Document:

exv10w17

 

Exhibit 10.17

SECURED SENIOR SUBORDINATED PROMISSORY NOTE

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAWS OF ANY STATE AND MAY TO THE EXTENT THAT SUCH ACT APPLIES TO A TRANSFER OR DISPOSAL, NOT BE
SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

THIS NOTE AND THE INDEBTEDNESS EVIDENCED HEREBY IS SUBORDINATED IN THE MANNER AND TO THE EXTENT SET
FORTH IN THAT CERTAIN ROYAL WOLF INTERCREDITOR DEED, DATED AS OF SEPTEMBER 13, 2007, BY AND BETWEEN
AUSTRALASIA NEW ZEALAND BANKING GROUP AND BISON CAPITAL AUSTRALIA, L.P., AND EACH HOLDER OF THIS
NOTE, BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE PROVISIONS OF SUCH SUBORDINATION AGREEMENT.

GFN AUSTRALIA FINANCE PTY LTD

13.50% SECURED SENIOR SUBORDINATED PROMISSORY NOTE

			
	 	 	 
	AUD$20,000,000
	 	Los Angeles, California

September 13, 2007

     FOR VALUE RECEIVED, GFN AUSTRALASIA FINANCE PTY LTD (ACN 121 227 790), an Australian
corporation (the “Maker), hereby promises to pay to the order of BISON CAPITAL AUSTRALIA, L.P., a
Delaware limited partnership (“Bison Capital”), or its registered assigns (along with Bison
Capital, each a “Holder”), on the Maturity Date (as hereinafter defined) the principal sum
constituting the amount of Australian dollars that converts into US$16,816,000.00 which is the
amount of U.S. dollars that Bison Capital used to purchase this Note at the Closing Date, or in the
case of a prepayment, such portion thereof being prepaid, with interest thereon from time to time
as provided herein.

     This Note is the Secured Senior Subordinated Note referred to in the Securities Purchase
Agreement (the “Purchase Agreement”), dated as of September 13, 2007, by and among the Maker,
General Finance Corporation, a Delaware corporation (“GFN”), Bison Capital, GFN Australasia
Holdings, Inc. and GFN Australasia Holdings Pty Ltd is subject to the provisions of the Purchase
Agreement, and is subject to acceleration and to optional and mandatory prepayment in whole or in
part as provided herein. The Holder is entitled to the benefits of this Note and the Purchase
Agreement, as it relates to this Note, and may enforce the agreements of the Maker contained herein
and therein and exercise the remedies provided for hereby and thereby or otherwise available in
respect hereto and thereto. Capitalized terms used herein
without definition are used herein with the meanings ascribed to such terms in the Purchase
Agreement. This Note is secured and guaranteed as provided in the Related Agreements.

-1-

 

          1. Interest.

               (a) Subject to Section 1(b) hereof, the Maker promises to pay interest on the
principal amount of this Note from time to time outstanding (the “Principal Amount”) at the per
annum rate equal to thirteen and 50/100 percent (13.50%) (the “Scheduled Interest Rate”). All
accrued interest payable pursuant to this Section 1(a) shall be due and payable in arrears
on the first date of each quarter or, if any such date shall not be a Business Day, on the next
succeeding Business Day to occur after such date (the “Interest Payment Date”), beginning on
October 1, 2007, and shall be paid in immediately available funds to an account designated by the
Holder. All interest payable pursuant to this Section 1(a) shall accrue and be paid in
Australian dollars.

               (b) If at any time (i) Maker fails to make any payment of principal as and when due (whether
at stated maturity, upon acceleration or required prepayment or otherwise), (ii) Maker fails to
make any payment of interest, premium, if any, fees, costs, expenses or other amounts due hereunder
within one (1) Business Day after the date when due, or (iii) any other Event of Default has
occurred and is continuing, then, in addition to the rights and remedies available to the Holder
under the Purchase Agreement, this Note, the other Related Agreements and Applicable Laws, Maker
shall pay interest in cash on the unpaid principal balance of, premium, if any, and accrued and
unpaid interest on this Note at a rate per annum (the “Default Rate”) equal to fifteen and 50/100
percent (15.50%) from the date specified in Section 11.1 of the Purchase Agreement until
such time as such Event of Default is cured or waived and, additionally, the Holder may demand
immediate repayment of the Principal Amount (which such Principal Amount shall be deemed to be the
Optional Prepayment Amount (as hereinafter defined) if such demand to accelerate repayment of the
Principal Amount occurs within the time period provided for such Optional Prepayment Amount in
Section 3(a)) and any accrued but unpaid interest, and the Repayment Premium (if applicable and as
hereinafter defined).

               (c) Interest payable under this Note shall accrue from and including the date of issuance
through and until repayment of the principal and payment of all accrued interest and premium, if
any, in full. All interest payable under this Note shall accrue on a quarterly basis and be
computed on the basis of a 360-day year of twelve 30-day months.

          2. Maturity Date. The outstanding principal balance of this Note, together with all
premiums, if any, accrued and unpaid interest on, and all other amounts owing under this Note,
shall be due and payable on March 13, 2013 (the “Maturity Date”). Notwithstanding the foregoing,
the Maker may, at its sole option, elect to extend the Maturity Date up to an additional twelve
(12) months, provided that no event described in Section 1(b)(i)-(iii) has occurred and is
continuing. Additionally, the Holder may demand immediate repayment of the Principal Amount (which
such Principal Amount shall be deemed to be the Optional Prepayment Amount (as hereinafter defined)
if such demand to accelerate the repayment of the Principal Amount occurs within the time period
provided for such Optional Prepayment Amount in Section 3(a)), any accrued but unpaid interest and
the Repayment Premium (if applicable and as hereinafter

-2-

 

defined) or any such amounts under any agreement that replaces or refinances the amounts owing
under this Note, upon the occurrence of any event as provided in Section 1(b)(i)-(iii), upon
acceleration of the Senior Debt as defined under the terms of the Royal Wolf Intercreditor Deed,
dated September 13, 2007, by and among Australia and New Zealand Banking Group, Bison Capital,
Maker and certain other parties (the “Subordination Agreement”), subject to the terms and
conditions of such Subordination Agreement, or upon the acceleration of any other Senior
Indebtedness.

          3. Optional Prepayments.

               (a) Except as provided in Section 4 below, Maker may not prepay the unpaid principal
balance of this Note prior to the first anniversary of the Closing Date. Thereafter, subject to
Section 3(b), this Note may be voluntarily prepaid, at the sole option of Maker, in whole
or in part, as follows: (i) at 103.0% of the Principal Amount being prepaid at any time on or after
the first anniversary of the Closing Date and prior to the second anniversary of the Closing Date;
(ii) at 102.0% of the Principal Amount being prepaid at any time on or after the second anniversary
of the Closing Date and prior to the third anniversary of the Closing Date; (iii) at 101.0% of the
Principal Amount being prepaid at any time on or after the third anniversary of the Closing Date
and prior to the fourth anniversary of the Closing Date; and (iv) at 100.0% of the Principal Amount
being prepaid at any time on or after the fourth anniversary of the Closing Date. The optional
prepayment amount as provided in each of Sections 3(a)(i)-(ii) shall be referred to as an “Optional
Prepayment Amount”. Any prepayment of this Note under this Section 3 shall also include all
accrued and unpaid interest on the outstanding principal balance of this Note through and including
the date of prepayment.

               (b) Maker shall give the Holder written notice of each voluntary prepayment not less than
thirty (30) nor more than ninety (90) days prior to the date of prepayment. Such notice shall
specify the Principal Amount of this Note to be prepaid on such date. Notice of prepayment having
been given as aforesaid, a payment in an amount equal to the Principal Amount of this Note
specified in such prepayment notice shall become due and payable on such prepayment date, together
with all accrued and unpaid interest on the outstanding principal balance of this Note through and
including the date of prepayment. All prepayments of principal shall be in minimum increments of
Five Hundred Thousand Australian Dollars (AUD$500,000) or the entire unpaid Principal Amount, if
less than AUD$500,000.

          4. Repayment Premium.

               (a) If the GFN Stock Price Condition shall not have been satified, on the first to occur of
the following (the “Repayment Premium Trigger Date”): (i) the Maturity Date, or (ii) the demand for
acceleration of the repayment of amounts owed under this Note following an Event of Default under
subections 12.1(a), (h) or (i) of the Purchase Agreement or under Section 5 of this Note, Holder
shall be entitled to receive, on the Maturity Date, or within 10 days following the Repayment
Premium Trigger Date if the Repayment Premium Trigger Date occurs under subparagraph (ii), as the
case may be, the Repayment Premium; provided that, the Holder shall have delivered to Maker
no later than fifteen (15) Business Days prior to the Repayment Premium Trigger Date: (i) written
notice electing to receive the Repayment Premium, which such notice shall contain a calculation by
the Holder as to the amount of any

-3-

 

Warrant Gains (defined below); and (ii) all the unexercised and outstanding Bison Warrants and
all Bison Warrant Shares, with appropriate stock powers therefor, that shall then be owned by
Holder and all of its Affiliates (which Bison Warrants and Bison Warrant Shares shall be cancelled
concurrently with the timely payment of the Repayment Premium). For avoidance of doubt, the number
of Bison Warrant Shares delivered to Maker must equal the number of Bison Warrant Shares issued
upon exercise of the Bison Warrant less the number of Bison Warrant Shares that have been sold
other than to Affiliates of Holder and that are accounted for as to Warrant Gains (such numbers
adjusted for stock splits, reverse stock splits and stock dividends affecting the number of Bison
Warrant Shares issuable and/or issued).

               (b) For purposes of this Note:

          (1) “GFN Market Price” on any trading day shall be deemed to be the last
reported sale price of the Common Stock on such day, or, in case no such reported
sales take place on such day, the last reported sale price on the preceding trading
day on which there was a last reported sales price, as officially reported by the
principal securities exchange in which the shares of Common Stock are listed or
admitted to trading or, if the Common Stock is not listed or admitted to trading on
any national securities exchange, the last sale price, or if there is no last sale
price, the closing bid price, as furnished by the National Association of Securities
Dealers, Inc. (such as through the OTC Bulletin Board) or a similar organization or
if Nasdaq is no longer reporting such information. If the GFN Market Price cannot
be determined pursuant to the sentence above, the GFN Market Price shall be
determined in good faith (using customary valuation methods) by the Board of
Directors of Maker based on the information best available to it, including recent
arms-length sales of Common Stock to unaffiliated persons.

