borrower and Debtco agree that Debtco shall be deemed to have

made loans to each Relevant German Borrower on the Debtco Introduction Date

immediately after the transfers referred to in paragraph (a) above in an amount

equal to the sum of:

 

(i)                        the aggregate

Outstandings of the Loans made to that Relevant German Borrower immediately

prior to the transfer referred to in paragraph (a) above; and

 

(ii)                     the aggregate

interest, commissions and fees accrued but not paid in relation to the

Utilisations referred to in paragraph (i) of this paragraph (b) in relation to

that Relevant German Borrower and in relation to any Letters of Credit and Bank

Guarantees issued at that Relevant German Borrower’s request.

 

(c)                                      Each

Relevant German Borrower agrees to indemnify Debtco on demand in respect of any

amount demanded by any Finance Party from Debtco pursuant to the provisions

 

167

 

of Clause 8 (Borrower’s Liabilities in relation to Letters of

Credit and Bank Guarantees) in connection with a Letter of Credit or

Bank Guarantee requested by that Relevant German Borrower.

 

26.8                     Transfers on Debtco Exit Date

(a)                                      All

of the Parties agree that if on the Debtco Exit Date there are any Utilisations

in respect of which Debtco is the Borrower, then on the Debtco Exit Date the

rights and obligations of Debtco as a Borrower in respect of such Utilisations

shall be automatically transferred to the Initial German Borrowers in the

amounts specified in the Debtco Exit Transfer Certificate (and if any Term

Facility Loan is transferred in parts to different Initial German Borrowers

then such Loan shall be divided into a number of loans equal to the number of

Borrowers to whom it is being transferred provided that the provisions of Clause 4.4

(Maximum

number of Loans, Letters of Credit or Bank Guarantees) and Clause

5.3 (Currency

and amount) are complied with) so that on the Debtco Exit Date:

 

(i)                        Debtco

shall  be released from its obligations

as a Borrower under the Finance Documents and its rights as a Borrower shall be

cancelled (being the “Debtco Discharged Rights and Obligations”);

 

(ii)                     each Initial

German Borrower shall assume obligations and acquire rights under the Finance

Documents in relation to each Utilisation or part of each Utilisation

identified as being transferred to it in the Debtco Exit Transfer Certificate

which differ from the Debtco Discharged Rights and Obligations in respect of

each such Utilisation or, as the case may be, each such part of each

Utilisation only insofar as such Initial German Borrower has assumed the same

in place of Debtco.

 

26.9                     German Security and Debtco Introduction Date

Waiving

section 418 of the German Civil Code, the Parties agree that any Security

created by any Relevant German Borrower prior to the Debtco Introduction Date

shall not be affected by any transfer or assumption of the obligations secured

by that Security to or by Debtco.

 

26.10               Company ceases to be Party on MGG accession

The Parties

agree that the Company shall cease to have any obligations hereunder on the

first date upon which the following conditions have been satisfied: (1) MGG is

a Borrower and Guarantor hereunder and (2) the certificate referred to in

Clause 26.11 (MGG Accession) has been delivered to the Agent. For the

avoidance of any doubt, any representation made or deemed made by the Company

pursuant to Clause 20 (Representations) shall, if the

circumstances described in Clause 24.4 (Misrepresentation) are satisfied, be

capable of constituting an Event of Default under Clause 24.4 (Misrepresentation)

after the Company has ceased to be a Party and the breach by the Company of any

of its obligations expressed to be assumed by it prior to the date the Company

has ceased to be a Party shall be capable of constituting an Event of Default

under Clause 24.1 (Non-Payment) or Clause 24.3 (Other

Obligations).  Any obligation

owed by the Company hereunder immediately prior to MGG becoming a Party shall

be assumed by MGG upon MGG becoming a Party.

 

168

 

26.11               MGG

Accession

Notwithstanding

and superceding any other provision in any Finance Document, MGG shall have no

rights and no obligations under this Agreement or any other Finance Document

until it has become a Guarantor and Borrower hereunder and in addition has

delivered a certificate to the Agent confirming that the MGG Acquisition has

completed in accordance with the terms of the Acquisition Documents.  If such a certificate has not been delivered

(whether in original or by fax) by 11.59 p.m. on 2 May 2001, any Security

granted by MGG to any Finance Party under any Security Document shall be

released, and treated for the purposes of this Agreement as if it had never

been given and any fees actually paid under Clause 13 or any other payments

actually made to the Finance Parties by MGG under this Agreement or similar

payments by MGG under any of the other Finance Documents shall be promptly

repaid to MGG.

 

169

 

SECTION 10

 

THE FINANCE PARTIES

 

27.                           ROLE OF THE AGENT AND THE ARRANGERS AND THE OBLIGOR’S

AGENT

27.1                     Appointment of the Agent

(a)                                      Each

of the Arrangers, the Lenders and the Fronting Banks appoints the Agent to act

as its agent under and in connection with the Finance Documents.

 

(b)                                     Each

of the Arrangers, the Lenders and the Fronting Banks authorises the Agent to

exercise the rights, powers, authorities and discretions specifically given to

the Agent under or in connection with the Finance Documents together with any

other incidental rights, powers, authorities and discretions.

 

27.2                     Duties of the Agent

(a)                                      The

Agent shall promptly forward to a Party the original or a copy of any document

which is delivered to the Agent for that Party by any other Party.

 

(b)                                     If

the Agent receives notice from a Party referring to this Agreement, describing

a Default and stating that the circumstance described is a Default, it shall

promptly notify the Lenders and, where appropriate, the Fronting Banks.

 

(c)                                      The

Agent shall promptly notify the Lenders and, where appropriate, the Fronting Banks

of any Default arising under Clause 24.1 (Non-payment).

 

(d)                                     The

Agent’s duties under the Finance Documents are solely mechanical and

administrative in nature.

 

27.3                     Role of the Arrangers

Except as specifically provided in the Finance

Documents, the Arrangers have no obligations of any kind to any other Party

under or in connection with any Finance Document.

 

27.4                     No fiduciary duties

(a)                                      Nothing

in this Agreement constitutes the Agent, an Arranger or a Fronting Bank as a

trustee or fiduciary of any other person.

 

(b)                                     Neither

the Agent, an Arranger nor any Fronting Bank nor any Ancillary Lender shall be

bound to account to any Lender for any sum or the profit element of any sum

received by it for its own account.

 

27.5                     Business with the Group

The Agent, the Arrangers and the Fronting Banks may

accept deposits from, lend money to and generally engage in any kind of banking

or other business (including, without limitation, providing advice) with any

member of the Group.

 

27.6                     Rights and discretions of the Agent

(a)                                      The

Agent may rely on:

 

(i)                        any representation, notice or document believed by it to be genuine,

correct and appropriately authorised; and

 

170

 

(ii)                     any statement made by a director, authorised signatory or employee

of any person regarding any matters which may reasonably be assumed to be

within his knowledge or within his power to verify.

 

(b)                                     The

Agent may assume (unless it has received notice to the contrary in its capacity

as agent for the Lenders) that:

 

(i)                        no Default has occurred (unless it has actual knowledge of a Default

arising under Clause 24.1 (Non-payment));

 

(ii)                     any right, power, authority or discretion vested in any Party or the

Majority Lenders has not been exercised;

 

(iii)                  any notice or request made by the Obligor’s Agent (other than a

Utilisation Request or Selection Notice) is made on behalf of and with the

consent and knowledge of all the Obligors; and

 

(iv)                 any

Utilisation Request or Selection Notice made by the Obligor’s Agent on behalf

of any Borrower is made on behalf of and with the consent and knowledge of that

Borrower.

 

(c)                                      The

Agent may engage, pay for and rely on the advice or services of any lawyers,

accountants, surveyors or other experts.

 

(d)                                     The

Agent may act in relation to the Finance Documents through its personnel and

agents.

 

27.7                     Majority Lenders’ instructions

(a)                                      Unless

a contrary indication appears in a Finance Document, the Agent shall (a) act in

accordance with any instructions given to it by the Majority Lenders (or, if so

instructed by the Majority Lenders, refrain from acting or exercising any

right, power, authority or discretion vested in it as Agent) and (b) not be

liable for any act (or omission) if it acts (or refrains from taking any

action) in accordance with such an instruction of the Majority Lenders.

 

(b)                                     Unless

a contrary indication appears in a Finance Document, any instructions given by

the Majority Lenders will be binding on all the Lenders and the Arrangers.

 

(c)                                      The

Agent may refrain from acting in accordance with the instructions of the

Majority Lenders (or, if appropriate, the Lenders) until it has received such

security as it may require for any cost, loss or liability (together with any

associated VAT) which it may incur in complying with the instructions.

 

(d)                                     In

the absence of instructions from the Majority Lenders, (or, if appropriate, the

Lenders) the Agent may act (or refrain from taking action) as it considers to

be in the best interest of the Lenders.

 

(e)                                      The

Agent is not authorised to act on behalf of a Lender (without first obtaining

that Lender’s consent) in any legal or arbitration proceedings relating to any

Finance Document.

 

171

 

27.8                     Responsibility for documentation

Neither the Agent nor any Arranger nor any Ancillary

Lender:

 

(a)                                      is

responsible for the adequacy, accuracy and/or completeness of any information

(whether oral or written) supplied by the Agent, any Arranger, any Ancillary

Lender, an Obligor or any other person given in or in connection with any

Finance Document or any Information Memorandum; or

 

(b)                                     is

responsible for the legality, validity, effectiveness, adequacy or

enforceability of any Finance Document or any other agreement, arrangement or

document entered into, made or executed in anticipation of or in connection

with any Finance Document.

 

27.9                     Exclusion of liability

(a)                                      Without

limiting paragraph (b) below, neither the Agent nor any Ancillary Lender will

be liable for any action taken by it under or in connection with any Finance

Document, unless directly caused by its gross negligence or wilful misconduct.

 

(b)                                     No

Party may take any proceedings against any officer, employee or agent of the

Agent or any Ancillary Lender in respect of any claim it might have against the

Agent or any Ancillary Lender or in respect of any act or omission of any kind

by that officer, employee or agent in relation to any Finance Document and any

officer, employee or agent of the Agent or any Ancillary Lender may rely on this

Clause.  Any third party referred to in

this paragraph (b) may enjoy the benefit of and enforce the terms of this

paragraph in accordance with the provisions of the Contracts (Rights of Third

Parties) Act 1999.

 

(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.

 

27.10               Lenders’ indemnity to the Agent

Each Lender shall (in proportion to its share of the

Total Commitments or, if the Total Commitments are then zero, to its share of

the Total Commitments immediately prior to their reduction to zero) indemnify

the Agent, within three Business Days of demand, against any cost, loss or

liability incurred by the Agent (otherwise than by reason of the Agent’s gross

negligence or wilful misconduct) in acting as Agent under the Finance Documents

(unless the Agent has been reimbursed by an Obligor or the Company pursuant to

a Finance Document). For the purpose of determining all or any part of the

Total Commitments for the purpose of this Clause 27.10 at any time, the amount

in dollars of all Term B Dollar Facility Commitments and all Term C Dollar

Facility Commitments and all Term Disposal Facility Commitments shall be

calculated in euro at the Agent’s Spot Rate of Exchange on the date of this

Agreement.

 

172

 

27.11               Resignation of the Agent

(a)                                      The

Agent may resign and appoint one of its Affiliates acting through an office in

the United Kingdom or in Germany as successor by giving notice to the Lenders

and the Obligor’s Agent.

 

(b)                                     Alternatively

the Agent may resign by giving notice to the Lenders and the Obligor’s Agent,

in which case the Majority Lenders (after consultation with the Obligor’s

Agent) may appoint a successor Agent.

 

(c)                                      If

the Majority Lenders have not appointed a successor Agent in accordance with

paragraph (b) above within 30 days after notice of resignation was given, the

Agent (after consultation with the Obligor’s Agent) may appoint a successor

Agent (acting through an office in the United Kingdom or Germany).

 

(d)                                     The

retiring Agent shall, at its own cost, make available to the successor Agent

such documents and records and provide such assistance as the successor Agent

may reasonably request for the purposes of performing its functions as Agent

under the Finance Documents.

 

(e)                                      The

Agent’s resignation notice shall only take effect upon the appointment of a

successor.

 

(f)                                        Upon the appointment of a successor, the retiring Agent shall be

discharged from any further obligation in respect of the Finance Documents but

shall remain entitled to the benefit of this Clause 27.  Its successor and each of the other Parties

shall have the same rights and obligations amongst themselves as they would

have had if such successor had been an original Party.

 

(g)                                     After

consultation with the Obligor’s Agent, the Majority Lenders may, by notice to

the Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Agent shall resign in

accordance with paragraph (b) above.

 

27.12               Confidentiality

(a)                                      In

acting as agent for the Finance Parties, the Agent shall be regarded as acting

through its agency division which shall be treated as a separate entity from

any other of its divisions or departments.

 

(b)                                     If

information is received by another division or department of the Agent, it may

be treated as confidential to that division or department and the Agent shall

not be deemed to have notice of it.

 

(c)                                      Notwithstanding

any other provision of any Finance Document to the contrary, neither the Agent

nor any Arranger is obliged to disclose to any other person (i) any

confidential information or (ii) any other information if the disclosure would

or might in its reasonable opinion constitute a breach of any law or a breach

of a fiduciary duty.

 

27.13               Relationship with the Lenders

(a)                                      The

Agent may treat each Lender as a Lender, entitled to payments under this

Agreement and acting through its Facility Office unless it has received not

less than 

 

173

 

five

Business Days prior notice from that Lender to the contrary in accordance with

the terms of this Agreement.

 

(b)                                     Each

Lender shall supply the Agent with any information required by the Agent in

order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory

Cost formulae).

 

27.14               Credit appraisal by the Lenders and the Fronting Banks

Without affecting the responsibility of any Obligor

for information supplied by it or on its behalf in connection with any Finance

Document, each Lender and each Fronting Bank confirms to the Agent and the

Arrangers and each Ancillary Lender that it has been, and will continue to be,

solely responsible for making its own independent appraisal and investigation

of all risks arising under or in connection with any Finance Document including

but not limited to:

 

(a)                                      the

financial condition, status and nature of each member of the Group;

 

(b)                                     the

legality, validity, effectiveness, adequacy or enforceability of any Finance

Document and any other agreement, arrangement or document entered into, made or

executed in anticipation of, under or in connection with any Finance Document;

 

(c)                                      whether

that Lender or, as the case may be, Fronting Bank has recourse, and the nature

and extent of that recourse, against any Party or any of its respective assets

under or in connection with any Finance Document, the transactions contemplated

by the Finance Documents or any other agreement, arrangement or document

entered into, made or executed in anticipation of, under or in connection with

any Finance Document; and

 

(d)                                     the

adequacy, accuracy and/or completeness of the Information Memorandum and any

other information provided by the Agent, any Party or by any other person under

or in connection with any Finance Document, the transactions contemplated by

the Finance Documents or any other agreement, arrangement or document entered

into, made or executed in anticipation of, under or in connection with any

Finance Document.

 

27.15               Reference Banks

If a Reference Bank (or, if a Reference Bank is not a

Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the

Agent shall (in consultation with the Obligor’s Agent) appoint another Lender

or an Affiliate of a Lender to replace that Reference Bank.

 

27.16               Obligor’s Agent

Each Obligor irrevocably authorises the Obligor’s

Agent to act on its behalf as its agent in relation to the Finance Documents

and irrevocably authorises:

 

(a)                                      the

Obligor’s Agent on its behalf to supply all information concerning itself, its

financial condition and otherwise to the relevant persons contemplated under

this Agreement and to give all notices and instructions (including, in the case

of a Borrower (and without limitation), Utilisation Requests and Selection

Notices) on its behalf under the Finance Documents without further reference to

or the consent of such Obligor; and

 

174

 

(b)                                     each

Finance Party to give any notice, demand or other communication to be given to

or served on such Obligor pursuant to the Finance Documents to the Obligor’s

Agent on its behalf;

 

and in each such case such Obligor will be bound

thereby as though such Obligor itself had supplied such information, given such

notice and instructions or received any such notice, demand or other

communication.

 

27.17               Reliance, Priority and Engagement Letters

Each Finance Party confirms that each of the Arrangers

and the Agent and the Security Trustee has authority to accept on its behalf

the terms of any Reliance Letter, Priority Letter or engagement letters

relating to the Reports or any reports or letters provided by accountants in

connection with the Finance Documents or the transactions contemplated therein

and to bind it in respect of such Reports, reports or letters and to sign such

letters on its behalf and further confirms that it accepts the terms and

qualifications set out in such letters.

 

28.                           THE

LENDERS AND THE FRONTING BANKS

28.1                     Lenders’ Indemnity

If any Borrower fails to comply with its obligations

under Clause 8.2  (Borrowers’ Indemnity to Fronting Banks)

the Agent shall:

 

(a)                                      in

respect of a Letter of Credit, make demand on each Lender for its share of that

L/C Amount and, subject to Clause 28.2 (Direct Participation)),  each Lender shall indemnify each Fronting Bank

for that Lender’s L/C Proportion of each L/C Amount; and

 

(b)                                     in

respect of a Bank Guarantee, make demand on each Lender for its share of that

Guarantee Amount and, subject to Clause 28.2 (Direct Participation)),  each Lender shall indemnify each Fronting

Bank for that Lender’s Guarantee Proportion of each Guarantee Amount.

 

28.2                     Direct Participation

(a)                                      If

any Lender is not permitted (by its constitutional documents or any applicable

law) to comply with Clause 28.1 (Lenders’ Indemnity) then that Lender will

not be obliged to comply with Clause 28.1 (Lenders’ Indemnity) and shall instead be

deemed to have taken:

 

(i)                        in respect of a Letter of Credit, on the date such Letter of Credit

is issued (or if later, on the date that L/C Proportion is transferred or

assigned to such Lender in accordance with the terms of this Agreement), an

undivided interest and participation in that Letter of Credit in an amount

equal to that Lender’s L/C Proportion of that Letter of Credit; and

 

(ii)                     in respect of a Bank Guarantee, on the date such Bank Guarantee is

issued (or if later, on the date that Guarantee Proportion is transferred or

assigned to such Lender in accordance with the terms of this Agreement), an

undivided interest and participation in that Bank Guarantee in an amount equal

to that Lender’s Guarantee Proportion of that Bank Guarantee.

