Document:

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                             MASTER SERVICES AGREEMENT

      This Master Services Agreement (hereinafter referred to as the
"Agreement") is made and entered into on this the 29th day of September, 2005
(the "Effective Date"), by and between NGS TECHNOLOGIES, INC., a Delaware
corporation, and its affiliates (hereinafter referred to as "NGS") and MTEM,
LTD., a United Kingdom corporation (hereinafter referred to as the "Contractor")
sometimes referred to hereinafter collectively as "Parties" or individually as
"Party."

      WHEREAS, NGS is in the business of exploration, development and production
of hydrocarbons;

      WHEREAS, Contractor is the owner and holder of certain patents, licenses
and rights to multi-transient electromagnetic survey technology and is in the
business of conducting and analyzing multi-transient electromagnetic surveys for
the oil and gas industry;

      WHEREAS, NGS desires to put in place an agreement with the Contractor to
provided a framework for the provision by the Contractor of surveys over oil and
gas properties using the EM Technology (as defined below) which surveys may be
conducted in combination with certain technology that may be owned in the future
by NGS or its subsidiaries;

      NOW, THEREFORE, the Parties hereto, with the intent to be legally bound,
in return for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, including the mutual exchange of covenants and
promises herein contained, agree as follows:

1.    DEFINITIONS

      In this Agreement, unless the context otherwise requires, the following
terms shall have the meaning set out opposite them below:

"Affiliates" means a Party's holding company, majority owned subsidiaries, and
any majority owned subsidiaries of such holding company;

"Agreement Year" means a period of twelve (12) months commencing on the
Effective Date or any anniversary thereof;

"Contractor Group" means the Contractor and any or all agents, directors,
officers, employees, contractors or invitees of the Contractor or its
Affiliates;

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"Deliverables" means Raw Data and any multi-transient electromagnetic surveys,
reports, analyses, compilations, data, studies and other materials to be
supplied by the Contractor as specified in a Statement of Work;

"EM Technology" means MTEM's proprietary multi-transient electromagnetic survey
technology;

"Intellectual Property Rights" means all present and future intellectual
property rights of any kind whatsoever now or hereafter existing including,
without limitation, patents, registered designs, copyrights, database rights
(excluding the Raw Data collected on behalf of NGS), design rights, trademarks,
trade names, domain names and know-how, whether or not any of these is
registered or capable of registration, and all rights or forms of protection of
a similar nature or having equivalent or similar effect to any of these which
may subsist in any part of the world from time to time and any applications for
any such rights or registrations thereof;

"NGS Group" means NGS and any or all agents, directors, officers, employees,
contractors, joint owners or invitees of NGS or its Affiliates;

"Raw Data" means the individual unstacked impulse responses from each
source-receiver pair located in the electromagnetic survey as collected by
Contractor in the provision of the Services;

"Services" means the carrying out of hydrocarbon surveys over oil and gas
properties using EM Technology, including all ancillary mobilization and
demobilization relating to such surveys and the provision of data processing and
data inversion services as outlined under any Statement of Work;

"Statement of Work" means a document agreed between the Parties setting out
their detailed rights and obligations in relation to specific Services, in a
format to be agreed between the Parties from time to time.

2.    SERVICES

2.1   Agreement of Services.

      2.1.1 It is contemplated that from time to time during the term of this
Agreement, Contractor may be requested by NGS (through its duly authorized
representatives) to perform survey services utilizing its EM Technology anywhere
on the North American Continent. However the execution of this Agreement is not
intended nor will it be construed to obligate NGS to award any specific services
to Contractor or, to obligate the Contractor to provide any specific services to
NGS, unless as provided otherwise under this Agreement.

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      2.1.2 NGS will request the Contractor to supply the Services by delivering
to Contractor an outline Statement of Work. The Parties will thereafter use best
reasonable commercial efforts to negotiate a mutually agreeable Statement of
Work within sixty (60) days from Contractor's receipt of the outline Statement
of Work, or such other period as may be agreed between the Parties.

      2.1.3 The Parties shall conduct the negotiations for the Statement of Work
in good faith, except that the Contractor will not be required to agree to
perform Services as follows:

      (a) at times where Contractor's resources are unavailable or pre-committed
      pursuant to the terms of an existing fully executed written agreement with
      a third party, provided that Contractor shall give first priority to NGS
      for its next available resources or at the end of the existing commitment;
      or

      (b) which are for the benefit of a group in which NGS is less than a
      majority owner or a majority working interest owner. In particular
      Contractor will not be obliged to provide Services to NGS where NGS is
      acting as a sub-contractor for any other person or entity; or

      (c) where the Statement of Work requests less than fourteen (14) days of
      Services, such days being consecutive where reasonably practical for NGS;
      or

      (d) which are beyond the scope of the usual business of Contractor.

      2.1.4 In addition to its rights under section 2.1.3, the Contractor will
not be obliged to provide in excess of sixty (60) days of Services per Agreement
Year. For purposes of this paragraph, the delivery date to Contractor of a
Statement of Work proposed by NGS under Section 2.1.2, where Services are
ultimately delivered, shall be used in allocating the days of Service to any
particular Agreement Year.

      2.1.5 It is specifically understood between the Parties that no
performance is required hereunder except after agreement in writing to a
Statement of Work, this Agreement serving only to establish the terms and
conditions of performance pursuant to which any future services will be
performed.

2.2   Provision of the Services.

      2.2.1 Once the Parties have reached a mutually agreeable Statement of
Work, the Contractor shall commence the Services at such time as is specified in
the Statement of Work or as otherwise agreed between the Contractor and NGS. The
Parties will provide the resources specified in the Statement of Work to enable
the Contractor to provide the Services.

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      2.2.2 Subject to the provisions of section 12 regarding the Contractor's
Intellectual Property Rights, all of the Deliverables shall be solely owned by
NGS upon payment in full of any sums due to the Contractor under this Agreement
as set forth in the applicable Statement of Work.

      2.2.3 NGS will be responsible for providing the necessary permissions and
access to land, materials, resources, facilities and, where applicable,
personnel as specified in the Statement of Work to facilitate the provision of
the Services by the Contractor. In addition, NGS acknowledge the reliance placed
by the Contractor on the information contained in the Statement of Work relating
to the site where the Services are to be performed, and consequently NGS
warrants that such information is accurate to the best of NGS's knowledge and
belief.

      2.2.4 Once agreed, should either Party wish to alter any provision in the
Statement of Work, the Parties will negotiate in good faith with a view to
agreeing any appropriate alteration to costs, Deliverables or milestones. In the
absence of any agreement, the Parties will continue to comply with their
obligations as specified in the agreed Statement of Work.

      2.2.5 Notwithstanding anything agreed in the Statement of Work, the
Contractor will be entitled to refuse to supply the Services in any area which
it reasonably deems to be hazardous or unsafe.

      2.2.6 NGS and Contractor shall each appoint and maintain a competent
representative (hereinafter, a "Superintendent") to act on its behalf. The
Superintendent shall be authorized to act on behalf of NGS and Contractor
respectively in all matters concerning the Services and administration of this
Agreement. Superintendents shall be available for consultation at all reasonable
times, and all oral/or written communication shall be between these
representatives. Should a Party's Superintendent prejudice the proper and
efficient performance of the Services, the other Party may request his removal
and upon good cause shown, the Superintendent shall be removed and replaced as
soon as is reasonably practicable.

      Any suggestions or directions given by the NGS Superintendent shall be
given only to the Superintendent or other person in charge of Contractor's
Group.

3.    COMPENSATION

      3.1 Basis of Payment. NGS shall pay for the Services an amount specified
on Exhibit B attached hereto and incorporated by reference.

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      3.2   Invoicing.

      3.2.1 Contractor shall be entitled to submit invoices to NGS as provided
for in each Statement of Work and shall, except in relation to any agreed
milestone payments, use commercially reasonable efforts to include detailed
itemization and documentation of all Contractor Costs as defined in Exhibit "B".
A copy of all supporting documentation shall be provided to NGS with each
invoice submitted.

      3.2.2 Payment of all invoices hereunder shall be due within thirty (30)
days of the receipt of such invoice, such payment to be made in the currency and
to the bank account specified in the Statement of Work. NGS shall not be
required to pay any specific portion of an invoice which it disputes or which
does not include detailed itemization and supporting documentation for all
Contractor Costs. NGS will provide the Contractor with the items and reasons for
dispute promptly in writing. Additionally, NGS shall not be required to pay any
specific portion of an invoice if NGS has a bona fide disagreement as to the
appropriateness of that portion of the invoice in question, and, NGS will
provide the Contractor with the items and reasons for dispute promptly in
writing. Contractor will use reasonable commercial efforts to provide NGS with
information required to resolve any dispute. However, NGS agrees that should any
portion of an invoice be disputed, NGS shall pay the non-disputed portion in
accordance with the Statement of Work.

      3.2.3 Any amounts set out in the Statement of Work are exclusive of any
applicable local sales taxes (applicable in the state or country in which the
Services are conducted), which will be payable in addition by NGS. NGS shall not
be responsible for the payment of any direct or indirect value-added tax,
foreign country-imposed tax and any withholding taxes, duties, imports or any
similar tax.

      3.2.4 Without prejudice to any other remedies of the Contractor, in the
event that any amount due hereunder is not paid on the due date, Contractor may
charge NGS interest (both before and after any judgment) on the amount unpaid,
at the rate of 3% per annum above the Wells Fargo base rate from time to time
until payment in full is made, or, at the Contractor's option, suspend the
provision of the Services. This clause 3.2.4 does not apply to those invoice
amounts that NGS has disputed in accordance with section 3.2.2 above.

      3.2.5 The Contractor may invoice for 100% of Contractor Costs where the
Contractor is prevented from providing the Services in whole or in part for any
period as a result of:

      (a) any local statutory public holidays; or

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      (b) any acts or omissions of the NGS Group or any sub-contractor of the
      NGS Group; or

      (c) any extreme weather conditions as agreed between the Party
      representatives; or

      (d) an event of Force Majeure (as define in section 10 below).

      3.2.6 The Contractor will not invoice NGS for any Contractor Costs
incurred where the Contractor is prevented from providing the Services in whole
or in part for any period as a result of:

      (a) any acts or omissions of the Contractor or any sub-contractor of the
      Contractor; or

      (d) any lack or failure of equipment or other facilities to be provided by
      the Contractor.

      3.3 NGS shall not refuse to accept Deliverables in order to defer payment
of any invoice.

      3.4 Notwithstanding the foregoing provisions of this section, the
Contractor shall have the right to negotiate a mutually agreeable rate for
Services if;

      3.4.1 any of the Services are provided on oil and gas properties or
projects where NGS does not own a majority interest; or

      3.4.2 the Contractor agrees to provide Services in excess of sixty (60)
days per Agreement Year, but only with respect to that portion of Services that
exceed sixty days in such period.

4.    TERM

      This Agreement shall be for an initial term of five (5) years commencing
on the Effective Date, and may be extend for an additional five (5) year period
upon the mutual written agreement of the Parties. In order to facilitate any
extension of this Agreement beyond the initial term, the Parties will meet at
least three months prior to the end of the initial term to discuss the
appropriate commercial provisions relative to any extension.

5.    INDEPENDENT CONTRACTOR

      It is expressly understood and agreed that the relationship created by
this Agreement is that of the principal and independent contractor and not that
of principal and agent, master and servant, or employer and employee. Neither
Party nor its employees shall be deemed to be the employees of the other Party.
NGS shall designate the services and the ultimate results to be obtained, but
shall leave to Contractor the methods and details of performance, NGS being
interested only in the results obtained, and having no control over the manner
and methods of performance.

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      As an independent contractor, Contractor agrees to comply with all laws,
rules, and regulations, whether federal, state or municipal, which now or in the
future may be applicable to all service or work performed hereunder or
applicable to Contractor's business, equipment, or employees engaged in or in
any manner connected with its performance hereunder.

      In all cases where Contractor's employees (defined to include Contractor's
direct, borrowed, special or statutory employees) are covered by the Louisiana
Workers' Compensation Act, La. R.S. 23:1021 et seq., NGS and Contractor agree
that all services, work, and operations performed by Contractor and its
employees pursuant to this Agreement are an integral part of and are essential
to the ability of NGS to generate NGS' goods, products and services for purposes
of La.R.S. 23:1061 (A)(1). Furthermore, NGS and Contractor agree that NGS is the
statutory employer or special employer (as defined in La.R.S. 23:1031(c)) of
Contractor's employees. Contractor shall remain primarily responsible for the
payment of Louisiana Worker's Compensation benefits to its employees, and shall
not be entitled to seek contribution or indemnity for any such payments from
NGS. Contractor agrees that its worker's compensation insurance policy shall be
endorsed to designate NGS as an alternative employer and as a principal and
statutory employer or borrowing employer and shall be further endorsed to waive
unconditionally those underwriter's or insurer's rights of subrogation against
NGS.

6.    INSURANCE

      The Contractor agrees to procure and maintain at its sole cost and
expense, policies of insurance in the minimum amounts outlined on that certain
document identified as "Insurance Requirements for Contractor Services,"
attached hereto as Exhibit "A". Contractor will furnish to NGS certificates of
insurance evidencing the fact that proper insurance has been secured and no work
shall be commenced unless the certificates are on file with NGS. MTEM will
provide at least thirty (30) days prior written notice to NGS if the policies
are changed or cancelled.

7.    WARRANTIES

      7.1 Warranties. Contractor represents and warrants that the Services shall
be performed in accordance with the Statement of Work, in a good and workmanlike
manner, and that all of Contractor Group's personnel and equipment shall be
fully qualified and fit for their respective assignments, in accordance with
good industry practice and custom.

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      7.2   LIMITATIONS OF WARRANTIES REGARDING THE DELIVERABLES.

      7.2.1 EXCEPT AS SET FORTH IN SECTION 7.1, NO WARRANTIES ARE GIVEN BY THE
CONTRACTOR IN RELATION TO THE SERVICES OR THE USE TO WHICH THE DELIVERABLES MAY
BE PUT. IN PARTICULAR, NGS AGREES THAT THE CONTRACTOR WILL HAVE NO LIABILITY OR
RESPONSIBILITY FOR ANY DECISION TAKEN BASED UPON ANY DELIVERABLE, AND THAT
NOTHING CONTAINED IN ANY DELIVERABLE SHOULD BE TAKEN TO IMPLY ANY RECOMMENDATION
OR ENDORSEMENT OF THE CONTRACTOR TO ANY PARTICULAR COURSE OF ACTION.

      7.2.2 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, THE CONTRACTOR
DISCLAIMS ALL IMPLIED REPRESENTATIONS, WARRANTIES, CONDITIONS, OBLIGATIONS OR
DUTIES OF EVERY NATURE (INCLUDING, WITHOUT LIMITATION, ANY EQUITABLE, COMMON LAW
OR STATUTORY WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY
AND/OR SATISFACTORINESS) IN RESPECT OF THE SERVICES AND ANY DELIVERABLE.
ACCORDINGLY, ALL SUCH IMPLIED REPRESENTATIONS, WARRANTIES, CONDITIONS,
OBLIGATIONS OR DUTIES ARE EXCLUDED TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAWS.

      7.2.3 CONTRACTOR  SHALL NOT BE LIABLE FOR ANY  CONSEQUENTIAL  OR INDIRECT LOSS
OR LOSS OF PROFIT,  BUSINESS,  DATA, REVENUE,  GOODWILL OR ANTICIPATED SAVINGS WHICH
ARISES OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

      7.3   LIMITS OF LIABILITY REGARDING THE DELIVERABLES

      TO THE CONTRARY NOTWITHSTANDING, CONTRACTOR'S AGGREGATE LIABILITY ARISING
FROM SECTIONS 7.1 AND 7.2 SHALL NOT EXCEED 1) THE SUMS PAID AND DUE TO BE PAID
UNDER THE STATEMENT OF WORK FOR THE SERVICES OR DELIVERABLES IN QUESTION AS AT
THE DATE OF THE MATTER GIVING RISE TO THE CLAIM, OR 2) AMOUNTS WHICH BY LAW MAY
NOT BE LIMITED OR EXCLUDED.

      7.4 NOTHING IN THIS AGREEMENT LIMITS OR EXCLUDES THE LIABILITY OF THE
CONTRACTOR UNDER ANY INDEMNITY OR OTHER LIABILITY IN THIS AGREEMENT, INCLUDING
FOR DEATH, PERSONAL INJURY OR PROPERTY DAMAGE UNDERTAKEN BY CONTRACTOR, OR IN
RELATION TO ANY MATTER WHICH BY LAW MAY NOT BE LIMITED OR EXCLUDED.

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8.    INDEMNIFICATION

      8.1 Notice of Indemnities. CONTRACTOR AND NGS AGREE THAT THIS STATEMENT
COMPLIES WITH THE REQUIREMENT KNOWN AS THE EXPRESS NEGLIGENCE RULE TO EXPRESSLY
STATE IN A CONSPICUOUS MANNER TO AFFORD FAIR AND ADEQUATE NOTICE THAT THIS
AGREEMENT HAS PROVISIONS REGARDING NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT.
BOTH PARTIES REPRESENT TO EACH OTHER (1) THAT THEY HAVE CONSULTED AN ATTORNEY
CONCERNING THIS AGREEMENT OR, IF THEY HAVE NOT CONSULTED AN ATTORNEY, THAT THEY
HAD THE ABILITY TO SO CONSULT, BUT MADE AN INFORMED DECISION NOT TO DO SO, AND
(2) THAT THEY FULLY UNDERSTAND THEIR RIGHTS AND OBLIGATIONS UNDER THIS
AGREEMENT.

      8.2   SPECIFIC INDEMNITIES

      8.2.1 CONTRACTOR AGREES TO AND SHALL FULLY DEFEND, PROTECT, INDEMNIFY,
HOLD HARMLESS, AND RENDER WHOLE THE NGS GROUP, FROM AND AGAINST EACH AND EVERY
CLAIM, DEMAND, OR CAUSE OF ACTION, AND ANY LIABILITY, COST OR EXPENSE,
INCLUDING, BUT NOT LIMITED TO REASONABLE ATTORNEY'S FEES AND EXPENSES INCURRED
IN THE DEFENSE OF THE NGS GROUP, IN CONNECTION WITH SUCH CLAIM, DEMAND OR CAUSE
OF ACTION WHICH MAY BE MADE OR ASSERTED BY OR ON BEHALF OF CONTRACTOR'S GROUP,
ON ACCOUNT OF PERSONAL INJURY, BODILY INJURY, OR DEATH, OR PROPERTY DAMAGE
CAUSED BY, ARISING OUT OF, OR IN ANY WAY INCIDENTAL OR ATTRIBUTABLE TO OR IN
CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT AND THE SERVICES. THIS
INDEMNITY SHALL NOT APPLY IF DAMAGE IS CAUSED, OR ALLEGED TO BE CAUSED, BY THE
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE NGS GROUP. NGS SHALL NOTIFY
CONTRACTOR IMMEDIATELY OF ANY CLAIM, DEMAND, OR SUIT THAT MAY BE PRESENTED TO IT
BY ANY MEMBER OF THE CONTRACTOR GROUP, AFFORDING THE CONTRACTOR A FULL
OPPORTUNITY TO ASSUME THE DEFENSE OF SUCH CLAIM, DEMAND, OR SUIT, AND TO PROTECT
NGS AND CONTRACTOR UNDER THE OBLIGATIONS OF THIS SECTION.

      8.2.2 NGS AGREES TO AND SHALL FULLY DEFEND, PROTECT, INDEMNIFY, HOLD
HARMLESS, AND RENDER WHOLE THE CONTRACTOR GROUP FROM AND AGAINST EACH AND EVERY
CLAIM, DEMAND, OR CAUSE OF ACTION, AND ANY LIABILITY, COST OR EXPENSE,
INCLUDING, BUT NOT LIMITED TO REASONABLE ATTORNEY'S FEES AND EXPENSES INCURRED

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IN THE DEFENSE OF THE CONTRACTOR GROUP, IN CONNECTION WITH SUCH CLAIM, DEMAND OR
CAUSE OF ACTION WHICH MAY BE MADE OR ASSERTED BY OR ON BEHALF OF THE NGS GROUP,
ON ACCOUNT OF PERSONAL INJURY, BODILY INJURY, OR DEATH, OR PROPERTY DAMAGE
CAUSED BY, ARISING OUT OF, OR IN ANY WAY INCIDENTAL OR ATTRIBUTABLE TO OR IN
CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT AND THE SERVICES PERFORMED
UNDER SAID AGREEMENT. THIS INDEMNITY SHALL NOT APPLY IF THE DAMAGE CAUSED, OR
ALLEGED TO BE CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE
CONTRACTOR GROUP. CONTRACTOR SHALL NOTIFY NGS IMMEDIATELY OF ANY CLAIM, DEMAND,
OR SUIT THAT MAY BE PRESENTED TO IT BY THE NGS GROUP, AFFORDING NGS FULL
OPPORTUNITY TO ASSUME THE DEFENSE OF SUCH CLAIM, DEMAND, OR SUIT, AND TO PROTECT
CONTRACTOR AND NGS UNDER THE OBLIGATIONS OF THIS SECTION.

      8.2.3 THE OBLIGATIONS TO RELEASE, TO DEFEND, AND TO INDEMNIFY CONTAINED IN
SECTIONS 8.2.1, 8.2.2 AND 8.24 SHALL APPLY EVEN IF CAUSED, IN WHOLE OR IN PART,
BY THE JOINT, SOLE, OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT,
WHETHER PASSIVE OR ACTIVE, OF ANY PERSON OR ENTITY, INCLUDING BUT NOT LIMITED TO
THE INDEMNIFIED PARTIES.

      8.2.4. CONTRACTOR AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD HARMLESS
AND RELEASE NGS AND THE NGS GROUP FROM AND AGAINST ANY MANNER OF LOSS,
LIABILITY, CLAIM, DAMAGE, PENALTY OR COST (INCLUDING, BUT NOT LIMITED TO,
REASONABLE ATTORNEYS' FEES) ARISING OUT OF OR RELATED TO ANY INJURY OR DEATH OR
DAMAGE TO THE PROPERTY OF ANY THIRD PARTY WHICH IS INCURRED UNDER THE
PERFORMANCE OF THIS AGREEMENT. NGS AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD
HARMLESS AND RELEASE CONTRACTOR FROM AND AGAINST ANY MANNER OF LOSS, LIABILITY,
CLAIM, DAMAGE, PENALTY OR COST (INCLUDING, BUT NOT LIMITED TO, REASONABLE
ATTORNEYS' FEES) ARISING OUT OF OR RELATED TO ANY INJURY OR DEATH OR DAMAGE TO
THE PROPERTY OF ANY THIRD PARTY WHICH IS INCURRED DURING THE PERFORMANCE OF THIS
AGREEMENT AND WHICH IS SOLELY DUE TO THE ACTIONS OF THE NGS GROUP. AS USED
HEREIN, "THIRD PARTY" MEANS ANY PERSON OR ENTITY NOT A MEMBER OF THE RELEVANT
GROUP.

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      8.2.5 NGS AGREES TO PROTECT, DEFEND, INDEMNIFY, HOLD HARMLESS AND RELEASE
THE CONTRACTOR GROUP, FROM AND AGAINST ANY MANNER OF LOSS, LIABILITY, CLAIM,
DAMAGE, PENALTY OR COST (INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS'
FEES) ARISING OUT OF OR RELATED TO ANY USE OF THE DELIVERABLES BY NGS OR ANY
PARTY AUTHORIZED TO USE THEM BY NGS.

9.    SUBCONTRACTING.

      Either Party may sub-contract the provision of all or any part of its
obligations under this Agreement. In such case, or if either Party contracts for
the furnishing of any services or material required to be furnished by a
sub-contractor, then such contracts will contain releases of liability for
damage to property of such subcontractor, insurance requirements, and a hold
harmless provision at least equivalent to the terms set out in this Agreement.
Either Party shall be responsible for all acts or omissions of its
sub-contractors.

10.   FORCE MAJEURE.

      Except for the duty to make payments hereunder when due, indemnification,
and confidentiality provisions under the Agreement, any delay or failure by
either Party in performing an obligation under this Agreement caused by an event
of Force Majeure will not be deemed to be a breach of or failure to perform
under this Agreement. Each Party will use commercially reasonable efforts to
resume performance as soon as practicable, although neither Contractor nor
sub-contractor will be required against its will to adjust any labor or similar
disputes except in accordance with applicable law. For the purposes of this
Agreement, an event of "Force Majeure" shall be a defined as an act of God,
action of the elements (including without limitation inclement weather), warlike
action, insurrection, revolution or civil strife, piracy, civil war or hostile
action, strikes, differences with workers, acts of public enemies, federal or
state laws, rules and regulations of any governmental authorities having
jurisdiction in the premises or of any other group, organization of informal
association (whether or not formally recognized as a government); or any other
causes (except financial) beyond the control of either Party.

11.   CONFIDENTIALITY

      11.1. Each Party ("Receiving Party") agrees that it shall not disclose to
any third party any Confidential Information (as hereinafter defined) concerning
the trade secrets, methods, processes, technology, or procedures or any other
confidential and proprietary information of the other Party which it learns
during the course of its performance of this Agreement or which is disclosed to
it by the other Party ("Disclosing Party"), without the prior written consent of
such Disclosing Party.

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      11.2 The Receiving Party may disclose or use the Confidential Information
      without prior written consent of the Disclosing Party only to the extent
      such information is:

      11.2.1 already known to the Receiving Party as of the date of disclosure
      hereunder; or

      11.2.2 already in possession of the public or becomes available to the
      public other than through the act or omission of the Receiving Party in
      breach hereof; or

      11.2.3 required to be disclosed under applicable law or by a governmental
      order, decree, regulation or rule (provided that the Receiving Party shall
      give written notice to the Disclosing Party prior to such disclosure); or

      11.2.4 is acquired independently from a third party that, to the knowledge
      of the Receiving Party, has the right to disseminate such information at
      the time it is acquired by the Receiving Party; or

      11.2.5 is otherwise independently developed by the Receiving Party without
      any use of any of the Confidential Information of the Disclosing Party.

      11.3 The Receiving Party shall be entitled to disclose Confidential
      Information without the Disclosing Party's prior written consent to the
      following persons (the "Representatives"), to the extent the
      Representatives need to know such Confidential Information for the purpose
      of assisting the Receiving Party with the evaluation of the Transaction,
      are informed of the confidential nature of the Confidential Information
      and agree to be bound by the terms of this Agreement:

            (i)   employees, officers and directors of the Receiving Party; or

            (ii)  the Receiving Party's Affiliates and the employees, officers
                  and directors of such Affiliates; or

            (ii)  any professional consultant, advisor or agent retained by the
                  Receiving Party in connection with the provision or receipt of
                  the Services, provided such is not a competitor of the
                  Disclosing Party.

      11.4 The Receiving Party shall be responsible for ensuring that all of its
      Representatives to whom the Confidential Information is disclosed under
      this Agreement shall keep such information confidential in accordance with
      the terms of this Agreement and shall not disclose, divulge or use such
      Confidential Information in violation of this Agreement. The Receiving
      Party shall be responsible to the Disclosing Party for any breach of this
      Agreement by the Representatives of the Receiving Party.

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      11.5 The Confidential Information shall remain the property of the
      Disclosing Party, and, subject to the provisions of section 15.1.2, the
      Disclosing Party may demand the return thereof at any time upon giving
      written notice to the Receiving Party. Promptly after receipt of such
      notice, the Receiving Party shall return all of the original Confidential
      Information and copies thereof (both written and electronic) in its
      possession and in the possession of Representatives to whom it was
      disclosed pursuant to the terms hereof.

      11.6 If the Receiving Party becomes legally compelled to disclose any of
      the Confidential Information, the Receiving Party will provide the
      Disclosing Party with prompt notice so that the Disclosing Party may seek
      a protective order or other appropriate remedy. If such protective order
      or other remedy is not obtained, the Receiving Party will furnish only
      that portion of the Confidential Information which is legally required,
      and the Receiving Party will cooperate with the Disclosing Party's counsel
      at the Disclosing Party's cost to enable the Disclosing Party to obtain a
      protective order or other reliable assurance that confidential treatment
      will be accorded the same.

"Confidential Information" shall be defined as all information furnished by the
Disclosing Party or any Person (as hereinafter defined) acting with the
Disclosing Party or on its behalf, including without limitation, partners,
employees, agents, representatives, attorneys, accountants, and consultants
(collectively, "Disclosing Party's Representatives"), to the Receiving Party or
any Person (as defined below) acting on Receiving Party's behalf (collectively,
"Receiving Party's Representatives"), including without limitation, any
Deliverable to the extent only that it contains or is based on any such
furnished information or reflecting Contractor's review or evaluation of any
information furnished by NGS or any Person acting with NGS or on its behalf. The
term "Person" as used in this Agreement shall be interpreted broadly to include,
without limitation, any corporation, company, entity, trust, group, partnership
or individual. Notwithstanding the above, the obligation of confidentiality in
regards to the Deliverables shall apply only to Contractor Group provided that
the disclosure does not include any direct information as to the Contractor's
Intellectual Property Rights.

      Subject to the approval by NGS, this confidentiality obligation will
survive the expiration or termination of this Agreement for five (5) years after
such expiration or termination, provided that the Contractor may not disclose
any portion of the Deliverables, as defined under Confidential Information,
after such expiration or termination without the express written consent of NGS.

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      Except as to disclosures required by law or regulation, neither Party
shall make any press announcements or otherwise publish any matter connected
with this Agreement without the prior written consent of the other Party, which
approval shall not be unreasonably withheld.

12. INTELLECTUAL PROPERTY

      12.1 The Parties acknowledge that, except in relation to any specific
rights granted to NGS to make use of and disclose the Deliverables, no rights or
licenses are granted by this Agreement. In particular, no rights or licenses are
granted by this Agreement in or to the EM Technology or any other Intellectual
Property Rights owned or licensed by the Contractor, and all such rights shall
remain owned by the Contractor or its licensors.

      12.2 Any other provision in this Agreement to the contrary
notwithstanding, and in addition to all other indemnity provisions herein,
Contractor represents and warrants that the use or construction of any and all
tools, technology and equipment furnished by Contractor and used in the work
provided for herein does not infringe on any third party intellectual property
rights, and Contractor agrees to indemnify and hold the NGS Group harmless from
any and all claims, demands, and causes of action of every kind and character in
favor of or made by a patentee, licensee, or claimant of any rights or priority
to such tool, technology or equipment, or the use or construction thereof, that
may result from or arise out of furnishing or use of any such tool, technology
or equipment by Contractor in connection with the work, provided that the
Contractor is given immediate and complete control of such claims. The
Contractor shall have the right to replace or change all or any part of the
intellectual property in order to avoid any infringement.

      12.3 NGS agrees that the Contractor shall have the sole right to defend
any such claims and make settlements thereof at its own discretion, subject to
such settlement not adversely impacting NGS.

      12.4 In the event that any such infringement occurs or may occur, the
Contractor may at its sole option and expense:

      12.4.1 Modify or amend the intellectual property or infringing tool so
      that the same becomes non-infringing; or

      12.4.2 Replace the intellectual property or infringing tool by other
      intellectual property of similar capability; or

      12.4.3 Repay NGS all amounts received under this Agreement.

                                       14
<PAGE>

13. DISPUTE RESOLUTION

      Except as provided herein, no civil action with respect to any dispute,
claim or controversy arising out of relating to this Agreement may be commenced
until this matter has been submitted to non-binding mediation at the American
Arbitration Association ("AAA"). The Parties will attempt to resolve any dispute
or claim arising out of or relating to this Agreement promptly through direct
negotiations. If the matter is not resolved within fourteen (14) days through
negotiation, either Party may commence mediation by providing to the AAA and the
other Party, a request for mediation, setting forth the subject matter of the
dispute, the specific details of the dispute, and the relief requested. The
Parties will mutually cooperate with AAA and with one another to select a
mediator from AAAs panel of neutral mediators and in scheduling the mediation
proceedings. The Parties stipulate and agree that they will participate in
mediation in good faith and that they will share equally in all costs relating
to the mediation, excluding each Party's own costs and expenses. All offers,
promises, conduct and statements, whether oral or written, made in the course of
the mediation by any of the Parties, their agents, employees, experts and
attorneys, and by the mediator and any AAA employee, are confidential,
privileged, and inadmissible for any purposes including impeachment in any
litigation or other proceeding involving the Parties, provided that the evidence
that is otherwise admissible or discoverable shall not be rendered inadmissible
or non-discoverable as a result of its use in the mediation. Any Party may seek
equitable relief prior to the mediation to preserve the status quo only, pending
the completion of the mediation process. Except for such an action to obtain
equitable relief, neither party may commence a civil action with respect to the
matter submitted to mediation until after the completion of the initial
mediation session, or forty-five (45) days after the date of filing the written
request for mediation, whichever occurs first. Mediation may continue after the
commencement of a civil action, if the parties so desire. The provisions of this
section may be enforced by any court of competent jurisdiction and the parties
seeking enforcement shall be entitled to an award of all costs, fees and
expenses, including attorney's fees to be paid by the party against whom
enforcement is ordered.

14.   TERMINATION

      14.1 Either party shall be entitled immediately to terminate this
Agreement and/or any Statement of Work by written notice to the other if:

      14.1.1 that other Party commits any material breach of the provisions of
this Agreement and fails to cure any material breach within twenty one (21) days
after receipt of a written notice giving full particulars of the material
breach. For the avoidance of doubt, any failure to pay any invoice or expense
identified in a Statement of Work when due will be a material breach of this
Agreement unless such failure to pay is due to a bona fide dispute as to the
invoice or expense as provided in clause 3.2.2; or

                                       15
<PAGE>

      14.1.2 an administrator, receiver, administrative receiver, supervisor or
similar official is appointed over any of the property or assets of that other
Party; or

      14.1.3 the other Party makes any voluntary arrangement with its creditors
or becomes subject to an administration order or becomes or is declared
bankrupt; or

      14.1.4 the other Party goes into liquidation (except for the purposes of
amalgamation or reconstruction and in such manner that the solvent company
resulting therefrom effectively agrees to be bound by or assumes the obligations
imposed on that other Party under this Agreement); or

      14.1.5 the other Party suffers any analogous proceedings to those set out
in sections 14.1.2 to 14.1.4 above

      14.2  The Contractor may terminate this Agreement if:

      14.2.1 NGS has not submitted a bona fide SOW for utilization of the
Services of the Contractor at least once within the consecutive eighteen (18)
month period from the Effective Date, unless the failure to utilize the
Contractor's services hereunder is the result of the actions or inactions of the
Contractor in material breach of this Agreement or an event of Force Majeure.

