Exhibit 10.1
MULTICURRENCY REVOLVING CREDIT
FACILITY
DATED 1 MARCH 2006
£20,000,000
BRECON HOLDINGS LIMITED
as Original Borrower
and
AMERISOURCEBERGEN
CORPORATION
as Company
FACILITY AGREEMENT
CONTENTS
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Page
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1.
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Definitions And
Interpretation
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1
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2.
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The
Facility
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11
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3.
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Purpose
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11
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4.
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Conditions Of
Utilisation
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11
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5.
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Utilisation
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12
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6.
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Optional
Currencies
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13
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7.
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Repayment
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13
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8.
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Prepayment And
Cancellation
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13
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9.
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Interest
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14
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10.
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Interest
Periods
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15
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11.
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Changes To The
Calculation Of Interest
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16
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12.
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Fees
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17
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13.
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Tax Gross Up
And Indemnities
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17
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14.
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Increased
Costs
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20
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15.
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Other
Indemnities
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21
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16.
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Mitigation By
The Lender
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22
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17.
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Costs And
Expenses
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22
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18.
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Guarantee And
Indemnity
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23
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19.
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Representations
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26
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20.
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Information
Undertakings
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29
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21.
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Incorporated
Undertakings
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32
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22.
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General
Undertakings
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33
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23.
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Events Of
Default
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33
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24.
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Changes To The
Lender
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36
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25.
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Changes To The
Obligors
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39
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26.
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Payment
Mechanics
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41
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27.
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Set
Off
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43
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28.
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Notices
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43
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29.
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Calculations
And Certificates
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44
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30.
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Partial
Invalidity
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44
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31.
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Remedies And
Waivers
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45
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32.
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Amendments And
Waivers
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45
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33.
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Counterparts
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45
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34.
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Governing
Law
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45
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35.
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Enforcement
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45
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Schedule 1
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T
HE O RIGINAL P ARTIES
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46
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Schedule
2
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C
ONDITIONS P RECEDENT
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47
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Part I
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Conditions
Precedent To Initial Utilisation
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47
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Part II
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Conditions
Precedent Required To Be Delivered By An Additional
Obligor
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49
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Schedule
3
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U
TILISATION R EQUEST
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51
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Schedule
4
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M
ANDATORY C OST F ORMULAE
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52
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Schedule
5
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F
ORM O F
A CCESSION L ETTER
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54
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Schedule
6
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F
ORM O F
R ESIGNATION L ETTER
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55
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Schedule
7
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T
IMETABLES
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56
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Schedule
8
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P
RICING S CHEDULE
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57
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THIS AGREEMENT
is dated 1 March 2006 and made
between:
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(1)
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AMERISOURCEBERGEN CORPORATION
, a Delaware Corporation (the
“ Company ”);
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(2)
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THE
PARTIES listed in
Schedule 1 as original borrowers (the “ Original
Borrowers ”);
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(3)
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THE
PARTIES listed in
Schedule 1 as original guarantors (the “ Original
Guarantors ”); and
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(4)
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BARCLAYS
BANK PLC (the “
Lender ”).
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IT IS AGREED
as follows:
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1.
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DEFINITIONS
AND INTERPRETATION
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In this Agreement, in addition to
the terms defined in the introductory paragraph, (a) where the
context requires, capitalised terms used but not defined herein
have the respective meanings set forth in the U.S. Parent Agreement
(as defined below) and (b) the following terms have the
following meanings:
“ Accession Letter
” means a document substantially in the form set out in
Schedule 5 ( Form of Accession Letter ).
“ Additional Borrower
” means a company which becomes an Additional Borrower in
accordance with Clause 25 ( Changes to the Obligors
).
“ Additional Guarantor
” means a company which becomes an Additional Guarantor in
accordance with Clause 25 ( Changes to the Obligors
).
“ Additional Obligor
” means an Additional Borrower or an Additional
Guarantor.
“ Affiliate ”
means, in relation to any person, a Subsidiary of that person or a
Holding Company of that person or any other Subsidiary of that
Holding Company.
“ Authorisation ”
means an authorisation, consent, approval, resolution, licence,
exemption, filing, notarisation or registration.
“ Availability Period
” means the period from and including the date of this
Agreement to and including the earlier of the date of termination
of the Commitment and one month prior to the Termination
Date.
“ Available Commitment
” means the Commitment minus:
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(a)
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the Base
Currency Amount of any outstanding Loans; and
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(b)
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in relation to
any proposed Utilisation, the Base Currency Amount of any Loans
that are due to be made on or before the proposed Utilisation Date,
but excluding any Loans that are due to be repaid or prepaid on or
before the proposed Utilisation Date.
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- 1 -
“ Base Currency ”
means Sterling.
“ Base Currency Amount
” means, in relation to a Loan, the amount specified in the
Utilisation Request delivered by a Borrower for that Loan (or, if
the amount requested is not denominated in the Base Currency, that
amount converted into the Base Currency at the Lender’s Spot
Rate of Exchange on the date which is two Business Days before the
Utilisation Date or, if later, on the date the Lender receives the
Utilisation Request) adjusted to reflect any repayment or
prepayment of the Loan.
“ Borrower ”
means an Original Borrower or an Additional Borrower unless it has
ceased to be a Borrower in accordance with Clause 25 ( Changes
to the Obligors ).