 

175

 

(b)                                     On

receipt of demand by the Agent in accordance with Clause 28.1 (Lenders’

Indemnity), each such Lender shall pay to the Agent (for the account

of the Fronting Bank):

 

(i)                        in respect of a Letter of Credit, its L/C Proportion of any L/C

Amount; or

 

(ii)                     in respect of a Bank Guarantee, its Guarantee Proportion of any

Guarantee Amount.

 

28.3                     Obligations not Discharged

Neither the obligations of each Lender in this Clause

28 nor the rights, powers and remedies conferred upon any Fronting Bank by this

Agreement or by law shall be discharged, impaired or otherwise affected by:

 

(a)                                      the

winding-up, dissolution, administration or re-organisation of the relevant

Fronting Bank, any Borrower or any other person or any change in its status,

function, control or ownership;

 

(b)                                     any

of the obligations of the relevant Fronting Bank, any Borrower or any other

person under this Agreement, under a Letter of Credit, under a Bank Guarantee

or under any other security taken in respect of its obligations under this

Agreement or under a Letter of Credit or Bank Guarantee being or becoming

illegal, invalid, unenforceable or ineffective in any respect;

 

(c)                                      time

or other indulgence being granted or agreed to be granted to the relevant

Fronting Bank, the relevant Borrower or any other person in respect of its

obligations under this Agreement, under a Letter of Credit, under a Bank

Guarantee or under any other security;

 

(d)                                     any

amendment to, or any variation, waiver or release of, any obligation of the

relevant Fronting Bank, the relevant Borrower or any other person under this

Agreement, under a Letter of Credit, under a Bank Guarantee or under any other

security; and

 

(e)                                      any

other act, event or omission which, but for this Clause 28 might operate to

discharge, impair or otherwise affect any of the obligations of each Lender in

this Agreement contained or any of the rights, powers or remedies conferred upon

any Fronting Bank by this Agreement or by law.

 

The obligations of each Lender in this Agreement

contained shall be in addition to and independent of every other security which

any Fronting Bank may at any time hold in respect of any Letter of Credit or

Bank Guarantee.

 

28.4                     Settlement Conditional

Any settlement or discharge between a Lender and a

Fronting Bank shall be conditional upon no security or payment to any Fronting

Bank by a Lender or any other person on behalf of a Lender being avoided or reduced

by virtue of any laws relating to bankruptcy, insolvency, liquidation or

similar laws of general application and, if any such security or payment is so

avoided or reduced, such Fronting Bank shall be entitled to recover the value

or amount of 

 

176

 

such security or payment from such Lender subsequently

as if such settlement or discharge had not occurred.

 

28.5                     Exercise of Rights

No Fronting Bank shall be obliged before exercising

any of the rights, powers or remedies conferred upon them in respect of any

Lender by this Agreement or by law:

 

(a)                                      to

take any action or obtain judgment in any court against any Obligor;

 

(b)                                     to

make or file any claim or proof in a winding-up or dissolution of any Obligor;

or

 

(c)                                      to

enforce or seek to enforce any other security taken in respect of any of the

obligations of the Obligors under this Agreement.

 

28.6                     Beneficiary a Lender

Where the beneficiary of any Letter of Credit or Bank

Guarantee (the “Beneficiary”) is also a Lender (the “Indemnifying Bank”) then the

Beneficiary in its capacity as such shall be treated as a separate entity from

such Indemnifying Bank for all purposes of the Finance Documents.

 

29.                           CONDUCT OF BUSINESS BY THE FINANCE

PARTIES

No provision of this Agreement will:

 

(a)                                      interfere

with the right of any Finance Party to arrange its affairs (tax or otherwise)

in whatever manner it thinks fit;

 

(b)                                     oblige

any Finance Party to investigate or claim any credit, relief, remission or

repayment available to it or the extent, order and manner of any claim; or

 

(c)                                      oblige

any Finance Party to disclose any information relating to its affairs (tax or

otherwise) or any computations in respect of Tax.

 

30.                           SHARING

AMONG THE LENDERS

 

30.1                     Payments to Lenders

If a Lender (a “Recovering Lender”) receives or recovers

any amount from an Obligor other than in accordance with Clause 31 (Payment

mechanics) and applies that amount to a payment due under the

Finance Documents then:

 

(a)                                      the

Recovering Lender shall, within three Business Days, notify details of the

receipt or recovery, to the Agent;

 

(b)                                     the

Agent shall determine whether the receipt or recovery is in excess of the

amount the Recovering Lender would have been paid had the receipt or recovery

been received or made by the Agent and distributed in accordance with Clause 31

(Payment

mechanics), without taking account of any Tax which would be imposed

on the Agent in relation to the receipt, recovery or distribution; and

 

(c)                                      the

Recovering Lender shall, within three Business Days of demand by the Agent, pay

to the Agent an amount (the “Sharing Payment”) equal to such receipt or

recovery less any amount which the Agent determines may be retained by the

Recovering 

 

177

 

Lender as its share of any payment to be made, in

accordance with Clause 31.5 (Partial payments).

 

30.2                     Redistribution of payments

The Agent shall treat the Sharing Payment as if it had

been paid by the relevant Obligor and distribute it between the Finance Parties

(other than the Recovering Lender) in accordance with Clause 31.5 (Partial

payments).

 

30.3                     Recovering Lender’s rights

(a)                                      On

a distribution by the Agent under Clause 30.2 (Redistribution of payments),

the Recovering Lender will be subrogated to the rights of the Finance Parties

which have shared in the redistribution.

 

(b)                                     If

and to the extent that the Recovering Lender is not able to rely on its rights

under paragraph (a) above, the relevant Obligor shall be liable to the

Recovering Lender for a debt equal to the Sharing Payment which is immediately

due and payable.

 

30.4                     Reversal of redistribution

If any part of the Sharing Payment received or

recovered by a Recovering Lender becomes repayable and is repaid by that

Recovering Lender, then:

 

(a)                                      each

Lender which has received a share of the relevant Sharing Payment pursuant to

Clause 30.2 (Redistribution of payments) shall, upon request of the

Agent, pay to the Agent for account of that Recovering Lender an amount equal

to its share of the  Sharing Payment

(together with such amount as is necessary to reimburse that Recovering Lender

for its proportion of any interest on the Sharing Payment which that Recovering

Lender is required to pay); and

 

(b)                                     that

Recovering Lender’s rights of subrogation in respect of any reimbursement shall

be cancelled and the relevant Obligor will be liable to the reimbursing Lender

for the amount so reimbursed.

 

30.5                     Exceptions

(a)                                      This

Clause 30 shall not apply to the extent that the Recovering Lender would not,

after making any payment pursuant to this Clause, have a valid and enforceable

claim against the relevant Obligor.

 

(b)                                     A

Recovering Lender is not obliged to share with any other Lender any amount

which the Recovering Lender has received or recovered as a result of taking

legal or arbitration proceedings, if:

 

(i)                        it notified the other Lenders of the legal or arbitration

proceedings; and

 

(ii)                     the other Lender had an opportunity to participate in those legal or

arbitration proceedings but did not do so as soon as reasonably practicable

having received notice or did not take separate legal or arbitration

proceedings.

 

178

 

SECTION 11

 

ADMINISTRATION

 

31.                           PAYMENT MECHANICS

 

31.1                     Payments to the Agent

(a)                                      On

each date on which an Obligor or a Lender is required to make a payment under a

Finance Document, that Obligor or Lender shall make the same available to the

Agent (unless a contrary indication appears in a Finance Document) for value on

the due date at the time and in such funds specified by the Agent as being

customary at the time for settlement of transactions in the relevant currency

in the place of payment.

 

(b)                                     Payment

shall be made to such account in the principal financial centre of the country

of that currency (or, in relation to euro, in a principal financial centre in a

Participating Member State or London) with such bank as the Agent specifies.

 

31.2                     Distributions by the Agent

Each payment received by the Agent under the Finance

Documents for another Party shall, subject to Clause 31.3 (Distributions to an Obligor)

and Clause 31.4 (Clawback) be made available by the Agent as soon as

practicable after receipt to the Party entitled to receive payment in

accordance with this Agreement (in the case of a Lender, for the account of its

Facility Office), to such account as that Party may notify to the Agent by not

less than five Business Days’ notice with a bank in the principal financial

centre of the country of that currency (or, in relation to euro, in the

principal financial centre of a Participating Member State or London).

 

31.3                     Distributions to an Obligor

The Agent may (with the consent of the Obligor or in

accordance with Clause 32 (Set-off)) apply any amount received by it

for that Obligor in or towards payment (on the date and in the currency and

funds of receipt) of any amount due from that Obligor under the Finance

Documents or in or towards purchase of any amount of any currency to be so

applied.

 

31.4                     Clawback

(a)                                      Where

a sum is to be paid to the Agent under the Finance Documents for another Party,

the Agent is not obliged to pay that sum to that other Party (or to enter into

or perform any related exchange contract) until it has been able to establish

to its satisfaction that it has actually received that sum.

 

(b)                                     If

the Agent pays an amount to another Party and it proves to be the case that the

Agent had not actually received that amount, then the Party to whom that amount

(or the proceeds of any related exchange contract) was paid by the Agent shall

on demand refund the same to the Agent together with interest on that amount

from the date of payment to the date of receipt by the Agent, calculated by the

Agent to reflect its cost of funds.

 

31.5                     Partial payments

(a)                                      If

the Agent receives a payment that is insufficient to discharge all the amounts

then due and payable by an Obligor under the Finance Documents, the Agent shall

apply 

 

179

 

that payment towards the obligations of that Obligor

under the Finance Documents in the following order:

 

(i)                        first, in or towards payment pro rata of any unpaid fees, costs and

expenses of the Agent under the Finance Documents;

 

(ii)                     secondly, in or towards payment of any demand made by a Fronting Bank in

respect of a payment made or to be made by it under a Letter of Credit or a

Bank Guarantee due but unpaid;

 

(iii)                  thirdly, in or towards payment pro rata of any accrued interest, commission

or Fronting Bank fees due but unpaid under this Agreement;

 

(iv)                 fourthly, in or towards payment pro rata of any Outstandings due but unpaid

under this Agreement and the Ancillary Documents; and

 

(v)                    fifthly, in or towards payment pro rata of any other sum due but unpaid

under the Finance Documents.

 

(b)                                     The

Agent shall, if so directed by the Majority Lenders, vary the order set out in

paragraphs (a)(ii) to (v) above.

 

(c)                                      Paragraphs

(a) and (b) above will override any appropriation made by an Obligor.

 

31.6                     No set-off by Obligors

All payments to be made by an Obligor under the

Finance Documents shall be calculated and be made without (and free and clear

of any deduction for) set-off or counterclaim.

 

31.7                     Business Days

(a)                                      Any

payment which is due to be made on a day that is not a Business Day shall be

made on the next Business Day in the same calendar month (if there is one) or

the preceding Business Day (if there is not).

 

(b)                                     During

any extension of the due date for payment of any principal or an Unpaid Sum

under this Agreement interest is payable on the principal at the rate payable

on the original due date.

 

31.8                     Currency of account

(a)                                      Subject

to paragraphs (b) to (f) below, euro is the currency of account and payment for

any sum due from an Obligor under any Finance Document.

 

(b)                                     A

repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be

made in the currency in which that Loan or Unpaid Sum is denominated on its due

date.

 

(c)                                      Each

payment in respect of a Letter of Credit or a Bank Guarantee (including any

Cash Collateral in respect of a Letter of Credit or a Bank Guarantee) shall be

made in the currency in which that Letter of Credit or, as the case may be,

Bank Guarantee is denominated.

 

(d)                                     Each

payment of interest shall be made in the currency in which the sum in respect

of which the interest is payable was denominated when that interest accrued.

 

180

 

(e)                                      Each

payment in respect of costs, expenses or Taxes shall be made in the currency in

which the costs, expenses or Taxes are incurred.

 

(f)                                        Any amount expressed to be payable in a currency other than euro

shall be paid in that other currency.

 

31.9                     Change of currency

(a)                                      Unless

otherwise prohibited by law, if more than one currency or currency unit are at

the same time recognised by the central bank of any country as the lawful

currency of that country, then:

 

(i)                        any reference in the Finance Documents to, and any obligations

arising under the Finance Documents in, the currency of that country shall be

translated into, or paid in, the currency or currency unit of that country

designated by the Agent (after consultation with the Obligor’s Agent); and

 

(ii)                     any translation from one currency or currency unit to another shall

be at the official rate of exchange recognised by the central bank for the

conversion of that currency or currency unit into the other, rounded up or down

by the Agent (acting reasonably).

 

(b)                                     If

a change in any currency of a country occurs, this Agreement will, to the

extent the Agent (acting reasonably and after consultation with the Obligor’s

Agent) specifies to be necessary, be amended to comply with any generally

accepted conventions and market practice in the Relevant Interbank Market and

otherwise to reflect the change in currency.

 

32.                           SET-OFF

 

After an Event of Default has occurred and for so long

as it is continuing a Finance Party may set off any matured obligation due from

an Obligor or the Obligor’s Agent under the Finance Documents (to the extent

beneficially owned by that Finance Party) against any matured obligation owed

by that Finance Party to that Obligor or the Obligor’s Agent (as the case may

be), regardless of the place of payment, booking branch or currency of either

obligation.  If the obligations are in

different currencies, the Finance Party may convert either obligation at a market

rate of exchange in its usual course of business for the purpose of the

set-off.  If a Finance Party does

exercise its right of set-off pursuant to this Clause 32 it shall give written

notice (through the Agent) of such action to the Obligor’s Agent or the

relevant Obligor (as the case may be) as soon as is reasonably practicable

thereafter.

 

33.                           NOTICES

 

33.1                     Communications in writing

Any communication to be made under or in connection

with the Finance Documents shall be made in writing and, unless otherwise

stated, may be made by fax, letter or telex.

 

181

 

33.2                     Addresses

The address, fax number and telex number (and the

department or officer, if any, for whose attention the communication is to be

made) of each Party for any communication or document to be made or delivered

under or in connection with the Finance Documents is:

 

(a)                                      in

the case of the Company, that identified with its name below;

 

(b)                                     in

the case of each Lender, each Fronting Bank or any Obligor, that notified in

writing to the Agent on or prior to the date on which it becomes a Party; and

 

(c)                                      in

the case of the Agent or the Security Trustee, that identified with its name

below,

 

or any substitute address, fax number, telex number or

department or officer as the Party may notify to the Agent (or the Agent may

notify to the other Parties, if a change is made by the Agent) by not less than

five Business Days’ notice.

 

33.3                     Delivery

(a)                                      Any

communication or document made or delivered by one person to another under or

in connection with the Finance Documents will only be effective:

 

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

 

(ii)                     if by way of letter, when it has been left at the relevant address

or five Business Days after being deposited in the post postage prepaid in an

envelope addressed to it at that address; or

 

(iii)                  if by way of telex, when despatched, but only if, at the time of

transmission, the correct answerback appears at the start and at the end of the

sender’s copy of the notice;

 

and, if a particular department or officer is

specified as part of its address details provided under Clause 33.2 (Addresses),

if addressed to that department or officer.

 

(b)                                     Any

communication or document to be made or delivered to the Agent or the Security

Trustee will be effective only when actually received by the Agent or, as the

case may be, the Security Trustee and then only if it is expressly marked for

the attention of the department or officer identified with the Agent’s or, as

the case may be, the Security Trustee’s signature below (or any substitute

department or officer as the Agent or the Security Trustee shall specify for

this purpose).

 

(c)                                      All

notices from or to an Obligor shall be sent through the Agent.

 

(d)                                     Any

communication or document made or delivered to the Obligor’s Agent in

accordance with this Clause will be deemed to have been made or delivered to

each of the Obligors.

 

33.4                     Notification of address, fax number and telex number

Promptly upon receipt of notification of an address,

fax number and telex number or change of address, fax number or telex number

pursuant to Clause 33.2 (Addresses) or changing its own address,

fax number or telex number, the Agent shall notify the other Parties.

 

182

 

33.5                     English language

(a)                                      Any

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

English.

 

(b)                                     All

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

be:

 

(i)                        in English; or

 

(ii)                     if not in English, and if so required by the Agent, accompanied by a

certified English translation and, in this case, the English translation will

prevail unless the document is a constitutional, statutory or other official

document.

 

34.                           CALCULATIONS

AND CERTIFICATES

 

34.1                     Accounts

In any litigation or arbitration proceedings arising

out of or in connection with a Finance Document, the entries made in the

accounts maintained by a Finance Party are prima facie evidence of the matters to

which they relate.

 

34.2                     Certificates and Determinations

Any certification or determination by a Finance Party

of a rate or amount under any Finance Document and by a Fronting Bank as to the

amount paid out by that Fronting Bank in respect of any Letter of Credit or

Bank Guarantee is, in the absence of manifest error, conclusive evidence of the

matters to which it relates.

 

34.3                     Day count convention

Any interest, commission or fee accruing under a

Finance Document will accrue from day to day and is calculated on the basis of

the actual number of days elapsed and a year of 360 days or, in any case where

the practice in the Relevant Interbank Market differs, in accordance with that

market practice.

 

35.                           PARTIAL

INVALIDITY

 

If, at any time, any provision of the Finance

Documents is or becomes illegal, invalid or unenforceable in any respect under

any law of any jurisdiction, neither the legality, validity or enforceability

of the remaining provisions nor the legality, validity or enforceability of

such provision under the law of any other jurisdiction will in any way be

affected or impaired.

 

36.                           REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in exercising,

on the part of any Finance Party, any right or remedy under the Finance

Documents shall operate as a waiver, nor shall any single or partial exercise

of any right or remedy prevent any further or other exercise or the exercise of

any other right or remedy.  The rights

and remedies provided in this Agreement are cumulative and not exclusive of any

rights or remedies provided by law.

 

37.                           AMENDMENTS

AND WAIVERS

 

37.1                     Required consents

(a)                                      Subject

to Clause 37.2 (Exceptions) and Clause 37.5 (Amendment to correct Manifest Error)

any term of the Finance Documents may be amended or waived only with the 

 

183

 

consent of the Majority Lenders and the Obligors and

any such amendment or waiver will be binding on all Parties.