15.   CONSEQUENCES OF EXPIRATION OR TERMINATION

      15.1 Upon expiration or termination of a Statement of Work or this
Agreement howsoever caused:

      15.1.1 the Contractor will cease to provide the Services under the
Statement of Work or Agreement (as appropriate);

      15.1.2 each Party will cease use of any Confidential Information belonging
to the other which has been provided or obtained in relation to the terminated
Services, and shall return or destroy on request such of the original versions
of any such Confidential Information and copies thereof that are in its
possession

      15.1.3 all sums accrued to the date of termination and due to be paid to
the Contractor relative to the Statement of Work or Agreement (as appropriate)
shall become immediately payable by NGS, except those charge that are the
subject of a bona fide dispute under clause 3.2.2.

15.2 Expiration or termination of a Statement of Work or this Agreement shall be
without prejudice to any accrued rights or liabilities of the parties and to the
continuation in force of all provisions which are expressed to or by implication
remain in force following expiration or termination or which would be intended
by the parties to continue beyond expiration or termination.

                                       16
<PAGE>

15.3  The following sections will survive expiration or termination of this
      Agreement: 5, 7, 8, 11-16, 19, 21-24 and 26-28.

16.   GOVERNING LAW

16.1 This Agreement and the legal relations among the Parties hereto shall be
governed by and construed in accordance with the substantive laws of the State
of Texas.

16.2 Contractor and NGS each agree to comply with all laws, rules and
regulations, Federal, state and municipal, which are now or may become
applicable to operations covered by this Agreement or arising out of the
performance of the Services.

16.3 If any provision of this Agreement is inconsistent with or contrary to any
applicable Federal, state or municipal law, rule or regulation, said provision
will be deemed to be modified to the extent required to comply with said law,
rule or regulation, and as so modified, said provision and this Agreement shall
continue in full force and effect.

16.4 SUBJECT TO SECTION 13, IT IS SPECIFICALLY UNDERSTOOD AND AGREED THAT ANY
SUIT OR PROCEEDING HEREUNDER SHALL BE BROUGHT EXCLUSIVELY IN THE STATE AND
FEDERAL COURTS LOCATED IN HARRIS COUNTY, TEXAS. EACH PARTY CONSENTS TO THE
PERSONAL JURISDICTION OF THE TEXAS STATE AND FEDERAL COURTS AND WAIVES ANY
OBJECTION THAT SUCH COURTS ARE AN INCONVENIENT FORUM.

17.   ASSIGNMENT

      Neither Party may assign this agreement nor its rights or obligations
under this Agreement nor novate this Agreement without the prior written consent
of the other Party, not to be unreasonably withheld or delayed, provided that
either Party may assign or novate this Agreement without the need for consent to
a wholly-owned subsidiary of that Party, on giving the other Party written
notice to this effect.

18.   COOPERATION IN MARKETING.

      Subject to the prior written consent of NGS, not to be unreasonably
withheld, Contractor may utilize that portion of the Deliverables from the first
Statement of Work that lies solely and completely on oil and gas property in
which NGS owns a majority of the interest in the marketing of its
multi-transient electromagnetic survey technology. For clarity, Contractor may
not utilize any Deliverable that covers any property or depth that is not owned
by NGS. NGS shall reasonably cooperate in such efforts by providing references
and the disclosure of the Parties' participation in the Services.

                                       17
<PAGE>

19.   LIENS

      Each Party will promptly pay any and all amounts owing by it for taxes,
licenses, fees levied or assessed and for work performed, services rendered or
materials furnished in connection with this Agreement so that no such claim or
lien will ever attach, or be permitted to attach, to the other Party's property,
whether real or personal, and each Party hereby indemnifies the other Party
against any and all such claims and liens. Notwithstanding the words of this
section, or any other section of this Agreement to the contrary, Contractor
retains any and all rights and does not waive any rights to collect the amounts
owed Contractor by NGS, including the right to file, perfect or continue a lien
for work performed by Contractor under this Agreement.

20.   AUTHORITY

      Each Party has all requisite power and authority to execute, deliver and
perform this Agreement. All necessary corporate proceedings of each Party have
been taken to authorize the execution, delivery and performance of this
Agreement. This Agreement has been duly authorized, executed and delivered by
each Party, constitutes the legal, valid and binding obligation of each Party,
and is enforceable in accordance with its terms. Except as set forth elsewhere
herein, no consent, authorization, approval, order, license, certificate, or
permit of or from, or declaration or filing with, any federal, state, local or
other governmental authority or any court or other tribunal is required by
either Party for the execution, delivery or performance of this Agreement. No
consent of any Party to any contract, agreement, instrument, lease, arrangement
or understanding to which either Party is a signer, or to which any of its
properties or assets is subject, is required for the execution, delivery or
performance of this Agreement

21.   FURTHER ASSURANCES

      The Parties agree to execute and deliver any and all other mutually
acceptable instruments and/or documents reasonably necessary to accomplish the
transaction contemplated hereby. Each Party hereto shall from time to time at
the cost of the other Party do and perform such further acts and execute and
deliver such further instruments and documents as may be required or reasonably
requested by other Party to carry out and effect the intentions and purposes of
this Agreement.

22.   LEGAL REVIEW

      The Parties acknowledge that they have had an adequate opportunity to
review each and every provision contained in this Agreement, including the
opportunity to submit the same to legal counsel for review and comment. Based on

                                       18
<PAGE>

said review and consultation, the Parties agree with each and every term
contained in the Agreement. Based on the foregoing, the Parties agree that the
rule of construction that a contract be construed against the drafter, if any,
shall not be applied in the interpretation and construction of this Agreement.

23.   NOTICES

      Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested, or by Federal Express or similar overnight delivery or
courier service or delivered in person against receipt to the Party to whom it
is to be given at the address of such Party set forth below. Notices hereunder
shall be deemed delivered upon receipt.

      NGS:        820 Gessner, Suite 1340
                  Houston, Texas 77024
                  Facsimile: 713-935-0199
                  Attention: Company President

      Contractor: 40 Sciennes
                  Edinburgh, Scotland EH9 1NJ
                  Facsimile: +44 131 466 3512
                  Attention: Company Secretary

Any Party may give written notice of a change in the address or individual to
whom delivery shall be made provided such notice is given at least ten (10)
business days prior to becoming effective

24.     NON SOLICITATION

        Neither Party shall, during the period of the Agreement or for twelve
(12) months after its expiration or termination for whatever reason, employ,
solicit or endeavour to entice away from any person who is, or has been during
the said period, an officer, director, employee or contractor ("Personnel") of
the other party and who is or has been engaged in the provision or receipt of
the Services.

25.     ENTIRETY

      This Agreement, together with the exhibit identified herein and attached
hereto, embodies the entire agreement between the Parties, superseding, all
prior agreements, negotiations, letters of intent, arrangements and
understandings related to the subject matter hereof either written or oral, and
may only be supplemented, altered, amended, modified, or revoked by a writing
signed by duly authorized representatives of the Parties. Notwithstanding the

                                       19
<PAGE>

provisions of this paragraph, no Party shall be bound by, subject to, or deemed
a Party to, any agreement between the Parties which have not been duly executed
by, or on behalf of, such Party.

26.   WAIVER AND PRECEDENCE

      Any of the terms, provisions, covenants, representations, warranties or
conditions hereof may be waived only by a written instrument executed by the
Party waiving compliance. Except as otherwise expressly provided in this
Agreement, the failure of any Party at any time or times to require performance
of any provision hereof shall in no manner affect such Party's right to enforce
the same.

In the event of any conflict between the terms of this Agreement and a Statement
of Work, the terms of this Agreement will prevail, other than where the
Statement of Work expressly references a section of this Agreement and states
that it is not to be disapplied or is amended by the provisions of the Statement
of Work.

27.   BINDING EFFECT

      All the terms, provisions, covenants, obligations, indemnities,
representations, warranties and conditions of this Agreement shall be binding
upon and inure to the benefit of and be enforceable by the Parties hereto and
their respective successors and permitted assigns. Any permitted assignment of
the Parties' rights hereunder to any third party shall be made expressly subject
to all of the terms, provisions, covenants, obligations, indemnities,
representations, warranties and conditions of this Agreement.

28.   SEVERABILITY

      If any provision of this Agreement is invalid, illegal or unenforceable,
the balance of this Agreement shall remain in effect, and if any provision is
inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances.

29.   HEADINGS

      The headings in this Agreement are solely for convenience of reference and
shall be given no effect in the construction or interpretation of this
Agreement.

30.   COUNTERPARTS

      This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                                       20
<PAGE>

      IN WITNESS WHEREOF, this Agreement has been approved and executed by the
duly authorized officer of each Party, all as of the date first above written
and shall be effective as of the Effective Date .

NGS Technologies, Inc.              MTEM, Ltd.

By: ______________________          By: ______________________
      Robert S. Herlin,                   Leon Walker,
      Chief Executive Officer             Chief Executive Officer

                                       21
<PAGE>

                                    EXHIBIT "A"
                    Attached to and made a part of that certain
                              Master Service Agreement
                      Dated September 29, 2005, by and between
                               NGS Technologies, Inc.
                                   and MTEM, Ltd.

                           INSURANCE REQUIREMENTS FOR ALL
                                CONTRACTOR SERVICES

             Minimum Insurance Coverage to be Maintained by Contractor

1.    EMPLOYER'S LIABILITY

      INSURER                   Chubb

      POLICY NUMBER             35772536

      LIMIT OF LIABILITY        (pound)10,000,000

2.    PRIMARY PUBLIC/PRODUCTS LIABILITY

      INSURER                   Chubb

      POLICY NUMBER             35772536

      LIMIT OF LIABILITY        (pound)5,000,000 any one occurrence unlimited in
                                the period of insurance for Public Liability and
                                in the aggregate in the period of insurance for
                                Products Liability

      DEDUCTIBLES               (pound)1,000 each and every loss in respect of
                                third party property damage increasing to
                                (pound)10,000 in respect of heat work

3.    Adequate Worker's Compensation Insurance and Employers' Liability
      Insurance complying with applicable state laws with limits of $1,000,000
      covering all Contractor's subcontracted U.S. employees working under this
      Agreement.

                                       22
<PAGE>

4.    Automobile Liability Insurance, covering owned, hired and non-owned
      vehicles, with a combined Bodily Injury and Property Damage Limit of
      $1,000,000.

5.    Physical Damage Insurance on Contractor's property to the extent of its
      fair market value with any deductible to be for the account of the
      Contractor.

6.    In the event operations are over water, Contractor shall carry in addition
      to the Statutory Workers' Compensation Insurance, endorsements covering
      liability under the Longshoreman's and Harbor Workers' Compensation Act,
      with Outer Continental Shelf Lands Act Extension and Maritime Liability,
      including wages, transportation, maintenance and cure with limits of
      (pound)10,000,000 for each death or injury to one person and
      (pound)10,000,000 for any one accident, and endorsed to provide that a
      claim "in rem" will be treated as a claim "in personam."

7.    If Contractor rents or leases marine equipment and/or furnishes marine
      services hereunder, Contractor, in additions to all applicable insurance
      coverage provided in this Exhibit A, shall carry adequate Protection and
      Indemnity Insurance or Commercial General Liability Insurance with
      Watercraft exclusion deleted, and endorsed to include Contractual
      Liability coverage covering vessel or vessels used and its equipment.
      Contractor shall also carry Hull Insurance in such amounts and against
      such risks as Contractor deems adequate to compensate it fully for loss or
      damage to said property, and in the event of damage or loss of such
      property, to look to its insurance carrier for payment of such loss or
      damage and hereby releases Company and waives any claim for loss of such
      property or damages that may result to Contractor in excess of any sum
      that it may receive from its insurance carrier because of such loss or
      damage. Contractor shall not use any vessel in the performance of work for
      Company at any time unless said vessel is adequately covered by insurance,
      as herein provided, and is operated within the navigation limits of the
      insurance policies.

8.    Aviation Liability Insurance to cover aircraft, if any, owned, chartered,
      or hired by Contractor and used for or in connection with the performance
      of this Contract with a combined Bodily Injury and Property Damage Limit
      of not less than $1,000,000 per accident or occurrence.

9.    Prior to commencing work for NGS, Contractor shall obtain from its
      insurers a waiver of subrogation against the NGS Group and any operator or
      owner for whom NGS is performing operations or services in all of the
      insurance policies set forth in this Exhibit A, to include all insurance
      carried by Contractor protecting against loss or damage to its property
      and equipment employed in the performance of this Agreement.

                                       23
<PAGE>

10.   All insurance shall be carried in a company or companies with an A.M. Best
      rating of at least A+, or equivalent, and shall be maintained in full
      force and effect during the term of this Agreement, and shall not be
      cancelled, altered, or amended without thirty (30) days prior written
      notice having first been furnished NGS. NGS herein approves Chubb as an
      acceptable company.

11.   Additionally, to the extent Contractor assumes liability hereunder, and
      agrees to indemnify NGS, the NGS Group shall be named additional insureds
      in all such insurance policies (with exception of Workers' Compensation
      coverage) or shall be covered by an "indemnity to principals" clause, with
      all such insurance being primary to any insurance of NGS that may apply to
      any such occurrence, accident or claim.

12.   No "other insurance" provision shall be applicable to the NGS Group by virtue
      of having been named an additional insured, loss payee, or covered by an
      "indemnity to principals" clause under any policy of insurance.  Contractor
      agrees to furnish NGS a certificate or certificates evidencing coverage in
      accordance with the requirements of this Exhibit A and when requested by NGS,
      to furnish certified copies of all said insurance policies.  These
      requirements shall be conditions precedent to the payment of any sums that
      may be due Contractor.

13.   In the event Contractor is a self-insurer and NGS has consented to
      Contractor being a self-insurer as to any one or more of the risks as to
      which coverage is herein required, evidence of such consent must be in
      writing and approved by a representative of NGS authorized to enter into
      such consent agreement.

Any and all deductibles in the above described insurance policies shall be
assumed by, for the account of, and at Contractor's sole risk.

                                       24
</PRE>

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</PRE>exv4w1

 

Exhibit 4.1

	 	 	 
	Private & Confidential

	 	CONFORMED COPY

Dated 3 November 2004

 

£1,000,000,000 Revolving Credit Facilities

for

BRITISH SKY BROADCASTING GROUP PLC

Guaranteed by

CERTAIN SUBSIDIARIES OF

BRITISH SKY BROADCASTING GROUP PLC

Arranged by

BARCLAYS CAPITAL

CITIGROUP GLOBAL MARKETS LIMITED

DEUTSCHE BANK AG LONDON

J.P. MORGAN PLC

and

THE ROYAL BANK OF SCOTLAND PLC

Agent

BARCLAYS BANK PLC

 

FACILITY AGREEMENT

 

 

 

Contents

	 	 	 	 	 
	Clause	 	Page	 
	 
	SECTION 1
	 	 	1	 
	 
	 	 	 	 
	INTERPRETATION
	 	 	1	 
	 
	 	 	 	 
	1 Interpretation
	 	 	1	 
	 
	 	 	 	 
	2 Construction
	 	 	13	 
	 
	 	 	 	 
	SECTION 2 THE FACILITIES
	 	 	17	 
	 
	 	 	 	 
	3 The Facilities
	 	 	17	 
	 
	 	 	 	 
	4 Purpose
	 	 	17	 
	 
	 	 	 	 
	5 Conditions of Utilisation
	 	 	17	 
	 
	 	 	 	 
	SECTION 3 UTILISATION
	 	 	19	 
	 
	 	 	 	 
	6 Utilisation
	 	 	19	 
	 
	 	 	 	 
	7 Optional Currencies
	 	 	23	 
	 
	 	 	 	 
	SECTION 4
REPAYMENT, PREPAYMENT AND CANCELLATION
	 	 	24	 
	 
	 	 	 	 
	8 Repayment
	 	 	24	 
	 
	 	 	 	 
	9 Prepayment and cancellation
	 	 	24	 
	 
	 	 	 	 
	SECTION 5 COSTS OF UTILISATION
	 	 	27	 
	 
	 	 	 	 
	10 Interest
	 	 	27	 
	 
	 	 	 	 
	11 Interest Periods
	 	 	28	 
	 
	 	 	 	 
	12 Changes to the calculation of interest
	 	 	28	 
	 
	 	 	 	 
	13 Fees
	 	 	29	 
	 
	 	 	 	 
	SECTION 6 ADDITIONAL PAYMENT OBLIGATIONS
	 	 	31	 
	 
	 	 	 	 
	14 Tax gross up and indemnities
	 	 	31	 
	 
	 	 	 	 
	15 Increased costs
	 	 	34	 
	 
	 	 	 	 
	16 Other indemnities
	 	 	35	 
	 
	 	 	 	 
	17 Mitigation by the Lenders
	 	 	36	 
	 
	 	 	 	 
	18 Costs and expenses
	 	 	36	 
	 
	 	 	 	 
	SECTION 7 GUARANTEE
	 	 	37	 
	 
	 	 	 	 
	19 Guarantee and indemnity
	 	 	37	 
	 
	 	 	 	 
	SECTION 8 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT
	 	 	44	 

 

 

	 	 	 	 	 
	Clause	 	Page	 
	 
	20 Representations
	 	 	44	 
	 
	 	 	 	 
	21 General undertakings
	 	 	47	 
	 
	 	 	 	 
	22 Events of Default
	 	 	53	 
	 
	 	 	 	 
	SECTION 9 CHANGES TO PARTIES
	 	 	56	 
	 
	 	 	 	 
	23 Changes to the Lenders
	 	 	56	 
	 
	 	 	 	 
	24 Changes to the Obligors
	 	 	59	 
	 
	 	 	 	 
	SECTION 10
	 	 	60	 
	 
	 	 	 	 
	THE FINANCE PARTIES
	 	 	60	 
	 
	 	 	 	 
	25 Role of the Agent and the Mandated Lead Arrangers
	 	 	60	 
	 
	 	 	 	 
	26 Conduct of business by the Finance Parties
	 	 	64	 
	 
	 	 	 	 
	27 Sharing among the Finance Parties
	 	 	64	 
	 
	 	 	 	 
	SECTION 11 ADMINISTRATION
	 	 	66	 
	 
	 	 	 	 
	28 Payment mechanics
	 	 	66	 
	 
	29 Set-off
	 	 	68	 
	 
	 	 	 	 
	30 Notices
	 	 	69	 
	 
	 	 	 	 
	31 Calculations and certificates
	 	 	70	 
	 
	 	 	 	 
	32 Partial invalidity
	 	 	70	 
	 
	 	 	 	 
	33 Remedies and waivers
	 	 	70	 
	 
	 	 	 	 
	34 Amendments and waivers
	 	 	70	 
	 
	 	 	 	 
	35 Counterparts
	 	 	71	 
	 
	 	 	 	 
	SECTION 12 GOVERNING LAW AND ENFORCEMENT
	 	 	72	 
	 
	 	 	 	 
	36 Governing law
	 	 	72	 
	 
	 	 	 	 
	37 Enforcement
	 	 	72	 
	 
	 	 	 	 
	Schedules
	 	 	 	 
	 
	 	 	 	 
	Schedule 1 The Original Parties
	 	 	73	 
	 
	 	 	 	 
	Part I — The Obligors
	 	 	73	 
	 
	 	 	 	 
	Part II
— The Agent and the Original Lenders
	 	 	74	 
	 
	 	 	 	 
	Schedule 2 Conditions precedent to initial Utilisation
	 	 	79	 
	 
	 	 	 	 
	Schedule 3 Requests
	 	 	80	 
	 
	 	 	 	 
	Part I — Utilisation Request
	 	 	80	 

 

 

	 	 	 	 	 
	Clause	 	Page	 
	 
	Part II — Utilisation Request
	 	 	81	 
	 
	 	 	 	 
	Schedule 4 Mandatory Cost formulae
	 	 	82	 
	 
	 	 	 	 
	Schedule 5 Form of Transfer Certificate
	 	 	85	 
	 
	 	 	 	 
	Schedule 6 Form of Deed of Guarantor Accession
	 	 	86	 
	 
	 	 	 	 
	Schedule 7 Documents and evidence to be delivered by Acceding Guarantors
	 	 	87	 
	 
	 	 	 	 
	Schedule 8 Form of Deed of Borrower Accession
	 	 	88	 
	 
	 	 	 	 
	Schedule 9 Documents and evidence required to be delivered by the Additional Borrower
	 	 	89	 
	 
	 	 	 	 
	Schedule 10 Form of Resignation Letter
	 	 	90	 
	 
	 	 	 	 
	Schedule 11 Form of Compliance Certificate
	 	 	91	 
	 
	 	 	 	 
	Schedule 12 Timetables
	 	 	93	 
	 
	 	 	 	 
	Schedule 13 Form of Letter of Credit
	 	 	94	 

 

 

THIS
AGREEMENT is dated 3 November 2004 and made BETWEEN:

	(1)	 	BRITISH SKY BROADCASTING GROUP PLC (the “Original Borrower”);
	 
	(2)	 	BRITISH SKY BROADCASTING GROUP PLC and THE SUBSIDIARIES of BRITISH SKY
BROADCASTING GROUP PLC listed in Part I of Schedule 1
(The Original Parties) as original
guarantors (the “Original Guarantors” and each an “Original Guarantor”);
	 
	(3)	 	BARCLAYS CAPITAL, CITIGROUP GLOBAL MARKETS LIMITED, DEUTSCHE BANK AG
LONDON, J.P. MORGAN PLC and THE ROYAL BANK OF SCOTLAND PLC (the “Mandated
Lead Arrangers”, and each an “MLA”);
	 
	(4)	 	THE FINANCIAL INSTITUTIONS listed in Part II of
Schedule 1 (The Original Parties) as
lenders (the “Original Lenders” and each an “Original Lender”); and
	 
	(5)	 	BARCLAYS BANK PLC as agent of the Lenders (the “Agent”).

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

	  
1	 	Interpretation
	 
	1.1	 	Purpose
	 
	 	 	This Agreement sets out the terms and conditions upon and subject to which the Lenders
agree, according to their several obligations, to make available to the Borrowers under the
guarantee of the Guarantors, a revolving credit facility of up to £1,000,000,000 or the
equivalent in Optional Currencies (i) for the purpose of refinancing the Existing £600
million Facility; (ii) for general corporate purposes; and (iii) to finance the working
capital or capital expenditure requirements of the Group.
	 
	1.2	 	Definitions
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	 	 	“Acceding Guarantors” means those Group Members who have become a party to this Agreement
as Guarantors pursuant to clause 19.17 (Acceding Guarantors);
	 
	 	 	“Additional Borrower” means, following the Permitted Scheme, either (i) HoldCo or (ii)
Intermediate HoldCo, in each case, if it becomes an additional borrower of the Facilities
in accordance with clause 19.18 (Additional Borrower);
	 
	 	 	“Additional Cost Rate” means, in relation to any period, a percentage calculated for such
period at an annual rate determined by the application of the formula set out in Schedule 4
(Mandatory Cost formulae);
	 
	 	 	“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding
Company of that person or any other Subsidiary of that Holding Company;
	 
	 	 	“Agent” means Barclays Bank PLC of 5 the North Colonnade, Canary Wharf, London E14 4BB or
such other person as may be appointed agent for the Lenders pursuant to clause 25.11
(Resignation of the Agent);
	 
	 	 	“Agent’s Spot Rate of Exchange” means the Agent’s spot rate of exchange for the purchase of
any relevant currency with the Base Currency in the London foreign exchange market at or
about 11:00 a.m. on a particular day;
	 
	 	 	“Authorised Officer” means any director, employee or officer of the Ultimate Holding
Company or any other Obligor authorised to sign Authorised Officer’s Compliance
Certificates, Utilisation

1

 

	 	 	Requests and other notices, requests or confirmations referred to in this Agreement or
relating to the Facilities;
	 
	 	 	“Available Commitment” means a Lender’s Commitment under the Facility minus:

	 	(a)	 	the Base Currency Amount of its participation in any outstanding Utilisations; and
	 
	 	(b)	 	in relation to any proposed Utilisation, the Base Currency Amount of its participation in any
Loans or other Utilisations that are due to be made on or before the proposed Utilisation
Date, other than that Lender’s participation in any Utilisations that are due to be repaid or
prepaid on or before the proposed Utilisation Date;

	 	 	“Available Facility” means the aggregate for the time being of each Lender’s Available Commitment
in respect of the Facility;
	 
	 	 	“Availability Period” means the period from the date of this Agreement and ending on the
Termination Date or the period ending on such earlier date (if any) (i) on which the whole of the
undrawn Commitments are cancelled or (ii) on which the Commitments are reduced to zero pursuant to
clauses 22.2 (Acceleration) or 9.1 (Illegality);
	 
	 	 	“Banking Day” means:

	 	(a)	 	unless (b) below applies, a day (other than a Saturday or Sunday) on which banks are
open for business in:

	 	(i)	 	London; and
	 
	 	(ii)	 	if a payment is required in an Optional Currency (other than euros), the
principal financial centre of the country of such Optional Currency; and

	 	(b)	 	in relation to a rate fixing for euros only, a TARGET Day;

	 	 	“Base Currency” means Sterling;
	 
	 	 	“Base Currency Amount” means, in relation to a Utilisation, the amount specified in the
Utilisation Request delivered by the Borrower for that Utilisation (or, if the amount requested is
not denominated in the Base Currency, that amount converted into the Base Currency at the Agent’s
Spot Rate of Exchange on the date which is three Banking Days before the Utilisation Date or, if
later, on the date the Agent receives the Utilisation Request and, in the case of a Letter of
Credit, as adjusted pursuant to clause 6.5.9 (Revaluation of
Letters of Credit) at six-monthly
intervals) adjusted to reflect any repayment, (other than a repayment arising from a change of
currency), prepayment, consolidation or division of the Utilisation;
	 
	 	 	“Borrowers” means the Original Borrower and the Additional Borrower unless the Original
Borrower or the Additional Borrower (as the case may be) has ceased to be a Borrower in
accordance with clause 19.20 (Resignation of a Borrower) (and “Borrower” shall mean either of
them, as relevant);
	 
	 	 	“Break Costs” means the amount (if any) by which:

	 	(a)	 	the interest 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 Banking Day following receipt or
recovery and ending on the last day of the current Interest Period;

2

 

	 	 	“Broadcasting Law” means the Broadcasting Act 1990 (as supplemented by the Broadcasting Act
1996 and as amended by the Communications Act 2003) and all other laws, statutes, regulations and
judgments relating to broadcasting applicable to the Ultimate Holding Company (or any of its
Subsidiaries) and/or the business carried on by the Ultimate Holding Company (or any of its
Subsidiaries);
	 
	 	 	“Cash and Cash Equivalents” means, at any time:

	 	(a)	 	cash in hand or on deposit with any acceptable institution (including cash held in a Cash
Collateral Account);
	 
	 	(b)	 	certificates of deposit, maturing within one year after the relevant date of calculation,
issued by an acceptable bank;
	 
	 	(c)	 	any investment in marketable obligations issued or guaranteed by the government of the
United Kingdom, the United States of America or any other nation approved by the Agent
or by an instrumentality or agency of the government of the United Kingdom, the United
States of America or any other nation approved by the Agent having an equivalent credit
rating and a maturity within one year after the relevant date of calculation;
	 
	 	(d)	 	open market commercial paper:

	 	(i)	 	for which a recognised trading market exists;
	 
	 	(ii)	 	issued in the United Kingdom, the United States of America or other nation
approved by the Agent;
	 
	 	(iii)	 	which matures within 90 days of the relevant date of calculation; and
	 
	 	(iv)	 	which has a credit rating of either A-1 by Standard & Poor’s or FitchlBCA or P-1
by Moody’s, or, if no rating is available in respect of the commercial paper, the
issuer of which has, in respect of its long-term debt obligations, an equivalent
rating; or

	 	(e)	 	any other instrument, security or investment approved by the Majority Lenders,

	 	 	in each case, to which any member of the Group is beneficially entitled at that time and which is
capable of being applied against Indebtedness. An “acceptable institution” for this purpose is a
commercial bank, investment fund or trust company which has a rating of A or higher by Standard &
Poor’s or FitchlBCA or A2 or higher by Moody’s or a comparable rating from an internationally
recognised credit rating agency for its long-term debt obligations or has been approved by the
Majority Lenders;
	 
	 	 	“Cash Collateral Account” means an interest bearing blocked deposit account in the name of the
relevant Borrower opened, or to be opened, with the Agent or other relevant Finance Party (as the
relevant provision of any Finance Document so provides) pursuant to or otherwise in connection
with any Finance Document;
	 
	 	 	“Collateral Instruments” means notes, bills of exchange, certificates of deposit and other
negotiable and non-negotiable instruments, guarantees, and any other documents or instruments
which contain or evidence an obligation (with or without security) to pay, discharge or be
responsible directly or indirectly for, any Indebtedness or liabilities under the Finance
Documents and includes Encumbrances;
	 
	 	 	“Commitment” means:

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

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement;

3

 

	 	 	“Compliance Certificate” means either a certificate provided by the Ultimate Holding Company in
accordance with paragraph 12 of Schedule 2 (Conditions
Precedent) or a certificate in relation to
compliance (or otherwise) with the undertakings in clause 21.3 (Financial undertakings), in each
case substantially in the form of Schedule 11 (Form of Compliance Certificate);
	 
	 	 	“Consolidated Interest Charges” means, in respect of each Half-Yearly Period in each financial
year of the Group, the aggregate amount of interest, discounts, finance charges and/or fees
accrued during that Half-Yearly Period in respect of Total Debt including, for this purpose, any
acceptance commission in respect of any bills of exchange or other negotiable instruments, any
initial issue discounts allowed on the issue of debentures attributable to such Half-Yearly Period
(calculated on a pro rata basis by reference to the initial term for which such debentures were
issued) and the interest component of rentals under Finance Leases, and after deduction of the
aggregate amount of interest received in respect of deposits held with any banks or on commercial
paper owned by any Group Member during the same Half-Yearly Period of the Group;
	 
	 	 	“Debt Instrument” means any debenture, bond, note, loan stock or other similar security evidencing
Indebtedness;
	 
	 	 	“Deed of Borrower Accession” means a deed to be executed and delivered by the Additional Borrower
substantially in the form of Schedule 8 (Form of Deed of Borrower Accession);
	 
	 	 	“Deed of Guarantor Accession” means a deed to be executed and delivered by the relevant Group
Member substantially in the form of Schedule 6 (Form of Deed of Guarantor Accession);
	 
	 	 	“Deed of Subordination” means any instrument evidencing subordination and priority arrangements
entered or to be entered into pursuant to clause 21.2.5 (Indebtedness);
	 
	 	 	“Default” means an Event of Default or any event or circumstance specified in clause 22 (Events of
Default) which would (with the expiry of a grace period, the giving of notice, the making of any
determination (in each case under or pursuant to the Finance Documents) or any combination of any
of the foregoing) be an Event of Default;
	 
	 	 	“Disclosure Letter” means the letter of even date written by the Ultimate Holding Company to the
Agent;
	 
	 	 	“EBITDA” means, in respect of a Half-Yearly Period, the consolidated operating profit of the
Group:

	 	(a)	 	in relation to each Half-Yearly Period in each financial year as shown in the relevant
unaudited consolidated profit and loss account provided to the Agent under this
Agreement before:

	 	(i)	 	depreciation; and
	 
	 	(ii)	 	amortisation of goodwill but, for the avoidance of doubt, not before any charge
for the amortisation of any cost or expense incurred in relation to the acquisition of
rights to or in connection with any programmes or films;

	 	 	 	but adjusted by excluding any EBITDA (whether positive or negative and as determined in
accordance with this definition) of any Special Purpose Subsidiary; and
	 
	 	(b)	 	in relation to the second Half-Yearly Period in each financial year only, as shown in the
relevant audited consolidated profit and loss account provided to the Agent under this
Agreement before the items referred to in (a)(i) and (ii) above and as adjusted as referred
to in (a) above and (in each case) by the deduction of the amount calculated under (a)
above in relation to the first Half-Yearly Period in such financial year,

	 	 	having made such adjustments and making such further adjustments as may be appropriate in the
opinion of the auditors of the Ultimate Holding Company in order that all such amounts are
calculated in accordance with the Original Accounting Principles;

4

 

	 	 	“Encumbrance” means any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation,
assignment, trust arrangement or security interest of any kind securing any obligation of any
person or any other type of preferential arrangement excluding (i) retention of title arrangements
in contracts entered into in the ordinary course of trading, (ii) liens arising in the ordinary
course of trading by operation of law, (iii) contractual set-off or netting arrangements with a
clearing bank in the United Kingdom in respect of overdraft facilities made available to any Group
Member(s), and entered into for the netting of Group credit and debit balances maintained with that
bank, contractual set-off or netting arrangements entered into with a financial institution in
respect of multiple hedging transactions with such financial institution, (iv) liens or pledges
created or subsisting in the ordinary course of trading over documents of title, insurance policies
or sale contracts in relation to goods or assets supplied, to secure the purchase price of such
goods or assets and (v) deposits or escrow arrangements in the ordinary course of trading in
connection with the acquisition of any goods or assets or the financing of any such acquisition or
to secure performance bonds;
	 
	 	 	“Environmental Law” means any law or regulation relating to (a) the pollution, conservation or
protection of the environment (both natural and built), (b) the creation, storage, handling and
disposal of industrial waste and hazardous substances and (c) health and safety at work or
elsewhere but excluding the Planning Acts (being the Town and Country Planning Act 1990, the
Planning (Listed Buildings and Conservation Areas) Act 1990, the Planning (Consequential
Provisions) Act 1990 and subordinate legislation made thereunder);
	 
	 	 	“EURIBOR” means, in relation to any Loan or overdue amount in euro:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for the period of that Loan or overdue amount) 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;
	 
	 	 	“euro” and
“€”
 mean the single currency of Participating Member States introduced in accordance
with the provisions of Article 109(1)4 of the Treaty and in respect of all payments to be made
under the Finance Documents in euro means immediately available, freely transferable funds;
	 
	 	 	“Event of Default” means any event or
circumstance specified as such in clause 22 (Events of
Default);
	 
	 	 	“Executive Officers” means, in relation to the Ultimate Holding Company, the Chief Executive, the
Chief Operating Officer, the Head of Legal and Business Affairs, the Managing Director of Sky
Networks, the Chief Financial Officer, the Managing Director of Sky Sports and the Company
Secretary and any other officer of the Ultimate Holding Company who, at any relevant time, is
responsible for all or any of the management functions of any such person as at the date of this
Agreement in place of such person and, in relation to any other Obligor, its Directors;
	 
