Document:

utmd8k20110323gbpguar.htm

Exhibit 10.13

 

	  
	
Guarantee

 

	  
	
The entities listed in Schedule 1

 

and

 

JPMorgan Chase Bank, N.A. as Lender

	
(1)

 

 

 

(2)

	
Ref: KH06

Burges Salmon LLP

www.burges-salmon.com

Tel: +44 (0) 117 939 2000

Fax: +44 (0)117 902 4400

	 

  

  

  

CONTENTS

 

	
Clause

	
Heading

	
Page

	
1

	
DEFINITIONS AND INTERPRETATION

	
1

	
2

	
GUARANTEE

	
5

	
3

	
PAYMENTS AND TAXES

	
10

	
4

	
REPRESENTATIONS AND WARRANTIES

	
11

	
5

	
COVENANTS

	
13

	
6

	
BENEFIT OF THIS GUARANTEE

	
14

	
7

	
COSTS AND EXPENSES

	
14

	
8

	
STAMP TAXES

	
14

	
9

	
CERTIFICATES AND DETERMINATIONS

	
15

	
10

	
SET-OFF

	
15

	
11

	
ASSIGNMENT

	
15

	
12

	
AMENDMENTS

	
16

	
13

	
NOTICES

	
16

	
14

	
REMEDIES AND WAIVERS

	
16

	
15

	
PARTIAL INVALIDITY

	
17

	
16

	
EXECUTION OF GUARANTEE AS A DEED

	
17

	
17

	
COUNTERPARTS

	
17

	
18

	
PERPETUITY PERIOD

	
17

	
19

	
GOVERNING LAW

	
17

	
20

	
ENFORCEMENT

	
17

	
Schedule 1 - Guarantors

	
18

	
Schedule 2 - Principals

	
18

 

  

  

  

THIS GUARANTEE is made as a deed on the 18 day of March 2011

 

BETWEEN:

 

	
(1)

	
THE ENTITIES LISTED IN SCHEDULE 1 (each a "Guarantor" and together the "Guarantors"); and

 

	
(2)

	
JPMORGAN CHASE BANK, N.A. (the "Lender").

 

BACKGROUND:

 

	
(A)

	
By an agreement (the "Facility Agreement") dated on or about the date of this Guarantee and made between the Borrower (as defined below) (1) and the Lender (2), the Lender has agreed, upon and subject to the terms and conditions of the relevant documentation, to make available certain financial facilities to the Borrower.

 

	
(B)

	
The execution and delivery of this Guarantee is a condition precedent to the Lender making the facilities available under the Facility Agreement.

 

IT IS AGREED as follows:

 

	
1

	
DEFINITIONS AND INTERPRETATION

 

	
1.1

	
Definitions

 

In this Guarantee:

 

"Borrower" means Femcare Group Limited (registered in England no. 5147637) whose registered office is at Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ;

 

"Business Day" means a day (other than Saturday or Sunday) on which banks are open for general business in London;

 

"Collateral Instruments" means notes, bills of exchange, certificates of deposit and other negotiable and non-negotiable instruments, guarantees, and any other documents or instruments which contain or evidence an obligation (with or without security) to pay, discharge, or be responsible directly or indirectly for, any indebtedness or liabilities of a Principal or any other person liable and includes security documents (and "Collateral Instrument" shall be construed accordingly);

 

"Default Rate" means two per cent per annum over the rate which would have been payable by the relevant Principal pursuant to its facility agreements with the Lender;

 

"Dissolution" of a person includes the amalgamation, reconstruction (other than as a part of a solvent reconstruction or amalgamation the terms of which have been expressly approved by the Lender), reorganisation, administration, administrative or other receivership or dissolution or liquidation of that person or the entry by that person into a voluntary arrangement or composition or similar arrangement with any of its creditors, and any equivalent  or analogous proceeding or arrangement in any jurisdiction by whatever name known and any step taken (including the giving or filing of notice in relation to the appointment of an administrator or the making of an application or formal request or the presentation of a petition or the passing of a resolution or the making of an order or any other measures as may be competent) for or with a view to any of the foregoing;

 

  

1

  

 

"Expenses" means all costs, charges, losses, liabilities, expenses and other sums (including, but not limited to, legal, accountants' and other professional fees) and any Taxes thereon;

 

"Guarantee" includes each separate or independent stipulation or agreement by the Guarantor contained in this Guarantee;

 

"Guaranteed Obligations" means, all obligations and liabilities of any kind of each Principal from time to time owed to the Lender, whether they are:

 

	
  

	
(a)

	
to pay money or perform ( or not to perform) any other act;

 

	
  

	
(b)

	
express or implied;

 

	
  

	
(c)

	
present, future, actual or contingent;

 

	
  

	
(d)

	
joint or several;

 

	
  

	
(e)

	
incurred as principal or surety or in any other manner;

 

	
  

	
(f)

	
originally owing to the person claiming performance or acquired by that person from  someone else;

 

	
  

	
(g)

	
denominated in Sterling or in any other currency; or

 

	
  

	
(h)

	
incurred on any banking account or in any other manner whatsoever

 

and include, but are in no way limited to, all such obligations and liabilities of the Borrower under or in connection with the Facility Agreement and any and all obligations, contingent or otherwise, whether now existing or hereafter arising under or in connection with Hedging Agreements (as defined under Facility Agreement);

 

"Guaranteed Period" means the period commencing on the date of this Guarantee and ending on the date on which the last Guarantor is irrevocably, unconditionally and expressly  released from any further guarantee or other obligation under this Guarantee by the Lender;

 

"Incapacity" means in relation to a person the insolvency, liquidation, Dissolution, winding-up, administration, receivership, or other incapacity or any analogous proceeding of or in relation to  that person whatsoever;

 

"Party" means a party to this Guarantee;

 

"Principal" means each of the entities listed in Schedule 2;

 

  

2

  

"Proceeding" means any litigation, arbitration or administrative proceeding, suit or action under the laws of any jurisdiction of or before any court, arbitral or administrative body or agency;

 

"Taxes" includes all present and future taxes, levies, assessments, imposts, duties or other  charges or withholding of a similar nature (including any penalties or late interest payable in connection with any failure to pay or delay in paying any of the same and "Taxation" shall be construed accordingly;

 

"Tax Deduction" means a deduction or withholding for or on account of Tax from a payment under this Guarantee;

 

"Termination Date" has the meaning given to that term by clause 2.7

 

"Value Added Tax" means  value added tax charged in accordance with the provisions of the Value Added Tax Act 1994 and any other tax on value or turnover which is enacted in addition to or in substitution for it.

 

	
1.2

	
Definitions in the Facility Agreement/other

 

Unless the contrary intention appears, a term defined in the Facility Agreement has the same meaning when used in this Guarantee.

 

	
1.3

	
Construction of particular terms

 

In this Guarantee, unless a contrary indication appears, any reference to:

 

	
  

	
(a)

	
an "amendment" includes amendment, implementation, novation, re-enactment, replacement, reinstatement or variation and "amend" will be considered accordingly;

 

	
  

	
(b)

	
"assets" includes present and future properties, revenues and rights of every description whether or not contingent and whether tangible or intangible;

 

	
  

	
(c)

	
a "company" includes any company, corporation or other body corporate, wherever and however incorporated or established;

 

	
  

	
(d)

	
the "Guarantor" or the "Lender"  shall be construed so as to include any permitted successors, permitted assigns and permitted transferees of that person;

 

	
  

	
(e)

	
"this Guarantee" or any other agreement, deed, document or instrument is a reference to this Guarantee or other agreement, deed, document or instrument as it may have been amended, supplemented, replaced or novated from time to time and includes a reference to any agreement, deed, document or instrument which amends, supplements, replaces, novates or is entered into, made or given pursuant to or in accordance with any of the terms of this Guarantee or, as the case may be, the relevant agreement, deed, document or instrument;

 

	
  

	
(f)

	
a "guarantee" includes references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any financial indebtedness and "guaranteed" shall be construed accordingly;

 

  

3

  

 

	
  

	
(g)

	
the word "including" and the phrase "and includes" are each without limitation;

 

	
  

	
(h)

	
"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;

 

	
  

	
(i)

	
"law" includes common or customary law, principles of equity and any constitution, code of practice, decree, judgement, decision, legislation, order, ordinance, regulation, bye-law, statute, treaty or other legislative measure in any jurisdiction or any present or future directive, regulation, guideline, request, rule or requirement (in each case, whether or not having the force of law but, if not having the force of law, the compliance with which is in accordance with the general practice of persons to whom the directive, regulation, guideline, request, rule or requirement is intended to apply) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

	
  

	
(j)

	
a "person" includes any individual, firm, company, corporation, government, state or agency of a state, or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality) and includes that persons permitted successors and assigns;

 

	
  

	
(k)

	
a "regulation" includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having the force of law, being a regulation, rule, directive, request or guideline with which a prudent person carrying on the same or similar business as the Principal would comply) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

	
  

	
(l)

	
"rights" includes all rights, title, benefits, powers, privileges, interests, claims, authorities, discretions, remedies, liberties, easements, quasi-easements and appurtenances (in each case, of every kind, present, future and contingent);

 

	
  

	
(m)

	
"security" or "security interest" includes any mortgage, charge, pledge, lien, security assignment, hypothecation or, trust or other arrangement for the purpose of providing security and any other encumbrance or security interest of any kind having the effect of securing any obligation of any person (including, without limitation, the deposit of moneys, property or title documents with a person with the intention of affording such person a right of set-off or lien) and any other agreement or any other type of arrangement having a similar effect.

 

	
1.4

	
Interpretation

 

	
  

	
(a)

	
Unless a contrary indication appears in this Guarantee:

 

  

4

  

	
  

	
(i)

	
words importing the singular shall include the plural and vice versa;

 

	
  

	
(ii)

	
a reference to any party or person shall be construed as including its and any subsequent successors in title, permitted transferees and permitted assigns, in each case in accordance with their respective interests; and

 

	
  

	
(iii)

	
references to any provision of any law or regulation are to be construed as referring to that provision as it may have been, or may from time to time be, extended, amended or re-enacted, and as referring to all bye-laws, instruments, orders, regulations or subordinate legislation for the time being made under or deriving validity from that provision.

 

	
  

	
(b)

	
Section, clause, sub-clause and Schedule headings are for ease of reference only and shall be ignored in construing this Guarantee.

 

	
  

	
(c)

	
The table of contents to this Guarantee does not affect is interpretation.

 

	
1.5

	
Third Party Rights

 

A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any terms of this Guarantee but any third party right which exists or is available independently of that Act is preserved.