 

(b)                                     The

Agent may effect, on behalf of any Finance Party, any amendment or waiver

permitted by this Clause 37.

 

37.2                     Exceptions

(a)                                      An

amendment or waiver that has the effect of changing or which relates to:

 

(i)                        the definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

(ii)                     an extension to the date of payment of any amount under the Finance

Documents;

 

(iii)                  a reduction in the Margin, the L/C Commission Rate, the Guarantee

Commission Rate or the amount of any payment of principal, interest, fees or

commission payable;

 

(iv)                 an

increase in Commitment;

 

(v)                    a change to the Borrowers or Guarantors other than in accordance

with Clause 26 (Changes to the Obligors);

 

(vi)                 any

provision which expressly requires the consent of all the Lenders; or

 

(vii)              Clause

2.2 (Lenders’

and Fronting Banks’ rights and obligations), Clause 25 (Changes to

the Lenders) or this Clause 37,

 

shall not be made without the prior consent of all the

Lenders.

 

(b)                                     An

amendment or waiver which relates to the rights or obligations of the Agent,

the Security Trustee or any Arranger or any Ancillary Lender may not be

effected without the consent of the Agent, the Security Trustee or, as the case

may be, that Arranger or that Ancillary Lender.

 

(c)                                      An

amendment or waiver which has the effect of changing or which relates to the

right of a Lender which has provided a Term B Euro Facility Loan or a Term B

Dollar Facility Loan or a Term C Euro Facility Loan or a Term C Dollar Facility

Loan (as the case may be) to elect that any such Loan shall not be mandatorily

prepaid as set out in paragraph (d) of Clause 9.8 (Application of Prepayments)

may not be effected without the consent of Majority Lenders determined solely

by reference to the Term B Euro Facility Commitments, the Term B Dollar

Facility Commitments, the Term C Euro Facility Commitments or the Term C Dollar

Facility Commitments (as the case may be).

 

37.3                     Amendments by Security Trustee

Unless the provisions of any Finance Document

expressly provide otherwise, the Security Trustee may, if authorised by the

Majority Lenders, amend the terms of, waive any of the requirements of, or

grant consents under, any of the Security Documents, any such amendment, waiver

or consent being binding on all the parties to this Agreement provided

that:

 

184

 

(a)                                      the

prior consent of all of the Lenders is required to authorise any amendment of

any Security Document which would affect the nature or the scope of the

Transaction Security or the manner in which proceeds of enforcement are

distributed; and

 

(b)                                     no

waiver or amendment may impose any new or additional obligations on any person

without the consent of that person.

 

37.4                     Amendments by Obligor’s Agent

The Obligor’s Agent (acting on behalf of each of the

Obligors) may agree any amendment to or modification of the provisions of any

of the Finance Documents or any schedule thereto, or grant any waiver or

consent in relation thereto and the Obligors will be bound by any such

amendment or modification.

 

37.5                     Amendment to correct Manifest

Error

The Agent may agree with the Obligor’s Agent (acting

on behalf of each of the Obligors) any amendment to or the modification of the

provisions of any of the Finance Documents or any schedule thereto, which is

necessary to correct a manifest error and the Obligors will be bound by any

such amendment or modification.

 

38.                           COUNTERPARTS

 

Each Finance Document may be executed in any number of

counterparts, and this has the same effect as if the signatures on the

counterparts were on a single copy of the Finance Document.

 

185

 

SECTION 12

 

GOVERNING LAW AND ENFORCEMENT

 

39.                           GOVERNING

LAW

 

This Agreement is governed by English law.

 

40.                           ENFORCEMENT

 

40.1                     Jurisdiction of English courts

(a)                                      The

courts of England have exclusive jurisdiction to settle any dispute arising out

of or in connection with this Agreement (including a dispute regarding the

existence, validity or termination of this Agreement) (a “Dispute”).

 

(b)                                     The

Parties agree that the courts of England are the most appropriate  and convenient courts to settle Disputes and

accordingly no Party will argue to the contrary.

 

(c)                                      This

Clause 40.1 is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be

prevented from taking proceedings relating to a Dispute in any other courts

with jurisdiction.  To the extent allowed

by law, the Finance Parties may take concurrent proceedings in any number of

jurisdictions.

 

40.2                     Service of process

Without prejudice to any other mode of service allowed

under any relevant law, the Company and each Obligor (other than an Obligor incorporated

in England and Wales):

 

(a)                                      irrevocably

appoints Messer UK Limited as its agent for service of process in relation to

any proceedings before the English courts in connection with any Finance

Document; and

 

(b)                                     agrees

that failure by a process agent to notify the Company or (as the case may be)

the relevant Obligor of the process will not invalidate the proceedings

concerned.

 

If the

appointment of Messer UK Limited by any Obligor ceases to be effective, the

relevant Obligor shall immediately appoint another person in England to accept

service of process on its behalf in England in connection with any Finance

Document.  If an Obligor fails to do so

(and such failure continues for a period of not less than fourteen days), the

Agent shall be entitled to appoint such a person by notice to such Obligor.

 

41.                           WAIVER OF JURY TRIAL

 

Each of the Finance Parties irrevocably waives trial

by jury in any action or proceeding with respect to any Finance Document.

 

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

of this Agreement.

 

186

 

SCHEDULE 1

THE CLOSING PARTIES

 

Part I

The Initial Obligors

 

	

  Name of Initial Borrower

  	

   

  	

  Jurisdiction

  of incorporation and registration

  number (or equivalent, if any)

  
	

  Messer Griesheim GmbH

  	

   

  	

  Germany, Frankfurt, HRB7812 registered in the Handelsregister

  (commercial register) of the Amtsgericht (local court) of Frankfurt

  am Main, under HRB7812

  
	

   

  	

   

  	

   

  
	

  Messer Griesheim Industries, Inc.

  	

   

  	

  U.S.A., 0815454, State of Delaware

  
	

   

  	

   

  	

   

  
	

  Messer Finance S.A.

  	

   

  	

  Luxembourg

  

 

	

  Name of Initial Guarantor

  	

   

  	

  Jurisdiction

  of incorporation and registration

  number (or equivalent, if any)

  
	

  Messer Griesheim GmbH

  	

   

  	

  Germany, Frankfurt, HRB7812 registered with the Amtsgericht

  (local court) of Frankfurt am Main in the Handelsregister

  (commercial register) under HRB7812

  
	

   

  	

   

  	

   

  
	

  Messer Griesheim Industries, Inc.

  	

   

  	

  U.S.A., 0815454, State of Delaware

  
	

   

  	

   

  	

   

  
	

  Messer Finance S.A.

  	

   

  	

  Luxembourg

  
	

   

  	

   

  	

   

  
	

  Messer UK Limited

  	

   

  	

  England, 232592

  
	

   

  	

   

  	

   

  
	

  Messer Griesheim Industriegase GmbH

  	

   

  	

  Germany, Leipzig, HRB1854 registered in the Handelsregister

  (commercial register) of the Amtsgericht (local court) of Leipzig,

  under HRB1854

  
	

   

  	

   

  	

   

  
	

  Messer Medical GmbH

  	

   

  	

  Germany, Krefeld, HRB5807 registered in the Handelsregister

  (commercial register) of the Amtsgericht (local court) of Krefeld

  under HRB5807

  
	

   

  	

   

  	

   

  
	

  Messer International GmbH

  	

   

  	

  Germany, Frankfurt, HRB 48453 registered in the Handelsregister

  (commercial register) of the Amtsgericht (local court) of Frankfurt

  am Main under HRB 48431

  
	

   

  	

   

  	

   

  
	

  Messer France S.A.

  	

   

  	

  France, 300 560 588

  

 

187

 

	

  Messer Nederland B.V.

  	

   

  	

  The Netherlands, seat (statutaire zetel) in Moerdijk

  and registered number 20069636

  
	

   

  	

   

  	

   

  
	

  MG Generon, Inc.

  	

   

  	

  U.S.A., 2574 231, State of Delaware

  
	

   

  	

   

  	

   

  
	

  GVP, Inc.

  	

   

  	

  U.S.A., 2638386, State of Delaware

  
	

   

  	

   

  	

   

  
	

  Messer Austria GmbH

  	

   

  	

  Austria, FN 111741a

  

 

188

 

Part II

The Lenders

 

	

  Name of Lender

  	

   

  	

  Term

  Disposal

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  A Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  B Dollar

  Facility

  Commitment 

  ($)

  	

   

  	

  Term

  B Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  C Dollar

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  C Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Revolving

  Facility I

  Commitment 

  (EUR)

  	

   

  	

  Revolving

  Facility II

  Commitment

  (EUR)

  	

   

  
	

  Goldman Sachs Credit Partners, L.P.

  	

   

  	

  0

  	

   

  	

  0

  	

   

  	

  0

  	

   

  	

  0

  	

   

  	

  0

  	

   

  	

  0

  	

   

  	

  0

  	

   

  	

  0

  	

   

  
	

  Goldman Sachs International Bank

  	

   

  	

  9,509,339.40

  	

   

  	

  12,682,520.81

  	

   

  	

  21,159,691.15

  	

   

  	

  20,377,294.89

  	

   

  	

  36,304,392.62

  	

   

  	

  18,052,166.07

  	

   

  	

  10,991,518.04

  	

   

  	

  2,113,753.47

  	

   

  
	

  Bayerische Hypo - und Vereinsbank AG

  	

   

  	

  9,509,339.40

  	

   

  	

  12,682,520.81

  	

   

  	

  21,159,691.15

  	

   

  	

  20,377,294.89

  	

   

  	

  36,304,392.62

  	

   

  	

  18,052,166.07

  	

   

  	

  10,991,518.04

  	

   

  	

  2,113,753.47

  	

   

  
	

  The Chase Manhattan Bank

  	

   

  	

  9,509,339.40

  	

   

  	

  12,682,520.81

  	

   

  	

  21,159,691.15

  	

   

  	

  20,377,294.89

  	

   

  	

  36,304,392.62

  	

   

  	

  18,052,166.07

  	

   

  	

  10,991,518.04

  	

   

  	

  2,113,753.47

  	

   

  
	

  The Royal Bank of Scotland plc

  	

   

  	

  9,509,339.40

  	

   

  	

  12,682,520.81

  	

   

  	

  21,159,691.15

  	

   

  	

  20,377,294.89

  	

   

  	

  36,304,392.62

  	

   

  	

  18,052,166.07

  	

   

  	

  10,991,518.04

  	

   

  	

  2,113,753.47

  	

   

  
	

  Bayerische Landesbank

  	

   

  	

  7,473,664.40

  	

   

  	

  11,600,529.61

  	

   

  	

  1,831,794.16

  	

   

  	

  4,118,188.01

  	

   

  	

  781,021.12

  	

   

  	

  1,991,424.25

  	

   

  	

  10,053,792.33

  	

   

  	

  1,933,421.60

  	

   

  
	

  Commerzbank Aktiengesellschaft

  	

   

  	

  7,473,664.40

  	

   

  	

  11,600,529.61

  	

   

  	

  1,831,794.16

  	

   

  	

  4,118,188.01

  	

   

  	

  781,021.12

  	

   

  	

  1,991,424.25

  	

   

  	

  10,053,792.33

  	

   

  	

  1,933,421.60

  	

   

  
	

  DG Bank Deutsche Genossenschaftsbank AG

  	

   

  	

  7,473,664.40

  	

   

  	

  11,600,529.61

  	

   

  	

  1,831,794.16

  	

   

  	

  4,118,188.01

  	

   

  	

  781,021.12

  	

   

  	

  1,991,424.25

  	

   

  	

  10,053,792.33

  	

   

  	

  1,933,421.60

  	

   

  
	

  Dresdner Bank AG

  	

   

  	

  3,645,689.95

  	

   

  	

  5,658,794.93

  	

   

  	

  893,558.13

  	

   

  	

  2,008,872.20

  	

   

  	

  380,985.91

  	

   

  	

  971,426.46

  	

   

  	

  4,904,288.94

  	

   

  	

  943,132.49

  	

   

  
	

  Landesbank Hessen-Thueringen 

  	

   

  	

  6,379,957.42

  	

   

  	

  9,902,891.13

  	

   

  	

  1,563,726.72

  	

   

  	

  3,515,526.35

  	

   

  	

  666,725.35

  	

   

  	

  1,699,996.31

  	

   

  	

  8,582,505.65

  	

   

  	

  1,650,481.86

  	

   

  

 

189

 

	

  Name of Lender

  	

   

  	

  Term

  Disposal

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  A Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  B Dollar

  Facility

  Commitment 

  ($)

  	

   

  	

  Term

  B Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  C Dollar

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  C Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Revolving

  Facility I

  Commitment 

  (EUR)

  	

   

  	

  Revolving

  Facility II

  Commitment

  (EUR)

  	

   

  
	

  Girozentrale Helaba

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Abbey National Treasury Services Plc

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Bank of America, N.A.

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Bank of Scotland - Zweigniederlassung Frankfurt

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  IntesaBCI S.P.A. Frankfurt Am Main Branch

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  BHF - Bank Aktiengesellschaft

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Banca Nazionale del Lavoro S.p.A.,

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Crédit Industriel et Commercial

  	

   

  	

  4,010,258.95

  	

   

  	

  6,224,674.42

  	

   

  	

  982,913.94

  	

   

  	

  2,209,759.42

  	

   

  	

  419,084.51

  	

   

  	

  1,068,569.11

  	

   

  	

  5,394,717.83

  	

   

  	

  1,037,445.74

  	

   

  
	

  Credit Mutuel - B.E.C.M.

  	

   

  	

  1,822,844.98

  	

   

  	

  2,829,397.47

  	

   

  	

  446,779.06

  	

   

  	

  1,004,436.10

  	

   

  	

  190,492.46

  	

   

  	

  485,713.23

  	

   

  	

  2,452,144.47

  	

   

  	

  471,566.24

  	

   

  
	

  Banque Scalbert Dupont

  	

   

  	

  911,422.49

  	

   

  	

  1,414,698.73

  	

   

  	

  223,389.53

  	

   

  	

  502,218.05

  	

   

  	

  95,246.48

  	

   

  	

  242,856.62

  	

   

  	

  1,226,072.24

  	

   

  	

  235,783.12

  	

   

  
	

  Credit Agricole Indosuez

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  

 

190

 

	

  Name of Lender

  	

   

  	

  Term

  Disposal

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  A Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  B Dollar

  Facility

  Commitment 

  ($)

  	

   

  	

  Term

  B Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  C Dollar

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  C Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Revolving

  Facility I

  Commitment 

  (EUR)

  	

   

  	

  Revolving

  Facility II

  Commitment

  (EUR)

  	

   

  
	

  Crédit Lyonnais

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  The Fuji Bank, Limited

  	

   

  	

  0

  	

   

  	

  5,234,385.31

  	

   

  	

  0

  	

   

  	

  1,858,206.79

  	

   

  	

  0

  	

   

  	

  898,569.48

  	

   

  	

  0

  	

   

  	

  872,397.55

  	

   

  
	

  Mizuho Bank Nederland N.V.

  	

   

  	

  3,372,263.21

  	

   

  	

  0

  	

   

  	

  826,541.27

  	

   

  	

  0

  	

   

  	

  352,411.97

  	

   

  	

  0

  	

   

  	

  4,536,467.27

  	

   

  	

  0

  	

   

  
	

  Industriebank von Japan (Deutschland) Aktiengesellschaft

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Landesbank Sachsen Girozentrale

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Cooperatieve Centrale Raiffeisen-Boerenleenbank b.a.  Zweigniederlassung Frankfurt am  (Rabobank International Frankfurt Branch)

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Société Générale

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Scotia Bank Europe Plc

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  Westdeutsche Landesbank Girozentrale

  	

   

  	

  6,744,526.41

  	

   

  	

  10,468,770.62

  	

   

  	

  1,653,082.53

  	

   

  	

  3,716,413.57

  	

   

  	

  704,823.94

  	

   

  	

  1,797,138.96

  	

   

  	

  9,072,934.54

  	

   

  	

  1,744,795.10

  	

   

  
	

  First Union National Bank, London Branch

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  

 

191

 

	

  Name of Lender

  	

   

  	

  Term

  Disposal

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  A Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  B Dollar

  Facility

  Commitment 

  ($)

  	

   

  	

  Term

  B Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Term

  C Dollar

  Facility

  Commitment

  ($)

  	

   

  	

  Term

  C Euro

  Facility

  Commitment

  (EUR)

  	

   

  	

  Revolving

  Facility I

  Commitment 

  (EUR)

  	

   

  	

  Revolving

  Facility II

  Commitment

  (EUR)

  	

   

  
	

  Ikb Deutsche Industriebank AG, London Branch

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Landesbank Rheinland-Pfalz Girozentrale

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Landesbank Saar Girozentrale

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Mediobanca - Banca di Credito Finanziario S.p.A.

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Natexis Banques Populaires

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Sanpaolo IMI S.p.A.

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Sumitomo Mitsui Banking Corporation

  	

   

  	

  3,372,263.21

  	

   

  	

  5,234,385.31

  	

   

  	

  826,541.27

  	

   

  	

  1,858,206.79

  	

   

  	

  352,411.97

  	

   

  	

  898,569.48

  	

   

  	

  4,536,467.27

  	

   

  	

  872,397.55

  	

   

  
	

  Total

  	

   

  	

  198,630,000.00

  	

   

  	

  300,000,000.00

  	

   

  	

  124,000,000.00

  	

   

  	

  170,000,000.00

  	

   

  	

  162,000,000.00

  	

   

  	

  115,000,000.00

  	

   

  	

  260,000,000.00

  	

   

  	

  50,000,000.00

  	

   

  

 

192

 

SCHEDULE 2

CONDITIONS PRECEDENT

 

Part I

Conditions precedent to initial Utilisation

 

1.                                 Corporate Documents

 

(a)                                      A

copy of the constitutional documents of the Company and Newco 2 in the

form required by the Agent together with a copy of the resolutions of the

shareholders of the Company and/or Newco 2 adopting such changes to the

constitutive documents of the Company and/or Newco 2 as the Agent shall have

reasonably required.