          (2) “GFN Stock Price Condition” shall not be satisfied if at no time
prior to the Repayment Premium Trigger Date, the GFN Market Price shall exceed Ten
U.S. Dollars (U.S.$10.00) per share (such amount subject to adjustment for stock
splits, reverse stock splits and stock dividends after the date of this Note) for
twenty (20) consecutive trading days with an average daily trading volume of more
than thirty thousand (30,000) shares of such stock during such 20 consecutive
trading day period. For purposes of calculating the average daily trading volume,
the trading volume on any day during which more than one hundred thousand (100,000)
shares of GFN’s common stock shall be traded shall be deemed to be one hundred
thousand (100,000) shares.

          (3) “Repayment Premium” shall be an amount equal to: (i) 6% of the original
Principal Amount of this Note, less (ii) any Warrant Gains.

          (4) “Warrant Gains” shall mean the sum of the following in connection with all
sales, transfers, assignments of the Bison Warrants and/or the Bison Warrant Shares,
the gross purchase price received from the sale, transfer or assignment (and if the
purchase price is paid in whole or in part, with consideration other than cash, the
fair market value of such other consideration),

-4-

 

provided that Warrant Gains shall not include any gains upon the sales of Bison
Warrant Shares if such sale was not pursuant to an effective registration under the
Securities Act of 1933, as amended, and at the time of such sale GFN shall be in
breach of its obligation to have registered the sale of such Bison Warrant Shares
pursuant to the Registration Rights Agreement. For purposes of computing gains on
sales of Bison Warrant Shares, if the Bison Warrants are exercised pursuant to a net
exercise, the purchase price for the net number of Bison Warrant Shares acquired
upon such net exercise shall be zero. Any sales, transfers or assignments of the
Bison Warrants or Bison Warrant Shares to any Affiliate of the Holder shall not be
deemed to trigger any Warrant Gains, provided, however that any
sales, transfers or assignments by such Affiliates to third parties shall be deemed
to trigger Warrant Gains (and Holder shall be obligated to deliver to Maker any
Bison Warrant Shares held by its Affiliates in order to receive that portion of the
Repayment Premium attributable to Warrant Gains on such shares).

               (c) Maker’s obligation to pay the Repayment Premium shall exist regardless of whether it has
already fully repaid this Note prior to the Maturity Date as permitted under Section 3
hereof (and, in which case, Maker may not elect to extend the Maturity Date as permitted under
Section 2 hereof)

          5. Change in Control Prepayment. The Holder may require the Maker to prepay the
outstanding principal balance of this Note, in whole or in part, and shall be entitled to all
premiums that Holder would otherwise be entitled to under this Note (including any Repayment
Premium and/or Optional Prepayment Amount) as a result of an acceleration of the amounts owing
under this Note, as requested by the Holder, at any time during the ninety (90)-day period
following the consummation of any transaction which constitutes a Change in Control (as such term
is defined below), at the prepayment amount set forth below. For the purposes of this Note, a
“Change in Control” shall mean:

               (a) Any transaction or other event (including, without limitation, any merger, consolidation,
sale or other transfer of stock or voting rights with respect thereto, issuance of stock, death or
other transaction or event) by virtue of which GFN fails to own, directly or indirectly through one
or more of its Affiliates, at least a majority of the outstanding Capital Stock of Maker or any of
its Subsidiaries through which the Covered Business is principally conducted; or

               (b) Any sale, lease, transfer, assignment or other disposition of all or substantially all of
the assets of Maker (excluding assets sold in connection with any asset securitization transaction
in the ordinary course of Maker’s business) or any of its Subsidiaries.

The prepayment amount under this Section 5 shall be equal to the Principal Amount being prepaid,
plus accrued and unpaid interest thereon through and including the date of prepayment. Maker shall
notify the Holder of the date on which a Change in Control has occurred within one (1) Business Day
after such date and shall, in such notification, inform the Holder of the Holder’s right to require
Maker to prepay this Note as provided in this Section 5 and of the date on which such right
shall terminate. If the Holder elects to require Maker to prepay this Note pursuant to this
Section 5, it shall furnish written notice to Maker advising Maker of such election and the

-5-

 

amount of principal of this Note to be prepaid. Maker shall prepay this Note in accordance with
this Section 5 and such written notice within three (3) Business Days after its receipt of
such written notice.

          6. Closing Fee. Upon the Closing, the Maker shall pay to Bison Capital the sum of
Four Hundred Thousand Australian Dollars (AUD$400,000) (the “Closing Fee”) as provided in the
Purchase Agreement. Payment of the Closing Fee shall not reduce any amounts owed as principal or
interest hereunder.

          7. Security. The obligations of the Maker to the Holder, including, without
limitation, those obligations existing under this Note or the Purchase Agreement, shall be secured
by a lien granted to the Holder by the Maker and its subsidiaries in substantially all of their
respective corporate assets, including all of the outstanding capital stock of Maker’s
subsidiaries; provided, however, that Holder’s lien shall be subject only to a first priority lien
and security interest of a Senior Lender (as defined under the Subordination Agreement) on such
corporate assets, in accordance with the terms and conditions of the Subordination Agreement, and
to any “Permitted Liens” (as defined in the Purchase Agreement).

          8. Manner of Payment. Payments of principal, interest and other amounts due under
this Note shall be made no later than 12:00 p.m. (noon) (Los Angeles time) on the date when due and
in lawful money of the Commonwealth of Australia (by wire transfer in funds immediately available
at the place of payment) to such account as the Holder may designate in writing to the Maker. Any
payments received after 12:00 p.m. (noon) (Los Angeles time) shall be deemed to have been received
on the next succeeding Business Day. Any payments due hereunder which are due on a day which is
not a Business Day shall be payable on the first succeeding Business Day and such extension of time
shall be included in the computation.

          9. Maximum Lawful Rate of Interest. The rate of interest payable under this Note
shall in no event exceed the maximum rate permissible under applicable law. If the rate of
interest payable on this Note is ever reduced as a result of this Section 9 and at any time
thereafter the maximum rate permitted under applicable law exceeds the rate of interest provided
for in this Note, then the rate provided for in this Note shall be increased to the maximum rate
provided for under applicable law for such period as is required so that the total amount of
interest received by the Holder is that which would have been received by the Holder but for the
operation of the first sentence of this Section 9.

          10. Maker’s Waivers. Except as otherwise provided herein, the Maker hereby waives
presentment for payment, demand, protest, notice of protest and notice of dishonor hereof, and all
other notices of any kind to which it may be entitled under applicable law or otherwise.

          11. Transfer.

               (a) The term “Holder” as used herein shall also include any transferee of this Note whose name
has been recorded by the Maker in the Register (as hereinafter defined). Each transferee of this
Note acknowledges that this Note has not been registered under the Securities Act, and may be
transferred only pursuant to an effective registration statement under
the Securities Act or pursuant to an applicable exemption from the registration requirements
of the Securities Act.

-6-

 

               (b) The Maker shall maintain at its principal executive office a register for the registration
of transfers of this Note (the “Register”). The name and address of the Holder, each transfer
thereof and the name and address of each transferee shall be registered in the Register. Prior to
due presentment for registration of transfer, absent demonstrable error, the Person in whose name
this Note is registered shall be deemed and treated as the owner and holder thereof for all
purposes hereof. Any transfer of this Note shall be effective only upon appropriate entries with
respect thereto being made in the Register.

          12. Persons Deemed Owners; Participations.

               (a) Prior to due presentment for registration of any assignment, Maker may treat the Person in
whose name any Note is registered pursuant to the Register as the owner and Holder of such Note for
all purposes whatsoever, and Maker shall not be affected by notice to the contrary. Subject to the
preceding sentence, the Holder may grant to any other Person participations from time to time in
all or any part of this Note on such terms and conditions as may be determined by the Holder in its
sole and absolute discretion, subject to applicable federal and state securities laws, provided,
however, that unless the Holder has assigned or transferred all or any portion of this Note in
accordance with Section 13 hereof by surrendering this Note at Maker’s principal executive office
for registration of any such assignment or transfer, Maker shall continue to treat the Person in
whose name this Note is registered as the owner of purposes, including payments. Notwithstanding
anything to the contrary contained herein or otherwise, nothing in the Purchase Agreement, this
Note or any other Related Agreement or otherwise shall confer upon the participant any rights in
the Purchase Agreement or any Related Agreement, and the Holder shall retain all rights with
respect to the administration, waiver, amendment, collection and enforcement of, compliance with
and consent to the terms and provisions of the Purchase Agreement, this Note or any other Related
Agreement.

               (b) In addition, the Holder may, without the consent of the participant, give or withhold its
consent or agreement to any amendments to or modifications of the Purchase Agreement, this Note or
any other Related Agreement, waive any of the provisions hereof or thereof or exercise or refrain
from exercising any other rights or remedies which the Holder may have under the Purchase
Agreement, this Note or any other Related Agreement or otherwise.

          13. Assignment and Transfer. Subject to compliance with Applicable Law and except as
otherwise provided in the Purchase Agreement, the Holder may, at any time and from time to time and
without the consent of Maker, assign or transfer to one or more Persons all or any portion of this
Note or any portion thereof (but not less than AUD$500,000 in Principal Amount in any single
assignment (unless such lesser amount represents the entire outstanding principal balance hereof))
or any rights hereunder. Upon surrender of this Note at Maker’s principal executive office for
registration of any such assignment or transfer, accompanied by a duly executed instrument of
transfer, Maker shall, at its expense and within three (3) Business Days of such surrender, execute
and deliver one or more new notes of like tenor in the requested principal denominations and in the
name of the assignee or assignees and bearing the legend set forth on the face of this Note, and
this Note shall promptly be canceled. If the entire outstanding

-7-

 

principal balance of this Note is not being assigned, Maker shall issue to the Holder hereof,
within three (3) Business Days of the date of surrender hereof, a new note which evidences the
portion of such outstanding principal balance not being assigned. If this Note is divided into one
or more notes and is held at any time by more than one Holder, any payments of principal of,
premium, if any, and interest or other amounts on this Note which are not sufficient to pay all
interest or other amounts due thereunder, shall be made pro rata with respect to all such notes in
accordance with the outstanding Principal Amounts thereof, respectively. At any time that the
original Note issued on the Closing Date is divided into two or more smaller Notes, all consents,
approvals, waivers, demands and decisions that the Holder is entitled to make under this Note shall
be made only by the Holders of a majority of the Principal Amounts of the Notes outstanding.

          14. Loss, Theft, Destruction or Mutilation. Upon receipt of evidence reasonably
satisfactory to the Maker of the loss, theft, destruction or mutilation of this Note and, in the
case of any such loss, theft or destruction, upon receipt of an indemnity agreement or other
indemnity reasonably satisfactory to the Maker or, in the case of any such mutilation, upon
surrender and cancellation of such mutilated Note, the Maker shall make and deliver within three
(3) Business Days a new note, of like tenor, in lieu of the lost, stolen, destroyed or mutilated
Note.

