Ex. (b)(3)
Private & Confidential CONFORMED COPY
--------------
INVESTOR LOAN AGREEMENT
for a
US$5,000,000 TERM FACILITY
to
RASMALA DISTRIBUTION (CAYMAN) LIMITED
as Parent
RASMALA DISTRIBUTION (BERMUDA) LIMITED
as Guarantor
ARRANGED BY
RASMALA BUYOUT FUND L.P.
AGENT
RASMALA BUYOUT FUND L.P.
[Subject to an intercreditor agreement dated 3 January, 2002 between
SHUAA Capital p.s.c., Capital Trust N.V., Rasmala Buyout Fund L.P. and
Rasmala Distribution (Cayman) Limited]
XXXXXX XXXX
CONTENTS
CLAUSE PAGE
SECTION 1 : INTERPRETATION....................................................................................1
1 Definitions and Interpretation.........................................................................1
SECTION 2 : THE FACILITY......................................................................................9
2 The Facility...........................................................................................9
3 Purpose................................................................................................9
4 Conditions of Utilisation.............................................................................10
SECTION 3 : UTILISATION......................................................................................11
5 Utilisation...........................................................................................11
SECTION 4 : REPAYMENT, PREPAYMENT AND CANCELLATION...........................................................12
6 Repayment.............................................................................................12
7 Prepayment and cancellation...........................................................................12
SECTION 5 : COSTS OF UTILISATION.............................................................................14
8 Interest..............................................................................................14
9 Fees..................................................................................................14
SECTION 6 : ADDITIONAL PAYMENT OBLIGATIONS...................................................................15
10 Tax gross up and indemnities..........................................................................15
11 Increased costs.......................................................................................16
12 Other indemnities.....................................................................................17
13 Mitigation by the Lenders.............................................................................18
14 Costs and expenses....................................................................................19
SECTION 7 : GUARANTEE........................................................................................20
15 Guarantee and indemnity...............................................................................20
SECTION 8 : REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT..............................................22
16 Representations.......................................................................................22
17 Information undertakings..............................................................................24
18 General undertakings..................................................................................24
19 Events of Default.....................................................................................28
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CLAUSE PAGE
SECTION 9 : CHANGES TO PARTIES...............................................................................31
20 Changes to the Lenders................................................................................31
21 Changes to the Obligors...............................................................................33
SECTION 10 : THE FINANCE PARTIES.............................................................................35
22 Role of the Agent and the Arranger....................................................................35
23 Conduct of business by the Finance Parties............................................................38
24 Sharing among the Lenders.............................................................................38
SECTION 11 : ADMINISTRATION..................................................................................40
25 Payment mechanics.....................................................................................40
26 Set-off...............................................................................................41
27 Notices...............................................................................................41
28 Calculations and certificates.........................................................................42
29 Partial invalidity....................................................................................43
30 Remedies and waivers..................................................................................43
31 Amendments and waivers................................................................................43
32 Counterparts..........................................................................................44
SECTION 12 : GOVERNING LAW AND ENFORCEMENT...................................................................45
33 Governing law.........................................................................................45
34 Enforcement...........................................................................................45
Schedule 1 The Original Parties..............................................................................46
Schedule 2 The Conditions Precedent..........................................................................48
Schedule 3 Form of Utilisation Request.......................................................................51
Schedule 4 Form of Transfer Certificate......................................................................52
Schedule 5 Existing Security Interests.......................................................................52
Schedule 6 Form of Accession Letter..........................................................................53
Schedule 7 Form of Resignation Letter........................................................................54
Schedule 8 Form of Confidentiality Letter....................................................................55
Schedule 9 Form of Warrant Instrument........................................................................59
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THIS AGREEMENT is dated 3 January, 2002 and made between:
1 RASMALA DISTRIBUTION (CAYMAN) LIMITED as Parent;
2 RASMALA DISTRIBUTION (BERMUDA) LIMITED as Guarantor;
3 RASMALA BUYOUT FUND L.P. (the "ARRANGER");
4 THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 as lenders
(the "ORIGINAL LENDERS"); and
5 RASMALA BUYOUT FUND L.P. as agent for the Lenders (the "AGENT").
IT IS AGREED AS FOLLOWS:
SECTION 1: INTERPRETATION
1 DEFINITIONS AND INTERPRETATION
1.1 DEFINITIONS
In this Agreement:
"ACCESSION LETTER" means a document substantially in the form set out in
Schedule 6 (Form of Accession Letter);
"ACQUISITION" means the acquisition of all outstanding Common Shares and
Option Shares on the terms and subject to the conditions set forth in the
Offer to Purchase and in the related letter of transmittal and in the
Amalgamation Agreement;
"ADDITIONAL GUARANTOR" means a company which becomes an Additional
Guarantor in accordance with clause 21 (Changes to the Obligors);
"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 Rasmala Buyout Fund L.P. of M&C Corporate Contracts
Services Limited, XX Xxx 000, Xxxxxx Xxxxx, Xxxxx Church Street, Xxxxxx
Town, Grand Cayman, Cayman Islands, Grand Canyon, British West Indies or
such other person as may be appointed agent for the Lender pursuant to
clause 22.11;
"AMALGAMATION AGREEMENT" means the agreement and plan of amalgamation,
dated as of 3 January 2002, among the Parent, Bidco and Target;
"ARRANGER" means Rasmala Buyout Fund L.P. of M&C Corporate Contracts
Services Limited, XX Xxx 000, Xxxxxx Xxxxx, Xxxxx Church Street, Xxxxxx
Town, Grand Cayman, Cayman Islands, Grand Canyon, British West Indies;
"AUTHORISATION" means an authorisation, consent, approval, resolution,
licence, exemption, filing or registration;
"AVAILABILITY PERIOD" means the period from and including the date of
this Agreement to and including 28 February 2002 (unless extended with
the prior written consent of the Arranger);
"BIDCO" means Rasmala Distribution (Bermuda) Limited (Co. number 31475),
a limited liability company, newly incorporated by the Parent under the
laws of Bermuda;
"BIDCO SHARE CHARGE" means the charge by the Parent over its shares in
Bidco, in favour of SHUAA Capital p.s.c. as security trustee for the
Finance Parties;
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"BUSINESS DAY" means a day (other than a Saturday or Sunday) on which
banks are open for general business in London and New York;
"COMMITMENT" means:
(a) in relation to an Original Lender, the amount in Dollars 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 Dollars of any
Commitment transferred to it under this Agreement,
to the extent not cancelled, reduced or transferred by it under this
Agreement;
"COMMON SHARES" means the common shares in Target having a par value of
US$0.01 per share (being all of the outstanding shares of the Target);
"CONFIDENTIALITY UNDERTAKING" means a confidentiality undertaking in the
form of Schedule 8;
"CONTROL", in relation to a body corporate, means the right, by virtue of
holding shares in such body corporate, or by virtue of any contract or
other arrangement with any holder of shares in such body corporate, to
exercise or control the exercise of more than 50 per cent. of the total
voting rights conferred upon the holders of the entire issued share
capital for the time being of that body corporate (ignoring for this
purpose, in respect of the Parent, the share capital that would be issued
on the exercise of the Warrants) and "CONTROLLED" shall be construed
accordingly;
"DEFAULT" means an event which would (with the expiry of a grace period,
the giving of notice, the making of any determination under the Finance
Documents or any combination of any of the foregoing) be an Event of
Default;
"DEPOSITARY" means American Stock Transfer & Trust Company in its
capacity as depositary for the Offer and as paying agent for the proposed
amalgamation or compulsory acquisition relating thereto;
"DOLLARS" and "US$" mean the lawful currency for the time being of the
United States of America and in respect of all payments to be made under
this Agreement in Dollars mean funds which are for same day settlement in
the New York Clearing House Interbank Payments System (or such other
Dollar funds as may at the relevant time be customary for the settlement
of international banking transactions denominated in Dollars);
"EBITDA" means, in respect of any period and any person or the Group, the
profit on ordinary activities (consolidated in the case of the Group) of
such person or (as the case may be) the Group before Taxation for such
period:
(a) adjusted to exclude interest received or receivable and interest
paid or payable and other similar income or costs to the extent
not already excluded;
(b) adjusted to exclude any gain or loss realised on the disposal of
fixed assets (whether tangible or intangible);
(c) after adding back any charge for the amortisation or write-off of
goodwill arising as a result of the Acquisition;
(d) after adding back any charge for amortisation of transaction costs
relating to the Acquisition and the financing thereof;
(e) after adding back the increased amount of depreciation where
additional depreciation is charged to EBITDA arising from the
write-up of the book value of assets;
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(f) before deducting any exceptional or extraordinary costs and before
including exceptional or extraordinary income;
(g) after deducting any profit arising out of the release of any
provisions against a liability or charge; and
(h) before the depreciation of fixed assets.
"EVENT OF DEFAULT" means any event or circumstance specified as such in
clause 19 (Events of Default);
"FACILITY" means the term loan facility made available under this
Agreement as described in clause 2 (The Facility);
"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 ten Business Days' written notice) as the
office or offices through which it will perform its obligations under
this Agreement;
"FINANCE DOCUMENT" means this Agreement, the Security Documents and any
other document designated as such by the Agent and the Parent;
"FINANCE PARTY" means the Agent, the Arranger or a Lender;
"FINANCIAL INDEBTEDNESS" means any indebtedness for or in respect of:
(a) moneys borrowed;
(b) any amount raised by acceptance under any acceptance credit
facility;
(c) any amount raised pursuant to any note purchase facility or the
issue of bonds, notes, debentures, loan stock or any similar
instrument;
(d) the amount of any liability in respect of any lease or hire
purchase contract which would, in accordance with IAS, be treated
as a finance or capital lease;
(e) receivables sold or discounted (other than any receivables to the
extent they are sold on a non-recourse basis);
(f) any amount raised under any other transaction (including any
forward sale or purchase agreement) having the commercial effect
of a borrowing;
(g) any derivative transaction entered into in connection with
protection against or benefit from fluctuation in any rate or
price (and, when calculating the value of any derivative
transaction, only the marked to market value shall be taken into
account);
(h) any counter-indemnity obligation in respect of a guarantee,
indemnity, bond, standby or documentary letter of credit or any
other instrument issued by a bank or financial institution; and
(i) the amount of any liability in respect of any guarantee or
indemnity for any of the items referred to in paragraphs (a) to
(h) above;
"GROUP" means the Parent and its Subsidiaries for the time being;
"GUARANTOR" means Bidco and each other Subsidiary of the Parent that may
be a party to this Agreement as an Additional Guarantor at any time;
"HOLDING COMPANY" means, in relation to a company or corporation, any
other company or corporation in respect of which it is a Subsidiary;
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"IAS" means International Accounting Standards as applied by the Target
as of the date of this Agreement;
"INTERCREDITOR AGREEMENT" means the intercreditor agreement dated on or
about the date of this Agreement between Capital Trust N.V., Shuaa
Capital p.s.c., the Investor and the Parent;
"INVESTOR" means Rasmala Buyout Fund L.P.;
"LENDER" means:
(a) any Original Lender; and
(b) any bank or financial institution which has become a Party in
accordance with clause 20 (Changes to the Lenders),
which in each case has not ceased to be a Party in accordance with the
terms of this Agreement;
"LOAN" means the loan made or to be made under the Facility or the
principal amount outstanding for the time being of that loan;
"MAJORITY LENDERS" means:
(a) if the Loans is then not outstanding, a Lender or Lenders whose
Commitments aggregate more than 66 2/3 per cent. of the Total
Commitments (or, if the Total Commitments have been reduced to
zero, aggregated more than 66 2/3 per cent. of the Total
Commitments immediately prior to the reduction); or
(b) at any other time, a Lender or Lenders whose participations in the
Loan then outstanding aggregate more than 662/3 per cent. of the
Loan then outstanding;
"MANAGEMENT ACCOUNTS" means the unaudited consolidated management
accounts for the Target Group comprising a balance sheet as at the last
day of the accounting period of the Target Group ending in September,
2001 and a profit and loss account for the year to date period up to such
last day;
"MATERIAL ADVERSE EFFECT" is a reference to:
(a) something having a material adverse effect on the ability of the
Group taken as a whole to perform the material payment obligations
under any of the Finance Documents; or
(b) something having a material adverse effect on the financial
condition of the Group taken as a whole; or
(c) something (other than the Reservations or a change in law or the
interpretation of it) which results in any of the Finance
Documents not being legal, valid and binding on, and enforceable
substantially in accordance with their terms against, any of the
Obligors in a manner and to an extent reasonably considered by the
Majority Lenders to be materially adverse to the interests of the
Lenders;
"MATERIAL SUBSIDIARY" means (x) for so long as they are members of the
Group, Aramex International Limited, Aramex Emirates LLC, Aramex
International Limited (Hong Kong), Al Awsat International Transport and
Arab American International Express Company Ltd and (y) any other member
of the Group:
(a) whose unconsolidated EBITDA is equal to or exceeds 5 per cent. of
the consolidated EBITDA of the Group; or
(b) whose unconsolidated net assets are equal to or exceed 5 per cent.
of the consolidated net assets of the Group; or
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(c) whose unconsolidated gross revenues are equal to or exceed 5 per
cent. of the consolidated gross revenues of the Group,
as determined by reference to the Original Financial Statements or if the
company concerned has become or becomes a Subsidiary after the end of the
financial period to which the Original Financial Statements relate, the
then latest quarterly accounts of the Group delivered under clause 17.1
(Financial Statements) which include such company but so that a
certificate of the auditors that a Subsidiary of the Parent is or is not
a Material Subsidiary (in accordance with this definition) at any time
shall be conclusive and binding on the Parties;
"MEZZANINE FACILITY AGREEMENT" means the $5,000,000 mezzanine facility
agreement dated on or about the date of this Agreement, between (among
others) the Parent, Bidco and Capital Trust N.V. as the same may be
replaced, extended, restated or otherwise amended from time to time
(including by way of conversion into longer term debt);
"MEZZANINE DEBT" means all Financial Indebtedness outstanding under this
Agreement or the Mezzanine Facility Agreement from time to time and any
Financial Indebtedness replacing and/or refinancing the same or any other
Financial Indebtedness ranking junior to the Senior Debt in terms of
priority of repayment pursuant to an intercreditor agreement or
otherwise;
"MEZZANINE WARRANTS" means the warrants (if any) to subscribe for shares
in the Parent, representing up to 5% of the fully diluted share capital
of the Parent, to be issued to any providers or arrangers of the
Mezzanine Debt;
"MONTH" means a period starting on one day in a calendar month and ending
on the numerically corresponding day in the next calendar month, except
that:
(a) if the numerically corresponding day is not a Business Day, that
period shall end on the next Business Day in that calendar month
in which that period is to end if there is one, or if there is
not, on the immediately preceding Business Day; and
(b) if there is no numerically corresponding day in the calendar month
in which that period is to end, that period shall end on the last
Business Day in that calendar month.