 

(b)                                     A

copy of a resolution of the board of directors (or the equivalent thereof) of

each of the Company and Newco 2:

 

(i)                        approving the terms of, and the transactions contemplated by, the

Transaction Documents to which it is a party and resolving that it execute the

Transaction Documents to which it is a party;

 

(ii)                     authorising a specified person or persons to execute the Transaction

Documents to which it is a party on its behalf; and

 

(iii)                  authorising a specified person or persons, on its behalf, to sign

and/or despatch all documents and notices (including, if relevant, any

Utilisation Request and Selection Notice) to be signed and/or despatched by it

under or in connection with the Finance Documents to which it is a party.

 

(c)                                      A

specimen of the signature of each person authorised by the resolution referred

to in paragraph (b) above.

 

(d)                                     Where

the Lenders’ relevant counsel deems such to be either necessary or desirable

either in place of or in addition to the resolution referred to in paragraph

(b) above, a certificate or extract from a public commercial registry or other

evidence setting out the names and signatures of the persons authorised to

sign, on behalf of each of the Company and Newco 2, each Transaction

Document to which such company is or is to be a party and any documents to be

delivered by such company pursuant to any of the Transaction Documents.

 

(e)                                      Where

the Lenders’ relevant counsel deems such to be either necessary or desirable

for the Company and Newco 2, either a copy of a resolution signed by all

the holders of the issued shares in such company or a resolution of the

supervisory board, work council or equivalent supervisory body of such company,

approving the terms of, and the transactions contemplated by, the Finance

Documents to which that company is a party.

 

(f)                                        The constitutive documents of MGG in the form required by the Agent.

 

193

 

(g)                                     Any

resolutions of the shareholders of MGG adopting such changes to the

constitutive documents of MGG as the Agent shall have reasonably required to,

among other things, remove any restriction on any transfer of shares or

partnership interests (or equivalent) in MGG pursuant to any enforcement of the

Security Documents creating security over such shares.

 

(h)                                     The

Group Structure Chart.

 

(i)                                         A certificate of an authorised signatory of each of the Company and

Newco 2 certifying that each copy document relating to it specified in

this paragraph 1 (Corporate Documents) of Part 1 of Schedule 2 is correct,

complete and in full force and effect as at a date no earlier than the date of

this Agreement.

 

2.                                 Accounts and Reports

 

(a)                                      The

Business Plan (together with a list of the operating and market assumptions

made for the purpose of the Business Plan).

 

(b)                                     The

Reports (other than the 2000 Outturn Report and the Projections Report referred

to in paragraph (b) of the definition of Reports) either addressed to, or with

Reliance Letters in favour of, the Security Trustee (on behalf of the Finance

Parties and the Mezzanine Finance Parties) or any Arranger on behalf of the

Finance Parties and any Mezzanine Arranger on behalf of the Mezzanine Finance

Parties or to the relevant Finance Parties and the relevant Mezzanine Finance

Parties.

 

(c)                                      The

Priority Letter, duly executed by the parties to it.

 

(d)                                     Budget

(on a quarterly basis) for 2001.

 

3.                                 Acquisition Documents and

related matters

 

(a)                                      Copies

of each Acquisition Document.

 

(b)                                     Evidence

that the MGG Acquisition has completed in accordance with the terms of the

Acquisition Documents and that either the Transferred Assets and Transferred

Liabilities (as defined in the Singapore Separation Agreement) have been

transferred to Singapore SPV or that to the extent that any such Transferred

Assets or Transferred Liabilities have not been so transferred the Agent is

satisfied (acting reasonably) that provisions are in place to provide that the

MGG Group is economically in substantially the same position as if those

Transferred Assets or Transferred Liabilities had been so transferred.

 

(c)                                      A

certificate of an authorised signatory of the Company certifying that:

 

(i)                        No condition of the Acquisition (in particular the Acquisition

Closing Conditions) and no right or entitlement of the Initial Sponsors or the

Investors, the Company or any member of the Group (whether to receive documents

or otherwise) under the Acquisition Documents has been waived or modified

except with the prior written consent of the Majority 

 

194

 

Lenders and

that the Acquisition Documents contain the full agreement of the parties

thereto as to the matters set out therein;

 

(ii)                     following the making of the first Loans under the Term Facilities no

Group member shall have any Financial Indebtedness outstanding (other than

Permitted Indebtedness).

 

(d)                                     Evidence

that the Antitrust Approvals (as defined in the Business Combination Agreement)

have been granted.

 

(e)                                      Confirmation

from MGG as to the amount of the Hoechst Closing Amount (as defined in section

4.5 of the Singapore Separation Agreement).

 

4.                                 Other Financing Documents

 

(a)                                      Copies

of:

 

(i)                        the executed Shareholders’ Agreement together with the agreed

amendment relating to, inter alia, the treatment of proceeds

received by the Company under the BCA;

 

(ii)                     the executed Mezzanine Facility Agreement and the Mezzanine Fee

Letters; and

 

(iii)                  the executed China Subordination Agreement.

 

(b)                                     Evidence

satisfactory to the Agent that an aggregate amount of at least EUR500,000,000

has been contributed by the Initial Sponsors to the Company in cash through the

subscription for, and issue of, fully paid up shares of the Company and that the

Investors are the sole shareholders in the Company as at the Closing Date.

 

(c)                                      Evidence

satisfactory to the Agent that loans equal to the full amount of the facilities

made available under the Mezzanine Facility Agreement will be made under the

Mezzanine Facility Agreement either on or prior to the date the first

Utilisation is made.

 

(d)                                     Evidence

satisfactory to the Agent that Newco 2 owns 662/3 per

cent. of the issued share capital of MGG and that MIG has contributed the

Family MGG Shares to Newco 2 and that Newco 2 will, upon the registration of

the increase in the share capital of Newco 2, be the owner of 100 per cent. of

the issued share capital of MGG.

 

(e)                                      The

Funds Flow Statement.

 

(f)                                        The Hedging Letter duly signed by the parties thereto.

 

(g)                                     The

Fee Letter referred to in Clause 13.5 (Arrangement Fee) duly signed  by the parties thereto.

 

(h)                                     The

Fee Letter referred to in Clause 13.6 (Agency Fee) duly signed by the parties

thereto.

 

195

 

(i)                                         The Fee Letter referred to in Clause 13.7 (Security Trustee Fee) duly

signed by the parties thereto.

 

(j)                                         The Syndication Letter duly signed by the parties thereto.

 

(k)                                      A

certificate of an authorised signatory of the Company certifying that each copy

document delivered to the Agent pursuant to paragraphs 3 and 4 of this Part 1

of Schedule 2 is correct, complete and in full force and effect as at a date no

earlier than the date of this Agreement.

 

5.                                 Security, Guarantee and

Priority Documents

 

(a)                                      Share

Pledge by Newco 2 over 100% of the shares in MGG (it being noted that such

pledge will only be effective over shares in MGG representing 662/3%

of the registered share capital of MGG until the required capital increase in

the share capital of Newco 2 is registered so as to make the contribution of

the Family MGG Shares to Newco 2 effective).

 

(b)                                     Duly

executed copy of the Intercreditor Deed.

 

(c)                                      Where

the Lenders’ relevant counsel deems such to be either necessary or desirable,

any recordings, filings or other action required to perfect the Security

purported to be created by the Security Documents referred to above (including,

without limitation, delivery of share certificates and stock transfer forms

executed in blank in relation to pledged shares, noting of pledges on share

registers, application for registration of security and notices of assignment).

 

(d)                                     Duly

executed Accession Letter by each Initial Borrower, together with the

satisfaction of the requirements of Clause 26.2 (Additional Borrowers) for

the accession of each Initial Borrower as an Additional Borrower.

 

(e)                                      Duly

executed Accession Letter by each Initial Guarantor (other than Messer Austria

GmbH), together with the satisfaction of the requirements of Clause 26.4 (Additional

Guarantors) for the accession of each Initial Guarantor as an

Additional Guarantor.

 

(f)                                        Evidence (based on the management accounts of the MGG Group) that

upon the Initial Guarantors acceding as Guarantors and providing the Security

to be provided in accordance with Schedule 15 (Security Principles):

 

(i)                        the aggregate (without double counting) of (1) the EBITDA of each of

the Guarantors (but ignoring losses before interest and tax of any Guarantor)

and (2) the EBITDA of each Consolidated Subsidiary of MGG which is not a

Guarantor (but ignoring any losses before interest and tax of that Consolidated

Subsidiary) in respect of which 95% or more of its voting and issued share

capital is pledged pursuant to a Security Document (the Guarantors referred to

in paragraph (1) of this paragraph (f)(i) taken together with the Subsidiaries

referred to in paragraph (2) of this paragraph (f)(i) being collectively

referred to as the “Security Parties”); and

 

196

 

(ii)                     the aggregate gross assets (without double counting and excluding

assets which are not included on consolidation) of the Security Parties,

 

exceed (in relation to (i) above) 80 per cent. of the

consolidated EBITDA and (in relation to (ii) above) 65 per cent. of the

consolidated gross assets of the Newco 2 Group; and

 

(iii)                  the aggregate (without double counting) of the EBITDA of each of the

Guarantors (but ignoring losses before interest and tax of any Guarantor); and

 

(iv)                 the

aggregate gross assets (without double counting and excluding assets which are

not included on consolidation) of the Guarantors,

 

exceed (in relation to (iii) above) 70 per cent. of

the consolidated EBITDA and (in relation to (iv) above) 60 per cent. of the

consolidated gross assets of the Newco 2 Group.

 

(g)                                     Evidence

satisfactory to the Agent in relation to the Initial Guarantors that on the

first Utilisation of the Facilities any Financial Indebtedness which benefits

from Security or Quasi Security over assets which will also be subject to the

Security to be created under any Security Documents to be entered into by such

Initial Guarantors will be repaid.

 

(h)                                     Duly

executed Austrian Guarantee, together with all of the documents and evidence

referred to in Part II of this Schedule in relation to Messer Austria GmbH

other than paragraph 1 thereof.

 

(i)                                         An original executed irrevocable power of attorney from MIG

authorising the Security Trustee to execute a pledge on behalf of MIG over all

of its shares in MGG if Newco 2 does not own 100% of the shares in MGG within 20

days of the date of such power of attorney (which is anticipated to be signed

on the Closing Date), together with evidence that such power of attorney has

been duly executed by a duly authorised signatory.

 

6.                                 Legal opinions

 

(a)                                      A

legal opinion of Clifford Chance LLP, London, legal advisers to the Arrangers

and the Agent in England, substantially in the form distributed to the Original

Lenders prior to signing this Agreement.

 

(b)                                     A

legal opinion of Clifford Chance Pünder, legal advisers to the Arrangers and

the Agent in Germany, substantially in the form distributed to the Original

Lenders prior to signing this Agreement.

 

7.                                 Other documents and evidence

 

(a)                                      A

copy of any other Authorisation or other document, opinion or assurance which

the Agent reasonably considers to be necessary (if it has notified the Company

accordingly) in connection with the entry into and performance of the 

 

197

 

transactions

contemplated by any Finance Document or for the validity and enforceability of

any Finance Document.

 

(b)                                     Evidence

that the fees, costs and expenses then due pursuant to Clause 13 (Fees)

and Clause 18 (Costs and expenses) have been paid or will be paid by or on

the first Utilisation Date.

 

(c)                                      A

copy of a Certificate of Merger from the Secretary of State of the State of

Delaware evidencing that Messer AGS, Inc. has merged into Messer Griesheim

Industries, Inc. (with Messer Griesheim Industries, Inc. as the surviving

entity).

 

(d)                                     A

signed copy of the engagement letter between MGG and KPMG pursuant to which

KPMG agrees to provide Auditors Reports.

 

8.                                 Agreed Form Documents

 

(a)                                      Agreed

form of Permitted Exchange Notes Security.

 

(b)                                     Agreed

form of Permitted High Yield Security.

 

(c)                                      Agreed

forms of Treasury Borrower Loan Agreement.

 

(d)                                     Agreed

form of High Yield Subordination Agreement.

 

(e)                                      Agreed

form of Exchange Notes Subordination Agreement.

 

(f)                                        Agreed form of Newco 2 Loan Subordination Agreement.

 

198

 

Part II

Conditions Precedent required to be 

delivered by an Additional Obligor

 

1.                                 An

Accession Letter, duly executed by the Additional Obligor and the Obligor’s

Agent.

 

2.                                 A

copy of the constitutional documents of the Additional Obligor in the form

required by the Agent together with a copy of the resolutions of the

shareholders of the Additional Obligor adopting such changes to the

constitutive documents of the Additional Obligor as the Agent shall have

required.

 

3.                                 Where

the Lenders’ relevant counsel deems such to be either necessary or desirable, a

copy of a resolution of the board of directors (or the equivalent thereof) of

the Additional Obligor:

 

(a)                                      approving

the terms of, and the transactions contemplated by, the Finance Documents to

which it is a party and resolving that it execute the Finance Documents to

which it is a party;

 

(b)                                     authorising

a specified person or persons to execute the Finance Documents to which it is a

party on its behalf; and

 

(c)                                      authorising

a specified person or persons, on its behalf, to sign and/or despatch all

documents and notices (including, if relevant, any Utilisation Request and

Selection Notice) to be signed and/or despatched by it under or in connection

with the Finance Documents to which it is a party.

 

4.                                 A

specimen of the signature of each person authorised by the resolution referred

to in paragraph 3(b) above.

 

5.                                 Where

the Lenders’ relevant counsel deems such to be either necessary or desirable

either in place of or in addition to the resolution referred to in paragraph 3

above, a certificate or extract from a public commercial registry or other

evidence setting out the names and signatures of the persons authorised to

sign, on behalf of the Additional Obligor, each Finance Document to which the

Additional Obligor is or is to be a party and any documents to be delivered by

the Additional Obligor pursuant to any of the Finance Documents.

 

6.                                 Where

the Lenders’ relevant counsel deems such to be either necessary or desirable

for an Additional Guarantor, either a copy of a resolution signed by all the

holders of the issued shares in such Additional Guarantor or a resolution of

the supervisory board, work council or equivalent supervisory body of such

Additional Guarantor, approving the terms of, and the transactions contemplated

by, the Finance Documents to which that Additional Guarantor is a party.

 

7.                                 A

certificate of the Additional Obligor (signed by a director or equivalent)

confirming that borrowing or guaranteeing, as appropriate, the Total

Commitments would not cause any borrowing, guaranteeing or similar limit (which

is imposed by law or under its constitutive documents and binding on it) to be

exceeded.

 

199

 

8.                                 A

certificate of an authorised signatory of the Additional Obligor certifying

that each copy document listed in paragraphs 1 through 7 of this Part II of

Schedule 2 is correct, complete and in full force and effect as at a date no

earlier than the date of the Accession Letter.

 

9.                                 A

copy of any other Authorisation or other document, opinion or assurance which

the Agent considers (acting reasonably) to be necessary or desirable in

connection with the entry into and performance of the transactions contemplated

by the Accession Letter or for the validity and enforceability of any Finance

Document.

 

10.                           If

available, the latest audited financial statements of the Additional Obligor.

 

11.                           A legal

opinion of Clifford Chance LLP, London, legal advisers to the Arrangers and the

Agent in England.

 

12.                           If the

Additional Obligor is incorporated in a jurisdiction other than England, a

legal opinion of the legal advisers to the Arrangers and the Agent in the

jurisdiction in which the Additional Obligor is incorporated.

 

13.                           If the

Security to be granted by the proposed Additional Obligor involves the laws of

any jurisdiction other than England and the jurisdiction of an incorporation of

the proposed Additional Obligor, legal opinion(s) from the legal advisers to

the Arrangers and Agent or the legal advisers to the Obligor’s Agent in

relation to the laws of such other jurisdiction.

 

14.                           If the

proposed Additional Obligor is incorporated in a jurisdiction other than

England and is not to be a party to this Agreement, evidence that the process

agent specified in Clause 40.2 (Service of process), if not  an Obligor, has accepted its appointment in

relation to the proposed Additional Obligor.

 

15.                           If the

Additional Obligor is to become an Additional Borrower, the accession of such

an Additional Obligor to this Agreement as an Additional Guarantor.

 

16.                           Duly

executed deed of accession to the Intercreditor Deed by the Additional Obligor

as an Obligor, Intra-Group Borrower and Intra-Group Lender.

 

17.                           Such

Security Documents creating such Security as the Agent reasonably requires in

accordance with the Security Principles, duly executed by the Additional

Obligor and the Security Trustee (or, if appropriate, the Finance Parties).

 

18.                           If the

Additional Obligor is incorporated in any state of the United States of

America, a certificate of solvency signed by the Chief Financial Officer of

such Additional Obligor.

 

19.                           Where the

Lenders’ relevant counsel reasonably deems such to be either necessary or

advisable, any recordings, filings or other action required to perfect the

Security purported to be created by the Security Documents referred to above

(including, without limitation, delivery of share certificates and stock

transfer forms executed in blank in relation to pledged shares, noting of

pledges on share registers, application for registration of security and

notices of assignment).

 

200

 

20.                           The

constitutive documents of any member of the Group whose shares are subject to

Security under any of the Security Documents referred to above in the form

required by the Agent together with any resolutions of the shareholders of such

member of the Group adopting such changes to the constitutive documents of such

member of the Group as the Agent shall have reasonably required to, among other

things, remove any restriction on any transfer of shares or partnership

interests (or equivalent) in such member of the Group pursuant to any

enforcement of any of such Security Documents.

 

21.                           If the

Additional Obligor is a Treasury Borrower, a Treasury Borrower Loan Agreement

executed by it.

 

201

 

Part III

Additional Conditions Precedent required to be 

delivered by Debtco as an Additional Obligor

 

1.                                 All

of the documents and evidence referred to in Part II of this Schedule.

 

2.                                 Evidence

that, immediately upon acceding as an Additional Obligor, Debtco will be the

sole shareholder of MGG.

 

3.                                 Evidence

that, immediately upon acceding as an Additional Obligor, Debtco will assume

the rights and obligations of MGG under the Mezzanine Facility Agreement or any

Direct Mezzanine Refinancing.

 

4.

 

(a)                                      If

at the time of Debtco’s accession Newco 2 has not pledged 100% of the shares in

MGG pursuant to a Security Document, a share pledge over 100% of the shares in

MGG.