          15. Costs of Collection. The Maker agrees to pay all costs and expenses, including
the reasonable fees and expenses of any attorneys, accountants and other experts retained by the
Holder, which are expended or incurred by the Holder following an Event of Default in connection
with (a) the enforcement of this Note or the collection of any sums due hereunder, whether or not
suit is commenced; (b) any actions for declaratory relief in any way related to this Note; (c) the
protection or preservation of any rights of the Holder under this Note; (d) any actions taken by
the Holder in negotiating any amendment, waiver, consent or release of or under this Note; (e) any
actions taken in reviewing the Maker’s or any of its Subsidiaries’ financial affairs if an Event of
Default has occurred or the Holder has determined in good faith that an Event of Default may likely
occur, including, without limitation, the following actions: (i) inspect the facilities of the
Maker and any of its Subsidiaries or conduct appraisals of the financial condition of the Maker and
any of its Subsidiaries; (ii) have an accounting firm chosen by the Holder review the books and
records of the Maker and any of its Subsidiaries and perform a thorough and complete examination
thereof; (iii) interview the Maker’s and each of its Subsidiaries’ employees, accountants,
customers and any other individuals related to the Maker or its Subsidiaries which the Holder
believes may have relevant information concerning the financial condition of the Maker and any of
its Subsidiaries; and (iv) undertake any other action which the Holder believes is necessary to
assess accurately the financial condition and prospects of the Maker and any of its Subsidiaries;
(f) the Holder’s participation in any refinancing, restructuring, bankruptcy or insolvency
proceeding involving the Maker, any of its Subsidiaries or any other Affiliate of the Maker; (g)
any effort by the Holder to protect, assemble, complete, collect, sell, liquidate or otherwise
dispose of any collateral, including in connection with any case under Bankruptcy Law; or (h) any
refinancing or restructuring of this Note at the request or instigation of Maker, including,
without limitation, any restructuring in the nature of a “work out” or in any insolvency or
bankruptcy proceeding of Maker.

-8-

 

          16. Extension of Time. The Holder, at its option, may extend the time for payment of
this Note, postpone the enforcement hereof, or grant any other indulgences without affecting or
diminishing the Holder’s right to recourse against the Borrower, which right is expressly reserved.

          17. Notations. Before disposing of this Note or any portion thereof, the Holder may
make a notation thereon (or on a schedule attached thereto) of the amount of all principal payments
previously made by Maker with respect thereto.

          18. GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW SOUTH WALES, AUSTRALIA. TO THE EXTENT NECESSARY THE
PROVISIONS OF ALL OTHER DOCUMENTS REFERRED TO HEREIN (INCLUDING WITHOUT LIMITATION THE PROVISIONS
OF THE PURCHASE AGREEMENT AND SPECIFICALLY THE REPRESENTATIONS, WARRANTIES, COVENANTS AND EVENTS OF
DEFAULT PROVIDED IN FAVOUR OF OR FOR THE BENEFIT OF THE HOLDER) SHALL BE DEEMED TO BE INCLUDED
HEREIN AS IF SET OUT IN FULL HEREIN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW SOUTH WALES AUSTRALIA EVEN IF EXPRESSED IN THE OTHER DOCUMENTS TO BE
GOVERNED BY THE LAWS OF ANOTHER JURISDICTION. THE ENFORCEMENT BY THE HOLDER OF THE PURCHASE
AGREEMENT OR ANY OTHER DOCUMENT UNDER THE LAWS OF ANOTHER JURISDICTION DO NOT RESTRAIN OR IN ANY
WAY IMPACT UPON THE ABILITY OF THE HOLDER TO ENFORCE THIS NOTE OR ANY GUARANTEE, LIEN OR SECURITY
INTEREST HELD BY THE HOLDER IN RESPECT OF THE INDEBTEDNESS CREATED BY THIS NOTE OR OTHERWISE UNDER
THE LAWS OF THE STATE OF NEW SOUTH WALES AUSTRALIA.

          19. Choice of Jurisdiction. The Maker hereby consents and agrees that all actions,
suits or other proceedings arising under or in connection with this Note or any other related
document shall be finally settled by arbitration administered by the International Centre for
Dispute Resolution in accordance with its International Arbitration Rules, by one arbitrator
appointed in accordance with the said Rules. The arbitration shall be conducted in Los Angeles,
California in the English language.

          20. WAIVER OF JURY TRIAL. THE MAKER AND THE HOLDER (BY ACCEPTANCE THEREOF) HEREBY
WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING BROUGHT TO RESOLVE ANY
CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATING TO THIS NOTE, THE PURCHASE AGREEMENT, ANY
OTHER RELATED AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, REGARDLESS OF WHICH
PARTY INITIATES SUCH ACTION, SUIT OR OTHER PROCEEDING.

-9-

 

          21. Severability. If any one or more of the provisions contained herein, or the
application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect
for any reason, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired, unless the
provisions held invalid, illegal or unenforceable substantially impair the benefits of the
remaining provisions hereof.

          22. Headings. The headings in this Note are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof.

[SIGNATURE PAGE FOLLOWS]

-10-

 

     IN WITNESS WHEREOF, this Secured Senior Subordinated Promissory Note is executed as of the
date first above written.

	 	 	 	 	 
	 	GFN AUSTRALASIA FINANCE PTY LTD,

an Australian corporation

 	 
	 	By  	/s/ John O. Johnson
 	 
	 	 	John O. Johnson, Director 	 
	 	 	 	 
	 	By  	/s/ Robert Barnes
 	 
	 	 	Robert Barnes, Director 	 
	 	 	 	 
	 

-11-exv10w18

 

Exhibit 10.18

GFN Australasia Finance Pty Ltd

ACN 121 227 790

(“Chargor”)

and

Bison Capital Australia L.P.

(“Chargee”)

Deed of Charge

Arnold Bloch Leibler

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page no.
	1	 	Definitions and interpretation	 	 	1	 
	 
	 	1.1	 	Definitions	 	 	1	 
	 
	 	1.2	 	Interpretation	 	 	4	 
	 
	 	1.3	 	Business Day	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	2	 	Charge	 	 	6	 
	 
	 	2.1	 	Charge	 	 	6	 
	 
	 	2.2	 	Nature of Charge	 	 	6	 
	 
	 	2.3	 	Crystallisation	 	 	7	 
	 
	 	2.4	 	De-crystallisation	 	 	7	 
	 
	 	2.5	 	Prospective liability	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	3	 	Discharge of the Charge	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	4	 	Undertakings of the Chargor	 	 	8	 
	 
	 	4.1	 	Payment of Secured Moneys	 	 	8	 
	 
	 	4.2	 	Charged Property	 	 	8	 
	 
	 	4.3	 	Further security	 	 	9	 
	 
	 	4.4	 	Title Documents	 	 	9	 
	 
	 	4.5	 	Registration and protection of security	 	 	10	 
	 
	 	4.6	 	Negative pledge	 	 	10	 
	 
	 	4.7	 	No caveats	 	 	11	 
	 
	 	4.8	 	Transfer of Security Licence	 	 	11	 
	 
	 	4.9	 	Term of undertakings	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	5	 	Representations and Warranties	 	 	11	 
	 
	 	5.1	 	Representations and Warranties	 	 	11	 
	 
	 	5.2	 	Reliance on representations and warranties	 	 	12	 
	 
	 	5.3	 	Repetition	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	6	 	Enforcement	 	 	12	 
	 
	 	6.1	 	When enforceable	 	 	12	 
	 
	 	6.2	 	Assistance in realisation	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	7	 	Receiver	 	 	13	 
	 
	 	7.1	 	Appointment of Receiver	 	 	13	 
	 
	 	7.2	 	Agency of Receiver	 	 	13	 
	 
	 	7.3	 	Powers of Receiver	 	 	13	 
	 
	 	7.4	 	Nature of Receiver’s Powers	 	 	16	 
	 
	 	7.5	 	Status of Receiver after commencement of winding-up	 	 	16	 
	 
	 	7.6	 	Powers exercisable by the Chargee	 	 	16	 
	 
	 	7.7	 	Notice of exercise of rights	 	 	17	 
	 
	 	7.8	 	Termination of receivership and possession	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	8	 	Application of Money Received	 	 	17	 
	 
	 	8.1	 	Order	 	 	17	 
	 
	 	8.2	 	Payments	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	9	 	Certificate as to Amount of Secured Moneys	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	10	 	Guarantee	 	 	18	 
	 
	 	10.1	 	Interpretation	 	 	18	 
	 
	 	10.2	 	Guarantee	 	 	19	 
	 
	 	10.3	 	Indemnity	 	 	19	 
	 
	 	10.4	 	Payment obligation	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	11	 	Third Party Provisions	 	 	19	 
	 
	 	11.1	 	Security not to be affected	 	 	19	 
	 
	 	11.2	 	Principal and independent obligation	 	 	20	 
	 
	 	11.3	 	No marshalling	 	 	20	 
	 
	 	11.4	 	Suspense account	 	 	20	 
	 
	 	11.5	 	Variation	 	 	21	 
	 
	 	11.6	 	Indemnity	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	12	 	Power of attorney	 	 	21	 
	 
	 	12.1	 	Appointment of Attorney	 	 	21	 

	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page i

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page no.
	 
	 	12.2	 	Purposes of appointment	 	 	21	 
	 
	 	12.3	 	Delegation and substitution	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	13	 	Protection	 	 	22	 
	 
	 	13.1	 	Protection of third parties	 	 	22	 
	 
	 	13.2	 	Protection of enforcing party	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	14	 	Reinstatement of rights	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	15	 	Limitation of Chargee’s liability	 	 	24	 
	 
	 	 	 	 	 	 	 	 
	16	 	General	 	 	24	 
	 
	 	16.1	 	Notices	 	 	24	 
	 
	 	16.2	 	Governing law and jurisdiction	 	 	24	 
	 
	 	16.3	 	Attorneys	 	 	25	 

			 
	Arnold Bloch Leibler
	 	Deed of Charge | Page ii

 

 

THIS DEED is made on 14 September 2007

PARTIES

GFN AUSTRALASIA FINANCE PTY LTD

ACN 121 227 790 of Suite 202, level 2, 22-28 Edgeworth David
Avenue, Hornsby NSW 2077 (“Chargor”)

and

BISON CAPITAL AUSTRALIA, LP

a Delaware limited liability partnership

of 10877 Wilshire Boulevard Suite 1520, Los Angeles, California 90024 United States of
America

(“Chargee”)

BACKGROUND

	A	 	The Chargee has agreed and may in the future agree to provide certain financial accommodation to members of the GFC
Group.
	 
	B	 	The Chargor is the legal and beneficial owner of the Charged Property.
	 