 

	
2

	
GUARANTEE

 

	
2.1

	
Covenant to pay

 

Each Guarantor irrevocably and unconditionally, jointly and severally guarantees to the Lender to punctually pay and discharge on demand all Guaranteed Obligations now or hereafter due, owing or incurred to the Lender as and when the same become due for payment or discharge whether by acceleration or otherwise.

 

	
2.2

	
Guarantor as principal debtor and indemnity

 

As a separate and independent stipulation, each Guarantor agrees that if any purported obligation or liability of any Principal which would have been the subject of this Guarantee had it been valid and enforceable is not or ceases to be valid or enforceable against that Principal on any ground whatsoever whether or not known to the Lender, the Guarantor shall nevertheless be liable to the Lender in respect of that purported obligation or liability as if the same were fully valid and enforceable and that Guarantor was the principal debtor in respect thereof.  As an original and independent obligation, each Guarantor hereby agrees to keep the Lender fully indemnified on demand against all damages, losses, costs and expenses arising from any failure of any Principal to perform or discharge any such purported obligation or liability or resulting from any of the obligations of a Principal in respect of any Guaranteed Obligations being or becoming void or voidable or unenforceable or ineffective against that Principal (including all Expenses incurred by the Lender in preserving or enforcing or attempting to preserve and enforce its rights under this Guarantee).

 

  

5

  

 

	
2.3

	
Interest

 

The Guarantor will pay interest (as well after as before judgment) on:

 

	
  

	
(a)

	
each amount demanded of it under this Guarantee; and

 

	
  

	
(b)

	
any Expenses or other amounts payable by the Guarantor under or in connection with this Guarantee

 

at the Default Rate.  Such interest shall accrue daily (as well after or before judgement) from and including the date when the relevant amount or Expense first became due and be compounded monthly until actual payment or discharge.

 

	
2.4

	
Statements of account conclusive

 

Any statement of account of a Principal or a Guarantor, signed as correct by an authorised signatory of the Lender and showing the amount of the Guaranteed Obligations shall, in the absence of manifest error, be binding and conclusive on and against that Guarantor.

 

	
2.5

	
No security taken by the Guarantors

 

Each Guarantor warrants that it has not taken or received, and undertakes that until all the Guaranteed Obligations have been paid or discharged in full, it shall not take or receive, the benefit of any security interest from any Principal or any other person in respect of that Guarantor's obligations under this Guarantee.

 

	
2.6

	
Continuing security and other matters

 

This Guarantee shall:

 

	
  

	
(a)

	
secure the ultimate balance from time to time owing to the Lender by any Principal and shall be a continuing security for the benefit of the Lender, notwithstanding any intermediate discharge or payment in whole or in part, settlement  of account or other matter whatsoever;

 

	
  

	
(b)

	
be in addition to any present or future Collateral Instrument, right or remedy held by or available to the Lender; and

 

	
  

	
(c)

	
not be in any way prejudiced or affected by the existence of any Collateral Instrument, rights or remedies or by the same becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the dealing with, exchanging, varying or failing to perfect or enforce any of the same or giving time for payment or indulgence or compounding with any other person liable.

 

  

6

  

	
2.7

	
Termination of Liability

 

	
  

	
(a)

	
No Guarantor shall have any right to determine its liability under this Guarantee (whether by notice to the Lender or by any other means) at any time during the Guaranteed Period.

 

	
2.8

	
New accounts

 

If this Guarantee ceases to be continuing for any reason whatsoever the Lender may open a new account in the name of a Guarantor and the liability of that Guarantor under this Guarantee shall not in any manner be reduced or affected by any subsequent transactions or receipts or payments into or out of any such account.   If it does not open such new account, it shall nevertheless be treated as if it had done so at the time when this Guarantee ceased to be a continuing security and, as from that time, all payments made by that Guarantor to the Lender or received by the Lender for the account of that Guarantor shall be credited or treated as having been credited to a new account and will not operate to reduce the Guaranteed Obligations of that Guarantor owing under this Guarantee at any time.

 

	
2.9

	
Liability unconditional

 

The liability of each Guarantor shall not be affected nor shall this Guarantee be discharged, reduced, prejudiced or affected by:

 

	
  

	
(a)

	
any Incapacity of or in relation to any Guarantor or any other person liable;

 

	
  

	
(b)

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

 

	
  

	
(c)

	
any variation or amendment of, or waiver or release granted under or in connection with any facility agreement or any other security or any guarantee or indemnity or other document; or

 

	
  

	
(d)

	
the taking, holding, failure to take or hold, varying, realisation, non-enforcement, non- perfection or release by the Lender or any other person of any other security or any guarantee or indemnity or other document; or

 

	
  

	
(e)

	
any change in the constitution of any Principal; or

 

	
  

	
(f)

	
any amalgamation, merger or reconstruction that may be effected by the Lender with any other person, including, but not limited to, any reconstruction by the Lender  involving the formation of a new company or other extent any with separate legal personality and the transfer of all or any of its assets to that company or other extent any with separate legal personality, or any sale or transfer of the whole or any part of the undertaking and assets of the Lender to any other person; or

 

  

7

  

 

	
  

	
(g)

	
the existence of any claim, set-off or other right which any Principal may have at any time against the Lender or any other person; or

 

	
  

	
(h)

	
the making or absence of any demand for payment or discharge of any Guaranteed Obligations of any Principal or any other person, whether by the Lender or any other person; or any arrangement or compromise entered into by the Lender with any Principal or any other person; or

 

	
  

	
(i)

	
any other thing done or omitted or neglected to be done by the Lender or any other person or any other dealing, fact, matter or thing which, but for this provision, might operate to discharge, prejudice or affect any of the liability of any Principal, or any Guarantor had it been a principal debtor instead of a guarantor or by anything done or omitted which but for this provision might operate to exonerate any Guarantor.

 

	
2.10

	
Collateral Instruments

 

The Lender shall not be obliged to make any claim or demand on any Principal or to resort to any Collateral Instrument or other means of payment now or hereafter held by or available to any of them before enforcing this Guarantee and no action taken or omitted by the Lender in connection with any such Collateral Instrument or other means of payment shall discharge, reduce, prejudice or affect the liability of any Guarantor under this Guarantee nor shall the Lender be obliged to apply any money or other property received or recovered in consequence of any enforcement or realisation of any such Collateral Instrument or other means of payment in reduction of the Guaranteed Obligations.

 

	
2.11

	
Immediate recourse

 

The Lender need not, before exercising any of the rights, title, benefit and interest conferred upon it by this Guarantee or by law:

 

	
  

	
(a)

	
take action or obtain judgement against any Principal or any other person in any court;

 

	
  

	
(b)

	
make or file any claim or proof in the liquidation of any Principal or any other person; or

 

	
  

	
(c)

	
enforce or seek to enforce the recovery of the moneys and liabilities hereby secured or enforce or seek to enforce any other security interest or guarantee.

 

	
2.12

	
Non-competition

 

	
  

	
(a)

	
Until all the Guaranteed Obligations have been unconditionally and irrevocably paid and discharged in full, a Guarantor shall not (other than with the prior consent of the Lender and pursuant to and in accordance with this Guarantee) exercise any rights it may have by reason of performance by it of its obligations under this Guarantee or by reason of any amount being payable or liability arising under this Guarantee:

 

  

8

  

	
  

	
(i)

	
to claim, rank, prove or vote as a creditor of any Principal or its estate; or

 

	
  

	
(ii)

	
to receive, claim or have the benefit of any payment, guarantee, distribution or security from or on account of any such party, or exercise any right of combination, counter-claim, "flawed-asset" arrangement or set-off as against such person.

 

	
  

	
(b)

	
Each Guarantor will hold on trust for, and forthwith pay or transfer to, the Lender in accordance with any facility agreement with the Lender to which the relevant Principal is a party, any payment or distribution or the benefit of any guarantee or security received or receivable by it contrary to the above.  If a Guarantor exercises any right of set-off, counterclaim or combination contrary to the above, it will forthwith pay an amount equal to the amount set-off, counterclaimed or combined to the Lender to be distributed in accordance with any facility agreement with the Lender to which the relevant Principal is a party.

 

	
2.13

	
Waiver of Guarantor's rights

 

	
  

	
(a)

	
Until all the Guaranteed Obligations have been paid, discharged or satisfied in full each Guarantor agrees that, without the prior written consent of the Lender, it shall not:

 

	
  

	
(i)

	
exercise its rights of subrogation, reimbursement and indemnity against any Principal or any other person liable;

 

	
  

	
(ii)

	
demand or accept repayment in whole or in part of any indebtedness now or hereafter due to it from any Principal or from any other person liable or demand or accept any Collateral Instrument in respect of the same or dispose of the same;

 

	
  

	
(iii)

	
take any step to enforce any right against any Principal or any other person liable in respect of any Guaranteed Obligations; or

 

	
  

	
(iv)

	
claim any set-off or counterclaim against any Principal or any other person liable or claim or prove in competition with the Lender in the liquidation of any Principal or any other person liable or have the benefit of, or share in, any payment from or composition with, any Principal or any other person liable or any other Collateral Instrument now or hereafter held by any of the Lender for any Guaranteed Obligations or for the obligations or liabilities of any other person liable.

 

Notwithstanding the preceding provisions of this clause 2.13(a), if so directed by the Lender, each Guarantor will prove for the whole or any part of its claim in the liquidation of any Principal or any other person liable on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Lender and applied in or towards discharge of the Guaranteed Obligations in accordance with the provisions of any facility agreement with the Lender to which the relevant Principal is a party.

 

  

9

  

	
2.14 

	
Suspense accounts

 

Any moneys received in connection with this Guarantee (whether before or after any Incapacity of a Principal or a Guarantor) may be placed to the credit of a suspense account with a view to preserving the rights of the Lender to prove for the whole of its claims against any Principal or any other person liable or may be applied in or towards satisfaction of such of the Guaranteed Obligations as the Lender may from time to time conclusively determine in its absolute discretion.

 

	
2.15

	
Settlements conditional

 

	
  

	
(a)

	
Any release, discharge or settlement between a Guarantor and the Lender shall be conditional upon no security, disposition or payment to the Lender by any Principal or any other person liable being void, set aside or ordered to be refunded pursuant to any requirement having the force of  law and if such condition shall not be fulfilled the Lender shall be entitled to enforce this Guarantee subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.