The above rules will only apply to the last month of any period;
"OBLIGOR" means the Parent or a Guarantor;
"OFFER TO PURCHASE" means the offer to purchase for cash all outstanding
Common Shares and Option Shares being made by Bidco to the shareholders
of Target in connection with the Amalgamation Agreement;
"OPTION SHARES" means Common Shares issuable in respect of Existing Stock
Options (as defined in the Amalgamation Agreement) that shall have been
conditionally exercised by the holders thereof for purposes of
participating in the Offer to Purchase;
"ORIGINAL FINANCIAL STATEMENTS" means the audited consolidated financial
statements of the Target Group for the last three financial years ended
31 December 2000 together with the Management Accounts;
"ORIGINAL LENDERS" means the financial institutions listed in Part II of
Schedule 1;
"ORIGINAL OBLIGORS" means parties listed as such in Part I of Schedule 1;
"PARENT" means Rasmala Distribution (Cayman) Limited (Co. number 112321),
an exempted company, newly incorporated with limited liability under the
laws of the Cayman Islands;
"PARENT LOAN" means the loan from the Parent to Bidco of up to
$65,000,000 entered into in connection with the Acquisition;
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"PARENT LOAN ASSIGNMENT" means the assignment by way of security dated on
or about the date of this Agreement from the Parent to SHUAA Capital
p.s.c. (as security trustee) in respect of the Parent Loan;
"PARTY" means a party to this Agreement and includes its successors in
title, permitted assigns and permitted transferees;
"PERMITTED ACQUISITION" means an acquisition that is a Permitted
Acquisition under the terms of (and as defined in) the Senior Bridge
Facility Agreement;
"PERMITTED MERGER" means (i) the merger or amalgamation (as the case may
be) between Bidco and Target, (ii) a Permitted Acquisition that is
effected by way of merger (including a subsequent merger of an entity
acquired pursuant to a Permitted Acquisition with a member of the Group
in connection with such Permitted Acquisition) and (iii) any other
merger, amalgamation, demerger or corporate reconstruction within the
Group that the Majority Lenders have previously agreed to in writing;
"PRO FORMA LEVERAGE RATIO" means, in respect of a proposed acquisition,
the ratio of (x) Total Senior Debt as of the last day of the accounting
quarter of the Group then most recently ended for which the Agent has
received financial statements pursuant to this Agreement (determined on
the basis that any Financial Indebtedness assumed or incurred pursuant to
the acquisition is included therein) to (y) EBITDA of the Group for the
period of 12 months ending on such last day (determined on the basis that
EBITDA of the business acquired for such 12 month period is included
therein);
"REPAYMENT DATE" means the date falling six months after the Utilisation
Date or, if so provided in accordance with clause 2.3, the date falling
60 months after the Utilisation Date;
"REPEATING REPRESENTATIONS" means each of the representations set out in
clauses 16.1 - 16.10 (inclusive);
"RESERVATIONS" means such reservations, assumptions or qualifications as
have been made in legal opinions addressed and delivered to the pursuant
to the Finance Documents;
"RESIGNATION LETTER" means a letter substantially in the form set out in
Schedule 7 (Form of Resignation Letter)
"SECURITY DOCUMENTS" means (i) the Bidco Share Charge, (ii) the Target
Share Charge, (iii) the Parent Loan Assignment and (iv) any other
documentary evidence of any Security Interest or guarantee or indemnity
entered into for the purpose of securing, guaranteeing or assuring the
obligations under the Finance Documents;
"SECURITY INTEREST" means a mortgage, charge, pledge, lien or other
security interest securing any obligation of any person or any other
agreement or arrangement having a similar effect;
"SENIOR BRIDGE FACILITY AGREEMENT" means the $30,000,000 bridge facility
agreement dated on or about the date of this Agreement between (among
others) the Parent, Bidco and SHUAA Capital p.s.c. as the same may be
replaced, extended, restated or otherwise amended from time to time
(including by way of conversion into longer term debt) with the prior
written consent of the Arranger;
"SENIOR BRIDGE LOANS" means the "Loans" as defined in the Senior Bridge
Facility Agreement;
"SENIOR DEBT" means all Financial Indebtedness outstanding under the
Senior Bridge Facility Agreement from time to time and any Financial
Indebtedness replacing and/or refinancing the same including by a greater
amount of senior indebtedness) with the prior written consent of the
Arranger;
"SENIOR LOAN" means the "Loan" as defined in the Senior Bridge Facility
Agreement;
6
"SENIOR WARRANTS" has the meaning given to that term in the Senior Bridge
Facility Agreement;
"SENIOR WARRANT INSTRUMENT" has the meaning given to that term in the
Senior Bridge Facility Agreement;
"SHAREHOLDERS AGREEMENT" means the subscription and shareholder agreement
dated on or about the date of this Agreement between the Investor, Xxxx
Xxxxxxxx, Champa Co-investors (Cayman) Limited and the Parent;
"SPECIFIED OFFER CIRCUMSTANCE" means any of the circumstances set out in
items (i) (but so that the reference therein to 75% shall be deemed to be
50.1%) or (ii) of the second paragraph of or paragraph (c), (d) (but so
that the reference therein to "obligations, covenants or agreements"
shall be construed as a reference to "material obligations, covenants or
agreements"), (e) or (f) of the conditions to the Offer to Purchase
comprising Exhibit A to the Amalgamation Agreement;
"SPECIFIED OFFER CONDITIONS" means, in each case, at the relevant time
(a) no Specified Offer Circumstance exists; and (b) Bidco is required to
accept for payment, or pay for, Common Shares under the terms of the
Amalgamation Agreement or the Offer to Purchase or otherwise under United
States securities laws or is obliged to pay for Common Shares pursuant to
the Voting and Tender Agreement (as defined in the Amalgamation
Agreement);
"SUBSIDIARY" of a person means any company or entity directly or
indirectly Controlled by such person;
"TARGET" means Aramex International Limited, a company organised under
the laws of Bermuda;
"TARGET GROUP" means Target and its Subsidiaries from time to time;
"TARGET SHARE CHARGE" means the charge by Bidco over its shares in
Target, in favour of SHUAA Capital p.s.c. as security trustee for the
Finance Parties;
"TAX" means any tax, levy, impost, duty or other charge or withholding of
a similar nature (including any penalty or interest payable in connection
with any failure to pay or any delay in paying any of the same);
"TOTAL COMMITMENTS" means the aggregate of the Commitments being
US$5,000,000 at the date of this Agreement;
"TOTAL SENIOR DEBT" means, at any time, the aggregate amount of Senior
Debt of members of the Group owing to third parties at such time (and for
avoidance of doubt excluding any Mezzanine Debt);
"TRANSFER CERTIFICATE" means a certificate substantially in the form set
out in Schedule 4 (Form of Transfer Certificate) or any other form agreed
between the Agent and the Parent;
"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;
"UNPAID SUM" means any sum due and payable but unpaid by an Obligor under
the Finance Documents;
"UTILISATION" means the utilisation of the Facility;
"UTILISATION DATE" means the date of the Utilisation, being the date on
which the Loan is to be made;
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"UTILISATION REQUEST" means a notice substantially in the form set out in
Schedule 3 (Utilisation Request);
"VAT" means value added tax as provided for in the Value Added Tax Xxx
0000 and any other tax of a similar nature; and
"WARRANTS" means the Mezzanine Warrants and the Senior Warrants.
1.2 CONSTRUCTION
1.2.1 Any reference in this Agreement to:
(a) "ASSETS" includes present and future properties, revenues and
rights of every description;
(b) a "FINANCE DOCUMENT" or any other agreement or instrument is a
reference to that Finance Document or other agreement or
instrument as amended or novated;
(c) "INDEBTEDNESS" includes any obligation (whether incurred as
principal or as surety) for the payment or repayment of money,
whether present or future, actual or contingent;
(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, self-regulatory or other authority or
organisation;
(f) a provision of law is a reference to that provision as amended or
re-enacted; and
(g) unless a contrary indication appears, a time of day is a reference
to London time.
1.2.2 Section, clause and Schedule headings are for ease of reference only.
1.2.3 References to this "Agreement" include this Agreement as the same may be
replaced, extended, restated or otherwise amended from time to time
(including by way of conversion or extension into longer term debt).
1.2.4 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.
1.2.5 A Default or an Event of Default is "CONTINUING" if it has not been
remedied or waived.
1.3 RIGHTS UNDER THE CONTRACTS (RIGHTS OF THIRD PARTIES ) XXX 0000
1.3.1 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) Xxx 0000 is excluded.
1.3.2 Notwithstanding any provision of any Finance Document, the Parties to a
Finance Document do not require the consent of any third party to rescind
or vary any Finance Document at any time.
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SECTION 2: THE FACILITY
2 THE FACILITY
2.1 THE FACILITY
2.1.1 Subject to the terms of this Agreement, the Lenders make available to the
Parent a term loan facility in an amount equal to the Total Commitments.
2.1.2 To the extent that less than 75% of the total number of outstanding
Common Shares of the Target on a fully diluted basis (including Option
Shares) on the date of purchase have been properly tendered and not
properly withdrawn the Commitment of each Lender shall be reduced pro
rata (by the same proportion by which the actual number of such Common
Shares (including Option Shares) properly tendered and not properly
withdrawn is less than 75%; such that at a level of 60% the reduction
would be one-fifth).
2.2 LENDERS' RIGHTS AND OBLIGATIONS
2.2.1 The obligations of each Lender under the Finance Documents are several.
Failure by a Lender to perform its obligations under the Finance
Documents does not affect the obligations of any other Party under the
Finance Documents. No Finance Party is responsible for the obligations of
any other Finance Party under the Finance Documents.
2.2.2 The rights of each Lender under or in connection with the Finance
Documents are separate and independent rights and any debt arising under
the Finance Documents to a Lender from an Obligor shall be a separate and
independent debt.
2.2.3 A Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.
2.3 CONVERSION OF THE FACILITY
2.3.1 Notwithstanding the other provisions of this Agreement, each of the
Finance Parties agrees and undertakes to convert the Facility into a
longer term mezzanine facility (and for such purposes to extend the
Repayment Date until the date falling 60 months after the Utilisation
Date) if the following conditions have been satisfied by the Repayment
Date, namely that:
(a) the Senior Bridge Loans have been repaid in full;
(b) the terms of any facility refinancing or replacing the Senior
Bridge Loans are acceptable to the Finance Parties; and
(c) (concurrently with such extension) the Parent has issued Mezzanine
Warrants to the Lender (pro rata to their Commitments) for 2.5% of
the fully diluted share capital of the Parent pursuant to a
warrant instrument in the form of the warrant instrument in
schedule 9 to this Agreement.
For avoidance of doubt, the Repayment Date shall not be deemed to have
been extended as a result of any extension of the time for repayment of
the Senior Bridge Loans.
2.3.2 The parties undertake with each other to make such amendments to this
Agreement as are necessary or reasonably desirable to reflect the
conversion of the Facility as described in clause 2.3.1 above, such
amendments to be effected on or prior to the initial Repayment Date
hereunder.
3 PURPOSE
3.1 PURPOSE
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The Parent shall apply all amounts borrowed by it under the Facility
towards financing part of the Acquisition, including the payment of fees
and expenses incurred in connection with the Acquisition.
3.2 MONITORING
No Finance Party is bound to monitor or verify the application of any
amount borrowed pursuant to this Agreement.
4 CONDITIONS OF UTILISATION
4.1 INITIAL CONDITIONS PRECEDENT
The Parent may not 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 Parent and the Lenders promptly
upon being so satisfied.
4.2 FURTHER CONDITIONS PRECEDENT
The Lenders will only be obliged to comply with clause 5.4 (Lenders'
participation) if on the date of the Utilisation Request and on the
proposed Utilisation Date the Specified Offer Conditions are satisfied as
of such date.
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SECTION 3: UTILISATION
5 UTILISATION
5.1 DELIVERY OF A UTILISATION REQUEST
The Parent may utilise the Facility by delivery to the Agent of a duly
completed Utilisation Request not later than 10.00 a.m. (Dubai time) on
the Business Day prior to the proposed Utilisation Date.
5.2 COMPLETION OF A UTILISATION REQUEST
A Utilisation Request is irrevocable and will not be regarded as having
been duly completed unless the proposed Utilisation Date is a Business
Day within the Availability Period.
5.3 CURRENCY AND AMOUNT
5.3.1 The currency specified in a Utilisation Request must be Dollars.
5.3.2 The amount of the proposed Loan must be a US$5,000,000 (being the Total
Commitments).
5.4 LENDERS' PARTICIPATION
5.4.1 If the conditions set out in this Agreement have been met, each Lender
shall make its participation in the Loan available through its Facility
Office.
5.4.2 The amount of each Lender's participation in the Loan will be equal to
the proportion borne by its Commitment to the Total Commitments
immediately prior to making the Loan.
5.4.3 The Agent shall notify each Lender of the proposed Utilisation by 12 noon
on the Business Day prior to the proposed Utilisation Date.
5.5 PAYMENTS TO DEPOSITARY
The Parent may specify in the Utilisation Request that the proceeds of
the Loan are to be paid directly to the Depositary in respect of the
Offer to Purchase on behalf of Bidco. Any such payment shall be deemed to
constitute the making of such Loan to the Parent, the on-lending of the
proceeds thereof to Bidco and the payment by Bidco of such amount to such
Depositary in satisfaction of its corresponding obligations in respect of
the Offer to Purchase.
11
SECTION 4: REPAYMENT, PREPAYMENT AND CANCELLATION
6 REPAYMENT
6.1 REPAYMENT OF THE LOAN
The Parent shall repay the Loan either in full on the Repayment Date or,
if in accordance with clause 2.3, the Repayment Date is extended, in two
equal instalments the first on the date falling 48 months after the
Utilisation Date and the second on the Repayment Date.
6.2 REBORROWING
The Parent may not reborrow any part of the Facility which is repaid.
7 PREPAYMENT
7.1 ILLEGALITY
If it becomes unlawful in any jurisdiction for a Lender to perform any of
its obligations as contemplated by this Agreement or to fund its
participation in the Loan:
7.1.1 that Lender shall promptly notify the Agent upon becoming aware of that
event;
7.1.2 upon the Agent notifying the Parent, the Commitment of that Lender will
be immediately cancelled; and
the Parent shall repay that Lender's participation in the Loan made to
the Parent on 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).
7.2 MANDATORY PREPAYMENT
If (x) the Investor ceases to Control the Parent or the Parent ceases to
Control Bidco or Bidco ceases to Control Target (other than pursuant to a
merger or amalgamation of Bidco and Target) and/or (y) all or
substantially all of the business of Target is disposed of:
7.2.1 the Parent shall promptly notify the Agent upon becoming aware of that
event; and
7.2.2 if the Majority Lenders so require, the Agent shall, by not less than 15
days notice to the Parent, cancel the Facility and declare the Loan,
together with accrued interest, and all other amounts accrued under the
Finance Documents immediately due and payable, whereupon the Facility
will be cancelled and all such outstanding amounts will become
immediately due and payable.
7.3 VOLUNTARY PREPAYMENT OF THE LOAN
7.3.1 The Parent may, if it gives the Agent not less than ten Business Days'
(or such shorter period as the Majority Lenders may agree) prior notice,
prepay the whole or any part of the Loan (but, if in part, being an
amount that reduces the Loan by a minimum amount of US$1,000,000 and a
multiple of US$500,000).
7.3.2 If the Parent makes a prepayment pursuant to clause 7.3.1 prior to the
original Repayment Date (unless such prepayment is made in connection
with a refinancing, replacement or extension (including pursuant to
clause 2.3) of the Facility by Rasmala Buyout Fund L.P.) it shall, on the
date of prepayment, pay a prepayment fee to the Agent for the Lenders at
the rate of 2.50 per cent. on the principal amount of the Loan prepaid.
12
7.4 RESTRICTIONS
7.4.1 Any notice of prepayment given by any Party under this clause 7 shall be
irrevocable and, unless a contrary indication appears in this Agreement,
shall specify the date or dates upon which the relevant cancellation or
prepayment is to be made and the amount of that cancellation or
prepayment.
7.4.2 Any prepayment under this Agreement shall be made together with accrued
interest on the amount prepaid and, subject to clause 7.3.2, without
premium or penalty.
7.4.3 The Parent may not reborrow any part of the Facility which is prepaid.
7.4.4 The Parent shall not repay or prepay all or any part of the Loan except
at the times and in the manner expressly provided for in this Agreement
and subject to the terms of the Intercreditor Agreement.
7.4.5 If the Agent receives a notice under this clause 7 it shall promptly
forward a copy of that notice to either the Parent or the affected
Lender, as appropriate.
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SECTION 5: COSTS OF UTILISATION
8 INTEREST
8.1 CALCULATION OF INTEREST
The rate of interest on the Loan is 10 per cent. per annum.
8.2 PAYMENT OF INTEREST
The Parent shall pay accrued interest on the Loan on the Repayment Date
or, if in accordance with clause 2.3, the Repayment Date is extended, on
the dates falling at six monthly intervals after the Utilisation Date,
including the Repayment Date (subject always to the terms of the
Intercreditor Agreement).
8.3 DEFAULT INTEREST
If an Obligor fails to pay:
8.3.1 (in the case of the Parent) any principal amount of the Loan on the
Repayment Date (assuming that the Repayment Date is not extended pursuant
to clause 2.3), it shall pay default interest thereon at a rate equal to
two per cent. per month on the daily outstanding principal amount of the
Loan; such default interest to be payable on the last day of each
calendar month after the Repayment Date and on the date on which the Loan
is finally repaid in full and so that the first such payment of default
interest shall include retrospective default interest at two per cent.
per month on the daily outstanding principal amount of the Loan from (but
excluding) the date falling three months after the Utilisation Date until
the Repayment Date; and
8.3.2 any other amount payable by it under a Finance Document on its due date,
default interest shall accrue on the overdue amount from the due date up
to the date of actual payment (both before and after judgement) at a rate
of two per cent. higher than the rate which would have been payable if
the overdue amount had, during the period of non-payment, constituted a
Loan. Any interest accruing under this clause 8.3.2 shall be immediately
payable by the Obligor on demand by the Agent.
9 FEES
9.1 PLACEMENT FEE
The Parent shall pay to the Arranger on the Utilisation Date a placement
fee of 1.50 per cent. on the amount of the Loan borrowed.
14
SECTION 6: ADDITIONAL PAYMENT OBLIGATIONS
10 TAX GROSS UP AND INDEMNITIES
10.1 DEFINITIONS
10.1.1 In this clause 10:
"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.
"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 10.2 (Tax gross-up) or a payment under clause 10.3
(Tax indemnity).
10.1.2 In this clause 10 a reference to "determines" or "determined" means a
determination made in the absolute discretion of the person making the
determination.
10.2 TAX GROSS-UP
10.2.1 Each Obligor shall make all payments to be made by it without any Tax
Deduction, unless a Tax Deduction is required by law.
10.2.2 The Parent 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 Parent and
that Obligor.
10.2.3 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 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.
10.2.4 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.
10.2.5 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.
10.3 TAX INDEMNITY
10.3.1 The Parent shall (within three Business Days of demand by the Agent) pay
to a Protected Party an amount equal to the loss, liability or cost which
that Protected Party determines will be or has been (directly or
indirectly) suffered for or on account of Tax by that Protected Party.
15
10.3.2 Clause 10.3.1 above shall not apply with respect to any Tax assessed on a
Finance Party:
(a) 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
(b) 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.
10.3.3 A Protected Party making, or intending to make a claim pursuant to clause
10.3.1 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 Parent.
10.3.4 A Protected Party shall, on receiving a payment from an Obligor under
this clause 10.3, notify the Agent.
10.4 TAX CREDIT
10.4.1 If an Obligor makes a Tax Payment and the relevant Finance Party
determines reasonably that:
(a) a Tax Credit is attributable to that Tax Payment; and
(b) that Finance Party has obtained, utilised and retained that Tax
Credit,
the Finance Party shall pay an amount to the Obligor which that Finance
Party determines will leave it (after that payment) in the same after-Tax
position as it would have been in had the Tax Payment not been made by
the Obligor.
10.5 STAMP TAXES
The Parent shall pay and, within three Business Days of demand, indemnify
each Finance Party against any cost, loss or liability that Finance Party
incurs in relation to all stamp duty, registration and other similar
Taxes payable in respect of any Finance Document.
10.6 VALUE ADDED TAX
10.6.1 All consideration payable under a Finance Document by an Obligor to a
Finance Party shall be deemed to be exclusive of any VAT. If VAT is
chargeable, the Obligor shall pay to the Finance Party (in addition to
and at the same time as paying the consideration) an amount equal to the
amount of the VAT.