	 	 	“Existing £600 million Facility” means the £600,000,000 multi-currency revolving credit facility
made available to British Sky Broadcasting Group plc on the terms and conditions set out in an
agreement dated 20 March 2003 (as amended from time to time) in respect of which Barclays Bank PLC
acts as agent;
	 
	 	 	“Expiry Date” means, in respect of a Letter of Credit, the last day of its Term;
	 
	 	 	“Facility” means the revolving loan facility made available under this Agreement as described in
clause 3 (The Facilities);
	 
	 	 	“Facility Office” means the office or offices notified by a Lender to the Agent in writing on or
before the date it becomes a Lender (or, following that date, by not less than five Banking Days’
written notice) as the office or offices through which it will perform its obligations under this
Agreement;

5

 

	 	 	“Fee Letter” means any letter or letters between the Mandated Lead Arrangers and the Ultimate
Holding Company (or the Agent and the Ultimate Holding Company) setting out the terms of any of the
fees referred to in clause 13 (Fees);
	 
	 	 	“Finance Document” means this Agreement, the Mandate Letter, any Transfer Certificate, any Fee
Letter, any Deed of Subordination, any Deed of Guarantor Accession, any Deed of Borrower Accession,
any Letter of Credit, and any other document designated as such by the Agent and the Ultimate
Holding Company;
	 
	 	 	“Finance Lease” means a lease treated as a finance lease in accordance with Statement of Standard
Accounting Practice 21 as amended or as substituted by any generally accepted accounting principles
in the United Kingdom from time to time;
	 
	 	 	“Finance Parties” means the Agent, the Mandated Lead Arrangers and the Lenders, and “Finance
Party” means any of them;
	 
	 	 	“Financial Definitions” means the definitions of each of Consolidated Interest Charges, EBITDA,
Net Debt and Total Debt;
	 
	 	 	“Group” means (i) before the effective date of the Permitted HoldCo Scheme, the Original Borrower
and its Subsidiaries, excluding, for the avoidance of doubt, any joint venture company in which
the Group Members, taken as a whole, have a minority shareholding, or do not have the right to
appoint or remove a majority of its board of directors, or do not have sole control of a majority
of the voting rights in it and (ii) on and from the effective date of the Permitted HoldCo Scheme,
the Ultimate Holding Company and its Subsidiaries excluding, for the avoidance of doubt, any joint
venture company in which the Group Members, taken as a whole, have a minority shareholding, or do
not have the right to appoint or remove a majority of its board of directors, or do not have sole
control of a majority of the voting rights in it;
	 
	 	 	“Group Member” means any member of the Group;
	 
	 	 	“Guaranteed Liabilities” means all moneys, obligations and liabilities expressed to be guaranteed
by the Guarantors in clause 19.1 (Covenant to pay);
	 
	 	 	“Guarantors” means the Original Guarantors and any Acceding Guarantor (other than any such
Original Guarantor or Acceding Guarantor as has been released from this Agreement pursuant to
clause 19.19 (Release of Guarantors) and has not since become an Acceding Guarantor again pursuant
to clause 19.17 (Acceding Guarantors));
	 
	 	 	“Half-Yearly Period” means each reporting period for the Group of six months ending on 30th June
or 31st December in any year;
	 
	 	 	“Hedging Arrangements” means any arrangements, whether by way of swap, cap, collar or otherwise in
relation to the hedging of any interest rate or currency exposure of any Group Member which, in
each case, has a term which is greater than twelve months from the relevant date of calculation
pursuant to the provisions of clause 21.3 (Financial
undertakings);
	 
	 	 	“HoldCo Scheme” means a solvent scheme of arrangement under section 425 Companies Act 1985 or
other solvent reorganisation or reconstruction under English law pursuant to which on the
effective date of such scheme, reorganisation or reconstruction (i) a company incorporated in
England for the purposes of such scheme, reorganisation or
reconstruction (“HoldCo”) becomes directly or indirectly the holder of the entire issued share capital of the Original Borrower and
(ii) immediately following implementation of such scheme, reorganisation or reconstruction the
shareholders in the Original Borrower become holders of a materially equivalent proportion of the
share capital of HoldCo to that which they held in the Original Borrower before such scheme,
reorganisation or reconstruction was effected;
	 
	 	 	“Holding Company” means a holding company within the meaning of section 736 Companies Act, 1985;
	 
	 	 	“Incapacity” means in relation to a person the death, bankruptcy, unsoundness of mind, insolvency,
liquidation, dissolution, winding-up, administration, receivership, amalgamation,

6

 

	 	 	reconstruction or other incapacity of that person whatsoever (and, in the case of a partnership,
includes the termination or change in the composition of the partnership);
	 
	 	 	“Indebtedness” means any obligation for the payment or repayment of money, whether as principal or
surety, and whether present or future, in respect of:

	 	(a)	 	money borrowed or raised and debit balances at banks;
	 
	 	(b)	 	any bond, note, loan stock, debenture or other similar debt instrument;
	 
	 	(c)	 	any amount raised by acceptance or documentary credit facilities;
	 
	 	(d)	 	receivables sold or discounted (other than on a non-recourse basis);
	 
	 	(e)	 	deferred payments for assets or services acquired (other than in the ordinary course of
trading or pursuant to a genuine trade dispute);
	 
	 	(f)	 	the capital element of Finance Leases;
	 
	 	(g)	 	any other transaction (including forward sale or purchase agreements) having the
commercial effect of a borrowing or raising of money, or of any of (a) to (f) above;
	 
	 	(h)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or
documentary letter of credit or any other instrument (other than any such guarantee,
indemnity, bond, standby or documentary letter of credit or other instrument which relates
solely to a performance obligation) issued by a bank or financial institution; and
	 
	 	(i)	 	without duplication, guarantees in respect of the obligations of any person falling within
any of (a) to (h) above;

	 	 	“Interest Period” means, in relation to a Loan, each period determined in accordance with clause
11 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with
clause 10.3 (Default interest);
	 
	 	 	“Intermediate HoldCo Scheme” means a solvent scheme of arrangement under section 425 Companies Act
1985 or other solvent reorganisation or reconstruction under English law pursuant to which on the
effective date of such scheme, reorganisation or reconstruction a
company (“Intermediate HoldCo”)
incorporated in England for the purposes of such scheme, reorganisation or reconstruction, and
which is a wholly owned Subsidiary of the Original Borrower, becomes the holder of the entire
issued share capital of certain or all of the Subsidiaries of the Original Borrower;
	 
	 	 	“LC Limit” means £100,000,000 (or its equivalent in Optional Currencies);
	 
	 	 	“LC Liabilities” means, in relation to any Letter of Credit, at any relevant time, the stated
maximum principal amount that may be or become payable to the beneficiary of such Letter of Credit
and/or any amount that had been properly paid by the Lenders to such beneficiary but which has not
been reimbursed to the Lenders pursuant to 6.5.3(b) (Claims under
a Letter of Credit), less the
aggregate amount of any cash cover (not including any cash cover lodged by any Lender) held in
relation to that Letter of Credit or such lesser amount as the Agent may agree with the Ultimate
Holding Company, both acting in good faith, represents the maximum liability of the Lenders in
respect thereof;
	 
	 	 	“Lender” means:

	 	(a)	 	any Original Lender; and
	 
	 	(b)	 	any bank or financial institution which has become a Party in accordance with clause 23
(Changes to the Lenders),

	 	 	which in each case has not ceased to be a Party in accordance with the terms of this Agreement;

7

 

	 	 	“Letter of Credit” or “LC” means any guarantee, bond, indemnity, letter of credit, or any
other instrument of suretyship or payment, issued, undertaken or made or, as the case may be,
proposed to be issued, undertaken or made by the Lenders under this Agreement at the request of
either of the Borrowers, in each case in a form substantially similar to that set out in Schedule
13 (Form of Letter of Credit) or otherwise on terms agreed between the Agent (with the prior
consent of the Lenders) and the Ultimate Holding Company (each acting reasonably) and as the same
may be varied from time to time;
	 
	 	 	“LIBOR” means, in relation to any Loan or overdue amount due in a currency other than euro:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for the currency or period of that Loan or overdue
amount)
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
Utilisation and for a period comparable to the Interest Period for that Loan;
	 
	 	 	“Licences” means licences granted under any Broadcasting Law and held by any Group Member;
	 
	 	 	“Loan” means a loan made or to be made by way of cash advance under the Facility or the principal
amount outstanding for the time being of that loan;
	 
	 	 	“Majority Lenders” means:

	 	(a)	 	if there are no Utilisations then outstanding, 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); or
	 
	 	(b)	 	at any other time, a Lender or Lenders whose participation in the Utilisations then
outstanding aggregate more than 662/3% of all the Utilisations then
outstanding;

	 	 	“Mandate Letter” means the letter, dated 1 October 2004, between the Ultimate Holding Company and
the Mandated Lead Arrangers;
	 
	 	 	“Mandated Lead Arrangers” or “MLAs” means Barclays Capital of 5 the North Colonnade, Canary Wharf,
London E14 4BB, Citigroup Global Markets Limited of 33 Canada Square, Canary Wharf, London E14
5LB, Deutsche Bank AG London of Winchester House, 1 Great Winchester Street, London EC2N 2DB, J.P.
Morgan plc of 125 London Wall, London EC2Y 5AJ and The Royal Bank of Scotland plc of 135
Bishopsgate, London EC2M 3UR;
	 
	 	 	“Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance with
Schedule 4 (Mandatory Cost formulae);
	 
	 	 	“Margin” means the rate per annum calculated
in accordance with 10.1.1 (Calculation of Margin);
	 
	 	 	“month” means a period beginning in one calendar month and ending in the next calendar month on
the day numerically corresponding to the day of the calendar month on which it started, provided
that (i) if the period started on the last Banking Day in a calendar month or if there is no such
numerically corresponding day, it shall end on the last Banking Day in such next calendar month
and (ii) if such numerically corresponding day is not a Banking Day, the period shall end on the
next following Banking Day in the same calendar month but if there is no such Banking Day it shall
end on the preceding Banking Day and “months” and “monthly” shall be construed accordingly;
	 
	 	 	“Net Debt” means Total Debt excluding, for the purposes of this definition only, any amounts in
respect of item (a) and, when such preference share capital is not redeemable, item (b) of the
definition of “Total Debt”, less:

8

 

	 	(i)	 	the aggregate principal amount of Subordinated Loans;
	 
	 	(ii)	 	accrued but unpaid interest in respect of Subordinated Loans; and
	 
	 	(iii)	 	Cash and Cash Equivalents

	 	 	but including, for the purposes of clause 21.3.1 (Net
Debt: EBITDA) only, the principal amount of
any Indebtedness of any person other than a Group Member which is guaranteed by any Group Member;
	 
	 	 	“Non-Recourse Liabilities” means liabilities of a Special Purpose Subsidiary where such
liabilities are not the subject of any guarantee, indemnity or similar assurance from any other
Group Member other than a Permitted Assurance and, except for recourse in respect of such
Permitted Assurance, there is no other recourse for any payment in respect of such liabilities to
the assets of any other Group Member other than recourse to the shares in such Special Purpose
Subsidiary charged as security for such liabilities;
	 
	 	 	“Obligors” means each Borrower and each Guarantor;
	 
	 	 	“Optional Currency” means a currency (other than the Base Currency) which complies with the
conditions set out in clause 5.3 (Conditions relating to Optional
Currencies);
	 
	 	 	“Original Accounting Principles” means those accounting principles, standards and practices which
were used in the preparation of the consolidated audited financial statements of the Group as at
30 June 2004.
	 
	 	 	“Original Borrower” means British Sky Broadcasting Group PLC (No. 2247735) whose registered office
is at Grant Way, Isleworth, Middlesex TW7 5QD;
	 
	 	 	“Original Guarantors” means the Original Borrower and those Subsidiaries of the Original Borrower
listed as such whose names and registered offices or principal places of business are set out in
part I of Schedule 1 (The Original Parties);
	 
	 	 	“Original Lenders” means the financial institutions listed in part II of Schedule 1 (The Original
Parties);
	 
	 	 	“Original Ultimate Shareholder” means The News Corporation Limited;
	 
	 	 	“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 Economic and Monetary Union;
	 
	 	 	“Party” means a party to this Agreement and includes its successors in title, permitted assigns
and permitted transferees;
	 
	 	 	“Permitted Assurance” means any assurance, undertaking or support given by a Group Member provided
that the same shall be given by such Group Member:

	 	(a)	 	other than in respect of a payment obligation or an indemnity in respect thereof or any
obligation to comply with any financial ratios or other tests of financial condition; and
	 
	 	(b)	 	generally in the ordinary course of its business;

	 	 	“Permitted HoldCo Scheme” means the HoldCo Scheme to enable the Ultimate Holding Company to make
distributions to its shareholders or otherwise improve the extent of the ability of the Ultimate
Holding Company to make distributions to its shareholders where (i) HoldCo and any Subsidiary of
HoldCo which is also a Holding Company of the Original Borrower become Guarantors in accordance
with clause 19.17 (Acceding Guarantors) on or before the effective date of such HoldCo Scheme,
(ii) a reasonable time prior to the effective date of such HoldCo Scheme, the Original Borrower
provides (to the extent that it is reasonably able so to do without breaching any law or
regulation applicable to it (including, without limitation, any requirement of any stock exchange
on which any Group Member is listed)) such information as the Agent may reasonably require in
relation to the HoldCo Scheme and the proposed distribution to its

9

 

	 	 	shareholders by the Ultimate Holding Company (including, without limitation, written evidence that
all necessary consents to the transaction have been obtained) and (iii) the Original Borrower
provides written evidence that as at the effective date of such HoldCo Scheme the ordinary shares
of the Original Borrower will be delisted from the official list maintained by the UKLA, and that
the ordinary shares of HoldCo will be admitted to listing on a recognised stock exchange;
	 
	 	 	“Permitted Intermediate HoldCo Scheme” means the Intermediate HoldCo Scheme to enable the Ultimate
Holding Company to make distributions to its shareholders or otherwise improve the extent of the
ability of the Ultimate Holding Company to make distributions to its shareholders where (i)
Intermediate HoldCo and any Holding Company of Intermediate HoldCo which is also a Subsidiary of
the Original Borrower become Guarantors in accordance with clause
19.17 (Acceding Guarantors) on
or before the effective date of such Intermediate HoldCo Scheme and (ii) a reasonable time prior
to the effective date of such Intermediate HoldCo Scheme, the Original Borrower provides (to the
extent that it is reasonably able so to do without breaching any law or regulation applicable to
it (including, without limitation, any requirement of any stock exchange on which any Group Member
is listed)) such information as the Agent may reasonably require in relation to the Intermediate
HoldCo Scheme and the proposed distribution to its shareholders by the Ultimate Holding Company
(including, without limitation, written evidence that all necessary consents to the transaction
have been obtained);
	 
	 	 	“Permitted Scheme” means the Permitted HoldCo Scheme or, unless the Permitted HoldCo Scheme has
previously taken place, the Permitted Intermediate HoldCo Scheme and any other capital
reorganisation or reconstruction (including, without limitation, any proposed court approved
reduction of capital) in connection with achieving the purpose of the Permitted Scheme;
	 
	 	 	“Permitted Securitisation” means, without prejudice to the ability of the Group to otherwise
effect any securitisation in accordance with the provisions of this Agreement, a securitisation or
securitisations of assets by a Group Member provided that the aggregate value (without
double-counting) of:

	 	(a)	 	all assets of the Group which are subject to such securitisation or securitisations;
	 
	 	(b)	 	all loans of cash or assets made pursuant to such securitisation or securitisations;
	 
	 	(c)	 	all disposals made pursuant to such securitisation or securitisations;
	 
	 	(d)	 	all Encumbrances granted pursuant to such securitisation or securitisations; and
	 
	 	(e)	 	all assets encumbered pursuant to clause 21.2.1 (c)
(Negative Pledge),

	 
	 	shall not exceed £300,000,000 in any event.

	 	 	“Qualifying Lender” has the meaning given to
it in clause 14 (Tax gross up and indemnities);
	 
	 	 	“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 Banking 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);
	 
	 	 	“Reference Banks” means the principal London offices of Barclays Bank PLC, Citibank N.A. and
Deutsche Bank AG London or such other banks as may be appointed by the Agent in consultation with
the Ultimate Holding Company pursuant to clause 25.16 (Reference
Bank);

10

 

	 	 	“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 each jurisdiction in which any Obligor is incorporated or formed;
	 
	 	 	“Relevant Proportion” means, in relation to a Lender in respect of any Letter of Credit at any
relevant time, the proportion which that Lender’s Commitment bears to the Total Commitments at such
time but so that if at such time such Lender’s Commitment has
been reduced pursuant to clause 9.1 (Illegality), 9.4
(Right of repayment in relation to a single Lender) or 9.5 (Change of Control)
then as amongst the Finance Parties (but not so as to give any rights to any other person and for
the purpose of this definition only) such Lender’s Commitment shall not be deemed to have been
reduced to the extent that a Borrower does not discharge the LC Liabilities representing such
Lender’s Commitment;
	 
	 	 	“Renewal Request” means a written notice delivered to the Agent in accordance with clause 6.5.8
(Renewal of a Letter of Credit);
	 
	 	 	“Repeating Representations” means each of
the representations set out in clause 20.1.1 (Due
 incorporation of the Borrowers) to 20.1.8 (No litigation) (inclusive) and 20.1.10 (Financial
statements of the Obligors correct and complete);
	 
	 	 	“Reporting Accounting Principles” means those accounting principles, standards and practices
adopted by the Group from time to time in accordance with generally accepted accounting principles
and practices in England and Wales and/or international accounting standards;
	 
	 	 	“Resignation Letter” means a letter substantially in the form set out in Schedule 10 (Form of
Resignation Letter);
	 
	 	 	“Rollover Loan” means one or more Loans:

	 	(a)	 	made or to be made on the same day that a maturing Loan under the Facility is due to be
repaid;
	 
	 	(b)	 	the aggregate amount of which is equal to or less than the maturing Loan;
	 
	 	(c)	 	in the same currency as the maturing Loan (unless it arose as a result of the operation of
clause 7.2 (Unavailability of a currency )); and
	 
	 	(d)	 	made or to be made to any Borrower for the purpose of refinancing a maturing Loan;

	 	 	“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 Ultimate Holding Company and the Lenders;
	 
	 	 	“Specified Time” means a time determined in accordance with Schedule 12 (Timetables);
	 
	 	 	“Special Purpose Subsidiary” means a Group Member (which is not an Obligor) whose principal assets
and business are constituted by the ownership, acquisition, development and/or operation of
particular assets whether directly or indirectly and whose only liabilities are Non-Recourse
Liabilities;
	 
	 	 	“Sterling” and “£” mean the lawful currency for the time being of the United Kingdom and in
respect of all payments to be made under the Finance Documents in Sterling mean immediately
available, freely transferable cleared funds;

11

 

	 	 	“Subordinated Loans” means any Indebtedness in relation to which subordination and priority
arrangements have been entered into in accordance with the provisions of clause 21.2.5(i) and (ii)
(Indebtedness);
	 
	 	 	“Subsidiary” means:

	 	(a)	 	a subsidiary within the meaning of section 736 Companies Act 1985; and
	 
	 	(b)	 	for the purposes of the Financial Definitions and clauses 20.1.10 (Financial statements of
the Obligors correct and complete), 21.1.6 (Provision of further information), and 21.3
(Financial undertakings) only, a subsidiary undertaking within the meaning of section 258
Companies Act 1985;

	 	 	“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” or “Taxes” includes all present and future taxes, levies, imposts, duties, fees or charges
of whatever nature together with interest thereon and penalties in respect thereof and “Taxation”
shall be construed accordingly;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Term” means the period for which the
Lenders are under a liability under a Letter of Credit;

	 
	 	 	“Termination Date” means 30 July 2010;
	 
	 	 	“Testing Accounting Principles” means the Original Accounting Principles as may be amended from
time to time in accordance with clause 21.5 (Testing Accounting Principles);
	 
	 	 	“Total Commitments” means the aggregate of the Commitments, being £1,000,000,000 at the date of
this Agreement;
	 
	 	 	“Total Debt” means at any time, the aggregate outstanding principal or capital amount of
Indebtedness of the Group together with:

	 	(a)	 	the nominal amount of any issued and paid up share capital (other than equity share
capital) of any Subsidiary of the Ultimate Holding Company not beneficially owned by any
other Group Member;
	 
	 	(b)	 	the nominal amount of any preference share capital in any Group Member not owned by
any other Group Member;
	 
	 	(c)	 	Indebtedness secured by any Encumbrance over all or any part of the undertaking,
property, assets, rights or revenues of any Group Member irrespective of whether or not
such Indebtedness is supported by a personal covenant on the part of any other Group
Member;
	 
	 	(d)	 	The aggregate net liabilities (if any) of the Group in respect of Hedging Arrangements, the
amount of such liabilities being calculated as at any relevant date on the basis of the
aggregate net cost to the Group of entering into new Hedging Arrangements with such of
the Reference Banks as the Ultimate Holding Company may nominate from time to time or,
in default of such nomination, with the Agent, which are both equal and opposite to those
Hedging Arrangements to which the Group is (or members of it are) party on any relevant
date, and which would have the economic effect of closing out the Group’s aggregate
current position as at such date under such existing Hedging Arrangements; and
	 
	 	(e)	 	obligations under guarantees in respect of the obligations of any other person which, if
such person were a Group Member, would fall within (a) to (d) above;

	 	 	PROVIDED THAT

12

 

	 	(A)	 	moneys owed by one Group Member to another Group Member shall not be taken into
account;
	 
	 	(B)	 	no liability shall be taken into account more than once in such computation;
	 
	 	(C)	 	any amount (other than an amount outstanding under this Agreement) expressed
in or
calculated by reference to a currency other than Sterling shall be converted into
Sterling
by reference to the Agent’s Spot Rate of Exchange ruling on the date on which any
relevant calculation falls to be made;
	 
	 	(D)	 	the amount of all Utilisations outstanding under this Agreement shall be
deemed to be the
Base Currency Amount thereof;
	 
	 	(E)	 	the principal amount of Total Debt deemed to be outstanding in relation to
Finance Leases
or hire purchase agreements shall be calculated in accordance with the
relevant
provisions of the Statement of Standard Accounting Practice 21 as amended or as
substituted by any generally accepted accounting principles in the United Kingdom from
time to time; and
	 
	 	(F)	 	Non-Recourse Liabilities of a Special Purpose Subsidiary shall not be taken into
account;

	 	 	“Treaty” means the Treaty establishing the European Economic Community, being the Treaty
of Rome of 25th March, 1957, as amended by the Single European Act 1986 and the Maastricht
Treaty (which was signed on 7th February, 1992 and came into force on 1st November, 1993),
as amended, varied or supplemented from time to time;
	 
	 	 	“Transfer Certificate” means a certificate substantially in the form set out in Schedule 5
(Form of Transfer Certificate);
	 
	 	 	“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;

	 
	 	 	“UKLA” means the UK listing authority (or any successor or replacement body which
undertakes a substantial part of the role of the UK Listing Authority as at the date of
this Agreement);
	 
	 	 	“Ultimate Holding Company” means the Original Borrower until the effective date of a HoldCo
Scheme but, from such effective date, HoldCo;
	 
	 	 	“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance
Documents;
	 
	 	 	“Utilisation” means a utilisation of the Facility by way of Loan or Letter of
Credit;
	 
	 	 	“Utilisation Date” means the date on which a Utilisation is made;
	 
	 	 	“Utilisation Request” means (a), in the case of a Utilisation by way of Loan, a notice
substantially in the form set out in Part I of Schedule 3
(Requests) and (b), in the case
of a Utilisation by way of a Letter of Credit, a notice substantially in the form set out
in Part II of Schedule 3 (Requests); and
	 
	 	 	“VAT” means value added tax as provided for in the Value Added Tax Act 1994 and any other
tax of a similar nature.
	 
	   2	 	Construction
	 
	2.1	 	Construction

13

 

	2.1.1	 	Unless the contrary indication appears, any reference in this Agreement to the
“Agent”, the
“Mandated Lead Arrangers” (or “MLAs”), any “Finance Party”, any “Lender”, any
“Obligor” or any “Party” shall be construed so as to include its successors in title, permitted
assigns and permitted transferees.
	 
	2.1.2	 	Any reference in this Agreement to:

	 	(a)	 	“assets” includes present and future properties, revenues and
rights of every
description;
	 
	 	(b)	 	the “European interbank market” means the interbank market for euro
operating in
Participating Member States;
	 
	 	(c)	 	a “Finance Document” or any other agreement or instrument is a
reference to that
Finance Document or other agreement or instrument as from time to time amended,
reinstated, supplemented (including by any increase in amounts thereunder or any
change to the parties thereto) or novated in accordance with its terms;
	 
	 	(d)	 	a “person” includes any person, firm, company, corporation,
government, state or
agency of a state or any association, trust or partnership (whether or not having
separate legal personality) or two or more of the foregoing;
	 
	 	(e)	 	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 authority or organisation;
	 
	 	(f)	 	a provision of law is a reference to that provision as amended or re-enacted;
	 
	 	(g)	 	unless a contrary indication appears, a time of day is a reference to London time;
	 
	 	(h)	 	a “guarantee” includes an indemnity or other assurance against
financial loss including, without limitation, an obligation to purchase assets or
services as a consequence of a default by any other person to pay any
indebtedness and “guaranteed” shall be construed accordingly;
	 
	 	(i)	 	the “equivalent” of an amount specified in a particular currency
(the “specified currency amount”) shall be construed as a reference to the amount
of the other relevant currency which would be required to purchase the specified
currency amount in the London foreign exchange market at the Agent’s Spot Rate of
Exchange on the day on which the calculation falls to be made and for spot
delivery, as conclusively determined by the Agent;
	 
	 	(j)	 	the “agreed form” means, in relation to any document, the form of
such document as shall be agreed between the Ultimate Holding Company and the
Agent for and on behalf of all of the Finance Parties;
	 
	 	(k)	 	“discharge” includes, in respect of contingent liabilities, (i) an
obligation to use best endeavours to procure the release of the relevant Finance
Parties from any liability in respect of such contingent liabilities which may be
effected by (A) providing cash collateral in accordance with (ii) below, (B)
permanently reducing the amount that may be demanded or (C) cancelling the
relevant instrument under which the liabilities arise by returning the original of
such instrument to the relevant person liable together with confirmation (in form
and substance satisfactory to the relevant person liable) from the beneficiary
that the relevant person liable has no further liability under that instrument;
and (ii) to the extent required by the relevant person liable (by notice through
the Agent), an obligation to pay to the relevant person liable for the credit of a
Cash Collateral Account by way of cash collateral an amount as at the date of such
notice which is equal to the amount of the relevant contingent liabilities to be
discharged, whereupon such amount shall become immediately or in accordance with
such notice due and payable. Amounts so credited to a Cash Collateral Account (and
interest thereon) shall be applied in paying the amount of such contingent
liabilities as they fall due on maturity or other crystallisation (and
“discharged” should be construed accordingly);

14

 

	 	(I)	 	(i) the “winding up”,
“dissolution”, or “administration” of a person or (ii)
to a “receiver” or “administrative receiver” in the context of insolvency
proceedings or security enforcement actions in respect of a person shall be
construed so as to include any equivalent or analogous proceedings or any
equivalent and analogous person or appointee (respectively) under the law of the
jurisdiction in which such person is established or incorporated or any
jurisdiction in which such person carries on business including (in respect of
proceedings) the seeking or occurrence of liquidation, winding-up, reorganisation,
dissolution, administration, arrangement, adjustment, protection or relief of
debtors;
	 
	 	(m)	 	an amount borrowed includes any amount utilised by way of Letter of Credit;
	 
	 	(n)	 	a Utilisation made, or to be made, to a Borrower includes a Letter
of Credit issued on its behalf;
	 
	 	(o)	 	a Lender funding its participation in a Utilisation includes a
Lender participating in a Letter of Credit;
	 
	 	(p)	 	amounts outstanding under this Agreement include amounts outstanding
under any Letter of Credit;
	 
	 	(q)	 	a Letter of Credit is “repaid” or “prepaid” in whole or in
part (as applicable) if: 

	 	(i)	 	the relevant Borrower provides cash
cover for such Letter of Credit;
	 
	 	(ii)	 	the maximum amount payable under such Letter of Credit is
reduced in accordance with its terms; or
	 
	 	(iii)	 	the Agent is satisfied that the Lenders have no further
liability under such Letter of Credit,

	 	 	 	and the amount by which a Letter of Credit is repaid or prepaid pursuant to (i)
and (ii) above is the amount of the relevant cash cover or reduction;

	 	(r)	 	“cash cover” is provided for a Letter of Credit if the relevant
Borrower pays an amount in the currency of the Letter of Credit to an
interest-bearing account with the Agent in London in the name of the relevant
Borrower and the following conditions are met:

	 	(i)	 	until no amount is or may be outstanding under that Letter
of Credit, withdrawals from the account may only be made to pay a Finance
Party amounts due and payable to it under that Letter of Credit; and
	 
	 	(ii)	 	the relevant Borrower has executed a security document
over that account, in form and substance satisfactory to the Agent, creating
a first ranking security interest over that account in favour of the
Lenders.

	2.1.3	 	Section, clause and Schedule headings are for ease of reference only.
	 
	2.1.4	 	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.
	 
	2.1.5	 	A Default (other than an Event of Default) is “continuing” if it has not been remedied or
waived and an Event of Default is “continuing” if it has not been waived.
	 
	2.1.6	 	Any provision in a definition that purports to be operative shall take effect as an operative
provision of this Agreement notwithstanding that such provision is contained in a definition.
	 
	2.1.7	 	Unless expressly stated to the contrary, in the event of any inconsistency between the terms
of this Agreement and any other Finance Document, the terms of this Agreement shall
prevail.

15

 

	2.1.8	 	Each reference to “Barclays Capital” shall be to the investment banking division of Barclays
Bank PLC.
	 
	2.2	   Granting rights under the Contracts (Rights of Third Parties) Act 1999
	 
	2.2.1	 	Except as 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.
	 
	2.2.2	 	Subject to clause 33 (Remedies and waivers), 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.
	 
	2.3	   Consent to a Permitted Scheme
	 
	2.3.1	 	The Lenders hereby consent in their capacity as creditors of Group Members to the
Permitted Scheme, provided that no Default has occurred and is continuing and such
Permitted Scheme would not be reasonably likely to result in a Default or be reasonably
likely to have a material adverse effect on the ability of the Obligors (taken as a whole) to
perform all or any of their obligations under the Finance Documents.
	 
	2.3.2	 	The Lenders shall from time to time execute all such documents and take all such actions as
the Ultimate Holding Company may reasonably request for the purpose of implementing the
provisions of clause 2.3.1.

16

 

SECTION 2

THE FACILITIES

	3	   The Facilities
	 
	3.1	   The Facilities
	 
	3.1.1	 	Subject to the terms of this Agreement, the Lenders make available to the Borrowers a
multicurrency revolving loan facility in an aggregate amount equal to the Total Commitments,
to be utilised by way of cash advances and/or, subject always to the LC Limit, Letters of
Credit.
	 
	3.1.2	 	The Ultimate Holding Company shall ensure that at no time shall:

	 	(a)	 	the aggregate Base Currency Amount of the Utilisations exceed the
Total Commitments;
and/or
	 
	 	(b)	 	the aggregate Base Currency Amount of the LC Liabilities exceed the
Base Currency
Amount of the LC Limit.

	3.2	   Finance Parties’ rights and obligations
	 
	3.2.1	 	The obligations of each Finance Party under this Agreement are several. Failure by a
Finance Party to perform its obligations under the Finance Documents does not affect the
obligations of any other Party under the Finance Documents. No Finance Party is
responsible for the obligations of any other Finance Party under this Agreement.
	 
	3.2.2	 	The rights of each Finance Party under or in connection with the Finance Documents are
separate and independent rights and any debt arising under the Finance Documents to a
Finance Party from an Obligor shall be a separate and independent debt.
	 
	3.2.3	 	A Finance Party may, except as otherwise stated in the Finance Documents, separately
enforce its rights under the Finance Documents.
	 
	4	   Purpose
	 
	4.1	   Purpose
	 
	 	   Each Borrower shall apply all amounts utilised by it under the Facility towards the
purposes specified in clause 1.1    (Purpose).
	 
	4.2	   Monitoring
	 
	 	   No Finance Party is bound to monitor or verify the application of any amount borrowed
pursuant to this Agreement.
	 
	5	   Conditions of Utilisation
	 
	5.1	   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. The Agent shall notify the Ultimate Holding
Company and the Lenders promptly upon being so satisfied.

	 
	5.2	   Further conditions precedent
	 
	 	   The Lenders will only be obliged to comply with clause 6.4
(Lenders’ participation)
if on the date of the Utilisation    Request and on the proposed Utilisation Date:

17

 

	 	(a)	 	in the case of a Rollover Loan, no Event of Default is continuing or would
result from the
proposed Loan and, in the case of any other Utilisation, no Default is continuing
or
would result from the proposed Utilisation; and
	 
	 	(b)	 	the Repeating Representations to be made by each Obligor are true in
all material
respects.

	   5.3	Conditions relating to Optional Currencies

	 
	5.3.1	 	A currency will constitute an Optional Currency in relation to a Utilisation if:

	 	(a)	 	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 Utilisation; and
	 
	 	(b)	 	it 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.

	5.3.2	 	If the Agent has received a written request from the Ultimate Holding Company for a
currency to be approved under clause 5.3.1(b) above, the Agent will confirm to the
Ultimate
Holding Company by the Specified Time:

	 	(a)	 	whether or not the Lenders have granted their approval; and
	 
	 	(b)	 	if approval has been granted, the minimum amount (and, if required,
integral multiples)
for any subsequent Utilisation in that currency.

	   5.4	Maximum number of Utilisations

	 
	5.4.1	 	A Borrower may not deliver a Utilisation Request if, as a result of the proposed Utilisation,
more than 15 Utilisations would be outstanding.
	 
	5.4.2	 	Any
Utilisation made by a single Lender under clause 7.2
(Unavailability of a currency) shall
not be taken into account in this clause 5.4.
  
	 
	   5.5	Waiver of Conditions Precedent

	 
	 	   The conditions in this clause 5
(Conditions of Utilisation) are inserted solely for
the benefit of the Lenders and may be waived on their behalf in whole or in part and with
or without conditions by the Agent acting on the instructions of the
Majority Lenders.