“ Break Costs ”
means the amount (if any) by which:
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(a)
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the interest
which the Lender should have received for the period from the date
of receipt of all or any part of a Loan or Unpaid Sum to the last
day of the current Interest Period in respect of that Loan or
Unpaid Sum, had the principal amount or Unpaid Sum received been
paid on the last day of that Interest Period;
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(b)
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the amount
which the Lender would be able to obtain by placing an amount equal
to the principal amount or Unpaid Sum received by it on deposit
with a leading bank in the Relevant Interbank Market for a period
starting on the Business Day following receipt or recovery and
ending on the last day of the current Interest Period.
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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 and:
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(a)
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(in relation to
any date for payment or purchase of a currency other than Euro) the
principal financial centre of the country of that currency;
or
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(b)
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(in relation to
any date for payment or purchase of Euro) any TARGET
Day.
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“ Change of Control
” means:
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(a)
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the acquisition
of ownership, directly or indirectly, beneficially or of record, by
any person or group (within the meaning of the United States
Securities Exchange Act of 1934 and the rules of the Securities and
Exchange Commission thereunder as in effect on the date of this
Agreement), of Equity Interests representing more than 30% of
either the aggregate ordinary voting power or the aggregate equity
value represented by the issued and outstanding Equity Interests of
the Company;
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- 2 -
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(b)
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occupation of a
majority of the seats (other than vacant seats) on the board of
directors of the Company by persons who were not:
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(i)
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directors of
the Company on the date of this Agreement;
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(ii)
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nominated by
the board of directors of the Company; or
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(iii)
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appointed by
directors referred to in the preceding clauses (i) and (ii);
or
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(c)
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the occurrence
of a “Change of Control” (or other similar event or
condition however denominated) under any Material
Indebtedness.
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“ Commitment ”
means £20,000,000 to the extent not cancelled, reduced or
transferred under this Agreement.
“ Default ” means
an Event of Default or any event or circumstance specified in
Clause 23 ( Events of Default ) 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.
“ EURIBOR ”
means, in relation to any Loan in Euro:
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(a)
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the applicable
Screen Rate as of the Specified Time on the Quotation Day for the
offering of deposits in Euro for a period comparable to the
Interest Period for that Loan; or
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(b)
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(if no Screen
Rate is available for the Interest Period of that Loan) the cost to
the Lender of deposits in Euro, being the rate, expressed as a
percentage per annum, at which deposits in Euro are offered by the
Lender in the European interbank market as of the Specified Time on
the Quotation Day for a period comparable to the Interest Period
for that Loan.
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“ Euro ” means
the single currency unit of the Participating Member
States.
“ Event of Default
” means any event or circumstance specified as such in Clause
23 ( Events of Default ).
“ Facility ”
means the revolving loan facility made available under this
Agreement as described in Clause 2 ( The Facility
).
“ Facility Fee Rate
” means at any time the rate set forth in the table on
Schedule 8 ( Pricing Schedule ) under the heading
“Facility Fee” and corresponding to the rating of the
Company’s Index Debt in effect at such time.
“ Facility Office
” means the office or offices notified by the Lender to the
Company in writing on or before the date of this Agreement (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.
“ Fee Letter ”
means the letter between the Company and the Lender dated as of
17 February 2006 specifying certain fees to be paid by the
Company to the Lender.
- 3 -
“ Finance Document
” means this Agreement, the Fee Letter, any Accession Letter,
any Resignation Letter and any other document designated as such by
the Lender and the Company.
“ Financial
Indebtedness ” of any Person means, without
duplication:
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(a)
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all obligations
of such Person for borrowed money or with respect to deposits
(other than customer deposits in respect of accounts receivable
maintained in the ordinary course of business consistent with past
practices) or advances of any kind;
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(b)
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all obligations
of such Person evidenced by bonds, debentures, notes or similar
instruments;
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(c)
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all obligations
of such Person upon which interest charges are customarily paid
(excluding trade accounts payable and obligations to pay salary or
benefits under deferred compensation, executive compensation or
other benefit programs);
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(d)
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all obligations
of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person;
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(e)
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all obligations
of such Person in respect of the deferred purchase price of
property or services (excluding current accounts payable incurred
in the ordinary course of business);
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(f)
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all
Indebtedness of others secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on property owned or acquired by such Person,
whether or not the Indebtedness secured thereby has been
assumed;
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(g)
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all Guarantees
by such Person of Indebtedness of others;
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(h)
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all Capital
Lease Obligations and Synthetic Lease Obligations of such
Person;
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(i)
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all
obligations, contingent or otherwise, of such Person as an account
party in respect of letters of credit and letters of
guaranty;
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(j)
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all
obligations, contingent or otherwise, of such Person in respect of
bankers’ acceptances; and
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(k)
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all obligations
of such Person incurred under or in connection with a
Securitization.
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The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness
provide that such Person is not liable therefor.
- 4 -
“ GAAP ” means
generally accepted accounting principles in the United States of
America.
“ Group ” means
the Company and its Subsidiaries for the time being.
“ Guarantor ”
means an Original Guarantor or an Additional Guarantor, unless it
has ceased to be a Guarantor in accordance with Clause 25 (
Changes to the Obligors ).
“ Holding Company
” means, in relation to a company or corporation, any other
company or corporation in respect of which it is a
Subsidiary.
“ Index Debt ”
means the Company’s senior, unsecured, non-credit-enhanced
long-term indebtedness for borrowed money.
“ Interest Period
” means, in relation to a Loan, each period determined in
accordance with Clause 10 ( Interest Periods ) and, in
relation to an Unpaid Sum, each period determined in accordance
with Clause 9.3 ( Default interest ).