 

	
  

	
(b)

	
Where any such re-assignment, release, settlement or discharge is made in whole or in part on the faith of any payment, guarantee, security or other disposition, transaction or arrangement which is or is required to be repaid, restored or otherwise avoided, invalidated or reduced by virtue of any requirement having the force of law, any such re-assignment, release, settlement or discharge of, or other arrangement in connection with, any guarantee or other obligation of any Guarantor under this Guarantee shall ipso facto be treated as null and void and shall for all purposes be deemed not to have occurred, and the Lender shall be entitled to recover the value or amount of any such payment, guarantee, security or other disposition and the relevant Guaranteed Obligations shall continue as if the re-assignment, release, settlement or discharge had not occurred.

 

	
2.16

	
Guarantor to deliver up certain property

 

If, contrary to clause 2.12 or 2.13, any Guarantor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Lender and shall be delivered to the Lender on demand.

 

	
2.17

	
Retention of this Guarantee

 

The Lender shall be entitled to retain this Guarantee after as well as before payment or discharge of all the Guaranteed Obligations and/or the end of the Guaranteed Period for such period as the Lender may determine.

 

	
3

	
PAYMENTS AND TAXES

 

	
3.1

	
No set-off or counterclaim

 

All payments to be made by a Guarantor under this Guarantee shall be made in full, without any set-off or counterclaim whatsoever and without any Tax Deduction, unless a Tax Deduction is required by law.  Promptly upon a Guarantor becoming aware that it must make a Tax Deduction (or that there is a change in the rate or basis of a Tax Deduction) that Guarantor will notify the Lender accordingly. Similarly, the Lender will notify each Guarantor upon becoming so aware in respect of a payment to be made to it.

 

  

10

  

 

	
3.2

	
Gross up for Tax Deductions

 

If a Tax Deduction is required by law to be made by a Guarantor, the amount of the payment due from that Guarantor 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.  If a Guarantor is required to make a Tax Deduction, that Guarantor 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.

 

	
4

	
REPRESENTATIONS AND WARRANTIES

 

	
4.1

	
Giving of Representations

 

Each Guarantor gives the representations and warranties set out in this Clause 4 to the Lender.

 

	
4.2

	
Status

 

	
  

	
(a)

	
It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation.

 

	
  

	
(b)

	
It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted.

 

	
4.3

	
Binding obligations

 

The obligations expressed to be assumed by under this Guarantee are, subject to any general principles of law as at the date of this Guarantee limiting its obligations, legal, valid, binding and enforceable obligations.

 

	
4.4

	
Non-conflict with other obligations

 

The entry into and performance by it of, and the transactions contemplated by, this Guarantee does not and will not conflict with:

 

	
  

	
(a)

	
any law or regulation applicable to it;

 

	
  

	
(b)

	
its or any of its Subsidiaries' constitutional documents ; or

 

	
  

	
(c)

	
any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries' assets.

 

  

11

  

	
4.5

	
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, this Guarantee and the transactions contemplated by this Guarantee.

 

	
4.6

	
Validity and admissibility in evidence

 

All authorisations required or desirable:

 

	
  

	
(a)

	
to enable it lawfully to enter into, exercise its rights and comply with its obligations under this Guarantee; and

 

	
  

	
(b)

	
to make this Guarantee admissible in evidence in its jurisdiction of incorporation,

 

have been obtained or effected and are in full force and effect.

 

	
4.7

	
Governing law and enforcement

 

	
  

	
(a)

	
The choice of English law as the governing law of this Guarantee will be recognised and enforced in its jurisdiction of incorporation.

 

	
  

	
(b)

	
Any judgment obtained in England in relation to this Guarantee will be recognised and enforced in its jurisdiction of incorporation.

 

	
4.8

	
Deduction of Tax

 

It is not required to make any deduction for or on account of Tax from any payment it may make under this Guarantee.

 

	
4.9

	
No filing or stamp taxes

 

Under the law of its jurisdiction of incorporation it is not necessary that this Guarantee 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 this Guarantee or the transactions contemplated by this Guarantee.

 

	
4.10

	
Pari passu ranking

 

Its payment obligations under this Guarantee rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

	
4.11

	
No proceedings pending or threatened

 

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries.

 

  

12

  

	
4.12 

	
Times for making representations and warranties

 

Unless expressly provided to the contrary:

 

	
  

	
(a)

	
each of the representations and warranties set out in this Guarantee are made by each Guarantor on the date of this Guarantee;

 

	
  

	
(b)

	
each representation and warranty under this Guarantee is deemed to be repeated by each Guarantor on each date during the Guaranteed Period; and

 

	
  

	
(c)

	
when a representation and warranty is deemed to be repeated, it is deemed to be made by reference to the circumstances existing at the time of repetition.

 

	
5

	
COVENANTS

 

	
5.1

	
Giving of Covenants

 

Each Guarantor gives and makes the covenants, undertakings and agreements to the Lender set out in this Clause 5.

 

	
5.2

	
Authorisations

 

Each Guarantor shall promptly:

 

	
  

	
(a)

	
obtain, comply with and do all that is necessary to maintain in full force and effect; and

 

	
  

	
(b)

	
supply certified copies to the Lender of,

 

any authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under this Guarantee and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of this Guarantee.

 

	
5.3

	
Compliance with laws

 

Each Guarantor shall comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under this Guarantee.

 

	
5.4

	
Notice of default

 

Each Guarantor shall immediately notify the Lender of any breach of the representations and warranties set out in Clause 4 and the steps, if any, being taken to remedy it promptly upon becoming aware of its occurrence or existence unless a Guarantor is aware that a notification has already been provided by another Guarantor.

 

	
5.5

	
Timing of covenants

 

The covenants, undertakings and agreements given and made by each Guarantor in this Guarantee are given to the Lender and will remain in force throughout the Guaranteed Period.

 

  

13

  

	
6 

	
BENEFIT OF THIS GUARANTEE

 

	
6.1

	
Benefit and burden

 

This Guarantee shall be binding upon each Guarantor and its successors in title and shall inure for the benefit of the Lender for the benefit of itself and each of its successors in title, assignees and transferees.

 

	
6.2

	
Changes in constitution or reorganisations of the Lender

 

For the avoidance of doubt and without prejudice to the provisions of clause 6.1, this Guarantee shall remain binding on each Guarantor not withstanding any change in the constitution of the Lender or absorption in, or amalgamation with, or the acquisition of all or part of its undertaking or assets by, any other person, or any reconstruction or reorganisation of any kind, to the intent that this Guarantee shall remain valid and effective in all respects in favour of any assignee, transferee or other successor in title of the Lender in the same manner as if such assignee, transferee or other successor in title had been named in this Guarantee instead of, or in addition to, the Lender.

 

	
7

	
COSTS AND EXPENSES

 

Each Guarantor shall indemnify the Lender against, and shall pay to the Lender within three Business Days of demand an amount equal to, all Expenses reasonably and properly expended, paid, incurred or debited on account by the Lender in connection with:

 

	
7.1

	
the negotiation, preparation, printing, execution, stamping, filing, registration and perfection of this Guarantee and any other document referred to in this Guarantee;

 

	
7.2

	
any waiver or consent in relation to this Guarantee or any other document referred to in this Guarantee;

 

	
7.3

	
any variation, amendment, extension or modification of, or supplemental to, this Guarantee or any other document referred to in this Guarantee; and

 

	
7.4

	
the enforcement, preservation, protection or realisation, or attempted enforcement , protection or realisation of any of the Lender's rights and remedies under or in connection with this Guarantee or of any Guaranteed Obligation or any other document referred to in this Guarantee or in connection with any Proceedings in relation to any of the foregoing.

 

	
8

	
STAMP TAXES

 

The Guarantor shall pay promptly, and in any event before any penalty becomes payable, all stamp, registration, documentary and similar Taxes, if any, payable in connection with the entry into, performance, enforcement or admissibility in evidence of this Guarantee and shall indemnify the Lender against any cost, loss or liability with respect to, or resulting from any delay in paying or omission to pay, any such Tax.

 

  

14

  

	
9 

	
CERTIFICATES AND DETERMINATIONS

 

	
9.1

	
Accounts

 

In any Proceedings arising out of or in connection with this  Guarantee, the entries made in the accounts maintained by the Lender are prima facie evidence of the matters to which they relate.

 

	
9.2

	
Certificates and Determinations

 

Any certification or determination by the Lender of a rate or amount under this Guarantee is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

 

	
10

	
SET-OFF

 

	
10.1

	
The Lender may (but shall not be obliged to) set off against any obligation of a Guarantor due and payable by it to or for the account of the Lender under this Guarantee and not paid on the due date or, where applicable, within any grace period for payment, any moneys held by the Lender for the account of that Guarantor at any office of the Lender anywhere and in any currency, whether or not matured.  If any such obligation is un-liquidated or unascertained, the Lender may set off in an amount estimated by it in good faith to be amount of that obligation.  The Lender may effect such currency exchanges at such rates as it considers are appropriate to implement the set-off and any usual charges and all applicable Taxes in relation to such currency exchanges shall be paid by that Guarantor within 3 Business Days of demand.  If the Lender has set off, it shall give prompt notice of that fact to that Guarantor;

 

	
10.2

	
This clause 10 is intended to give rise to rights in contract only and is not intended to constitute or create or give rise to a security interest of any kind over any asset of a Guarantor.  If and to the extent that any right conferred by this clause 10 would, notwithstanding the foregoing sentence constitute, create or give rise to any security interest such right shall be of no effect.

 

	
11

	
ASSIGNMENT

 

	
11.1

	
Assignment by the Lender

 

The Lender may, at any time, without the consent of any Guarantor, assign or transfer any of its rights and obligations under this Guarantee.

 

	
11.2

	
Assignment by Guarantor

 

The rights, interests and obligations of each Guarantor under this Guarantee are personal to it. Accordingly, they are not capable of being assigned, transferred or delegated in any manner. Each Guarantor undertakes that it shall not at any time assign or transfer, or attempt to assign or transfer, any of its rights, interests or obligations under or in respect of this Guarantee to any person.

 

  

15

  

	
12 

	
AMENDMENTS

 

This Guarantee may only be amended, modified or waived in any respect whatsoever, with the prior consent of the Lender.

 

	
13

	
NOTICES

 

	
13.1

	
Communications in writing

 

Any communication to be made under or in connection with this Guarantee shall be made in writing and, unless otherwise specifically agreed between the sending and receiving Parties, may be made by fax or letter.

 

	
13.2

	
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 this Guarantee is that identified with its name below or any substitute address, fax number or department or officer as the party may notify to the other parties by not less than five Business Days' notice.

 

	
13.3

	
Delivery

 

	
  

	
(a)

	
Any communication or document made or delivered by one person to another under or in connection with this Guarantee will only be effective:

 

	
  

	
(i)

	
if by way of fax, when received in legible form; or

 

	
  

	
(ii)

	
if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address.