	C	 	The Chargor has agreed to charge the Charged Property to secure payment of the Secured Moneys.

AGREED TERMS

	1	 	Definitions and interpretation
	 
	1.1	 	Definitions
	 
	 	 	In this deed:
	 
	 	 	“Associate” has the meaning given to that term by section 9 of the Corporations Act.
	 
	 	 	“Charge” means the security created by this Deed.
	 
	 	 	“Charged Property” means:

	 	(a)	 	the whole of the assets property and undertaking of the Chargor wherever
situate both present and future;
	 
	 	(b)	 	the goodwill of any business; and
	 
	 	(c)	 	all freehold and leasehold property plant and equipment and other fixed assets,
which are or may hereafter become vested in it.

		 	
	Arnold Bloch Leibler
	 	Deed of Charge | Page 1

 

 

	 	 	“Corporations Act” means the Corporations Act 2001 (Cth).
	 
	 	 	“Controller” means, in relation to a person’s property:

	 	(a)	 	a receiver or receiver and manager of that property; or
	 
	 	(b)	 	anyone else who (whether or not as agent for the person) is in possession, or
has control of that property to enforce a Security Interest.

	 	 	“Deed” means this deed of charge.
	 
	 	 	“Debtor” is a Relevant Party (other than the Chargor) that has borrowed or has obtained
financial indebtedness directly from the Chargee.
	 
	 	 	“Enforcing Party” means the Chargee or any Receiver, agent, administrator, Attorney or
Controller appointed under any Finance Document or any applicable law.
	 
	 	 	“Event of Default” means an “Event of Default (as defined and set out in clause 12.1 of the
Securities Purchase Agreement).
	 
	 	 	“Finally Paid” means, in respect of the Secured Moneys or any other monetary liability under
the Finance Documents, satisfaction of the following conditions:

	 	(a)	 	payment or satisfaction of it in full; and
	 
	 	(b)	 	if the Chargee reasonably believes on the basis of legal advice (and that
belief must be formed and notified to the Relevant Party within 10 Business Days of
receipt of any such advice and in any event no later than 30 days after the payment or
satisfaction of it in full) during the six months period from and including the day
after the payment or satisfaction, that no person, including each Relevant Party, a
liquidator, a provisional liquidator, administrator, trustee in bankruptcy, Receiver,
receiver and manager, other Controller or similar official, has a legitimate right to
recoup or claim repayment of any part of the amount paid or satisfied, whether under
the laws of preferences, fraudulent dispositions or otherwise.

	 	 	“Finance Documents” means the Securities Purchase Agreement, the Note, the Guaranty, each
“Related Agreement” (as defined in the Securities Purchase Agreement), each document
referred to in any of those documents and each other document which the Chargor and Chargee
agree from time to time is a ‘Finance Document’ for the purposes of this Deed.
	 
	 	 	“GFC Group” means:

	 	(a)	 	General Finance Corporation (a Delaware corporation);
	 
	 	(b)	 	GFN U.S. Australasia Holdings, Inc (a Delaware corporation);
	 
	 	(c)	 	GFN Australasia Finance Pty Ltd (ACN 121 227 790);
	 
	 	(d)	 	GFN Australasia Holdings Pty Ltd (ACN 121 226 793);

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 2

 

 

	 	(e)	 	RWA Holdings Pty Ltd (ACN 106 913 964);
	 
	 	(f)	 	Royal Wolf Trading Australia Pty Ltd (ACN 069 244 417); and
	 
	 	(g)	 	Royal Wolf Hi-Tech Pty Ltd (ACN 079 735 050).

	 	 	“Government Agency” means:

	 	(a)	 	a government or government department;
	 
	 	(b)	 	a governmental, semi-governmental, regulatory or judicial entity or authority;
or
	 
	 	(c)	 	a person (whether autonomous or not) who is charged with the administration of
a law.

	 	 	“Guaranty” means the guaranty dated on or about the date of this Deed between General
Finance Corporation, GFN US Australasia Holdings Inc and GFN Australasia Holdings Pty Ltd.
	 
	 	 	“Intellectual Property Rights” includes any patent, design, trade mark, copyright, trade
secret, confidential information and any right to use, or to grant the use of, or to be the
registered owner or user of, any of them.
	 
	 	 	“Marketable Securities” has the meaning given to that expression in the Corporations Act
2001.
	 
	 	 	“Note” means the Secured Senior Subordinated Promissory Note as contemplated by the
Securities Purchase Agreement and executed by the Chargor and the Chargee on or about the
date of this Deed.
	 
	 	 	“Related Body Corporate” has the meaning given to that term by section 9 of the Corporations
Act.
	 
	 	 	“Relevant Party” means:

	 	(a)	 	the Chargor;
	 
	 	(b)	 	any other member of the GFC Group; or
	 
	 	(c)	 	any other person who creates or permits to subsist any Security Interest or
provides any guarantee in favour of the Chargee in connection with the Note.

	 	 	“Security Interest” means an interest or power:

	 	(a)	 	reserved in or over any interest in any asset including, but not limited to,
any retention of title; or
	 
	 	(b)	 	created or otherwise arising in or over any interest in any asset under a bill
of sale, mortgage, charge (whether fixed or floating), hypothecation, lien, pledge,
caveat, trust or power,

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 3

 

 

	 	 	by way of security for the payment of debt or any other monetary obligation or the
performance of any other obligation and includes, but is not limited to, any agreement to
grant or create any of the above.
	 
	 	 	“Security Licence” means all the right, title and interest (to the extent assignable) of the
Chargor in all or any Authorisations granted or issued to, or otherwise held by, it in
relation to or in connection with the Charged Property.
	 
	 	 	“Secured Moneys” includes:

	 	(a)	 	all moneys which the Chargor (whether alone or with any other person and
whether jointly, jointly and severally, or severally) presently is or in the future
becomes actually or contingently liable to pay to or for the account of the Chargee
whether alone or with any other person including without limitation under or pursuant
to any Finance Document (and including without limitation by way of principal,
interest, fees, costs, charges, expenses, guarantee, indemnity or damages);
	 
	 	(b)	 	all moneys which the Chargee (whether requested so to do or not) may pay or
become liable to pay for or on account of the Chargor either directly or indirectly;
and
	 
	 	(c)	 	all other moneys whatsoever which the Chargee may lend pay or advance to or on
behalf of or become in any way whatsoever liable to pay or advance (whether requested
to do so or not) to or for the credit or for the accommodation or otherwise on the
account of Chargor or its subsidiaries and any reference in this paragraph to moneys
due or owing by any Relevant Party means and includes all moneys due by any Relevant
Party to the Chargee on any account;

	 	 	“Securities Purchase Agreement” means the agreement entered into between the Chargee,
General Finance Corporation (a Delaware Corporation), and a number of its subsidiaries dated
on or about the date of this Deed.
	 
	 	 	“Title Document” means any present or future original, duplicate or counterpart:

	 	(a)	 	certificate or document of title;
	 
	 	(b)	 	certificate or document relating to title; or
	 
	 	(c)	 	certificate or document relating to use, possession, disposition, devolution or
acquisition of property,

	 	 	including, but not limited to, any real property certificate of title,
grant, conveyance, assurance, deed, map, plan, survey, will, probate,
abstract of title, insurance policy, certificate of currency,
valuation or report relating to the Charged Property.
	 
	1.2	 	Interpretation
	 
	 	 	In this document, unless the context requires otherwise:

	 	(a)	 	the singular includes the plural and vice versa;
	 
	 	(b)	 	words denoting any gender include all genders;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 4

 

 

	 	(c)	 	where a word or phrase is defined, its other grammatical forms have a
corresponding meaning;
	 
	 	(d)	 	a reference to a party, clause, paragraph, schedule or annexure is a reference
to a party, clause, paragraph, schedule or annexure to or of this document;
	 
	 	(e)	 	a reference to this document includes any schedules or annexures;
	 
	 	(f)	 	headings are for convenience and do not affect interpretation;
	 
	 	(g)	 	the background or recitals to this document are adopted as and form part of
this document;
	 
	 	(h)	 	a reference to any document or agreement includes a reference to that document
or agreement as amended, novated, supplemented, varied or replaced from time to time;
	 
	 	(i)	 	a reference to “$”, “A$” or “dollar” is a reference to Australian currency;
	 
	 	(j)	 	a reference to a time is a reference to Australian Eastern Standard Time or
Australian Eastern Daylight Time, whichever is appropriate;
	 
	 	(k)	 	a reference to a party includes its executors, administrators, successors,
substitutes (including persons taking by novation) and permitted assigns;
	 
	 	(l)	 	a reference to writing includes any method of representing words, figures or
symbols in a permanent and visible form;
	 
	 	(m)	 	words and expressions denoting natural persons include bodies corporate,
partnerships, associations, firms, governments and governmental authorities and
agencies and vice versa;
	 
	 	(n)	 	a reference to any legislation or to any provision of any legislation includes:

	 	(i)	 	any modification or re-enactment of the legislation;
	 
	 	(ii)	 	any legislative provision substituted for, and all legislation,
statutory instruments and regulations issued under, the legislation or
provision; and
	 
	 	(iii)	 	where relevant, corresponding legislation in any Australian
State or Territory;

	 	(o)	 	no rule of construction applies to the disadvantage of a party because that
party was responsible for the preparation of this document or any part of it; and
	 
	 	(p)	 	the words “including”, “for example”, “such as” or other similar expressions
(in any form) are not words of limitation.

	1.3	 	Business Day

	 	(a)	 	Where the day on or by which any thing is to be done (other than any payment
which must be made under this deed) is not a Business Day, that thing must be done on
or by the immediately succeeding Business Day.
	 
	 	(b)	 	Where the day on which any payment is to be made under this deed is not a
Business Day, that payment must be made on the first following day that is a Business
Day unless that day falls in the next calendar month, in which case that
date will be the first preceding day that is a Business Day, and interest must be
adjusted accordingly.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 5

 

 

	2	 	Charge
	 
	2.1	 	Charge
	 
	 	 	The Chargor charges all of its interest in the Charged Property to the Chargee as security
for the due and punctual payment of the Secured Moneys.
	 