10.6.2 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.
11 INCREASED COSTS
11.1 INCREASED COSTS
11.1.1 Subject to clause 11.3 (Exceptions) the Parent shall, within three
Business Days of a demand by the Agent, pay for the account of a Finance
Party the amount of any Increased Costs incurred by that Finance Party or
any of its Affiliates as a result of (i) the introduction of or any
change in (or in the interpretation or application of) any law or
regulation or (ii) compliance with any law or regulation made after the
date of this Agreement.
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11.1.2 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.
11.2 INCREASED COST CLAIMS
11.2.1 A Finance Party intending to make a claim pursuant to clause 11
(Increased costs) shall notify the Agent of the event giving rise to the
claim, following which the Agent shall promptly notify the Parent.
11.2.2 Each Finance Party shall, as soon as practicable after a demand by the
Agent, provide a certificate confirming the amount of its Increased
Costs.
11.3 EXCEPTIONS
11.3.1 Clause 11 (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 10.3 (Tax indemnity) (or would have been
compensated for under clause 10.3 (Tax indemnity) but was not so
compensated solely because one of the exclusions in clause 10.3
(Tax indemnity) applied); or
(c) attributable to the wilful breach by the relevant Finance Party or
its Affiliates of any material law or regulation.
11.3.2 In this clause 11.3, a reference to a "TAX DEDUCTION" has the same
meaning given to the term in clause 10.1 (Definitions).
12 OTHER INDEMNITIES
12.1 CURRENCY INDEMNITY
12.1.1 If any sum due from an Obligor under the Finance Documents (a "SUM"), or
any order, judgement 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, judgement or award in relation to
any litigation or arbitration proceedings,
that Obligor shall as an independent obligation, within three Business
Days of demand, indemnify each Finance Party to whom that Sum is due
against any cost, loss or liability arising out of or as a result of the
conversion including any discrepancy between (A) the rate of exchange
used to convert that Sum from the First Currency into the Second Currency
and (B) the rate or rates of exchange available to that person at the
time of its receipt of that Sum.
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12.1.2 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.
12.2 OTHER INDEMNITIES
12.2.1 The Parent shall (or shall procure that an Obligor will), within five
Business Days of demand, indemnify each Lender against any cost, loss or
liability reasonably 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 24 (Sharing among
the Lenders);
(c) funding, or making arrangements to fund, its participation in the
Loan requested by the Parent 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) the Loan (or part of the Loan) not being prepaid in accordance
with a notice of prepayment given by the Parent.
12.3 INDEMNITY TO THE AGENT
12.3.1 The Parent 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 an Event
of Default; or
(b) acting or relying on any notice, request or instruction which it
reasonably believes to be genuine, correct and appropriately
authorised.
13 MITIGATION BY THE LENDERS
13.1 MITIGATION
13.1.1 Each Finance Party shall, in consultation with the Parent, 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 7.1 (Illegality), clause 10 (Tax gross-up and
indemnities) or clause 11 (Increased costs) including (but not limited
to) transferring its rights and obligations under the Finance Documents
to another Affiliate or Facility Office.
13.1.2 Clause 13.1.1 above does not in any way limit the obligations of any
Obligor under the Finance Documents.
13.2 LIMITATION OF LIABILITY
13.2.1 The Parent 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 13.1 (Mitigation).
13.2.2 A Finance Party is not obliged to take any steps under clause 13.1
(Mitigation) if, in the opinion of that Finance Party (acting
reasonably), to do so would be prejudicial to it.
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14 COSTS AND EXPENSES
14.1 TRANSACTION EXPENSES
The Parent shall promptly on demand pay the Agent and the Arranger the
reasonable costs and expenses of the Agent and the Arranger, including
legal fees, travel costs and other costs of diligence reasonably incurred
in the preparation, negotiation and syndication of the Facility.
14.2 AMENDMENT COSTS
If an Obligor requests an amendment, waiver or consent, the Parent shall,
within three Business Days of demand, reimburse the Agent for the amount
of all reasonable costs and expenses (including legal fees) reasonably
incurred by the Agent in responding to, evaluating, negotiating or
complying with that request.
14.3 ENFORCEMENT COSTS
The Parent shall, within five Business Days of demand, pay to each
Finance Party the amount of all reasonable costs and expenses (including
legal fees) reasonably incurred by that Finance Party in connection with
the enforcement of, or the preservation of any rights under, any Finance
Document.
19
SECTION 7: GUARANTEE
15 GUARANTEE AND INDEMNITY
15.1 GUARANTEE AND INDEMNITY
15.1.1 Each Guarantor irrevocably and unconditionally jointly and severally:
(a) guarantees to each Finance Party punctual performance by the
Parent of all the Parent's obligations under the Finance
Documents;
(b) undertakes with each Finance Party that whenever the Parent does
not pay any amount when due under or in connection with any
Finance Document, it shall immediately on demand pay that amount
as if it was the principal obligor; and
(c) indemnifies each Finance Party immediately on demand against any
cost, loss or liability suffered by that Finance Party if any
obligation guaranteed by it is or becomes unenforceable, invalid
or illegal. The amount of the cost, loss or liability shall be
equal to the amount which that Finance Party would otherwise have
been entitled to recover.
Provided that the obligations of each Guarantor referred to above shall
not extend to any amount to the extent that to do so would be in breach
of applicable laws (including relating to financial assistance) binding
on such Guarantor provided that such Guarantor shall have taken any
requisite procedural steps in order to avoid or mitigate any such breach
including, in the case of financial assistance, the requisite
determination of solvency.
15.2 CONTINUING GUARANTEE
This guarantee is a continuing guarantee and will extend to the ultimate
balance of sums payable by any Obligor under the Finance Documents,
regardless of any intermediate payment or discharge in whole or in part.
15.3 REINSTATEMENT
15.3.1 If any payment by an Obligor or any discharge given by a Finance Party
(whether in respect of the obligations of any Obligor or any security for
those obligations or otherwise) is avoided or reduced as a result of
insolvency or any similar event:
(a) the liability of each Obligor shall continue as if the payment,
discharge, avoidance or reduction had not occurred; and
(b) each Finance Party shall be entitled to recover the value or
amount of that security or payment from each Obligor, as if the
payment, discharge, avoidance or reduction had not occurred.
15.4 WAIVER OF DEFENCES
15.4.1 The obligations of each Guarantor under this clause 15 will not be
affected by an act, omission, matter or thing which, but for this clause,
would reduce, release or prejudice any of its obligations under this
clause 15 (without limitation and whether or not known to it or any
Finance Party) including:
(a) any time, waiver or consent granted to, or composition with, any
Obligor or other person;
(b) the release of any other Obligor or any other person under the
terms of any composition or arrangement with any creditor of any
Obligor or Material Subsidiary;
20
(c) the taking, variation, compromise, exchange, renewal or release
of, or refusal or neglect to perfect, take up or enforce, any
rights against, or security over assets of, any Obligor or other
person or any non-presentation or non-observance of any formality
or other requirement in respect of any instrument or any failure
to realise the full value of any security;
(d) any incapacity or lack of power, authority or legal personality of
or dissolution or change in the members or status of an Obligor or
any other person;
(e) any amendment (however fundamental) or replacement of a Finance
Document or any other document or security;
(f) any unenforceability, illegality or invalidity of any obligation
of any person under any Finance Document or any other document or
security; or
(g) any insolvency or similar proceedings.
15.5 IMMEDIATE RECOURSE
Each Guarantor waives any right it may have of first requiring any
Finance Party (or any trustee or agent on its behalf) to proceed against
or enforce any other rights or security or claim payment from any person
before claiming from that Guarantor under this clause 15. This waiver
applies irrespective of any law or any provision of a Finance Document to
the contrary.
15.6 APPROPRIATIONS
15.6.1 Until all amounts which may be or become payable by the Obligors under or
in connection with the Finance Documents have been irrevocably paid in
full, each Finance Party (or any trustee or agent on its behalf) may:
(a) refrain from applying or enforcing any other moneys, security or
rights held or received by that Finance Party (or any trustee or
agent on its behalf) in respect of those amounts, or apply and
enforce the same in such manner and order as it sees fit (whether
against those amounts or otherwise) and no Guarantor shall be
entitled to the benefit of the same; and
(b) hold in an interest-bearing suspense account any moneys received
from any Guarantor or on account of any Guarantor's liability
under this clause 15.
15.7 DEFERRAL OF GUARANTORS' RIGHTS
15.7.1 Until all amounts which may be or become payable by the Obligors under or
in connection with the Finance Documents have been irrevocably paid in
full and unless the Agent otherwise directs, no Guarantor will exercise
any rights which it may have by reason of performance by it of its
obligations under the Finance Documents:
(a) to be indemnified by an Obligor;
(b) to claim any contribution from any other guarantor of any
Obligor's obligations under the Finance Documents; and/or
(c) to take the benefit (in whole or in part and whether by way of
subrogation or otherwise) of any rights of the Finance Parties
under the Finance Documents or of any other guarantee or security
taken pursuant to, or in connection with, the Finance Documents by
any Finance Party.
15.8 ADDITIONAL SECURITY
This guarantee is in addition to and is not in any way prejudiced by any
other guarantee or Security Interest now or subsequently held by any
Finance Party.
21
SECTION 8: REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT
16 REPRESENTATIONS
Each Original Obligor makes the representations and warranties set out in
this clause 16 to each Finance Party on the date of this Agreement.
16.1 STATUS
16.1.1 It and each of the Material Subsidiaries is a corporation, duly
incorporated and validly existing under the law of its jurisdiction of
incorporation.
16.1.2 It and each of the Material Subsidiaries has the power to own its assets
and carry on its business as it is being conducted and is envisaged to be
conducted after the Acquisition.
16.2 BINDING OBLIGATIONS
The material obligations expressed to be assumed by it in each Finance
Document are, subject to the Reservations and other general principles of
law limiting its obligations which are specifically referred to in any
legal opinion delivered pursuant to clause 4 (Conditions of Utilisation)
or clause 21 (Changes to the Obligors), legal, valid, binding and
enforceable obligations.
16.3 NON-CONFLICT WITH OTHER OBLIGATIONS
16.3.1 The entry into and performance by it of, and the transactions
contemplated by, the Finance Documents do not and will not conflict with:
(a) any law or regulation applicable to it;
(b) the constitutional documents of it or any Material Subsidiary; or
(c) any agreement or instrument binding upon it or any Material
Subsidiary or any of its or any Material Subsidiary's material
assets.
16.4 POWER AND AUTHORITY
It has the power to enter into, perform and deliver, and has taken all
necessary action to authorise its entry into, performance and delivery
of, the Finance Documents to which it is a party and the transactions
contemplated by those Finance Documents.
16.5 VALIDITY AND ADMISSIBILITY IN EVIDENCE
16.5.1 All Authorisations required:
(a) to enable it lawfully to enter into, exercise its rights and
comply with its obligations in the Finance Documents to which it
is a party; and
(b) to make the Finance Documents to which it is a party admissible in
evidence in its jurisdiction of incorporation,
have been obtained or effected and are in full force and effect.
16.6 GOVERNING LAW AND ENFORCEMENT
Subject to the Reservations:
16.6.1 the choice of English law as the governing law of the relevant Finance
Documents will be recognised and enforced in its jurisdiction of
incorporation; and
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16.6.2 any judgement obtained in England in relation to a Finance Document will
be recognised and enforced in its jurisdiction of incorporation.
16.7 DEDUCTION OF TAX
Subject to the Reservations, 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.
16.8 NO FILING OR STAMP TAXES
Subject to the Reservations, under the laws of its jurisdiction of
incorporation it is not necessary that the Finance Documents be filed,
recorded or enrolled with any court or other authority in that
jurisdiction or that any stamp, registration or similar tax be paid on or
in relation to the Finance Documents or the transactions contemplated by
the Finance Documents.
16.9 NO DEFAULT
16.9.1 No Event of Default is continuing or would reasonably be expected to
result from the making of any Utilisation.
16.9.2 No other event or circumstance is outstanding which constitutes a default
under any other material agreement or instrument which is binding on it
or to which its material assets are subject which would reasonably be
expected to have a Material Adverse Effect.
16.10 PARI PASSU RANKING
Its payment obligations under the Finance Documents rank at least pari
passu with the claims of all its other unsecured and unsubordinated
creditors, except for obligations mandatorily preferred by law applying
to companies in its jurisdictions generally.
16.11 ORIGINAL FINANCIAL STATEMENTS
16.11.1 The Original Financial Statements were prepared in accordance with IAS
consistently applied (except as may be indicated in the notes thereto).
16.11.2 The Original Financial Statements fairly present the consolidated
financial position of the Target Group as of their respective dates or,
as applicable, during the relevant period to which they refer (except
that the September 2001 management accounts are subject to normal
year-end adjustments which are not likely to be materially adverse to the
Target Group taken as a whole).
16.12 NO PROCEEDINGS PENDING OR THREATENED
No litigation, arbitration or administrative proceedings of or before any
court, arbitral body or agency which is not frivolous, vexatious or an
abuse of the court's process or commenced for nuisance purposes and
which, if adversely determined, would reasonably be likely to have a
Material Adverse Effect have (so far as the Parent is aware) been started
or threatened against it or any of its Material Subsidiaries.
16.13 REPETITION
16.13.1 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
(b) in the case of an Additional Guarantor, the day on which it
becomes (or it is proposed that the company becomes) an Additional
Guarantor.
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17 INFORMATION UNDERTAKINGS
The undertakings in this clause 17 remain in force from the date of this
Agreement for so long as any amount is outstanding under the Finance
Documents or any Commitment is in force.
17.1 FINANCIAL STATEMENTS
Following the date on which Bidco has Control of the Target, the Parent
shall supply to the Agent in sufficient copies for all the Lenders
unaudited consolidated quarterly management accounts for (a) the Group
and (b) the Target Group as soon as the same become available, but (other
than the December 2001 accounts) in any event within 30 days after the
end of each period to which such statements refer. Such management
accounts shall include the management accounts for the 12 months ending
31 December 2001.
17.2 REQUIREMENTS AS TO FINANCIAL STATEMENTS
17.2.1 Each set of financial statements delivered by the Parent pursuant to
clause 17.1 (Financial statements) shall be certified by a director of
the Parent as fairly and accurately representing the Group's financial
condition as at the date as at which those financial statements were
drawn up.
17.3 INFORMATION: MISCELLANEOUS
17.3.1 The Parent shall supply to the Agent:
(a) all documents dispatched by the Parent to its shareholders (or any
class of them) or its creditors generally at the same time as they
are dispatched or within reasonable time thereafter;
(b) upon becoming aware of them, the details of any litigation,
arbitration or administrative proceedings which are current,
threatened or pending against any Obligor or any Material
Subsidiary (which is not frivolous, vexatious or an abuse of the
court's process or commenced for nuisance purposes) and which
would reasonably be expected to, if adversely determined, have a
Material Adverse Effect; and
(c) such further information regarding the financial condition of an
Obligor or any Material Subsidiary as any Finance Party (through
the Agent) may reasonably request.
17.4 NOTIFICATION OF DEFAULT
Each Obligor shall notify the Agent of any Default (and the steps, if
any, being taken to remedy it) promptly upon becoming aware of its
occurrence (unless that Obligor is aware that a notification has already
been provided by another Obligor).
18 GENERAL UNDERTAKINGS
The undertakings in this clause 18 remain in force from the date of this
Agreement for so long as any amount is outstanding under the Finance
Documents or any Commitment is in force.
18.1 AUTHORISATIONS
18.1.1 Each Obligor shall:
(a) obtain, comply with and do all that is reasonably necessary to
maintain in full force and effect; and
(b) supply certified copies to the Agent of,
24
any Authorisation required under any law or regulation of its
jurisdiction of incorporation to enable it to perform its material
obligations under the Finance Documents and to ensure the legality,
validity, enforceability or admissibility in evidence in its jurisdiction
of incorporation of any Finance Document.
18.2 COMPLIANCE WITH LAWS
Each Obligor shall comply in all respects with all laws to which it may
be subject, if failure so to comply would be reasonably likely to result
in a Material Adverse Effect.
18.3 NEGATIVE PLEDGE
18.3.1 No Obligor shall (and the Parent shall ensure that no Material Subsidiary
will) create or permit to subsist any Security Interest over any of its
assets.
18.3.2 No Obligor shall (and the Parent shall ensure that no Material Subsidiary
will):
(a) sell, transfer or otherwise dispose of any of its assets on terms
whereby they are or may be leased to or re-acquired by such
Obligor or Material Subsidiary;
(b) sell, transfer or otherwise dispose of any of its receivables on
recourse terms;
(c) enter into any arrangement under which money or the benefit of a
bank or other account may be applied, set-off or made subject to a
combination of accounts; or
(d) enter into any other preferential arrangement having a similar
effect,
in circumstances where the arrangement or transaction is entered into
primarily as a method of raising Financial Indebtedness or of financing
the acquisition of an asset.