 

(b)                                     If

at the time of Debtco’s accession Newco 2 has pledged 100% of the shares in MGG

pursuant to a Security Document, evidence that such share pledge remains in

force and is acknowledged by Debtco.

 

5.                                 An

assignment of all of Debtco’s receivables pursuant to a Global Assignment

Agreement, such assignment to include (without limitation and unless secured

pursuant to a pledge referred to in paragraph 6 below) an assignment of all of

Debtco’s rights under all Intra-Group Loans where it is the lender.

 

6.                                 An

assignment over any Intra-Group Loans by Debtco where Debtco is the lender,

such pledge to include a waiver of Debtco’s rights and obligations against the

borrowers of such Intra-Group Loans upon the suspensive condition (aufschiebende

Bedingung) of the receipt of a notice by the Security Trustee of the

sale of shares in MGG following enforcement of the share pledge over the shares

in MGG.

 

7.                                 Security

over Debtco’s bank accounts pursuant to an Account Pledge, including over a

bank account opened by it with the Agent which is identified as a Prepayment

Escrow Account and pursuant to which no amounts may be withdrawn from the

Prepayment Escrow Account other than as provided in Clause 9 (Repayment and

Cancellation).

 

8.                                 Evidence

from appropriate advisers and other appropriate sources that having Debtco as

the German Group Member which is a Borrower under this Agreement and the

Mezzanine Facility Agreement might reasonably be expected to be more materially

advantageous from an overall German Tax perspective than having MGG as the

German Group Member which is a Borrower under this Agreement and the Mezzanine

Facility Agreement.

 

202

 

SCHEDULE 3

Requests

 

Part I

Utilisation Request

 

From:      [Borrower]

 

To:          [Agent]

 

Dated:

 

Dear Sirs

 

[Messer Griesheim GmbH] – EUR1,050,000,000 and

$540,000,000 Senior Facilities 

Agreement dated • 2001 (the “Facility

Agreement”)

 

1.                                 [We

wish to borrow a Loan on the following terms]/[We wish [name of Fronting Bank] to

issue a [Letter of Credit]/[Bank Guarantee] as follows:]

 

Proposed

Utilisation Date:                                                                                                               [             ]

(or, if that is not a Business Day, the next Business Day)

 

Facility

to be utilised:                                                                                                                                         [Term Disposal Facility]/[Term A Facility]/[Term B Euro

Facility]/[Term B Dollar Facility]/[Term C Euro Facility]/[Term C Dollar

Facility]/ [Revolving Facility I]/[Revolving Facility II]*

 

Currency

of [Loan]/[Letter of Credit/

 

[Bank

Guarantee]:                                                                                                                                                            [             ]

 

Amount:                                                                                                                                                                                                            [             ] or, if less,

the Available Facility

 

[Interest

Period:]                                                                                                                                                                  [             ]

 

[Expiry

Date:]                                                                                                                                                                                   [             ]

 

[Fronting

Bank:]                                                                                                                                                                    [             ]

 

2.                                 We

confirm that each condition specified in Clause 4.2 (Further conditions precedent)

required to be satisfied in connection with this Utilisation is satisfied on

the date of this Utilisation Request.

 

3.                                 [The

proceeds of this Loan should be credited to [account].]/[The [Letter of

Credit/Bank Guarantee] should be issued in favour of [name of beneficiary] in the

form attached and delivered to the recipient at [address of beneficiary] and

is requested to be issued for the following purpose: [  ]].

 

4.                                 This

Utilisation Request is irrevocable, save that if it relates solely to the issue

of a Letter of Credit or Bank Guarantee in which case it may be revoked by

notice in writing to the Agent and the relevant Fronting Bank at any time prior

to the requested Letter of Credit or Bank Guarantee being issued.

 

203

 

	

  Yours

  faithfully

  
	

   

  
	

   

  	

   

  	

   

  
	

  authorised

  signatory for

  [name

  of relevant Borrower]

  

 

* delete as appropriate

 

204

 

Part II

Selection Notice(1)

 

Applicable to a Term Facilities Loan

 

From:      [Borrower]

 

To:          [Agent]

 

Dated:

 

Dear Sirs

 

[Messer Griesheim GmbH] – EUR1,050,000,000  and $540,000,000 Senior Facilities 

Agreement dated • 2001 (the “Facility

Agreement”)

 

1.                                 We

refer to the following [Term Disposal Facility]/[Term A Facility]/[Term B Euro

Facility]/[Term B Dollar Facility]/[Term C Euro Facility]/[Term C Dollar

Facility] Loan[s] in [identify currency] with an Interest Period

ending on [          ]*.

 

2.                                 [We

request that the above [Term Disposal Facility]/[Term A Facility]/[Term B Euro

Facility]/[Term B Dollar Facility]/[Term C Euro Facility]/[Term C Dollar

Facility] Loan[s] be divided into

[             ]

[Term Disposal Facility]/[Term A Facility]/[Term B Euro Facility]/[Term B

Dollar Facility]/[Term C Euro Facility]/[Term C Dollar Facility] Loans  with the following Base Currency Amounts and

Interest Periods:] **

 

or

 

[We request that the next Interest Period for the

above [Term Disposal Facility]/[Term A Facility]/[Term B Dollar Facility]/[Term

C Euro Facility]/ [Term C Dollar Facility] Loan[s] is [      ]].***

 

3.                                 We

request that the above [Term Disposal Facility]/[Term A Facility]/[Term B

Dollar Facility]/[Term C Euro Facility] Loan[s] [is]/[are] [denominated in the

same currency for the next Interest Period]/[denominated in the following

currencies:

[                         ].  As this results in a change of currency we

confirm that each applicable condition specified in Clause 4.2 (Further

conditions precedent) is satisfied on the date of this Selection

Notice.  The proceeds of any change in

currency should be credited to [account].] .

 

4.                                 This

Selection Notice is irrevocable.

 

(1)                                  This may be used to (i) select the currency of an existing Term A

Facility Loan for its next Interest Period, (ii) request the division of an

existing Term Facility Loan into two or more Term Facility Loans having

specified Base Currency Amounts and Interest Periods, and (iii) select the

duration of the next Interest Period for an existing Term Facility Loan.

 

*              Insert

details of all Term Facility Loans in the same currency which have an Interest

Period ending on the same date.

 

**           Use

this option if division of Term Facility Loans is requested.

 

***         Use

this option if sub-division is not required.

 

205

 

	

  Yours

  faithfully

  
	

   

  
	

   

  	

   

  	

   

  
	

  authorised

  signatory for

  [the Obligor’s Agent on behalf of] [name of relevant Borrower]

  

 

206

 

Part III

Change Of Borrower Notice Applicable To a

Term Facilities Loan

 

From:      [MGG /

Messer Finance S.A.] (the “First Borrower”)

 

And                        [MGG

/ Messer Finance S.A.] (the “Second Borrower”)

 

To:                          [                               ] (as Agent)

 

Date:

 

Dear Sirs,

 

Messer Griesheim EUR 1,050,000,000 and $540,000,000 Senior Facilities

Agreement

dated 28 April 2001, as amended from time to time (the “Facility Agreement”)

 

1.                                 We

refer to the Facility Agreement.  Terms

defined in the Facility Agreement shall have the same meaning in this Notice.

 

2.                                 We

refer to the following [Term A Facility] / [Term B Euro Facility] / [Term C

Euro Facility] Loan in [identify currency]

with an Interest Period ending on [   insert date ] (the “Change Date”)

made to the First Borrower.

 

3.                                 The

First Borrower wishes to prepay [the above Loan / [•] of the above Loan], and the Second Borrower wishes to borrower

[the above Loan / [•] of the above

Loan], on the Change Date.

 

4.                                 We

confirm that each condition specified in Clause 7.8 (Change of Borrower) required to be satisfied in connection

with this change of Borrower is satisfied on the date of this Change of

Borrower Notice.

 

5.                                 We

confirm that, at the date hereof, the Repeating Representations are true in all

material respects.

 

6.                                 This

Change of Borrower Notice is irrevocable.

 

Yours faithfully,

 

 

 

	

  authorised signatory of

  [Insert name of First Borrower]

  	

  authorised

  signatory of

  [Insert name of Second Borrower]

  

 

207

 

SCHEDULE 4

MANDATORY COST FORMULAE

 

1.                                 The

Mandatory Cost is an addition to the interest rate in relation to the cost of

compliance with (a) the requirements of the Bank of England and/or the

Financial Services Authority (or, in either case, any other authority which

replaces all or any of its functions) or (b) the requirements of the European

Central Bank.

 

2.                                 On

the first day of each Interest Period (or as soon as possible thereafter) the

Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) in accordance

with the paragraphs set out below. The Mandatory Cost will be calculated by the

Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in

proportion to the percentage participation of each Lender in the  relevant Loan) and will be expressed as a

percentage rate per annum.

 

3.                                 The

Additional Cost Rate for any Lender lending from a Facility Office in a

Participating Member State will be the percentage notified by that Lender to

the Agent as the cost of complying with the minimum reserve requirements of the

European Central Bank.

 

4.                                 The

Additional Cost Rate for any Lender lending from a Facility Office in the

United Kingdom will be calculated by the Agent as follows:

 

(a)                                      in

relation to a domestic sterling Loan:

 

 per cent. per annum

 

(b)                                     in

relation to a Loan in any currency other than domestic sterling:

 

 per cent. per annum.

 

Where:

 

A                                      is the percentage of Eligible Liabilities (assuming these to be in

excess of any stated minimum) which that Lender is from time to time required

to maintain as an interest free cash ratio deposit with the Bank of England to

comply with cash ratio requirements.

 

B                                        is the percentage rate of interest (excluding the Margin and the

Mandatory Cost) payable for the relevant Interest Period on the Loan.

 

C                                        is the percentage (if any) of Eligible Liabilities which that Lender

is required from time to time to maintain as interest bearing Special Deposits

with the Bank of England.

 

D                                       is the percentage rate per annum payable by the Bank of England to

the Agent on interest bearing Special Deposits.

 

208

 

E                                         is the rate of charge payable by that Lender to the Financial

Services Authority pursuant to the Fees Regulations (but, for this purpose,

ignoring any minimum fee required pursuant to the Fees Regulations) and

expressed in pounds per £1,000,000 of the Fee Base of that Lender.

 

5.                                 For

the purposes of this Schedule:

 

(a)                                      “Eligible

Liabilities” and “Special Deposits” have the meanings given

to them from time to time under or pursuant to the Bank of England Act 1998 or

(as may be appropriate) by the Bank of England;

 

(b)                                     “Fees

Regulations” means the Banking Supervision (Fees) Regulations 2000

or such other law or regulation as may be in force from time to time in respect

of the payment of fees for banking supervision; and

 

(c)                                      “Fee Base”

has the meaning given to it, and will be calculated in accordance with, the

Fees Regulations.

 

6.                                 In

application of the above formulae, A, B, C and D will be included in the

formulae as percentages (i.e. 5 per cent. will be included in the formula as 5

and not as 0.05).  A negative result

obtained by subtracting D from B shall be taken as zero.  The resulting figures shall be rounded to

four decimal places.

 

7.                                 Each

Lender shall supply any information required by the Agent for the purpose of

calculating its Additional Cost Rate. 

In particular, but without limitation, each Lender shall supply the

following information in writing on or prior to the date on which it becomes a

Lender:

 

(a)                                      its

jurisdiction of incorporation and the jurisdiction of its Facility Office; and

 

(b)                                     any

other information that the Agent may reasonably require for such purpose.

 

Each Lender shall promptly notify the Agent in writing

of any change to the information provided by it pursuant to this paragraph.

 

8.                                 The

percentages or rates of charge of each Lender for the purpose of A, C and E

above shall be determined by the Agent based upon the information supplied to

it pursuant to paragraph 7 above and on the assumption that, unless a Lender

notifies the Agent to the contrary, each Lender’s obligations in relation to

cash ratio deposits, Special Deposits and the Fees Regulations are the same as

those of a typical bank from its jurisdiction of incorporation with a Facility

Office in the same jurisdiction as its Facility Office.

 

9.                                 The

Agent shall have no liability to any person if such determination results in an

Additional Cost Rate which over or under compensates any Lender and shall be

entitled to assume that the information provided by any Lender pursuant to

paragraphs 3 and 7 above is true and correct in all respects.

 

10.                           Any

determination by the Agent pursuant to this Schedule in relation to a formula,

the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender

shall, in the absence of manifest error, be conclusive and binding on all

Parties.

 

209

 

11.                           The Agent

may from time to time, after consultation with the Obligor’s Agent and the

Lenders, determine and notify to all Parties any amendments which are required

to be made to this Schedule in order to comply with any change in law,

regulation or any requirements from time to time imposed by the Bank of England,

the Financial Services Authority or the European Central Bank (or, in any case,

any other authority which replaces all or any of its functions) and any such

determination shall, in the absence of manifest error, be conclusive and

binding on all Parties.

 

210

 

SCHEDULE 5

FORM OF TRANSFER CERTIFICATES

 

Part I

 

To:          [                               ] as Agent and [                   ] as Security Trustee

 

From:      [The Existing

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

 

Dated:

 

[Messer Griesheim GmbH] – EUR1,050,000,000 and

$540,000,000 Senior Facilities 

Agreement dated • 2001 (the “Facility

Agreement”)

 

1.                                 We

refer to Clause 25.5 (Procedure for transfer):

 

(a)                                      The

Existing Lender and the New Lender agree to the Existing Lender and the New

Lender transferring by novation all or part of the Existing Lender’s

Commitment, rights and obligations referred to in the Schedule in accordance

with Clause 25.5 (Procedure for transfer).

 

(b)                                     The

proposed Transfer Date is [                                        ].

 

(c)                                      The

Facility Office and address, fax number and attention details for notices of

the New Lender for the purposes of Clause 33.2 (Addresses) and Clause 31 (Notices)

of the Intercreditor Deed are set out in the Schedule.

 

2.                                 The

New Lender expressly acknowledges the limitations on the Existing Lender’s

obligations set out in paragraph (c) of Clause 25.4 (Limitation of responsibility of

Existing Lenders).

 

3.                                 The

New Lender confirms that it has received a copy of each of the Security

Documents governed by German law which are pledges, is aware of their contents

and hereby expressly consents to the declarations of the Security Trustee made

on behalf of the New Lender as future pledgee in such Security Documents.

 

4.                                 The

New Lender hereby agrees with each other person who is or who becomes a party

to the Intercreditor Deed that with effect on and from the Transfer Date it

will be bound by the Intercreditor Deed referred to in the Facility Agreement

as a Senior Lender [and Hedge Counterparty] ([each] as defined in the Intercreditor

Deed) as if it had been party to the Intercreditor Deed in that capacity.

 

5.                                 This

Transfer Certificate is executed as a deed by the New Lender and is governed by

English law.

 

211

 

THE SCHEDULE

 

Commitment/rights and

obligations to be transferred

 

[insert

relevant details]

[Facility

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

details for payments,]

 

	

   

  	

  EXECUTED AS

  A DEED

  
	

   

  	

   

  
	

   

  	

  By:

  
	

   

  	

   

  
	

  [Existing

  Lender]

  	

  [New Lender]

  
	

   

  	

   

  
	

  By:

  	

  acting by

  [insert

  signatory/signatories names]

  in the presence of:

  
	

   

  	

   

  
	

   

  	

  Signature of

  witness:

  
	

   

  	

   

  
	

   

  	

  Name of

  witness:

  
	

   

  	

   

  
	

   

  	

  Address of

  witness:

  

 

This Transfer Certificate is accepted by the Agent and

the Transfer Date is confirmed as

[           ] and the

Agent hereby confirms that the transfer has been recorded in the Register on

the Transfer Date.

 

[Agent]

 

By:

 

212

 

Part II

LMA Transfer Certificate (Par)

 

To:                   [                    ]

as Agent and [                    ]

as Security Trustee

 

BANK:                                                                                                                                                                                   Date:

 

TRANSFEREE:

 

This Transfer Certificate is entered into pursuant to

(i) the agreement (the “Sale Agreement”) evidenced by the

Confirmation

dated                       

between the Bank and the Transferee (acting directly or through their

respective agents) and (ii) the Credit Agreement and (iii) the Intercreditor

Deed (as defined in the Credit Agreement) and is entered into by the Transferee

as a deed.

 

On the Transfer Date, the transfer by way of novation

from the Bank to the Transferee on the terms set out herein and in the Credit

Agreement shall become effective subject to:-

 

(i)                                         the Sale Agreement and the terms and conditions incorporated in the

Sale Agreement;

 

(ii)                                      the

terms and conditions annexed hereto; and

 

(iii)                                   the

schedule annexed hereto,

 

all of which are incorporated herein by reference.

 

The Transferee hereby agrees with each other person

who is or who becomes a party to the Intercreditor Deed that with effect on and

from the Transfer Date it will be bound by the Intercreditor Deed as a Senior

Lender [and Hedge Counterparty] ([each] as defined in the Intercreditor Deed)

as if it had been party to the Intercreditor Deed in that capacity. The address

specified in the Schedule hereto shall also be the address of the Transferee

for the purpose of Clause 31 (Notices) of the Intercreditor Deed.

 

	

  The Bank

  	

  The Transferee

  
	

  [                      ]

  	

  [                      ]

  
	

  By:

  	

  By:

  

 

The Agent

 

This Transfer

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

[                  ] and the Agent

hereby confirms that the transfer has been recorded in the Register on this

Transfer Date.