	2.2	 	Nature of Charge
	 
	 	 	The Charge is:

	 	(a)	 	a fixed charge over all the Chargor’s present and future right, title and
interest in the Charged Property which is:

	 	(i)	 	any freehold or leasehold property or any other interest in
real property, fixtures, plant and equipment (other than stock in trade);
	 
	 	(ii)	 	any uncalled or called but unpaid capital or premiums of the
Chargor;
	 
	 	(iii)	 	any Security Interest over any real or personal property or
any Guarantee;
	 
	 	(iv)	 	any Title Document and any other documents evidencing a right
to the possession of any real or personal property;
	 
	 	(v)	 	any partnership in which the Chargor is a partner;
	 
	 	(vi)	 	any joint venture in which the Chargor is a joint venturer;
	 
	 	(vii)	 	any insurance policy in relation to the Charged Property
including, but not limited to, any proceeds from that insurance policy;
	 
	 	(viii)	 	any Marketable Securities;
	 
	 	(ix)	 	any Intellectual Property Rights;
	 
	 	(x)	 	any Security Licence;
	 
	 	(xi)	 	documents and agreements to which the Chargor is a party;
	 
	 	(xii)	 	any book debt or other debt and the proceeds of those debts
(other than rent received under any lease);
	 
	 	(xiii)	 	any other assets that are not acquired for disposal in the ordinary course of
the Chargor’s business;
	 
	 	(xiv)	 	any other property if clause 2.3 says this charge is to be
fixed over that property; and

	 	(b)	 	a floating charge over all other Charged Property.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 6

 

 

	2.3	 	Crystallisation
	 
	 	 	The floating charge created in clauses 2.1 and 2.2(b) automatically and immediately
crystallises and becomes fixed:

	 	(a)	 	without the Chargee giving any notice to the Chargor:

	 	(i)	 	when the law provides that the floating charge becomes a fixed
charge;
	 
	 	(ii)	 	when a Receiver or any other receiver or receiver and manager
is appointed in respect of any of the Charged Property;
	 
	 	(iii)	 	when the Charge or any other Security Interest over any of the
Charged Property is enforced in any other way;
	 
	 	(iv)	 	when a notice under section 260 of schedule 1 of the Tax
Administration Act 1953 (Cth) or under similar legislation in respect of the
Chargor is signed by, or on behalf of, the Commissioner of Taxation or the
Deputy Commissioner of Taxation;
	 
	 	(v)	 	when an order is made or a resolution is passed for the
liquidation of the Chargor;
	 
	 	(vi)	 	in respect of an item of Charged Property, when any step is
taken (including, without limitation, signing a notice) to create, issue, levy
or enforce any distress, attachment, execution, statutory assignment, statutory
charge or other similar right or process against or upon that Charged Property;
	 
	 	(vii)	 	in respect of an item of Charged Property, when any Security
Interest over any of that Charged Property is, or becomes capable of being,
enforced or any floating Security Interest over any of that Charged Property
crystallises or otherwise becomes a fixed Security Interest; or

	 	(b)	 	in respect of the proceeds of any book debt or other debt or other moneys now
or in the future payable to the Chargor and which are the subject of the floating
charge, when notice in respect of those proceeds or moneys is given to the Chargor by
the Chargee at any time after an Event of Default has occurred and is subsisting; or
	 
	 	(c)	 	in respect of any asset forming part of the Charged Property when the Chargee
gives notice in respect of that asset to the Chargor upon or any time after the
occurrence of an Event of Default which is subsisting.

	2.4	 	De-crystallisation

	 	(a)	 	Where an asset has become subject to a fixed charge under clause 2.3, the
Chargee may release the asset from that fixed charge by notice in writing to the
Chargor.
	 
	 	(b)	 	When an asset is released from the fixed charge under clause 2.4(a), the asset
will again be subject to:

	 	(i)	 	the floating charge under clauses 2.1 and 2.2; and
	 
	 	(ii)	 	the further operation of clause 2.3.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 7

 

 

	2.5	 	Prospective liability

	 	(a)	 	For the purposes only of fixing priorities under section 282(3) of the
Corporations Act, the maximum amount of the prospective liability secured by this deed
is $75,000,000.
	 
	 	(b)	 	The Chargee may from time to time lodge a notice under section 268(2) of the
Corporations Act on behalf of the Chargor specifying an increase in the maximum amount
of the prospective liability referred to in clause 2.5(a) and from the date of
lodgement the amount specified in clause 2.5(a) is to be regarded as varied to the
amount specified in that notice.
	 
	 	(c)	 	Neither clause 2.5(a) nor clause 2.5(b) in any way affects or limits the actual
amount of Secured Moneys which may in fact be secured by the Charge.
	 
	 	(d)	 	Clauses 2.5(a), 2.5(b) and 2.5(c) are to be construed independently of each
other.

	3	 	Discharge of the Charge

	 	(a)	 	At the written request of the Chargor, the Chargee must discharge the Charge if:

	 	(i)	 	the Secured Moneys have been Finally Paid; and
	 
	 	(ii)	 	the Chargor has fully observed and performed its obligations
under this deed and each other Finance Document to which it is a party.

	 	(b)	 	Clause 3(a) overrides any other clause to the contrary in this deed.
	 
	 	(c)	 	The parties intend that clause 3(a) be severed from this deed if clause 3(a) is
void or unenforceable under applicable law.
	 
	 	(d)	 	The parties do not intend clause 3(c) to exclude the general law of severance
from applying to this deed.

	4	 	Undertakings of the Chargor
	 
	4.1	 	Payment of Secured Moneys
	 
	 	 	The Chargor must pay the Secured Moneys in accordance with the Finance Documents and each
other obligation or agreement under which the Secured Moneys are payable.
	 
	4.2	 	Charged Property
	 
	 	 	The Chargor must maintain and protect the Charged Property and must, without limitation:

	 	(a)	 	neither sell, transfer or otherwise dispose of the Charged Property nor any
interest in the Charged Property (or attempt to do so) other than in the ordinary
course of its ordinary business;
	 
	 	(b)	 	remedy every defect in its title to any part of the Charged Property;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 8

 

 

	 	(c)	 	take or defend all legal proceedings or other action necessary or desirable for
the protection or recovery of any of the Charged Property;
	 
	 	(d)	 	fully and punctually comply with and observe all applicable laws, all
requirements and orders of any Public Authority where non-compliance or non-observance
would or might impose some Security Interest or restriction, disability or material
liability, on any of the Charged Property or prejudicially affect any Power; and
	 
	 	(e)	 	keep the Charged Property valid and subsisting and free from liability to
forfeiture, cancellation, avoidance or loss.

	4.3	 	Further security

	 	(a)	 	The Chargor must, whenever requested by the Chargee, do or cause to be done
anything which:

	 	(i)	 	more satisfactorily (in the reasonable opinion of the Chargee)
secures the priority of the Charge or assures to the Chargee the Charged
Property or any part of it in a manner consistent with any provision of any
Finance Document; or
	 
	 	(ii)	 	is necessary in the exercise of any Power of the Chargee,

	 	 	 	including, but not limited to, the execution of any document, the delivery of Title
Documents or the execution and delivery of blank transfers.
	 
	 	(b)	 	Without limiting the generality of clause 4.3(a), at the request of the
Chargee, the Chargor must execute a legal or statutory mortgage over any real property
now held or acquired on or after the date of this deed.
	 
	 	(c)	 	The Chargor must register any mortgage executed under clause 4.3(b).
	 
	 	(d)	 	Any mortgage executed under clause 4.3(b) must:

	 	(i)	 	be in favour of the Chargee; and
	 
	 	(ii)	 	be in the form and substance required by the Chargee, but the
Chargee cannot require an obligation which is more onerous than any obligation
contained in any Finance Document.

	 	(e)	 	Before making any request pursuant to clauses 4.3(a) or 4.3(b), the Chargee
must first consult with the Chargor to consider the most appropriate way to implement
the request so as to minimise the incurrence by the Chargor of additional costs or
expenses or taxes. The Chargor acknowledges that the Chargee is under no obligation to
consult in circumstances where it forms the opinion that the request must be made
immediately to protect the interests of the Chargee.

	4.4	 	Title Documents

	 	(a)	 	Subject to any prior ranking Security Interest, the Chargor is required to
deposit with the Chargee, or as the Chargee directs, all the Title Documents in respect
of any of the Charged Property which is subject to the fixed charge created in clauses
2.1 and 2.2 upon written notice by the Chargee (where such notice specifies the precise
Title Documents required) and:

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 9

 

 

	 	(i)	 	immediately upon the acquisition of any asset which forms part
of the Charged Property and is subject to the fixed charge created in clauses
2.1 and 2.2; and
	 
	 	(ii)	 	on the crystallisation and fixing for any reason of the
floating charge created in clauses 2.1 and 2.2.

	 	(b)	 	Subject to clause 4.4(c), the Chargee may retain the Title Documents until the
Charge in respect of all the Charged Property is discharged under clause 3.
	 
	 	(c)	 	If the Charge is enforced by the Chargee, an Enforcing Party is entitled:

	 	(i)	 	to deal with the Title Documents as if it was the absolute and
unencumbered owner of the Charged Property to which the Title Documents relate;
and
	 
	 	(ii)	 	in exercising a power of sale, to deliver any Title Document to
a purchaser of the Charged Property to which it relates.

	4.5	 	Registration and protection of security

	 	(a)	 	Upon request of the Chargee, the Chargor must ensure that this deed is
registered and filed in all registers in all jurisdictions in which it must be
registered and filed to ensure enforceability, validity and priority against all
persons and to be effective as a security.
	 
	 	(b)	 	Whenever any part of the Charged Property is transferred to or retained in a
place where this deed, because of an increase in the Secured Moneys or otherwise, bears
insufficient stamp duty or is not registered or recorded, or for any other reason is of
limited or of no force or effect, unenforceable, inadmissible in evidence or of reduced
priority, if this deed has been registered (and not withdrawn) the Chargor must within
14 days after that transfer or retention ensure that:

	 	(i)	 	this deed is stamped to the satisfaction of the Chargee;
	 
	 	(ii)	 	this deed is in full force and effect, enforceable, admissible
in evidence and not of reduced priority; and
	 
	 	(iii)	 	this deed is registered in that place, or that part of the
Charged Property is removed from that place.

	4.6	 	Negative pledge
	 
	 	 	The Chargor must not:

	 	(a)	 	create, permit, suffer to exist, or agree to, any interest or Security
Interest, other than a Security Interest in favour of the Chargee and except those
charges contemplated by the Royal Wolf Intercreditor Deed or the Securities Purchase
Agreement, over; or
	 
	 	(b)	 	attempt to do anything listed in clause 4.6(a), in respect of,

	 	 	any of its assets without the prior written consent of the Chargee.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 10

 

 

	4.7	 	No caveats
	 
	 	 	The Chargor must ensure that any caveat lodged in respect of the Charged Property, other
than a caveat lodged by the Chargee, is removed within 14 days.
	 
	4.8	 	Transfer of Security Licence
	 
	 	 	After an Event of Default has occurred and if the Chargee requests, the Chargor agrees to
use its best endeavours to ensure that all Security Licences held by it are transferred to
the Chargee or the Chargee’s nominee.
	 