18.3.3 Clauses 18.3.1 and 18.3.2 above do not apply to:
(a) any Security Interest listed in Schedule 5 (Existing Security
Interest) except to the extent the principal amount secured by
that Security Interest exceeds the amount stated in that Schedule;
(b) any netting or set-off arrangement entered into by any of the
Obligors or any Subsidiary in the ordinary course of its banking
arrangements for the purpose of netting debit and credit balances;
(c) any lien arising by operation of law and in the ordinary course of
trading;
(d) any Security Interest over or affecting any asset acquired by any
of the Obligors or any member of the Group after the date of this
Agreement if:
(i) the Security Interest was not created in contemplation of
the acquisition of that asset by any of the Obligors or any
member of the Group;
(ii) the principal amount secured has not been increased in
contemplation of, or since the acquisition of that asset by
any of the Obligors or any member of the Group; and
(iii) (other than in respect of an asset acquired pursuant to a
Permitted Acquisition) the Security Interest is removed or
discharged within three months of the date of acquisition
of such asset;
(e) any Security Interest over or affecting any asset of any company
which becomes a Material Subsidiary after the date of this
Agreement, where the Security Interest is created prior to the
date on which that company becomes a Material Subsidiary, if:
25
(i) the Security Interest was not created in contemplation or
as a direct or indirect result of the acquisition of that
company;
(ii) the principal amount secured has not increased in
contemplation or as a direct or indirect result of or since
the acquisition of that company; and
(iii) the Security Interest is removed or discharged within six
months of that company becoming a Material Subsidiary;
(f) any Security Interest securing the Mezzanine Debt (including the
Investor Loan) or (otherwise) for the benefit of any of the
Finance Parties;
(g) any Security Interest arising under the "Security Documents" as
defined in the Senior Bridge Facility Agreement;
(h) any Security Interest securing Financial Indebtedness incurred or
assumed in connection with a Permitted Acquisition;
(i) any Security Interest that is created with the prior written
consent of the Majority Lenders; or
(j) any Security Interest securing Financial Indebtedness (not being
moneys borrowed by way of loan) the principal amount of which
(when aggregated with the principal amount of any other Financial
Indebtedness which has the benefit of a Security Interest other
than any permitted under paragraphs (a) to (i) above) does not
exceed US$1,000,000.
18.4 DISPOSALS
18.4.1 No Obligor shall (and the Parent shall ensure that no Material Subsidiary
will), enter into a single transaction or a series of transactions
(whether related or not) and whether voluntary or involuntary to sell,
lease, transfer or otherwise dispose of any asset.
18.4.2 Clause 18.4.1 above does not apply to any sale, lease, transfer or other
disposal:
(a) made in the ordinary course of business of the disposing entity;
(b) of assets in exchange for other assets comparable or superior as
to type, value and quality;
(c) where the higher of the market value or consideration receivable
(when aggregated with the higher of the market value or
consideration receivable for any other sale, lease, transfer or
other disposal, other than any permitted under paragraphs (a) to
(b) above or (d) below) does not exceed US$500,000 during the
lifetime of the Facility; or
(d) the application of cash or money not otherwise prohibited under
this Agreement.
18.5 MERGER
No Obligor shall (and the Parent shall ensure that no Material Subsidiary
will) enter into any amalgamation, demerger, merger or corporate
reconstruction, other than a Permitted Merger.
18.6 CHANGE OF BUSINESS
The Parent shall procure that no substantial change is made to the
general nature of the business of any of the Obligors or any Material
Subsidiary from that carried on at the date of this Agreement.
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18.7 NO PAYMENT OF DIVIDEND
The Parent will not pay (including by way of set-off, combination of
accounts or otherwise) any dividend or make any other distribution or
payment (whether in cash or in specie), including any interest and/or
unpaid dividends, in respect of equity or any other share capital for the
time being in issue.
18.8 ISSUES OF SHARES
The Parent shall ensure that no member of the Group (other than the
Parent) shall issue any further shares other than to a wholly-owned
member of the Group or alter any rights attaching to its issued shares in
existence at the date of this Agreement, in either case, to the extent
prejudicial to the interests of the Lenders (in such capacity) in any
material respect (as determined by the Agent acting reasonably) provided
that the issue of shares pursuant to share warrants or pursuant to any
scheme to incentivise employees (not being shares issued by Bidco or by
Target (if Bidco would cease to Control Target)) shall in any event be
permitted and provided further that Bidco may issue shares to the Parent
to the extent that the proceeds of the subscription therefor are applied
in repaying the Parent Loan (and on the basis that such shares are
subject to the Bidco Share Charge).
18.9 FINANCIAL INDEBTEDNESS
The Parent shall ensure that it and no Subsidiary shall incur any
Financial Indebtedness after the date of this Agreement other than:
18.9.1 The Senior Debt and Mezzanine Debt;
18.9.2 Indebtedness incurred in connection with any Permitted Acquisition;
18.9.3 Indebtedness owing by one member of the Group to another member of the
Group;
18.9.4 Indebtedness referred to in parts (d), (g) or (h) of the definition of
"Financial Indebtedness" incurred in the ordinary course of business of a
member of the Group;
18.9.5 Indebtedness in respect of guarantees and letters of credit entered into
(a) in the ordinary course of business of any member of the Group or (b)
by one member of the Group for the benefit of another member of the Group
where the relevant principal obligation of such second member of the
Group is permitted under this Agreement;
18.9.6 Indebtedness, the proceeds of which are applied (directly or indirectly
through intercompany loans and/or dividends) to repay, in whole or in
part, the Loan, the Investor Loan or the Senior Debt;
18.9.7 Indebtedness in addition to that permitted under clauses 18.9.1 to 18.9.6
above outstanding as of the date of this Agreement;
18.9.8 Indebtedness in addition to that permitted under clauses 18.9.1 to 18.9.7
above not exceeding (in aggregate at any time) US$500,000.
18.10 ACQUISITIONS
The Parent shall ensure that no member of the Group shall acquire any
business (whether as an acquisition of assets, liabilities, and/or one or
more corporate entities) as a going concern other than pursuant to a
Permitted Acquisition and so that for avoidance of doubt this clause
18.10 shall not prevent any member of the Group from incorporating or
acquiring a new company with no (or immaterial) assets.
27
18.11 RIGHTS IN RESPECT OF THE ACQUISITION
If the Agent so requests the Parent and Bidco shall enforce their
respective rights under the Amalgamation Agreement and/or the
Shareholders Agreement in respect of the Acquisition if a failure to do
so would be materially prejudicial to the interests of the Finance
Parties.
19 EVENTS OF DEFAULT
Each of the events or circumstances set out in clause 19 is an Event of
Default.
19.1 NON-PAYMENT
19.1.1 An Obligor does not pay on the due date any amount payable pursuant to a
Finance Document at the place at and in the currency in which it is
expressed to be payable unless:
(a) its failure to pay is caused by administrative or technical error
(as determined by the Agent to its reasonable satisfaction); and
(b) payment is made within two Business Days of its due date.
19.2 OTHER OBLIGATIONS
19.2.1 An Obligor does not comply with any material provision of the Finance
Documents (other than those referred to in clause 19.1 (Non-payment), but
so that no Event of Default will occur if the failure to comply is
capable of remedy and is remedied within 14 Business Days of the Agent
giving notice to the Parent or the Parent becoming aware of the failure
to comply.
19.3 MISREPRESENTATION
Any representation or statement made or deemed to be made by an Obligor
in the Finance Documents or any material representation or statement made
in any other document delivered by or on behalf of any Obligor under or
in connection with any Finance Document is or proves to have been
incorrect or misleading in any material respect when made or deemed to be
made.
19.4 CROSS DEFAULT
19.4.1 Any Financial Indebtedness of any Obligor or any Material Subsidiary is
not paid when due nor within any originally applicable grace period.
19.4.2 Any Financial Indebtedness of any Obligor or any Material Subsidiary is
declared to be or otherwise becomes due and payable prior to its
specified maturity as a result of an event of default (however
described).
19.4.3 Any commitment for any Financial Indebtedness of any Obligor or any
Material Subsidiary is cancelled or suspended by a creditor of any
Obligor or any Material Subsidiary as a result of an event of default
(however described).
19.4.4 Any creditor of any Obligor or any Material Subsidiary becomes entitled
to declare any Financial Indebtedness of any Obligor or any Material
Subsidiary due and payable prior to its specified maturity as a result of
an event of default (however described).
19.4.5 No Event of Default will occur under this clause 19.4 if the aggregate
amount of Financial Indebtedness or commitment for Financial Indebtedness
falling within clauses 19.4.1 to 19.4.4 above is less than US$2,000,000
(or its equivalent in any other currency or currencies).
28
19.5 INSOLVENCY
19.5.1 An Obligor or any Material Subsidiary is unable or admits inability to
pay its debts as they fall due, suspends making payments on any of its
debts or, by reason of actual or anticipated financial difficulties,
commences negotiations with one or more of its creditors with a view to
rescheduling any of its indebtedness.
19.5.2 The value of the assets of any Obligor or any Material Subsidiary is less
than its liabilities (taking into account contingent and prospective
liabilities).
19.5.3 A moratorium is declared in respect of any indebtedness of any Obligor or
any Material Subsidiary.
19.6 INSOLVENCY PROCEEDINGS
19.6.1 Any corporate action, legal proceedings or other procedure or step is
taken in relation to:
(a) the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way
of voluntary arrangement, scheme of arrangement or otherwise) of
any of the Obligors or any Material Subsidiary;
(b) a composition, assignment or arrangement with any creditor of any
of the Obligors or any Material Subsidiary;
(c) the appointment of a liquidator, receiver, administrator,
administrative receiver, compulsory manager or other similar
officer in respect of any of the Obligors or any Material
Subsidiary or any of its assets; or
(d) enforcement of any Security Interest over any assets of any of the
Obligors or any Material Subsidiary,
or any analogous procedure or step is taken in any jurisdiction.
19.7 CREDITORS' PROCESS
Any expropriation, attachment, sequestration, distress or execution
affects any asset or assets of an Obligor or a Material Subsidiary having
an aggregate value of US$250,000 and is not discharged within 30 days.
19.8 UNLAWFULNESS
It is or becomes unlawful for an Obligor to perform any of its material
obligations under the Finance Documents.
19.9 REPUDIATION
An Obligor repudiates a Finance Document.
19.10 ACCELERATION
19.10.1 On and at any time after the occurrence of an Event of Default
(following completion of the Acquisition) which is continuing the Agent
may, and shall if so directed by the Majority Lenders, by written notice
to the Parent:
(a) cancel the Total Commitments whereupon they shall immediately be
cancelled;
(b) declare that all or part of the Loan, together with accrued
interest, and all other amounts accrued under the Finance
Documents be immediately due and payable, whereupon they shall
become immediately due and payable; and/or
29
(c) declare that all or part of the Loan be payable on demand,
whereupon it shall immediately become payable on demand by the
Agent on the instructions of the Majority Lenders.
30
SECTION 9: CHANGES TO PARTIES
20 CHANGES TO THE LENDERS
20.1 ASSIGNMENTS AND TRANSFERS BY THE LENDERS
20.1.1 Subject to this clause 20, a Lender (the "EXISTING LENDER") may at any
time after the first Utilisation Date:
(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").
20.2 CONDITIONS OF ASSIGNMENT OR TRANSFER
20.2.1 The consent of the Parent is required for an assignment or transfer by a
Lender, unless the assignment or transfer is to another Lender or an
Affiliate of a Lender.
20.2.2 The consent of the Parent to an assignment or transfer must not be
unreasonably withheld or delayed. The Parent will be deemed to have given
its consent five Business Days after the Lender has requested it unless
consent is expressly refused by the Parent within that time.
20.2.3 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 assume the same obligations to the
other Finance Parties as it would have been under if it was an Original
Lender.
20.2.4 A transfer will only be effective if the procedure set out in clause 20.5
(Procedure for transfer) is complied with.
20.2.5 If:
(a) a Lender assigns or transfers any of its rights or obligations
under the Finance Documents or changes its Facility Office; and
(b) as a result of circumstances existing at the date the assignment,
transfer or change occurs, an Obligor would be obliged to make a
payment to the New Lender or Lender acting through its new
Facility Office under clause 10 (Tax gross-up and indemnities) or
clause 11 (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.
20.3 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 US$100.
20.4 LIMITATION OF RESPONSIBILITY OF EXISTING LENDERS
20.4.1 Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender
for:
31
(a) the legality, validity, effectiveness, adequacy or enforceability
of the Finance Documents or any other documents;
(b) the financial condition of any Obligor;
(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.
20.4.2 Each New Lender confirms to the Existing Lender and the other Finance
Parties that it:
(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 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.
20.4.3 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 20; 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.
20.5 PROCEDURE FOR TRANSFER
20.5.1 Subject to the conditions set out in clause 20.2 (Conditions of
assignment or transfer) a transfer is effected in accordance with clause
20.5.2 below 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.
20.5.2 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 the
Finance Documents each of the Obligors and the Existing Lender
shall be released from further obligations towards one another
under the Finance Documents and their respective rights against
one another shall be cancelled (being the "DISCHARGED RIGHTS AND
OBLIGATIONS");
(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 Arranger, 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
32
and/or obligations acquired or assumed by it as a result of the
transfer and to that extent the Agent, the Arranger 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".
20.6 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
(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, any Material Subsidiary and the
Finance Documents as that Lender shall consider appropriate if, in
relation to paragraphs (a) and (b) above, the person to whom the
information is to be given shall have entered into a Confidentiality
Undertaking.
21 CHANGES TO THE OBLIGORS
21.1 ASSIGNMENTS AND TRANSFER BY OBLIGORS
No Obligor may assign any of its rights or transfer any of its rights or
obligations under the Finance Documents other than as agreed between the
Parent and the Agent (acting on behalf of all the Lenders).
21.2 ADDITIONAL GUARANTORS
21.2.1 The Parent may request that any of its wholly owned Subsidiaries become
an Additional Guarantor. That Subsidiary shall become an Additional
Guarantor if:
(a) the Parent delivers to the Agent a duly completed and executed
Accession Letter; and
(b) the Agent has received all of the documents and other evidence
listed in Part II of Schedule 2 (Conditions precedent) in relation
to that Additional Guarantor, each in form and substance
satisfactory to the Agent.
21.2.2 The Agent shall notify the Parent and the Lenders promptly upon being
satisfied that it has received (in form and substance satisfactory to it)
all the documents and other evidence listed in Part II of Schedule 2
(Conditions precedent).
21.3 REPETITION OF REPRESENTATIONS
Delivery of an Accession Letter constitutes confirmation by the relevant
Subsidiary that the Repeating Representations are true and correct in
relation to it as at the date of delivery as if made by reference to the
facts and circumstances then existing.
21.4 RESIGNATION OF A GUARANTOR
21.4.1 The Parent may request that a Guarantor ceases to be a Guarantor by
delivering to the Agent a Resignation Letter.
33
21.4.2 The Agent shall accept a Resignation Letter and notify the Parent and the
Lenders of its acceptance if:
(a) no Default is continuing or would result from the acceptance of
the Resignation Letter (and the Parent has confirmed this is the
case); and
(b) all the Lenders have consented to the Parent's request.
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SECTION 10: THE FINANCE PARTIES
22 ROLE OF THE AGENT AND THE ARRANGER
22.1 APPOINTMENT OF THE AGENT
22.1.1 Each of the Arranger and the Lenders appoints the Agent to act as its
agent under and in connection with the Finance Documents.
22.1.2 Each of the Arranger and the Lenders 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.
22.2 DUTIES OF THE AGENT
22.2.1 The Agent shall promptly forward to a Party the original or a copy of any
document which is delivered to the Agent for that Party by any other
Party.
22.2.2 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 Lenders.
22.2.3 The Agent shall promptly notify the Lenders of any Default arising under
clause 19.1 (Non-payment).
22.2.4 The Agent's duties under the Finance Documents are solely mechanical and
administrative in nature.
22.3 ROLE OF THE ARRANGER
Except as specifically provided in the Finance Documents, the Arranger
has no obligations of any kind to any other Party under or in connection
with any Finance Document.
22.4 NO FIDUCIARY DUTIES
22.4.1 Nothing in this Agreement constitutes the Agent or the Arranger as a
trustee or fiduciary of any other person.
22.4.2 Neither the Agent nor the Arranger shall be bound to account to any
Lender for any sum or the profit element of any sum received by it for
its own account.
22.5 BUSINESS WITH THE GROUP
The Agent and the Arranger may accept deposits from, lend money to and
generally engage in any kind of banking or other business with any member
of the Group.
22.6 RIGHTS AND DISCRETIONS OF THE AGENT
22.6.1 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.
22.6.2 The Agent may assume (unless it has received notice to the contrary in
its capacity as agent for the Lenders) that:
35
(a) no Default has occurred (unless it has actual knowledge of a
Default arising under clause 19.1 (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 Parent (other than a Utilisation
Request) is made on behalf of and with the consent and knowledge
of all the Obligors.
22.6.3 The Agent may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.
22.6.4 The Agent may act in relation to the Finance Documents through its
personnel and agents.
22.7 MAJORITY LENDERS' INSTRUCTIONS
22.7.1 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.
22.7.2 Unless a contrary indication appears in a Finance Document, any
instructions given by the Majority Lenders will be binding on all the
Lenders and the Arranger.
22.7.3 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.
22.7.4 In the absence of instructions from the Majority Lenders, (or, if
appropriate, the Lenders) the Agent may act (or refrain from taking
action) as it considers to be in the best interest of the Lenders.
22.7.5 The Agent is not authorised to act on behalf of a Lender (without first
obtaining that Lender's consent) in any legal or arbitration proceedings
relating to any Finance Document.
22.8 RESPONSIBILITY FOR DOCUMENTATION
22.8.1 Neither the Agent nor the Arranger:
(a) is responsible for the adequacy, accuracy and/or completeness of
any information (whether oral or written) supplied by the Agent,
the Arranger, an Obligor or any other person given in or in
connection with any Finance Document; or
(b) is responsible for the legality, validity, effectiveness, adequacy
or enforceability of any Finance Document or any other agreement,
arrangement or document entered into, made or executed in
anticipation of or in connection with any Finance Document.
22.9 EXCLUSION OF LIABILITY
22.9.1 Without limiting clause 22.9.2 below, 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.
22.9.2 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. Any third party referred to
in
36
this clause 22.9.2 may enjoy the benefit and enforce the terms of this
clause in accordance with the provisions of the Contracts (Rights of
Third Parties) Xxx 0000.