18

 

SECTION 3

UTILISATION

	6	 	Utilisation
	 
	6.1	 	Delivery of a Utilisation Request
	 
	 	 	A Borrower may utilise the Facility by delivery to the Agent of a duly completed
Utilisation Request not later than the Specified Time.
	 
	6.2	 	Completion of a Utilisation Request
	 
	6.2.1	 	Each Utilisation Request is irrevocable and will not be regarded as having been duly
completed unless:

	 	(a)	 	in the case of a Loan:

	 	(i)	 	the proposed Utilisation Date is a Banking Day within the Availability
Period;
	 
	 	(ii)	 	the currency and amount of the Utilisation comply with
clause 6.3 (Currency and amount); and
	 
	 	(iii)	 	the proposed Interest Period complies with clause 11
(Interest Periods);
and

	 	(b)	 	in the case of a Letter of Credit;

	 	(i)	 	it specifies that it is for a Letter of Credit;
	 
	 	(ii)	 	the proposed Utilisation Date is a Banking Day within the Availability
Period;
	 
	 	(iii)	 	the currency and amount of the Letter of Credit comply
with clause 6.3 (Currency and amount);
	 
	 	(iv)	 	an agreed form Letter of Credit is attached;
	 
	 	(v)	 	the Utilisation Request is accompanied by a copy of the
form of the documentation or other instrument evidencing the obligation of
the relevant Borrower which will be the subject of the Letter of Credit and
such documentation or other instrument is reasonably acceptable to the
Agent;
	 
	 	(vi)	 	there is a maximum limit to the stated liability of the
Lenders under the Letter of Credit and such Letter of Credit has a specified
Expiry Date falling not later than the Termination Date;
	 
	 	(vii)	 	the Base Currency Amount of the Letter of Credit is a
minimum of £2,500,000 or the balance of the unutilised LC Limit, or such
other lesser amount as the Agent may agree;
	 
	 	(viii)	 	the identity of the beneficiary of the Letter of Credit has been approved
by the Agent, acting reasonably and in accordance with the instructions of
the Majority Lenders;
	 
	 	(ix)	 	the delivery instructions for the Letter of Credit are specified; and
	 
	 	(x)	 	the terms of the Letter of Credit contain a clear
procedure for the making of claims reasonably satisfactory to the Agent.

	6.2.2	 	No more than one currency may be requested in any single Utilisation Request, and a
Utilisation by way of Letter of Credit must be requested in a separate Utilisation
Request.
The Borrowers may, subject to the other terms of this Agreement, deliver more than one
Utilisation Request on any one day.

19

 

	6.3	 	Currency and amount
	 
	6.3.1	 	The currency specified in a Utilisation Request must be the Base Currency or an Optional
Currency.

	 
	6.3.2	 	The amount of the proposed Utilisation must be an amount whose Base Currency Amount is
not more than the Available Facility (and, if such Utilisation is to be made by way of Letter of
Credit, not more than the available LC Limit in any event) and which is a minimum of
£5,000,000 (or its equivalent) in the case of a Utilisation by way of Loan, or a minimum of
£2,500,000 (or its equivalent) in the case of a Utilisation by way of Letter of Credit or, if less,
the Available Facility (or, in the case of a Utilisation by way of Letter of Credit, the LC Limit).

	 
	6.4	 	Lenders’ participation
	 
	6.4.1	 	If the conditions set out in this Agreement have been met, on the Utilisation Date:

	 	(a)	 	each Lender shall make its participation in each Loan available
through its Facility
Office; and/or, as applicable
	 
	 	(b)	 	the Agent shall execute each Letter of Credit for itself as a Lender,
and as agent for and
on behalf of each other Lender, and shall deliver such Letter of Credit to the
stated
beneficiary. Each Lender irrevocably authorises the Agent to execute each Letter
of
Credit which is to be issued in accordance with this Agreement on its behalf
without
further consent or consultation.

	6.4.2	 	The amount of each Lender’s participation in each Utilisation will be equal to the
proportion
borne by its Available Commitment to the Available Facility immediately prior to making the
Utilisation.

	 
	6.4.3	 	The Agent shall notify each Lender of the amount, currency and the Base Currency Amount
of each requested Utilisation at the Specified Time.

	 
	6.5	 	Letters of Credit
	 
	6.5.1	 	Immediately payable

	 
	 	 	If a Letter of Credit or any amount outstanding under a Letter of Credit is expressed
to be immediately payable, the relevant Borrower shall repay or prepay that amount
immediately.

	 
	6.5.2	 	Assignments and transfers

	 
	 	 	If the conditions and procedure for transfer specified in clause 23 (Changes to the
Lenders) are satisfied, and to the extent that an Existing Lender seeks to transfer
any rights or obligations relating to a Letter of Credit (an “Existing LC”) to a New
Lender (any such transfer being a “LC Transfer”), then, subject to the agreement of
the relevant beneficiary, on the Transfer Date:

	 	(a)	 	the Agent shall issue a further Letter of Credit (the
“New LC”) on
the terms of the
Existing LC, but amended to reflect the revised Commitment of each Lender
resulting
from the LC Transfer; and
	 
	 	(b)	 	simultaneously with the delivery of the New LC to the relevant
beneficiary, the Existing
LC shall be surrendered to the Agent and cancelled in full.

	 	 	This clause 6.5.2 (Assignments and transfers) is without prejudice to the ability of
an Existing Lender to transfer its obligations under any Existing LC in accordance
with its terms.

20

 

	6.5.3	 	Claims under a Letter of Credit

	 	(a)	 	The relevant Borrower irrevocably and unconditionally authorises each Lender
to pay
any claim made or purported to be made under a Letter of Credit and which appears
on
its face to be in order (a “claim”).
	 
	 	(b)	 	The relevant Borrower shall immediately on demand pay to the Agent
for the Lenders
an amount equal to the amount of, and in the same currency as, any claim.
	 
	 	(c)	 	Each Borrower acknowledges that each Lender:

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

	 	(d)	 	The obligations of each Borrower under this clause 6.5.3 (Claims
under a Letter of
Credit) will not be affected by:

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

	 	(e)	 	Without prejudice to sub-paragraph (a) of this clause 6.5.3 (Claims
under a Letter of
Credit), the Agent shall use reasonable efforts to notify the relevant Borrower before the
Lenders pay any claim.

	6.5.4	 	Indemnities

	 	(a)	 	The relevant Borrower shall immediately on demand indemnify each Lender
against any
cost, loss or liability whatsoever incurred by such Lender (otherwise than by
reason of
such Lender’s gross negligence or wilful misconduct) in carrying out its function
under
any Letter of Credit, whether pursuant to clause 6.5.3(a) (Claims under a Letter of
Credit) or otherwise.
	 
	 	(b)	 	The relevant Borrower shall immediately on demand indemnify the Agent
against any
cost, loss or liability whatsoever incurred by the Agent (otherwise than by reason
of the
Agent’s gross negligence or wilful misconduct) in carrying out its function under
any
Letter of Credit.
	 
	 	(c)	 	Each Lender shall (according to its Relevant Proportion) immediately
on demand
indemnify the Agent against any cost, loss or liability incurred by the
Agent (otherwise than by reason of the Agent’s gross negligence or wilful
misconduct) in carrying out its function under any Letter of Credit (unless the
Agent has been reimbursed by an Obligor pursuant to a Finance Document).
	 
	 	(d)	 	The relevant Borrower shall immediately on demand reimburse any
Lender for any
payment it makes to the Agent under clause 6.5.4(c) (Indemnities) unless the
relevant
Borrower has already indemnified (i) the Agent in full in respect of such payment
under
clause 6.5.4(c) (Indemnities), (in which instance the Agent shall promptly
reimburse
each Lender to the extent of any payment made by such Lender to the Agent under
clause 6.5.4(c) (Indemnities)), or (ii) such Lender in full in respect of such
payment
under clause 6.5.4(a).
	 
	 	(e)	 	The obligations of each Lender and each Borrower under this clause
6.5.4 (Indemnities)
are continuing obligations and will extend to the ultimate balance of sums payable
by
that Lender or that Borrower (as the case may be) in respect of any Letter of
Credit,
regardless of any intermediate payment or discharge in whole or in part.

21

 

	 	(f)	 	The obligations of any Lender or Borrower under this clause 6.5.4
(Indemnities) will not be affected by any act, omission, matter or thing which,
but for this clause 6.5.4 (Indemnities,) would reduce, release or prejudice any
of its obligations under this clause 6.5.4 (Indemnities) (without limitation and
whether or not known to it or any other person) including:

	 	(i)	 	any time, waiver or consent granted to, or composition
with, any Obligor, any beneficiary under a Letter of Credit or other person;
	 
	 	(ii)	 	the release of any Obligor or any other person under the
terms of any composition or arrangement with any creditor or any member of
the Group;
	 
	 	(iii)	 	the taking, variation, compromise, exchange, renewal or
release of, or refusal or neglect to perfect, take up or enforce, any rights
against, or security over assets of, any Obligor, any beneficiary under a
Letter of Credit 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;
	 
	 	(iv)	 	any incapacity or lack of power, authority or legal
personality of or dissolution or change in the members or status of an
Obligor, any beneficiary under a Letter of Credit or any other person;
	 
	 	(v)	 	any amendment (however fundamental) or replacement of a
Finance Document, any Letter of Credit or any other document;
	 
	 	(vi)	 	any unenforceability, illegality or invalidity of any
obligation of any person under any Finance Document, any Letter of Credit or
any other document; or
	 
	 	(vii)	 	any insolvency or similar proceedings.

	6.5.5	 	Rights of contribution
	 
	 	 	No Obligor will be entitled to any right of contribution or indemnity from any
Finance Party in respect of any payment it may make under this Clause
6.5 (Letters of
Credit).
	 
	6.5.6	 	Additional Security
	 
	 	 	The obligations of the Borrowers under clause 6.5.4 (Indemnities) shall be in addition
to, and shall not be in any way prejudiced by, any collateral or other security now or
hereafter held by any Finance Party as security or any lien to which that Finance
Party may be entitled.
	 
	6.5.7	 	Preservation of Rights
	 
	 	 	No invalidity or unenforceability of all or any part of clause 6.5.4
(Indemnities) shall affect any rights of indemnity or otherwise which any Finance
Party would or may have in the absence of, or in addition to, clause 6.5.4
(Indemnities).
	 
	6.5.8	 	Renewal of a Letter of Credit

	 	(a)	 	The relevant Borrower may request any Letter of Credit issued on its behalf be
renewed by delivery to the Agent of a Renewal Request by the Specified Time.
	 
	 	(b)	 	The Finance parties shall treat any Renewal Request in the same way
as a Utilisation Request for a Letter of Credit except that the conditions set out in
sub-paragraphs (b)(iv) and (b)(viii) of clause 6.2.1 (Completion
of a Utilisation Request) shall not
apply.
	 
	 	(c)	 	The terms of each renewed Letter of Credit shall be the same as those
of the relevant Letter of Credit immediately prior to its renewal, except that:

	 	(i)	 	its amount may be less than the amount of the Letter of
Credit immediately prior to its renewal; and

22

 

	 	(ii)	 	its Term shall start on the date which was the Expiry Date of the
Letter of Credit immediately prior to its renewal, and shall end on the
proposed maturity date specified in the Renewal Request.

	 	(d)	 	If the conditions set out in this Agreement have been met, the
Agent shall amend and re-issue any Letter of Credit pursuant to a Renewal
Request.

	6.5.9	 	Revaluation of Letters of Credit

	 	(a)	 	If any Letter of Credit is denominated in an Optional Currency, the Agent
shall at six
monthly intervals after the date upon which the Letter of Credit is first issued
recalculate
the Base Currency Amount of that Letter of Credit by notionally converting into
the Base
Currency the outstanding amount of that Letter of Credit on the basis of the
Agent’s
Spot Rate of Exchange on the date of calculation.
	 
	 	(b)	 	The Ultimate Holding Company shall, if requested by the Agent
within 5 days of any
calculation under paragraph (a) above, ensure that within three Banking Days of such
request sufficient Utilisations are prepaid to prevent the Base Currency Amount of the
Utilisations exceeding the Total Commitments (or the Base Currency Amount of the LC
Utilisations exceeding the LC Limit, as the case may be) following any adjustment to a
Base Currency Amount under paragraph (a) above.

	6.5.10	 	Lender obligations several
	 
	 	 	The obligations of each Lender under any Letter of Credit are several. Failure
of any Lender to carry out its obligations under such Letter of Credit shall not
relieve any other Lender of its obligations under such Letter of Credit. No Lender
shall be responsible for the obligations of any other Lender under any Letter of
Credit.

	 
	7	 	Optional Currencies
	 
	7.1	 	Selection of currency
	 
	 	 	A Borrower shall select the currency of a Utilisation (in the case of an initial
Utilisation) in a Utilisation Request. No more than five currencies shall be permitted
in respect of outstanding Utilisations at any time.
	 
	7.2	 	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 Utilisation in the proposed Optional Currency would contravene a law or regulation applicable to
it,
	 

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 7.2
will be required to participate in the Utilisation 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 Loan that is due to be repaid) and its participation will be treated as
a separate Utilisation denominated in the Base Currency during that Interest Period.

	7.3	 	Agent’s calculations
	 
	 	 	Each Lender’s participation in a Utilisation will be determined in accordance with
clause 6.4.2 (Lenders’ participation).

23

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

	8	 	Repayment
	 
	 	 	The relevant Borrower shall repay each Utilisation made by way of Loan in full on
the last day of its Interest Period, and each Utilisation made by way of Letter of Credit
in full on the last day of its Term. All outstanding Utilisations shall be repaid in full
on the Termination Date in any event.
	 
	9	 	Prepayment and cancellation
	 
	9.1	 	Illegality
	 
	 	 	If it becomes unlawful in any applicable jurisdiction for a Lender to perform any
of its obligations as contemplated by this Agreement or to fund its participation in any
Loan or maintain its obligations in respect of any Letter of Credit:

	 	(a)	 	that Lender shall promptly notify the Agent upon becoming aware of that event;
	 
	 	(b)	 	upon the Agent notifying the Ultimate Holding Company, the Commitment of
that Lender
will be immediately cancelled; and
	 
	 	(c)	 	each Borrower shall repay that Lender’s participation in the Utilisations
made to that
Borrower on the last day of the Interest Period for each Utilisation occurring after the
Agent has notified the Ultimate Holding Company or, if earlier, the date specified by the
Lender in the notice delivered to the Agent (being no earlier than the last day of any
applicable grace period permitted by law).

	9.2	 	Voluntary cancellation
	 
	 	 	The Ultimate Holding Company may, if it gives the Agent not less than 5 Banking
Days’ (or such shorter period as the Majority Lenders may agree) prior written notice,
cancel the whole or any part (being a minimum amount of £5,000,000) of the Available
Facility. Any cancellation under this clause 9.2 shall reduce the Commitments of the
Lenders rateably under the Facility.
	 
	9.3	 	Voluntary Prepayment
	 
	 	 	The Borrower to which a Utilisation has been made may, if it gives the Agent not
less than three Banking Days’ (or such shorter period as the Majority Lenders may agree)
prior notice, prepay the whole or any part of a Utilisation (but if in part, being an
amount that reduces the Base Currency Amount of the Utilisation by a minimum amount of
£5,000,000 or any larger sum which is an integral multiple of £1,000,000).
	 
	9.4	 	Right of repayment and cancellation in relation to a single Lender

	9.4.1	 	        If:

	 	(a)	 	any sum payable to any Lender by an Obligor is required to be increased
under
clause 14.2.3 (Tax gross-up); or
	 
	 	(b)	 	any Lender claims indemnification from the Ultimate
Holding Company under
clause 14.3 (Tax indemnity) or clause 15.1 (Increased
costs),
	 
	 	the Ultimate Holding Company may, whilst the circumstance giving rise to the
requirement or indemnification continues, give the Agent notice of cancellation of the
Commitments of that Lender and its intention to procure the repayment of that Lender’s
participation in the Utilisations.

	9.4.2	 	On receipt of a notice referred to in clause 9.4.1, the Commitments of that Lender shall
immediately be reduced to zero.

24

 

	9.4.3	 	On the last day of each Interest Period which ends after the Ultimate Holding Company has
given notice under clause 9.4.1 (or, if earlier, the date specified by the Ultimate
Holding Company in that notice), the relevant Borrower shall repay that Lender’s
participation in any relevant Utilisation.
	 
	9.5 	Change of Control
	 
	9.5.1	 	Upon a Change of Control, each Lender shall give written notice to the Agent and the
Ultimate Holding Company either:

	 	(a)	 	requiring each Borrower to prepay all amounts outstanding to that
Lender under or
pursuant to the Facility (a “Prepayment Notice”); or
	 
	 	(b)	 	confirming its consent to such Change of Control (a “Confirmation Notice”),

	 	 	in either case, on a date no later than that falling 30 days after receipt by the
Agent of notice of such Change of Control (the “Decision Date”) (such notice to be
sent to the Agent by the Ultimate Holding Company within 5 days of any Change of
Control in any event),
	 
	 	 	A “Change of Control” shall occur either (i) if, other than (unless the Permitted
Intermediate HoldCo Scheme has previously taken place) as a result of the Permitted
HoldCo Scheme, any person or group of persons acting in concert (other than the
Original Ultimate Shareholder, any Subsidiary or the Holding Company of the Original
Ultimate Shareholder, or any other Subsidiary of such Holding Company) acquire direct
or indirect control of the Ultimate Holding Company or (ii) if a Borrower (other than
the Ultimate Holding Company) ceases to be a direct or indirect wholly owned
Subsidiary of the Ultimate Holding Company unless it has first ceased to be a Borrower
in accordance with clause 19.20 (Resignation of a Borrower);
	 
	 	 	“Control” has the meaning given to that term in section 840 of the Income and
Corporation Taxes Act 1988; and
	 
	 	 	“acting in concert” has the meaning given to that term in the City Code on Takeovers
and Mergers.
	 
	9.5.2	 	The Agent shall promptly notify the Lenders of any Change of Control to the extent that it
is so notified in accordance with clause 9.5.1 above. Following such notification, each Lender
may, in its absolute discretion, deliver a Prepayment Notice or a Confirmation Notice but any
Lender which fails to deliver either such notice on or prior to the Decision Date shall be
deemed to have given a Confirmation Notice in any event.
	 
	9.5.3	 	On delivery of a Prepayment Notice, the Commitments of the relevant Lender shall
immediately be reduced to zero.
	 
	9.5.4	 	On the last day of each Interest Period which ends after a Lender delivers a Prepayment
Notice in accordance with clause 9.5.1, the relevant Borrower shall repay that Lender’s
participation in any relevant Utilisation.
	 
	9.6 	
Restrictions

	 
	9.6.1	 	Any notice of cancellation or prepayment given by any Party under this clause 9
(Prepayment and cancellation) 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.
	 
	9.6.2	 	Any prepayment under this Agreement shall be made together with accrued interest on the
amount prepaid and, subject to any Break Costs, without premium or penalty.
	 
	9.6.3	 	Unless a contrary indication appears in this Agreement, any part of the Facility which is
prepaid voluntarily may be reborrowed in accordance with the terms of this Agreement.
	 
	9.6.4	 	If, under clause 9 (Prepayment and cancellation) a Borrower elects to prepay the whole or
any part of a Loan, the relevant Borrower can further elect (by notice to the Agent no
later

25

 

	 	 	than 10.00 a.m. on the date falling two Banking Days prior to which the
prepayment would otherwise be due) to credit the amount to be prepaid to a Cash
Collateral Account in the name of such Borrower on the date on which such prepayment
would, but for this clause, be due to be made. Following any such election and
provided the required payment is made to the Cash Collateral Account, the obligation
to prepay the relevant Utilisation will not arise until the last day of the then
current Interest Period or Term relative to the Utilisation to be repaid.
	 
	9.6.5	 	The relevant Borrower authorises the Agent on behalf of the Obligors to withdraw monies
from such Cash Collateral Account and apply such monies upon the occurrence of an Event
of Default in respect of which a notice has been given pursuant to clause 22.2 (Acceleration),
against any amounts due and payable by it under the Finance Documents.
	 
	9.6.6	 	Any prepayment of the Facility pursuant to clauses 9.1
(Illegality), 9.3 (Voluntary Prepayment),
9.4 (Right of repayment and cancellation in relation to a single
Lender) or 9.5 (Change of
Control) shall include the discharge of LC Liabilities to the extent of the relevant Lender’s
Relevant Proportion of the amount of the LC Liabilities outstanding at the relevant time.

	 
	9.6.7	 	No Borrower shall repay or prepay all or any part of the Utilisations or cancel all or any part
of the Commitments except at the times and in the manner expressly provided for in this
Agreement.
	 
	9.6.8	 	No amount of the Total Commitments cancelled under this Agreement may be subsequently
reinstated.
	 
	9.6.9	 	If the Agent receives a notice under this clause 9
(Prepayment and cancellation) it shall
promptly forward a copy of that notice to either the Ultimate Holding Company or the
affected
Lender, as appropriate.

26

 

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 from time to time;
	 
	 	(b)	 	LIBOR or, in relation to any Loan in euro, EURIBOR; and
	 
	 	(c)	 	Mandatory Cost, if any.

	10.1.1	 	Calculation of Margin
	 
	 	 	The Margin in relation to any Loan, and the Letter of Credit fee for the
purposes of clause 13.4.1 (Letter of Credit Fees), shall (subject to the proviso
below) be the rate set out in column (1) below which corresponds to the ratio of
Net Debt to EBITDA set out in column (2) below, EBITDA being calculated as the
aggregate EBITDA for the two most recently preceding Half-Yearly Periods in
respect of which a Compliance Certificate has been delivered to the Agent in
accordance with clause 21.1.5(c) (Delivery of reports) (and, if applicable,
paragraph 12 of Schedule 2 (Conditions Precedent) and determined from the most
recent such Compliance Certificate:

	 	 	 
	(1)	 	(2)
	Rate (per cent. per annum)	 	Net Debt: EBITDA
	0.55

	 	greater than or equal to 2.00:1
	0.50

	 	Less than 2.00:1 and greater than or equal to 1.00:1
	0.45

	 	Less than 1.00:1

	 	 	 	provided that:

	 	(a)	 	prior to the date upon which the Agent receives a Compliance
Certificate relating to the
Half-Yearly Period ending 31 December 2004, the Margin shall be the rate set out
in
column (1) above which corresponds to the ratio of Net Debt to EBITDA set out in
column (2) above, EBITDA as determined from the Compliance Certificate provided
by
the Ultimate Holding Company in accordance with paragraph 12 of
Schedule 2
(Conditions precedent); and
	 
	 	(b)	 	if the Ultimate Holding Company has failed to deliver a
Compliance Certificate due
under this Agreement within five days of its due date, the Margin shall be 0.55
per cent.
per annum until such time as such Compliance Certificate is duly delivered
in
accordance with clause 21.1.5 (Delivery of reports).

	 	 	For the avoidance of doubt, any change in Margin shall take effect immediately
following delivery of a Compliance Certificate to the Agent in accordance with
clause 21.1.5 (Delivery of reports).

	10.2	 	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).

27

 

	10.3	 	Default interest

	10.3.1	 	If an Obligor fails to pay any amount payable by it under a Finance Document on its due
date,
interest shall accrue on the overdue amount from the due date up to the date of actual
payment (both before and after judgment) at 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 Utilisation 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 10.3 shall be immediately payable by the Obligor on demand by the Agent.
	 
	10.3.2	 	Default interest (if unpaid) arising on an overdue amount will be compounded with the
overdue amount at the end of each Interest Period applicable to that overdue amount but will
remain immediately due and payable.

	10.4	   
Notification of rates of interest
	 
	 	 	The Agent shall promptly notify the Lenders and the relevant Borrower of the
determination of a rate of interest under this Agreement.
	 
	11	   
Interest Periods
	 
	11.1	   
Selection of Interest Periods

	11.1.1	 	The relevant Borrower may select an Interest Period for a Loan in the Utilisation Request
for
that Loan.
	 
	11.1.2	 	Subject to this clause 11, the relevant Borrower may select an Interest Period of 1, 2, 3 or
6 Months or any other period agreed between such Borrower and the Agent.
	 
	11.1.3	 	An Interest Period for a Loan shall not extend beyond the Termination Date.
	 
	11.1.4	 	Each Loan shall have one Interest Period only.

	11.2	   
Non-Banking Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Banking Day, that
Interest Period will instead end on the next Banking Day in that calendar month (if
there is one) or the preceding Banking Day (if there is not).
	 
	12	   
Changes to the calculation of interest
	 
	12.1	   
Absence of quotations
	 
	 	 	Subject to clause 12.2 (Market disruption), if LIBOR 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

	12.2.1	 	If a Market Disruption Event 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:

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

28

 

	12.2.2	 	In this Agreement “Market Disruption Event” means:

	 	(a)	 	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
period; or
	 
	 	(b)	 	before close of business in London on the Quotation Day for the
relevant Interest Period,
the Agent receives notifications from a Lender or Lenders (whose participations in a
Loan exceed 331/3 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
	 
	12.3.1	 	If a Market Disruption Event occurs and the Agent or the Ultimate Holding Company so
requires, the Agent and the Ultimate Holding Company 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.
	 
	12.3.2	 	Any alternative basis agreed pursuant to clause 12.3.1 shall, with the prior consent of all
the
Lenders and the Ultimate Holding Company, be binding on all Parties.
	 
	12.4	   
Break Costs
	 
	12.4.1	 	The relevant Borrower shall, within three Banking 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.
	 
	12.4.2	 	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
	 
	13.1.1	 	The Ultimate Holding Company shall pay to the Agent (for the account of each Lender)
a fee
in the Base Currency computed at the rate per annum of 40 per cent. of the Margin
applicable on the day of payment of such fee on that Lender’s Available Commitment for the
Availability Period.
	 
	13.1.2	 	The accrued commitment fee is payable on the last day of each successive period of three
Months which ends during the Availability Period, on the last day of the Availability Period
and on the cancelled amount of any relevant Lender’s Commitment at the time the
cancellation is effective.
	 
	13.2	   
Arrangement fee
	 
	 	 	The Ultimate Holding Company shall pay to the Mandated Lead Arrangers an
arrangement fee in the amount and at the times agreed in a Fee Letter.
	 
	13.3	   
Agency fee
	 
	 	 	The Ultimate Holding Company shall pay to the Agent (for its own account) an
agency fee in the amount and at the times agreed in a Fee Letter.
	 
	13.4	   
Letter of Credit Fees

29

 

	13.4.1	 	The Ultimate Holding Company shall pay fees calculated on the aggregate
daily Base
Currency Amount of the LC Liabilities, as determined by the Agent at an annual rate
equal to
the applicable Margin, to the Agent for the account of each Lender.
	 
	13.4.2	 	The accrued Letter of Credit fees are payable in respect of each Letter of Credit on the
last
day of each successive period of three months (or such shorter period as shall end on
the
maturity date of such Letter or Credit) starting on the date of issue of such Letter
of Credit.
Accrued Letter of Credit fees are also payable on the cancelled amount of any Lender’s
Commitment at the time that such cancellation is effective if that Commitment is
cancelled in
full and the Letters of Credit are prepaid or repaid in full.
	 
	13.5	   
Utilisation Fee
	 
	13.5.1	 	If the aggregate of the Base Currency Amount of all outstanding Utilisations is
greater than 50
per cent, of the Total Commitments, the Ultimate Holding Company shall pay to the Agent (for
the account of each Lender) a fee in the Base Currency computed at a rate per annum of 0.05
per cent, of the Base Currency Amount of all outstanding Utilisations.
	 
	13.5.2	 	Such utilisation fee shall be calculated on a daily basis and is payable on the last day of each
successive period of three Months which ends during the Availability Period and on the
last day
of the Availability Period.

30

 

SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

	14	   
Tax gross up and indemnities
	 
	14.1	   
Definitions
	 
	14.1.1	 	In this clause 14 (Tax
gross-up and indemnities):
	 
	 	 	“Bank Lender” means a Lender:

	 	(a)	 	which is a bank (as defined for the purpose of section 349 of the
Taxes Act) making an
advance under a Finance Document; or
	 
	 	(b)	 	in respect of an advance made under a Finance Document by a person
that was a bank
(as defined for the purposes of section 349 of the Taxes Act) at the time that
such
advance was made,

	 	 	and which is within the charge to United Kingdom corporation tax as respects any
payments of interest made in respect of that advance.
	 
	 	 	“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 a Lender which is (on the date a payment falls due):

	 	(a)	 	beneficially entitled to the interest payable to it in respect of
an advance under a
Finance Document; and
	 
	 	(b)	 	a Bank Lender, a UK Lender or a Treaty 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 a Lender who, by virtue of a double taxation agreement between
the United Kingdom and the country of residence of that Lender, is (subject only to a
prior direction given to the relevant Borrower by the United Kingdom Inland Revenue
following an application by that Lender) eligible to receive payments from each
Borrower under this Agreement without any deduction in respect of Taxes and does not
carry on a business in the United Kingdom through a permanent establishment with
which such Lender’s participation in the Loan is effectively connected.
	 
	 	 	“UK Lender” means a person who is:

	 	(a)	 	a company resident in the United Kingdom for tax purposes; or
	 
	 	(b)	 	a partnership each of whose members is a company so resident; or
	 
	 	(c)	 	a company not so resident in the United Kingdom for tax purposes,
but which carries on
a trade in the United Kingdom through a branch or agency which brings into account
interest payable in respect of that advance in computing its chargeable profits
(within
the meaning given by section 11(2) of the Taxes Act).

31

 

	14.1.2	 	In this clause 14 (Tax gross up and indemnities) 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

	 
	14.2.1	 	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a
Tax Deduction is required by law.
	 
	14.2.2	 	The Ultimate Holding Company 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 Ultimate Holding Company and that Obligor.
	 
	14.2.3	 	If a Tax Deduction is required by law to be made by an Obligor the amount of the payment
due from that Obligor shall be increased, subject to clause 14.2.4 below, 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.
	 
	14.2.4	 	An Obligor is not required to make an increased payment to a Lender under clause 14.2.3
above for a Tax Deduction in respect of tax imposed by the United Kingdom from a
payment
of interest on a Loan, if on the date on which the payment falls due:

	 	(a)	 	the payment could have been made to the relevant Lender without a
Tax Deduction if it was a Qualifying Lender, but on that date the relevant
Lender is not or has ceased to be a Qualifying Lender other than as a result of
any change after the date it became a Lender under this Agreement in (or in the
interpretation, administration or application of) any law or double taxation
agreement or any published practice or concession of any relevant taxing
authority; or

	 	(b)	 	 

	 	(i)	 	the relevant Lender is a UK Lender, or would have been a
UK Lender were it not for any change after the date it became a Lender under
this Agreement in (or in the interpretation, administration, or application
of) any law or double taxation agreement, or any published practice or
concession of any relevant taxing authority; and
	 
	 	(ii)	 	the Board of the Inland Revenue has given (and not
revoked) a direction under section 349C of the Taxes Act (as that provision
has effect on the date on which the relevant Lender became a party to this
Agreement) which relates to that payment and that Obligor has notified that
UK Lender of the precise terms of that notice; or

	 	(c)	 	the relevant Lender is a Treaty Lender and the Obligor making the
payment is able to demonstrate that the payment could have been made to the
Lender without the Tax Deduction had that Lender complied with its obligations
under clause 14.2.7 below.

	14.2.5	 	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.
	 
	14.2.6	 	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.
	 
	14.2.7	 	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, provided that if
a Treaty Lender is also a New Lender (as such term is defined in clause 23.1 (Assignment
and transfers by the Lenders)) it shall be deemed, for the purposes of this clause 14.2.7
and clause 14.2.4(c) above, to have failed to comply with its obligations under this
clause 14.2.7

32

 

	 	 	if, following its assumption of obligations pursuant to clause 23 (Changes to
the Lenders) (the date of such assumption being the “Accession Date”), it omits to
file an application for relief under any applicable double taxation agreement with
the relevant authorities in its country of residence, any such application to be
filed by the date falling 30 days before the date upon which an interest payment next
falls due or the Accession Date, whichever the later.

	 
	14.3	 	Tax indemnity

	 
	14.3.1	 	The Ultimate Holding Company shall (within three Banking Days of demand by the Agent)
pay to a Protected Party an amount equal to the loss, liability or cost which that Protected
Party determines will be or has been (directly or indirectly) suffered for or on account of Tax
by that Protected Party in respect of a Finance Document.
	 
	14.3.2	 	Clause 14.3.1 above shall not apply:

	 	(a)	 	with respect to any Tax assessed on a Finance Party:

	 	(i)	 	under the law of the jurisdiction in which that Finance
Party is incorporated or, if different, the jurisdiction (or jurisdictions)
in which that Finance Party is treated as resident for tax purposes; or
	 
	 	(ii)	 	under the law of the jurisdiction in which that Finance
Party’s Facility Office is located in respect of amounts received or
receivable in that jurisdiction,
	 
	 	if that Tax is imposed on or calculated by reference to the net income received or
receivable (but not any sum deemed to be received or receivable) by that Finance
Party; or

	 	(b)	 	with respect to any Tax assessed on the Agent, as a result of the
failure by a Lender to
satisfy on the due date of a payment of interest the condition set out in clause
25.15 (Lenders’ tax status confirmation); or
	 
	 	(c)	 	to the extent that a loss, liability or cost:

	 	(i)	 	is compensated for by an increased payment under clause
14.2 (Tax gross-up); or
	 
	 	(ii)	 	would have been compensated for by an increased payment
under clause 14.2 (Tax gross-up) but was not so compensated solely because
one of the exclusions in clause 14.2.4 applied.

	14.3.3	 	A Protected Party making, or intending to make a claim pursuant to clause 14.3.1 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 Ultimate Holding Company.
	 
	14.3.4	 	A Protected Party shall, on receiving a payment from an Obligor under this clause 14.3,
notify the Agent.

	 
	14.4	 	Tax Credit  

	 
	 	 	If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

	 	(a)	 	a Tax Credit is attributable either to an increased payment of which that
Tax Payment
forms part, or to that Tax Payment; and
	 
	 	(b)	 	that Finance Party has obtained, utilised and retained that Tax Credit,

	 	 	the Finance Party shall pay an amount to the Obligor which that Finance Party determines
will leave it (after that payment) in the same after-Tax position as it would have been
in had the Tax Payment not been made by the Obligor.