“ Lender’s Spot Rate
of Exchange ” means the Lender’s spot rate of
exchange for the purchase of the relevant currency with the Base
Currency in the London foreign exchange market at or about 11:00
a.m. on a particular day.
“ LIBOR ” means,
in relation to any Loan:
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(a)
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the applicable
Screen Rate as of the Specified Time on the Quotation Day for the
offering of deposits in the currency of that Loan and for a period
comparable to the Interest Period for that Loan; or
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(b)
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(if no Screen
Rate is available for the currency or Interest Period of that Loan)
the cost to the Lender of deposits in the currency of that Loan,
being the rate, expressed as a percentage per annum, at which
deposits in such currency are offered by the Lender in the London
interbank market as of the Specified Time on the Quotation Day for
a period comparable to the Interest Period for that
Loan.
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“ Loan ” means a
loan made or to be made under the Facility or the principal amount
outstanding for the time being of that loan.
“ Mandatory Cost
” means the percentage rate per annum calculated by the
Lender in accordance with Schedule 4 ( Mandatory Cost
formulae ).
“ Margin ” means
the rate set forth in the table in Schedule 8 ( Pricing
Schedule ) under the heading “LIBOR Spread” and
corresponding to the rating of the Company’s Index Debt in
effect at such time.
“ Material Adverse
Effect ” means a material adverse effect on:
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(a)
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the business,
operations or financial condition of the Group taken as a
whole;
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(b)
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the ability of
the Obligors (taken as a whole) to perform the payment obligations
under the Finance Documents or to comply with the obligations
in
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- 5 -
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Clause 21 (
Incorporated Undertakings ) insofar as those obligations
relate to Section 6.11 ( Fixed Charge Coverage Ratio )
and Section 6.12 ( Leverage Ratio ) of the U.S. Parent
Agreement; or
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(c)
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the validity or
enforceability of the Finance Documents or the rights or remedies
of the Lender under the Finance Documents.
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“ 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:
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(a)
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(subject to
paragraph (c) below) if the numerically corresponding day is
not a Business Day, that period shall end on the next Business Day
in that calendar month in which that period is to end if there is
one, or if there is not, on the immediately preceding Business
Day;
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(b)
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if there is no
numerically corresponding day in the calendar month in which that
period is to end, that period shall end on the last Business Day in
that calendar month; and
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(c)
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if an Interest
Period begins on the last Business Day of a calendar month, that
Interest Period shall end on the last Business Day in the calendar
month in which that Interest Period is to end.
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The above rules will only apply to
the last Month of any period.
For the avoidance of doubt, nothing
in this definition shall oblige an Obligor to pay interest in
respect of the same amount more than once in respect of any one
day.
“ Moody’s ”
means Moody’s Investors Service, Inc.
“ Newco ” means
Brecon Holdings Limited.
“ Obligor ” means
a Borrower or a Guarantor.
“ Optional Currency
” means a currency (other than the Base Currency) which
complies with the conditions set out in Clause 4.3 ( Conditions
relating to Optional Currencies ).
“ Original Financial
Statements ” means:
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(a)
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in relation to
the Company, the audited consolidated financial statements of the
Group for the financial year ended 30 September 2005;
and
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(b)
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in relation to
each Original Obligor other than the Company, its opening balance
sheet.
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“ Original Obligor
” means an Original Borrower or an Original
Guarantor.
“ Participating Member
State ” means any member state of the European
Communities that adopts or has adopted the Euro as its lawful
currency in accordance with legislation of the European Community
relating to Economic and Monetary Union.
- 6 -
“ Party ” means a
party to this Agreement.
“ Quotation Day ”
means, in relation to any period for which an interest rate is to
be determined:
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(a)
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(if the
currency is Sterling) the first day of that period;
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(b)
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(if the
currency is Euro) two TARGET Days before the first day of that
period; or
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(c)
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(for any other
currency) two Business Days before the first day of that
period,
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unless market practice differs in
the Relevant Interbank Market for a currency, in which case the
Quotation Day for that currency will be determined by the Lender in
accordance with market practice in the Relevant Interbank Market
(and if quotations would normally be given by leading banks in the
Relevant Interbank Market on more than one day, the Quotation Day
will be the last of those days).
“ Rating Agency ”
means each of Moody’s and S&P and such other rating
agency as may be agreed from time to time between the Borrower and
the Lender.
“ Relevant Interbank
Market ” means in relation to Euro, the European
interbank market and in relation to any other currency, the London
interbank market.
“ Reservations ”
means each of the following reservations:
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(a)
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equitable
remedies may be granted or refused at the discretion of the
court;
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(b)
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there are
limitations on enforcement by laws relating to insolvency generally
and other laws generally affecting the rights of
creditors;
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(c)
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there is time
barring of claims under the Limitation Act 1980;
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(d)
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there is the
possibility that an undertaking to assume liability for or to
indemnify against non-payment of United Kingdom stamp duty land tax
may be void; and
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(e)
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there may be
defences of set-off or counterclaim (provided that nothing in this
definition purports to grant any Obligor any such right and is
without prejudice to any restriction contained in the Finance
Documents) and similar principles, rights and defences under the
laws of any jurisdictions in which relevant obligations may have to
be performed.
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“ Resignation Letter
” means a letter substantially in the form set out in
Schedule 6 ( Form of Resignation Letter ).