22.9.3 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 the Agent has taken all necessary
steps as soon as reasonably practicable to comply with the regulations or
operating procedures of any recognised clearing or settlement system used
by the Agent for that purpose.
22.10 LENDERS' INDEMNITY TO THE AGENT
Each Lender shall (in proportion to its share of the Total Commitments
or, if the Total Commitments are then zero, to its share of the Total
Commitments immediately prior to their reduction to zero) indemnify the
Agent, within three Business Days of demand, against any cost, loss or
liability incurred by the Agent (otherwise than by reason of the Agent's
gross negligence or wilful misconduct) in acting as Agent under the
Finance Documents (unless the Agent has been reimbursed by an Obligor
pursuant to a Finance Document).
22.11 RESIGNATION OF THE AGENT
22.11.1 The Agent may resign and appoint one of its Affiliates acting through an
office in a jurisdiction reasonably acceptable to the Parent as successor
by giving notice to the Lenders and the Parent.
22.11.2 Alternatively the Agent may resign by giving notice to the Lenders and
the Parent, in which case the Majority Lenders (after consultation with
the Parent) may appoint a successor Agent.
22.11.3 If the Majority Lenders have not appointed a successor Agent in
accordance with clause 22.11.2 above within 30 days after notice of
resignation was given, the Agent (after consultation with the Parent) may
appoint a successor Agent (acting through an office in a jurisdiction
reasonably acceptable to the Parent).
22.11.4 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.
22.11.5 The Agent's resignation notice shall only take effect upon the
appointment of a successor.
22.11.6 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 22. 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.
22.12 CONFIDENTIALITY
22.12.1 In acting as agent for the Finance Parties, the Agent shall be regarded
as acting through its agency division which shall be treated as a
separate entity from any other of its divisions or departments.
22.12.2 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.
22.12.3 Notwithstanding any other provision of any Finance Document to the
contrary, neither the Agent nor the Arranger are 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.
37
22.13 RELATIONSHIP WITH THE LENDERS
The Agent may treat each Lender as a Lender, entitled to payments under
this Agreement and acting through its Facility Office unless it has
received not less than ten Business Days prior notice from that Lender to
the contrary in accordance with the terms of this Agreement.
22.14 CREDIT APPRAISAL BY THE LENDERS
22.14.1 Without affecting the responsibility of any Obligor for information
supplied by it or on its behalf in connection with any Finance Document,
each Lender confirms to the Agent and the Arranger that it has been, and
will continue to be, solely responsible for making its own independent
appraisal and investigation of all risks arising under or in connection
with any Finance Document including but not limited to:
(a) the financial condition, status and nature of each Obligor;
(b) the legality, validity, effectiveness, adequacy or enforceability
of any Finance Document and any other agreement, arrangement or
document entered into, made or executed in anticipation of, under
or in connection with any Finance Document;
(c) whether that Lender has recourse, and the nature and extent of
that recourse, against any Party or any of its respective assets
under or in connection with any Finance Document, the transactions
contemplated by the Finance Documents or any other agreement,
arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document;
and
(d) the adequacy, accuracy and/or completeness of the Information
Memorandum and any other information provided by the Agent, any
Party or by any other person under or in connection with any
Finance Document, the transactions contemplated by the Finance
Documents or any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection
with any Finance Document.
23 CONDUCT OF BUSINESS BY THE FINANCE PARTIES
23.1.1 No provision of this Agreement will:
(a) interfere with the right of any Finance Party to arrange its
affairs (tax or otherwise) in whatever manner it thinks fit;
(b) oblige any Finance Party to investigate or claim any credit,
relief, remission or repayment available to it or the extent,
order and manner of any claim; or
(c) oblige any Finance Party to disclose any information relating to
its affairs (tax or otherwise) or any computations in respect of
Tax.
24 SHARING AMONG THE LENDERS
24.1 PAYMENTS TO LENDERS
24.1.1 If a Lender (a "RECOVERING LENDER") receives or recovers any amount from
an Obligor other than in accordance with clause 25 (Payment mechanics)
and applies that amount to a payment due under the Finance Documents
then:
(a) the Recovering Lender shall, within ten Business Days, notify
details of the receipt or recovery, to the Agent;
(b) the Agent shall determine whether the receipt or recovery is in
excess of the amount the Recovering Lender would have been paid
had the receipt or recovery been received or made by the Agent and
distributed in accordance with clause 25 (Payment mechanics),
38
without taking account of any Tax which would be imposed on the
Agent in relation to the receipt, recovery or distribution; and
(c) the Recovering Lender shall, within ten Business Days of demand by
the Agent, pay to the Agent an amount (the "SHARING PAYMENT")
equal to such receipt or recovery less any amount which the Agent
determines may be retained by the Recovering Lender as its share
of any payment to be made, in accordance with clause 25.5 (Partial
payments).
24.2 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 25.5 (Partial
payments).
24.3 RECOVERING LENDER'S RIGHTS
24.3.1 On a distribution by the Agent under clause 24.2 (Redistribution of
payments), the Recovering Lender will be subrogated to the rights of the
Finance Parties which have shared in the redistribution.
24.3.2 If and to the extent that the Recovering Lender is not able to rely on
its rights under clause 24.3.1 above, the relevant Obligor shall be
liable to the Recovering Lender for a debt equal to the Sharing Payment
which is immediately due and payable.
24.4 REVERSAL OF REDISTRIBUTION
24.4.1 If any part of the Sharing Payment received or recovered by a Recovering
Lender becomes repayable and is repaid by that Recovering Lender, then:
(a) each Lender which has received a share of the relevant Sharing
Payment pursuant to clause 24.2 (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
(b) that Recovering Lender's rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be
liable to the reimbursing Lender for the amount so reimbursed.
24.5 EXCEPTIONS
24.5.1 This clause 24 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.
24.5.2 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 Lender had an opportunity to participate in those legal
or arbitration proceedings but did not do so as soon as reasonably
practicable having received notice.
39
SECTION 11: ADMINISTRATION
25 PAYMENT MECHANICS
25.1 PAYMENTS TO THE AGENT
25.1.1 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 Dollars in the place of payment.
25.1.2 Payment shall be made to such account with such bank as the Agent
specifies.
25.2 DISTRIBUTIONS BY THE AGENT
Each payment received by the Agent under the Finance Documents for
another Party shall, subject to clause 25.3 (Distributions to an Obligor)
and clause 25.4 (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 ten Business Days' notice with a bank in London or
New York.
25.3 DISTRIBUTIONS TO AN OBLIGOR
The Agent may (with the consent of the Obligor or in accordance with
clause 26 (Set-off)) apply any amount received by it for that Obligor in
or towards payment (on the date and funds of receipt) of any amount due
from that Obligor under the Finance Documents.
25.4 CLAWBACK
25.4.1 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 until it has been able to establish to its satisfaction that it has
actually received that sum.
25.4.2 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 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.
25.5 PARTIAL PAYMENTS
25.5.1 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 of the Agent and the Arranger under the Finance
Documents;
(b) SECONDLY, in or towards payment pro rata of any accrued interest
due but unpaid under this Agreement;
(c) THIRDLY, in or towards payment pro rata of any principal due but
unpaid under this Agreement; and
(d) FOURTHLY, in or towards payment pro rata of any other sum due but
unpaid under the Finance Documents.
40
25.5.2 The Agent shall, if so directed by the Majority Lenders, vary the order
set out in clause 25.5.1(b) to 25.5.1(d) above.
25.5.3 Clauses 25.5.1 and 25.5.2 above will override any appropriation made by
an Obligor.
25.6 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.
25.7 BUSINESS DAYS
25.7.1 Any payment which is due to be made on a day that is not a Business Day
shall be made on the next Business Day in the same calendar month (if
there is one) or the preceding Business Day (if there is not).
25.7.2 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.
25.8 CURRENCY OF ACCOUNT
25.8.1 Subject to clauses 25.8.2 and 25.8.3 below, Dollars is the currency of
account and payment for any sum due from an Obligor under any Finance
Document.
25.8.2 Each payment in respect of costs, expenses or Taxes shall be made in the
currency in which the costs, expenses or Taxes are incurred.
25.8.3 Any amount expressed to be payable in a currency other than Dollars shall
be paid in that other currency.
26 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.
27 NOTICES
27.1 COMMUNICATIONS IN WRITING
Any communication to be made under or in connection with the Finance
Documents shall be made in writing and, unless otherwise stated, may be
made by fax, letter or telex.
27.2 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 Parent, that identified with its name in
schedule 1;
(b) in the case of each Lender or any other Obligor, that identified
with its name in schedule 1 or that notified in writing to the
Agent on or prior to the date on which it becomes a Party; and
(c) in the case of the Agent, that identified with its name in
schedule 1,
41
or any substitute address, fax number, telex number or department or
officer as the Party may notify to the Agent (or the Agent may notify to
the other Parties, if a change is made by the Agent) by not less than ten
Business Days' notice.
27.3 DELIVERY
27.3.1 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 ten Business 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 27.2 (Addresses), if addressed to
that department or officer.
27.3.2 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).
27.3.3 All notices from or to an Obligor shall be sent through the Agent.
27.3.4 Any communication or document made or delivered to the Parent in
accordance with this clause will be deemed to have been made or delivered
to each of the Obligors.
27.4 NOTIFICATION OF ADDRESS, FAX NUMBER AND TELEX NUMBER
Promptly upon receipt of notification of an address, fax number and telex
number or change of address, fax number or telex number pursuant to
clause 27.2 (Addresses) or changing its own address, fax number or telex
number, the Agent shall notify the other Parties.
27.5 ENGLISH LANGUAGE
27.5.1 Any notice given under or in connection with any Finance Document must be
in English.
27.5.2 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.
28 CALCULATIONS AND CERTIFICATES
28.1 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.
28.2 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.
42
28.3 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 365/366 days.
29 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.
30 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.
31 AMENDMENTS AND WAIVERS
31.1 REQUIRED CONSENTS
31.1.1 Subject to clause 31.2 (Exceptions) any term of the Finance Documents may
be amended or waived only with the consent of the Majority Lenders and
the Obligors and any such amendment or waiver will be binding on all
Parties.
31.1.2 The Agent may effect, on behalf of any Finance Party, any amendment or
waiver permitted by this clause.
31.2 EXCEPTIONS
31.2.1 An amendment or waiver that has the effect of changing or which relates
to:
(a) the definition of "Majority Lenders" in clause 1.1 (Definitions);
(b) an extension to the date of payment of any amount under the
Finance Documents;
(c) a reduction in the amount of any payment of principal, interest,
fees or commission payable;
(d) an increase in Commitment;
(e) any provision which expressly requires the consent of all the
Lenders; or
(f) clause 2.2 (Lenders' rights and obligations), clause 20 (Changes
to the Lenders) or this clause 31,
shall not be made without the prior written consent of all the Lenders.
31.2.2 An amendment or waiver which relates to the rights or obligations of the
Agent or the Arranger may not be effected without the prior written
consent of the Agent or the Arranger.
32 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.
43
SECTION 12: GOVERNING LAW AND ENFORCEMENT
33 GOVERNING LAW
This Agreement is governed by English law.
34 ENFORCEMENT
34.1 JURISDICTION OF ENGLISH COURTS
34.1.1 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").
34.1.2 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.
34.1.3 No Party shall be prevented from taking proceedings relating to a Dispute
in any other courts with jurisdiction. To the extent allowed by law, the
Parties may take concurrent proceedings in any number of jurisdictions.
34.2 SERVICE OF PROCESS
34.2.1 Without prejudice to any other mode of service allowed under any relevant
law, each Obligor (other than an Obligor incorporated in England and
Wales):
(a) irrevocably appoints Norose Notices Limited [Matter number
AA33976], for the attention of the Director of Administration, at
the address of its registered office for the time being (at the
date of this Agreement, being Xxxxxxx Xxxxx, Xxxxxxxx Xxxxxx,
Xxxxxx XX0X 0XX) as its agent for service of process in relation
to any proceedings before the English courts in connection with
any Finance Document; and
(b) agrees that failure by a process agent to notify the relevant
Obligor of the process will not invalidate the proceedings
concerned.
THIS AGREEMENT HAS BEEN ENTERED INTO ON THE DATE STATED AT THE BEGINNING OF THIS
AGREEMENT.
44
SCHEDULE 1
THE ORIGINAL PARTIES
PART I
THE ORIGINAL OBLIGORS
NAME OF PARENT REGISTERED OFFICE AND FAX REGISTRATION NUMBER (OR
EQUIVALENT, IF ANY)
Rasmala Distribution (Cayman) M&C Corporate Contracts Services 112321
Limited Limited
X.X. Xxx 000
Xxxxxx Xxxxx
Xxxxx Xxxxxx Xxxxxx, Xxxxxx Xxxx
Grand Cayman
Cayman Islands Grand Cayman
British West Indies
Fax: x000 0 000 0000
Attention: Xxxxxx Xxxxxx
With a copy to Norose Notices Limited [Matter no:
TJS/AA33976]
Xxxxxxx Xxxxx
Xxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX
Fax: x00 00 0000 0000
Attention: Director of Administration
NAME OF THE GUARANTOR REGISTERED OFFICE AND FAX REGISTRATION NUMBER (OR
EQUIVALENT, IF ANY)
Rasmala Distribution (Bermuda) Cedar House 31475
Limited 00 Xxxxx Xxxxxx
Xxxxxxxx
XX00
Xxxxxxx
Fax: x000 0 000 0000
Attention: Xxxxxx Xxxxxx
With a copy to Norose Notices Limited [Matter no:
TJS/AA33976]
Xxxxxxx Xxxxx
Xxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX
Fax: x00 00 0000 0000
Attention: Director of Administration
45
PART II
THE ORIGINAL LENDERS AND AGENT
NAME OF ORIGINAL LENDER ADDRESS AND FAX COMMITMENT
Rasmala Buyout Fund L.P. c/o Rasmala General Partner II US$5,000,000
Limited
Emirates Towers Xxxxxxx
00xx Xxxxx, Xxxxx 00X
Xxxxxx Xxxxx Xxxx
PO Box 31145
Dubai
UAE
Fax: x000 0 000 0000
Attention: Xxxxxx Xxxxxx
With a copy to Norose Notices Limited [Matter no:
TJM/AA29176]
Xxxxxxx Xxxxx
Xxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX
Fax: x00 00 0000 0000
Attention: Director of
Administration
NAME OF AGENT ADDRESS AND FAX
Rasmala Buyout Fund L.P. c/o Rasmala General Partner II
Limited
Emirates Towers Xxxxxxx
00xx Xxxxx, Xxxxx 00X
Xxxxxx Xxxxx Xxxx
PO Box 31145
Dubai
UAE
Fax: x000 0 000 0000
Attention: Xxxxxx Xxxxxx
With a copy to Norose Notices Limited [Matter no:
TJM/AA29176]
Xxxxxxx Xxxxx
Xxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX
Fax: x00 00 0000 0000
Attention: Director of
Administration
46
SCHEDULE 2
THE CONDITIONS PRECEDENT
PART I
CONDITIONS PRECEDENT TO INITIAL UTILISATION
1 ORIGINAL OBLIGORS
1.1 A copy of the constitutional documents of each Obligor.
1.2 A copy of a resolution of the board of directors of each Obligor:
1.2.1 approving the terms of, and the transactions contemplated by, the Finance
Documents to which it is a party and resolving that it execute the
Finance Documents to which it is a party;
1.2.2 authorising a specified person or persons to execute the Finance
Documents to which it is a party on its behalf; and
1.2.3 authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices (including, if relevant, any
Utilisation Request) to be signed and/or despatched by it under or in
connection with the Finance Documents to which it is a party.
1.3 A specimen of the signature of each person authorised by the resolution
referred to in paragraph 1.2 above.
1.4 A copy of a resolution signed by the Parent in its capacity as holder of
the issued shares in the Guarantor, approving the terms of, and the
transactions contemplated by, the Finance Documents to which the
Guarantor is a party.
1.5 A certificate of the Parent (signed by a director) confirming that
borrowing or guaranteeing, as appropriate, the Total Commitments would
not cause any borrowing, guaranteeing or similar limit binding on any
Obligor to be exceeded.
1.6 A copy of the shareholder register of each Obligor.
1.7 A statement, certificate or other evidence evidencing the paid-in capital
of the Parent (excluding that of Xxxx Xxxxxxxx, which will be paid from
the proceeds of the Acquisition).
1.8 A certificate of an authorised signatory of the relevant Obligor
certifying that each copy document relating to it specified in this part
I of Schedule 2 is correct, complete and in full force and effect as at a
date no earlier than the date of this Agreement.
1.9 A statement certifying the ultimate beneficial ownership of the Obligors.
2 FINANCE DOCUMENTS
2.1 An original copy of this Agreement;
2.2 An original copy of each of:
2.2.1 the Bidco Share Charge and implementing documents referenced therein, and
2.2.2 the Target Share Charge and implementing documents referenced therein.
2.3 An original copy of the Parent Loan Assignment and a certified copy of
the Parent Loan document.
47
3 SENIOR DOCUMENTS AND MEZZANINE FACILITY AGREEMENT
3.1 A certified copy of the Senior Bridge Facility Agreement.
3.2 A certified copy of the Senior Warrant Instrument.
3.3 An original copy of the Intercreditor Agreement.
3.4 A certified copy of the Mezzanine Facility Agreement.
4 ACQUISITION AND OFFER DOCUMENTS
4.1 A certified copy of the executed Amalgamation Agreement, including all
exhibits and schedules;
4.2 A certified copy of the executed Shareholders Agreement.
4.3 A certified copy of the final Offer to Purchase.
4.4 A certified copy of the executed Deed of Covenant of Xxxxxxx Xxxxxxx.
4.5 A certified copy of the executed Deed of Covenant of Xxxx Xxxxxxxx.
4.6 A certified copy of the executed Letter of Appointment of Xxxxxxx
Xxxxxxx.
each in substantially the latest form distributed or described to the
Original Lenders prior to signing this Agreement.