33

 

	   14.5	 	Stamp taxes
	 
	 	 	The Ultimate Holding Company shall pay and, within three Banking 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

	 
	14.6.1	 	All consideration payable under a Finance Document by any Party to a Finance Party shall
be deemed to be exclusive of any VAT. If VAT is chargeable on any supply made by any
Finance Party to any Party in connection with a Finance Document that Party shall pay
to the Finance Party (in addition to and at the same time as paying that consideration) an
amount equal to the amount of the VAT.
	 
	14.6.2	 	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

	 
	15.1.1	 	Subject to clause 15.3 (Exceptions) the Ultimate Holding Company shall, within three
Banking Days of a demand by the Agent, pay for the account of a Finance Party the amount
of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i)
the introduction of or any change in (or in the interpretation, administration or application of)
any law or regulation or (ii) compliance with any law or regulation made after the date of this
Agreement.
	 
	15.1.2	 	In this Agreement “Increased Costs” means:

	 	(a)	 	a reduction in the rate of return from the Facility or on a Finance
Party’s (or its Affiliate’s)
overall capital;
	 
	 	(b)	 	an additional or increased cost; or
	 
	 	(c)	 	a reduction of any amount due and payable under any Finance Document,

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

	 
	  15.2	 	Increased cost claims

	 
	15.2.1	 	A Finance Party intending to make a claim pursuant to clause 15.1 (Increased costs)
shall
notify the Agent of the event giving rise to the claim, following which the Agent shall promptly
notify the Ultimate Holding Company.
	 
	15.2.2	 	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a
certificate confirming the amount of its Increased Costs.

	 
	  15.3	 	Exceptions

	 
	15.3.1	 	Clause 15.1 (Increased costs) does not apply to the extent any Increased Cost is:

	 	(a)	 	attributable to a Tax Deduction required by law to be made by an Obligor;
	 
	 	(b)	 	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 clause 14.3.2 (Tax indemnity) applied);

34

 

	 	(c)	 	compensated for by the payment of the Mandatory Cost; or
	 
	 	(d)	 	attributable to the wilful breach by the relevant Finance Party or
its Affiliates of any law
or regulation.

	15.3.2	 	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
	 
	16.1.1	 	If any sum due from an Obligor under the Finance Documents (a
“Sum”), or any order,
judgment or award given or made in relation to a Sum, has to be converted from the
currency (the “First Currency”) in which that Sum is payable into another currency
(the “Second Currency”) for the purpose of:

	 	(a)	 	making or filing a claim or proof against that Obligor;
	 
	 	(b)	 	obtaining or enforcing an order, judgment or award in relation to
any litigation or arbitration proceedings,

	 	 	that Obligor shall as an independent obligation, within three Banking 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.
	 
	16.1.2	 	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 Ultimate Holding Company shall (or shall procure that an Obligor will), within three
Banking Days of demand, indemnify each Lender against any cost, loss or liability
incurred by that Lender as a result of:

	 	(a)	 	the occurrence of any Event of Default;
	 
	 	(b)	 	a failure by an Obligor to pay any amount due under a Finance Document on
its due date,
including without limitation, any cost, loss or liability arising as a result of
clause 27
(Sharing among the Finance Parties);
	 
	 	(c)	 	funding, or making arrangements to fund, its participation in a
Utilisation requested by a
Borrower in a Utilisation Request but not made by reason of the operation of any one
or
more of the provisions of this Agreement (other than by reason of default or
negligence by
that Lender alone); or
	 
	 	(d)	 	a Utilisation (or part of a Utilisation) not being prepaid in accordance
with a notice of prepayment given by a Borrower.

	16.3	 	Indemnity to the Agent

	 	 	The Ultimate Holding Company 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)	 	acting or relying on any notice, request or instruction which it
reasonably believes to be
genuine, correct and appropriately authorised.

35

 

	      17	 	Mitigation by the Lenders
	 
	   17.1	 	Mitigation

	 
	17.1.1	 	Each Finance Party shall, in consultation with the Ultimate Holding Company, 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) or paragraph 3 of
Schedule 4 (Mandatory Cost formulae) including (but not limited to) transferring its rights and
obligations under the Finance Documents to another Affiliate or Facility Office.
	 
	17.1.2	 	Clause 17.1.1 above does not in any way limit the obligations of any Obligor under the
Finance Documents.

	 
	   17.2	 	Limitation of liability

	 
	17.2.1	 	The Ultimate Holding Company 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).
	 
	17.2.2	 	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 Ultimate Holding Company shall promptly on demand pay the Agent and the MLAs
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 28.9 (Change of currency), the Ultimate Holding Company
shall, within three Banking 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 Ultimate Holding Company shall, within three Banking Days of demand, pay to
each Finance Party the amount of all costs and expenses (including legal fees) incurred
by that Finance Party in connection with the enforcement of, or the preservation of any
rights under, any Finance Document.
	 
	   18.4	 	Cost of consents to a Permitted Scheme
	 
	 	 	The Ultimate Holding Company shall, within three Banking Days of demand, pay to
the Agent on behalf of each Finance Party the amount of all costs and expenses
(including legal fees) reasonably incurred by that Finance Party in taking any action or
executing any document referred to in clause 2.3.2 (Consent to a Permitted Scheme).

36

 

SECTION 7

GUARANTEE

	19	 	Guarantee and indemnity
	 
	19.1	 	Covenant to pay
	 
		 	Each Guarantor irrevocably and unconditionally jointly and severally guarantees to pay to
the Agent, for the account of the Finance Parties, on demand by the Agent all moneys and
discharge all obligations and liabilities now or hereafter due, owing or incurred by each
Borrower to the Finance Parties (or any of them) under or pursuant to the Finance
Documents when the same become due for payment or discharge whether by acceleration or
otherwise and whether such moneys are denominated in Sterling or in any Optional
Currency.

	 
	19.2	 	Guarantors as principal debtors; indemnity
	 
	 	 	As a separate and independent stipulation, the Guarantors jointly and severally agree
that if any purported obligation or liability of any Borrower which would have been the
subject of this guarantee had it been valid and enforceable is not or ceases to be valid
or enforceable against such Borrower on any ground whatsoever whether or not known to the
Finance Parties or any of them (including, without limitation, any irregular exercise or
absence of any corporate power or lack of authority of, or breach of duty by, any person
purporting to act on behalf of such Borrower or any legal or other limitation, whether
under the Limitation Acts or otherwise or any disability or Incapacity or any change in
the constitution of such Borrower) the Guarantors shall nevertheless be jointly and
severally liable to the Finance Parties in respect of that purported obligation or
liability as if the same were fully valid and enforceable and such Guarantor was the
principal debtor in respect thereof. The Guarantors hereby jointly and severally agree to
keep the Finance Parties fully indemnified on demand against all damages, losses, costs
and expenses arising from any failure of such Borrower to perform or discharge any such
purported obligation or liability.

	 
	19.3	 	No security taken by Guarantors
	 
	 	 	The Guarantors jointly and severally warrant that they have not taken or received, and
undertake that until all the Guaranteed Liabilities have been paid or discharged in
full, they will not take or receive, the benefit of any security from any Borrower or
any other person in respect of their obligations under this guarantee.

	 
	19.4	 	Interest
	 
	 	 	
Each Guarantor agrees to pay interest on each amount demanded of it under this guarantee
from the date of such demand until payment (as well after as before judgment) at the
rate specified in clause 10.3 (Default interest). Such interest shall be compounded at
the end of each period determined for this purpose by the Agent in the event of it not
being paid when demanded but without prejudice to the Lenders’ right to require payment
of such interest.
	 
	19.5	 	Continuing security and other matters
	 
	 	 	This guarantee shall:

	 

	19.5.1	 	secure the ultimate balance from time to time owing to the Finance Parties by each Borrower
and shall be a continuing security, notwithstanding any settlement of account or other matter
whatsoever;
	 
	19.5.2	 	be in addition to any present or future Collateral Instrument, right or remedy held by or
available to the Lenders or any of them or each MLA or the Agent; and
	 
	19.5.3	 	not be in any way prejudiced or affected by the existence of any such Collateral Instrument,
rights or remedies or by the same becoming wholly or in part void, voidable or unenforceable
on any ground whatsoever or by the Agent or the MLAs or the Lenders or any of them

37

 

dealing with, exchanging, varying or failing to perfect or enforce any of the same or giving
time for payment or indulgence or compounding with any other person liable.

	19.6	 	New accounts
	 
	 	 	If this guarantee ceases to be continuing for any reason whatsoever each Lender may
nevertheless continue any account of either of the Borrowers or open one or more new accounts and
the liability of the Guarantors under this guarantee shall not in any manner be reduced or affected
by any subsequent transactions or receipts or payments into or out of any such account.

	 
	19.7	 	Liability unconditional
	 
	 	 	The liability of each Guarantor shall not be affected nor shall this guarantee be discharged or
reduced by reason of:
	 
	19.7.1	 	the Incapacity or any change in the name, style or constitution of any Obligor or any other
person liable; or

	 
	19.7.2	 	any Finance Party granting any time, indulgence or concession to, or compounding with,
discharging, releasing or varying the liability of any other Obligor or any other person liable
or renewing, determining, varying or increasing any accommodation, facility or transaction or
otherwise dealing with the same in any manner whatsoever or concurring in, accepting or varying
any compromise, arrangement or settlement or omitting to claim or enforce payment from any
other Obligor or any other person liable; or

	 
	19.7.3	 	any act or omission which would not have discharged or affected the liability of such Guarantor
had it been a principal debtor instead of a guarantor or by anything done or omitted which but
for this provision might operate to exonerate such Guarantor.

	 
	19.8	 	Collateral Instruments
	 
	 	 	No Finance Party shall be obliged to make any claim or demand on any Borrower or to resort to any
Collateral Instrument or other means of payment now or hereafter held by or available to them or
it before enforcing this guarantee and no action taken or omitted by any Finance Party in
connection with any such Collateral Instrument or other means of payment shall discharge, reduce,
prejudice or affect the liability of any Guarantor under this guarantee nor shall any Finance
Party be obliged to apply any money or other property received or recovered in consequence of any
enforcement or realisation of any such Collateral Instrument or other means of payment in
reduction of the Guaranteed Liabilities.
	 
	19.9	 	Waiver of Guarantors’ rights
	 
	 	 	Until all the Guaranteed Liabilities have been paid, discharged or satisfied in full (and
notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement)
each Guarantor agrees that, without the prior written consent of the Agent, it will not:
	 
	19.9.1	 	exercise its rights of subrogation, reimbursement and indemnity against any other Obligor or
any other person liable; or

	 
	19.9.2	 	demand or accept repayment in whole or in part of any Indebtedness now or hereafter due as a
consequence of entering into this Agreement as a Guarantor or making a payment under this
Agreement as a Guarantor, due to such Guarantor from any other Group Member or from any other
person liable or demand or accept any Collateral Instrument in respect of the same or dispose
of the same; or

	 
	19.9.3	 	take any step to enforce any right either against any other Obligor arising as a consequence of
entering into this Agreement as a Guarantor or making a payment under this Agreement as a
Guarantor or against any other person liable in respect of any Guaranteed Liabilities; or

	 
	19.9.4	 	claim any set-off or counterclaim against any other Obligor or any other person liable or claim
or prove in competition with any Finance Party in the liquidation of any other Obligor or

38

 

any other person liable or have the benefit of, or share in, any payment from or
composition with, any other Obligor or any other person liable or any other Collateral
Instrument now or hereafter held by any Finance Party for any Guaranteed Liabilities or
for the obligations or liabilities of any other person liable but so that, if so
directed by the Agent, it will prove for the whole or any part of its claim in the
liquidation of any other Obligor on terms that the benefit of such proof and of all
money received by it in respect thereof shall be held on trust for the Finance Parties
and applied in or towards discharge of the Guaranteed Liabilities in accordance with
the order set out in clause 28.5.1 (Partial payments).

	19.10	 	Suspense accounts
	 
	 	 	Any money received in connection with this guarantee (whether before or after any
Incapacity of any Obligor) may be placed to the credit of a suspense account with a view
to preserving the rights of the Finance Parties to prove for the whole of their
respective claims against any Obligor or any other person liable or may be applied in or
towards satisfaction of the Guaranteed Liabilities in accordance with the order set out
in clause 28.5.1 (Partial payments) save where such money is received pursuant to a
demand by the Agent under clause 10.1 (Calculation of interest) and is in an amount equal
to the sum demanded, in which case such money shall be applied in or towards satisfaction
of the Guaranteed Liabilities in accordance with the order set out in clause 28.5.1
(Partial payments).

	 
	19.11	 	Settlements conditional
	 
	 	 	Any release, discharge or settlement between any Guarantor and the Finance Parties shall
be conditional upon no security, disposition or payment to the Finance Parties by any
Obligor or any other person liable being void, set aside or ordered to be refunded
pursuant to any enactment or law relating to bankruptcy, liquidation, administration or
insolvency or for any other reason whatsoever and if such condition shall not be
fulfilled the Finance Parties shall be entitled to enforce this Guarantee subsequently as
if such release, discharge or settlement had not occurred and any such payment had not
been made.
	 
	19.12	 	Guarantors to deliver up certain property
	 
	 	 	If,
contrary to clauses 19.3 (No security taken by Guarantors) or 19.4 (Interest), any
Guarantor takes or receives the benefit of any security or receives or recovers any money
or other property, such security, money or other property shall be held on trust for the
Finance Parties and shall be delivered to the Agent on demand.
	 
	19.13	 	Retention of this guarantee
	 
	 	 	The Finance Parties shall be entitled to retain this guarantee after as well as before
the payment or discharge of all the Guaranteed Liabilities for such period as the Agent
may reasonably determine.
	 
	19.14	 	Changes in constitution or reorganisations of Lenders
	 
	 	 	For the avoidance of doubt and without prejudice to the provisions of clause 23 (Changes
to the
Lenders), this guarantee shall remain binding on the Guarantors notwithstanding any
change in the constitution of the Finance Parties or any of them or their or its
absorption in, or amalgamation with, or the acquisition of all or part of their or its
undertaking or assets by, any other person, or any reconstruction or reorganisation of
any kind, to the intent that this guarantee shall remain valid and effective in all
respects in favour of any successor in title of the Lenders, the Mandated Lead Arrangers
and the Agent, any Substitute and any successor Agent appointed pursuant to clause 25.11
(Resignation of the Agent) in the same manner as if such successor in title, Substitute
or successor Agent had been named in this guarantee as a party instead of, or in addition
to, the relevant Lender or the relevant MLA or the Agent, as the case may be.
	 
	19.15	 	Other guarantors
	 
	 	 	Each Guarantor agrees to be bound by this guarantee notwithstanding that any other person
intended to execute or to be bound by any other guarantee or assurance under or pursuant
to this Agreement may not do so or may not be effectually bound and notwithstanding that
such

39

 

	 	other guarantee or assurance may be determined or be or become invalid or unenforceable
against any other person, whether or not the deficiency is known to the Finance Parties
or any of them.
	 
	  19.16	Interpretation
	 
	 	References in this clause 19 to “this guarantee” shall be construed as including
references to each separate or independent stipulation or agreement by the Guarantors
contained in this clause 19 (Guarantee and indemnity).

	  19.17	Acceding Guarantors

	19.17.1	 	The Ultimate Holding Company undertakes to procure that:

	 	(a)	 	the aggregate turnover, fixed and current assets and the
contribution to EBITDA of the Obligors at all times are equal to or more than 85
per cent, of the turnover, fixed and current assets and EBITDA of the Group
(excluding for the avoidance of doubt the turnover and fixed and current
assets of any Special Purpose Subsidiary), as determined by reference to the
latest financial statements of the Obligors and the Group delivered to the Agent
under clause 21.1.4 (Financial statements) provided that (i) no Special Purpose
Subsidiary shall be required to become an Obligor pursuant to this clause
19.17.1 (Guarantee and indemnity), and (ii) EBITDA shall be calculated in
accordance with the Testing Accounting Principles;
	 
	 	(b)	 	HoldCo and any of its Subsidiaries which are also Holding
Companies of the Original Borrower become Guarantors no later than the time at
which they become a Holding Company of the Original Borrower;
	 
	 	(c)	 	Intermediate HoldCo and any Holding Company of Intermediate
HoldCo which is also a Subsidiary of the Original Borrower become Guarantors no
later than the effective date of the Intermediate HoldCo Scheme;
	 
	 	(d)	 	each Group Member which is the holder of a Licence which is
material in the context of the business, assets or financial condition of the
Group (taken as a whole) is an Obligor; and
	 
	 	(e)	 	no Subsidiary of the Ultimate Holding Company which is not an
Obligor shall issue, or give any guarantee in respect of, any Debt Instrument in
a principal amount in excess of US$50,000,000 other than a Special Purpose
Subsidiary in respect of Non-Recourse Liabilities.

	19.17.2	 	The Ultimate Holding Company shall procure that any Group Member which may be required to
become an Obligor in order to comply with clause 19.17.1 enters into and delivers to the Agent
a Deed of Guarantor Accession together with the documents and evidence set out in Schedule 7
(Documents and evidence to be delivered by Acceding Guarantors) in form and substance
satisfactory to the Agent, in accordance with clauses 19.17.3, 19.17.4 or 19.17.6 as
appropriate.
	 
	19.17.3	 	Where a Group Member is required to become a Guarantor in order to comply with clause
19.17.1(a) or (d), the delivery to the Agent of the items referred to in clause 19.17.2 shall
be effected within thirty days of the date of delivery of financial statements pursuant to
clause 21.1.4 (Financial statements) demonstrating that the turnover, fixed and current assets
or contribution to EBITDA of the Obligors in aggregate fell below 85 per cent, of the
turnover, fixed and current assets or EBITDA of the Group or the relevant Group Member
becoming the holder of a relevant Licence (as the case may be).
	 
	19.17.4	 	Where a Group Member is required to become a Guarantor in order to comply with clause
19.17.1(e) the delivery to the Agent of the items referred to in clause 19.17.2 shall be
effected on or before the date on which such Subsidiary issues, or gives a guarantee in
respect of, the relevant Debt Instrument.
	 
	19.17.5	 	Where a Group Member is required to become a Guarantor in order to comply with clause
19.17.1(b) the delivery to the Agent of the items referred to in clause 19.17.2 shall be

40

 

     effected on or before the date on which such Group Member becomes a Holding Company of the
Original Borrower.

	19.17.6	 	Where a Group Member is required to become a Guarantor in order to comply with clause
19.17.1(c) the delivery to the Agent of the items referred to in clause 19.17.2 shall be
effected on or before the effective date of the Intermediate HoldCo Scheme.
	 
	19.17.7	 	The Agent may at the written request of the Ultimate Holding Company permit the extension of
any period referred to in clause 19.17.3 (Acceding Guarantors) for such further period as the
Agent shall consider appropriate (acting reasonably), where the Ultimate Holding Company
provides confirmation satisfactory to the Agent that, by virtue of either the need to comply
with legal requirements in one or more relevant jurisdiction(s), or the need to obtain consent
of a third party to the entry into the Deed of Guarantor Accession, the time period imposed in
clause 19.17.3 (Acceding Guarantors) cannot be complied with. At the same time as making any
such request, the Ultimate Holding Company shall submit to the Agent details of the relevant
legal requirements or requisite third party consent(s) together with details of the steps taken
and proposed, to comply with such requirement or to obtain such consent.
	 
	19.17.8	 	The Ultimate Holding Company may request the Agent in writing to, and the Agent, acting in
accordance with the instructions of the Majority Lenders, shall extend any of the periods
referred to in clauses 19.17.3, 19.17.4 and 19.17.6 (Acceding Guarantors).

	   19.18	 	 Additional Borrower

	19.18.1	 	If the Permitted Scheme has been effected by way of a Permitted HoldCo Scheme, the Original
Borrower may, by not less than 10 Banking Days’ prior written notice to the Agent, notify the
Agent (which shall promptly notify the Lenders) of its intention to request that HoldCo becomes an
Additional Borrower pursuant to this clause 19.18 (Additional Borrower). If the Permitted Scheme
has been effected by way of a Permitted Intermediate HoldCo Scheme, the Original Borrower may, by
not less than 10 Banking Days’ prior written notice to the Agent, notify the Agent (which shall
promptly notify the Lenders) of its intention to request that Intermediate HoldCo becomes an
Additional Borrower pursuant to this clause 19.18 (Additional Borrower).
HoldCo or Intermediate HoldCo (as the case may be) shall become an Additional Borrower if:

	 	(a)	 	HoldCo or Intermediate HoldCo (as the case may be) delivers to the Agent a duly
completed and executed Deed of Borrower Accession;
	 
	 	(b)	 	the Original Borrower confirms that no Default is continuing or would occur as a result
of HoldCo or Intermediate HoldCo (as the case may be) becoming an Additional Borrower; and
	 
	 	(c)	 	the Agent has received all of the documents and other evidence listed in Schedule 9
(Documents and evidence to be delivered by the Additional Borrower) in relation to the
Additional Borrower, each in form and substance satisfactory to the Agent.

	19.18.2	 	The Agent shall notify the Original Borrower 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 Schedule 9 (Documents and evidence to be delivered by the Additional Borrower).

41

 

	  19.19	 	Release of Guarantors

If any Guarantor which is a Subsidiary of the Original Borrower is no longer required to
be an Obligor in order to comply with clause 19.17.1 (Acceding
Guarantors) the Ultimate
Holding Company may by written notice to the Agent require that such Guarantor be
released from its obligations under this Agreement as a Guarantor. The Finance Parties
agree to execute such documentation as the relevant Guarantor may reasonably require to
effect its release as a Guarantor from the terms of this Agreement provided that the
Agent (acting reasonably) is satisfied that the obligations of the other Obligors under
this Agreement and of the parties to any Deed of Subordination will remain in full force
and effect notwithstanding such release and such other Obligors undertake to execute
such documentation as the Agent may reasonably require in connection therewith.

	  19.20	 	Resignation of a Borrower

	19.20.1	 	The Ultimate Holding Company may request that a Borrower (other than the Ultimate Holding
Company) ceases to be a Borrower by delivering to the Agent a Resignation Letter.
	 
	19.20.2	 	The Agent shall accept a Resignation Letter and notify the Ultimate Holding Company and the
Lenders of its acceptance if:

	 	(a)	 	no Default is continuing or would result from the acceptance of
the Resignation Letter (and the Ultimate Holding Company has confirmed this is
the case); and
	 
	 	(b)	 	the Borrower is under no actual or contingent financial
obligations as a Borrower under any Finance Documents;

whereupon that company shall cease to be a Borrower and shall have no further rights
or obligations as a Borrower under the Finance Documents. For the avoidance of
doubt, any resignation of a Group Member as a Borrower under this clause 19.20 shall
be without prejudice to the obligations of that Group Member (if any)
as a Guarnator.

	  19.21	 	“Know your customer” checks

	19.21.1	If: 	 

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

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

42

 

	19.21.2	 	Each Lender shall promptly upon the request of the Agent supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by the Agent (for
itself) in order for the Agent to carry out and be satisfied it has complied with all
necessary “know your customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.
	 
	19.21.3	 	The Ultimate Holding Company shall, by not less than 10
Banking Days’ prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) if a Group
Member is to become an Additional Guarantor pursuant to clause 19.17 (Acceding
Guarantors) or an Additional Borrower pursuant to clause 19.18 (Additional
Borrower).
	 
	19.21.4	 	Following the giving of any notice pursuant to clause 19.21.3 above, if the accession of
such Additional Obligor obliges the Agent or any Lender to comply with “know your
customer” or similar identification procedures in circumstances where the necessary
information is not already available to it, the Ultimate Holding Company shall promptly
upon the request of the Agent or any Lender supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Agent (for itself or
on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new
Lender) in order for the Agent or such Lender or any prospective new Lender to carry
out and be satisfied it has complied with the results of all necessary “know your
customer” or other similar checks under all applicable laws and regulations pursuant to
the accession of such Group Member to this Agreement as an Additional Obligor.

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SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	      20		Representations
	 
	   20.1	 	Representations and warranties
	 
	 	 	Each Obligor represents and warrants to each Finance Party (the Ultimate Holding
Company in respect of itself and its Subsidiaries, and each other Obligor in respect of
itself only) that:
	 
	20.1.1	 	Due incorporation of the Borrowers

	 
	 	 	each Borrower is duly incorporated and validly existing under the laws of England and
Wales as a limited liability company and has power to carry on its business as it is
now being conducted and to own its property and other assets;

	 
	20.1.2	 	Due incorporation of the Guarantors

	 
	 	 	each Guarantor is duly incorporated and validly existing under the laws of the
country of its incorporation as a limited liability company and has power to carry on
its business as it is now being conducted and to own its property and other assets;

	 
	20.1.3	 	Corporate power to borrow or guarantee

	 
	 	 	each Obligor has power to execute, deliver and perform its obligations under the
Finance Documents and each Group Member has power to execute, deliver and perform its
obligations under any Deed of Subordination to which it is a party and (in the case
of each Borrower) to borrow the Commitments; all necessary corporate, shareholder and
other action has been taken by each Obligor and each other relevant Group Member to
authorise the execution, delivery and performance of the same and no limitation on
the powers of any Obligor to borrow or give guarantees will be exceeded as a result
of borrowings under this Agreement or as a result of the giving of the guarantee
contained in this Agreement;

	 
	20.1.4	 	    Binding obligations
	 
	 	 	the Finance Documents and any Deed of Subordination constitute valid and legally
binding obligations of, in the case of the Finance Documents, each Obligor and, in
the case of any Deed of Subordination, each Group Member party thereto enforceable in
accordance with their respective terms to the extent permitted by applicable law;

	 
	20.1.5	 	No conflict with other obligations

	 
	 	 	the execution and delivery of, the performance of its obligations under, and
compliance with the provisions of, the Finance Documents and any Deed of Subordination
by, in the case of the Finance Documents, each Obligor and, in the case of any Deed of
Subordination, each Group Member party thereto will not (i) contravene, in any
material respect any existing applicable law, statute, rule or regulation or any
judgment, decree or permit to which such Obligor or Group Member is subject, (ii)
conflict with, or result in any breach of any of the terms of, or constitute a default
under, any agreement or other instrument to which such Obligor or Group Member is a
party or is subject or by which it or any of its property is bound, (iii) contravene
or conflict with any provision of such Obligor’s or Group Member’s Memorandum and
Articles of Association or equivalent constitutional documents or (iv) result in the
creation or imposition of or oblige any Obligor or any of its Subsidiaries to create
any Encumbrance on any of such Obligor’s or any of its Subsidiaries’, undertakings,
assets, rights or revenues;

	 
	20.1.6	 	Consents obtained

	 
	 	 	every consent, authorisation, licence or approval of, or registration with or
declaration to, governmental or public bodies or authorities or courts required by
each Obligor to authorise, or required in connection with, the execution, delivery,
validity, enforceability or admissibility

44

 

in evidence of the Finance Documents by each Obligor or any Deed of Subordination by
each Group Member party thereto or the performance by each Obligor of its respective
obligations under the Finance Documents or by each relevant Group Member of its
respective obligations under any Deed of Subordination to which it is a party, has
been obtained or made and is in full force and effect in all material respects and
there has been no default in the observance of the conditions or restrictions (if
any) imposed in, or in connection with, any of the same;

	20.1.7	 	No filings required

it is not necessary to ensure the legality, validity, enforceability or admissibility
in evidence of the Finance Documents and any Deed of Subordination that any such
document or any other instrument be notarised, filed, recorded, registered or
enrolled in any court, public office or elsewhere in any Relevant Jurisdiction or
that any stamp, registration or similar tax or charge be paid in any Relevant
Jurisdiction on or in relation to the Finance Documents or any Deed of Subordination
and the Finance Documents and any Deed of Subordination are in proper form for their
enforcement in the courts of each Relevant Jurisdiction;

	20.1.8	 	No litigation
	 
	 	 	save as set out in the Disclosure Letter, no litigation, arbitration or
administrative proceeding is:

	 	(a)	 	taking place; or
	 
	 	(b)	 	to the knowledge of the Executive Officers of each Obligor, pending or
threatened,

against such Obligor or, where such Obligor is the Ultimate Holding Company, such
Obligor or any of its Subsidiaries, and in any such case which is reasonably likely
to have a material adverse effect on the business, assets or financial condition of
the Group (taken as a whole);

	20.1.9	 	No Default
	 
	 	 	no Default has occurred and is continuing;

	 
	20.1.10	 	Financial statements of the Obligors correct and complete

	 	(a)	 	the audited financial statements of the Obligors (being in the
case of the Ultimate Holding Company the audited consolidated financial
statements of the Group) and the audited consolidated financial statements of
the Group, in respect of the financial year ended on 30 June 2004; and
	 
	 	(b)	 	the consolidated financial statements of the Group, in respect of
the Half-Yearly Period ended on 31 December 2003,

each as respectively delivered to the Agent, have been prepared in accordance with
the Original Accounting Principles which have been consistently applied and present
fairly and accurately the financial position of each Obligor and the consolidated
financial position of the Group respectively as at such dates, and the results of
the operations of each Obligor and the consolidated results of the operations of the
Group respectively for the financial year and Half-Yearly Period ended on such
dates. As at 30 June 2004 no Group Member had any liabilities (contingent or
otherwise) or any unrealised or unanticipated losses which are not disclosed by, or
reserved against or provided for in, such audited financial statements which would
have a material adverse effect on the financial position of the Group as set out in
such audited financial statements;

	20.1.11	 	No material adverse change

there has been no material adverse change in the financial position of the Obligors
or the consolidated financial position of the Group from that set forth in the
financial statements referred to in clause 20.1.10 (Financial statements of the
Obligors correct and complete) which would have a material adverse effect on the
ability of the Obligors (taken as a whole) to perform all or any of their
obligations under the Finance Documents;

45

 

	20.1.12	 	Information

to the best of its knowledge and belief, having made all reasonable and careful
enquiries all factual information prepared or approved by the Ultimate Holding
Company for the purposes of the Facility that has been made available to each
Mandated Lead Arranger, any Lender or potential Lender in connection with the
Facility was, on the date on which it was supplied, correct in all material respects
and does not contain any untrue statement of material fact or omit to state a
material fact necessary in order to make the statements contained therein not
misleading in light of the circumstances under which such statements were made;

	20.1.13	 	Choice of law

the choice by the Obligors of English law to govern this Agreement and the
submission by each relevant Guarantor to the exclusive jurisdiction of the English
courts are valid and binding;

	20.1.14	 	Deduction of Tax

as at the date of this Agreement, it is not required under the law of its
jurisdiction of incorporation to make any deduction for or on account of Tax from
any payment it may make under any Finance Document;

	20.1.15	 	Compliance with consents and licences

	 	(a)	 	every consent, authorisation, licence or approval required by any
Group Member (including the Licences and those required under or pursuant to any
Broadcasting Law) in connection with the conduct by any Group Member of its
business and the ownership, use, exploitation or occupation of its property and
assets has been obtained and is in full force and effect and there has been no
default in the observance of the conditions and restrictions (if any) imposed
in, or in connection with, any of the same (save in each case, where the failure
to obtain the same or maintain the same in full force and effect or such breach
(as the case may be) would not or is reasonably likely not to have a material
adverse effect on the business, assets or financial condition of the Group
(taken as a whole)); and
	 
	 	(b)	 	to the knowledge of the Executive Officers of the relevant
Obligor no circumstances have arisen whereby any remedial action is reasonably
likely to be required to be taken by, or at the expense of, such Group Member
under or pursuant to any law or regulation (including, without limitation, any
Broadcasting Law) applicable to the business, property or assets of the Group
(save in each case, where the failure to take such remedial action would not or
is reasonably likely to not have a material adverse effect on the business,
assets or financial condition of the Group (taken as a whole));

	20.1.16	 	Copyright matters

no Obligor has any knowledge, nor is it aware of any claim, that it or any of its
Subsidiaries is or may be liable to any person for any copyright infringement of any
nature whatsoever as a result of the operation of its business which liability would
or is reasonably likely to have a material adverse effect on the ability of the
Obligors and any other relevant Group Member (taken as a whole) to perform all or
any of their obligations under or otherwise to comply with the terms of the Finance
Documents and any Deed of Subordination to which any of them is a party;

	20.1.17	 	Broadcasting Laws

all Group Members comply in all material respects and have at all times so complied
with all applicable Broadcasting Laws save where the failure to do so would not have
a material adverse effect on the ability of the Obligors and any other relevant
Group Members (taken as a whole) to perform all or any of their obligations under
the Finance Documents and any Deed of Subordination to which any of them is a party;
and

46

 

	 20.2	 	  Repetition

The Repeating Representations are deemed to be made by each Obligor by reference to the
facts and circumstances then existing on:

	 	(a)	 	the date of each Utilisation Request and the first day of each Interest Period; and
	 
	 	(b)	 	in the case of an Additional Obligor, the day on which the company
becomes (or it is proposed that the company becomes) an Additional Obligor,

but so that the representation and warranty in clause 20.1.10 (Financial statements of
the Obligors correct and complete) shall for this purpose refer to the then latest
consolidated financial statements of the Group verified by the auditors of the Group (as
relevant), as if the reference to “Original Accounting Principles” were to the Reporting
Accounting Principles and delivered to the Agent under clause 21.1.4 (Financial
statements).