 

	
  

	
(b)

	
Any communication or document to be made or delivered to the Lender will be effective only when actually received by the Lender and then only if it is expressly marked for the attention of the department or officer identified with the Lender's signature below (or any substitute department or officer as the Lender shall specify for this purpose).

 

	
13.4

	
Approvals etc. to be in writing

 

Except if expressly provided to the contrary, any designation, approval, consent, direction, notification, waiver or matter required to be given or made to or specified by the Lender under or pursuant to this Guarantee must be given or made in writing for it to be effective.

 

	
14

	
REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in exercising, on the part of the Lender any right or remedy under this Guarantee or provided by law shall operate as a waiver, nor shall any single or partial exercise of any such 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 Guarantee are cumulative and not exclusive of any right or remedies provided by law.

 

  

16

  

 

	
15

	
PARTIAL INVALIDITY

 

If, at any time, any provision of this Guarantee 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.

 

	
16

	
EXECUTION OF GUARANTEE AS A DEED

 

Each of the parties to this Guarantee intends it to be a deed and confirms that it is executed and delivered as a deed, in each case notwithstanding the fact that any one or more of the parties may only execute this Guarantee under hand.

 

	
17

	
COUNTERPARTS

 

This Guarantee may be executed in any number of counterparts (each of which shall constitute an original of this Guarantee), and this has the same effect as if the signatures on the counterparts where on a single copy of the Guarantee.

 

	
18

	
PERPETUITY PERIOD

 

The perpetuity period of the any trust created under this Guarantee shall be 125 years.

 

	
19

	
GOVERNING LAW

 

This Guarantee and any dispute or claim arising and if or in connection with it or its subject matter or formation (including any non-contractual disputes or claims) shall be governed by English law.

 

	
20

	
ENFORCEMENT

 

	
20.1

	
Jurisdiction

 

	
  

	
(a)

	
The courts of England are to have exclusive jurisdiction to settle any dispute arising out of or in connection with this Guarantee or its subject matter or formation (including non-contractual disputes or claims or disputes regarding the existence, validity, determination or expiration of this Guarantee or the rights expressed to be conferred by it (a "Dispute").

 

	
  

	
(b)

	
The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

 

	
  

	
(c)

	
This clause 20.1 is for the benefit of the Lender only. As a result the Lender shall not  be prevented from taking Proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Lender may take concurrent Proceedings in any number of jurisdictions.

 

  

17

  

Schedule 1

 

Guarantors

 

	
Company name

	
Company number

	
Registered office

	
Femcare Group Limited

	
05147637

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

	
Femcare (Holdings) Limited

	
03788956

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

	
Femcare Distribution Limited

	
04329399

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

	
Femcare-Nikomed Limited

	
02301779

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

 

Schedule 2

 

Principals

 

 

	
Company name

	
Company number

	
Registered office

	
Femcare Group Limited

	
05147637

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

	
Femcare (Holdings) Limited

	
03788956

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

	
Femcare Distribution Limited

	
04329399

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

	
Femcare-Nikomed Limited

	
02301779

	
Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ

  

18

  

THE GUARANTORS

	
SIGNED as a DEED by

	
)

	  
	
FEMCARE GROUP LIMITED

	
)

	  
	  	
)

	  
	
acting by a director

	
)

	
/s/ Paul O. Richins

	  	  	
Director

in the presence of:

Witness Signature        /s/ Kevin L. Cornwell........................

 

Witness Full Name        Kevin L. Cornwell.............................

 

Witness Address          7043 South 300 West........................

 

 Midvale, UT 84047............................  

 

......................................................................

                  

...................................................................... 

Witness Occupation .................................................................

 

 

	
SIGNED as a DEED by

	
)

	  	  
	
FEMCARE (HOLDINGS) LIMITED

	
)

	  	  
	  	
)

	  	  
	
acting by a director

	
)

	
/s/ Paul O. Richins

	  
	  	  	
Director

	  

in the presence of:

Witness Signature        /s/ Kevin L. Cornwell........................

 

Witness Full Name        ............................................................

 

Witness Address          ............................................................

 

                                         .............................................................

                                         .............................................................

 

                                         .............................................................

 

                                         .............................................................

 

Witness Occupation.................................................................

 

 

  

19

  

 

	
SIGNED as a DEED by

	
)

	  	  
	
FEMCARE DISTRIBUTION LIMITED

	
)

	  	  
	  	
)

	  	  
	
acting by a director

	
)

	
/s/ Paul O. Richins

	  
	  	  	
Director

	  

 

 

in the presence of:

 

Witness Signature /s/ Kevin L. Cornwell...............................

 

Witness Full Name ...................................................................

 

Witness Address ......................................................................

 

                                 .....................................................................

 

Witness Occupation.................................................................

 

 

 

	
SIGNED as a DEED by

	
)

	  
	
FEMCARE-NIKOMED LIMITED

	
)

	  
	 	
)

	  
	
acting by a director

	
)

	
/s/ Paul O. Richins

	  	  	
Director

in the presence of:

Witness Signature        /s/ Kevin L. Cornwell........................

 

Witness Full Name....................................................................

 

Witness Address.......................................................................

 

                              ........................................................................

 

Witness Occupation.................................................................

 

 

 

THE LENDER

 

 

	
SIGNED for and on behalf of

	
)

	
JPMORGAN CHASE BANK, N.A.

	
)

	  	  
	  	
   /s/ Lynn Goodale                                  

	  	
Authorised Signatory

 

20utmd8k20110323-14.htm

Exhibit 10.14

 

	
DATED

	  	
March 18 2011

	
CHARGE OVER SECURITIES

 

	  
	
FEMCARE DISTRIBUTION LIMITED (the Chargor)

 

JPMORGAN CHASE BANK, N.A. as Lender

 

	
(1)

 

(2)

	  
	  

	
Ref: KH06/RL01

Burges Salmon LLP

www.burges-salmon.com

Tel: +44 (0)117 902 7253

Fax: +44 (0)117 902 4400

	  

 

  

  

  

CONTENTS

 

	
Clause

	
Heading

	
Page

	
1

	
DEFINITIONS AND INTERPRETATION

	
1

	
2

	
COVENANT TO PAY

	
4

	
3

	
CHARGE

	
4

	
4

	
REPRESENTATIONS AND WARRANTIES

	
4

	
5

	
UNDERTAKINGS

	
5

	
6

	
FURTHER ASSURANCE

	
7

	
7

	
DEPOSIT OF DOCUMENTS

	
7

	
8

	
RIGHTS

	
7

	
9

	
CERTAIN POWERS OF THE LENDER

	
8

	
10

	
APPOINTMENT AND POWERS OF RECEIVER

	
9

	
11

	
APPLICATION OF PROCEEDS AND PROTECTION OF PURCHASERS

	
12

	
12

	
INDEMNITIES; COSTS AND EXPENSES

	
13

	
13

	
POWER OF ATTORNEY

	
14

	
14

	
CONTINUING SECURITY AND OTHER MATTERS

	
15

	
15

	
RELEASE

	
16

	
16

	
LIABILITY OF THE CHARGOR

	
17

	
17

	
SET OFF

	
18

	
18

	
MISCELLANEOUS

	
19

	
19

	
NOTICES

	
21

	
20

	
TRANSFERS BY THE LENDER OR THE CHARGOR

	
22

	
21

	
COUNTERPARTS

	
23

	
22

	
THIRD PARTIES

	
23

	
23

	
LAW

	
23

	
Schedule 1

	
24

	
Part A - Form of written resolution to amend articles of association

	
24

	
Part B - Filing print of written resolutions to file at Companies House

	
27

 

  

  

  

	
THIS DEED is dated

	
18 March 2011 and made

 

BETWEEN:

 

	
(1)

	
FEMCARE DISTRIBUTION LIMITED a company incorporated in England and Wales (Registered No. 04329399) whose registered office is at Stuart Court, Spursholt Place, Salisbury Road, Romsey, Hampshire SO51 6DJ (the "Chargor"); and

 

	
(2)

	
JPMORGAN CHASE BANK, N.A. (the "Lender").

 

IT IS AGREED as follows:

 

	
1

	
DEFINITIONS AND INTERPRETATION

 

	
1.1

	
Definitions

 

In this Deed, unless the context otherwise requires:

 

"Business Day" means a day (other than Saturday or Sunday) on which banks are open to conduct general business in London;

 

"Borrower" has the meaning given to that expression in the Facility Agreement;

 

"Charged Shares" means each and all of the shares which form part of the Securities;

 

"Collateral Instruments" means negotiable and non-negotiable instruments, guarantees, indemnities and other assurances against financial loss and any other documents or instruments which contain or evidence an obligation (with or without security) to pay, discharge or be responsible directly or indirectly for, any liabilities of any person and includes any document or instrument creating or evidencing Security;

 

"Event of Default" has the meaning given to that expression in the Facility Agreement;

 

"Facility Agreement" means the £8,000,000 facility agreement dated on or about the date of this Deed between (among others) the Borrower and the Lender;

 

"Finance Document" has the meaning given to that expression in the Facility Agreement;

 

"Indemnified Party" has the meaning set out in clause 12.3 (Indemnity from Securities);

 

“Issuer” means Femcare- Nikomed Limited (company number: 02301779);

 

"Party" means a party to this Deed;

 

  

1

  

"Receiver" means any one or more receivers and/or managers or administrative receivers appointed by the Lender pursuant to this Deed in respect of the Chargor or over all or any of the Securities;

 

"Secured Obligations" means all present and future obligations and liabilities of the Chargor (whether actual or contingent and whether owed jointly or severally or in any other capacity whatever) which are, or are expressed to be, or may become, due, owing or payable to the Lender under or in connection with any of the Finance Documents, together with all costs, charges, losses, liabilities, expenses and other sums and any taxes thereon incurred by the Lender which are, or are expressed to be, or may become due, owing or payable by the Chargor under or in connection with any Finance Document;

 

"Securities" means all of the Chargor’s present and future interest in:

 

	
  

	
(a)

	
all of the securities issued share capital of the Issuer;

 

	
  

	
(b)

	
any further securities substituted or added from time to time pursuant to the provisions of this Deed;

 

	
  

	
(c)

	
any additional shares in the issued share capital of the Issuer in the future legally or beneficially owned by the Chargor;

 

	
  

	
(d)

	
any Securities Rights relating to the Charged Shares;

 

	
  

	
(e)

	
any proceeds, money, dividends, interest and other distributions, return of capital, marketable securities, accretions rights, benefits, or other property whatsoever now or in the future declared, payable or otherwise distributable in respect of the Charged Shares or the Securities Rights, whether by reason of a payment of a dividend, the making of a distribution of any kind, a rights issue, allotment, offer, conversion, exchange, substitution, consolidation, sub-division, redemption, pre-emption, sale, option, bonus, capitalisation, warrant, cancellation, re-classification, reconstruction, amalgamation, winding up or otherwise, in each case relating to the Charged Shares;

 

"Securities Rights" means any present or future right of the Chargor arising from the Charged Shares to acquire (by purchase or otherwise) any property from the Issuer including any additional marketable shares in the Issuer, whether shares (bonus or otherwise) warrants, options, notes, convertible securities or otherwise and however that right arises;

 

"Security" means any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, security interest, title retention or other encumbrance of any kind securing, or any right conferring a priority of payment in respect of, any obligation of any person.