5 LEGAL OPINIONS
Legal opinions of:
5.1 Xxxxxxxx Hemmelrath, legal advisers to the Arranger and the Agent in
England;
5.2 Xxxxxx and Calder legal advisers to the Parent in the Cayman Islands; and
5.3 Xxxxxxx Xxxxxxxx and Xxxxx legal advisers to the Guarantor in Bermuda;
substantially in the form distributed to the Original Lenders prior to
signing this Agreement and covering this Agreement, the Parent Loan
Assignment, the Bidco Share Charge and the Target Share Charge.
6 OTHER DOCUMENTS AND EVIDENCE
6.1 Evidence that any process agent referred to in clause 34.2 (Service of
process), if not an Obligor, has accepted its appointment.
6.2 A copy of any other Authorisation or other document, opinion or assurance
which the Agent considers to be necessary or desirable (if it has
notified the Parent accordingly) in connection with the entry into and
performance of the transactions contemplated by any Finance Document or
for the validity and enforceability of any Finance Document.
6.3 The Original Financial Statements.
6.4 Evidence that the fees, costs and expenses then due from the Parent
pursuant to clause 9.1 (Placement Fee) and clause 14 (Costs and expenses)
have been paid or will be paid.
48
6.5 A funds flow statement demonstrating how the Acquisition is to be funded.
PART II
CONDITIONS PRECEDENT REQUIRED TO BE
DELIVERED BY AN ADDITIONAL GUARANTOR
1 An Accession Letter, duly executed by the Additional Guarantor and the
Parent.
2 A copy of the constitutional documents of the Additional Guarantor.
3 A copy of a resolution of the board of directors of the Additional
Guarantor:
3.1 approving the terms of, and the transactions contemplated by, the
Accession Letter and the Finance Documents and resolving that it execute
the Accession Letter;
3.2 authorising a specified person or persons to execute the Accession Letter
on its behalf; and
3.3 authorising a specified person or persons, on its behalf, to sign and/or
despatch all other documents and notices to be signed and/or despatched
by it under or in connection with the Finance Documents.
4 A specimen of the signature of each person authorised by the resolution
referred to in paragraph 3 above.
5 If required under the laws of the jurisdiction of incorporation of the
Additional Guarantor, or to enable the legal opinion in paragraph 10
below, a copy of a resolution signed by all the holders of the issued
shares of the Additional Guarantor, approving the terms of, and the
transactions contemplated by, the Finance Documents to which the
Additional Guarantor is a party.
6 A certificate of a director of the Additional Guarantor confirming that
no limit on giving guarantees binding on it will be exceeded by it
becoming a Guarantor.
7 A certificate of an authorised signatory of the Additional Guarantor
certifying that each copy document listed in this Part II of Schedule 2
is correct, complete and in full force and effect as at a date no earlier
than the date of the Accession Letter.
8 A copy of any other Authorisation or other document, opinion or assurance
which the Agent considers to be necessary or desirable in connection with
the entry into and performance of the transactions contemplated by the
Accession Letter or for the validity and enforceability of any Finance
Document.
9 If available, the latest audited financial statements of the Additional
Guarantor.
10 A legal opinion of legal advisers to the Arranger and the Agent in
England.
11 If the Additional Guarantor is incorporated in a jurisdiction other than
England and Wales, a legal opinion of the legal advisers to the
Additional Guarantor in the jurisdiction in which the Additional
Guarantor is incorporated.
12 If the proposed Additional Guarantor is incorporated in a jurisdiction
other than England and Wales, evidence that the process agent specified
in clause 34.2 (Service of process), if not an Obligor, has accepted its
appointment in relation to the proposed Additional Guarantor.
49
SCHEDULE 3
FORM OF UTILISATION REQUEST
From: Rasmala Distribution (Cayman) Limited
To: Rasmala Buyout Fund L.P.
Dated:
Dear Sirs
RASMALA DISTRIBUTION (CAYMAN) LIMITED - US$5,000,000 INVESTOR LOAN AGREEMENT
DATED 3 JANUARY, 2002 (THE "FACILITY AGREEMENT")
1 We wish to borrow the Loan on the following terms:
Proposed Utilisation Date: [--] (or, if that is not a Business Day,
the next Business Day)
Amount: US$5,000,000
2 We confirm that the condition specified in clause 4.2 (Further conditions
precedent) is satisfied on the date of this Utilisation Request.
3 The proceeds of the Loan should be credited to [account]*.
4 The proceeds of the Loan shall be used for the purpose of funding the
Acquisition and/or meeting costs in respect thereof.
5 This Utilisation Request is irrevocable.
Yours faithfully
.......................................
authorised signatory for
Rasmala Distribution (Cayman) Limited
-------------
* This may be the account of the Depositary in respect of the Offer to Purchase.
See clause 5.5 of the Agreement.
50
SCHEDULE 4
FORM OF TRANSFER CERTIFICATE
To: Rasmala Buyout Fund L.P. as Agent
From: [The Existing Lender] (the "EXISTING LENDER") and [The New Lender] (the
"NEW LENDER")
Dated:
RASMALA DISTRIBUTION (CAYMAN) LIMITED - US$5,000,000 INVESTOR LOAN AGREEMENT
DATED 3 JANUARY, 2002 (THE "FACILITY AGREEMENT")
1 We refer to clause 20.5 (Procedure for transfer):
(a) The Existing Lender and the New Lender agree to the Existing
Lender and the New Lender transferring by novation all or part of
the Existing Lender's Commitment, rights and obligations referred
to in the Schedule in accordance with clause 20.5 (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 27.2
(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 20.4.3 (Limitation of
responsibility of Existing Lenders).
3 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 [--].
Rasmala Buyout Fund L.P.
By:
51
SCHEDULE 5
EXISTING SECURITY INTERESTS
NAME OF OBLIGOR SECURITY INTEREST TOTAL PRINCIPAL AMOUNT OF FINANCIAL
INDEBTEDNESS SECURED
Aramex International Limited Pledge of Cash Collateral in favour of US$157,000
Citibank India dated 29 July 2001 as
security for all indebtedness or any other
liability of Aramex India Private Limited
Aramex International Limited Pledge of Cash Deed in favour of Audi Bank US$120,000
dated 27 June 2000
Credit Line
Aramex International Limited Credit Line with Audi Bank US$340,000
Aramex UK International Facilities Schedule in respect of (pound)100,000
Courier Ltd facilities provided by Barclays Bank dated
24 April 1990 contains reference to a
"fixed and floating mortgage debenture"
52
SCHEDULE 6
FORM OF ACCESSION LETTER
To: Rasmala Buyout Fund L.P. as Agent
From: [Subsidiary] and Rasmala Distribution (Cayman) Limited
Dated:
Dear Sirs
RASMALA DISTRIBUTION (CAYMAN) LIMITED - US$5,000,000 INVESTOR LOAN AGREEMENT
DATED 3 JANUARY, 2002 (THE "FACILITY AGREEMENT")
1. [Subsidiary] agrees to become an Additional Guarantor and to be bound by
the terms of the Facility Agreement as an Additional Guarantor pursuant
to clause 21.2 (Changes to obligors)] of the Facility Agreement.
[Subsidiary] is a company duly incorporated under the laws of [name of
relevant jurisdiction].
2. [Subsidiary's] administrative details are as follows:
Address:
Fax No:
Attention:
3. This letter is governed by English law.
Rasmala Distribution (Cayman) Limited [Subsidiary]
53
SCHEDULE 7
FORM OF RESIGNATION LETTER
To: Rasmala Buyout Fund L.P. as Agent
From: [resigning Guarantor] and Rasmala Distribution (Cayman) Limited
Dated:
Dear Sirs
RASMALA DISTRIBUTION (CAYMAN) LIMITED - US$5,000,000 INVESTOR LOAN AGREEMENT
DATED 3 JANUARY, 2002 (THE "FACILITY AGREEMENT")
1 Pursuant to clause 21.3 (Resignation of a Guarantor), we request that
[resigning Guarantor] be released from its obligations as a Guarantor
under the Facility Agreement.
2 We confirm that:
(a) no Default is continuing or would result from the acceptance
of this request; and
(b) [o] *
3 This letter is governed by English law.
Rasmala Distribution (Cayman) Limited [Subsidiary]
By: By:
-------------
* Insert any other conditions required by the Facility Agreement.
54
SCHEDULE 8
FORM OF CONFIDENTIALITY LETTER
From: Lender
To: [Prospective Bank]
Date:
Dear Sirs
RASMALA DISTRIBUTION (CAYMAN) LTD (NO.112321) - US$5,000,000
INVESTOR LOAN AGREEMENT (THE "FACILITY AGREEMENT")
We understand that you are considering participating in the Facility. In
consideration of us agreeing to make available to you certain information, by
your signature of a copy of this letter you agree as follows:
1 CONFIDENTIALITY UNDERTAKING
You undertake:
1.1 to keep the Confidential Information confidential and not to disclose it
to anyone except as provided for by paragraph 2 below and to ensure that
the Confidential Information is protected with security measures and a
degree of care that would apply to your own confidential information;
1.2 to keep confidential and not disclose to anyone the fact that the
Confidential Information has been made available or that discussions or
negotiations are taking place or have taken place between us in
connection with the Facility;
1.3 to use the Confidential Information only for the Permitted Purpose;
1.4 to use all reasonable endeavours to ensure that any person to whom you
pass any Confidential Information (unless disclosed under paragraph 2(b)
below) acknowledges and complies with the provisions of this letter as if
that person were also a party to it; and
1.5 not to make enquiries of any member of the Group or any of their
officers, directors, employees or professional advisers.
2 PERMITTED DISCLOSURE
We agree that you may disclose Confidential Information:
2.1 to members of the Participant Group and their officers, directors,
employees and professional advisers to the extent necessary for the
Permitted Purpose and to any auditors of members of the Participant
Group;
2.2 (i) where requested or required by any court of competent jurisdiction or
any competent judicial, governmental, supervisory or regulatory body,
(ii) where required by the rules of any stock exchange on which the
shares or other securities of any member of the Participant Group are
listed or (iii) where required by the laws or regulations of any country
with jurisdiction over the affairs of any member of the Participant
Group; or
2.3 with the prior written consent of us and the Parent.
55
3 NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE
You agree (to the extent permitted by law) to inform us of the full
circumstances of any disclosure under paragraph 2.2 or upon becoming
aware that Confidential Information has been disclosed in breach of this
letter.
4 RETURN OF COPIES
If we so request in writing, you shall return all Confidential
Information supplied to you by us and destroy or permanently erase all
copies of Confidential Information made by you and use all reasonable
endeavours to ensure that anyone to whom you have supplied any
Confidential Information destroys or permanently erases such Confidential
Information and any copies made by them, in each case save to the extent
that you or the recipients are required to retain any such Confidential
Information by any applicable law, rule or regulation or by any competent
judicial, governmental, supervisory or regulatory body or in accordance
with internal policy, or where the Confidential Information has been
disclosed under paragraph 2.2 above.
5 CONTINUING OBLIGATIONS
The obligations in this letter are continuing and, in particular, shall
survive the termination of any discussions or negotiations between you
and us. Notwithstanding the previous sentence, the obligations in this
letter shall cease (a) if you become a party to or otherwise acquire (by
assignment or sub participation) an interest, direct or indirect in the
Facility or (b) twelve months after you have returned all Confidential
Information supplied to you by us and destroyed or permanently erased all
copies of Confidential Information made by you (other than any such
Confidential Information or copies which have been disclosed under
paragraph 2.2 above or which, pursuant to paragraph 4 above, are not
required to be returned or destroyed).
6 NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC
You acknowledge and agree that:
6.1 neither we nor any of our officers, employees or advisers (each a
"Relevant Person") (i) make any representation or warranty, express or
implied, as to, or assume any responsibility for, the accuracy,
reliability or completeness of any of the Confidential Information or any
other information supplied by us or any member of the Group or the
assumptions on which it is based or (ii) shall be under any obligation to
update or correct any inaccuracy in the Confidential Information or any
other information supplied by us or any member of the Group or be
otherwise liable to you or any other person in respect to the
Confidential Information or any such information; and
6.2 we or members of the Group may be irreparably harmed by the breach of the
terms of this letter and damages may not be an adequate remedy; each
Relevant Person or member of the Group may be granted an injunction or
specific performance for any threatened or actual breach of the
provisions of this letter by you.
7 NO WAIVER; AMENDMENTS, ETC
This letter sets out the full extent of your obligations of
confidentiality owed to us in relation to the information the subject of
this letter. No failure or delay in exercising any right, power or
privilege under this letter will operate as a waiver thereof nor will any
single or partial exercise of any right, power or privilege preclude any
further exercise thereof or the exercise of any other right, power or
privileges under this letter. The terms of this letter and your
obligations under this letter may only be amended or modified by written
agreement between us.
8 INSIDE INFORMATION
You acknowledge that some or all of the Confidential Information is or
may be price-sensitive information and that the use of such information
may be regulated or prohibited by applicable
56
legislation relating to insider dealing and you undertake not to use any
Confidential Information for any unlawful purpose.
9 NATURE OF UNDERTAKINGS
The undertakings given by you under this letter are given to us and
(without implying any fiduciary obligations on our part) are also given
for the benefit of the Parent and each other member of the Group.
10 THIRD PARTY RIGHTS
10.1 Subject to paragraph 6 and paragraph 9 the terms of this letter may be
enforced and relied upon only by you and us and the operation of the
Contracts (Rights of Third Parties) Xxx 0000 is excluded.
10.2 Notwithstanding any provisions of this letter, the parties to this letter
do not require the consent of any Relevant Person or any member of the
Group to rescind or vary this letter at any time.
11 GOVERNING LAW AND JURISDICTION
This letter (including the agreement constituted by your acknowledgement
of its terms) shall be governed by and construed in accordance with the
laws of England and the parties submit to the non-exclusive jurisdiction
of the English courts.
12 DEFINITIONS
In this letter (including the acknowledgement set out below):
"CONFIDENTIAL INFORMATION" means any information relating to the Parent,
the Group, and the Facility including, without limitation, the
information memorandum, provided to you by us or any of our affiliates or
advisers, in whatever form, and includes information given orally and any
document, electronic file or any other way of representing or recording
information which contains or is derived or copied from such information
but excludes information that (a) is or becomes public knowledge other
than as a direct or indirect result of any breach of this letter or (b)
is known by you before the date the information is disclosed to you by us
or any of our affiliates or advisers or is lawfully obtained by you after
that date, other than from a source which is connected with the Group and
which, in either case, as far as you are aware, has not been obtained in
violation of, and is not otherwise subject to, any obligation of
confidentiality;
"GROUP" means the Parent and each of its holding companies and
subsidiaries and each subsidiary of each of its holding companies (as
each such term is defined in the Companies Act 1985);
"PARTICIPANT GROUP" means you, each of your holding companies and
subsidiaries and each subsidiary of each of your holding companies (as
each such term is defined in the Companies Act 1985); and
"PERMITTED PURPOSE" means considering and evaluating whether to enter
into the Facility.
57
Please acknowledge your agreement to the above by signing and returning the
enclosed copy.
Yours faithfully
...................................
For and on behalf of
[Lender]
...................................
To:
[Prospective Lender]
We acknowledge and agree to the above:
...................................
For and on behalf of
[Prospective Lender]
58
SCHEDULE 9
FORM OF WARRANT INSTRUMENT
DATED 2002
------------------------------------------------------
RASMALA DISTRIBUTION (CAYMAN) LIMITED
--------------------------------
WARRANT INSTRUMENT
RELATING TO WARRANTS IN REGISTERED FORM TO
SUBSCRIBE FOR ORDINARY SHARES
REPRESENTING 2.5% OF THE FULLY DILUTED
SHARE CAPITAL OF RASMALA DISTRIBUTION
(CAYMAN) LIMITED
--------------------------------
Xxxxxx Xxxx
59
CONTENTS
PARAGRAPH PAGE
1 Definitions and Interpretation.........................................................................1
2 The Facility...........................................................................................9
3 Purpose................................................................................................9
4 Conditions of Utilisation.............................................................................10
5 Utilisation...........................................................................................11
6 Repayment.............................................................................................12
7 Prepayment............................................................................................12
8 Interest..............................................................................................14
9 Fees..................................................................................................14
10 Tax gross up and indemnities..........................................................................15
11 Increased costs.......................................................................................16
12 Other indemnities.....................................................................................17
13 Mitigation by the Lenders.............................................................................18
14 Costs and expenses....................................................................................19
15 Guarantee and indemnity...............................................................................20
16 Representations.......................................................................................22
17 Information undertakings..............................................................................24
18 General undertakings..................................................................................24
19 Events of Default.....................................................................................28
20 Changes to the Lenders................................................................................31
21 Changes to the Obligors...............................................................................33
22 Role of the Agent and the Arranger....................................................................35
23 Conduct of business by the Finance Parties............................................................38
24 Sharing among the Lenders.............................................................................38
25 Payment mechanics.....................................................................................40
26 Set-off...............................................................................................41
27 Notices...............................................................................................41
PARAGRAPH PAGE
28 Calculations and certificates.........................................................................42
29 Partial invalidity....................................................................................43
30 Remedies and waivers..................................................................................43
31 Amendments and waivers................................................................................43
32 Counterparts..........................................................................................44
33 Governing law.........................................................................................45
34 Enforcement...........................................................................................45
Schedule 1 The Original Parties..............................................................................46
Schedule 2 The Conditions Precedent..........................................................................48
Schedule 3 Form of Utilisation Request.......................................................................51
Schedule 4 Form of Transfer Certificate......................................................................52
Schedule 5 Existing Security Interests.......................................................................52
Schedule 6 Form of Accession Letter..........................................................................53
Schedule 7 Form of Resignation Letter........................................................................54
Schedule 8 Form of Confidentiality Letter....................................................................55
Schedule 9 Form of Warrant Instrument........................................................................59
THIS INSTRUMENT is executed on {DATE} by RASMALA DISTRIBUTION (CAYMAN) LIMITED
(No.112321) whose registered office is at M&C Corporate Contracts Services
Limited, XX Xxx 000, Xxxxxx Xxxxx, Xxxxx Church Street, Xxxxxx Town, Grand
Cayman, Cayman Islands, British West Indies (the "COMPANY").