- 7 -
“ Rollover Loan ”
means one or more Loans:
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(a)
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made or to be
made on the same day that a maturing Loan is due to be
repaid;
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(b)
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the aggregate
amount of which is equal to or less than the maturing
Loan;
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(c)
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in the same
currency as the maturing Loan (unless it arose as a result of the
operation of Clause 6.2 ( Unavailability of a currency ));
and
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(d)
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made or to be
made to the same Borrower for the purpose of refinancing a maturing
Loan.
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“ S&P ” means
Standard & Poor’s, a division of the McGraw-Hill
Companies, Inc.
“ Screen Rate ”
means:
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(a)
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in relation to
LIBOR, the British Bankers Association Interest Settlement Rate for
the relevant currency and period; and
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(b)
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in relation to
EURIBOR, the percentage rate per annum determined by the Banking
Federation of the European Union for the relevant
period,
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displayed on the appropriate page of
the Telerate or Reuters screen, respectively. If the agreed page is
replaced or service ceases to be available, the Lender may specify
another page or service displaying the appropriate rate after
consultation with the Company.
“ Security ”
means a mortgage, charge, pledge, lien or other security interest
securing any obligation of any person or any other agreement or
arrangement having a similar effect.
“ Specified Time
” means a time determined in accordance with Schedule 7 (
Timetables ).
“ Sterling ” and
“ £ ” means the lawful currency of the
United Kingdom.
“ Subsidiary ”
means:
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(a)
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in relation to
the U.S. Parent Agreement, with respect to the Company at any date,
any corporation, limited liability company, partnership,
association or other entity the accounts of which would be
consolidated with those of the Company in the Company’s
consolidated financial statements if such financial statements were
prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership,
association or other entity:
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(i)
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of which
securities or other ownership interests representing more than 50%
of the equity or more than 50% of the ordinary voting power or, in
the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, Controlled or
held;
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(ii)
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that is, as of
such date, otherwise Controlled, by the Company or one or more
subsidiaries of the Company or by the Company and one or more
subsidiaries of the Company; and
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- 8 -
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(b)
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with respect to
this Agreement, in relation to any company or corporation, a
company or corporation:
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(i)
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which is
controlled, directly or indirectly, by the first mentioned company
or corporation;
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(ii)
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more than half
the issued share capital of which is beneficially owned, directly
or indirectly by the first mentioned company or corporation;
or
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(iii)
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which is a
Subsidiary of another Subsidiary of the first mentioned company or
corporation,
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|
|
|
and for this
purpose, a company or corporation shall be treated as being
controlled by another if that other company or corporation is able
to direct its affairs and/or to control the composition of its
board of directors or equivalent body.
|
“ TARGET ” means
Trans European Automated Real time Gross Settlement Express
Transfer payment system.
“ TARGET Day ”
means any day on which TARGET is open for the settlement of
payments in Euro.
“ Tax ” means any
tax, levy, impost, duty or other charge or withholding of a similar
nature (including any penalty or interest payable in connection
with any failure to pay or any delay in paying any of the
same).
“ Taxes Act ”
means the Income and Corporation Taxes Act 1988.
“ Termination Date
” means the date that is three years from the date of this
Agreement.
“ Unpaid Sum ”
means any sum due and payable but unpaid by an Obligor under the
Finance Documents.
“ U.S. Parent Agreement
” means, subject to paragraph (e) of Clause 1.2 (
Construction ) and Clause 1.3 ( Third Party Rights ),
the credit agreement dated as of December 2, 2004 among the
Company, JPMorgan Chase Bank, N.A. as Administrative Agent, the
lenders named therein and others, as amended by a First Amendment
dated as of September 29, 2005.
“ Utilisation ”
means a utilisation of the Facility.
“ Utilisation Date
” means the date of a Utilisation, being the date on which a
Loan is to be made.
“ Utilisation Request
” means a notice substantially in the form set out in
Schedule 3 ( Utilisation Request ).
- 9 -
“ VAT ” means
value added tax as provided for in the Value Added Tax Act 1994 and
any other tax of a similar nature.
|
|
(a)
|
Unless a
contrary indication appears, any reference in this Agreement
to:
|
|
|
(i)
|
the “
Lender ”, any “ Obligor ” or any
“ Party ” shall be construed so as to include
its successors in title, permitted assigns and permitted
transferees;
|
|
|
(ii)
|
“
assets ” includes present and future properties,
revenues and rights of every description;
|
|
|
(iii)
|
the “
European interbank market ” means the interbank market
for Euro operating in Participating Member States;
|
|
|
(iv)
|
a “
Finance Document ” or any other agreement or
instrument is a reference to that Finance Document or other
agreement or instrument as amended, novated, supplemented, extended
or restated;
|
|
|
(v)
|
“
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;
|
|
|
(vi)
|
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;
|
|
|
(vii)
|
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;
|
|
|
(viii)
|
a provision of
law is a reference to that provision as amended or
re-enacted;
|
|
|
(ix)
|
a time of day
is a reference to London time; and
|
|
|
(x)
|
“
US$ ” denotes the lawful currency of the United States
of America.
|
|
|
(b)
|
Section, Clause
and Schedule headings are for ease of reference only.
|
|
|
(c)
|
Unless a
contrary indication appears, a term used in any other Finance
Document or in any notice given under or in connection with any
Finance Document has the same meaning in that Finance Document or
notice as in this Agreement.
|
- 10 -
|
|
(d)
|
A Default
(other than an Event of Default) is “ continuing
” if it has not been remedied or waived and an Event of
Default is “ continuing ” if it has not been
remedied or waived.
|
|
|
(e)
|
Notwithstanding
paragraph (a)(iv) of Clause 1.2 ( Construction ) and subject
to Clause 20.3 ( Notification of amendments to U.S. Parent
Agreement ), any reference in this Agreement to the “U.S.