	4.9	 	Term of undertakings
	 
	 	 	Each of the Chargor’s undertakings in this clause 4 continue in full force and effect from
the date of this deed until the Charge in respect of all the Charged Property is discharged
under clause 3.
	 
	5	 	Representations and Warranties
	 
	5.1	 	Representations and Warranties
	 
	 	 	The Chargor makes the following representations and warranties.

	 	(a)	 	(Status) It is a corporation validly existing under the laws of the place of
its incorporation.
	 
	 	(b)	 	(Power) It has the power to enter into and perform its obligations under this
Deed and any Finance Document to which it is expressed to be a party, to carry out the
transactions contemplated by those documents and to carry on its business as now
conducted or contemplated.
	 
	 	(c)	 	(Corporate authorisations) It has taken all necessary corporate action to
authorise the entry into and performance of this Deed and any Finance Document to which
it is expressed to be a party, and to carry out the transactions contemplated by those
documents.
	 
	 	(d)	 	(Documents binding) This Deed and each Finance Document to which it is
expressed to be a party is its valid and binding obligation enforceable in accordance
with its terms, subject to any necessary stamping and registration and to equitable
principles generally affecting creditors rights.
	 
	 	(e)	 	(Transactions permitted) The execution and performance by it of this Deed and
any Finance Document to which it is expressed to be a party and each transaction
contemplated under those documents did not and will not violate:

	 	(i)	 	a law or treaty or a judgment, ruling, order or decree of a
Government Agency binding on it;
	 
	 	(ii)	 	its constitution or other constituent documents; or
	 
	 	(iii)	 	any other document or agreement which is binding on it or its
assets,

	 	 	 	except to the extent that such violation would not have a material adverse effect on
the business, assets, condition (financial or otherwise), properties, and results
of operations of Chargor and its subsidiaries taken as a whole and, except as
provided by this Deed or any Finance Document, did not and will not:

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 11

 

 

	 	(i)	 	create or impose a Security Interest on any of its assets; or
	 
	 	(ii)	 	allow a person to accelerate or cancel an obligation with
respect to any financial debt, or constitute an event of default, cancellation
event, prepayment event or similar event (whatever called) under an agreement
relating to any financial debt, whether immediately or after notice or lapse of
time or both.

	 	(f)	 	(Authorisations) Each authorisation which is required in relation to:

	 	(i)	 	the execution, delivery and performance by it of this Deed and
any Finance Document to which it is expressed to be a party and the
transactions contemplated by those documents;
	 
	 	(ii)	 	the validity and enforceability of those documents; and
	 
	 	(iii)	 	its business as now conducted or contemplated and which is
material,

	 	 	 	has been obtained or effected. Each is in full force and effect.
	 
	 	(g)	 	(Laws) It has complied with all laws binding on it where breach is likely to
have a material adverse effect on the ability of the Chargor to perform its obligations
under this Deed or a Finance Document except to the extent that such non-compliance
would not have a material adverse effect on the business, assets, condition (financial
or otherwise), properties, and results of operations of Chargor and its subsidiaries
taken as a whole.
	 
	 	(h)	 	(Representations) all of its representations and warranties in each Finance
Document are, or will be, true and correct in all respects when made.

	5.2	 	Reliance on representations and warranties
	 
	 	 	The Chargor acknowledges that the Chargee has entered this Deed in reliance on the
representations and warranties made and repeated in this clause 5.
	 
	6	 	Enforcement
	 
	6.1	 	When enforceable

	 	(a)	 	Upon or any time after the occurrence of an Event of Default:

	 	(i)	 	the Charge is immediately enforceable; and
	 
	 	(ii)	 	the Secured Moneys are immediately due and payable by the
Chargor.

	 	(b)	 	Subject to clause 2.4, the right of the Chargor to deal, for any purpose, with
all of the Charged Property, other than by or through a Receiver appointed under this
deed, immediately ceases on the crystallisation of the Charge in respect of all of the
Charged Property.
	 
	 	(c)	 	Subject to clause 2.4, the right of the Chargor to deal, for any purpose, with
any asset which forms part of the Charged Property, other than by or through a
Receiver appointed under this deed, immediately ceases on the crystallisation of the
Charge in respect of that asset.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 12

 

 

	6.2	 	Assistance in realisation
	 
	 	 	After the Charge has become enforceable, the Chargor must take all action required by an
Enforcing Party to assist that Enforcing Party to realise the Charged Property and exercise
any Power including, but not limited to:

	 	(a)	 	executing all transfers, conveyances, assignments and assurances of any of the
Charged Property;
	 
	 	(b)	 	doing anything necessary or desirable under the law in force in any place where
the Charged Property is situated;
	 
	 	(c)	 	giving all notices, orders, directions and consents which an Enforcing Party
thinks expedient; and
	 
	 	(d)	 	doing anything necessary:

	 	(i)	 	for a call to be made on the uncalled capital of the Chargor;
or
	 
	 	(ii)	 	to collect all called but unpaid capital of the Chargor.

	7	 	Receiver
	 
	7.1	 	Appointment of Receiver
	 
	 	 	Upon or at any time after the occurrence of an Event of Default the Chargee may:

	 	(a)	 	appoint any person or any 2 or more persons jointly, or severally, or jointly
and severally to be a Receiver or a receiver and manager of the Charged Property;
	 
	 	(b)	 	remove any Receiver and on the removal, retirement or death of any Receiver,
appoint another Receiver; and
	 
	 	(c)	 	fix the remuneration and direct payment of that remuneration and any costs,
charges and expenses of the Receiver out of the proceeds of any realisation of the
Charged Property.

	7.2	 	Agency of Receiver

	 	(a)	 	Subject to clause 7.5, each Receiver is the agent of the Chargor.
	 
	 	(b)	 	The Chargor is responsible for the acts, defaults and remuneration of the
Receiver.

	7.3	 	Powers of Receiver
	 
	 	 	Subject to any express exclusion by the terms of the Receiver’s appointment, the Receiver
has, in addition to any powers conferred on the Receiver by applicable law, power to do any
of the following whether or not in possession of the Charged Property or any part of it:

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 13

 

 

	 	(a)	 	(manage, possession or control) to manage, enter into possession or assume
control of any of the Charged Property;
	 
	 	(b)	 	(lease or licence) to accept the surrender of, determine, grant or renew any
lease or licence in respect of the use or occupation of any of the Charged Property:

	 	(i)	 	on any terms or special conditions that the Chargee or Receiver
thinks fit; and
	 
	 	(ii)	 	in conjunction with the sale, lease or licence of any other
property by any person;

	 	(c)	 	(sale) to sell or concur in selling any of the Charged Property to any person:

	 	(i)	 	by auction, private treaty or tender;
	 
	 	(ii)	 	on such terms and special conditions as the Chargee or the
Receiver thinks fit;
	 
	 	(iii)	 	for cash or for a deferred payment of the purchase price, in
whole or in part, with or without interest or security;
	 
	 	(iv)	 	in conjunction with the sale of any property by any other
person; and
	 
	 	(v)	 	in one lot or in separate parcels;

	 	(d)	 	(grant options to purchase) to grant to any person an option to purchase any of
the Charged Property;
	 
	 	(e)	 	(acquire property) to acquire any interest in any property, in the name or on
behalf of the Chargor, which on acquisition forms part of the Charged Property;
	 
	 	(f)	 	(carry on business) to carry on or concur in carrying on any business of the
Chargor in respect of the Charged Property;
	 
	 	(g)	 	(borrowings and security)

	 	(i)	 	to raise or borrow any money, in its name or the name or on
behalf of the Chargor, from the Chargee or any person approved by the Chargee
in writing; and
	 
	 	(ii)	 	to secure money raised or borrowed under clause 7.3(i) by a
Security Interest over any of the Charged Property, ranking in priority to,
equal with, or after, the Charge or any other Collateral Security;

	 	(h)	 	(maintain or improve Charged Property) to do anything to maintain, protect or
improve any of the Charged Property including, but not limited to, completing,
repairing, erecting a new improvement on, demolishing or altering any of the Charged
Property;
	 
	 	(i)	 	(income and bank accounts) to do anything to manage or obtain income or revenue
from any of the Charged Property including, but not limited to, operating any bank
account which forms part of the Charged Property or opening and operating a new bank
account;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 14

 

 

	 	(j)	 	(access to Charged Property) to have access to any of the Charged Property, the
premises at which the business of the Chargor is conducted and any of the
administrative services of the business of the Chargor;
	 
	 	(k)	 	(insure Charged Property) to insure any of the Charged Property;
	 
	 	(l)	 	(sever fixtures) to sever fixtures in respect of any of the Charged Property;
	 
	 	(m)	 	(compromise) to make or accept any compromise or arrangement;
	 
	 	(n)	 	(surrender Charged Property) to surrender or transfer any of the Charged
Property to any person;
	 
	 	(o)	 	(exchange Charged Property) to exchange with any person any of the Charged
Property for any other property whether of equal value or not;
	 
	 	(p)	 	(employ or discharge) to employ or discharge any person as an employee,
contractor, agent, professional advisor or auctioneer for any of the purposes of this
deed;
	 
	 	(q)	 	(delegate) to delegate to any person any Power of the Receiver;
	 
	 	(r)	 	(perform or enforce documents) to observe, perform, enforce, exercise or
refrain from exercising any right, power, authority, discretion or remedy of the
Chargor under, or otherwise obtain the benefit of:

	 	(i)	 	any document, agreement or right which attaches to or forms
part of the Charged Property; and
	 
	 	(ii)	 	any document or agreement entered into in exercise of any Power
by the Receiver;

	 	(s)	 	(receipts) to give effectual receipts for all moneys and other assets which may
come into the hands of the Receiver;
	 
	 	(t)	 	(take proceedings) to commence, discontinue, prosecute, defend, settle or
compromise in its name or the name or on behalf of the Chargor, any proceedings
including, but not limited to, proceedings in relation to any insurance in respect of
any of the Charged Property;
	 
	 	(u)	 	(insolvency proceedings) to make any debtor bankrupt, wind-up any company,
corporation or other entity and do all things in relation to any bankruptcy or
winding-up which the Receiver thinks necessary or desirable including, but not limited
to, attending and voting at creditors’ meetings and appointing proxies for those
meetings;
	 
	 	(v)	 	(execute documents) to enter into and execute any document or agreement in the
name of the Receiver or the name or on behalf of the Chargor including, but not limited
to, bills of exchange, cheques or promissory notes for any of the purposes of this
deed;
	 
	 	(w)	 	(make calls) to make calls on any member of the Chargor in respect of uncalled
capital of the Chargor;
	 
	 	(x)	 	(vote) to exercise any voting rights or powers in respect of any part of the
Charged Property;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 15

 

 

	 	(y)	 	(collect called capital) to collect or enforce payment of any called but unpaid
capital of the Chargor whether or not the calls were made by the Receiver;
	 
	 	(z)	 	(ability of Chargor) to do anything the Chargor could do in respect of the
Charged Property;
	 
	 	(aa)	 	(lend) to lend money or provide financial accommodation;
	 
	 	(bb)	 	(vary and terminate agreements) to vary, rescind or terminate any document or
agreement;
	 
	 	(cc)	 	(promote companies) to promote the formation of companies with a view to
purchasing any of the Charged Property or assuming the obligations of the Chargor or
otherwise;
	 
	 	(dd)	 	(other outgoings) to pay any outgoings or indebtedness of the Chargor or any
other person;
	 
	 	(ee)	 	(Security Interest) to redeem any Security Interest or acquire it and any debt
secured by it;
	 
	 	(ff)	 	(insurance claims) to make, enforce, compromise and settle all claims in
respect of insurance;
	 
	 	(gg)	 	(Authorisation) to apply for, renew or obtain any Authorisation; and
	 
	 	(hh)	 	(incidental power) to do anything necessary or incidental to the exercise of
any Power of the Receiver.