WHEREAS:
(A) The Company has by resolution of its Directors passed on 3 January, 2002
determined (conditional upon the proposed offer by its wholly owned
subsidiary, Rasmala Distribution (Bermuda) Limited (No 31475) for the
entire issued share capital of Aramex International Limited being made
and all conditions subject to which such offer is made being fulfilled or
waived in accordance with the terms of such proposed offer, when made) to
create and issue warrants to subscribe in cash at par for preferred
shares of $0.01 each representing 2.5 per cent of the fully diluted share
capital of the Company.
(B) The Company has accordingly determined to execute this Instrument in
order to define the rights and interests of the registered holders for
the time being of such warrants and to afford protection for such rights
and interests.
NOW IT IS HEREBY DECLARED AS FOLLOWS:
1 INTERPRETATION
1.1 DEFINITIONS
Words and expressions defined in the Articles shall have the same
meanings when used in this Instrument but so that the following words and
expressions have the following meanings:
"ACT" means the Companies Xxx 0000 of the United Kingdom;
"AGGREGATE SUBSCRIPTION PRICE" means, in respect of the exercise of the
Subscription Rights relating to a Warrant, the Subscription Price
multiplied by the number of Preferred Shares to which such Warrant
relates as at the date of exercise of such Warrant;
"ARTICLES" means the Articles of Association of the Company as in force
at the date of this Instrument or as amended from time to time;
"CERTIFICATE" means, in relation to a Warrant, the certificate evidencing
the same substantially in the form set out in schedule 1;
"DIRECTORS" means the board of directors of the Company for the time
being;
"EXERCISE DATE" means the date on which the Exercise Notice is lodged at
the registered office of the Company in accordance with paragraph 4.2;
"EXERCISE NOTICE" means a notice substantially in the form of the
schedule to the Certificate;
"EXERCISED NUMBER" in relation to a Warrant, means the number of
Preferred Shares which is equal to the Relevant Percentage relating to
such Warrant;
"EXIT" means either of the following:
(a) a Listing; or
(b) an acquisition of a Controlling Interest by a Buyer; or
1
(c) a prepayment of the whole or part of the Investor Loan at any time
falling between [[o], 2002 and [o], 2003] [being the dates falling
6 and 18 months (respectively) after the date on which the
Investor Loan was borrowed]
"EXIT NOTIFICATION" means a notice from the Company to each of the
Holders informing them of an Exit or anticipated Exit and containing:
(a) details of the nature of the Exit or anticipated Exit;
(b) the anticipated earliest date upon which such Exit could occur;
(c) the anticipated Fully Diluted Share Capital of the Company
immediately prior to such Exit, the anticipated Exercised Number
of Preferred Shares relating to the relevant Warrant and the
anticipated Aggregate Subscription Price payable by such Holder in
respect of the relevant Warrant;
(d) all other information available to the Company which is or might
be material to the Holders for the purpose of deciding whether or
not, and (if so) when, to exercise their Subscription Rights;
"EXPERT" means an independent chartered accountant of not less than five
years standing agreed between the Company and the Holders or in default
of agreement appointed by the President for the time being of the
Institute of Chartered Accountants in England and Wales;
"FULLY DILUTED SHARE CAPITAL" means at any time the number of shares that
the Company would have in issue at the relevant time if all options,
warrants, conversion rights and any other rights whatsoever of any person
to acquire shares in the Company had been exercised and the shares the
subject of such rights had been issued;
"GROUP" means the Company and all its Subsidiaries from time to time;
"HOLDER" means, in relation to a Warrant, the registered holder of such
Warrant;
"INVESTOR LOAN" means the "Loan" under and as defined in the investor
loan agreement dated 3 January 2002 between Rasmala Buyout Fund L.P., the
Company and Rasmala Distribution (Bermuda) Limited as the same may be
amended, replaced or refinanced from time to time (including pursuant to
a conversion or extension in accordance with clause 2.3 thereof);
"PERMITTED TRANSFEREE" means any person other than a person listed or
referred to in Schedule 4 to the Shareholders Agreement;
"PREFERRED SHARES" means preferred shares of par value $0.01 in the
capital of the Company as defined as "Preferred Shares" in the Articles
or, if such preferred shares have pursuant to any provision of the
Articles been converted into ordinary shares of par value $0.01 in the
capital of the Company, means such ordinary shares;
"RELEVANT PERCENTAGE" means in respect of a Warrant and the exercise of
the relevant Subscription Rights, the Relevant Percentage stated in the
relevant Certificate and so that that the aggregate of the Relevant
Percentages in respect of all the Warrants (and all Certificates) shall
be 2.5 per cent.;
"SHAREHOLDER AGREEMENT" means the subscription and shareholder agreement
dated 3 January, 2002 between the Company, Rasmala Buyout Fund L.P.,
Champa Co-investors (Cayman) Limited and Xxxx Xxxxxxxx;
"SPECIAL RESOLUTION" has the meaning given to it in paragraph 17 of 0;
2
"SUBSCRIPTION PRICE" means $0.01 per Preferred Share;
"SUBSCRIPTION RIGHTS" means the rights to subscribe for the Warrant
Shares pursuant to the Warrants which (i) are constituted by paragraph
2.1 of this Instrument and (ii) shall be construed in relation to a
particular Warrant or Warrant as a reference to such rights as are
conferred by that Warrant or Warrants;
"SUBSIDIARY" means a subsidiary within the meaning of section 736 of the
Act and/or a controlled subsidiary undertaking within the meaning of
section 258 of the Act;
"WARRANT SHARES" means that number of Preferred Shares which, when
allotted to the Holders, will represent 2.5 per cent of the Fully Diluted
Share Capital of the Company at the Exercise Date (or, if that number is
not a whole number, the next higher number which is a whole number) or
where the context requires, in respect of a Holder, the number of such
Warrant Shares which are attributable to such Holder in accordance with
its Warrant; and
"WARRANTS" means the warrants to subscribe for Preferred Shares
constituted by this Instrument and "WARRANT" means each such warrant.
1.2 HEADINGS
Headings are inserted for convenience of reference only and shall be
ignored in the interpretation of this Instrument.
1.3 CONSTRUCTION OF CERTAIN TERMS
In this Instrument, unless the context otherwise requires:
1.3.1 references to paragraphs and schedules are to be construed as references
to the paragraphs of, and the schedules to, this Instrument and
references to this Instrument include its schedules;
1.3.2 reference to (or to any specified provision of) this Instrument or any
other document or instrument shall be construed as a reference to this
Instrument, that provision or that document or instrument as in force for
the time being and as amended from time to time in accordance with the
terms thereof;
1.3.3 words importing the plural shall include the singular and vice versa;
1.3.4 references to a person shall be construed as including references to an
individual, firm, company, corporation or unincorporated body of persons;
and
1.3.5 references to statutory provisions shall be construed as references to
those provisions as replaced, amended or re- enacted from time to time.
2 CONSTITUTION AND FORM OF WARRANTS
2.1 The Warrants shall confer the right, exercisable on the terms and subject
to the conditions set out below, to subscribe in cash at the Subscription
Price for the Warrant Shares.
2.2 The Company undertakes to comply with the terms and conditions of this
Instrument and specifically, but without limitation, to give effect to
all the Subscription Rights in accordance with their terms for the time
being.
2.3 The Warrants shall be in registered form. The Warrants are issued subject
to the Memorandum of Association of the Company and the Articles and
otherwise on the terms of this Instrument which are binding upon the
Company and the Holders and all persons claiming through or under them
respectively.
3
2.4 Entitlement to the Subscription Rights and other rights attaching to the
Warrants for the time being held by a Holder shall be evidenced by the
issue to such Holder of a Certificate.
2.5 A Holder may partially exercise the Subscription Rights relating to any
Warrant for the time being held by such Holder.
3 NOTIFICATION BY THE COMPANY
3.1 The Company undertakes to send to each Holder an Exit Notification as
soon as practicable after the Directors become aware of any circumstances
which will or are reasonably likely to result in an Exit and in any event
not less than 21 days prior to the expected date of the Exit or, if the
Company does not become aware of an Exit until a time which is less than
21 days prior to the expected date of the Exit, as soon as possible after
becoming aware of the same.
3.2 The Company undertakes to send to the Holders such further information of
which it becomes aware relating to the progress of an Exit, including,
without limitation, relating to the increased or decreased likelihood of
the same occurring, any change in the anticipated terms of or timetable
of the same and/or the failure or lapse (whether temporary or permanent)
of the same, to the intent that the Holders shall be kept informed at all
times of any changes or other circumstances material to the Exit.
4 EXERCISE OF THE SUBSCRIPTION RIGHTS
4.1 The Subscription Rights in relation to a warrant shall become exercisable
at any time after [o, 2003] [i.e. the date falling 17 months after the
Utilisation Date] (as used in this clause 4, the "unconditional exercise
date") or, if earlier, upon the receipt by the Holders of an Exit
Notification provided that in respect of an Exit Notification in respect
of part (c) of "Exit", the Subscription Rights shall only be exercisable
to the same extent (determined on a pro rata basis) that the Investor
Loan is prepaid (so that if one-fifth of the then outstanding amount of
the Investor Loan is then prepaid, the aggregate Relevant Percentage in
respect of all Warrants that may then be exercised would be 0.5 per
cent.).
4.2 The Subscription Rights of a Holder shall be exercised by such Holder
sending an Exercise Notice to the registered office of the Company. An
Exercise Notice shall be either (a) conditional (in which case it shall
specify the relevant conditions) or (b) unconditional.
4.3 Once lodged in accordance with paragraph 4.2, an Exercise Notice shall be
irrevocable save that:
4.3.1 (where issued in respect of an Exit) if the relevant Exit does not occur:
(a) (in the case of a conditional Exercise Notice) in the manner
and/or within the time period upon which the Exercise Notice is
expressed to be conditional; or
(b) (in any case) within 60 days of the expected Exit date,
or (in either (i) or (ii)) the relevant Holder determines in its
discretion that the relevant Exit will not occur in such manner or within
any such period, then such Exercise Notice may be cancelled by the
relevant Holder; but so that:
4.3.2 if such Exercise Notice is expressed to be conditional upon the
occurrence of an Exit described in the relevant Exit Notification within
a specified period of the expected Exit date then if such Exit does not
occur within such period then such Exercise Notice shall automatically be
deemed to have been revoked.
4.4 The automatic revocation or a cancellation of an Exercise Notice in
accordance with paragraph 4.3 shall be without prejudice to the relevant
Holder's right to send to the Company a further Exercise Notice on
receiving a further Exit Notification from the Company or other
4
information, from the Company or otherwise, which leads the relevant
Holder to reasonably believe that an Exit is likely to occur or if the
unconditional exercise date occurs.
4.5 If the Subscription Rights of any Holder have not been exercised in
accordance with this paragraph 4 by the earlier of (a) the 14th day after
receipt by a Holder of an Exit Notification and (b) the date falling 60
months after the date of this Instrument, then the unexercised
Subscription Rights of such Holder shall lapse on, in the case of (a)
above, the date of the actual occurrence of the Exit described in the
relevant Exit Notification (and so that if such Exit does not occur or
does not occur in such manner then such Subscription Rights shall not
lapse), or, in the case of (b) above, such date.
5 COMPLETION
5.1 In respect of each exercise of Subscription Rights by a Holder, the
Exercised Number of Preferred Shares shall, subject to payment in full at
the Subscription Price for such shares and to the provisions of the
Articles and compliance with any applicable law, regulatory requirement,
judgment, order or decree be allotted and issued fully paid up to or to
the order of the relevant Holder either:
5.1.1 if the Exercise Notice is expressed to be conditional in accordance with
paragraph 4.3.1, on the date upon which the Exit occurs (and immediately
prior to the relevant Exit) with the relevant conditions fulfilled or
waived by the relevant Holder; or
5.1.2 otherwise, no later than 14 days after the Exercise Date.
5.2 If an Exercise Notice is cancelled or shall be deemed to have been
revoked (pursuant to paragraph 4.3), the Company will return to the
relevant Holder any remittance originally submitted and the Subscription
Rights shall remain exercisable in accordance with the terms of this
Instrument. A subsequent unconditional exercise of the Subscription
Rights within such period shall be deemed to override and supersede any
earlier conditional exercise which has not been cancelled or revoked.
5.3 A certificate for the Exercised Number of Preferred Shares shall be
issued to or to the order of the relevant Holder (free of charge) no
later than 2 days after the date determined under paragraph 5.1.
6 UNDERTAKING
The Company hereby undertakes with each of the Holders that, upon the
issue of any Warrants and pending all the Subscription Rights of all
Holders being exercised or lapsing it will maintain a sufficient amount
of authorised but unissued unencumbered Preferred Shares to satisfy in
full the Warrants as and when the Subscription Rights may be exercised
and it will ensure that the Directors have all necessary authorisations
to authorise them to allot such Preferred Shares at any time.
7 DISPUTES
Any question arising in relation to this Instrument shall be referred for
determination to an Expert, to which the following provisions shall
apply:
7.1 the Expert shall make his determination at the expense of the Company;
7.2 the Expert shall be deemed to act as an expert and not an arbitrator;
7.3 the determination of the Expert shall, in the absence of manifest error,
be final and binding on all concerned; and
7.4 the Expert shall be given by the Company and the Holders all such
information and other assistance as he may reasonably require.
5
8 WINDING-UP
If an effective resolution is passed or an order made for the winding up
of the Company (except for the purpose of reconstruction or
amalgamation), each Holder will (if in such winding up there shall be a
surplus available for distribution among the holders of Preferred Shares
which, taking into account the amounts payable hereunder, exceeds in
respect of each Preferred Share a sum equal to the Subscription Price),
subject to applicable laws, be treated for the purpose of ascertaining
its rights in the winding up as if immediately before the date of such
resolution or order its Subscription Rights had been exercised and shall
accordingly be entitled to receive out of the assets available in the
liquidation pari passu with the holders of the Preferred Shares (if any)
such a sum as such Holder would have received had it been the holder of
that number of Preferred Shares which at that time were the subject of
its Subscription Rights, after deducting a sum equal to the Aggregate
Subscription Price in respect of the Warrants held by such Holder.
Subject to this paragraph 8 the Subscription Rights shall lapse on the
liquidation of the Company.
9 RANKING OF THE PREFERRED SHARES
The Preferred Shares allotted on exercise of any Subscription Rights
shall rank equally and form one class with all the Preferred Shares in
issue from time to time comprised within the Fully Diluted Share Capital.
10 TRANSFER AND TRANSMISSION OF WARRANTS
10.1 The Warrants are transferable to a Permitted Transferee only Provided
that:
(a) for the avoidance of doubt, such foregoing provision only applies
to a transfer of any Warrants and not to any Preferred Shares
issued upon the exercise of a Warrant; and
(b) any Warrant may be transferred to a person who is not a Permitted
Transferee with the prior written consent of the Company, acting
upon and by a resolution of its board of directors.
10.2 The Company shall maintain a register of Warrants and the persons
entitled thereto and the provisions of schedule 2 shall apply in relation
to the transfer and transmission of Warrants.
11 MEETINGS
11.1 The provisions of schedule 3 shall apply in relation to meetings of
Holders.
11.2 The Holders shall have the right to attend and speak (but not, by virtue
or in respect solely of holding Warrants, to vote) at all meetings of
members of the Company at which any business is to be moved which has or
is reasonably likely to have any effect on the value of the Warrants or
the rights attaching thereto or the enjoyment thereof.
12 DISPUTES
12.1 Any modification to this Instrument may be effected only by Deed executed
by the Company and, save in the case of a modification of a purely
formal, minor or technical nature, with the prior sanction of an Special
Resolution.
12.2 All or any of the rights for the time being attached to the Warrants
(including the Subscription Rights) may from time to time (whether or not
the Company is being wound up) be altered or abrogated with the prior
sanction of an Special Resolution.
6
13 PURCHASE
13.1 The Company and its Subsidiaries shall not be prohibited under this
Instrument from purchasing Warrants by tender (available to all Holders
alike) or by private treaty in either case at any price as may be agreed
with the Holders. All Warrants so purchased by the Company shall
forthwith be cancelled and shall not be available for reissue or resale.
13.2 Any Warrant purchased by a Subsidiary of the Company may not be sold
other than to the Company but need not be cancelled.
14 REPLACEMENT OF CERTIFICATES
If a Certificate is mutilated, defaced, lost or stolen or destroyed it
may be replaced at the office of the Company upon payment by the claimant
of such costs as may be incurred in connection therewith and on such
terms as to evidence and indemnity as the Company may reasonably require.
Mutilated or defaced Certificates must be surrendered before replacements
will be issued.
15 NOTICES
Any notice to Holders required pursuant to this Instrument shall be given
in accordance with the provision of paragraphs 15 to 20 (inclusive) of
schedule 2.
16 GOVERNING LAW
This Instrument shall be governed by and construed in accordance with Law
of the Cayman Islands. The Holders shall have the right to bring legal
action against the Company with respect to the Warrants and covenants in
this Instrument in any competent court which has jurisdiction.