 

[Name of

Agent]

 

By:

 

213

 

The Schedule 

 

	

  Credit Agreement

  Details:

  	

   

  	

   

  
	

  Borrower(s):

  	

   

  	

   

  
	

  Credit

  Agreement Dated

  	

   

  	

   

  
	

  Guarantor(s):

  	

   

  	

   

  
	

  Agent

  Bank:

  	

   

  	

       No             Yes

  (specify)

  
	

  Security:

  	

   

  	

   

  
	

  Total

  Facility Amount:

  	

   

  	

   

  
	

  Governing

  Law:

  	

   

  	

   

  
	

  Additional

  Information:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Transfer Details:

  	

   

  	

   

  
	

  Name

  of Tranche Facility:

  	

   

  	

   

  
	

  Nature (Revolving, Term, Acceptances

  Guarantee/Letter of Credit, Other):

  	

   

  	

   

  
	

  Final

  Maturity:

  	

   

  	

   

  
	

  Participation

  Transferred  Commitment transferred(1)

  	

   

  	

   

  
	

  Drawn

  Amount (details below):(1)

  	

   

  	

   

  
	

  Undrawn

  Amount:(1)

  	

   

  	

   

  
	

  Settlement

  Date:

  	

   

  	

   

  
	

  Details of outstanding Credits(1)

  	

   

  	

   

  
	

  Specify

  in respect of each Credit:

  	

   

  	

   

  
	

  Transferred

  Portion (amount):

  	

   

  	

   

  
	

  Tranche/Facility:

  	

   

  	

   

  
	

  Nature:

  	

   

  	

     Term

  Revolver Acceptance Guarantee/Letter of Credit Other (specify)

  
	

  Details of other Credits are set out on

  the attached sheet

  	

   

  	

   

  
	

  Administration Details

  	

   

  	

   

  
	

  Bank’s

  Receiving Account:

  	

   

  	

   

  
	

  Transferee’s

  Receiving Account:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Addresses

  	

   

  	

   

  
	

  Bank

  	

   

  	

  Transferee

  
	

  [                 ]

  	

   

  	

  [                 ]

  
	

  Address:

  	

   

  	

  Address:

  
	

  Telephone:

  	

   

  	

  Telephone:

  
	

  Facsimile:

  	

   

  	

  Facsimile:

  
	

  Telex:

  	

   

  	

  Telex:

  
	

  Attn/Ref

  	

   

  	

  Attn/Ref

  

 

(1)      As

at the date of the Transfer Certificate

 

214

 

TERMS AND CONDITIONS

 

These

are the Terms and Conditions applicable to the transfer certificate including

the Schedule thereto (the “Transfer Certificate”) to which they are

annexed.

 

1.                                 Interpretation

 

In these Terms and Conditions words and expressions

shall (unless otherwise expressly defined herein) bear the meaning given to

them in the Transfer Certificate, the Credit Agreement or the Sale Agreement.

 

2.                                 Transfer

 

The Bank requests the Transferee to accept and procure

the transfer by novation of all or a part (as applicable) of such participation

of the Bank under the Credit Agreement as is set out in the relevant part of

the Transfer Certificate under the heading “Participation Transferred” (the

“Purchased Assets”) by counter-signing and delivering the Transfer Certificate

to the Agent at its address for the service of notice specified in the Credit

Agreement.  On the Transfer Date the

Transferee shall pay to the Bank the Settlement Amount as specified in the

pricing letter between the Bank and the Transferee dated the date of the

Transfer Certificate (adjusted, if applicable, in accordance with the Sale

Agreement) and completion of the transfer will take place.

 

3.                                 Effectiveness of Transfer

 

The Transferee hereby requests the Agent to accept the

Transfer Certificate as being delivered to the Agent pursuant to and for the

purposes of the Credit Agreement so as to take effect in accordance with the

terms of the Credit Agreement on the Transfer Date or on such later date as may

be determined in accordance with the terms thereof.

 

4.                                 Transferee’s Undertaking

 

The Transferee hereby undertakes with the Agent and

the Bank and each of the other parties to the Credit Documentation that it will

perform in accordance with its terms all those obligations which by the terms

thereof will be assumed by it after delivery of the Transfer Certificate to the

Agent and satisfaction of the conditions (if any) subject to which the Transfer

Certificate is to take effect.

 

5.                                 Payments

 

5.1                           Place

 

All payments by either party to the other under the

Transfer Certificate shall be made to the Receiving Account of that other

party.  Each party may designate a

different account as its Receiving Account for payment by giving the other not

less than five Business Days notice before the due date for payment.

 

215

 

5.2                           Funds

 

Payments under the Transfer Certificate shall be made

in the currency in which the amount is denominated for value on the due date at

such times and in such funds as are customary at the time for settlement of

transactions in that currency.

 

6.                                 The Agent

 

The Agent shall not be required to concern itself with

the Sale Agreement and may rely on the Transfer Certificate without taking

account of the provisions of such agreement.

 

7.                                 Assignment of Rights

 

The Transfer Certificate shall be binding upon and

ensure to the benefit of each party and its successors and permitted assigns provided

that neither party may assign or transfer its rights thereunder

without the prior written consent of the other party.

 

8.                                 Governing Law and

Jurisdiction

 

The Transfer Certificate (including, without

limitation, these Terms and Conditions) 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.

 

Each party irrevocably appoints the person described

as process agent (if any) specified in the Sale Agreement to receive on its

behalf service of any action, suit or other proceedings in connection with the

Transfer Certificate.  If any person

appointed as process agent ceases to act for any reason the appointing party

shall notify the other party and shall promptly appoint another person

incorporated within England and Wales to act as its process agent.

 

9.                                 German Law Security

 

The Transferee confirms that it has received a copy of

each of the Security Documents governed by German law which are pledges, is

aware of their contents and hereby expressly consents to the declarations of

the Security Trustee made on behalf of the New Lender as future pledgee in such

Security Documents

 

216

 

Part III

Debtco Exit Transfer Certificate

 

To:          [    ]

as Agent

 

From:      [Debtco]

(“Debtco”)

and [Initial German Borrowers] (the “Initial German Borrowers”)

 

Dated:

 

[Messer Griesheim GmbH] - EUR1,050,000,000 and

$540,000,000 Senior Facilities 

Agreement dated  •  2001 (the “Facility

Agreement”)

 

1.                                 This

is to record that transfers referred to in paragraph (a) of Clause 26.8 (Transfers on

Debtco Exit Date) which are to take effect in accordance with such

Clause on the Debtco Exit Date in respect of the following Utilisations are to

be transferred from Debtco to the Initial German Obligors as follows:

 

	

  Utilisation

  	

   

  	

  Amount

  of

  Utilisation

  	

   

  	

  Current

  Interest

  Period/Term

  	

   

  	

  Amount

  transferred

  	

   

  	

  Initial

  German

  Borrower to whom

  transferred

  	

   

  
	

  [for

  example, Term A Facility Loan]

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

2.                                 This

certificate is governed by English law.

 

	

  [Debtco]

  	

   

  	

  [Each

  Initial German Borrower]

  
	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

  By:

  

 

Accepted by

the Agent

 

[Agent]

 

By:

 

Date:

 

217

 

SCHEDULE 6

FORM

OF ACCESSION LETTER

 

To:          [            ]

as Agent and

[                  ]

as Security Trustee

 

From:      [Subsidiary]

and [Obligor’s Agent]

 

Dated:

 

Dear Sirs

 

[Messer Griesheim GmbH] - EUR1,050,000,000 and

$540,000,000 Senior Facilities 

Agreement dated • 2001 (the “Facility

Agreement”)

 

1.                                 [Subsidiary]

agrees to become an Additional [Borrower]/[Guarantor] and to be bound by the

terms of the Facility Agreement as an Additional [Borrower]/[Guarantor]

pursuant to Clause [26.2 (Additional Borrowers)]/[Clause 26.4 (Additional

Guarantors)] of the Facility Agreement [except that [insert any

agreed limitations on the [Guarantor’s] obligations under Clause 19 (Guarantee

and Indemnity)].  [Subsidiary]

is a company duly incorporated under the laws of [name of relevant jurisdiction].

 

2.                                 [Subsidiary]

hereby agrees with each other person who is or who becomes a party to the

Intercreditor Deed (as defined in the Facility Agreement) that with effect on

and from the date hereof it will be bound by the Intercreditor Deed as an

Obligor, Intra-Group Lender and Intra-Group Borrower (each as defined in the

Intercreditor Deed).

 

3.                                 [Subsidiary’s]

administrative details are as follows:

 

Address:

 

Fax No:

 

Attention:

 

4.                                 This

letter is governed by English law.

 

5.                                 [The

Obligor’s Agent confirms that [Subsidiary] is a Treasury Borrower].*

 

This Accession Letter is entered into by [Subsidiary]

as a deed.

 

	

   

  	

   

  	

  EXECUTED as a deed

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  by

  
	

   

  	

   

  	

   

  
	

  [Obligor’s Agent]

  	

   

  	

  [Subsidiary]

  

 

* Only include if relevant.

 

218

 

	

   

  	

   

  	

  acting by [name of signatory/ies] in the presence

  of:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Signature of witness:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Name of witness:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Address of witness:

  

 

[Note: each of the following needs to be added if a

Luxembourg company is acceding as an Obligor:

 

For purposes of Article 1 of the Protocol annexed to the Convention on

Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters,

signed in Brussels on 27 September 1968 and without prejudice to the foregoing

execution of the Intercreditor Deed by the parties hereto [Messer Finance S.A.]

expressly and specifically confirms its agreement to the provisions of Clause

38 of the Intercreditor Deed.

 

	

   

  	

   

  
	

   

  
	

  [Messer Finance S.A.]

  

 

[Messer Finance S.A.] declares to have specific knowledge of and

expressly and specifically accepts, for the purposes of Article 1135-1 of the

Luxembourg Civil Code, the content of the following clauses of the

Intercreditor Deed: 9.1, 9.2, 11.3, 14.2, 14.3, 14.5, 19.5, 22.1, 34.7, 34.10,

34.14, 34.18, 34.19 and 38.1.

 

	

   

  	

   

  
	

   

  
	

  [Messer Finance S.A.]

  

 

For purposes of Article 1 of the Protocol annexed to the Convention on

Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters,

signed in Brussels on 27 September 1968 and without prejudice to the foregoing

execution of this Agreement by the parties hereto [Messer Finance S.A.]

expressly and specifically confirms its agreement to the provisions of Clause

40.1 of the Facility Agreement.

 

	

   

  	

   

  
	

   

  
	

  [Messer Finance S.A.]

  

 

[Messer Finance S.A.] declares to have specific knowledge of and expressly

and specifically accepts, for the purposes of Article 1135-1 of the Luxembourg

Civil Code, the content of the following clauses of the Facility Agreement:

Clauses 8, 9, 14, 16, 17.2, 19.24, 25.4, 27.9, 40.

 

	

   

  	

   

  
	

   

  
	

  [Messer Finance S.A.]

  

 

219

 

SCHEDULE 7

FORM

OF RESIGNATION LETTER

 

To:          [              ] as Agent

 

From:      [resigning

Obligor] and [Obligor’s Agent]

 

Dated:

 

Dear Sirs

 

[CORNELIA Verwaltungsgesellschaft mbH] —

EUR1,050,000,000 and $540,000,000 Senior 

Facilities Agreement dated • 2001 (the “Facility

Agreement”)

 

1.                                 Pursuant

to [Clause 26.3 (Resignation of a Borrower)]/[Clause 26.6 (Resignation

of a Guarantor)], we request that [resigning Obligor] be

released from its obligations as a [Borrower]/[Guarantor] under the Facility

Agreement.

 

2.                                 We

confirm that:

 

(a)                                      no

Default is continuing or would result from the acceptance of this request; and

 

(b)                                     [that

[resigning Borrower] is under no actual or contingent obligations (in respect

of principal or interest in relation to any Loan made to it or in respect of

any actual or contingent obligations relating to a Bank Guarantee or Letter of

Credit issued at its request) as a Borrower under any Finance Document.]*

 

3.                                 This

letter is governed by English law.

 

	

  [Obligor’s

  Agent]

  	

  [Subsidiary]

  
	

   

  	

   

  
	

  By:

  	

  By:

  

 

*              Insert

if Borrower resigning.

 

220

 

SCHEDULE 8

FORM

OF COMPLIANCE CERTIFICATE

To:          [               ]

as Agent

 

From:      [Newco

2]

 

Dated:

 

Dear Sirs

 

[Company] — EUR1,050,000,000 and $531,000,000 Senior

Facilities Agreement

dated • 2001 (the “Facility Agreement”)

 

1.                                 We

refer to the Facility Agreement.  This

is a Compliance Certificate.

 

2.                                 We

confirm that:

 

(a)                                      The

ratio of the EBITDA for the Relevant Period ending on [Quarter Date] to the Net

Cash Interest Payable for the Relevant Period ended on such Quarter Date was

[    ]:1.0.

 

(b)                                     The

ratio of  Total Senior Debt on [Quarter

Date] to EBITDA of the Newco 2 Group for the Relevant Period ending on

such Quarter Date was [  ]:1.0.

 

(c)                                      The

ratio of Operating Cash Flow to Total Debt Service for the Relevant Period

ended on [Quarter Date] was [   ]:1.0.

 

(d)                                     The

ratio of  Total Debt on [Quarter Date]

to the EBITDA of the Newco 2 Group for the Relevant Period ending on such

Quarter Date was [  ]:1.0.

 

(e)                                      Total

Debt on [Quarter Date] was EUR [    ].

 

(f)                                        [The aggregate Capital Expenditure of the members of the Newco 2

Group for the Financial Quarter ended [    

] [2001/2002] was [     ]/The

aggregate Capital Expenditure of the members of the Newco 2 Group for the

calendar year ended on [    ] was [    ].

 

3.                                 On

the basis of above, we confirm that:

 

(a)                                      the

Margin in respect of Term A Facility Loans and Revolving Loans after your

receipt of this Compliance Certificate will be [        ] per cent. per annum; and

 

(b)                                     the

Margin in respect of Term B Euro Facility Loans and Term B Dollar Facility

Loans after your receipt of this Compliance Certificate will be [        ] per cent. per annum; and

 

(c)                                      the

Margin in respect of Term C Euro Facility Loans and Term C Dollar Facility

Loans after your receipt of this Compliance Certificate will be [   ] per cent. per annum.

 

221

 

4.                                 [We

also confirm that:

 

(a)                                      the

aggregate EBITDA of the Security Parties for the Relevant Period ended on

[     ] was [  ]% of the consolidated EBITDA

of the Newco 2 Group for that Relevant Period;

 

(b)                                     the

aggregate gross assets of the Security Parties as at

[     ] was [  ]% of the consolidated gross

assets of the Newco 2 Group as at such date;

 

(d)                                     the

aggregate EBITDA of the Guarantors for the Relevant Period ended on [    ] was [  

]% of the consolidated EBITDA of the Newco 2 Group for that

Relevant Period;

 

(e)                                      the

aggregate gross assets (without double counting and excluding assets which are

not included on consolidation) of the Guarantors as at

[     ] was [  

]% of the consolidated gross assets of the Newco 2 Group as at such

date; and

 

(f)                                        the Material Companies for the purposes of paragraphs (b) and (c) of

the definition of Material Company are as follows:

 

[                                                               ]

 

5.                                 For

the purpose of the definition of Relevant Debt Relief Amount we hereby confirm

that the following assets were disposed of during the [Financial

Quarter/calendar year ended [      ]]:

[insert details of assets] and of those assets [    ] were assets disposed of under the Disposal Plan and [    ] were assets falling within paragraph (i)

of the definition of Permitted Disposals and the Debt Relief Amount relating to

each such disposal is as follows: [include amount and how calculated].

 

6.                                 [We

confirm that no Default is continuing.]*

 

	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Prokurist

  	

   

  
	

   

  	

   

  
	

  of

  	

   

  
	

   

  	

   

  
	

  [Newco 2]

  	

   

  
			

 

*                 If

this statement cannot be made, the certificate should identify any Default that

is continuing and the steps, if any, being taken to remedy it.

 

222

 

SCHEDULE 9

RESTRUCTURING PROGRAMME

 

In 2000 MGG management commissioned separate studies

by Roland Berger and Arthur D. Little for the purpose of achieving substantial

cost savings by restructuring its operations and through investment in its

information technology (IT) processes both at the headquarters and at the

regional levels. Based in part on the results of these studies, MGG management

approved a restructuring programme for the Group.  Restructuring of the Group’s IT capabilities has been underway

since 2000, and the general cost savings phase of the programme is anticipated

to be introduced in March 2001.  The

entire restructuring programme is anticipated to be completed by the end of

2003.

 

Cost Savings

 

The cost savings phase of the restructuring programme

involves the relocation of the Group’s corporate headquarters from Frankfurt am

Main to Krefeld, Germany, the reorganisation of certain of the Group’s existing

lines of business and related relocation of business and personnel,

streamlining functions of the Group’s management and personnel, and the

introduction of new operational procedures to optimise production capacity.

Implementation of these measures will require expenditures in the following

categories:

 

1.                                 Reduction

in headcount - Europe Engineering Group

 

2.                                 Reduction

in headcount - Operations throughout Europe

 

3.                                 Optimization

of bulk gas transportation in Europe

 

4.                                 Efficient

cylinder management throughout Europe

 

5.                                 Reduction

of Marketing & Sales Personnel in Europe

 

6.                                 Streamlining

of application activities throughout European organisation

 

7.                                 Corporate

Office headcount reduction

 

8.                                 Relocation

of Corporate Office from Frankfurt to Krefeld

 

9.                                 Reduction

in headcount - Non-core Regional Headquarters (i.e. expats, regional offices).

 

10.                           Headcount

reduction in IT Germany

 

11.                           General

Administration headcount reduction in Germany

 

12.                           Other

General Administration reduction - Europe (non-German)

 

The types of expenses and costs that will be

associated with these categories are:

 

•                  relocation and

moving expenses

 

•                  severance payments

 

•                  penalty fees for the

termination of commercial real estate and equipment leases

 

223

 

•                  investment in new

office equipment and furniture

 

•                  capital expenditure

in IT in connection with operational improvements and

 

•                  associated ancillary

fees and costs,  including depreciation

of capital costs

 

•                  potential penalty

fees for the termination of supplier / distribution agreements.

 

•                  write-off of

operational fixed assets (i.e. tanks, cylinders, etc.)

 

IT Restructuring

 

The Group’s IT capabilities and infrastructure are

being upgraded,  with improvements being

made in information technology in connection with managing the Group’s supply

chain in Europe, and its business to business integration with customers and

suppliers, and its financial management systems.