 

  

2

  

 

	
1.2

	
Definitions in Finance Documents

 

Unless a contrary indication appears, a term defined in any Finance Document or in any notice given under or in connection with any Finance Document  has the same meaning when used in this Deed.

 

	
1.3

	
Successors and assigns

 

A reference to any Party shall be construed as including its subsequent successors in title, permitted transferees and any permitted assigns, in each case in accordance with their respective interests.

 

	
1.4

	
Headings

 

Clause headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Deed.

 

	
1.5

	
Construction of certain terms

 

In this Deed, unless the context otherwise requires:

 

	
  

	
(a)

	
references to clauses and schedules are to be construed as references to the clauses of and schedules to this Deed unless expressly stated otherwise;

 

	
  

	
(b)

	
reference to (or to any specified provision of) this Deed, any Finance Document or any other document shall be construed as references to this Deed, any Finance Document that provision or that document as in force for the time being and as amended, varied, supplemented or restated in accordance with the terms thereof or, as the case may be, with the agreement of the relevant parties;

 

	
  

	
(c)

	
words importing the plural shall include the singular and vice versa;

 

	
  

	
(d)

	
references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons, trust, partnership and limited liability partnership or any state or any agency thereof;

 

	
  

	
(e)

	
an Event of Default is "continuing" if it has not been expressly waived in writing by the Lender; and

 

	
  

	
(f)

	
references to statutory provisions shall be construed as references to those provisions as replaced, amended or re-enacted from time to time and all regulations made thereunder from time to time.

 

  

3

  

	
1.6

	
Effect as a deed

 

This Deed is intended to take effect as a deed notwithstanding that the Lender may have executed it under hand only.

 

	
2

	
COVENANT TO PAY

 

The Chargor will pay or otherwise discharge all Secured Obligations from time to time, at the times at which, in the manner in which, and in the currencies in which they are expressed to be due and payable or due for discharge.

 

	
3

	
CHARGE

 

The Chargor with full title guarantee as a fixed charge hereby charges to the Lender, the Securities and their proceeds of sale as continuing security for the payment and discharge of the Secured Obligations.

 

	
4

	
REPRESENTATIONS AND WARRANTIES

 

	
4.1

	
Representations and warranties

 

The Chargor represents and warrants to the Lender, on the date hereof and on each date on which any Secured Obligations are outstanding:

 

	
  

	
(a)

	
Approvals

 

	
  

	
(i)

	
That all necessary approvals and consents (whether governmental or otherwise) in relation to the making, performance and validity of this Deed and the transactions contemplated by this Deed have been obtained and remain in full force and effect;

 

	
  

	
(ii)

	
That the security created by this Deed does not contravene or result in  any of the provisions of its memorandum and articles of association; and

 

	
  

	
(iii)

	
That this Deed does not and will not conflict with or result in any breach or constitute a default under any agreement, instrument or obligation to which the Chargor is a party or by which it is bound.

 

	
  

	
(b)

	
Security valid

 

This Deed and each other Finance Document which purports to create any Security and all Security expressed to be granted or created pursuant to this Deed or any other Finance Document creates the Security it purports to create and is not liable to be set aside or avoided on its liquidation, administration or otherwise and such Security has the priority and ranking they are expressed to have.

 

  

4

  

 

	
  

	
(c)

	
Title to assets

 

That it is the sole legal and beneficial owner of all the Securities.

 

	
  

	
(d)

	
Existing security and Disposal

 

	
  

	
(i)

	
That no Security exists on or over the Securities and it has not entered into any agreement to grant any Security over the Securities; and

 

	
  

	
(ii)

	
That it has not sold, transferred, lend, assigned, parted with its interest in, disposed of, granted any option in respect of or otherwise dealt with any of its rights, title and interest in and to the Securities, or agreed to do any of the foregoing.

 

	
  

	
(e)

	
Securities

 

That the Securities are duly authorised, validly issued and fully paid up and are free from any restrictions on transfer or rights of pre-emption and no liabilities are outstanding in respect of the Securities.

 

	
5

	
UNDERTAKINGS

 

	
5.1

	
Obligations

 

The Chargor hereby undertakes with the Lender that during the continuance of this security, the Chargor will:

 

	
  

	
(a)

	
Negative covenants

 

Not, other than as expressly permitted under the Facility Agreement:

 

	
  

	
(i)

	
create or permit to subsist any Security over any of the Securities;

 

	
  

	
(ii)

	
enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, transfer, assign, lease, licence, grant an option over or otherwise dispose of any interest in any of the Securities;

 

	
  

	
(iii)

	
permit any person other than the Chargor or the Lender (or the nominees or agent of the Lender to be registered as the holder of the Securities or any part thereof; or

 

  

5

  

	
  

	
(iv)

	
do or cause or permit to be done anything which may in any way depreciate, jeopardise or otherwise prejudice the interest of the Lender in, or the value to the Lender of the Securities.

 

	
  

	
(b)

	
Articles of Association

 

	
  

	
(i)

	
Procure the amendment of the articles of association of each issuer of shares by way of written resolution in the form set out in Part A of Schedule 1; and

 

	
  

	
(ii)

	
Not, with the prior written consent of the Lender amend or agree to the amendment of, the memorandum or articles of association of any issuer in relation to the rights or liabilities attaching to any of the Securities.

 

	
  

	
(c)

	
Liabilities

 

	
  

	
(i)

	
Ensure that there are no monies or liabilities outstanding in respect of any of the Securities; and

 

	
  

	
(ii)

	
Punctually pay all calls, subscription monies and other monies payable on or in respect of any of the Securities and indemnify and keep indemnified the Lender and its nominees against any cost, liabilities or expenses which it or they may suffer or incur as are result of any failure by the Chargor to pay the same.

 

	
  

	
(d)

	
Information

 

	
  

	
(i)

	
Deliver to the Lender a copy of every circular, notice, report, set of accounts or other document received by the Chargor in respect of or in connection with any of the Securities promptly on receipt by the Chargor of such document; and

 

	
  

	
(ii)

	
Promptly deliver to the Lender all such information concerning the Securities as the Lender may reasonably request from time to time.

 

	
5.2

	
No limitation

 

None of the undertakings in this clause 5 shall be construed as limiting any powers exercisable by any Receiver appointed by the Lender under this Deed.

 

	
5.3

	
Power to remedy

 

If the Chargor at any time defaults in complying with any of its obligations contained in this Deed, the Lender shall, without prejudice to any other rights arising as a consequence of such default, be entitled (but not bound) to make good such default and the Chargor hereby irrevocably authorises the Lender and its employees and agents by way of security to do all such things necessary or desirable in connection therewith.  Any monies so expended by the Lender shall be repayable by the Chargor to the Lender on demand together with interest at the rate notified by the Lender to the Chargor from the date of payment by the Lender until such repayment, both before and after judgment.  No exercise by the Lender of its powers under this clause 5.3 shall make it liable to account as a mortgagee in possession.

 

  

6

  

 

	
6

	
FURTHER ASSURANCE

 

	
6.1

	
Further assurance

 

The Chargor shall if and when required by the Lender at its own cost, promptly execute and deliver such further Security and assurances in favour of the Lender and do all such acts and things (including giving any notices and taking such steps) as the Lender shall from time to time require (with any documents being in such form as the Lender shall require) over or in relation to all or any of the Securities to secure the Secured Obligations or to perfect or protect the security intended to be created by this Deed over the Securities or any part thereof or to facilitate the realisation of the same.

 

	
7

	
DEPOSIT OF DOCUMENTS

 

The Chargor shall, on the date of this Deed (or on the date of issue where any Securities are issued subsequently) deliver to the Lender (or its nominee):

 

	
7.1

	
All share certificates, warrants or other documents of title and other documentary evidence of ownership in relation to the Securities;

 

	
7.2

	
Duly executed undated blank stock transfer forms; and

 

	
7.3

	
Forms of waiver of any pre-emption rights and any other documents, consents and monies necessary to enable such transfers to be registered by  the Lender.

 

	
8

	
RIGHTS

 

	
8.1

	
Rights prior to an Event of Default

 

	
  

	
(a)

	
Prior to an Event of Default that is continuing, the Chargor may continue to exercise all voting and other rights (including the right to collect dividends, interest, principal or other payments of money) relating to the Securities provided that such rights are not exercised in a way which (and the Chargor shall not permit anything which):

 

	
  

	
(i)

	
Jeopardises the security constituted by the Finance Documents;

 

	
  

	
(ii)

	
Varies the rights attaching to the Securities; or

 

  

7

  

	
  

	
(iii)

	
Relates to a participation in a rights issue or to receiving dividends other than in cash

 

	
  

	
(iv)

	
or concerns a merger, consolidation, allotment of shares, transfer of ownership (legal or beneficial), insolvency or matters which would otherwise be prohibited by the Finance Documents.

 

	
8.2

	
Rights after an Event of Default

 

	
  

	
(a)

	
Following an Event of Default that is continuing, the Lender may (without notice to or consent from the Chargor and in the Chargor's name or otherwise) exercise any rights (including the right to collect dividends, interest, principal or other payments of money) in respect of the Securities and may do anything necessary to complete any transfer form in favour of itself or otherwise.

 

	
  

	
(b)

	
The Lender shall have no duty to ensure that any dividends, interest or other money and assets or rights receivable in respect of the Securities are duly and punctually paid, received, collected or exercised when they become due and payable or exercisable, or to ensure the taking up of any (or any offer of any) stocks, shares, rights, money or other property paid, distributed, accruing or offered at any time by way of redemption, bonus, rights, reference to or otherwise in respect of the Securities.