IN WITNESS whereof this Instrument has been duly executed as a deed by the
Company on the date set out above.
7
SCHEDULE 1
FORM OF CERTIFICATE
RASMALA DISTRIBUTION (CAYMAN) LIMITED
(Incorporated under the Companies Law (2001 Second Revision)
with registered number 112321)
WARRANT to subscribe for Preferred Shares pursuant to a Warrant Instrument
executed by the Company on {DATE} (the "INSTRUMENT"). Words and expressions
defined in the Instrument have the same meanings in this Certificate.
Certificate No: [ ]
Date of Issue: [ ]
Name and address of Holder: [ ]
Relevant Percentage the
subject of this Certificate: [ ]%
THIS IS TO CERTIFY that the Holder named above is the registered holder of the
right to subscribe in cash for the Relevant Percentage of Preferred Shares of
$0.01 each representing [--] [Relevant Percentage] per cent. of the Fully
Diluted Share Capital subject to the Memorandum and Articles of Association of
the Company and otherwise on the terms and conditions set out in the Instrument.
EXECUTED and DELIVERED as a DEED by )
RASMALA DISTRIBUTION (CAYMAN) LIMITED )
acting by [AUTHORISED SIGNATORY] ......................................
Authorised Signatory
8
SCHEDULE TO THE CERTIFICATE
EXERCISE NOTICE
To: The Directors
Rasmala Distribution (Cayman) Limited
We hereby exercise the Subscription Rights appertaining to all of the Warrants
evidenced by this Certificate which is equal to [--] per cent. (being
[[insert specific proportion] of](1) the Relevant Percentage) of the Fully
Diluted Share Capital of Rasmala Distribution (Cayman) Limited [conditional
[only] upon the [occurrence of the Exit specified in the Exit Notification you
sent to us dated [--] within [--] days of such date]].
We hereby direct the Company to allot[, conditional only on the above,]
Preferred Shares representing [--] per cent. of the Fully Diluted Share
Capital to be issued pursuant hereto to us.
We hereby request that certificates for such Preferred Shares be sent by post to
us at the first address shown or to the agent lodging the Certificate as
mentioned below. We agree that such Preferred Shares are issued and accepted
subject to the Memorandum and Articles of Association of the Company.
Signed ...........................................................
Full Name ...........................................................
Address ...........................................................
...........................................................
...........................................................
-------------
1 Note that a partial exercise is only permitted pursuant to part (c) of "Exit".
See the proviso to clause 4.1. In all other circumstances remove the wording
in square brackets.
9
SCHEDULE 2
PROVISIONS AS TO TRANSFER, TRANSMISSION AND OTHER MATTERS
1 An accurate register of the Warrants (the "WARRANT REGISTER") will be
kept by the Company and there shall be entered in the Warrant Register:
(a) the names and addresses of the Holders for the time being of the
Warrants;
(b) the amount of the Warrants held by every Holder; and
(c) the date on which the name of every Holder is entered in the
Warrant Register in respect of the Warrants standing to his name.
2 Any change in the name or address of any Holder shall forthwith be
notified to the Company which shall cause the Warrant Register to be
altered accordingly. The Holders or any of them and any person authorised
by any such Holder shall be at liberty at all reasonable times during
office hours to inspect the Warrant Register and to take copies of or
extracts from the same or any part thereof.
3 The Company shall be entitled to treat the Holder of any Warrant as the
absolute owner thereof and accordingly shall not except as ordered by a
court of competent jurisdiction or as required by law be bound to
recognise any equitable or other claim to or interest in such Warrant on
the part of any other person whether or not it shall have express or
other notice thereof.
4 Every Holder will be recognised by the Company as entitled to his
Warrants free from any equity, set-off or cross-claim on the part of the
Company against the original or any intermediate Holder of the Warrants.
5 Every transfer of a Warrant shall be made by an instrument of transfer in
the usual or common form or in any other form which may be approved for
the time being by the Directors.
6 The instrument of transfer of a Warrant shall be signed by or on behalf
of the transferor but need not be signed by or on behalf of the
transferee. The transferor shall be deemed to remain the holder of the
Warrant until the name of the transferee is entered in the Warrant
Register in respect thereof.
7 The Directors may decline to recognise any instrument of transfer unless
such instrument is deposited at the registered office of the Company
accompanied by the Warrant Certificate to which it relates and such other
evidence as the Directors may reasonably require to show the right of the
transferor to make the transfer. The Directors may waive production of
any certificate upon production to them of satisfactory evidence of the
loss or destruction of such instrument together with such indemnity as
they may require.
8 No fee shall be charged for any registration of a transfer of a Warrant
or for the registration of any other documents which in the opinion of
the Directors require registration.
9 The registration of a transfer shall be conclusive evidence of the
approval by the Directors of the transfer.
10 In the event of the death of a Holder the survivors where the deceased
was a joint holder, and the executors or administrators of the deceased
where he was a sole or only surviving Holder, shall be the only persons
recognised by the Company as having any title to his Warrants, but
10
nothing herein contained shall release the estate of a deceased Holder
(whether sole or joint) from any liability in respect of any Warrant
solely or jointly held by him.
11 Subject to any other provision herein contained any person becoming
entitled to a Warrant in consequence of the death or bankruptcy of a
Holder or otherwise than by transfer may, upon producing such evidence of
title as the Directors shall reasonably require, and subject as
hereinafter provided, be registered himself as Holder of the Warrant.
12 Subject to any other provision herein contained, if the person so
becoming entitled shall elect to be registered himself, he shall deliver
or send to the Company a notice in writing signed by him stating that he
so elects. All the limitations, restrictions and provisions herein
contained relating to the right of transfer and the registration of
transfers of Warrants shall be applicable to any such notice of transfer
as aforesaid as if the death or bankruptcy of the Holder had not occurred
and the notice of transfer were a transfer executed by such Holder.
13 A person becoming entitled to a Warrant in consequence of the death or
bankruptcy of a Holder shall be entitled to receive and may give a good
discharge for any moneys payable in respect thereof but shall not be
entitled to receive notices of or to attend or vote at meetings of the
Holders or, save as aforesaid, to any of the rights or privileges of a
Holder until he shall have become a Holder in respect of the Warrant.
14 Every Holder shall register with the Company an address (including
facsimile and/or telex number) either in the Cayman Islands or elsewhere
to which notices can be sent and if any Holder shall fail so to do notice
may be given to such Holder by sending the same by any of the methods
referred to in paragraph 15 of this schedule to his last known place of
business or residence or, if none, by exhibiting the same for three days
at the registered office for the time being of the Company.
15 Notices and other communications to Holders may be given by personal
delivery, prepaid letter by post (airmail in the case of an address
outside the Cayman Islands), facsimile transmission or telex message. In
proving service of any notice or other communication sent by post it
shall be sufficient to prove that the envelope or wrapper containing the
notice or other communication was properly addressed and stamped and was
deposited in a post box or at the post office, in each case, located in
the Cayman Islands.
16 A notice or other communication given pursuant to the provisions of
paragraph 15 of this schedule shall be deemed to have been served:
(a) at the time of delivery, if delivered personally to the registered
address;
(b) on the day following its posting, if sent by prepaid letter by
post to an address in the Cayman Islands;
(c) on the third day following its posting, if sent by prepaid airmail
letter to an address outside the Cayman Islands;
(d) on the day following the despatch of the telex or facsimile
transmission, if sent by telex or facsimile transmission.
17 All notices and other communications with respect to Warrants standing in
the names of joint Holders shall be given to whichever of such persons is
named first in the Warrant Register and such notice so given shall be
sufficient notice to all the Holders of such Warrants.
11
18 Any person who, whether by operation of law, transfer or other means
whatsoever, shall become entitled to any Warrant shall be bound by every
notice in respect of such Warrant which prior to his name and address
being entered on the Warrant Register shall have been duly given to the
person from whom he derives his title to such Warrant.
19 Any notice or other communication given to a Holder in accordance with
this schedule shall, notwithstanding that such Holder may then be
deceased and whether or not the Company has notice of his decease, be
deemed to have been duly served in respect of any Warrants whether held
solely or jointly with other persons by such Holder until some other
person be registered in his stead as the Holder or joint Holder thereof
and such service shall for all purposes of these presents be deemed a
sufficient service of such notice or document on his or her executors or
administrators and all persons (if any) jointly interested with him in
any such Warrant.
20 When a given number of days' notice or notice extending over any other
period is required to be given, the day of service shall be included but
the day upon which such notice will expire shall not be included in such
number of days or other period. The signature to any notice to be given
by the Company may be written or printed.
12
SCHEDULE 3
PROVISIONS AS TO MEETINGS AND RESOLUTIONS OF HOLDERS
1 The Company at any time may, and upon a request in writing of Holders
holding not less than one-tenth of the Warrants for the time being in
issue shall, convene a meeting of the Holders. Every such meeting shall
be held at such reasonably convenient and appropriate place in the United
Kingdom or elsewhere as the directors may approve.
2 At least 21 days' notice of the meeting to the Holders shall be given to
the Holders. The notice shall specify the day, time and place of the
meeting and the terms of the resolutions to be proposed. The accidental
omission to give notice to, or the non-receipt of any such notice by, any
of the Holders shall not invalidate the proceedings at any meeting.
3 A person (who may, but need not be, a Holder) nominated in writing by the
Company shall be entitled to take the chair at every such meeting but if
no such nomination is made, or if at any meeting the person nominated is
not present within 15 minutes after the time appointed for the holding of
such meeting, the Holders present shall choose one of their number to be
chairman.
4 At any such meeting two or more persons holding Warrants and/or being
proxies and being or representing in the aggregate the Holders of not
less than 10 per cent. of the Warrants for the time being in issue shall
(except for the purpose of passing an Special Resolution) form a quorum
for the transaction of business and no business other than the choosing
of a chairman shall be transacted at any meeting unless the requisite
quorum be present at the commencement of business. The quorum at any such
meeting for the passing of an Special Resolution shall be two or more
persons holding Warrants and/or being proxies and being or representing
in the aggregate the Holders of not less than a clear majority of the
Warrants for the time being in issue.
5 If, within half an hour after the time appointed for any meeting, a
quorum is not present, the meeting shall, if convened upon the
requisition of Holders, be dissolved. In any other case it shall stand
adjourned for such period, not being less than 14 days nor more than 28
days, and to such time and place, as may be appointed by the chairman. At
such adjourned meeting the person or persons present in person holding
Warrants or being proxies (whatever the number of the Warrants so held or
represented) shall for all purposes form a quorum and shall have the
power to pass any resolution (including an Special Resolution) and to
decide upon all matters which could properly have been dealt with at the
meeting from which the adjournment took place had a quorum been present
at such meeting.
6 The chairman may with the consent of (and shall if directed by) any
meeting adjourn the same from time to time and from place to place but no
business shall be transacted at any adjourned meeting except business
which might lawfully have been transacted at the meeting from which the
adjournment took place.
7 At least ten days' notice of any meeting adjourned through want of a
quorum shall be given in the same manner as of an original meeting, and
such notice shall state the quorum required at such adjourned meeting.
Subject as aforesaid, it shall not be necessary to give any notice of an
adjourned meeting.
8 Every question submitted to a meeting shall be decided in the first
instance by a show of hands but the chairman shall neither on a show of
hands nor on a poll have a casting vote in addition
13
to the vote or votes (if any) to which the chairman may be entitled as a
Holder or as a proxy.
9 At any meeting, unless a poll is demanded by the chairman or by one or
more Holders (or by their proxies) being or representing in the aggregate
the Holders of not less than 10 per cent. of the Warrants then in issue
(before or on the declaration of the result of a show of hands), a
declaration by the chairman that a resolution has been carried or carried
by a particular majority or lost or not carried by any particular
majority shall be conclusive evidence of the fact without proof of the
number or proportion of the votes recorded in favour of or against such
resolution.
10 If at any meeting a poll is so demanded, it shall be taken in such manner
and, subject as hereinafter provided, either at once or after any
adjournment, as the chairman directs, and the result of such poll shall
be deemed to be the resolution of the meeting at which the poll was
demanded. The demand for a poll shall not prevent the continuance of the
meeting for the transaction of any business other than the question on
which the poll has been demanded.
11 Any poll demanded at any meeting on the election of a chairman or on any
question of adjournment shall be taken at the meeting without
adjournment.
12 The Company (through its representatives and legal and financial
advisers) shall be entitled to attend and speak at any meeting of the
Holders. Save as aforesaid, no person shall be entitled to attend or vote
at any meeting of the Holders unless he is a Holder or the duly appointed
proxy and no person shall join with others in requesting the convening of
such a meeting unless he is a Holder. Neither the Company nor any
Subsidiary of the Company shall be entitled to vote in respect of
Warrants held by it or on its behalf nor shall the holding of any such
Warrants count towards a quorum.
13 Subject as provided in paragraph 12 of this schedule, at any meeting:
(a) on a show of hands every Holder who is present in person (or in
the case of a corporation by a duly authorised representative) and
every person who is a proxy shall have one vote; and
(b) on a poll every Holder who is present in person or by proxy as
aforesaid shall have one vote in respect of each Warrant held by
him.
(c) Any person entitled to more than one vote need not use all his
votes or cast all the votes to which he is entitled in the same
way.
14 A proxy need not be a Holder. Any appointment of a proxy must be in
writing specifying the appointor and the Warrants and meeting in respect
of which the proxy is to act as such. The instrument appointing the proxy
must be delivered to the Company if the Company so requests in order for
any such appointment be valid.
15 A meeting of the Holders shall in addition to all other powers (but
without prejudice to any powers conferred on other persons by these
presents) have the following powers exercisable by Special Resolution,
namely:
(a) power to sanction any compromise or arrangement proposed to be
made between the Company and the Holders or any of them;
(b) power to sanction any proposal by the Company for the
modification, abrogation, variation or compromise of, or
arrangement in respect of, the rights of the Holders against
14
the Company whether such rights shall arise under these presents
or otherwise;
(c) power to sanction any proposal by the Company for the exchange or
substitution for the Warrants of, or the conversion of the
Warrants into, shares, stock, bonds, debentures, debenture stock
or other obligations or securities of the Company, or any other
body corporate formed or to be formed;
(d) power to assent to any modification of the conditions to which the
Warrants are subject and/or the provisions contained in these
presents which shall be proposed by the Company;
(e) power to authorise any person to concur in and execute and do all
such documents, acts and things as may be necessary to carry out
and give effect to any Special Resolutions;
(f) power to discharge or exonerate any person from any liability in
respect of any act or omission for which such person may have
become responsible under these presents or the conditions to which
the Warrants are subject;
(g) power to give any authority, direction or sanction which under the
provisions of these presents or the conditions to which the
Warrants are subject is required to be given by Special
Resolution; and
(h) power to appoint any persons (whether Holders or not) as a
committee or committees to represent the interest of the Holders
and to confer upon such committee any powers or discretions which
the Holders could themselves exercise by Special Resolution.
16 An Special Resolution shall be binding upon all the Holders, whether
present or not present at such meeting, and each of the Holders shall be
bound to give effect thereto accordingly. The passing of any such
resolution shall be conclusive evidence that the circumstances of such
resolution justified the passing thereof.
17 The expression "SPECIAL RESOLUTION" when used in these presents means a
resolution passed at a meeting of the Holders duly convened and held and
carried by a majority consisting of not less than 75 per cent. of the
votes cast upon a show of hands or, if a poll is duly demanded, by a
majority consisting of not less than 75 per cent. of the votes cast on a
poll.
18 Minutes of all resolutions and proceedings at every meeting shall be made
and duly entered in books to be from time to time provided for that
purpose by the Company, and any such minutes, if the same are signed by
the chairman of the meeting at which such resolutions were passed or
proceedings transacted or by the chairman of the next succeeding meeting
of the Holders, shall be conclusive evidence of the matters therein
contained and, until the contrary is provided, every meeting in respect
of the proceedings of which minutes have been made and signed as
aforesaid shall be deemed to have been duly convened and held and all
resolutions passed or proceedings transacted thereafter to have been duly
passed and transacted.
19 Subject to all other provisions contained in these presents the Company
may without the consent of the Holders prescribe such further regulations
regarding the holding of meetings of Holders and attendance and voting
thereat as the Company may at its sole discretion determine.
20 Anything which, under the terms of this Instrument, may be done by
resolution passed at a meeting of the Holders (including specifically,
but without limitation, the passing of an Special
15
Resolution) may be done, without a meeting and without any previous
notice being required, by resolution in writing signed by or on behalf of
all the Holders who, at the date of such resolution, would be entitled to
attend and vote at such meeting, The signatures to any such resolution
need not be on a single document provided each is on a document which
accurately states the terms of the resolution. The date of the resolution
is when the resolution is signed by or on behalf of the last Holder to
sign.
16
EXECUTED AND DELIVERED )
as a DEED by )
RASMALA DISTRIBUTION )
(CAYMAN) LIMITED )
acting by [AUTHORISED )
SIGNATORY] )
....................................................
Authorised Signatory
17
EXECUTION PAGE
PARENT
SIGNED for and on behalf of )
RASMALA DISTRIBUTION (CAYMAN) ) /s/ Xxx Xxxxx xx Xxxxxxx
LIMITED )
GUARANTOR
SIGNED for and on behalf of )
RASMALA DISTRIBUTION (BERMUDA) ) /s/ Xxx Xxxxx xx Xxxxxxx
LIMITED )
ARRANGER
SIGNED for and on behalf of ) /s/ Xxxx Xxxxx
RASMALA BUYOUT FUND L.P. )
AGENT
SIGNED for and on behalf of ) /s/ Xxxx Xxxxx
RASMALA BUYOUT FUND L.P. )
ORIGINAL LENDER
SIGNED for and on behalf of ) /s/ Xxxx Xxxxx
RASMALA BUYOUT FUND L.P. )
18