Parent Agreement” means such agreement as may be amended,
varied, modified or supplemented from time to time, provided that
where the consent of all the Lenders (as defined in the U.S. Parent
Agreement) is required for an amendment, variation, modification or
supplementation thereof, the consent of the Lender hereunder shall
be required in order for such amendment, variation, modification or
supplementation to be incorporated into this Agreement. If the U.S.
Parent Agreement ceases to be in effect at any time, references
herein to the provisions thereof shall mean the provisions thereof
as in effect under this Agreement immediately prior to such
cessation.
|
|
|
(a)
|
Unless
expressly provided to the contrary in a Finance Document a person
who is not a Party has no right under the Contracts (Rights of
Third Parties) Act 1999 (the “ Third Parties Act
”) to enforce or to enjoy the benefit of any term of this
Agreement.
|
|
|
(b)
|
Notwithstanding
any term of any Finance Document, the consent of any person who is
not a Party is not required to rescind or vary this Agreement at
any time.
|
Subject to the terms of this
Agreement, the Lender makes available to the Borrowers a
multicurrency revolving credit facility in an aggregate amount
equal to the Commitment.
Each Borrower shall apply all
amounts borrowed by it under the Facility to make acquisitions and
for general corporate purposes.
The Lender is not bound to monitor
or verify the application of any amount borrowed pursuant to this
Agreement.
|
4.
|
CONDITIONS
OF UTILISATION
|
|
4.1
|
Initial
conditions precedent
|
No Borrower may deliver a
Utilisation Request unless the Lender has received all of the
documents and other evidence listed in Part I of Schedule 2 (
Conditions Precedent ) in form and substance satisfactory to
it. The Lender shall notify the Company promptly upon being so
satisfied.
- 11 -
|
4.2
|
Further
conditions precedent
|
The Lender will only be obliged to
and will make a Loan available to a Borrower if the conditions set
out in this Agreement have been met and on the date of the
Utilisation Request and on the proposed Utilisation
Date:
|
|
(a)
|
in the case of
a Rollover Loan, no Event of Default is continuing or would result
from the proposed Loan and, in the case of any other Loan, no
Default is continuing or would result from the proposed Loan;
and
|
|
|
(b)
|
the
representations and warranties made under Clause 19 (
Representations ) (other than the representations and
warranties contained in Clause 19.6 ( Deduction of Tax ),
paragraph (a) of Clause 19.8 ( No default ) (but
without prejudice to paragraph (a) above) and Clause 19.10 (
Financial Statements )) shall be true in all material
respects as though made on the date of such Utilisation Request or
such Utilisation Date.
|
|
4.3
|
Conditions
relating to Optional Currencies
|
|
|
(a)
|
A currency will
constitute an Optional Currency in relation to a Loan
if:
|
|
|
(i)
|
it is readily
available in the amount required and freely convertible into the
Base Currency in the Relevant Interbank Market on the Quotation Day
and the Utilisation Date for that Loan; and
|
|
|
(b)
|
If a Borrower
has specified in a Utilisation Request that Euro is the currency of
the proposed Loan, that Loan will only be made available in Euro
unit or any other units of Euro agreed by the Lender.
|
|
4.4
|
Maximum
number of Loans
|
A Borrower may not deliver a
Utilisation Request if as a result of the proposed Utilisation ten
or more Loans would be outstanding at any one time.
|
5.1
|
Delivery of
a Utilisation Request
|
A Borrower may utilise the Facility
by delivery to the Lender of a duly completed Utilisation Request
not later than the Specified Time.
|
5.2
|
Completion
of a Utilisation Request
|
|
|
(a)
|
Each
Utilisation Request is irrevocable and will not be regarded as
having been duly completed unless:
|
|
|
(i)
|
the proposed
Utilisation Date is a Business Day within the Availability
Period;
|
- 12 -
|
|
(ii)
|
the currency
and amount of the Utilisation comply with Clause 5.3 ( Currency
and amount ); and
|
|
|
(iii)
|
the proposed
Interest Period complies with Clause 10 ( Interest Periods
).
|
|
|
(b)
|
Only one Loan
may be requested in each Utilisation Request.
|
|
|
(a)
|
The currency
specified in a Utilisation Request must be the Base Currency or an
Optional Currency.
|
|
|
(b)
|
The amount of
the proposed Loan must be:
|
|
|
(i)
|
if the currency
selected is the Base Currency, a minimum of £250,000 or, if
less, the Available Commitment; or
|
|
|
(ii)
|
if the currency
selected is Euro, a minimum of EUR250,000 or, if less, the
Available Commitment; and
|
|
|
(iii)
|
in any event
such that its Base Currency Amount is less than or equal to the
Available Commitment.
|
|
6.1
|
Selection of
currency
|
A Borrower (or the Company on behalf
of a Borrower) shall select the currency of a Loan in a Utilisation
Request.
|
6.2
|
Unavailability of a currency
|
If before the Specified Time on any
Quotation Day:
|
|
(a)
|
the Lender
notifies the relevant Borrower that the Optional Currency requested
is not readily available to it in the amount required;
or
|
|
|
(b)
|
the Lender
notifies the relevant Borrower that compliance with its obligation
to fund a Loan in the proposed Optional Currency would contravene a
law or regulation applicable to it,
|
then the Loan shall be denominated
in the Base Currency (in an amount equal to the Base Currency
Amount or, in respect of a Rollover Loan, an amount equal to the
Base Currency Amount of the maturing Loan that is due to be
repaid).