 

This will include purchase and installation of new

hardware/software in connection with:

 

13.                           European

supply chain management systems

 

14.                           Cylinder

management system for transportation of gas cylinders throughout Europe

 

15.                           Introduction

of business to business applications and integration

 

16.                           New

financial management and accounting software

 

17.                           IT

infrastructure to support the above projects

 

Other costs will include:

 

•                  training

 

•                  installation

 

•                  maintenance

 

•                  trial and associated

start-up costs

 

•                  depreciation of

capital expenditures

 

224

 

SCHEDULE 10

TIMETABLES

 

Part I

Loans

 

	

   

  	

   

  	

  Loans

  in euro

  	

   

  	

  Loans

  in

  sterling

  	

   

  	

  Loans

  in

  dollars

  	

   

  	

  Loans

  in

  other

  currencies

  
	

  Agent

  notifies the Obligor’s Agent if a currency is approved as an Optional

  Currency in accordance with Clause 4.3 (Conditions relating to Optional Currencies and the

  Euro Unit) (if relevant)

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  U-4

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Delivery of

  a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request)

  or a Selection Notice (Clause 11.1 (Selection of Interest Periods and Terms))

  	

   

  	

  U-3

  9.30am

  

  (U noon for UR and U9.30am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-1

  9.30am

  

  (U noon for UR and U9.30am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  9.30am

  

  (U noon for UR and U9.30am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  9.30am

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Agent

  determines amount of the Loan in Optional Currency in accordance with Clause

  6.3 (Change

  of currency)

  	

   

  	

  U-3

  11.00am

  

  (U1.00pm for UR and U11.00am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-1

  11.00am

  

  (U1.00pm for UR and U11.00am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  11.00am

  

  (U1.00pm for UR and U11.00am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  11.00am

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Agent

  determines (in relation to a Utilisation) the Base Currency Amount of the

  Loan, if required under Clause 5.4 (Lenders’ and Fronting Banks’ participation)

  	

   

  	

  U-3

  Noon

  

  (U1.00pm for UR and U11.00am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-1

  Noon

  

  (U1.00pm for UR and U11.00am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  Noon

  

  (U1.00pm for UR and U11.00am for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  Noon

  

 

225

 

	

   

  	

   

  	

  Loans

  in euro

  	

   

  	

  Loans

  in

  sterling

  	

   

  	

  Loans

  in

  dollars

  	

   

  	

  Loans

  in

  other

  currencies

  
	

  Agent

  notifies the Lenders of the Loan in accordance with Clause 5.4 (Lenders’

  and Fronting Banks’ participation)

  	

   

  	

  U-3

  3.00pm

  

  (U2.00pm for UR and U noon for SN if Loan to be made on Closing Date)

  	

   

  	

  U-1

  3.00pm

  

  (U2.00pm for UR and U noon for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  3.00pm

  

  (U2.00pm for UR and U noon for SN if Loan to be made on Closing Date)

  	

   

  	

  U-3

  3.00pm

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Agent

  receives a notification from a Lender under Clause 6.2 (Unavailability of a currency)

  	

   

  	

  U-3

  5.00pm

  

  (Not applicable if Loan to be made on Closing Date)

  	

   

  	

  U-1

  5.00pm

  

  (Not applicable if Loan to be made on Closing Date)

  	

   

  	

  U-3

  5.00pm

  

  (Not applicable if Loan to be made on Closing Date)

  	

   

  	

  U-3

  5.00pm

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Agent gives

  notice in accordance with Clause 6.2 (Unavailability of a currency)

  	

   

  	

  U-2

  9.30am

  

  (U 2.00pm for UR and U noon for SN if Loan to be made on Closing Date)

  	

   

  	

  U

  9.30am

  

  (U 2.00pm for UR and U noon for SN if Loan to be made on Closing Date)

  	

   

  	

  U-2

  9.30am

  

  (U2.00pm for UR and U noon for SN if Loan to be made on Closing Date)

  	

   

  	

  U-2

  9.30am

  

 

226

 

	

   

  	

   

  	

  Loans

  in euro

  	

   

  	

  Loans

  in

  sterling

  	

   

  	

  Loans

  in

  dollars

  	

   

  	

  Loans

  in

  other

  currencies

  
	

  LIBOR or EURIBOR is fixed

  	

   

  	

  Quotation Day as of 11:00 a.m. London time in

  respect of LIBOR and as of 11.00 a.m. Brussels time in respect of

  EURIBOR  (as soon as practicable on U

  for UR and U noon for SN if Loan to be made on Closing Date)

  	

   

  	

  Quotation Day as of 11:00 a.m.

  

  (as soon as practicable on U for UR and U noon for SN if Loan to be made on

  Closing Date)

  	

   

  	

  Quotation Day as of 11:00 a.m.

  

  (as soon as practicable on U for UR and U noon for SN if Loan to be made on

  Closing Date)

  	

   

  	

  Quotation Day as of 11:00 a.m.

  

 

“U”         =

date of utilisation

 

“U - X” = X Business Days prior to date of utilisation

 

“UR”      =

Utilisation Request

 

SN           =

Selection Notice

 

227

 

Part II

Letters of Credit and Bank Guarantees

 

	

   

  	

   

  	

  Letters

  of Credit/Bank Guarantees

  
	

  Delivery of a duly completed Utilisation Request

  (Clause 5.1 (Delivery of a Utilisation Request)

  	

   

  	

  U-5

  

  9.30am

  
	

   

  	

   

  	

   

  
	

  Agent notifies the Lenders and the relevant Fronting

  Bank of the Letter of Credit or Bank Guarantee in accordance with Clause 5.4

  (Lenders’

  and Fronting Banks’ Participation).

  	

   

  	

  U-3

  

  Noon

  
	

   

  	

   

  	

   

  
	

  Delivery of written notice to the Agent requesting

  an extension to the Term of a Letter of Credit or Bank Guarantee in

  accordance with Clause 5.6 (Renewal of a Letter of Credit or Bank Guarantee)

  	

   

  	

  U-4

  

  4.00pm

  

 

“U” = date of utilisation

 

“U - X” = X Business Days prior to date of utilisation

 

228

 

SCHEDULE 11

FORM OF BANK GUARANTEE

To:          [Beneficiary]

 

Date:   [                  ]

 

Dear Sirs

 

Irrecoverable Guarantee No. [            ]

 

1.                                 In

this letter:

 

“Borrower” means [details].

 

“Business Day” means a day (not being a

Saturday, Sunday or public holiday) on which banks and foreign exchange markets

are open for dealings in London.

 

“Expiry Date” means [details].

 

“Facility” means [details].

 

“Issuer” means [details of Fronting Bank].

 

“Payment Date” means the date for payment of

a demand being [details - minimum five] business days after the date of

receipt of demand.

 

2.                                 In

consideration of your agreeing to make available the Facility the Issuer

irrevocably and unconditionally guarantees to you on receipt of written demand,

the payment and discharge by the Borrower of all amounts payable or expressed

to be payable to you pursuant to the Facility. This guarantee is given subject

as follows:

 

(a)                                      any

demand made hereunder shall be made in writing addressed to the Issuer or its

offices at [details]

(Attention: [details]) in the form provided in Appendix A;

 

(b)                                     the

maximum aggregate liability of the Issuer hereunder (inclusive of all

principal, interest, costs and expenses) is [EURO/$ /£/other]; and

 

(c)                                      no

demand may be made hereunder after the Expiry Date and only one demand may be

made hereunder.

 

3.                                 Any

payment made hereunder shall be made on the Payment Date in [currency]

by payment to the account of the Beneficiary specified in the demand.

 

4.                                 This

guarantee is not assignable or transferable in whole or in part.

 

5.                                 This

guarantee shall be governed by English law and the courts of England shall have

exclusive jurisdiction.

 

229

 

	

  Yours faithfully

  
	

   

  
	

   

  	

   

  
	

  for and on behalf of

  [name

  of Fronting Bank]

  

 

230

 

APPENDIX

TO BANK GUARANTEE

 

[Headed

Notepaper of Beneficiary]

 

To:             [                                                                            ]

 

From:         [                              ]

 

Bank Guarantee Ref. No. - (the “Bank Guarantee”)

 

We refer to

the Bank Guarantee.  Terms defined in

the Bank Guarantee and not otherwise defined herein bear the same meaning

herein.

 

We certify

that:

 

(a)                            we have

provided the Facility to the Borrower on the terms and conditions approved by

you at the time of issue of the Bank Guarantee;

 

(b)                           the terms

of the Facility are the same as those prevailing at the time of issue of the

Bank Guarantee (or, to the extent that they are not, any amendments thereto

have been approved by you);

 

(c)                            an

aggregate amount (the “Payment Amount”) of • (comprising • of principal

and • of interest and/or other charges) fell

due for payment in • by • on • and remains due and

unpaid at the date of this letter.

 

Accordingly, we hereby request payment

under the Bank Guarantee of the Payment Amount.  Payment is to be made to our account (A/C No. •) with • at •.

 

	

  Yours faithfully

  
	

   

  
	

   

  	

   

  
	

  for and on behalf of [the Beneficiary]

  

 

231

 

SCHEDULE 12

FORM OF LETTER OF CREDIT

 

To:          [Beneficiary]

 

Date: [                    ]

 

Irrevocable Standby Letter of Credit No. [         ]

 

This Letter of Credit is issued by [                            ], (the “Issuer”)

at the request of [          ] in your

favour on the following terms:

 

1.                                 The

Issuer shall not be obliged to make payments under this Letter of Credit

exceeding in aggregate the maximum amount of [            ].  Any payment

under this Letter of Credit shall be made in [currency] and shall reduce

the Issuer’s liability to make payment under this Letter of Credit accordingly.

 

2.                                 This

Letter of Credit shall expire at [      

] a.m./p.m., London time on [             ] (the “Expiry Date”).  The Issuer will have no liability in respect of any demand

delivered after such time [and a demand not accompanied by the information

mentioned in paragraph 3(b) below shall not be validly delivered].

 

3.                                 Subject

to paragraph 2 above, within five business days of receiving (a) your demand on

the Issuer [in the form set out in the Appendix to this Letter of Credit]

specifying the amount claimed under this Letter of Credit and bearing an

endorsement of the above Letter of Credit number and (b) [details of any other documents required

from the Beneficiary to be inserted (including a certificate verified as having

been signed by two authorised officers of the Beneficiary authorising delivery

of the demand)], at [details of Fronting Bank’s office to be inserted]

the Issuer agrees to pay to you in the currency specified in paragraph 1 above,

subject to the maximum amount referred to in paragraph 1 above.

 

4.                                 Your

rights and the rights of the Issuer under this Letter of Credit may not be

assigned or transferred.

 

5.                                 This

Letter of Credit is subject to Uniform Customs and Practice for Documentary

Credits (International Chamber of Commerce, Publication No. 500 - 1993).

 

6.                                 This

Letter of Credit is governed by English law and the courts of England shall

have exclusive jurisdiction.

 

	

  Yours faithfully

  
	

   

  
	

   

  
	

   

  	

   

  
	

  for and on behalf of

  [name

  of Fronting Bank]

  

 

232

 

SCHEDULE 13

MATERIAL COMPANIES AS AT SIGNING

 

Messer Griesheim GmbH

 

Messer Griesheim Industriegase GmbH

 

Messer UK Limited

 

Messer France S.A.

 

Messer Griesheim Industries, Inc.

 

Messer Hungarogaz Kft

 

MG de Mexico S.A. de C.V.

 

Messer Trinidad & Tobago Limited

 

Messer International GmbH

 

Messer Nederland B.V.

 

233

 

SCHEDULE 14

FORM OF AUDITOR’S REPORT

 

Private and confidential

 

The Directors

Messer

Griesheim GmbH (“MGG”)

and

The directors

DIOGENES

Vierte Vermögensverwaltungs Aktiengesellschaft (“Newco 2”)

 

Dear Sirs

 

In accordance with the terms of our engagement letter

dated

               ,

we have reviewed the preparation of the compliance certificate (attached hereto

and initialled by us for the purposes of identification) (the “compliance

certificate”) which is being provided pursuant to the senior

facilities agreement dated • (the “Facilities Agreement”) made between, among

others, CORNELIA Verwaltungsgesellschaft mbH, and the persons who become

borrowers pursuant to the provisions of the Facilities Agreement, the persons

who become guarantors pursuant to the provisions of the Facilities Agreement,

Goldman Sachs International as Global Co-ordinator, Goldman Sachs International

and others as Joint Lead Arrangers, the persons named therein as Lenders, the

agent and the security trustee.

 

Responsibility

 

The compliance certificate (see definition above), as

well as the accompanying audited financial statements of the Newco 2 Group

prepared in accordance with International Accounting Standards, have been

prepared by, and are the sole responsibility of, the directors of Newco 2. Our

responsibility is to report on the results of our review.

 

A copy of the compliance certificate and the

accompanying financial statements is attached hereto and initialled by us for

the purpose of identification.

 

Basis of opinion

 

Our work included a review of the calculations of the

financial covenants to assess if they have been calculated properly in

accordance with paragraphs 21.2 (b) and 22 of the Facilities Agreement and have

been properly extracted from the audited accounts, certain specified records of

the company, and audited IAS adjustment schedules.

 

We planned and performed our work so as to obtain all

the information and explanations which we considered necessary in order to

provide us with sufficient evidence to give reasonable assurance that the

financial covenants have been properly calculated on the basis specified in

paragraphs 21.2 (b) and 22 of the Facilities Agreement, so far as matters

material to their preparation are concerned and the EBITDA and gross assets

numbers for the purposes of Clause 23.30 (Guarantor Group and Security Coverage) of

the Facilities Agreement and paragraphs (b) and (c) of the definition of

Material Companies in Clause 1.1 of the Facilities Agreement have been properly

calculated.

 

234

 

These procedures did not constitute an audit of the

financial statements, and consequently we express no opinion as to whether the

financial statements present fairly the state of affairs of the Newco 2 Group

as at

                       .

 

Opinion

 

In our opinion, the calculations in sections 2 and 3

of the compliance certificate have been calculated in accordance with

paragraphs 21.2 (b) and 22 of the Facilities Agreement. The Margins referred to

in section 3 of the compliance certificate have been correctly extracted from

tables in paragraph 10.2 (a) and (b) of the Facilities Agreement on the basis

of the information set out in section 2.

 

On the basis that the Security Parties are [list of

companies] and the Guarantors are [list] we confirm that in our opinion the

calculations in section 4 (a), (b), (c) and (d) of the compliance certificate

have been calculated in accordance with paragraph 22 of the Facilities

Agreement.

 

In our opinion, the companies listed in section 4 (e)

of the compliance certificate are the Material Companies as defined in

paragraphs (b) and (c) of such definition of the Facilities Agreement.

 

Restriction on use of report/Governing Law

 

This report is exclusively for the information of the

addressees and for use solely in connection with matters relating to paragraphs

21.2 (b), 22, 10.2 (a) and (b), 23.30 of the Facilities Agreement and the

definition of Material Companies and is not to be copied, quoted or referred

to, in whole or in part, in any other connection without out prior written

consent. For the avoidance of any doubt, this report may be circulated to the

Finance Parties (as defined in the Facilities Agreement) in connection with

these paragraphs of the Facilities Agreement.

 

The terms of engagement for this report have been

established by the directors of Newco 2 and are based on the General Conditions

of Assignment for Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften in

the version dated, July 1, 2000 ( a copy of which is attached hereto). We will

not accept responsibility to any other party to whom this report may be shown

or who may acquire a copy of the report.

 

This report is governed by and construed in accordance

with the laws of the Federal Republic of Germany. Place of Jurisdiction for any

dispute arising out to in connection with this letter shall be exclusively

[Frankfurt am Main, Germany].

 

Yours faithfully

 

235

 

SCHEDULE 15

SECURITY PRINCIPLES

 

This Schedule sets out the principles upon which the

type and extent of the Security to be required from a proposed Additional

Obligor is to be decided upon.

 

1.                                 Initial Obligors

 

The Security to be provided by each of the Initial

Obligors incorporated in Germany, any state of the United States of America,

England, France and the Netherlands (each such country or state being a “Key

Jurisdiction”) and any Initial Obligor incorporated in Austria or

Luxembourg has already been agreed upon and is to be as follows pursuant to

Security Documents which are in agreed form:

 

(a)                                      Germany

 

Each of the Initial Obligors incorporated in Germany

will provide:

 

(i)        pledges by its direct Holding Company or

Holding Companies over all of the shares in that Initial Obligor by way of

first ranking share pledges and (in favour of the Mezzanine Finance Parties)

second ranking share pledges;

 

(ii)       an assignment of its receivables pursuant

to a Global Assignment Agreement;

 

(iii)      a security transfer of its intellectual

property rights pursuant to a Security Transfer of IP Rights;

 

(iv)      security over its bank accounts by way of

first ranking account pledges and (in favour of the Mezzanine Finance Parties)

second ranking account pledges (it being noted that such pledge will rank behind

any pledge in favour of the German account bank under its General Business

Conditions and that the pledgor has the obligation to use its reasonable

endeavours to get the account bank to waive or subordinate its pledge);

 

(v)       security over its land pursuant to a

notarial deed (creating  land charges)

and a Security Purpose Agreement (relating to such land charges);

 

(vi)      security by way of transfer of collateral

of its stock, machinery and inventory pursuant to a Transfer of Moveables; and

 

(vii)     in the case of MGG, security (governed by

English law) will be provided over a bank account opened by it with The Chase

Manhattan Bank in London which is identified as a Prepayment Escrow Account and

pursuant to which no amounts may be withdrawn other than as provided in Clause

9 (Repayment and Cancellation).

 

(b)                                     France

 

Each of the Initial Obligors incorporated in France

will provide:

 

236

 

(i)                        pledges by its direct Holding Company or Holding Companies over all

of the shares in that Initial Obligor;

 

(ii)                     a pledge over its bank accounts pursuant to a Bank Account Pledge.

 

(c)                                      The

Netherlands

 

Each of the Initial Obligors incorporated in The

Netherlands will provide:

 

(i)        pledges by its direct Holding Company or

Holding Companies over all of the shares in that Initial Obligor;

 

(ii)       a pledge of its receivables;

 

(iii)      a pledge over its stock and assets;

 

(iv)      a pledge of its bank accounts;

 

(v)       a pledge of its intellectual property

rights;

 

(vi)      (in the case of a Treasury Borrower

incorporated in The Netherlands, in addition to the above) security (governed

by English law) over its Intra Group Loans,

 

save that if it is a Treasury Borrower it will only

provide the security referred to in paragraphs (i), (iv) and (vi) above.