	7.4	 	Nature of Receiver’s Powers
	 
	 	 	The Powers of the Receiver must be construed independently and no one Power limits the
generality of any other Power. Any dealing under any Power of the Receiver will be on the
terms and conditions the Receiver thinks fit.
	 
	7.5	 	Status of Receiver after commencement of winding-up

	 	(a)	 	The power to appoint a Receiver under clause 7.1 may be exercised even if at
the time an Event of Default occurs or is subsisting or if at the time a Receiver is
appointed, an order has been made or a resolution has been passed for the winding-up of
the Chargor.
	 
	 	(b)	 	If for any reason, including, but not limited to operation of law, a Receiver:

	 	(i)	 	appointed in the circumstances described in clause 7.5(a); or
	 
	 	(ii)	 	appointed at any other time,

	 	 	 	ceases to be the agent of the Chargor upon or by virtue of, or as a result of, an
order or a resolution being passed for the winding-up of the Chargor, then the
Receiver immediately becomes the agent of the Chargee.

	7.6	 	Powers exercisable by the Chargee

	 	(a)	 	Whether or not a Receiver is appointed under clause 7.1, the Chargee may, on or
after the occurrence of an Event of Default which is subsisting and without giving
notice to any person, exercise any Power of the Receiver in addition to any Power of
the Chargee.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 16

 

 

	 	(b)	 	The exercise of any Power by any Enforcing Party does not cause or deem such
Enforcing Party:

	 	(i)	 	to be a mortgagee in possession;
	 
	 	(ii)	 	to account as mortgagee in possession; or
	 
	 	(iii)	 	to be answerable for any act or omission for which a mortgagee
in possession is liable.

	7.7	 	Notice of exercise of rights
	 
	 	 	An Enforcing Party is not required:

	 	(a)	 	to give notice of the Charge or any other Collateral Security to any debtor or
creditor of the Chargor or to any other person;
	 
	 	(b)	 	to enforce payment of any money payable to the Chargor including, but not
limited to, any of the debts or monetary liabilities charged by this deed or by any
other Collateral Security; or
	 
	 	(c)	 	to obtain the consent of the Chargor to any exercise of a Power.

	7.8	 	Termination of receivership and possession
	 
	 	 	The Chargee may, at any time, terminate the appointment of a Receiver and may, at any time,
give up possession of the Charged Property.
	 
	8	 	Application of Money Received
	 
	8.1	 	Order
	 
	 	 	To the extent permitted by law, all moneys received by a Controller under or by virtue of
this Deed will be applied in the following order:

	 	(a)	 	firstly, to pay that part of the Chargee’s or any Controller’s costs and
expenses incurred in exercising or trying to exercise its rights;
	 
	 	(b)	 	secondly, to pay other outgoings that the Chargee or a Controller decides to
pay;
	 
	 	(c)	 	thirdly, to pay of the Secured Moneys; and
	 
	 	(d)	 	fourthly, to pay the money owing under subsequent charges in order of priority
if this can be determined by the Chargee.

	 	 	The Chargee may pay any money left over after payment of the Secured Moneys into Court or
into a bank account in the name of the Chargor, or if the Chargor asks, directly to the
Chargor.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 17

 

 

	8.2	 	Payments

	 	(a)	 	The Chargor will pay the Secured Moneys without any deduction, withholding for
tax, set-off or counterclaim.
	 
	 	(b)	 	If the law says that the Chargor must make a deduction or withhold money from a
payment, the Chargor will increase the amount of the payment so that the Chargee
actually receives the amount that it would have received if the Chargor had not had to
make a deduction or withholding.
	 
	 	(c)	 	If the Chargee receives a payment toward the Secured Moneys (no matter who
makes the payment), the Chargee can apply the payment to any particular part of the
Secured Moneys that it chooses. In crediting the Chargor’s account with a payment or
any other amount received by the Chargee, the Chargee will only credit the net amount
after deducting any costs expenses and taxes incurred in obtaining the gross amount.
	 
	 	(d)	 	If the Chargor (or anyone else) makes a payment to the Chargee by cheque, or in
any other way that is not cash, the payment is only taken to be made when the Chargee
actually receives the amount of the payment in cash or cleared funds. The Chargee is
only taken to have received purchase money from a sale of the Charged Property when it
actually receives the money.

	9	 	Certificate as to Amount of Secured Moneys
	 
	 	 	A certificate signed by an authorised representative of the Chargee will be
conclusive evidence against the Chargor, in the absence of manifest error:

	 	(a)	 	as to the amount of Secured Moneys stated in that certificate;
	 
	 	(b)	 	that a document specified in that certificate is a Finance Document; and
	 
	 	(c)	 	that the Chargee is of the opinion stated in the certificate.

	10	 	Guarantee
	 
	10.1	 	Interpretation
	 
	 	 	Unless the context requires otherwise, in this clause 10 a reference to any reason or some
reason includes:

	 	(a)	 	any legal limitation, disability, Liquidation, incapacity or thing affecting
any person or the operation of any law, including any law relating to Liquidation,
fiduciary or other duties or obligations or the protection of creditors;
	 
	 	(b)	 	any release, discharge, termination, rescission, repudiation, extinguishment,
abandonment or disclaimer;
	 
	 	(c)	 	any failure by any person to execute, or to execute properly, an agreement or
document or to comply with some requirement; or
	 
	 	(d)	 	an agreement, document, obligation or transaction being or becoming illegal,
invalid, void, voidable or unenforceable in any respect.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 18

 

 

	 	 	 	This applies whether or not the reason was or ought to have been within the
knowledge of the Chargee.

	 	 	Each of clauses 10.2, 10.3 and 10.4 is independent of each other.
	 
	10.2	 	Guarantee
	 
	 	 	The Chargor guarantees the due and punctual payment to the Chargee of the Secured Moneys
owed by each Debtor.
	 
	10.3	 	Indemnity
	 
	 	 	If any Secured Moneys is not owing by or recoverable from a Debtor for any reason the
Chargor shall indemnify the Chargee against any loss. The amount of that loss will equal
the amount the Chargee would otherwise have been entitled to recover.
	 
	10.4	 	Payment obligation
	 
	 	 	On demand by the Chargee from time to time the Chargor shall pay an amount equal to the
Secured Moneys which is then due and payable or would have been due and payable but for some
reason. It shall pay that amount in the same manner and currency which the Debtor is, or
would have been, required to pay the Secured Moneys. A demand need only specify the amount
owing. It need not specify the basis of calculation of that amount.
	 
	11	 	Third Party Provisions
	 
	11.1	 	Security not to be affected
	 
	 	 	None of this Deed, a Finance Document nor the obligations of the Chargor under this Deed
will be affected by anything which but for this provision might operate to release,
prejudicially affect or discharge them or in any way relieve the Chargor from any obligation
including:

	 	(a)	 	the grant to any person of any time, waiver or other indulgence, or the
discharge or release of any person;
	 
	 	(b)	 	any transaction or arrangement that may take place between the Chargee and any
person;
	 
	 	(c)	 	the Chargee becoming a party to or bound by any compromise, moratorium,
assignment of property, scheme of arrangement, composition of debts or scheme of
reconstruction by or relating to any person;
	 
	 	(d)	 	the Chargee exercising or delaying or refraining from exercising any other
security or any right, power or remedy conferred on it by law or by any Finance
Document or by any other document or agreement with any person;
	 
	 	(e)	 	the amendment, variation, novation, replacement, rescission, invalidity,
extinguishment, repudiation, avoidance, unenforceability, frustration, failure, expiry,
termination, loss, release, discharge, abandonment, assignment or transfer, in whole or
in part and with or without consideration, of any Finance Document, or of any other
Security Interest, any guarantee or other document or
agreement held by the Chargee at any time or of any right, obligation, power or
remedy;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 19

 

 

	 	(f)	 	the taking or perfection of or failure to take or perfect a Security Interest
or guarantee or other document or agreement;
	 
	 	(g)	 	the failure by the Chargee or any other person to notify the Chargor of any
default by any person under any Finance Document or any other document or agreement
with the Chargee;
	 
	 	(h)	 	the Chargee obtaining a judgment against any person for the payment of any
Secured Moneys;
	 
	 	(i)	 	any legal limitation, disability, incapacity or other circumstance relating to
any person;
	 
	 	(j)	 	any change in circumstance (including any change in the members or constitution
of any person);
	 
	 	(k)	 	any guarantee or Security Interest or other document or agreement not being
valid or executed by, or binding on, any person; or
	 
	 	(l)	 	any increase in the Secured Moneys for any reason (including as a result of
anything referred to above),

	 	 	whether with or without the consent of the Chargor. References to any person include any
Debtor. None of the above paragraphs limits any of the others.
	 
	11.2	 	Principal and independent obligation
	 
	 	 	This Deed and any other charges or Security Interests that may be given by the Chargor to
the Chargee is a principal and independent obligation. Except for stamp duty purposes, it
is not ancillary or collateral to any other Security Interest, charge, right or obligation.
	 
	11.3	 	No marshalling
	 
	 	 	The Chargee is not obliged to marshal or appropriate in favour of the Chargor or to
exercise, apply or recover:

	 	(a)	 	any Security Interest or any guarantee held by the Chargee at any time; or
	 
	 	(b)	 	any of the funds or assets that the Chargee may be entitled to receive or have
a claim on.