Each Borrower which has drawn a Loan
shall repay that Loan on the last day of its Interest
Period.
|
8.
|
PREPAYMENT
AND CANCELLATION
|
If it becomes unlawful in any
applicable jurisdiction for the Lender to perform any of its
obligations as contemplated by this Agreement or to fund any
Loan:
|
|
(a)
|
the Lender
shall promptly notify the Company upon becoming aware of that
event;
|
- 13 -
|
|
(b)
|
upon such
notification, the Commitment will be immediately cancelled;
and
|
|
|
(c)
|
each Borrower
shall repay the Loans made to it on the last day of the Interest
Period for each Loan occurring after the Lender has notified the
Company or, if earlier, the date specified by the Lender in the
notice delivered to the Company (being no earlier than the last day
of any applicable grace period permitted by law).
|
|
8.2
|
Voluntary
cancellation
|
The Company may, if it gives the
Lender not less than five Business Days’ (or such shorter
period as the Lender may agree) prior notice, cancel the whole or
any part (being a minimum amount of £250,000) of the Available
Commitment.
|
8.3
|
Voluntary
Prepayment of Loans
|
The Borrower to which a Loan has
been made may, if it gives the Lender not less than three Business
Days’ (or such shorter period as the Lender may agree) prior
notice, prepay the whole or any part of a Loan (but if in part,
being an amount that reduces the Base Currency Amount of the Loan
by a minimum amount of £250,000).
|
|
(a)
|
Any notice of
cancellation or prepayment given by any Party under this Clause 8 (
Prepayment and cancellation ) shall be irrevocable and,
unless a contrary indication appears in this Agreement, shall
specify the date or dates upon which the relevant cancellation or
prepayment is to be made and the amount of that cancellation or
prepayment.
|
|
|
(b)
|
Any prepayment
under this Agreement shall be made together with accrued interest
on the amount prepaid and, subject to any Break Costs, without
premium or penalty.
|
|
|
(c)
|
Unless a
contrary indication appears in this Agreement, any part of the
Facility which is prepaid may be reborrowed in accordance with the
terms of this Agreement.
|
|
|
(d)
|
The Borrowers
shall not repay or prepay all or any part of the Loans or cancel
all or any part of the Commitment except at the times and in the
manner expressly provided for in this Agreement.
|
|
|
(e)
|
No amount of
the Commitment cancelled under this Agreement may be subsequently
reinstated.
|
|
9.1
|
Calculation
of interest
|
The rate of interest on each Loan
for each Interest Period is the percentage rate per annum which is
the aggregate of the applicable:
- 14 -
|
|
(b)
|
LIBOR or, in
relation to any Loan in Euro, EURIBOR; and
|
|
|
(c)
|
Mandatory Cost,
if any.
|
The Borrower to which a Loan has
been made shall pay accrued interest on that Loan on the last day
of each Interest Period (and, if the Interest Period is longer than
six Months, on the dates falling at six monthly intervals after the
first day of the Interest Period).
|
|
(a)
|
If an Obligor
fails to pay any amount payable by it under a Finance Document on
its due date, interest shall accrue on the overdue amount from the
due date up to the date of actual payment (both before and after
judgment) at a rate which, subject to paragraph (b) below, is
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 in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the
Lender (acting reasonably). Any interest accruing under this Clause
9.3 ( Default Interest) shall be immediately payable by the
Obligor on demand by the Lender.
|
|
|
(b)
|
If any overdue
amount consists of all or part of a Loan which became due on a day
which was not the last day of an Interest Period relating to that
Loan:
|
|
|
(i)
|
the first
Interest Period for that overdue amount shall have a duration equal
to the unexpired portion of the current Interest Period relating to
that Loan; and
|
|
|
(ii)
|
the rate of
interest applying to the overdue amount during that first Interest
Period shall be two per cent. higher than the rate which would have
applied if the overdue amount had not become due.
|
|
|
(c)
|
Default
interest (if unpaid) arising on an overdue amount will be
compounded with the overdue amount at the end of each Interest
Period applicable to that overdue amount but will remain
immediately due and payable.
|
|
9.4
|
Notification
of rates of interest
|
The Lender shall promptly notify the
relevant Borrower of the determination of a rate of interest under
this Agreement.
|
10.1
|
Selection of
Interest Periods
|
|
|
(a)
|
A Borrower (or
the Company on behalf of a Borrower) may select an Interest Period
for a Loan in the Utilisation Request for that Loan.
|
|
|
(b)
|
Subject to this
Clause 10 ( Interest Periods ), a Borrower (or the Company)
may select an Interest Period of one week, two weeks, one Month,
three Months or six Months or any other period agreed between the
Company and the Lender.
|
- 15 -
|
|
(c)
|
An Interest
Period for a Loan shall not extend beyond the Termination
Date.
|
|
|
(d)
|
Each Interest
Period for a Loan shall start on the Utilisation Date.
|
|
|
(e)
|
A Loan has one
Interest Period only.
|
If an Interest Period would
otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that calendar
month (if there is one) or the preceding Business Day (if there is
not).
|
11.