	 21	 	 General undertakings
	 
	 21.1	 	 Positive undertakings

Each Obligor undertakes with each of the Lenders and the Agent that, from the date
of this Agreement and so long as any moneys are owing under the Finance Documents and
while all or any part of the Commitments remains outstanding, it will:

	21.1.1	 	Notice of Default

promptly inform the Agent of any occurrence of which it becomes aware which is
reasonably likely to affect materially adversely its ability to perform its
obligations under the Finance Documents and of any Default forthwith upon becoming
aware thereof and (in the case of each Borrower), if so requested by the Agent,
confirm to the Agent in writing that, save as otherwise stated in such confirmation,
no Default has occurred and is continuing. For the purposes of this clause 21.1.1 an
Obligor shall be deemed to be aware of any matter if, (and only if) any of its
Executive Officers are aware of the same;

	21.1.2	 	Consents and licences

without
prejudice to clauses 5 (Conditions of Utilisation) and 20.1.11 (No material
adverse change):

	 	(a)	 	obtain or cause to be obtained, maintain in full force and effect
and comply in all material respects with the conditions and restrictions (if
any) imposed in, or in connection with, every consent, authorisation, licence
or approval of governmental or public bodies or authorities or courts necessary
or desirable under applicable law, save where failure to do so would not have a
material adverse effect on the due performance by the Obligors and any other
relevant Group Member (taken as a whole) of all or any of their obligations under
the Finance Documents and any Deed of Subordination to which any of them is a
party; and
	 
	 	(b)	 	do, or cause to be done, all other acts and things which may from
time to time be necessary or desirable under applicable law for the continued due
performance of all its or any of its Subsidiaries’ obligations under the Finance
Documents and any Deed of Subordination to which any of them is a party;

	21.1.3	 	 	Pari passu

ensure that its obligations under the Finance Documents shall, without prejudice to
the provisions of clause 21.2 (Negative undertakings), at all times rank at least
pari passu with all its other present and future unsecured and unsubordinated
Indebtedness, with the exception of any obligations which are mandatorily preferred
by law and not by contract;

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	21.1.4	 	Financial statements

	 	(a)	 	prepare, in the case of each Obligor other than the Ultimate
Holding Company, annual financial statements, and in the case of the Ultimate
Holding Company annual consolidated financial statements (consolidated at the
level of the Ultimate Holding Company) each in accordance with the Reporting
Accounting Principles, and cause the same to be reported on by their respective
auditors; and
	 
	 	(b)	 	(in the case of the Ultimate Holding Company) prepare unaudited
consolidated financial statements consolidated at the level of the Ultimate
Holding Company in respect of each Half-Yearly Period ending on 31 December in
any year on the same basis as the statements referred to in (a) above (for the
avoidance of doubt including a statement of Total Debt and reasonable details of
the calculation thereof (such calculation to be made in accordance with the
Testing Accounting Principles) so as to enable the Lenders to determine
compliance or otherwise with the undertakings contained in this Agreement and
including details of the outstanding amount of any Subordinated Loan); and
	 
	 	(c)	 	respectively deliver sufficient copies of the statements referred
to in (a) and (b) above to the Agent for distribution to all the Lenders as soon
as practicable but not later than 150 days (in the case of audited financial
statements) or 75 days (in the case of unaudited financial statements) after the
end of the financial period to which they respectively relate provided that if
the Agent shall not have received such financial statements within the relevant
period, it shall notify the Ultimate Holding Company accordingly,
whereupon the Ultimate Holding Company shall deliver such statements to the Agent
within three Banking Days of the date of notification;

	21.1.5	 	Delivery of reports

deliver to the Agent, for distribution to the Lenders, sufficient copies for all the
Lenders of each of the following documents, in each case at the time of issue thereof
or (in the case of the certificate referred to in clause 21.1.5(c)) together with the
financial statements prepared pursuant to clause 21.1.4 (Financial
statements) in
respect of the financial period to which such certificate relates:

	 	(a)	 	(in the case of the Ultimate Holding Company) every report,
circular, notice or like document which the Ultimate Holding Company is required
by law to send to its shareholders;
	 
	 	(b)	 	(in the case of each Obligor) every report, circular, notice or
like document issued by such Obligor to its creditors generally; and
	 
	 	(c)	 	(in the case of the Ultimate Holding Company, a Compliance
Certificate from the Chief Financial Officer or another director of the Ultimate
Holding Company stating that the Ultimate Holding Company as at the date of its
latest consolidated financial statements (whether audited or unaudited) and on
the basis of such statements, was in compliance with the covenants and
undertakings in clauses 19.17.1(a) (Acceding Guarantors) and
21.3 (Financial
undertakings) (or if it was not in compliance indicating the nature and extent of
the breach);

	21.1.6	 	Provision of further information

(in the case of the Ultimate Holding Company only) provide the Agent with such
financial and other information concerning the Ultimate Holding Company and its
Subsidiaries and their respective affairs as the Agent or any Lender (acting through
the Agent) may from time to time reasonably require and provide the Agent with
details of any proposed changes to the corporate structure of the Group either (i)
involving any Obligor and which are material in the context of the Facility or (ii)
which would result in the Ultimate Holding Company ceasing to be the Ultimate Holding
Company, at least 28 days prior to the same becoming effective;

	21.1.7	 	Insurance

48

 

(in the case of the Ultimate Holding Company only) insure or procure the
insurance of all its properties and fixed assets and procure that all the properties
and fixed assets of each of its Subsidiaries are insured, and take out or procure the
taking out of such other insurance, in all cases with underwriters or insurance
companies of repute, to such extent and against such risks as prudent companies
engaged in businesses similar to those of the Ultimate Holding Company or the relevant
Subsidiary (as the case may be), normally insure including, without limitation,
business interruption insurance;

	21.1.8	 	Compliance with laws and regulations

(in the case of the Ultimate Holding Company only) comply, and procure that its
Subsidiaries comply, in all material respects, with the terms and conditions of all
laws, regulations, agreements, licences and concessions necessary or desirable in
relation to the carrying on of its business (including, without limitation,
Broadcasting Laws) save where the failure so to do would not have a material adverse
effect on the ability of the Obligors and any other relevant Group Members (taken as
a whole) to perform all or any of their obligations under the Finance Documents and
any Deed of Subordination to which any of them is a party;

	21.1.9	 	Environmental matters

(in the case of the Ultimate Holding Company) comply, and procure that its
Subsidiaries comply, in all material respects with all material requirements of
Environmental Law applicable to the Ultimate Holding Company and its Subsidiaries to
the extent prudent in the context of the Ultimate Holding Company Group’s business
and without entailing excessive cost and promptly notify the Agent of any remedial
action required as a result of the enforcement of any Environmental Law, to be taken
by, or at the expense of, the Ultimate Holding Company, or any of its Subsidiaries
under or pursuant to any Environmental Law applicable to the business, property or
assets of the Ultimate Holding Company or any of its Subsidiaries, the cost of which
will exceed £5,000,000; and

	   21.2	 	Negative undertakings

Each Obligor undertakes with each of the Lenders and the Agent that, from the date of
this Agreement and so long as any moneys are owing under the Finance Documents and while
all or any part of the Commitments remains outstanding, without the prior written
consent of the Agent acting on the instructions of the Majority Lenders:

	21.2.1	 	    Negative pledge

it will not permit, and will procure that none of its Subsidiaries permits, any
Encumbrance to subsist, arise or be created or extended over all or any part of their
respective present or future undertakings, assets, rights or revenues to secure or
prefer any present or future Indebtedness of the Group or any other person, provided
that any Group Member may permit to subsist:

	 	    (a)	 	Encumbrances which secure Indebtedness in aggregate at any time
outstanding of not more than £50,000,000 (or its equivalent) over:

	 	(i)	 	assets acquired after the date of this Agreement or over
the assets of companies which become Group Members after such date, which,
in each case, were in existence before the date of acquisition of the asset
or Group Member concerned and were not created in contemplation of such
acquisition, provided that the amount secured by any such Encumbrance is
not increased and that such Encumbrances are not increased or extended to
other assets of any Group Member; and
	 
	 	(ii)	 	any asset or Investment acquired by any Group Member
after the date of this Agreement and created at the time of such
acquisition to secure payment of the purchase price of such asset or
Investment or to secure any Indebtedness incurred for the purpose of
financing such acquisition,

provided that (A) the Indebtedness so secured does not exceed the acquisition cost of such asset
or Investment, (B) such Encumbrances are not increased or extended to

49

 

other assets of any Group Member and (C) any such Encumbrance is released within
six months of the date of acquisition of the asset.

For the purposes of this paragraph “Investment” means the entire issued share
capital of any company or corporation or all of the assets, property or business
of any company or corporation or any assets that constitute a division or
operating unit of the business of any company or corporation;

	 	(b)	 	Encumbrances where the benefit of such Encumbrance or such other
Encumbrance as the Agent considers equivalent thereto is at the same time
extended equally and rateably to the obligations of the Obligors under this
Agreement to the satisfaction of the Agent;
	 
	 	(c)	 	Encumbrances by Group Members over assets the aggregate value of
which does not exceed £300,000,000 less (if the Group or any member of it has
effected any Permitted Securitisation) the value (without double-counting) of all
assets, loans, disposals and Encumbrances which form part of any Permitted
Securitisation, provided that for these purposes the value of an asset shall be
determined as at the time of the creation of the Encumbrance or the occurrence of
any relevant Permitted Securitisation;
	 
	 	(d)	 	Encumbrances by, or over the share capital of, a Special Purpose
Subsidiary in respect of Non-Recourse Liabilities of that Special Purpose
Subsidiary;
	 
	 	(e)	 	Encumbrances granted in favour of the Finance Parties (or any of
them) over any Cash Collateral Account; and
	 
	 	(f)	 	Encumbrances approved by the Agent (acting on the instructions of
the Majority Lenders);

	21.2.2	 	Disposals

save where such disposal is

	 	(a)	 	pursuant to a Permitted Securitisation;
	 
	 	(b)	 	the disposal of any interest of any Group Member in a Special Purpose Subsidiary;
or
	 
	 	(c)	 	the disposal by a Special Purpose Subsidiary of any of its
undertaking, assets, rights or revenues,

it will not and, in the case of the Ultimate Holding Company, will procure that no
Group Member will in any financial year lend any asset other than as permitted under
clause 21.2.3 (Loans and guarantees) or sell, transfer, or otherwise dispose of or
cease to exercise direct control over any part of its present or future undertaking,
assets, rights or revenues (whether by one or a series of transactions related or not
and other than in any such case to any Group Member (other than a Special Purpose
Subsidiary)), which:

	 	(A)	 	directly or indirectly generated 15 per cent, or more of (i) the
consolidated turnover for the Group for the previous financial year, or (ii)
EBITDA for the Group for the previous financial year, or
	 
	 	(B)	 	which represented 15 per cent, or more of fixed and current assets
of the Group as at the last day of the previous financial year,

all, if so requested by the Lenders, as separately certified by the Group’s auditors,
and in any event as shown in the consolidated audited financial statements of the
Group for the previous financial year delivered to the Agent under this Agreement,
but after having made such adjustments as may be appropriate in the opinion of the
Group’s auditors in order that all such amounts are calculated in accordance with the
Testing Accounting Principles;

	21.2.3	 	Loans and guarantees

it will not, and will procure that none of its Subsidiaries will:

50

 

	 	(a)	 	make any loans other than:

	 	(i)	 	the lending of cash or assets pursuant to any Permitted Securitisation,
	 
	 	(ii)	 	the lending of cash or assets to another Group Member other
than any Special Purpose Subsidiary provided that, in relation to any such
loan of an asset, the relevant loan shall be on a short-term basis renewable
only with the consent of the relevant lender; or
	 
	 	(iii)	 	a loan to any Obligor,

	 	(b)	 	grant any credit (save for normal trade credit in the ordinary course of
business), or
	 
	 	(c)	 	give any guarantee to or for the benefit of any person (other than
a guarantee relating solely to performance obligations of a Group Member other
than any Special Purpose Subsidiary),

if, on (and as at) the date upon which any such loan is made, such credit is granted
or such guarantee is given, the ratio of Net Debt (calculated in accordance with the
Testing Accounting Principles and taking into account the relevant loan, credit or
guarantee) to EBITDA (calculated in accordance with the Testing Accounting Principles
as the aggregate EBITDA for the two most recently preceding Half-Yearly Periods in
respect of which a Compliance Certificate has been delivered to the Agent in
accordance with clause 21.1.5(c) (Delivery of reports)) would exceed the ratio set
out in clause 21.3.1 (Net Debt: EBITDA) against the period during which such loan is
to be made, such credit is to be granted or such guarantee is to be given;

	21.2.4	 	Change in nature of business

it will not and will procure that none of its Subsidiaries makes any material change
to the nature or diversification of the businesses of the Group (taken as a whole)
from that of the businesses of (i) broadcasting (including the acquisition,
production and sale of programming content, entertainment, advertising, broadcasting
technology and data and interactive services) by any distribution means, (ii) any and
all media (including multimedia and the internet), (iii) sporting activities, (iv)
telecommunications and (v) installation of products associated with any of the
businesses referred to in (i) to (iv) above and (vi) other businesses related to the
businesses at (i) to (v) above;

	21.2.5	 	Indebtedness

it will not, and will procure that none of its Subsidiaries will, create, assume,
incur or otherwise permit to be outstanding any Indebtedness (other than:

	 	(a)	 	under this Agreement;
	 
	 	(b)	 	in respect of any Subordinated Loan,
	 
	 	(c)	 	in respect of Indebtedness provided by another Group Member; or
	 
	 	(d)	 	in respect of Indebtedness raised by a Special Purpose Subsidiary
in respect of its Non- Recourse Liabilities),

if, on (and as at) the date upon which such Indebtedness becomes outstanding the
ratio of Net Debt (calculated in accordance with the Testing Accounting Principles
and taking into account the relevant Indebtedness) to EBITDA (calculated in
accordance with the Testing Accounting Principles as the aggregate EBITDA for the two
most recently preceding Half-Yearly Periods in respect of which a Compliance
Certificate has been delivered to the Agent in accordance with clause 21.1.5(c)
(Delivery of reports) (and, if relevant, paragraph 12 of Schedule 2) (Conditions
precedent)) would exceed the ratio set out in clause 21.3.1
(Net Debt: EBITDA)
against the period during which such Indebtedness is to become outstanding unless:

51

 

	 	(i)	 	the Agent, (acting on the instructions of the Majority Lenders) has approved
the terms of such Indebtedness; or
	 
	 	(ii)	 	the provider of such Indebtedness and the relevant Group Member
have first entered into such subordination and priority arrangements in relation
to such Indebtedness as the Agent (acting on the instructions of the Majority
Lenders) may require and delivered to the Agent such evidence as it may
reasonably require that such arrangements are legal, valid and binding on such
provider and the relevant Group Member.

	   21.3	 	Financial undertakings
	 
	 	 	The Ultimate Holding Company undertakes with each Finance Party that, from the date
of this Agreement and so long as any moneys are owing under the Finance Documents and
while all or any part of the Commitments remain outstanding it will ensure that:

	 
	21.3.1	 	Net Debt: EBITDA
	 
	 	 	on the last day of each Half-Yearly Period of the Group commencing with the
Half-Yearly Period ending on 31 December 2004, the ratio of Net Debt (taking into
account the amount of any Utilisation due to be made or repaid on such day) to EBITDA
(EBITDA being calculated as the aggregate EBITDA for (x) such Half-Yearly Period and
(y) the immediately preceding Half-Yearly Period as determined in accordance with a
Compliance Certificate delivered to the Agent in accordance with 21.1.5(c) (Delivery
of reports)  (and, if relevant, paragraph 12 of Schedule 2) (Conditions precedent)),
does not exceed 3.00:1; and
	 
	21.3.2	 	Interest Cover
	 
	 	 	on the last day of each Half-Yearly Period of the Group commencing with the
Half-Yearly Period ending on 31 December 2004, the ratio of EBITDA to Consolidated
Interest Charges (calculated in each case as the aggregate amounts for (x) such
Half-Yearly Period and (y) the immediately preceding Half-Yearly Period as determined
in accordance with a Compliance Certificate delivered to the Agent in accordance with
clause 21.1.5(c) (Delivery of reports)  (and, if relevant, paragraph 12 of Schedule 2
(Conditions precedent)), shall not be less than 3.50:1.

	 
	   21.4	 	Auditors certificate
	 
	 	 	If at any time the Majority Lenders consider that any figure set out in any
Compliance Certificate is not correct, they shall be entitled within 30 days of the date
of the delivery of such Compliance Certificate to the Agent pursuant to clause 21.1.5
(Delivery of reports)  to require the Agent to notify the Ultimate Holding Company
accordingly. The Ultimate Holding Company and the Agent shall arrange to meet to discuss
such inaccuracy within 14 days of the date of such notification with a view to reviewing
the figures and remedying such inaccuracy. In the event that such inaccuracy is not
resolved to the satisfaction of the Majority Lenders or if no such meeting is held
within the specified 14 day period, the Agent may at any time after the date of such
meeting or, as the case may be, after the expiry of the said 14 day period call for a
certificate from the auditors of the Group as to such figure. For such purposes the
Group’s auditors shall act as independent experts and not as arbiters and every such
certificate shall be addressed to the Agent (on behalf of the Lenders) and be at the
expense of the Ultimate Holding Company. If the Majority Lenders call for such a
certificate, all calculations under this Agreement by reference to the relevant figure
shall (i) until the Group’s auditors deliver the relevant certificate under this clause
21.4 (Auditors certificate)  be made by reference to the figure set out in the relevant
Compliance Certificate delivered to the Agent under this Agreement and (ii) following
the delivery by the Group’s auditors of a certificate under this clause 21.4 (Auditors
certificate)  be made by reference to such certificate and the Ultimate Holding Company
undertakes forthwith to take all action, including, without limitation, the prepayment
of all or part of any Utilisation so as to procure that all action hereunder taken on
the basis of the relevant Compliance Certificate, which on the basis of such auditors
certificate is incorrect and would not have been permitted, is reversed.
	 
	   21.5	 	Testing Accounting Principles

52

 

	21.5.1	 	Each amount calculated in respect of the Financial Definitions pursuant to
clauses 21.3 (Financial undertakings) and 21.4 (Auditors certificate) shall be calculated in accordance with
the Testing Accounting Principles.
	 
	21.5.2	 	To the extent that the Ultimate Holding Company (or any other Group Member) adopts any
new accounting policy or changes the consistency of application of its accounting
principles
from the Original Accounting Principles, the Ultimate Holding Company shall notify the
Agent
and, if required by the Agent (acting on the instructions of the Majority Lenders) or
the
Ultimate Holding Company, the parties shall negotiate in good faith to amend clause
21.3
(Financial undertakings) and/or the Financial Definitions (or any of them) as required
by the
Agent in order for it to be able to make the same judgments as to the financial
performance
of the Group as it was able to make under the accounting policy or practice which
applied
immediately before the adoption of the revised policy or practice. If such
negotiations are
not concluded to the satisfaction of the Agent within 30 days, the Ultimate Holding
Company
agrees that it will either:

	 	(a)	 	provide financial statements prepared on the same basis as before; or
	 
	 	(b)	 	provide financial statements prepared under the revised policy or
practice but containing
a statement reconciling the treatment of such statements under the accounting
policy or
practice which applied before adoption of the revised policy or practice with the
treatment of such statements under the then current accounting policy in order
that the
Agent may make the same judgments as to the financial performance of the Group as
it
was able to make under the accounting policy or practice which applied
immediately
before the adoption of such revised policy or practice.

	 	 	 	If:

	 	(i)	 	the Ultimate Holding Company has agreed with the Agent
amendments to clause 21.3 (Financial undertakings) and/or the Financial
Definitions in accordance with this clause 21.5.2, then the Testing
Accounting Principles shall be the revised policy or practice adopted by
the Ultimate Holding Company which resulted in such agreement; or
	 
	 	(ii)	 	the Ultimate Holding Company has not agreed with the
Agent amendments to clause 21.3 (Financial undertakings)  and/or the
Financial Definitions in accordance with this clause 21.5.2, then the
Testing Accounting Principles shall be the Testing Accounting Principles
which applied before adoption of the revised policy or practice adopted by
the Ultimate Holding Company.

	  22	 	Events of
Default
	 
	22.1	 	Events of
default
	 
	 	 	Each of the events and circumstances set out below is an Event of Default (whether
or not caused by any reason outside the control of any Obligor):

	22.1.1	 	Non-payment: any Borrower fails to pay any sum due from it pursuant to the Finance
Documents in Sterling or the relevant Optional Currency, at the time and in the manner
stipulated in any relevant Finance Document except where the failure to pay any such sum is
due solely to technical or administrative delays in the transmission of funds and such sum is
paid in full within three Banking Days after the due date for payment; or
	 
	22.1.2	 	Breach of certain obligations: any Borrower or any Guarantor commits any breach of or
omits to observe any of the obligations or undertakings expressed to be assumed by it under
clauses 21.1.3 (Pari passu), 21.1.4 (Financial statements), 21.1.5(b) (Delivery of reports),
21.2 (Negative undertakings) or 21.3 (Financial undertakings); or
	 
	22.1.3	 	Breach of other obligations: any Group Member commits any breach of or omits to
observe any of the obligations or undertakings expressed to be assumed by it pursuant
to
the Finance Documents (other than breaches referred to in clauses 22.1.1 (Non-payment)
and 22.1.2 (Breach of certain obligations))  or any Subsidiary fails to become an
Acceding
Guarantor in accordance with clause 19.17 (Acceding Guarantors), and, in respect of
any

53

 

	 	 	such breach or omission which in the opinion of the Majority Lenders, acting
reasonably, is capable of remedy, such action as the Agent may require shall not have
been taken within 28 days of the Agent notifying the relevant Group Member of such
default and of such required action; or
	 
	22.1.4	 	Misrepresentation: any representation or warranty made or deemed to be made or
repeated by or in respect of any Obligor in or pursuant to this Agreement or in any notice,
certificate or statement referred to in or delivered under this Agreement is or proves to have
been incorrect or misleading in any material respect; or
	 
	22.1.5	 	Cross-default: any Indebtedness of any Group Member is not paid when due or within any
originally applicable grace period or becomes (whether by declaration or automatically in
accordance with the relevant agreement or instrument constituting the same) due and
payable prior to the date when it would otherwise have become due or any creditor of any
Group Member becomes entitled (other than a creditor who is entitled in accordance with the
original terms on which such Indebtedness was made available to demand immediate
repayment of such Indebtedness at any time) to declare any such Indebtedness due and
payable being, in any such case, an amount, or aggregate amount at any one time, of not
less than £25,000,000 when aggregated with any amount under any Hedging Arrangements
to which clause 22.1.6 (Hedging Default) applies provided that the non-payment of
Indebtedness due in respect of any Subordinated Loan for so long as the relevant Group
Member is prohibited from paying by virtue of any Deed of Subordination shall not constitute
an Event of Default under this clause 22.1.5; or
	 
	22.1.6	 	Hedging Default: any Group Member commits any breach or omits to observe any of its
obligations or undertakings expressed to be assumed by it under any Hedging Arrangements
of an amount or aggregate amount, at one time, of not less than £25,000,000 when
aggregated with any Indebtedness to which clause 22.1.5 (Cross default) applies which
breach or omission amounts to an event of default or an event entitling the relevant
counterparty to terminate such Hedging Arrangements (howsoever described); or
	 
	22.1.7	 	Legal process: (i) any judgment or order made against any Group Member is not stayed or
is not complied with within such period as may be designated in such judgment or order for
compliance, or if no period is so designated, within 14 days, or (ii) a creditor attaches or
takes possession of, or a distress, execution, sequestration or other process is levied or
enforced upon or sued out against, any of the undertakings, assets, rights or revenues of
any Group Member and is not discharged within 14 days and (in each case) the same is in
respect of claims in aggregate at any one time of not less than £15,000,000; or
	 
	22.1.8	 	Insolvency: any Group Member is deemed unable or admits inability to pay its debts as they
fall due pursuant to sections 123(1)(a), (b) or (e) or (2) of the Insolvency Act 1986; suspends
making payments on any of its debts or announces an intention to do so; becomes insolvent;
or suffers the declaration of a moratorium in respect of any of its indebtedness; or
	 
	22.1.9	 	Winding up: any corporate action, legal proceedings or other procedure or step is taken for
the purpose of winding up any Group Member (not being a petition which the Ultimate
Holding Company can demonstrate to the satisfaction of the Agent, by providing an
opinion
of leading counsel to that effect, is frivolous, vexatious or an abuse of the process
of the
court or relates to a claim to which such Group Member has a good defence and which
is
being vigorously contested by such Group Member) or an order is made or resolution
passed for the winding up of any Group Member or a notice is issued convening a
meeting
for the purpose of passing any such resolution other than (A) pursuant to a solvent
reorganisation previously approved in writing by the Majority Lenders, or (B) in
relation to the
solvent winding up of any Group Member other than any Obligor; or
	 
	22.1.10	 	Administration: any petition is presented, notice given or other step is taken for the
purpose
of the appointment of an administrator of any Group Member or any such petition or other
step is imminent or an administration order is made in relation to any Group Member; or
	 
	22.1.11	 	Appointment of receivers and managers: any administrative or other receiver is appointed
of any Group Member or any part of their respective assets and/or undertakings or any
other
steps are taken to enforce any Encumbrance over all or any part of the assets of any
Group
Member; or

54

 

	22.1.12	 	Compositions: other than pursuant to a Permitted Scheme, any corporate
action, legal
proceedings or other procedures or steps are taken, or negotiations commenced, by any
Group Member or by any of their respective creditors (other than the Finance Parties or any
Finance Party) with a view to proposing any kind of composition, compromise or
arrangement involving such company and its creditors generally; or
	 
	22.1.13	 	Analogous proceedings: there occurs, in relation to any Group Member, in any country or
territory in which any of them carries on business or to the jurisdiction of whose courts any
part of their respective assets is subject, any event which, in the reasonable opinion of the
Agent, appears in that country or territory to correspond with, or have an effect equivalent or
similar to, any of those mentioned in clauses 22.1.7 (Legal process) to 22.1.12
(Compositions) (inclusive) or any Group Member otherwise becomes subject, in any such
country or territory, to the operation of any law relating to insolvency, bankruptcy or
liquidation; or
	 
	22.1.14	 	Cessation of business: any Group Member suspends or ceases or threatens to suspend
or cease to carry on its respective business other than (A) pursuant to (i) a Permitted
Scheme or (ii) solvent reorganisation previously approved in writing by the Majority Lenders
or (B) in relation to the solvent winding up of any Group Member other than any Obligor; or
	 
	22.1.15	 	Seizure: all or a material part of the undertakings, assets, rights or revenues of, or shares or
other ownership interests in, any Group Member are seized, nationalised, expropriated or
compulsorily acquired by or under the authority of any government; or
	 
	22.1.16	 	Unlawfulness: it becomes unlawful at any time for any Group Member to perform all or any
of its obligations under the Finance Documents or any Deed of Subordination to which it is a
party; or
	 
	22.1.17	 	Repudiation: any Obligor repudiates any Finance Document, or any relevant Group
Member repudiates any Deed of Subordination to which it is a party, or, in the case of an
Obligor, does or causes or permits to be done any act or thing evidencing an intention to
repudiate any Finance Document or, in the case of any relevant Group Member, any Deed of
Subordination to which it is a party; or
	 
	22.1.18	 	Obligations of any Guarantor ceasing to be effective: save to the extent set out in the
qualifications to any legal opinion delivered to the Agent in accordance with clause
5.1 (Initial conditions precedent) or clause 19.17 (Acceding Guarantors), the
obligations of any Guarantor under the Finance Documents become invalid, ineffective
or unenforceable for any reason and such Guarantor is not replaced in accordance
with clause 19.17 (Acceding Guarantors) to ensure on-going compliance with, inter
alia, clause 19.17.1; or
	 
	22.1.19	 	Licences: any of the Licences are not granted or are suspended, revoked, cancelled,
withdrawn, terminated, expired and are not renewed or otherwise cease to be in full
force
and effect, which event or circumstance would have a material adverse effect on the
ability
of the Obligors and any other relevant Group Member (taken as a whole) to perform all
or
any of their obligations under the Finance Documents and any Deed of Subordination to
which any of them is a party,
	 
	 	 	provided that there shall not be an Event of Default solely by reason of (A) any of
the events or circumstances described in clause 22.1.5 (Cross-default), 22.1.6
(Hedging Default), 22.1.7 (Legal process), 22.1.8
(Insolvency), 22.1.9 (Winding up), 22.1.10
(Administration), 22.1.11 (Appointment of receivers and managers), 22.1.12
(Compositions), 22.1.13 (Analogous proceedings), 22.1.14 (Cessation of business)  or
22.1.15 (Seizure) taking place with respect to (i) a Special Purpose Subsidiary or
(ii) any other Subsidiary of the Ultimate Holding Company which is not an Obligor
unless (in the case of (ii) only), in the reasonable opinion of the Majority
Lenders, the ability of the Obligors and any other relevant Group Member (taken as a
whole) to perform all or any of their respective obligations under, or otherwise to
comply in all material respects with the terms of, the Finance Documents and any
Deed of Subordination to which any of them is a party, shall be materially and
adversely affected or (B) the enforcement of any Encumbrance over the share capital
of a Special Purpose Subsidiary.
	 
	  22.2	   Acceleration

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	 	 	The Agent may and if so requested by the Majority Lenders shall, without prejudice to any
other rights of the Lenders, at any time after the happening of an Event of Default so
long as the same is continuing by notice to the Ultimate Holding Company declare that:
	 
	22.2.1	 	the obligation of each Lender to make its Commitment available shall be terminated,
whereupon the Commitments shall be reduced to zero forthwith; and/or
	 
	22.2.2	 	declare that full cash cover in respect of each Letter of Credit is immediately due and
payable, whereupon it shall become immediately due and payable; and/or
	 
	22.2.3	 	all outstanding Utilisations and all interest, fees and commitment commission accrued and all
other sums payable under the Finance Documents have become immediately due and
payable or have become due and payable on demand, whereupon the same shall,
immediately or in accordance with the terms of such notice, become so due and payable.
	 
	22.3	   
Demand basis
	 
	 	 	If, pursuant to clause 22.2 (Acceleration), the Agent declares all outstanding
Utilisations to be due and payable on demand then, at any time thereafter, the Agent may
(and, if so instructed by the Majority Lenders, shall) by written notice to the Ultimate
Holding Company (i) call for repayment of the Loans and the discharge of the LC
Liabilities on such date as may be specified in such notice (provided that any such date
so specified shall not be a date earlier than the date of such notice) whereupon the
Loans and the LC Liabilities shall become due and payable (and/or as appropriate, due
for discharge) on the date so specified together with all interest and commitment
commission accrued and all other sums payable under the Finance Documents or (ii)
withdraw such declaration with effect from the date specified in such notice.

SECTION 9

CHANGES TO PARTIES

	23	   
Changes to the Lenders
	 
	23.1	   
Assignments and transfers by the Lenders
	 
	 	 	Subject to this clause 23 (Changes to Lenders), a
Lender (the “Existing Lender”) may:

	 	(a)	 	assign any of its rights; or
	 
	 	(b)	 	transfer by novation any of its rights and
obligations,

	 
	 	to another bank or financial institution (the “New
Lender”).

	23.2	   
Conditions of assignment or transfer
	 
	23.2.1	 	The consent of the Ultimate Holding Company is required for transfer or assignment by a
Lender, unless the transfer or assignment is to an Affiliate of a Lender, or is made following
the occurrence of an Event of Default.
	 
	23.2.2	 	The consent of the Ultimate Holding Company to an assignment or transfer must not be
unreasonably withheld or delayed where the proposed New Lender is a Qualifying Lender.
The Ultimate Holding Company will be deemed to have given its consent five Banking Days
after the Lender has requested it unless consent is expressly refused by the Ultimate
Holding Company within that time.
	 
	23.2.3	 	The consent of the Ultimate Holding Company to an assignment or transfer must not be
withheld solely because the assignment or transfer may result in an increase to the
Mandatory Cost.
	 
	23.2.4	 	An assignment will only be effective on receipt by the Agent of written confirmation from the
New Lender (in form and substance satisfactory to the Agent) that the New Lender will

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	 	 	assume the same obligations to the other Finance Parties as it would have been
under if it was an Original Lender.
	 
	23.2.5	 	A transfer will only be effective if the procedure set out in clause 23.5 (Procedure for
transfer)
is complied with.
	 
	23.2.6	 	 

	 	(a)	 	Any transfer by an Existing Lender to a New Lender shall only be effective
if it transfers
the Existing Lender’s share of the Facility.
	 
	 	(b)	 	Any transfer by an Existing Lender to a New Lender of part of its
rights or obligations
under this Agreement shall be of at least £5,000,000.
	 
	 	(c)	 	Where an Existing Lender transfers part of its rights and
obligations pursuant to clause
23.5 (Procedure for transfer), that Existing Lender must transfer equal fractions
of its
Commitment and participation in the Utilisations (if any) under the Facility.
	 
	 	(d)	 	If at the time when a transfer takes effect more than one
Utilisation is outstanding under
the Facility, the transfer of an Existing Lender’s participation shall take effect in respect
of the same fraction of each such Utilisation.

	23.2.7	 	If:

	 	(a)	 	a Lender assigns or transfers any of its rights or obligations
under this Agreement or
changes its Facility Office; and
	 
	 	(b)	 	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),
	 
	 	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.

	 
	23.3	  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 £1,000.

	 
	23.4	  Limitation of responsibility of Existing Lenders
	 
	23.4.1	 	Unless expressly agreed to the contrary, an Existing Lender makes no representation
or warranty and assumes no responsibility to a New Lender for:

	 	(a)	 	the legality, validity, effectiveness, adequacy or enforceability
of the Finance Documents or any other documents;
	 
	 	(b)	 	the financial condition of any Obligor and its related entities;
	 
	 	(c)	 	the performance and observance by any Obligor of its obligations
under the Finance Documents or any other documents; or
	 
	 	(d)	 	the accuracy of any statements (whether written or oral) made in or
in connection with any Finance Document or any other document,
	 
	 	and any representations or warranties implied by law are excluded.

	23.4.2	 	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

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

	23.4.3	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(a)	 	accept a re-transfer from a New Lender of any of the rights and
obligations assigned or
transferred under this clause 23; or
	 
	 	(b)	 	support any losses directly or indirectly incurred by the New
Lender by reason of the
non-performance by any Obligor of its obligations under the Finance Documents or
otherwise.

	23.5	  Procedure for transfer

	 
	23.5.1	 	Subject to the conditions set out in clause 23.2
(Conditions of assignment or transfer) a
transfer is effected in accordance with clause 23.5.2 when the Agent executes an otherwise
duly completed Transfer Certificate delivered to it by the Existing Lender and the New
Lender. 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.
	 
	23.5.2	 	On the Transfer Date:

	 	(a)	 	to the extent that in the Transfer Certificate the Existing Lender
seeks to transfer by
novation its rights and obligations under this Agreement each of the Obligors and
the
Existing Lender shall be released from further obligations towards one another
under
this Agreement and their respective rights against one another shall be cancelled
(being
the “Discharged Rights and Obligations”);
	 
	 	(b)	 	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;
	 
	 	(c)	 	the Agent, the Mandated Lead Arrangers, the New Lender and other
Lenders 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 Mandated Lead Arrangers and the Existing Lender shall
each
be released from further obligations to each other under this Agreement; and
	 
	 	(d)	 	the New Lender shall become a Party as a “Lender”.

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

58

 

	 	(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 clauses 23.5.3(a) and (b), the person to
whom the information is to be given has entered into a confidentiality undertaking in a
form reasonably acceptable to the Ultimate Holding Company and the Agent.