 

(d)                                     United

States

 

Each of the Initial Obligors incorporated in a state

of the United States of America will provide a pledge and security agreement

creating security over all of its assets (other than real property) and a

pledge by its direct Holding Company or Holding Companies over all of the

shares in that Initial Obligor.

 

(e)                                      England

 

Each of the Initial Obligors incorporated in England

will provide a debenture creating fixed and floating charges over all of its

assets and a charge by its direct Holding Company or Holding Companies over all

of the shares in that Initial Obligor.

 

(f)                                        Austria

 

Each of the Initial Obligors incorporated in Austria

will provide pledges by its direct Holding Company or Holding Companies over

all of the shares in that Initial Obligor, so that MGG will pledge all of its

shares in Messer Austria GmbH.

 

(g)                                     Luxembourg

 

If a Treasury Borrower is incorporated in Luxembourg

it will provide:

 

237

 

(i)                        a pledge by its direct Holding Company over all the shares in such

Treasury Borrower;

 

(ii)                     a pledge of its receivables;

 

(iii)                  an account charge over its bank accounts; and

 

(iv)                 in

addition to or instead of (ii), security (governed by English law) over its

Intra-Group Loans.

 

(h)                                     Security

over shares held by Initial Obligors

 

The relevant Initial Obligors listed below shall also

provide pledges over all of the shares/partnership interests in the companies

indicated below.

	

  Initial

  Obligor

  	

   

  	

  Company

  whose shares

  pledged

  	

   

  	

  Jurisdiction

  of incorporation

  and registered number (or

  equivalent) of company whose

  shares pledged

  
	

  MGG

  	

   

  	

  Messer AGS

  GmbH

  	

   

  	

  Germany,

  registered in the Handelsregister (commercial register) of

  the Amtsgericht

  (local court of Hanau under, HRB6265

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  MGG

  	

   

  	

  Messer Polska

  Sp. zo.o.

  	

   

  	

  Poland

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Messer

  Nederland B.V.

  	

   

  	

  Messer

  Belgium N.V.

  	

   

  	

  Belgium, BE

  402.166.453

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  MGG

  	

   

  	

  Messer

  Hungarogaz Kft

  	

   

  	

  Hungary, Cg.

  01-09-076414

  

 

2.                                 Other Additional Obligors

 

(a)                                      The

Security to be provided by any Additional Obligor which is not an Initial

Obligor but which is incorporated in a Key Jurisdiction shall consist of the

same type and extent of Security as provided by an Initial Obligor incorporated

in such Key Jurisdiction (to the extent relevant to such Additional Obligor) (including,

for the avoidance of doubt, pledges from that Additional Obligor’s Holding

Company or Holding Companies over all of the shares in that Additional Obligor)

and shall as far as possible be provided pursuant to a Security Document or

Security Documents on the same terms as those provided by such Initial Obligor.

 

(b)                                     In

regard to any Additional Obligor not falling within paragraphs 1 or 2(a) above,

the presumption shall be that the only Security to be provided by such

Additional Obligor is a pledge by its Holding Company or Holding Companies over

all of the shares in that Additional Obligor. 

If the Agent determines (acting reasonably) that Security over all or

any of its other assets can be 

 

238

 

provided

at relatively low cost (in terms of legal fees and other costs and expenses

associated with any such Security) which would provide some significant value

in terms of Security to the Finance Parties then, subject as provided below,

the provision of such Security shall be a condition to such Additional Obligor

becoming an Additional Obligor if the Agent (acting on the instructions of the

Majority Lenders) so requires.

 

3.                                 Debtco

 

The security to be provided by Debtco is specified in

Part III of Schedule 2 (Conditions Precedent).

 

4.                                 General Principles

 

(a)                                      In

regard to any proposed Security to be provided by any Additional Obligor, due

regard shall be had to:

 

(i)        any risk that the directors of a company

being asked to provide Security could be held to be in breach of applicable

company or criminal law in providing such Security;

 

(ii)       the practicality and costs involved in

taking any such Security; and

 

(iii)      the value of the proposed Security to the

Finance Parties in light of the whole of the Security already provided to them

at such time.

 

(b)                                     Any

Security over any assets of an Additional Obligor shall (to the extent legally

possible) secure the obligations of such Additional Obligor under the Finance

Documents and the Mezzanine Finance Documents and shall (to the extent legally

possible) create first priority Security over such assets.  All share pledge Security shall create first

priority Security over the shares pledged.

 

(c)                                      Save

where it is inappropriate under applicable law or in relation to the specific

security being provided, all Security shall only be enforceable upon the

occurrence of an Enforcement Event which is continuing.  An Enforcement Event is any of the events

listed in paragraphs (a), (b), (c) or (e) of Clause 24.15 (Acceleration) of this

Agreement or paragraphs (a), (b) or (c) of Clause 22.14 of the Mezzanine

Facility Agreement.

 

(d)                                     Representations

will only relate to the creation of the Security, and undertakings additional

to those in this Agreement will only be included to the extent necessary under

local law to create Security (such as a fixed charge) where such Undertakings

will not interfere with the normal running of the business.

 

239

 

SCHEDULE 16

DISPOSAL

PLAN

 

This Schedule sets out below the members of the MGG

Group, the Unconsolidated Subsidiaries of MGG and the minority interests and

assets of the MGG Group and such Unconsolidated Subsidiaries which are intended

to be sold (either by way of share sale and/or by way of asset sale) pursuant

to the disposal programme intended to be implemented after the Closing Date.

 

	

  Country

  	

   

  	

  Company/Asset

  	

   

  	

  MGG%

  shareholding/% of asset owned (direct or indirect)

  	

   

  
	

  Consolidated Subsidiaries of MGG

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Argentina

  	

   

  	

  Messer Argentina S.A.

  	

   

  	

  99.63

  	

  %

  
	

  Australia

  	

   

  	

  Messer Australia Pty. Ltd.

  	

   

  	

  100

  	

  %

  
	

  Australia

  	

   

  	

  Kingstream Steel Limited

  	

   

  	

  3.58

  	

  %

  
	

  Brazil

  	

   

  	

  Messer Griesheim do Brasil Ltda.

  	

   

  	

  99.99

  	

  %

  
	

  US/Canada

  	

   

  	

  The Canadian Healthcare and US CO2 divisions of the

  MGG Group

  	

   

  	

  100

  	

  %

  
	

  China

  	

   

  	

  Sichuan Messer Gas Products Co. Ltd.

  	

   

  	

  100

  	

  %

  
	

  China

  	

   

  	

  Hunan Xianggang Messer Gas Products Co. Ltd.

  	

   

  	

  55

  	

  %

  
	

  China

  	

   

  	

  Messer Sunshine (Ningbo) Gas Products

  	

   

  	

  70

  	

  %

  
	

  China

  	

   

  	

  Yunnan Messer Gas Products Co. Ltd.

  	

   

  	

  100

  	

  %

  
	

  China

  	

   

  	

  Messer North China Industrial Gas Co., Ltd.

  	

   

  	

  100

  	

  %

  
	

  Germany

  	

   

  	

  Messer Medical GmbH

  	

   

  	

  100

  	

  %

  
	

  Guatemala

  	

   

  	

  Messer de Centroamerica S.A.

  	

   

  	

  50

  	

  %

  
	

  Guatemala

  	

   

  	

  Carbox S.A.

  	

   

  	

  25

  	

  %

  
	

  Guatemala

  	

   

  	

  Servigil S.A.

  	

   

  	

  100

  	

  %

  
	

  US

  	

   

  	

  MG Generon, Inc.

  	

   

  	

  100

  	

  %

  
	

  Indonesia

  	

   

  	

  PT Aneka Gas Industri

  	

   

  	

  90

  	

  %

  
	

  China

  	

   

  	

  SMC Asia Gas Systems Company Limited

  	

   

  	

  33.33

  	

  %

  

 

240

 

	

  Country

  	

   

  	

  Company/Asset

  	

   

  	

  MGG%

  shareholding/% of asset owned (direct or indirect)

  	

   

  
	

  China

  	

   

  	

  Ningbo Messer Donghai Carbon Dioxide Co. Ltd.

  	

   

  	

  60

  	

  %

  
	

  Austria/Germany

  	

   

  	

  Messer Medical GmbH

  	

   

  	

  100

  	

  %

  
	

  Korea

  	

   

  	

  Messer Korea Ltd.

  	

   

  	

  75

  	

  %

  
	

  Korea

  	

   

  	

  Messer Myung Sin Gas Limited

  	

   

  	

  50

  	

  %

  
	

  Malaysia

  	

   

  	

  Messer Malaysia Sdn Bhd

  	

   

  	

  100

  	

  %

  
	

  Malaysia

  	

   

  	

  Secomex Manufacturing (M) Sdn Bhd

  	

   

  	

  49

  	

  %

  
	

  Mexico

  	

   

  	

  Messer Griesheim de Mexico S.A. de C.V.

  	

   

  	

  99.99

  	

  %

  
	

  Peru

  	

   

  	

  Messer Gases S.A.

  	

   

  	

  91.90

  	

  %

  
	

  Peru

  	

   

  	

  Messer Gases del Peru S.A.C.

  	

   

  	

  99.99

  	

  %

  
	

  South Africa

  	

   

  	

  FedGas (Pty) Ltd.

  	

   

  	

  100

  	

  %

  
	

  Taiwan

  	

   

  	

  Messer Taiwan Co. Ltd.

  	

   

  	

  100

  	

  %

  
	

  Taiwan

  	

   

  	

  Messer TPO Enterprise Co.  Ltd.

  	

   

  	

  50

  	

  %

  
	

  Trinidad & Tobago

  	

   

  	

  Messer Trinidad & Tobago Limited

  	

   

  	

  99.99

  	

  %

  
	

  Turkey

  	

   

  	

  Messer Technik Gazlar Sanayi ve Ticaret Sti

  	

   

  	

  80

  	

  %

  
	

  Turkey

  	

   

  	

  Messer Aligaz Holding AS

  	

   

  	

  55

  	

  %

  
	

  US

  	

   

  	

  MG Generon, Inc.

  	

   

  	

  100

  	

  %

  
	

  Venezuela

  	

   

  	

  Messer Gases S.A.

  	

   

  	

  100

  	

  %

  
	

  Zimbabwe

  	

   

  	

  Messer Zimbabwe (Private) Limited

  	

   

  	

  100

  	

  %

  
	

  Non-Consolidated Companies

  	

   

  
	

  China

  	

   

  	

  Yunnan Zhanhua Messer Gas Products Co. Ltd.

  	

   

  	

  60

  	

  %

  
	

  China

  	

   

  	

  Messer International Trading (Shanghai) Co. Ltd.

  	

   

  	

  100

  	

  %

  
	

  Egypt

  	

   

  	

  Messer Egypt S.A.E

  	

   

  	

  49.49

  	

  %

  
	

  Egypt

  	

   

  	

  Messer Gases Dekheila Co S.A.E

  	

   

  	

  46.32

  	

  %

  

 

241

 

	

  Country

  	

   

  	

  Company/Asset

  	

   

  	

  MGG%

  shareholding/% of asset owned (direct or indirect)

  	

   

  
	

  Honduras

  	

   

  	

  Messer Honduras S.A. de C.V.

  	

   

  	

  50

  	

  %

  
	

  India

  	

   

  	

  Bombay Oxygen Corporation Limited

  	

   

  	

  50% plus 1

  share

  	

   

  
	

  India

  	

   

  	

  Goyal MG Gases Ltd.

  	

   

  	

  48.955

  	

  %

  
	

  Indonesia

  	

   

  	

  PT Aneka Messer Industrial Gases

  	

   

  	

  65

  	

  %

  
	

  Nicaragua

  	

   

  	

  Messer de Nicaragua S.A.

  	

   

  	

  50

  	

  %

  
	

  Sri Lanka

  	

   

  	

  Messer Industrial Gases (Private) Limited

  	

   

  	

  51

  	

  %

  
	

  Thailand

  	

   

  	

  Messer Industrial Gases Thailand Co. Ltd.

  	

   

  	

  74.99

  	

  %

  
	

  Trinidad & Tobago

  	

   

  	

  Neal and Massy Gas Products Ltd.

  	

   

  	

  42.71

  	

  %

  
	

  Turkey

  	

   

  	

  Messer Aligaz Holding AS

  	

   

  	

  50

  	

  %

  
	

  Vietnam

  	

   

  	

  Messer Haiphong Industrial Gases Co. Ltd.

  	

   

  	

  67

  	

  %

  
	

  Egypt

  	

   

  	

  Messer Gases Suez S.A.E.

  	

   

  	

  45

  	

  %

  
	

  Vietnam

  	

   

  	

  Messer Vietnam Industrial Gases Co. Ltd.

  	

   

  	

  100

  	

  %

  

 

242

 

SCHEDULE 17

CENTRAL AMERICAN ENTITIES

 

	

  Central American Entities

  	

   

  	

  Relevant

  Jurisdiction

  	

   

  	

  MGG

  Group

  Shareholding

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Messer

  Griesheim de Mexico S.A. de C.V.

  	

   

  	

  Mexico

  	

   

  	

  99.99

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Messer

  de El Salvador S.A. de C.V.

  	

   

  	

  El Salvador

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Messer

  de Centroamerica S.A.

  	

   

  	

  Guatemala

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Carbox

  S.A.

  	

   

  	

  Guatemala

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Servigil

  S.A.

  	

   

  	

  Guatemala

  	

   

  	

  100

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Messer

  de Nicaragua S.A.

  	

   

  	

  Nicaragua

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Carbox

  de Nicaragua S.A.

  	

   

  	

  Nicaragua

  	

   

  	

  25.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Messer

  de Honduras S.A. de C.V.

  	

   

  	

  Honduras

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Compania

  de Productos Atmosféricos S.A. de C.V.

  	

   

  	

  Honduras

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Gases

  Indústriales S.A. de C.V.

  	

   

  	

  Honduras

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Coxgas

  S.A. de C.V.

  	

   

  	

  Honduras

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Carbox

  S.A. Honduras

  	

   

  	

  Honduras

  	

   

  	

  50.00

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Greenbelt

  Holdings Ltd.

  	

   

  	

  British Virgin Islands

  	

   

  	

  100.00

  	

  %

  

 

243

 

SIGNATURES

 

The Company

 

	

  CORNELIA VERWALTUNGSGESELLSCHAFT MBH

  
	

   

  	

   

  
	

  By:

  	

  WOLFGANG FINK

  
	

   

  	

   

  
	

  Address:

  	

  c/o Allianz Capital Partners GmbH

  Theresienstr. 1-7

  8033 Munchen

  Germany

  Attention:    Stefan Sanne

  

  and

  

  c/o Goldman Sachs International

  Peterborough Court

  133 Fleet Street

  London EC4A 2BB

  United Kingdom

  Attention:     Ulrika Werdelin

  
	

   

  	

   

  
	

  The Arrangers

  
	

   

  	

   

  
	

  GOLDMAN SACHS INTERNATIONAL

  
	

   

  	

   

  
	

  By:

  	

  SIMON PARRY-WINGFIELD

  
	

   

  	

   

  
	

  BAYERISCHE HYPO- UND VEREINSBANK AG

  
	

   

  	

   

  
	

  By:

  	

  MATTHIAS MAGNUS

  

  CHRISTIAN FEDERSPIELER

  
	

   

  	

   

  
	

  J.P. MORGAN PLC

  
	

   

  	

   

  
	

  By:

  	

  JAMES YU

  
	

   

  	

   

  
	

  THE ROYAL BANK OF SCOTLAND PLC

  
	

   

  	

   

  
	

  By:

  	

  GERD BIEDING

  
	

   

  	

   

  
	

   

  	

  FRANK SCHAUZ

  

 

244

 

	

  The Agent

  	

   

  
	

   

  	

   

  
	

  CHASE MANHATTAN INTERNATIONAL LIMITED

  
	

   

  	

   

  
	

  By:

  	

  JAMES B. TREGER

  
	

   

  	

   

  
	

  Address:

  	

  Trinity Tower

  9 Thomas More Street

  London E1 9YT

  Fax: 0207-777-2360

  
	

   

  	

   

  
	

  Attention:

  	

  Steve Clarke

  
	

   

  	

   

  
	

  The Security Trustee

  
	

   

  	

   

  
	

  CHASE MANHATTAN INTERNATIONAL LIMITED

  
	

   

  	

   

  
	

  By:

  	

  JAMES B. TREGER

  
	

   

  	

   

  
	

  Address:

  	

  Trinity Tower

  9 Thomas More Street

  London E1 9YT

  Fax: 0207-777-2360

  
	

   

  	

   

  
	

  Attention:

  	

  Steve Clarke

  
	

   

  	

   

  
	

  The Lenders

  
	

   

  	

   

  
	

  GOLDMAN SACHS CREDIT PARTNERS, L.P.

  
	

   

  	

   

  
	

  By:

  	

  SIMON PARRY-WINGFIELD

  
	

   

  	

   

  
	

  Facility Office:

  	

  Peterborough Court

  133 Fleet Street

  London EC4A 2BB

  
	

   

  	

   

  
	

  BAYERISCHE HYPO- UND VEREINSBANK AG

  
	

   

  	

   

  
	

  By:

  	

  CHRISTIAN FEDERSPIELER

  

  MATTHIAS MAGNUS

  
	

   

  	

   

  
	

  Facility Office:

  	

  Niederlassung Frankfurt

  Mainzer Landstr. 23

  60329 Frankfurt a. Main

  Germany

  
			

 

245

 

	

  THE CHASE MANHATTAN BANK

  
	

   

  	

   

  
	

  By:

  	

  JAMES B. TREGER

  
	

   

  	

   

  
	

  Facility Office:

  	

  125 London Wall

  London

  EC2Y 5AJ

  
	

   

  	

   

  
	

  THE ROYAL BANK OF SCOTLAND PLC

  
	

   

  	

   

  
	

  By:

  	

  FRANK SCHAUZ

  

  GERD BIEDING

  
	

   

  	

   

  
	

  Facility Office:

  	

  Rahmhofstrasse 2-4

  D-60313 Frankfurt

  

 

246

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