|
CHANGES TO
THE CALCULATION OF INTEREST
|
If the Lender determines (acting
reasonably) that adequate and fair means do not exist for
ascertaining LIBOR or, if applicable, EURIBOR for a Loan for any
Interest Period, then the rate of interest on that Loan for the
Interest Period shall be the percentage rate per annum which is the
sum of:
|
|
(b)
|
the rate
notified to the Company by the Lender as soon as practicable and in
any event at least 2 Business Days before interest is due to be
paid in respect of that Interest Period, to be that which expresses
as a percentage rate per annum the cost to the Lender of funding
that Loan from whatever source it may reasonably select;
and
|
|
|
(c)
|
the Mandatory
Cost, if any.
|
|
11.2
|
Alternative
basis of interest or funding
|
|
|
(a)
|
If after
receiving notification under Clause 11.1 ( Market disruption
) the Lender or the Company so requires, the Lender and the Company
shall enter into negotiations (for a period of not more than thirty
days) with a view to agreeing a substitute basis for determining
the rate of interest.
|
|
|
(b)
|
Any alternative
basis agreed pursuant to paragraph (a) above shall be binding
on all Parties unless otherwise agreed between the
Parties.
|
|
|
(a)
|
Each Borrower
shall, within five Business Days of demand by the Lender, pay to
the Lender its Break Costs attributable to all or any part of a
Loan or Unpaid Sum being paid by that Borrower on a day other than
the last day of an Interest Period for that Loan or Unpaid
Sum.
|
|
|
(b)
|
The Lender
shall provide to the Company, if so requested, a certificate
confirming the amount of its Break Costs and the basis of
calculating such amount for any Interest Period in which they
accrue.
|
- 16 -
|
|
(a)
|
The Company
shall pay to the Lender a facility fee in the Base Currency
computed at the Facility Fee Rate on the Commitment then in
effect.
|
|
|
(b)
|
The accrued
facility fee is payable in arrears on 1 January, 1 April,
1 July and 1 October of each year (provided that if any
such day is not a Business Day, on the next Business Day) during
the Availability Period, on the last day of the Availability Period
and, if cancelled in full or in part, on the cancelled amount of
the Commitment at the time the cancellation is
effective.
|
|
13.
|
TAX GROSS UP
AND INDEMNITIES
|
“ Qualifying Lender
” means a Lender which is beneficially entitled to interest
payable to it in respect of an advance under a Finance Document
and:
|
|
(A)
|
which is a bank
(as defined for the purposes of Section 349 of the Taxes Act)
making an advance under a Finance Document; or
|
|
|
(B)
|
in respect of
an advance made under a Finance Document by a person that was a
bank (as defined for the purpose of section 349 of the Taxes Act)
at the time that advance was made,
|
|
|
|
and which is
within the charge to United Kingdom corporation tax as respects any
payments of interest made in respect of that advance; or
|
|
|
(ii)
|
a company
resident in the United Kingdom for United Kingdom tax
purposes;
|
|
|
(iii)
|
a partnership
each member of which is a company resident in the United Kingdom
for United Kingdom tax purposes; or
|
|
|
(iv)
|
a company not
so resident in the United Kingdom which carries on a trade in the
United Kingdom through a permanent establishment and which brings
into account interest payable in respect of that advance in
computing its chargeable profits (within the meaning given by
section 11(2) of the Taxes Act).
|
“ 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 the Lenders under
Clause 13.2 ( Tax gross up ) or a payment under Clause 13.3
( Tax indemnity ).
- 17 -
|
|
(b)
|
Unless a
contrary indication appears, in this Clause 13 a reference to
“ determines ” or “ determined
” means a determination made in the absolute discretion of
the person making the determination.
|
|
|
(a)
|
Each Obligor
shall make all payments to be made by it without any Tax Deduction,
unless a Tax Deduction is required by law.
|
|
|
(b)
|
The Company
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 Lender accordingly. Similarly, the
Lender shall promptly notify the Company on becoming so aware in
respect of a payment payable to the Lender.
|
|
|
(c)
|
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.
|
|
|
(d)
|
An Obligor is
not required to make an increased payment to the Lender under
paragraph (c) above for a Tax Deduction in respect of tax
imposed by the United Kingdom from a payment of interest on a Loan,
if on the date on which the payment falls due the payment could
have been made to the Lender without a Tax Deduction if it was a
Qualifying Lender, but on that date the Lender is not or has ceased
to be a Qualifying Lender other than as a result of any change
after the date of this Agreement in (or in the interpretation,
administration, or application of) any law, or any published
practice or concession of any relevant taxing authority.
|
|
|
(e)
|
If an Obligor
is required to make a Tax Deduction, that Obligor shall make that
Tax Deduction and any payment required in connection with that Tax
Deduction within the time allowed and in the minimum amount
required by law.
|
|
|
(f)
|
Within thirty
days of making either a Tax Deduction or any payment required in
connection with that Tax Deduction, the Obligor making that Tax
Deduction shall deliver to the Lender evidence reasonably
satisfactory to the Lender that the Tax Deduction has been made or
(as applicable) any appropriate payment paid to the relevant taxing
authority.
|
|
|
(a)
|
The Company
shall (within ten days of demand (setting out in reasonable detail
the basis and calculation of such claim) by the Lender) pay to the
Lender an amount equal to the loss, liability or cost which the
Lender (acting reasonably) determines will be or has been (directly
or indirectly) suffered by it for or on account of Tax in respect
of a Finance Document.