 

	
9

	
CERTAIN POWERS OF THE LENDER

 

	
9.1

	
Subsequent Security

 

If the Lender receives or has notice (actual or constructive) of any subsequent Security affecting the Securities or any part of it or if the continuing nature of this Deed is determined for any reason, the Lender may open a new account for the Chargor.  If it does not do so then, unless the Lender gives express written notice to the contrary to the Chargor for the purposes of this Deed, the Lender shall nevertheless be treated as if it had opened a new account at the time when it received or had such notice and as from that time all payments made by or on behalf of the Chargor to the Lender  shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount due from the Chargor to the Lender  at the time when it received such notice.

 

	
9.2

	
Settlement of accounts

 

Any sale or other disposition by the Lender or by a Receiver may be made either subject to or discharged from any prior charge or upon such terms as to indemnity as the Lender or such Receiver may think fit.  The Lender or the Receiver may settle and pay the accounts of any person in whom any prior charge may from time to time be vested and any accounts so settled and paid shall as between the Lender, the Receiver and the Chargor be deemed to be properly settled and paid and shall be binding on the Chargor accordingly.  The money so expended by the Lender or the Receiver shall be repayable by the Chargor to the Lender or the Receiver on demand, shall constitute part of the Secured Obligations and shall bear interest at the rate notified by the Lender to the Chargor from the date of payment by the Lender or the Receiver.

 

  

8

  

 

	
9.3

	
Suspense accounts

 

The Lender (or any Receiver) may pay the proceeds of any recoveries effected by it or him into an interest-bearing suspense account and retain it for so long as it (or he) may determine.  The Lender may (subject to the payment of any claims having priority to this security) withdraw amounts standing to the credit of such suspense account for application as follows:

 

	
  

	
(a)

	
paying all costs, charges and expenses incurred and payments made by the Lender (or the Receiver) in the course of such enforcement;

 

	
  

	
(b)

	
paying remuneration to the Receiver as and when the same becomes due and payable; and

 

	
  

	
(c)

	
paying amounts due and payable in respect of the Secured Obligations.

 

	
9.4

	
Financial Collateral

 

To the extent that the Securities constitute "financial collateral" and this Deed and the obligations of the Chargor hereunder constitute a "security financial collateral arrangement" (in each case for the purpose of, and as defined in, the Financial Collateral Arrangements (No.2) Regulations 2003 (SI 2003 No. 3226)), the Lender shall have the right, to appropriate all or any part of such financial collateral in or towards satisfaction of the Secured Obligations.  For this purpose, the value of such financial collateral so appropriated shall be such amount as the Lender so determines having taken into account advice obtained by it from an independent investment or accountancy firm of national standing selected by it.

 

	
10

	
APPOINTMENT AND POWERS OF RECEIVER

 

	
10.1

	
Appointment

 

At any time on or after an Event of Default that is continuing, or, at the Lender's discretion, if requested by the Chargor, the Lender may by instrument in writing executed as a deed or under the hand of any director or other duly authorised officer appoint a Receiver of the Securities or any part thereof.  Where more than one Receiver is appointed, each joint Receiver shall have power to act severally, independently of any other joint Receivers, except to the extent that the Lender may specify to the contrary in the appointment.  The Lender may (subject, where relevant, to section 45 Insolvency Act 1986) remove any Receiver so appointed and appoint another in his place.

 

  

9

  

 

	
10.2

	
Receiver as agent

 

A Receiver shall be the agent of the Chargor and the Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

	
10.3

	
Powers of Receiver

 

A Receiver shall have all the powers conferred from time to time on receivers and administrative receivers by statute and power on behalf, and at the expense, of the Chargor (notwithstanding liquidation of the Chargor) to do or omit to do anything which the Chargor could do or omit to do in relation to the Securities or any part thereof.  In particular (but without limitation), a Receiver shall have power to do all or any of the following acts and things:

 

	
  

	
(a)

	
Take possession

 

Take possession of, collect and get in all or any of the Securities in such manner as he may think fit, and in particular to take any steps necessary to vest all or any of the Securities in the name of the Lender (including completing any transfers of any Charged Securities) and to receive and retain any dividends, interest, principal or other payments of money;

 

	
  

	
(b)

	
Dispose of assets

 

Without the restrictions imposed by section 103 Law of Property Act 1925 or the need to observe any of the provisions of sections 99 and 100 of such Act, sell, exchange, convert into money or otherwise dispose of or realise the Securities (whether by pubic offer or private contract) to any person, including a company formed or acquired for the purpose, and for such consideration (whether comprising cash, debentures or other obligations, Charged Securities, or other valuable consideration of any kind) and on such terms (whether payable or deliverable in a lump sum or by instalments) as it may think  fit, and for this purpose to complete any transfer of the Securities;

 

	 	
(c) 

	
Voting Rights

 

To exercise all voting and other rights attaching to the Securities and to pay all calls and other payments which may become due in respect of any Securities;

  

10

  

 

	
  

	
(d)

	
Compromises and contracts

 

Make any arrangement or compromise or enter into or cancel any contracts which he shall think expedient;

 

	
  

	
(e)

	
Legal proceedings

 

Institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Securities or any part thereof or submit to arbitration as he may think fit;

 

	
  

	
(f)

	
Execute documents

 

Sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created by or pursuant to this Deed and to use the name of the Chargor for all the purposes aforesaid;

 

	
  

	
(g)

	
Approvals

 

Apply for and obtain any approval, permission, consent and license, enter into and perform contracts and arrangements, purchase materials and incur any type of obligation;

 

	
  

	
(h)

	
Insolvency Act powers

 

Do all the acts and things described in schedule 1 to the Insolvency Act 1986 as if the words "he" and "him" referred to the Receiver and "Chargor" referred to the Chargor;

 

	
  

	
(i)

	
Notices

 

To take all such steps and give all such notices and instructions in relation to the Securities as the Receiver considers appropriate for any of the above purposes;

 

	
  

	
(j)

	
Other powers

 

Do all such acts and things as may from time to time be considered by the Receiver to be incidental or conducive to any of the matters or powers aforesaid or otherwise incidental or conducive to the realisation of the Lender 's security or the exercise of his functions as receiver; and

 

	 	
(k) 

	
Lender powers

 

Do anything the Lender has power to do under this Deed.

  

11

  

 

	
10.4

	
Remuneration

 

The Lender may from time to time determine the remuneration of any Receiver and in default of such determination, a Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.  The maximum rate set out in section 109(6) Law of Property Act 1925 shall not apply and that section shall be varied accordingly.

 

	
10.5

	
No liability

 

Neither the Lender nor any Receiver shall be liable for any involuntary losses that may occur in exercise of the rights, liberties and powers contained in this Deed or be liable to account as mortgagee in possession save in respect of fraud, negligence and/or wilful deceit.

 

	
11

	
APPLICATION OF PROCEEDS AND PROTECTION OF PURCHASERS

 

	
11.1

	
Application of proceeds

 

All monies received by the Lender or by any Receiver shall be applied, allocated or appropriated (unless otherwise determined by the Lender or such Receiver) in the following order of priority:

 

	
  

	
(a)

	
in the payment of all costs, charges and expenses of and incidental to the Receiver's appointment and the payment of his remuneration;

 

	
  

	
(b)

	
in the payment and discharge of any liabilities incurred by the Receiver on the Chargor's behalf in the exercise of any of the powers of the Receiver;

 

	
  

	
(c)

	
in providing for the matters (other than the remuneration of the Receiver) specified in the first three paragraphs of section 109(8) of the Law of Property Act 1925;

 

	
  

	
(d)

	
in or towards payment of any debts or claims which are by statute payable in preference to the Secured Obligations but only to the extent that those debts or claims have that preference;

 

	
  

	
(e)

	
in or towards satisfaction of the Secured Obligations; and

 

	
  

	
(f)

	
any surplus shall be paid to the Chargor or any other person who may be entitled to it.

  

12

  

 

	
11.2

	
Protection of purchasers

 

	
  

	
(a)

	
Any person (including, without limitation, any purchaser, mortgagor or mortgagee) (in this clause a "purchaser") dealing with the Lender may assume without inquiry that:

 

	
  

	
(i)

	
some part of the Secured Obligations has become due;

 

	
  

	
(ii)

	
a demand for such Secured Obligations has been duly made; and

 

	
  

	
(iii)

	
such Secured Obligations have become due within the meaning of section 101 of the Law of Property Act 1925.

 

	
  

	
(b)

	
No purchaser dealing with the Receiver or the Lender is to be concerned to enquire whether any power exercised or purported to be exercised by the Receiver or the Lender has become exercisable, or as to the propriety or regularity of any sale by, or other dealing with, the Receiver or the Lender.  Any such sale or dealing is deemed to be within the powers conferred by this Deed and to be valid and effective accordingly.  All the protection to purchasers contained in section 104 and section 107 of the Law of Property Act 1925 and section 42(3) of the Insolvency Act 1986 apply to any purchaser.

 

	
12

	
INDEMNITIES; COSTS AND EXPENSES

 

	
12.1

	
Enforcement costs

 

The Chargor hereby undertakes with the Lender to pay on demand all costs, charges and expenses incurred by the Lender, or by any Receiver in or about the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Deed or any of the Securities on a full indemnity basis, together with interest at the rate notified by the Lender to the Chargor from the date on which such costs, charges or expenses are so incurred until the date of payment by the Chargor (both before and after judgment).

 

	
12.2

	
No liability as mortgagee in possession

 

Neither the Lender, nor any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Securities or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee or heritable creditor in possession may be liable as such.

 

	
12.3 

	
Indemnity from Securities

 

The Lender, and any Receiver, attorney, agent or other person appointed by the Lender under this Deed and the Lender's officers and employees (each an "Indemnified Party") shall be entitled to be indemnified out of the Securities in respect of all costs, losses, actions, claims, expenses, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by or made against any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

  

13

  

 

	
  

	
(a)

	
anything done or omitted in the exercise or purported exercise of the powers contained in this Deed; or

 

	
  

	
(b)

	
any breach by the Chargor of any of its obligations under this Deed;

 

and the Chargor shall indemnify the Lender and any Receiver(s) against any such matters.

 

	
12.4

	
Value Added Tax

 

If any payment made by or on behalf of the Lender hereunder includes an amount in respect of value added tax or any payment due to the Lender hereunder shall be reimbursement of any expenditure by or on behalf of the Lender which includes an amount in respect of value added tax, then such amount shall be payable by the Chargor to the Lender on demand with interest from the date of such demand computed and payable as notified by the Lender to the Chargor and pending payment, shall be secured by this Deed.