	24	 	Changes to the Obligors

	   	 	No Obligor may assign any of its rights or transfer any of its rights or obligations
under this Agreement.

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SECTION 10 

THE FINANCE PARTIES

	25	  Role of the Agent and the Mandated Lead Arrangers
	 
	25.1	  Appointment of the Agent
	 
	25.1.1	 	Each Finance Party appoints the Agent to act as its agent under and in connection with the
Finance Documents.
	 
	25.1.2	 	Each Finance Party authorises the Agent to exercise the
rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance
Documents together with any other incidental rights, powers, authorities and discretions.
	 
	25.2	  Duties of the Agent
	 
	25.2.1	 	The Agent shall promptly forward to the Lenders a copy of any claim received under a Letter
of Credit and to a Party the original or a copy of any document which is delivered to the
Agent for that Party by any other Party.
	 
	25.2.2	 	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 other
Finance Parties.
	 
	25.2.3	 	The Agent shall promptly notify the other Finance Parties of any Default arising under clause 22.1.1 (Non-payment).
	 
	25.2.4	 	The Agent’s duties under the Finance Documents are solely mechanical and administrative
in nature.
	 
	25.3	  Role of the Mandated Lead Arrangers
	 
	 	Except as specifically provided in the Finance Documents, no MLA has any obligations
of any kind to any other Party under or in connection with any Finance Document.

	25.4	  No fiduciary duties
	 
	25.4.1	 	Nothing in this Agreement constitutes the Agent or any MLA as a trustee or fiduciary of any
other person.
	 
	25.4.2	 	Neither the Agent nor any MLA shall be bound to account to any Finance Party for any sum
or the profit element of any sum received by it for its own account.
	 
	25.5	  Business with the Group
	 
	 	The Agent and the Mandated Lead Arrangers may accept deposits from, lend money to
and generally engage in any kind of banking or other business with any member of the Group.

	 
	25.6	 Rights and discretions of the Agent
	 
	25.6.1	 	The Agent may rely on:

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

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	25.6.2	 	The Agent may assume (unless it has received notice to the contrary in its
capacity as agent for the Lenders or, as the case may be, trustee for the Finance Parties) that:

	 	(a)	 	no Default has occurred (unless it has actual knowledge of a
Default arising under clause 22.1.1 (Non-payment));
	 
	 	(b)	 	any right, power, authority or discretion vested in any Party or
the Majority Lenders has not been exercised; and
	 
	 	(c)	 	any notice or request made by the Ultimate Holding Company (other
than a Utilisation
Request) is made on behalf of and with the consent and knowledge of all the
Obligors.

	25.6.3	 	The Agent may engage, pay for and rely on the advice or services of any lawyers,
accountants, surveyors or other experts.
	 
	25.6.4	 	The Agent may act in relation to the Finance Documents through its personnel and agents.
	 
	25.7	  Instructions to Agent
	 
	25.7.1	 	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.
	 
	25.7.2	 	Unless a contrary indication appears in a Finance Document, any instructions given to the
Agent by the Majority Lenders will be binding on all the Finance Parties.
	 
	25.7.3	 	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.
	 
	25.7.4	 	In the absence of instructions from, in the case of the Agent, 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. The Ultimate Holding Company and all other Obligors
shall not be concerned with whether the Agent shall be acting in accordance with this
provision and shall be conclusively entitled to assume that the Agent has all the necessary
right, title and authority.
	 
	25.7.5	 	The Agent is not authorised to act on behalf of a Finance Party (without first obtaining that
Finance Party’s consent) in any legal or arbitration proceedings relating to any Finance
Document.
	 
	25.7.6	 	Each Obligor shall be entitled (and bound) to assume that any directions given by the Agent
or pursuant to this Agreement are either the directions of the Majority Lenders or, as the
case may be, the Lenders, being made through the Agent, or the directions of the Agent
itself, acting pursuant to the provisions of the Finance Documents to which the Agent may
from time to time be party (as appropriate) or as otherwise duly authorised or empowered by
or on behalf of the Lenders.
	 
	25.8	  Responsibility for documentation
	 
	 	  Neither the Agent nor any MLA:
	 
	25.8.1	 	is responsible for the adequacy, accuracy and/or completeness of any information (whether
oral or written) supplied by the Agent, any MLA, an Obligor or any other person given in or in
connection with any Finance Document; or
	 
	25.8.2	 	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.

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	25.9	 	Exclusion of liability
	 
	25.9.1	 	 	Without limiting clause 25.9.2, the Agent will not be liable for any action taken by it
under or
in connection with any Finance Document, unless directly caused by its gross negligence or
wilful misconduct.
	 
	25.9.2	 	 	No Party may take any proceedings against any officer, employee or agent of the Agent in
respect of any claim it might have against the Agent or in respect of any act or
omission of
any kind by that officer, employee or agent in relation to any Finance Document and
any
officer, employee or agent of the Agent may rely on this clause 25.9.2.
	 
	 	 	 	Any third party referred to in this clause 25.9.2 may enjoy the benefit and enforce
the terms of this clause 25.9.2 in accordance with the provisions of the Contracts
(Rights of Third Parties) Act 1999.
	 
	25.9.3	 	 	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 it
has taken all necessary steps as soon as reasonably practicable to comply with the
regulations or operating procedures of any recognised clearing or settlement system used by
it for that purpose.
	 
	25.10	 	Lenders’ indemnity to the Agent
	 
	25.10.1	 	 	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 Banking 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 pursuant to a Finance Document).
	 
	25.10.2	 	 	Each Obligor shall counter-indemnify the Lenders against all payments made by them under
this clause 25.10.
	 
	25.11	 	Resignation of the Agent
	 
	25.11.1	 	 	The Agent may resign and appoint one of its Affiliates acting through an office in London
as
successor by giving notice to the other Finance Parties and the Ultimate Holding Company.
	 
	25.11.2	 	 	Alternatively the Agent may resign by giving notice to the other Finance Parties and the
Ultimate Holding Company, in which case the Majority Lenders (after consultation with the
Ultimate Holding Company) may appoint a successor Agent, as the case may be.
	 
	25.11.3	 	 	If the Majority Lenders have not appointed a successor Agent
in accordance with clause 25.11.2 within 30 days after notice of resignation was given, the Agent, as the case may be,
(after consultation with the Ultimate Holding Company) may appoint a successor Agent
(acting through an office in London).
	 
	25.11.4	 	 	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.
	 
	25.11.5	 	 	The resignation notice of the Agent shall only take effect upon the appointment of a
successor.
	 
	25.11.6	 	 	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 25 (Role of the Agent and the Mandated Lead Arrangers).  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.

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	25.11.7	 	 	After consultation with the Ultimate Holding Company, the Majority Lenders may, by notice
to
the Agent, require it to resign in accordance with clause 25.11.2. In this event, the
Agent (as the case may be) shall resign in accordance with clause 25.11.2.
	 
	25.12	 	Confidentiality
	 
	25.12.1	 	 	In acting as agent for the Finance Parties, the Agent shall be regarded as acting
through its
agency or loan administration division which shall be treated as a separate entity
from any
other of its divisions or departments.
	 
	25.12.2	 	 	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.
	 
	25.12.3	 	 	Notwithstanding any other provision of any Finance Document to the contrary, neither the
Agent nor any MLA 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.
	 
	25.13	 	Relationship with the Lenders
	 
	25.13.1	 	 	The Agent may treat each Lender as a Lender, entitled to payments under the Finance
Documents and acting through its Facility Office unless the Agent has received not less than
five Banking Days prior notice from that Lender to the contrary in accordance with the terms
of this Agreement.
	 
	25.13.2	 	 	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).
	 
	25.14	 	Credit appraisal by the Lenders

	 
	 	 	Without affecting the responsibility of any Obligor for information supplied by
it or on its behalf in connection with any Finance Document, each Finance Party
confirms to the Agent and the Mandated Lead Arrangers 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:
	 
	25.14.1	 	 	the financial condition, status and nature of each member of the Group;
	 
	25.14.2	 	 	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;
	 
	25.14.3	 	 	whether that Lender has recourse, and the nature and extent of that recourse, against any
Party or any of its respective assets under or in connection with any Finance
Document, the
transactions contemplated by the Finance Documents or any other agreement,
arrangement
or document entered into, made or executed in anticipation of, under or in connection
with
any Finance Document; and
	 
	25.14.4	 	 	the adequacy, accuracy and/or completeness of 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.
	 
	25.15	 	Lenders’ tax status confirmation
	 
	 	 	Each Lender confirms in favour of the Agent and the Ultimate Holding Company on
the date of this Agreement or, in the case of a Lender which becomes a Party pursuant
to a transfer or assignment, on the date on which the relevant transfer or assignment
becomes effective that it is a Qualifying Lender (and undertakes to notify the Agent
and the Ultimate Holding Company to the extent that it is a Treaty Lender), and each
Lender shall promptly notify the Agent and the Ultimate Holding Company if there is any
change in its position from that set out above.

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	25.16	 	Reference Bank
	 
	 	 	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
Ultimate Holding Company) appoint another Lender or an Affiliate of a Lender to replace
that Reference Bank.
	 
	25.17	 	Compliance
	 
	 	 	The Agent may refrain from doing anything which might, in its reasonable opinion,
constitute a breach of any law or regulation or be otherwise actionable at the suit of
any person, and may do anything which, in its opinion, is necessary or desirable to
comply with any law or regulation of any jurisdiction.
	 
	25.18	 	Agent’s management time
	 
	 	 	Any amount payable to the Agent under clause 16.3 (Indemnity to the Agent), clause
18 (Costs and expenses) and clause 25.10 (Lenders’ indemnity to the Agent) shall include
the cost of utilising the Agent’s management time or other resources, and will be
calculated on the basis of such reasonable daily or hourly rates as the Agent may notify
to the Ultimate Holding Company and the Lenders, and is in addition to any fee paid or
payable to the Agent pursuant to clause 13 (Fees).
	 
	26	 	Conduct of business by the Finance Parties
	 
	 	 	No provision of this Agreement will:
	 
	26.1.1	 	 	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in
whatever manner it thinks fit;
	 
	26.1.2	 	 	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
	 
	26.1.3	 	 	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise)
or any computations in respect of Tax.
	 
	27	 	Sharing among the Finance Parties
	 
	27.1	 	Payments to Finance Parties
	 
	 	 	If a Finance Party (a “Recovering
Lender”) receives or recovers any amount from an
Obligor other than in accordance with clause 28 (Payment mechanics) and applies that
amount to a payment due under the Finance Documents then:
	 
	27.1.1	 	 	the Recovering Lender shall, within three Banking Days, notify details of the receipt or
recovery to the Agent;
	 
	27.1.2	 	 	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 28 (Payment mechanics),
without taking account of any Tax which would be imposed on the Agent in relation to the
receipt, recovery or distribution; and
	 
	27.1.3	 	 	the Recovering Lender shall, within three Banking 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 Lender as its share of any
payment to be made, in accordance with clause 28.5 (Partial payments).
	 
	27.2	 	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 28.5 (Partial payments).

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	27.3	   
Recovering Lender’s rights
	 
	27.3.1	 	On a distribution by the Agent under clause 27.2 (Redistribution of payments), the
Recovering Lender will be subrogated to the rights of the Finance Parties which have
shared
in the redistribution.
	 
	27.3.2	 	If and to the extent that the Recovering Lender is not able to rely on its rights under
clause 27.3.1, the relevant Obligor shall be liable to the Recovering Lender for a debt equal to the
Sharing Payment which is immediately due and payable.
	 
	 
	27.4	   
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:

	 
	27.4.1	 	each Finance Party which has received a share of the relevant Sharing Payment pursuant to
clause 27.2 (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 an 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
	 
	27.4.2	 	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 Finance Party for the
amount so reimbursed.
	 
	27.5	   
Exceptions
	 
	27.5.1	 	This clause 27 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.
	 
	27.5.2	 	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:

	 	(a)	 	it notified the other Lenders of the legal or arbitration proceedings; and
	 
	 	(b)	 	the other Lenders 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.

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SECTION 11

ADMINISTRATION

	28	 	Payment mechanics
	 
	28.1	 	Payments to the Agent
	 
	28.1.1	 	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.

	 
	28.1.2	 	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.

	 
	28.2	 	Distributions by the Agent
	 
	 	 	Each payment received by the Agent under the Finance Documents for another Party shall,
subject to clause 28.3 (Distributions to an Obligor) and clause 28.4 (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 Banking 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).
	 
	28.3	 	Distributions to an Obligor
	 
	 	 	The Agent may (with the consent of the Obligor or in accordance with clause 29
(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.
	 
	28.4	 	Clawback
	 
	28.4.1	 	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.

	 
	28.4.2	 	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.

	 
	28.5	 	Partial payments
	 
	28.5.1	 	If the Agent receives a payment that is insufficient to discharge all the amounts then due
and
payable by an Obligor under the Finance Documents, the Agent shall apply that payment
towards the obligations of that Obligor under the Finance Documents in the following
order:

	 	(a)	 	first, in or towards payment pro-rata of any unpaid fees, costs and
expenses (ignoring
any fees payable under clause 13 (Fees)) of the Agent or the Mandated Lead
Arrangers
under the Finance Documents;
	 
	 	(b)	 	secondly, in or towards payment to the Lenders pro-rata of any
amount owing to the
Lenders under clause 25.10 (Lenders’ indemnity to the Agent);

66

 

	 	 	(c)	 	 	thirdly, in or towards payment to the Mandated Lead Arrangers of any
portion of the arrangement fee payable under clause 13 (Fees) which is due but unpaid;
	 
	 	 	(d)	 	 	fourthly, in or towards payment to the Agent of any portion of the
agency fee payable
under clause 13 (Fees) which is due but unpaid;
	 
	 	 	(e)	 	 	fifthly, in or towards payment to the Lenders pro-rata of any
accrued commitment
commission or letter of credit fees payable under clause 13
(Fees) which are due
but
unpaid;
	 
	 	 	(f)	 	 	sixthly, in or towards payment to the Lenders pro-rata of any
accrued interest and
guarantee and fronting fees relating to Letters of Credit and which are due but
unpaid
but so that any amount payable by virtue of clause 14 (Tax gross up and
indemnities)
shall be excluded;
	 
	 	 	(g)	 	 	seventhly, in or towards payment to the Lenders pro-rata of any
principal including LC
Liabilities which is due but unpaid;
	 
	 	 	(h)	 	 	eighthly, in or towards payment to the relevant Lenders pro-rata
of any amount payable to those Lenders by virtue of clause 14 (Tax gross up and
indemnities) which is unpaid; and
	 
	 	 	(i)	 	 	ninthly,  in or towards payment pro-rata of any other sum due but
unpaid under the Finance Documents.

	 	 	 	Each reference in clause 28.5.1(a) to (e) (inclusive) to a category of unpaid sums
shall include interest on those sums payable in accordance with this Agreement
(including, without limitation, default interest). Accordingly, clause 28.5.1(f)
refers to interest on principal and accrued interest on those sums which remain
unpaid to the extent due.

	28.5.2	 	 	 	The Agent shall, if so directed by the Majority Lenders, vary
the order set out in clause 28.5.1(e) to (i) above.
	 
	28.5.3	 	 	 	Clauses 28.5.1 and 28.5.2 will override any appropriation made by an Obligor.

	 
	 28.6	 	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.
	 
	28.7	 	Banking Days

	28.7.1	 	 	 	Any payment which is due to be made on a day that is not a Banking Day shall be made on
the next Banking Day in the same calendar month (if there is one) or the preceding Banking
Day (if there is not).
	 
	28.7.2	 	 	 	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.

	28.8	 	Currency of account

	28.8.1	 	 	 	Subject to clauses 28.8.2 to 28.8.5 below, the Base Currency is the currency of account and
payment for any sum due from an Obligor under any Finance Document.
	 
	28.8.2	 	 	 	A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid Sum shall be
made in the currency in which that Utilisation or Unpaid Sum is denominated on its due date.
	 
	28.8.3	 	 	 	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.
	 
	28.8.4	 	 	 	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which
the costs, expenses or Taxes are incurred.

67

 

	28.8.5	 	Any amount expressed to be payable in a currency other than the Base Currency shall be
paid in that other currency.
	 
	28.9	 	Change of currency

	28.9.1	 	 	Unless otherwise prohibited by law, if more than one currency or currency unit are at the
same time recognised by the central bank of any country as the lawful currency of
that
country, then:

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

	28.9.2	 	 	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 Ultimate Holding Company)
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.

	28.10	 Cash Collateral Accounts

	28.10.1	 	 	Each amount from time to time standing to the credit of a Cash Collateral Account
shall be
applied in accordance with the relevant provisions of the Finance Documents
(including
clauses 28.10.3(b)) and no other withdrawals may be made from any Cash Collateral
Account without the consent of the Agent.
	 
	28.10.2	 	 	The Ultimate Holding Company shall, or shall procure that any other member of the Group
shall, execute such further documents as are necessary to ensure that each Cash
Collateral
Account is charged in favour of the Agent or other relevant Finance Party (as
relevant) to the
satisfaction of the Agent acting reasonably.
	 
	28.10.3	 	 

	 	 	(a)	 	Each amount from time to time standing to the credit of a Cash
Collateral Account shall
bear interest by reference to successive deposit periods at the rate at which the
Agent
or other relevant Finance Party (as relevant) pays interest on deposits for such
period
from its corporate customers but each Borrower acknowledges that none of the
Finance
Parties shall have any responsibility to any Borrower for any loss occasioned as
a
consequence of the application of the amount standing to the credit of any Cash
Collateral Account prior to the last day of any such deposit period, such
application
being expressly permitted by the terms of the Finance Documents other than in the
case of their negligence, wilful default or misconduct.
	 
	 	 	(b)	 	In respect of each Cash Collateral Account, provided no Default
shall have occurred
and be continuing, the Agent or other relevant Finance Party (as relevant) shall,
at the
request of the relevant Borrower, pay to that Borrower any interest that has
accrued on
the amount standing to the credit of such Cash Collateral Account. Such interest
shall
only be paid at six-monthly intervals or on such days that the principal amount
standing
to the credit of such Cash Collateral Account is reduced to zero pursuant to the
terms of
this Agreement.
	 29	Set-off
	 
	 	A Finance Party may set off any matured obligation due from an Obligor under the
Finance Documents (to the extent beneficially owned by that Finance Party) against any
matured obligation owed by that Finance Party to that Obligor, regardless of the place
of payment, booking branch or currency of either obligation. If the obligations are in
different currencies, 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.

68

 

	30	 	Notices
	 
	30.1	 	Communications in writing
	 
	 	 	 	Any communication to be made under or in connection with the Finance Documents
shall be made in writing and, unless otherwise stated, may be made by fax or letter.
	 
	30.2	 	Addresses

	 	 	 	The address and fax number (and the department or officer, if any, for whose
attention the communication is to be made) of each Party for any communication or
document to be made or delivered under or in connection with the Finance Documents is:

	 	 	(a)	 	in the case of the Original Borrower, that identified with its name in
Schedule 1 (The
Original Parties);
	 
	 	 	(b)	 	in the case of HoldCo, if it is the Ultimate Holding Company, or
Intermediate HoldCo, that
in the relevant Deed of Guarantor Accession;
	 
	 	 	(c)	 	in the case of each Lender or any other Obligor, that identified with its
name in Schedule 1
(The Original Parties) or otherwise notified in writing to the Agent on or prior to
the date on
which it becomes a Party; and
	 
	 	 	(d)	 	in the case of the Agent, that identified with its name in Part II of
Schedule 1 (The Original
Parties),

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

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

	 	 	 	(a)	 	if by way of fax, when received in legible form; or
	 
	 	 	 	(b)	 	if by way of letter, when it has been left at the relevant address
or five Banking Days
after being deposited in the post postage prepaid in an envelope addressed to it
at that
address;

	 	 	 	and, if a particular department or officer is specified as part of its address details
provided under clause 30.2 (Addresses) , if addressed to that department or officer.
	 
	30.3.2	 	 	Any communication or document to be made or delivered to the Agent will be effective only
when actually received by the Agent and then only if it is expressly marked for the attention
of the department or officer identified with the Agent’s signature below (or any substitute
department or officer as the Agent shall specify for this purpose).
	 
	30.3.3	 	 	All notices from or to an Obligor shall be sent through the Agent.
	 
	30.3.4	 	 	Any communication or document made or delivered to the Ultimate Holding Company in
accordance with this clause will be deemed to have been made or delivered to each of the
Obligors.

	 	 	 
	  30.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address or fax number or change of
address or fax number pursuant to clause 30.2 (Addresses) or changing its own address or
fax number, the Agent shall notify the other Parties.

69

 

	30.5	 	English language
	 

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

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

	 	(a)	 	in English; or
	 
	 	(b)	 	if not in English, and if so required by the 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.

	31	 	Calculations and certificates
	 
	31.1	 	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.
	 
	31.2	 	Certificates and Determinations
	 
	 	 	Any certification or determination by a Finance Party of a rate or amount under any
Finance Document is, in the absence of manifest error, conclusive evidence of the
matters to which it relates.
	 
	31.3	 	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 365 days or, in any case where the practice in the Relevant Interbank Market
differs, in accordance with that market practice.
	 
	32	 	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.
	 
	33	 	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.
	 
	34	 	Amendments and waivers
	 
	34.1	 	Required consents
	 

	 
	34.1.1	 	Subject to clause 34.2 (Exceptions) and clause 34.4 (Amendments binding) any term of
the
Finance Documents may be amended or waived only with the consent of the Majority
Lenders and the Obligors party thereto and any such amendment or waiver will be binding
on all Parties.

	 
	34.1.2	 	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted
by this clause.

70

 

	   34.2	 	Exceptions

	 
	34.2.1	 	 An amendment or waiver that has the effect of changing or which relates to:

	 	(a)	 	the definition of “Majority Lenders” in clause 1.2
(Definitions);
	 
	 	(b)	 	an extension to the date of payment of any amount under the Finance
Documents or to
any Availability Period;
	 
	 	(c)	 	a reduction in the Margin or the amount of any payment of
principal, interest, fees or
commission payable;
	 
	 	(d)	 	the currency in which any amount is payable under any Finance Document;
	 
	 	(e)	 	an increase in Commitment;
	 
	 	(f)	 	a change to the Borrowers or Guarantors other than in accordance
with clause 19.17
(Acceding Guarantors), clause 19.18 (Additional Borrower) or clause 24 (Changes
to
the Obligors);
	 
	 	(g)	 	any provision which expressly requires the consent of all the Lenders; or
	 
	 	(h)	 	clause 3.2 (Finance Parties’ rights and obligations), clause 23 (Changes
to the Lenders), clause 27.1 (Payments to Finance Parties) or this clause 34.

	 	 	shall not be made without the prior consent of all the Lenders.

	 
	34.2.2	 	An amendment or waiver which relates to the rights or obligations of the Agent or an MLA
may not be effected without the consent of the Agent or such MLA.

	 
	34.3	 	Releases
	 
	 	 	Except with the prior consent of all the Finance Parties, the Agent shall not have
authority to release:

	 
	34.3.1	 	any Obligor from the subordination arrangements constituted by any Deed of Subordination;
or

	 
	34.3.2	 	any Obligor from any of its guarantee or other assurance obligations under this Agreement,

in each case, other than any such release as part of a disposal made pursuant to
clause 21.2.2 (Disposals).

	 
	 
	34.4	 	Amendments binding
	 
	 	 	Without prejudice to the other provisions of this Agreement each Obligor confirms
that if the Ultimate Holding Company and the Finance Parties or any of them enter into
any amendment or supplement to, or restatement of, this Agreement, the Ultimate Holding
Company’s execution of any such amendment, supplement or restatement, whether or not
expressly or purportedly made on behalf of that Obligor, shall bind that Obligor without
the need to obtain any confirmation or acknowledgement from such Obligor. For this
purpose, each Obligor, for the benefit of the Finance Parties, irrevocably designates,
appoints and empowers the Ultimate Holding Company as its agent and attorney.
	 
	35	 	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.

71

 

SECTION 12

GOVERNING LAW AND ENFORCEMENT

	36	 	Governing law
	 
	 	 	This Agreement is governed by English law.
	 
	37	 	Enforcement
	 
	37.1	 	Jurisdiction of English courts
	 
	37.1.1	 	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in
connection with this Agreement (including a dispute regarding the existence, validity or
termination of this Agreement) (a “Dispute”).
	 
	37.1.2	 	The Parties agree that the courts of England are the most appropriate and convenient courts
to settle Disputes and accordingly no Party will argue to the contrary.
	 
	37.1.3	 	This clause 37.1 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.

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

72

 

Schedule 1

The Original Parties

Part I — The Obligors

	 	 	 
	Name of Original Borrower

	 	Registration number (or equivalent, if any)
	 
	 	 
	British Sky Broadcasting Group PLC

	 	2247735
	Grant Way
	 	 
	Isleworth
	 	 
	Middlesex
	 	 
	TW7 5QD
	 	 
	 
	 	 
	Fax: 0207 705 3453
	 	 
	Attention: Chief Financial Officer
	 	 
	 
	 	 
	Name of Original Guarantor

	 	Registration number (or equivalent, if any)
	 
	 	 
	British Sky Broadcasting Group PLC

	 	2247735
	Grant Way
	 	 
	Isleworth
	 	 
	Middlesex
	 	 
	TW7 5QD
	 	 
	 
	 	 
	Fax: 0207 705 3453
	 	 
	Attention: Chief Financial Officer
	 	 
	 
	 	 
	British Sky Broadcasting Limited

	 	2906991
	Grant Way
	 	 
	Isleworth
	 	 
	Middlesex
	 	 
	TW7 5QD
	 	 
	 
	 	 
	Fax: 0207 705 3453
	 	 
	Attention: Chief Financial Officer
	 	 
	 
	 	 
	Sky Subscribers Services Limited

	 	2340150
	Grant Way
	 	 
	Isleworth
	 	 
	Middlesex
	 	 
	TW7 5QD
	 	 
	 
	 	 
	Fax: 0207 705 3453
	 	 
	Attention: Chief Financial Officer
	 	 

73

 

Part II — The Agent and the Original Lenders

The Original Lenders

	 	 	 	 	 	 	 
	Mandated Lead Arrangers	 	Commitment (£)	 	Contact Details
	Barclays Bank PLC

	 	 	70,000,000	 	 	5, The North Colonnade
	 

	 	 	 	 	 	Canary Wharf
	 

	 	 	 	 	 	London E14 4BB
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Karen Somerville/ Nick
	 

	 	 	 	 	 	Aldam
	 

	 	 	 	 	 	Fax: 020 7773 6808/ 020

7516 9201
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Cliff Baylis/John Atkinson
	 

	 	 	 	 	 	Fax: 020 7773 1840
	 
	 	 	 	 	 	 
	Citibank, N.A., London Branch

	 	 	70,000,000	 	 	Citigroup Centre,
	 

	 	 	 	 	 	Canada Square
	 

	 	 	 	 	 	Canary Wharf
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	E14 5LB
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Citibank NA London, UK
	 

	 	 	 	 	 	Loans Processing Unit
	 

	 	 	 	 	 	Fax: 020 7942 7512
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Michael Llewelyn-Jones
	 

	 	 	 	 	 	Fax: 020 7986 2331
	 
	 	 	 	 	 	 
	Deutsche Bank AG London

	 	 	70,000,000	 	 	Winchester House
	 

	 	 	 	 	 	1 Great Winchester Street
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2N 2DB
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Gina Thomas
	 

	 	 	 	 	 	Fax: 020 7545 4638
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Martyn Nicholas
	 

	 	 	 	 	 	Fax: 020 7545 4735
	 
	 	 	 	 	 	 
	JPMorgan Chase Bank

	 	 	70,000,000	 	 	125 London Wall
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2Y 5AJ
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Rossana Gonzalez-Ayala
	 

	 	 	 	 	 	Fax: 00 1 713 750 2129
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: John Blackborough
	 

	 	 	 	 	 	Fax: 020 7777 1493

74

 

	 	 	 	 	 	 	 
	Mandated Lead Arrangers	 	Commitment (£)	 	Contact Details
	The Royal Bank of Scotland plc

	 	 	70,000,000	 	 	135 Bishopsgate
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2M 3UR
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Sarah Linnegar, Loans
	 

	 	 	 	 	 	Administration Unit
	 

	 	 	 	 	 	Fax: 020 7672 6403
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Mike Cunningham/ Gerard
	 

	 	 	 	 	 	McHugh 

Fax: 020 7085 8549

	 	 	 	 	 	 	 
	Lead Arrangers

	 	Commitment (£)

	 	Contact Details
	Allied Irish Banks p.I.c.

	 	 	55,000,000	 	 	AIB Corporate Banking
	 

	 	 	 	 	 	St. Helen’s
	 

	 	 	 	 	 	1 Undershaft
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC3A 8AB
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Jessica O’Brien/ Arantxa
	 

	 	 	 	 	 	Catarecha 

Fax: 020 7726 8735
	 
	 

	 	 	 	 	 	Cc: Sonya lovieno/ Gloria Chan
	 

	 	 	 	 	 	Fax: 020 7090 7101
	 
	 	 	 	 	 	 
	Bayerische
Landesbank, 
	 	 	55,000,000	 	 	Bavaria House
	London Branch

	 	 	 	 	 	13/14 Appold Street
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2A 2NB
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Loan Administration
	 

	 	 	 	 	 	Fax: 020 7955 5822
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Matthew Dunn, Corporate
	 

	 	 	 	 	 	Banking Department
	 

	 	 	 	 	 	Fax: 020 7955 5129
	 
	 	 	 	 	 	 
	BNP Paribas, London Branch

	 	 	55,000,000	 	 	10 Harewood Avenue
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	NW1 6AA
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Katy Simpson/ Kaine Elston,
	 

	 	 	 	 	 	Loans and Agency Desk
	 

	 	 	 	 	 	Fax: 020 7595 6195
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Louis Kenna/ Claire Guglielmi
	 

	 	 	 	 	 	Fax: 020 7595 5019

75

 

	 	 	 	 	 	 	 
	Lead Arrangers	 	Commitment (£)	 	Contact Details
	Calyon, London Branch

	 	 	55,000,000	 	 	5 Broadwalk House
	 

	 	 	 	 	 	Appold Street
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2A 2DA
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Don Finkel/ Dee Weekes
	 

	 	 	 	 	 	Fax: 020 7214 6816/ 020 7971 4408
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Stephen Tubb/ Brian Clark
	 

	 	 	 	 	 	Fax: 020 7214 5613
	 
	Commerzbank

Aktiengesellschaft, London

Branch

	 	 	55,000,000	 	 	Commerzbank House

23 Austin Friars

London

EC2N 2NB

Contact: Martin Oates

Fax: 020 7418 4870

Cc: Kevin Buck, Director

Fax: 020 7418 4957

	 
	 	 	 	 	 	 
	HSBC Bank PLC

	 	 	55,000,000	 	 	8 Canada Square
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	E14 5HQ
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Process Manager, Loans
	 

	 	 	 	 	 	Administration
	 

	 	 	 	 	 	Fax: 020 7992 4680
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Mark Leahy, Global Relationship
	 

	 	 	 	 	 	Manager
	 

	 	 	 	 	 	Fax: 020 7992 4867
	 
	 	 	 	 	 	 
	ING Bank N.V., London Branch

	 	 	55,000,000	 	 	60 London Wall
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2M 5TQ
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Samantha Joyce
	 

	 	 	 	 	 	Fax: 020 7767 7324
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Lindsay Cornelissen/ Stuart
	 

	 	 	 	 	 	Wheeler
	 

	 	 	 	 	 	Fax: 020 7562 0220
	 
	 	 	 	 	 	 
	Lloyds TSB Bank plc

	 	 	55,000,000	 	 	25 Gresham Street
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2V 7HN
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: David Moore
	 

	 	 	 	 	 	Fax: 020 7661 4942

76

 

	 	 	 	 	 	 	 
	
Lead Arrangers	 	Commitment (£)	 	Contact Details
	Societe Generale

	 	 	55,000,000	 	 	41 Tower Hill
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC3N 4SG
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Philippe Petris/ Cecile
	 

	 	 	 	 	 	Houvet
	 

	 	 	 	 	 	Fax: 00 33 1 42 14 09 45
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Bruce Pomford
	 

	 	 	 	 	 	Fax: 020 7676 6156
	 
	 	 	 	 	 	 
	WestLB AG, London Branch

	 	 	55,000,000	 	 	Woolgate Exchange
	 

	 	 	 	 	 	25 Basinghall Street
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	EC2V 5HA
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Vivienne Baxter/ David
	 

	 	 	 	 	 	Williams
	 

	 	 	 	 	 	Fax: 020 7020 7620
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Richard Partis/ Tony Dennis
	 

	 	 	 	 	 	Fax: 020 7020 7850

	 	 	 	 	 	 	 
	Arrangers	 	Commitment (£)	 	Contact Details
	The Bank of New York

Company, Inc.

	 	 	25,000,000	 	 	One Canada Square

London

E14 5AL
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Cecilia Housego, The Loans
	 

	 	 	 	 	 	Department
	 

	 	 	 	 	 	Fax: 020 7964 6032
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Jason Garwood
	 

	 	 	 	 	 	Fax: 020 7964 6193
	 
	 	 	 	 	 	 
	Credit Suisse First Boston

	 	 	25,000,000	 	 	One Cabot Square
	 

	 	 	 	 	 	London
	 

	 	 	 	 	 	E14 4QJ
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Nicholas Goodey/ Dave
	 

	 	 	 	 	 	Willats, Loans Services
	 

	 	 	 	 	 	Fax: 020 7888 8125
	 
	 

	 	 	 	 	 	Cc: Kamlesh Vara/ Vanessa Barrett,
	 

	 	 	 	 	 	Corporate Banking Group
	 

	 	 	 	 	 	Fax: 020 7888 4155/ 020 7943 2379

77

 

	 	 	 	 	 	 	 
	Arrangers	 	Commitment (£)	 	Contact Details
	Goldman
Sachs Credit
Partners L.P.