|
- 18 -
|
|
(b)
|
Paragraph
(a) above shall not apply:
|
|
|
(i)
|
with respect to
any Tax assessed on the Lender:
|
|
|
(A)
|
under the law
of the jurisdiction in which the Lender is incorporated or, if
different, the jurisdiction (or jurisdictions) in which the Lender
is treated as resident for tax purposes; or
|
|
|
(B)
|
under the law
of the jurisdiction in which the Lender’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
the Lender; or
|
|
|
(ii)
|
to the extent a
loss, liability or cost:
|
|
|
(A)
|
is compensated
for by an increased payment under Clause 13.2 ( Tax gross up
); or
|
|
|
(B)
|
would have been
compensated for by an increased payment under Clause 13.2 ( Tax
gross up ) but was not so compensated solely because one of the
exclusions in paragraph (d) of Clause 13.2 ( Tax gross
up ) applied.
|
|
|
(c)
|
If the Lender
makes, or intends to make a claim under this Clause 13.3 ( Tax
Indemnity ), it shall promptly notify the Company of the event
which will give, or has given, rise to the claim.
|
If an Obligor makes a Tax Payment
and the Lender determines that:
|
|
(a)
|
a Tax Credit is
attributable to that Tax Payment; and
|
|
|
(b)
|
it has
obtained, utilised and retained that Tax Credit,
|
the Lender shall promptly pay an
amount to the Obligor which the Lender 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.
The Company shall pay and, within
ten days of demand (setting out in reasonable detail the basis and
calculation of such claim), indemnify the Lender against any cost,
loss or liability that the Lender incurs in relation to all stamp
duty, registration and other similar Taxes payable in respect of
any Finance Document.
|
|
(a)
|
All
consideration expressed to be payable under a Finance Document by
an Obligor to the Lender shall be deemed to be exclusive of any
VAT. If VAT is chargeable on any supply made by the Lender to an
Obligor in connection with any Finance Document, the relevant
Obligor shall pay to the Lender (in addition to and at the same
time as paying the consideration) an amount equal to the amount of
the VAT.
|
- 19 -
|
|
(b)
|
Where a Finance
Document requires an Obligor to reimburse the Lender for any costs
or expenses, that Obligor shall also at the same time pay and
indemnify the Lender against all VAT incurred by the Lender in
respect of the costs or expenses to the extent that the Lender
reasonably determines that it is not entitled to credit or
repayment of the VAT.
|
|
|
(a)
|
Subject to
Clause 14.3 ( Exceptions ) the Company shall, within ten
days of a demand by the Lender (setting out in reasonable detail
the basis and calculation of such claim), pay to the Lender the
amount of any Increased Costs incurred by the Lender or any of its
Affiliates as a result of (i) the introduction of or any
change in (or in the interpretation, administration or application
of) any law or regulation or (ii) compliance with any law or
regulation made after the date of this Agreement.
|
|
|
(b)
|
In this
Agreement “ Increased Costs ” means:
|
|
|
(i)
|
a reduction in
the rate of return from the Facility or on the Lender’s (or
its Affiliate’s) overall capital;
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(ii)
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an additional
or increased cost; or
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(iii)
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a reduction of
any amount due and payable under any Finance Document,
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which is
incurred or suffered by the Lender or any of its Affiliates to the
extent that it is attributable to the Lender having entered into
the Commitment or funding or performing its obligations under any
Finance Document.
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14.2
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Increased
cost claims
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(a)
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If the Lender
intends to make a claim pursuant to Clause 14.1 ( Increased
costs ) it shall notify the Company.
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(b)
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The Lender
shall provide to the Company, if so requested, a certificate
confirming the amount of its Increased Costs.
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(a)
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Clause 14.1 (
Increased costs ) does not apply to the extent any Increased
Cost is:
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(i)
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attributable to
a Tax Deduction required by law to be made by an
Obligor;
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(ii)
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compensated for
by Clause 13.3 ( Tax indemnity ) (or would have been
compensated for under Clause 13.3 ( Tax indemnity ) but was
not so compensated solely because the exclusion in paragraph
(b) of Clause 13.3 ( Tax indemnity )
applied);
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(iii)
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compensated for
by the payment of the Mandatory Cost; or
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(iv)
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attributable to
the wilful breach by the Lender or its Affiliates of any law or
regulation.
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(b)
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In this Clause
14.3, a reference to a “ Tax Deduction ” has the
same meaning given to the term in Clause 13.1 ( Definitions)
.
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(a)
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If any sum due
from an Obligor under the Finance Documents (a “ Sum
”), or any order, judgment or award given or made in relation
to a Sum, has to be converted from the currency (the “
First Currency ”) in which that Sum is payable into
another currency (the “ Second Currency ”) for
the purpose of:
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(i)
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making or
filing a claim or proof against that Obligor;
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(ii)
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obtaining or
enforcing an order, judgment or award in relation to any litigation
or arbitration proceedings,
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that Obligor
shall as an independent obligation, within ten days of demand
(setting out in reasonable detail the basis and calculation of such
claim), indemnify the Lender 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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(b)
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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.
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(a)
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The Company
shall (or shall procure that an Obligor will), within ten days of
demand (setting out in reasonable detail the basis and calculation
of such claim), indemnify the Lender against any cost (including,
without limitation, reasonable costs and expenses of legal
advisers), loss or liability incurred by the Lender as a result
of:
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(i)
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the occurrence
of any Event of Default which is continuing;
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(ii)
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a failure by an
Obligor to pay any amount due under a Finance Document on its due
date;
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(iii)
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funding, or
making arrangements to fund, a Loan requested by a Borrower in a
U
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