 

	
12.5

	
Challenge of Deed

 

The Chargor shall pay to the Lender (on a full and unqualified indemnity basis) all costs incurred or suffered by the Lender and any Receiver appointed by the Lender shall be entitled to recover as a receivership expense all costs incurred or suffered by him in connection with any application under Part III of the Insolvency Act 1986 and in defending proceedings brought by any third party impugning the Lender's title to this security or the enforcement or exercise of the rights or remedies of the Lender or of any Receiver and all such costs shall bear interest from the date such costs were incurred, suffered, computed or payable as notified by the Lender to the Chargor and pending payment shall be secured hereby.

 

	
13 

	
POWER OF ATTORNEY

 

	
13.1

	
Power of attorney

 

The Chargor, by way of security, hereby irrevocably appoints each of the Lender and any Receiver severally (and each Receiver severally if there is more than one) to be its attorney in its name and on its behalf:

  

14

  

 

	
  

	
(a)

	
to execute and complete any documents or instruments which the Lender or such Receiver may require for perfecting the title of the Lender to the Securities or for vesting the same in the Lender, its nominees or any purchaser;

 

	
  

	
(b)

	
to sign, execute, seal and deliver and otherwise perfect any further security document referred to in clause 6 (Further Assurance);  and

 

	
  

	
(c)

	
otherwise generally to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Lender or a Receiver under this Deed or which may be deemed expedient by the Lender or a Receiver in connection with any disposition, realisation or getting in by the Lender or such Receiver of the Securities or any part thereof or in connection with any other exercise of any power under this Deed.

 

	
13.2

	
Ratification

 

The Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in clause 13.1 (Power of attorney) shall lawfully do or purport to do in the exercise or purported exercise of his powers under such clause.

 

	
14

	
CONTINUING SECURITY AND OTHER MATTERS

 

	
14.1

	
Continuing security

 

This Deed and the obligations of the Chargor under this Deed shall:

 

	
  

	
(a)

	
secure the ultimate balance from time to time owing to the Lender by the Chargor and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

	
  

	
(b)

	
be in addition to, and not prejudice or affect, any present or future Collateral Instrument, Security, right or remedy held by or available to the Lender;

 

	
  

	
(c)

	
not merge with or be in any way prejudiced or affected by the existence of any such Collateral Instruments, Security, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Lender dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same or giving time for payment or indulgence or compounding with any other person liable;

 

	
  

	
(d)

	
not be discharged or affected by the incapacity or any change in the name of the Chargor or any other person liable;

  

15

  

 

	
  

	
(e)

	
not be discharged or affected by the Security Trustee granting any time, indulgence or concession to, or compounding with, discharging, releasing or varying the liability of the Chargor or any other person liable or renewing, determining, varying or increasing any accommodation, facility or transaction or otherwise dealing with the same in any manner whatsoever or concurring in, accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Chargor or any other person liable;

 

	
  

	
(f)

	
not be discharged or affected by any act or omission which would not have discharged or affected the liability of any or all of the Chargor had it been a principal debtor instead of a surety or by anything done or omitted which but for this provision might operate to exonerate the Chargor;

 

	
  

	
(g)

	
not be discharged or affected by any failure of, or defect in, any agreement given by or on behalf of the Chargor in respect of any Secured Obligations nor by any legal limitation in any matter in respect of any Secured Obligations or by any other fact or circumstances (whether known or not to the Chargor or the Lender) as a result of which any Secured Obligations may be rendered illegal, void or unenforceable by the Lender; and

 

	
  

	
(h)

	
remain binding on the Chargor notwithstanding any amalgamation, reconstruction, reorganisation, merger, sale or transfer by or involving the Lender or assets of the Lender and for this purpose this Deed and all rights conferred on the Lender under it may be assigned or transferred by the Lender accordingly.

 

	
14.2

	
Collateral Instruments

 

The Lender shall not be obliged to resort to any Collateral Instrument or other means of payment now or hereafter held by or available to it before enforcing this Deed and no action taken or omitted by the Lender in connection with any such Collateral Instrument or other means of payment shall discharge, reduce, prejudice or affect the liability of the Chargor nor shall the Lender be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Collateral Instrument or other means of payment.

 

	
15 

	
RELEASE

 

	
15.1

	
Release

 

	
  

	
(a)

	
If the Lender is satisfied that all the Secured Obligations have been unconditionally and irrevocably paid or discharged in full and the Lender has no further liability or obligation under any Finance Document, the Lender will, at the request and cost of the Chargor, discharge this Deed.

  

16

  

 

	
  

	
(b)

	
Any release, discharge or settlement between the Chargor and the Lender shall be conditional upon no security, disposition or payment to the Lender by the Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Lender shall be entitled to enforce this Deed subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.

 

	
16

	
LIABILITY OF THE CHARGOR

 

	
16.1

	
Limited Recourse

 

Notwithstanding any other provision to the contrary in this Deed, the amount recoverable from the Chargor under and/or pursuant to this Deed (other than in the case of willful default and/or fraud of the Chargor) shall be limited to an amount equivalent to that realised from the Securities plus interest and costs payable under this Deed.

 

	
16.2

	
Charge not to be affected

 

The liability of the Chargor under this Deed in respect of any of the Secured Obligations will not be affected by any act, omission, matter or thing which, but for this clause, would reduce, release or prejudice any of its obligations under this Deed (without limitation and whether or not known to it or the Lender) including:

 

	
  

	
(a)

	
any time, waiver or consent granted to, or composition with, the Chargor, or other person;

 

	
  

	
(b)

	
the release of the Chargor, or any other person under the terms of any composition or arrangement with any creditor of any member of the Chargor;

 

	
  

	
(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, the Chargor, 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 the Chargor, or any other person;

 

	
  

	
(e)

	
any amendment (however fundamental) or replacement of a Finance Document or any other document or security;

  

17

  

 

	
  

	
(f)

	
any assignment, transfer or novation by the Lender of its rights and/or obligations under the Finance Documents;

 

	
  

	
(g)

	
any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security;

 

	
  

	
(h)

	
any insolvency or similar proceedings; or

 

	
  

	
(i)

	
any other act or omission which but for this provision might have discharged or otherwise prejudiced or affected the liability of the Chargor.

 

	
16.3

	
Immediate Recourse

 

The Chargor waives any right it may have of requiring the Lender to:

 

	
  

	
(a)

	
enforce any security or other right; or

 

	
  

	
(b)

	
claim any payment from or otherwise proceed against any other person

 

before enforcing this Deed against the Chargor.

 

	
17

	
SET-OFF

 

	
17.1

	
Set-off

 

The Chargor hereby agrees that the Lender may (but shall not be obliged to) at any time and from time to time without notice:

 

	
  

	
(a)

	
set off any amounts owed by the Lender to it in or towards satisfaction of the Secured Obligations (which shall be in addition to and without prejudice to such rights of set-off, combination, lien and other rights whatsoever conferred on the Lender by law or under this Deed); and

 

	
  

	
(b)

	
transfer any sum or sums standing to the credit of any accounts of the Chargor with the Lender of whatever nature and in whatever currency denominated, in or towards satisfaction of any sums due and payable from the Chargor to the Lender under this Deed or in or towards satisfaction of the Secured Obligations.

 

	
17.2

	
Additional rights

 

If the liability in respect of which the Lender is exercising its rights of set-off is contingent, or not yet payable, it shall automatically be accelerated, and shall accordingly be due and payable, before and at the time of such set-off.  If the sums standing to the credit of any account of the Chargor with the Lender at any of their branches against which set-off is to be made are not due or matured or otherwise payable, they shall notwithstanding anything to the contrary contained in this Deed be deemed already to be so for the purposes of the set-off contemplated in clause 17.1 (Set-off) provided that the Lender shall not be obliged to exercise any right given to it by this clause 17 (Set-off).

  

18

  

 

	
17.3

	
Waiver

 

The Chargor hereby waives any right of set-off it may have from time to time in respect of the Secured Obligations.

 

	
18

	
MISCELLANEOUS

 

	
18.1

	
Remedies cumulative

 

No failure or delay on the part of the Lender to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.   Any waiver, consent, receipt, settlement or release given by the Lender in relation to this Deed should only be effective if given in writing and then only for the purpose for and upon the terms on which it is given.

 

	
18.2

	
Successors and assigns

 

Any appointment or removal of a Receiver under clause 10 (Appointment and powers of Receiver) and any consents under this Deed may be made or given in writing, signed or sealed by any successors or assigns of the Lender and accordingly the Chargor hereby irrevocably appoints each successor and assign of the Lender to be its attorney in the terms and for the purposes set out in clause 13 (Power of attorney).

 

	
18.3

	
Reorganisation of the Lender

 

This Deed shall remain binding on the Chargor notwithstanding any change in the constitution of the Lender or its absorption in or amalgamation with or the acquisition of all or part of its undertaking by any other person or any reconstruction or reorganisation of any kind.  The security granted by this Deed shall remain valid and effective in all respects in favour of any assignee, transferee or other successor in title of the Lender in the same manner as if such assignee, transferee or other successor in title had been named in this Deed as a party instead of or in addition to the Lender.

 

	
18.4

	
Unfettered discretion

 

Any liability or power which may be exercised or any determination which may be made under this Deed by the Lender may be exercised or made in its absolute and unfettered discretion and it shall not be obliged to give reasons therefore.

  

19

  

 

	
18.5

	
Provisions severable

 

	
  

	
(a)

	
Each of the provisions of this Deed is severable and distinct from the others and if at any time one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Deed shall not in any way be affected or impaired thereby.

 

	
  

	
(b)

	
If any invalid or unenforceable clause (or part of a clause) would not be invalid or unenforceable if its drafting or effect were modified in any way, the Chargor agrees that the Lender can require such clause to be modified so as to be valid and enforceable.

 

	
18.6

	
Preservation of rights

 

The Lender may, in its absolute discretion, grant time or other indulgence or make any other arrangement, variation or release with any person not a party hereto or affecting or concerning any such person in respect of the Secured Obligations or in respect of any Security or any guarantee for the Secured Obligations, without in any such case prejudicing, affecting or impairing the security hereby constituted, or any of the rights, powers or remedies of the Lender or the exercise of the same, or the Secured Obligations or other liability of the Chargor to the Lender.

 

	
18.7

	
Set-aside Payments

 

If the Lender reasonably considers that any amount paid by the Chargor to the Lender is capable of being avoided or set aside on the liquidation, receivership or administration of the Chargor or otherwise, then for the purpose of this Deed, such amount shall not be considered to have been paid.

 

	
18.8

	
Redeeming prior security

 

If any person takes (or threatens to take) any steps to enforce any security which ranks before or equal to any part of this security in relation to any of the Securities, the Lender or any Receiver in respect of such Securities may at any time redeem any part of that security or procure its transfer to the Lender or such Receiver.   The money so expended by the Lender or any Receiver and all costs of and incidental to the transaction incurred by the Lender or any Receiver shall be secured by this Deed and shall bear interest as notified by the Lender to the Chargor.