	11.4	 	Suspense account
	 
	 	 	In the event of the winding up or liquidation of any Relevant Party, the Chargor authorises
the Chargee:

	 	(a)	 	to prove for all moneys received by any Controller under or by virtue of this
Deed or any other charge over a Relevant Party; and
	 
	 	(b)	 	(i) to retain and carry to a suspense account; and

	 	(ii)	 	to appropriate at the discretion of the Chargee;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 20

 

 

	 	 	 	any dividend received in the winding up or liquidation of a Relevant Party or any
other person and any other money received in respect of the Secured Moneys,

	 	 	until the Chargee has been paid the Secured Moneys in full.
	 
	11.5	 	Variation
	 
	 	 	Without limiting the above provision, this Deed and any other charge over a Debtor covers
the Secured Moneys as varied from time to time including as a result of:

	 	(a)	 	any new Finance Document or any amendment to any Finance Document; or
	 
	 	(b)	 	the provision of further accommodation to the Chargor or a Debtor,

	 	 	and whether or not with the consent of or notice to the Chargor.
	 
	11.6	 	Indemnity
	 
	 	 	If any Secured Moneys (including moneys which would have been Secured Moneys if they were
recoverable) is not recoverable from a Relevant Party for any reason, including any legal
limitation, disability or incapacity affecting that Relevant Party or an obligation in any
Finance Document being or becoming unenforceable, void or illegal and whether or not:

	 	(a)	 	any transaction relating to the Secured Moneys was void or illegal or has been
subsequently avoided; or
	 
	 	(b)	 	any matter or fact relating to that transaction was or ought to have been
within the knowledge of the Chargee,

	 	 	the Chargor shall indemnify the Chargee in respect of that money and shall pay that money to
the Chargee.
	 
	12	 	Power of attorney
	 
	12.1	 	Appointment of Attorney
	 
	 	 	In consideration of the Chargee entering into the Finance Documents to which it is a party,
the Chargor irrevocably appoints each Enforcing Party and each Authorised Officer of the
Chargee severally its attorney for the purposes set out in clause 12.2.
	 
	12.2	 	Purposes of appointment
	 
	 	 	An Attorney may, in its name or in the name of the Chargor, Chargee or Receiver, at any time
after the occurrence of an Event of Default which is subsisting do any of the following:

	 	(a)	 	do any thing which can be done by the Chargor under or in connection with this
Deed except the Attorney may not amend this Deed;
	 
	 	(b)	 	exercise any right, power, authority, discretion or remedy of, or perform any
obligation of, the Chargor under:

	 	(i)	 	this Deed;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 21

 

 

	 	(ii)	 	any of the Finance Documents; or
	 
	 	(iii)	 	any agreement forming part of the Charged Property,

	 	 	except that, in each case, the Attorney may not amend the Finance Documents;

	 	(c)	 	do any thing which in the opinion of the Attorney is necessary or expedient for
securing or perfecting the Charge and any other Collateral Security;
	 
	 	(d)	 	execute in favour of the Chargee any legal mortgage, transfer, assignment and
any other assurance of any of the Charged Property;
	 
	 	(e)	 	execute deeds of assignment, composition or release;
	 
	 	(f)	 	sell or otherwise part with the possession of any of the Charged Property; and
	 
	 	(g)	 	generally, do any other thing, whether or not of the same kind as those set out
in clauses 12.2(a) to 12.2(f), which in the opinion of the Attorney is necessary or
expedient:

	 	(i)	 	to more satisfactorily secure to the Chargee the payment of the
Secured Moneys; or
	 
	 	(ii)	 	in relation to any of the Charged Property, if the thing is of
the same kind as that set out in clause 12.2(b) or 12.2(f).

	12.3	 	Delegation and substitution
	 
	 	 	An Attorney may, at any time, for any of the purposes in clause 12.2, appoint or remove any
substitute or delegate or sub-attorney.
	 
	13	 	Protection
	 
	13.1	 	Protection of third parties

	 	(a)	 	No person dealing with an Enforcing Party is:

	 	(i)	 	bound to enquire whether:

	 	(A)	 	the Charge has become enforceable;
	 
	 	(B)	 	an Enforcing Party is duly appointed; or
	 
	 	(C)	 	any Power has been properly or regularly
exercised; or

	 	(ii)	 	affected by express notice that the exercise of any Power was
unnecessary or improper.

	 	(b)	 	The irregular or improper exercise of any Power is, as regards the protection
of any person, regarded as authorised by the Chargor and this deed, and is valid.

	13.2	 	Protection of enforcing party

	 	(a)	 	An Enforcing Party is not liable for any loss or damage including, but not
limited to, consequential loss or damage arising directly or indirectly from:

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 22

 

 

	 	(i)	 	any omission or delay in the exercise or non-exercise of any
Power; or
	 
	 	(ii)	 	the neglect, default or dishonesty of any manager, Authorised
Officer, employee, agent, accountant, auctioneer or solicitor of the Chargor or
any Enforcing Party.

	 	(b)	 	Clause 13.2(a) does not apply:

	 	(i)	 	in respect of the Enforcing Party, to any loss or damage which
arises from the wilful default, fraud, gross negligence or illegal acts of the
Enforcing Party; and
	 
	 	(ii)	 	in respect of an Enforcing Party, to any loss or damage which
arises from the wilful default, fraud, gross negligence or illegal acts of that
Enforcing Party or its manager, Authorised Officers, employees, agents,
accountants, auctioneers or solicitors.

	14	 	Indemnities
	 
	14.1	 	General indemnity
	 
	 	 	The Chargor indemnifies the Chargee against any loss which the Chargee or any other
Enforcing Party pays, suffers, incurs or is liable for, in respect of any of the following:

	 	(a)	 	the payment, omission to make payment or delay in making payment of an amount
referred to in clause 14.2;
	 
	 	(b)	 	the occurrence of any Event of Default;
	 
	 	(c)	 	an Enforcing Party exercising its powers consequent upon or arising out of the
occurrence of any Event of Default;
	 
	 	(d)	 	the non-exercise, attempted exercise, exercise or delay in the exercise by any
Enforcing Party of any power;
	 
	 	(e)	 	any act or omission of an Enforcing Party or any of its officers, employees or
agents;
	 
	 	(f)	 	the occupation, use or ownership of any of the Charged Property by the Chargor
or any of its officers, employees or agents;
	 
	 	(g)	 	any insurance policy in respect of the Charged Property;
	 
	 	(h)	 	any compulsory acquisition or statutory or judicial divestiture of any of the
Charged Property; and
	 
	 	(i)	 	any other thing in respect of the Charge or any Charged Property.

	14.2	 	Costs and expenses
	 
	 	 	The Chargor must pay all costs and expenses of the Chargee and any employee, officer, agent
or contractor of the Chargee in relation to:

	 	(a)	 	the negotiation, preparation, execution, delivery, stamping, registration,
completion, variation and discharge of this Charge;

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 23

 

 

	 	(b)	 	the enforcement, protection or waiver, or attempted or contemplated enforcement
or protection, of any rights under this Charge;
	 
	 	(c)	 	any consent, approval, inspection, calculation, waiver, release or discharge
given under this Charge;
	 
	 	(d)	 	any enquiry by any Government Agency involving the Chargor,

	 	 	including any administration costs of the Chargee in connection with the matters referred to
in clause 14.2(b) and 14.2(d) and any legal costs and expenses and any professional
consultant’s fees for any of the above on a full indemnity basis.
	 
	15	 	Reinstatement of rights
	 
	 	 	If, under any law relating to insolvency, fiduciary obligations or the protection of
creditors a person claims that a transaction (including a payment) in connection with this
Charge or the Secured Moneys is set aside, void or voidable and the claim is upheld,
conceded or comprised, then:

	 	(a)	 	each Finance Party is immediately entitled as against the Chargor to the rights
in respect of the Secured Moneys to which they were entitled immediately before the
transaction; and
	 
	 	(b)	 	on request from a Finance Party, the Chargor agrees to do anything (including
signing any document) to restore to the Chargee, any Collateral Security (including
this charge) held by it from the Chargor on account of the Secured Moneys immediately
before the transaction. The Chargor shall indemnify the Chargee against any resulting
loss, cost or expense. This clause continues to apply after this Deed is discharged.

	16	 	Limitation of Chargee’s liability
	 
	 	 	The Chargee’s liability is limited in accordance with the terms of the Note.
	 
	17	 	General
	 
	17.1	 	Notices
	 
	 	 	Any notice or other communication including, but not limited to, any request, demand,
consent or approval, to or by a party to any Finance Document must be served in accordance
with the Securities Purchase Agreement.
	 
	17.2	 	Governing law and jurisdiction

	 	(a)	 	This Deed is governed by the laws of New South Wales.
	 
	 	(b)	 	The Chargor irrevocably submits to the non-exclusive jurisdiction of the courts
of New South Wales.
	 
	 	(c)	 	The Chargor irrevocably waives any objection to the venue of any legal process
on the basis that the process has been brought in an inconvenient forum.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 24

 

 

	 	(d)	 	The Chargor irrevocably waives any immunity in respect of its obligations under
this deed that it may acquire from the jurisdiction of any court or any legal process
for any reason including, but not limited to, the service of notice, attachment before
judgment, attachment in aid of execution or execution.

	17.3	 	Attorneys
	 
	 	 	Each of the attorneys executing this deed states that the attorney has no notice of the
revocation of the power of attorney appointing that attorney.
	 
	17.4	 	Counterparts
	 
	 	 	This document may be executed in any number of counterparts and all counterparts taken
together will constitute one instrument.

			
	 	 	 
	Arnold Bloch Leibler
	 	Deed of Charge | Page 25

 

 

	 	 	 	 	 	 	 	 	 
	EXECUTED as a DEED
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Chargor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED SEALED and DELIVERED by

	 	 	)	 	 	 	 	 
	Robert Barnes as attorney for GFN

	 	 	)	 	 	 	 	 
	AUSTRALASIA FINANCE PTY LTD under

	 	 	)	 	 	 	 	 
	a power of attorney dated 14 September

	 	 	)	 	 	 	 	 
	2007 in the presence of

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
 

	 	 	 	 	 	/s/ Robert Barnes
 

	 	 
	Signature of witness

	 	 	 	 	 	Robert Barnes	 	 
	 
	 	 	 	 	 	 	 	 
	  

Name
of witness (print)

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Chargee
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED SEALED and DELIVERED by

	 	 	)	 	 	 	 	 
	Jorja Mahoney as attorney for BISON

	 	 	)	 	 	 	 	 
	CAPITAL AUSTRALIA L.P. under a power

	 	 	)	 	 	 	 	 
	of attorney dated 12 September 2007 in the

	 	 	)	 	 	 	 	 
	presence of

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	  

Signature
of witness

	 	 	 	 	 	/s/ Jorja Mahoney
  

Jorja Mahoney
	 	 
	 
	 	 	 	 	 	 	 	 
	Daniel Mote
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	  

Name
of witness (print)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]