	 	 	25,000,000	 	 	c/o Goldman Sachs International

Petershill, 1 Carter Lane

London, EC4V 5ER
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Contact: Katherine Gillespie
	 

	 	 	 	 	 	Fax: 020 7552 7070
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Caroline Maw/ Sally Haynes
	 

	 	 	 	 	 	Fax: 020 7552 7070
	 
	The Governor and
Company of the Bank
of Ireland

	 	 	25,000,000	 	 	c/o P.O. Box 27

Broad Quay

Bristol

BF99 7AX

Contact: Olivia Carey/ Janet Mahon/
	 

	 	 	 	 	 	Erin Clarke, Loans Administration
	 

	 	 	 	 	 	Fax: 00 353 1 618 7490
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Cc: Fiona Smith
	 

	 	 	 	 	 	Fax: 00 353 1 829 0129

The Agent

	 	 	 
	      
       Agent	 	Contact Details
	Barclays Bank PLC

	 	5, The North Colonnade
	 

	 	Canary Wharf
	 

	 	London
	 

	 	E144BB
	 
	 	 
	 

	 	Contact: Chris Ketchen
	 
	 	 
	 

	 	Fax: 020 7773 4893

78

 

Schedule 2

Conditions precedent to initial Utilisation

	1	 	A copy, certified as a true, complete and up-to-date copy by the Company Secretary or a
Director of the relevant company of the Memorandum and Articles of Association or equivalent
constitutional documents of the Original Borrower and the Original Guarantors.
	 
	2	 	A copy, certified as a true copy by the Company Secretary or a Director of the relevant
company, of resolutions of the Board of Directors or a Committee of the Board of Directors of
the Original Borrower and the Original Guarantors evidencing approval of the Finance Documents
and authorising its appropriate officers to execute and deliver the Finance Documents and to
give all notices and take all other action required under the Finance Documents together with,
if relevant, the resolutions of the Board of Directors appointing such Committee.
	 
	3	 	Confirmation from a Director or the Company Secretary of the Original Borrower that the
borrowing or guaranteeing of the Facility will not violate any borrowing, guaranteeing limits
or the equivalent imposed under its Memorandum and Articles of Association or
equivalent constitutional documents or otherwise.
	 
	4	 	Confirmation from a Director or the Company Secretary of each of the Original Guarantors that
the guaranteeing of the Facility will not violate any borrowing or guaranteeing limits or the
equivalent imposed under each of their Memorandum and Articles of Association or equivalent
constitutional documents or otherwise.
	 
	5	 	Specimen signatures, authenticated by the Company Secretary or a Director of the relevant
company, of the persons authorised in the resolutions of the Boards of Directors or
equivalent, as referred to in paragraph 2 above.
	 
	6	 	An opinion of Norton Rose.
	 
	7	 	An unaudited schedule of all Indebtedness of the Group as at the date of this Agreement.
	 
	8	 	An unaudited schedule of all Hedging Arrangements of the Group in place as at the date of
this Agreement.
	 
	9	 	Either (i) if any utilisations are outstanding under the Existing £600m Facility, evidence
that the first Utilisation of the Facility will be used for the repayment and irrevocable
cancellation in full of the Existing £600 million Facility or (ii) if no utilisations are
outstanding under the Existing £600m Facility, evidence to be provided by way of an
irrevocable cancellation notice that the Existing £600m Facility will be cancelled in full on
or prior to the date of first Utilisation.
	 
	10	 	The consolidated audited financial statements of the Group for the financial year ending 30
June 2004.
	 
	11	 	The audited financial statements of each Original Guarantor for the financial year ending 30
June 2004.
	 
	12	 	Compliance Certificate for the period ending 30 June 2004.
	 
	13	 	Each of the Finance Documents including the Fee Letters duly signed by the parties thereto.
	 
	14	 	The Disclosure Letter.

79

 

Schedule 3

Requests

Part I — Utilisation Request

[FOR A LOAN]

From:
[Borrower]

To:     [Agent]

Dated:

Dear Sirs

British Sky Broadcasting Group plc £1,000,000,000 Multi-currency revolving credit facility

dated [     ] (as from time to time amended, varied or restated

the “Facility Agreement”)

We refer to the Facility Agreement. Terms defined in the Facility Agreement shall have the
same meanings where used in this Utilisation Request.

	1	 	We wish to make a Utilisation on the following terms:
	 
	 	 	Proposed Utilisation Date: [     ] (or, if that is not a Banking Day, the next Banking Day)
	 
	 	 	Currency of Loan: [     ]
	 
	 	 	Amount: [     ] or, if less, the Available Facility
	 
	 	 	Interest Period: [     ]
	 
	2	 	We confirm that each condition specified in clause 5.2
(Further conditions precedent) is
satisfied on the date of this Utilisation Request.
	 
	3	 	The proceeds of this Loan should be credited to
[account].
	 
	4	 	This Utilisation Request is irrevocable.

Yours faithfully

 

Authorised Officer of

[Borrower]

80

 

Part II — Utilisation Request

[FOR A LETTER OF CREDIT]

From:
[Borrower]

To:     [Agent]

Dated:

Dear Sirs

British Sky Broadcasting Group PLC

£1,000,000,000 Multi-currency revolving credit facility

agreement dated [•] 2004 (as amended

from time to time)
 (the “Facility Agreement”)

We refer to the Facility Agreement. Terms defined in the Facility Agreement shall have the
same meanings where used in this Utilisation Request.

	1	 	We wish to arrange for a Letter of Credit to be issued on the following terms:
	 
	 	 	Proposed Utilisation Date: [     ] (or, if that is not a Banking Day, the next Banking Day)
	 
	 	 	Maturity Date: [     ]
	 
	 	 	Currency:
	 
	 	 	Amount: [     ] or, if less, the Available Facility (subject always to the LC Limit)
	 
	 	 	Beneficiary: [     ] (the
“Beneficiary”)
	 
	 	 	Attached as Annex [A] are details of the documentation and other instruments evidencing the
guaranteed obligation.
	 
	 	 	Attached as Annex [B] is the form of Letter of Credit required by the Beneficiary, as
previously approved by you.
	 
	 	 	[Delivery instructions]
	 
	2	 	We confirm that each condition specified in clause 5.2
(Further conditions precedent) is
satisfied on the date of this Utilisation Request.
	 
	3	 	This Utilisation Request is irrevocable.

Yours faithfully

 

Authorised Officer of

[Borrower]

81

 

Schedule 4

Mandatory Cost formulae

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

	 	 	 	 	 
	 

	 	AB +
C(B – D) + E  ́  0.01
	 	per cent, per annum
	 

	 	 	 	 
	 

	 	100 – (A + C)	 	 

	 	 	(b) 	 in relation to a Loan in any currency other than sterling:

	 	 	 	 	 
	 

	 	E   ́  0.01
	 	per cent, per annum.
	 

	 	 	 	 
	 

	 	300	 	 

	 	 	Where:

	 	A	 	is the percentage of Eligible Liabilities (assuming these to be in excess of any
stated minimum) which 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 and,
if the Loan is an Unpaid Sum, the additional rate of interest specified in clause 10.3
(Default interest) 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.
	 
	 	E	 	is designed to compensate Lenders for amounts payable under the Fees Rules and
is calculated by the Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and
expressed in pounds per £1,000,000.

82

 

	5.	 	For the purposes of this Schedule:

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

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

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

	 	 	Each Lender shall promptly notify the Agent in writing of any change to the information
provided by it pursuant to this paragraph.
	 
	9.	 	The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Reference Bank for the purpose of E above shall be determined by the Agent based upon the
information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that,
unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation to
cash ratio deposits and Special Deposits are the same as those of a typical bank from its
jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility
Office.
	 
	10.	 	The Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.
	 
	11.	 	The Agent shall distribute the additional amounts received as a result of the Mandatory Cost
to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8
above.
	 
	12.	 	Any determination by the Agent pursuant to this Schedule in relation to a formula, the
Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties.

83

 

	13.	 	The Agent may from time to time, after consultation with the Ultimate Holding Company 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.

84

 

Schedule 5

Form of Transfer Certificate

To: Barclays Bank PLC as Agent

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

Dated:

British Sky Broadcasting Group PLC

£1,000,000,000 Multi-currency revolving credit facility agreement

dated [•] 2004 (as amended from time to time)

(the “Facility Agreement”)

We refer to the Facility Agreement. Terms defined in the Facility Agreement shall have the same
meanings where used in this Transfer Certificate.

	1	 	We refer to clause 23.5 (Procedure for transfer):

	 	(a)	 	The Existing Lender and the New Lender agree to the Existing Lender transferring to
the New Lender by novation all or part of the Existing Lender’s Commitment, rights and
obligations referred to in the Schedule in accordance with clause 23.5 (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 30.2 (Addresses) are set out in the Schedule.

	2	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in clause 23.4 (Limitation of responsibility of Existing Lenders).
	 
	3	 	The New Lender confirms that the person beneficially entitled to interest payable to that
Lender in respect of an advance under a Finance Document is a Qualifying Lender.
	 
	4	 	This Transfer Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Transfer
Certificate.
	 
	5	 	This Transfer Certificate is governed by English law.

THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

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

	 	 	 
	[Existing Lender]

	 	[New Lender]
	 
	By:

	 	By:

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

[Agent]

By:

85

 

Schedule 6

Form of Deed of Guarantor Accession

THIS DEED dated [•] is supplemental to a revolving credit facility agreement (the “Facility
Agreement”) dated [•] 2004 (as amended from time to time) and made between British Sky Broadcasting
Group PLC as Original Borrower (1), British Sky Broadcasting Group PLC and certain Subsidiaries of
British Sky Broadcasting Group PLC whose names and registered offices or principal places of
business are set out in schedule 1 thereto as Original Guarantors (2), Barclays Capital, Citigroup
Global Markets Limited, Deutsche Bank AG London, J.P. Morgan PLC and The Royal Bank of Scotland PLC
as Mandated Lead Arrangers (3), the Lenders whose names and addresses are set out in schedule 2
thereto as Lenders (4) and Barclays Bank PLC as Agent (5). Terms defined in the Agreement shall
bear the same meaning herein.

	1	 	[Company] hereby agrees to be an Acceding Guarantor pursuant to clause 19.17 (Acceding
Guarantors) of the Facility Agreement and accordingly undertakes henceforth to perform all the
obligations expressed to be undertaken under the Facility Agreement by a Guarantor in all
respects as if it had been party to the Facility Agreement as an Original Guarantor.
	 
	2	 	[Company] hereby represents and warrants to the Lenders in respect of itself in the terms of
the Repeating Representations.
	 
	3	 	[Company’s] administrative details are as follows, for the purpose of clause 30 (Notices) of
the Agreement:
	 
	 	 	Address                   [•]
	 
	 	 	Facsimile No.          [•]
	 
	 	 	Attention                  [•]
	 
	4	 	This Deed is governed by and shall be construed in accordance with English law.
	 
	5	 	[(To be included where the Acceding Guarantor is a foreign company.] [Company]
agrees for the benefit of the Agent, the Mandated Lead Arrangers and the
Lenders that any legal action or proceedings arising out of or in connection with
this Deed or the Facility Agreement against it or any of its assets may be brought
in the English courts, irrevocably and unconditionally submits to the jurisdiction
of such courts and irrevocably designates, appoints and empowers [      ] at present of [
      ]
to receive for it and on its behalf, service of process issued out of the English
courts in any such legal action or proceedings. The submission to such jurisdiction
shall not (and shall not be construed so as to) limit the right of the Agent, the Mandated
Lead Arrangers and the Lenders to take proceedings against [Company] in the courts of
any other competent jurisdiction, nor shall the taking of proceedings in any one or
more jurisdictions preclude the taking of proceedings in any other jurisdiction,
whether concurrently or not.

IN WITNESS WHEREOF this Deed has been executed the day and year first before written.

	 	 	 	 	 
	EXECUTED AS A DEED

	 	 	)	 
	BY [      ]

	 	 	)	 
	 

	 	Director

	 
	 	 	 	 
	 

	 	
           
    Director/Secretary

86

 

Schedule 7

Documents and evidence to be delivered by Acceding Guarantors

	1	 	A copy, certified as true, complete and up-to-date by the Company Secretary or a Director of
the relevant Group Member of the Certificate of Incorporation and the Memorandum and Articles
of Association (or equivalent constitutional documents) of the relevant Group Member.
	 
	2	 	A copy, certified as a true copy by the Company Secretary or a Director of the relevant Group
Member, of resolutions of the Board of Directors (or equivalent) of the relevant Group Member,
evidencing approval of this Agreement and the relevant Deed of Guarantor Accession and
authorising its appropriate officers to execute and deliver such Deed of Guarantor Accession.
	 
	3	 	A copy, certified as a true copy by the Company Secretary or a Director of the relevant Group
Member of all consents, authorisations, licences and approvals required by the relevant Group
Member to authorise, or required by the relevant Group Member in connection with, the
execution, delivery, validity, enforceability and admissibility in evidence of this Agreement
and the relevant Deed of Guarantor Accession and the performance by the relevant Group Member
of its obligations under the relevant Deed of Guarantor Accession and this Agreement.
	 
	4	 	Specimen signatures, authenticated by the company secretary or equivalent officer of the
relevant Group Member of the persons authorised in the resolutions of the Board of Directors
or equivalent, referred to in paragraph (b), above.
	 
	5	 	An opinion of legal advisers in the country of incorporation of the relevant Group Member to
the Agent, dated not more than fifteen Banking Days prior to the date of the relevant Deed of
Guarantor Accession, in a form satisfactory to the Agent.
	 
	6	 	In the case of a Group Member not incorporated in England and Wales, a copy, certified as a
true copy by the company secretary or equivalent officer of the relevant Group Member of a
letter from the agent of the relevant Group Member for receipt of service of process referred
to in the Deed of Guarantor Accession accepting its appointment.
	 
	7	 	The most up-to-date financial statements of the relevant Group Member.
	 
	8	 	Confirmation from the Director of the relevant Group Member that the guaranteeing of the
Facility will not violate any borrowing or guaranteeing limits or the equivalent imposed under
its Memorandum and Articles of Association or equivalent constitutional documents or
otherwise.

87

 

Schedule 8

Form of Deed of Borrower Accession

THIS DEED dated [•] is supplemental to a revolving credit facility agreement (the “Facility
Agreement”) dated [•] 2004 (as amended from time to time) and made between British Sky Broadcasting
Group PLC as Original Borrower (1), British Sky Broadcasting Group PLC and certain Subsidiaries of
British Sky Broadcasting Group PLC whose names and registered offices or principal places of
business are set out in schedule 1 thereto as Original Guarantors (2), Barclays Capital, Citigroup
Global Markets Limited, Deutsche Bank AG London, J.P. Morgan PLC and The Royal Bank of Scotland PLC
as Mandated Lead Arrangers (3), the Lenders whose names and addresses are set out in schedule 2
thereto as Lenders (4) and Barclays Bank PLC as Agent (5). Terms defined in the Facility Agreement
shall bear the same meaning herein.

	1	 	[•] hereby agrees to be an Additional
Borrower pursuant to clause 19.18 (Additional Borrower)
of the Facility Agreement and accordingly undertakes henceforth to be bound by the terms of
the Facility Agreement as a Borrower.
	 
	2	 	[•] hereby represents and warrants to the Lenders in respect of itself in the terms of the
Repeating Representations.
	 
	3	 	[•’s] administrative details are
as follows, for the purpose of clause 30 (Notices) of the Agreement:

	 	 	Address            	 [•]
	 
	 	 	Facsimile No.	 [•]
	 
	 	 	Attention 	 [•]
	 
	4	 	This Deed is governed by and shall be construed in accordance with English law.

IN WITNESS WHEREOF this Deed has been executed the day and year first before written.

	 	 	 	 	 
	EXECUTED AS A DEED

	 	 	)	 
	BY [   ]

	 	 	)	 
	 

	 	 	 	Director

	 
	 	 	 	 
	 

	 	 	 	Director/Secretary

88

 

Schedule 9

Documents and evidence required to be delivered by the Additional Borrower

	1	 	A copy, certified as a true, complete and up-to-date copy by the Company Secretary or a
Director of the Additional Borrower of the Memorandum and Articles of Association or
equivalent constitutional documents of the Additional Borrower.
	 
	2	 	A copy, certified as a true copy by the Company Secretary or a Director of the Additional
Borrower, of resolutions of the Board of Directors evidencing approval of the transactions
contemplated by the Deed of Borrower Accession and the Finance Documents and authorising its
appropriate officers to execute and deliver the Deed of Borrower Accession and to give all
notices and take all other action required under the Finance Documents (including any
Utilisation Requests).
	 
	3	 	Confirmation from the Company Secretary or a Director of the Additional Borrower that the
borrowing or guaranteeing of the Facility will not violate any borrowing, guaranteeing limits
or the equivalent imposed under its Memorandum and Articles of Association or
equivalent constitutional documents or otherwise.
	 
	4	 	Specimen signatures, authenticated by the Company Secretary or a Director of the Additional
Borrower, of the persons authorised in the resolutions of the Boards of Directors, as referred
to in paragraph 2 above.
	 
	5	 	A copy, certified as a true copy by the Company Secretary or a Director of the Additional
Borrower, of all consents, licences, authorisations and approvals required in connection with
the entry into and performance of the transactions contemplated by the Deed of Borrower
Accession or for the validity and enforceability of any Finance Document.
	 
	6	 	The most up-to-date financial statements of the Additional Borrower, if any.
	 
	7	 	A legal opinion of the legal advisers to the Agent in England.

89

 

Schedule 10

Form of Resignation Letter

To: Barclays Bank plc as Agent

From: [resigning Borrower] and [Ultimate Holding Company]

Date:

Dear Sirs

British Sky Broadcasting Group PLC

£1,000,000,000 Multi-currency revolving credit facility agreement

dated [•] 2004 (as amended from time to time)

(the “Facility Agreement”)

	1	 	We refer to the Facility Agreement. This is a Resignation Letter. Terms defined in the
Facility Agreement have the same meaning in this Resignation Letter unless given a different
meaning in this Resignation Letter.
	 
	2	 	Pursuant to clause 19.20 (Resignation of a Borrower), we request that [resigning Borrower] be
released from its obligations as a Borrower under the Facility Agreement.
	 
	3	 	We confirm that:

	 	(a)	 	no Default is continuing or would result from the acceptance of this request; and
	 
	 	(b)	 	[resigning Borrower] is under no actual or contingent financial obligations under
any Finance Documents.

	4	 	This Resignation Letter is governed by English law.

	 	 	 
	[Ultimate Holding Company]
	 	[Subsidiary]
	 
	 	 
	By:

	 	By:

90

 

Schedule 11

Form of Compliance Certificate

Barclays Bank PLC

[•]

			
	Attention: [•]
	 	[Date]

Dear Sirs

British Sky Broadcasting Group PLC

£1,000,000,000 Multi-currency revolving credit facility

agreement dated [•] 2004 (as amended

from time to time) (the “Facility Agreement”)

We refer to the Facility Agreement and deliver this certificate in respect of the [Half-Yearly
Period] [financial year] of the Group ended [•] pursuant to [clause 21.3 (Financial undertakings)]  [paragraph 12 of Schedule 2 (Conditions precedent)] of the Facility Agreement. Terms defined in the
Facility Agreement shall have the same meaning when used in this Certificate.

We confirm that, based on the financial statements delivered to the Agent pursuant to [clause
21.1.4 (Financial statements)] [paragraph 10 of
Schedule 2 (Conditions precedent)] of the Facility
Agreement in respect of the [Half-Yearly Period][financial year] of the Ultimate Holding Company
and its Subsidiaries ended [•]:

	1	 	As at the last day of such [Half-Yearly Period] [financial year] Net Debt was [•], including
all Hedging Arrangements as specified in the attached schedule.
	 
	2	 	EBITDA in respect of such [Half-Yearly Period] [financial year] was [•]. EBITDA in respect of
the previous Half-Yearly Period was [•].
	 
	3	 	Consolidated Interest Charges in respect of such [Half-Yearly Period] [financial year] were
[•]. Consolidated Interest Charges in respect of the previous Half-Yearly Period were [•]*.

Based on the above and such statements, we confirm that on the last day of such [Half-Yearly
Period][financial year]:

	1	 	The ratio of Net Debt to EBITDA was [•].
	 
	2	 	The ratio of EBITDA to Consolidated Interest Charges was [•].

Accordingly, we confirm that the Ultimate Holding Company is in compliance with its
obligations set out at clause 21.3 (Financial undertakings) of the Facility Agreement. [Not
applicable to the Compliance Certificate to be delivered pursuant to paragraph 12 of Schedule 2
(Conditions precedent to initial Utilisation)]

We confirm that all calculations have been performed in accordance with the Testing
Accounting Principles.

For and on behalf of

[Ultimate Holding Company]

91

 

 

Chief Financial Officer/Director

* Not in the case of a certificate in respect of a financial year.

92

 

Schedule 12

Timetables

	 	 	 	 	 	 	 
		 	Letters of	 	Loans in	 	Loans in Optional
	 	 	Credit	 	sterling	 	Currencies
	 
	The relevant
Borrower requests
an Optional
Currency in
accordance with
clause 5.3
(Conditions
relating to
Optional
Currencies)

	 	 	 	 	 	4 pm, U-Day minus

4 Banking Days
	 
	 	 	 	 	 	 
	Agent notifies the
relevant Borrower
if a currency is
approved as an
Optional Currency
in accordance with
clause 5.3
(Conditions
relating to
Optional
Currencies)

	 	 	 	 	 	2 pm, U-Day minus

3 Banking Days
	 
	 	 	 	 	 	 
	Delivery of a duly
completed
Utilisation Request
(clause 6.1
(Delivery of a
Utilisation
Request))

	 	11 am, U-Day minus

5 Banking Days
	 	9 am, U-Day
	 	5 pm, U-Day minus

3 Banking Days
	 
	 	 	 	 	 	 
	Agent notifies the
Lenders of the
details of the
Utilisation in
accordance with
clause 6.4
(Lenders’
participation)

	 	 	 	10am, U-Day
	 	9.30 am, U-Day minus

2 Banking Days
	 
	 	 	 	 	 	 
	Delivery of a
completed Renewal
Request (clause
6.5.8 (Renewal of a
Letter of Credit))

	 	5 Banking Days
prior to the
relevant Expiry
Date	 	 	 	 
	 
	 	 	 	 	 	 
	Agent receives a
notification from a
Lender under clause
7.2 (Unavailability
of a currency)

	 	 	 	 	 	10 am, U-Day minus

2 Banking Days
	 
	 	 	 	 	 	 
	Agent gives notice
in accordance with
clause 7.2
(Unavailability of
a currency)

	 	 	 	 	 	10.30 am, U-Day minus 
2 Banking
Days

“U-Day” means Utilisation Date

The timetable for any proposed Utilisation by way of Letter of Credit shall be determined on
a case-by-case basis.

	 	 	 	 	 	 	 
	LIBOR or EURIBOR is fixed

	 	Quotation Day
as of 11:00
a.m. London
time in respect
of LIBOR and
as of 11:00 am
(Brussels time)
in respect of
EURIBOR
	 	Quotation Day
as of 11:00 a.m.
	 	Quotation Day as of
11:00 a.m.

93

 

Schedule 13

Form of Letter of Credit

To: [Beneficiary]

[Date]

Dear Sirs,

[Details of Letter of Credit]

	  1	 	The banks listed in paragraph 3 below (the “Lenders”) understand that:
	 
	1.1	 	[            ] (the “Beneficiary”) has entered into an agreement on [                   ] (the “Agreement”) with
[                  ] (the “Company”) in connection with [transaction description]; and
	 
	1.2	 	the Company has agreed to provide to the Beneficiary in connection
with the Agreement a [guarantee (this “Guarantee”)] for an aggregate
amount not exceeding [                      ]
([Currency]
[                      ]) (the “Guaranteed Amount”).
	 
	  2	 	Each Lender irrevocably (subject to the terms hereof) guarantees to the Beneficiary that,
if the Company has failed to pay to the Beneficiary any amount payable under the Agreement
for a period of 10 days after such amount becomes due, then, within ten days of receipt of a
written claim (the “Claim”) from the Beneficiary in the form set out in Appendix 1, that
Lender shall, subject to such Lender’s maximum liability specified in paragraph 3 below, pay
its percentage of any sum demanded in that Claim in accordance with the following provisions
of this Guarantee and confirmed in the Claim to be due and payable under the Agreement into
the following account, such payment being in satisfaction of the Claim of the Beneficiary:
	 
	 	 	[                                         ]
	 
	 	 	Account ref: [        ]
	 
	 	 	Account no: [        ]
	 
	 	 	[Sort code: [        ]
	 
	  3	 	The maximum aggregate liability of the Lenders under this Guarantee shall not exceed the
Guaranteed Amount. The liability of each of the Lenders under this Guarantee shall not exceed
the percentage set opposite its name below of the Guaranteed Amount:

	 	 	 	 	 	 	 
	 	 	Name	 	Percentage
	 
	 

	 	 	1	 	 	[        ]
	 
	 	 	 	 	 	 
	 

	 	 	2	 	 	[        ]
	 
	 	 	 	 	 	 
	 

	 	 	3	 	 	[        ]
	 
	 

	 	 	4	 	 	[        ]
	 
	 	 	 	 	 	 
	 

	 	[etc.]
	 	 

94

 

	4	 	The obligations of each Lender under this Guarantee are several. Failure of a Lender to
carry out its obligations under this Guarantee shall not relieve any other Lender of its
obligations under this Guarantee. No Lender shall be responsible for the obligations of any
other Lender under this Guarantee.
	 
	5	 	A Claim under this Guarantee by the Beneficiary must be received in writing by Barclays
Bank PLC as agent for the Lenders (in this capacity the “Agent”) at its office at [address
of Agent] marked for the attention of [contact name], on any date on or after [ ] but not
later than [10 Banking Days before the Termination Date of
the £1,000m RCF ] (the
“Expiry Date”) accompanied by the signed statement of the Beneficiary that the Company has
failed to fulfil its payment obligations under the Agreement in respect of a specified
amount for a period of 10 days as set out in the Claim. Without prejudice to any rights the
Company may have directly against the Beneficiary or any disputes raised by the Company, any
Claim shall be accepted under this Guarantee as conclusive evidence that the amount claimed
is due to the Beneficiary.
	 
	6	 	A Claim under this Guarantee shall be made in writing (which shall not include facsimile,
telex, cable or similar forms of communication) and shall be effective upon actual receipt
at the office of the Agent referred to in paragraph 5 above. No Claim may be validly made
unless it is accompanied by a certified copy of a demand made on the Company in respect of
the sum demanded in that Claim.
	 
	7	 	A Claim must bear the confirmation of the [bankers] of the Beneficiary that the
signatories are authorised to sign that Claim.
	 
	8	 	The liability of a Lender under this Guarantee shall be discharged in full prior to the
Expiry Date on the date (the “Discharge Date”) when either (i) the Beneficiary delivers a
notice to the Agent confirming that such Lender is discharged from all liabilities under
this Guarantee, substantially in the form set out in Appendix 2 or (ii) such Lender pays the
Beneficiary an amount equal to its then maximum liability under this Guarantee.
	 
	9	 	This Guarantee shall remain valid until the Expiry Date or, if earlier, the Discharge
Date, after which it shall become null and void whether returned to the Agent for
cancellation or not and no Claim may be made on the Lenders. A Claim received after the
Expiry Date or, if earlier, the Discharge Date shall be ineffective. This Guarantee shall be
returned by the Beneficiary to the Agent on the Expiry Date or, if earlier, the Discharge
Date.
	 
	10	 	  
	 
	10.1	 	This Guarantee and the rights under it are personal to the Beneficiary and are not
transferable or assignable.
	 
	10.2	 	A Lender shall not be entitled to transfer any part of its obligations under this Guarantee
unless and to the extent that it procures that a transferee (acceptable to the Beneficiary,
acting reasonably) issues a guarantee on substantially the same terms as this Guarantee in
favour of the Beneficiary in respect of the obligations to be transferred to that Lender,
whereupon the maximum liability of that Lender under this Guarantee shall be reduced
accordingly. Following any such transfer the Beneficiary and the Lenders shall endorse this
Guarantee with a memorandum recording the reduction in the Lender’s maximum liability
hereunder.
	 
	11	 	Any payment under this Guarantee will satisfy the obligations of the Company pro tanto.
Upon making any payment under this Guarantee, the Lenders shall be subrogated to the rights
of the Beneficiary in respect of the amount paid.
	 
	12	 	This Guarantee shall be governed by and construed in accordance with the laws of England
and shall be subject to the exclusive jurisdiction of the English courts. Only the courts of
England and not those of any other jurisdiction shall have jurisdiction in any proceedings
the

95

 

	 	 	Beneficiary may initiate against the Agent or the Lenders arising out of or in connection
with this letter where indicated below.

Please confirm your agreement to the terms of this Guarantee by counter-signing this letter where
indicated below.

Yours faithfully

                                                            

For and on behalf of

[The Lenders]

We agree to the above

                                                            

For and on behalf of

[Beneficiary]

96

 

APPENDIX 1

FORM OF CLAIM

	 	 	 	 	 
	To:

	 	Barclays Bank PLC	 	 
	 

	 	[Address

Contact]	 	 

[Date]

Dear Sirs,

	1	 	We refer to the guarantee dated [        ] (the “Guarantee”) executed by the Agent
on behalf of the Lenders in our favour (copy attached). This is a Claim under the Guarantee.
	 
	2	 	We claim [        ] under the Guarantee. We confirm that [        ] has failed to
fulfil its payments obligations under the Agreement in the same amount for a period of 10 days
after the due date. We attach a certified copy of a demand made on [        ].
	 
	3	 	Terms defined in the Guarantee have the same meaning in this letter. This Claim shall be
governed by and construed in accordance with English law.

Yours faithfully,

 

	 
	Name: 	 
	 

Position:

duly authorised, for and on behalf of

[Beneficiary]

97

 

APPENDIX 2

FORM OF DISCHARGE

	 	 	 	 	 
	To:

	 	Barclays Bank PLC

[Address

Contact]	 	 

[Date]

Dear Sirs,

	1	 	We refer to the guarantee dated [        ] (the “Guarantee”) executed by you as
Agent for the Lenders in our favour.
	 
	2	 	We confirm that the [Lender is] [Lenders are] irrevocably discharged from all liabilities under the
Guarantee.
	 
	3	 	[We hereby return the Guarantee for retention by the Agent.]

This Discharge shall be governed by and construed in accordance with English law.

Yours faithfully,

 

	Name: 	 
	 

Position:

duly authorised, for and on behalf of

[Beneficiary]

98

 

	 	 	 	 	 	 	 
	Execution Pages
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	The Original Borrower
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	BRITISH SKY BROADCASTING

	 	 	)	 	 	JEREMY DARROCH
	GROUP PLC

	 	 	)	 	 	 
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	The Guarantors
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	BRITISH SKY BROADCASTING

	 	 	)	 	 	JEREMY DARROCH
	LIMITED

	 	 	)	 	 	 
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SKY SUBSCRIBERS SERVICES
LIMITED

by:

	 	

	)

)

)

)	

	 	
JEREMY DARROCH
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	BRITISH SKY BROADCASTING

	 	 	)	 	 	JEREMY DARROCH
	GROUP PLC

	 	 	)	 	 	 
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	The Mandated Lead Arrangers
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	BARCLAYS CAPITAL

	 	 	)	 	 	GREGORY FEWER
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	CITIGROUP GLOBAL MARKETS LIMITED

	 	 	)	 	 	SEAN HANAFIN
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	RICHARD MUNN
	DEUTSCHE BANK AG LONDON

	 	 	)	 	 	 
	by:

	 	 	)	 	 	GUY DU PARC BRAHAM
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	J.P. MORGAN PLC

	 	 	)	 	 	JOHN BLACKBOROUGH
	by:

	 	 	)	 	 	 

 

 

	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	THE ROYAL BANK OF SCOTLAND PLC

	 	 	)	 	 	MIKE CUNNINGHAM
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	The Lenders
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	BARCLAYS BANK PLC

	 	 	)	 	 	GREGORY FEWER
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	CITIBANK, N.A. LONDON BRANCH

	 	 	)	 	 	SEAN HANAFIN
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	RICHARD MUNN
	DEUTSCHE BANK AG LONDON

	 	 	)	 	 	 
	by:

	 	 	)	 	 	GUY DU PARC BRAHAM
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	JPMORGAN CHASE BANK

	 	 	)	 	 	JOHN BLACKBOROUGH
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	THE ROYAL BANK OF SCOTLAND PLC

	 	 	)	 	 	MIKE CUNNINGHAM
	by:

	 	 	)	 	 	 
	 

	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	SONYA IOVIENO
	ALLIED IRISH BANKS P.L.C

	 	 	)	 	 	 
	by:

	 	 	)	 	 	VINAY GUPTA
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	MATTHEW WILLIAMS
	BAYERISCHE LANDESBANK,

	 	 	)	 	 	 
	LONDON BRANCH

	 	 	)	 	 	MATTHEW DUNN
	by:

	 	 	)	 	 	 
	 

	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	FRANCOIS ARTIGNAN
	BNP PARIBAS, LONDON BRANCH

	 	 	)	 	 	 
	by:

	 	 	)	 	 	DAVID ARLETTAZ

 

 

	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	PHILLIP ARCHER
	CALYON, LONDON BRANCH

	 	 	)	 	 	 
	by:

	 	 	)	 	 	BRIAN CLARK
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	COMMERZBANK AKTIENGESELLSCHAFT,

	 	 	)	 	 	KEVIN BUCK
	LONDON BRANCH

	 	 	)	 	 	 
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	HSBC BANK PLC

	 	 	)	 	 	MARC LEAHY
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	LINDSAY CORNELISSEN
	ING BANK N.V., LONDON BRANCH

	 	 	)	 	 	 
	by:

	 	 	)	 	 	STUART WHEELER
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	LLOYDS TSB BANK PLC

by:

	 	

	)

)
	

	 	DAVID MOORE
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	SOCIETE GENERALE

	 	 	)	 	 	BRUCE POMFORD
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	WESTLB AG, LONDON BRANCH

	 	 	)	 	 	TIM SAI LOUIE
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	THE BANK OF NEW YORK COMPANY, INC.

	 	 	)	 	 	VINCENT L. PACILIO
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	GARRETT LYNSKEY
	CREDIT SUISSE FIRST BOSTON

	 	 	)	 	 	 
	by:

	 	 	)	 	 	KAMLESH VARA
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	GOLDMAN SACHS CREDIT PARTNERS L.P.

	 	 	)	 	 	ALISON HOWE
	by:

	 	 	)	 	 	 

 

 

	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	CONOR LINEHAN
	THE GOVERNOR AND COMPANY OF

	 	 	)	 	 	 
	THE BANK OF IRELAND

	 	 	)	 	 	AOIFE HUGHES
	by:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	The Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	BARCLAYS BANK PLC

	 	 	)	 	 	GREGORY FEWER
	by:

	 	 	)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]