 

	
18.9

	
Settlement of accounts

 

The Lender and any Receiver may settle and pass the accounts of any person entitled to any security which ranks before or equal to any part of this security in relation to any part of the Securities.  Any accounts so settled and passed shall be conclusive and binding on the Chargor.

  

20

  

 

	
18.10

	
Trust period

 

All trusts declared in this Deed shall, pursuant to section 5 of the Perpetuities & Accumulations Act 2009, be for a period of 125 years.

 

	
19

	
NOTICES

 

	
19.1

	
Method

 

Each notice or other communication to be given under or in connection with this Deed shall be given in writing in English and, unless otherwise provided, shall be made by hand, fax or letter.  For the avoidance of doubt, notice shall not be validly given by e-mail.

 

	
19.2

	
Delivery

 

Any notice or other communication to be given by one party to another under this Deed shall (unless one party has by no less than 5 Business Days' notice to the other party specified another address and/or fax number) be given to that other party at the addresses and/or fax number set out below:

 

	 	
(a)

	
Lender:

	  
	 	 	 	 
	 	  	
Address:

	  
	 	  	  	  
	 	 	 	 
	 	 	 	 
	 	  	
Attention:

	
Paul Hogan

	 	 	 	 
	 	  	
Fax No:

	  
	 	 	 	 
	 	  	
Chargor:

	
Femcare Distribution Limited

	 	 	 	 
	 	  	
Address:

	
Stuart Court, Spursholt Place Salisbury Road

	 	 	 	 
	 	  	 	 
Romsey, Hampshire SO51 6DJ

	 	 	 	 
	 	  	
Attention:

	
John Willis

	 	 	 	 
	 	  	
Fax No:

	  

 

	
19.3

	
Deemed receipt

 

	
  

	
(a)

	
Any notice or other communication given by the Lender shall be deemed to have been received:

  

21

  

 

	
  

	
(i)

	
in the case of a notice given by hand, at the time of day of actual delivery;

 

	
  

	
(ii)

	
if sent by fax, with a confirmed receipt of transmission from the receiving machine, on the day on which transmitted; and

 

	
  

	
(iii)

	
if posted, by 10.00 am on the second Business Day following the day on which it was despatched by first class mail postage prepaid

 

provided that a notice given in accordance with the above but received on a day which is not a Business Day or after normal business hours in the place of receipt shall be deemed to have been received on the next Business Day.

 

	
  

	
(b)

	
Any notice or other communication given to the Lender shall be deemed to have been given only on actual receipt.

 

	
19.4

	
Notices conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Deed shall, save for manifest error be conclusive and binding upon the Chargor if signed by an officer of the Lender.

 

	
20

	
TRANSFERS BY THE LENDER OR THE CHARGOR

 

	
20.1

	
Restriction on the Chargor

 

The Chargor shall not assign or otherwise transfer any of its rights or obligations under this Deed or enter into any transaction or arrangement which will result in any of those rights or obligations passing to or being held in trust for or for the benefit of any other person.

 

	
20.2

	
The Lender

 

	
  

	
(a)

	
The Lender may at any time sell, assign, novate, securitise or otherwise transfer all or any part of its rights or obligations under this Deed (a "Transfer") to any person at any time (a "Transferee"). The Lender may, and the Chargor consents to, the disclosure by the Lender of any information and documentation concerning the Chargor to any prospective Transferee.

 

	
  

	
(b)

	
If there is a Transfer by the Lender the Chargor will be bound to the Transferee and the rights and obligations of the Chargor under this Deed will remain the same.  The Transferee will have the same powers, rights, benefits and obligations of the Lender to the extent that they are sold, assigned, novated or otherwise transferred to the Transferee and the outgoing Lender will be released from its obligations to the Chargor to the extent that those obligations are assumed by the Transferee. The Chargor will enter into all documents necessary to give effect to any such Transfer.

  

22

  

 

	
21

	
COUNTERPARTS

 

This Deed may be signed in any number of counterparts and this has the same effect as if the signatures on counterparts were on a single copy of this Deed.  Each counterpart, when executed and delivered, shall constitute an original of this Deed, but all the executed and delivered counterparts shall together constitute a single instrument.

 

	
22

	
THIRD PARTIES

 

For the purposes of section 1(2) of the Contracts (Rights of Third Parties) Act 1999 the parties state that they do not intend any term of this Deed to be enforced by any third parties but any third party right which exists or is available independently of that Act is largely preserved.

 

	
23

	
LAW

 

	
23.1

	
English law

 

This Deed and any non contractual obligations arising out of or in connection with this Deed shall be governed by and shall be construed in accordance with English law.

 

EXECUTED AS A DEED by the parties on the date noted at the head of this Deed.

 

 

  

23

  

Schedule 1

 

Part A 

 

Form of written resolution to amend articles of association

 

Company No. [l]

 

THE COMPANIES ACT 2006

 

	
 

PRIVATE COMPANY LIMITED BY SHARES

 

 

WRITTEN RESOLUTION

 

of

 

[l] LIMITED

 

(the "Company")

 

	
 

Circulation Date [of first copy]

[l] 20[l]

 

 

Pursuant to Chapter 2 of Part 13 of the Companies Act 2006, the directors of the Company propose the following Written Resolution as a Special Resolution:

 

SPECIAL RESOLUTION

 

THAT the articles of association of the Company be altered by the insertion of the following wording at the end of article [l]:

 

"Notwithstanding anything contained in these articles (whether by way of or in relation to pre-emption rights, restrictions on, or conditions applicable to, share transfers, or otherwise, including, for the avoidance of doubt, any lien referred to in the articles), the directors shall not decline to register any transfer of shares nor suspend registration thereof:

 

	
24

	
where such transfer is in favour of a bank or other financial institution or any nominee of a bank or other financial institution and the transfer is as contemplated by, or pursuant to, any mortgage or charge of shares or any call or other share option granted in favour of such bank or financial institution; or

 

	
25

	
where such transfer is by or on behalf of a bank or financial institution or any nominee of a bank or financial institution in favour of any third party upon disposal or realisation of shares following the bank having become entitled to exercise or enforce its rights under any such mortgage, charge and/or call or other option

 

  

24

  

 

and a certificate by any officer of the bank or financial institution that the relevant transfer is within paragraph (a) and (b) above shall be conclusive evidence of that fact."

 

 

Please read the Notes overleaf before signifying your agreement to the Written Resolution.

 

Pursuant to Chapter 2 of Part 13 of the Companies Act 2006, [I/we], the undersigned, being [the sole] [an] eligible member([s]) of the Company who would have been entitled to vote on the resolution set out above on the Circulation Date stated above hereby irrevocably agree to the resolution, as a Special Resolution.

 

 

...........................................                                                                

 

.............................................

 

[Name]                                                                Date of Signature

[duly authorised for and

on behalf of]

[l]

 

 

  

25

  

Notes

 

	
1

	
If you agree to the proposed Written Resolution please sign and date this document overleaf on the dotted line where indicated and return it to the Company using one of the following methods, in each case by no later than 5pm the date 28 days after the Circulation Date stated overleaf:

 

	
1.1

	
by hand or by post to [the Company's registered office at [l]]

 

	
1.2

	
[by electronic mail addressed to [l]]

 

	
2

	
If you do not agree to the Written Resolution you do not need to do anything.  You will not be deemed to agree if you fail to reply.

 

	
3

	
The Written Resolution will lapse if the agreement of the required majority of eligible members is not received by the Company by 5pm on the date 28 days after the Circulation Date stated overleaf. If the Company does not receive this signed document from you by this date and time it will not be counted in determining whether the Written Resolution is passed.

 

	
4

	
The Written Resolution is passed on the date and time that the Company receives the agreement of the required majority of eligible members.  The required majority for a Special Resolution is eligible members representing not less than 75% of the total voting rights of eligible members.

 

	
5

	
You may not revoke your agreement to the Written Resolution once you have signed and returned this document to the Company.

 

	
6

	
If you are signing this document on behalf of a person under a power of attorney or other authority please send a copy of the relevant power of attorney or authority when returning this document.

 

 

  

26

  

Part B

 

Filing print of written resolutions to file at Companies House

 

Company No. [l]

 

THE COMPANIES ACTS 2006

 

	
 

PRIVATE COMPANY LIMITED BY SHARES

 

 

WRITTEN RESOLUTION

 

of

 

[l] LIMITED

 

(the "Company")

 

	
 

PASSED ON : [l] 20[l]

 

 

Pursuant to Chapter 2 of Part 13 of the Companies Act 2006, the following resolution [was/were] passed by written resolution as a Special Resolution:

 

SPECIAL RESOLUTION

 

THAT the articles of association of the Company be altered by the insertion of the following wording at the end of article [l]:

 

"Notwithstanding anything contained in these articles (whether by way of or in relation to pre-emption rights, restrictions on, or conditions applicable to, share transfers, or otherwise, including, for the avoidance of doubt, any lien referred to in the articles), the directors shall not decline to register any transfer of shares nor suspend registration thereof:

 

	
1

	
where such transfer is in favour of a bank or other financial institution or any nominee of a bank or other financial institution and the transfer is as contemplated by, or pursuant to, any mortgage or charge of shares or any call or other share option granted in favour of [l] bank or other financial institution; or

 

	
2

	
where such transfer is by or on behalf of a bank or financial institution or any nominee of a bank or financial institution in favour of any third party upon disposal or realisation of shares following the bank having become entitled to exercise or enforce its rights under any such mortgage, charge and/or call or other option

 

 

  

27

  

 

 

and a certificate by any officer of the bank or financial institution that the relevant transfer is within paragraph (a) and (b) above shall be conclusive evidence of that fact."

 

 

.............................................

 

Director

 

  

28

  

 

CHARGOR

 

  

	 	 
	EXECUTED as a DEED	)
	By FEMCARE DISTRIBUTION LIMITED	) 
	 	)
	
acting by:-

	
) /s/ Paul O. Richins

	  	  
	  	  
	  	  
	  	
Director

	  	  
	  	  
	
in the presence of a witness:

	
) /s/ Kevin L. Cornwell

	  	  
	
Name of witness:

	
Kevin L. Cornwell

Address:

 

Occupation:

 

LENDER

 

  

	EXECUTED as a DEED	)
	By JPMORGAN CHASE BANK, N.A.	)
	 	)
	
acting by:-

	
) /s/ Lynn Goodale

	  	  
	  	  
	  	  
	  	
Authorised Signatory

	  	  
	  	  

 

 

 

29

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